Definition of Business Accounting

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

Share this:

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).

Leave a Comment