This time we will discuss the notion of accounting, objectives, types, strategies and ethics in doing business. Happy reading ..
Table of contents :
Definition of Accounting
Accounting as an art
Accounting as a science
Accounting as technology
Accounting Profession
Accounting Learning Objectives
Business types
Business Organizations are divided into 2, namely:
Business strategy
Business Transactions
Value Chain (Value Chain)
Business Stakeholders
Business Ethics
Generally Accepted Accounting Principles (GAAP)
Illustration of a business transaction
Examples of Financial Statements
Financial Analysis and Interpretation
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Definition of Accounting
Accounting is the process of identifying, measuring, and reporting economic information, to enable clear and assertive judgments and decisions for those who use that information.
Accounting as an art
Accounting is the art of recording, classifying and summarizing transactions and events of a financial nature in a certain way
and in the form of money units, and interpreting the results, is said to be art, so what is meant is how to apply it.
Accounting as a science
Accounting is a field of knowledge that explains accounting phenomena objectively, as is, and is value free.
Accounting as technology
The use of scientific knowledge within the territory of a country to provide financial information in order to achieve social and economic goals.
Engineering financial reporting in a society (country) in order to achieve the goals of the State.
Accounting Profession
Accountants who are employed by a business firm or non-profit organization are bound to private accounting.
Accountants and their staff who provide services based on employee benefits in public accounting.
Specific accounting fields, namely financial accounting and management accounting
Accounting Learning Objectives
introduction to accounting & business
Describe the basic features of a business.
Describe the role of accounting in business.
Describes the importance of business ethics and the basic principles in its implementation.
Describe the accounting profession.
Describe the development of accounting principles and how they are practiced.
Define an accounting equation and determine each element of that equation.
Describe how business transactions are expressed in the accounting equation.
Describe financial statements and how they relate to one another.
Using the ratio of debt to equity.
Also Read: Definition of Collection
Business types
Trade business
Manufacturing Business
Service Business
Business Organizations are divided into 2, namely:
Proprietorship owned by one person
Strengths
Easy to organize
Low organizational costs
Disadvantages
Limited financial resources Unlimited
liability
Corporation (corporation) is a separate legal entity under the Act
Pros
Ability massive resources by issuing shares
Shortage
Affected double taxation ( Double Taxation )
Business strategy
Business strategy is a set of integrated plans and actions designed to give the company’s business an advantage over its competitors in order to maximize profits.
At low cost strategies ( low-cost strategy ) , company designing and producing products and services with an acceptable quality at a lower cost than its competitors.
In a differentiation strategy , companies design and produce products and services that have unique characteristics so that customers are willing to pay higher prices.
Business Transactions
A business transaction is an economic event that directly changes the financial condition of a company or directly affects the results of business operations
Value Chain (Value Chain)
A value chain is a series of activities from a business to add value to its customers by processing inputs into goods or services.
value chain (value chain)
Stakeholders ( Business Stakeholders )
Interested parties are individuals or entities that have an interest in the performance of a business.
Business Ethics
The principles underlying ethical behavior:
Avoid ethical violations even if they are minor.
Focus on long-term reputation.
You may face bad personal consequences if you stick to an ethical position.
Generally Accepted Accounting Principles (GAAP)
The concept of a business entity restricts economic data in the accounting system to data directly related to business activities.
The cost concept is the basis for recording the exchange price or acquisition cost in the accounting records.
The concept of objectivity requires that accounting records and reports be based on objective evidence.
The concept of a unit of measure requires that economic data be recorded in rupiah (dollars).