Introduction of Account

Pusat i-Learn
Bahagian Hal Ehwal Akademik, Tingkat 5, Menara SAAS

Universiti Teknologi MARA, 40450 Shah Alam
General enquiries: 03 5544 2609 | System enquiries : 03 5543 5780 / 5781
Fax: 5543 5779
PROJECT
STORYBOARD TRAINING & MODULE DEVELOPMENT
FACULTY/DEPARTMENT
FACULTY OF ACCOUNTANCY
SUBJECT ID
ACC166
SUBJECT
TITLE
FINANCIAL AND COST ACCOUNTING
CHAPTER NO
CHAPTER
TITLE
OVERVIEW OF ACCOUNTING
NAME
PREPARED BY
REVIEWED BY
APPROVED BY
MOHD FAIRUZ BIN ADNAN
SIGNATURE
DATE
15/04/2013
ACC166 : FINANCIAL AND COST ACCOUNTING
Chapter 01 : Overview Of Accounting
X XX
Fig 2.1 : Picture description here
Popup 1
X XX
LEARNING OUTCOMES
1)
Define
accounting,
bookkeeping,
cost accounting and
management
accounting.
2) Define users
information.
of
accounting
3) Justify forms of business entity

and
different
reporting
requirement.
4) State and explain
accounting
principles or concepts
various
Topic 1.0 : Definition
1) ACCOUNTING
2) BOOK-KEEPING
3) COST ACCOUNTING
4) MANAGEMENT
ACCOUNTING
X XX
Topic 1.1 : Difference Between Accounting And Bookkeeping.
X XX
DIFFERENCES BETWEEN ACCOUNTING AND

BOOK KEEPING
ACCOUNTING
BOOKKEEPING
Classifying, recording,
summarizing
& interpreting transactions in
monetary terms to interested
parties for decision making
purpose.
Mechanical aspects of accounting

Double entry principles
Only involve:
a)Recording,
b)Classifying,
c)Summarizing
4 stages
a)Recording,
b)Classifying,
c)Summarizing &
d)Interpreting
Topic 1.2 : Differences Between Financial Accounting And Cost Accounting
DIFFERENCES BETWEEN FINANCIAL ACCOUNTING AND

COST ACCOUNTING
Area of differences
Financial
Cost Accounting
Accounting
1)Users :
External
Internal
2)Time focus :
Historical
Future
3)Freedom of choices :
Mandatory
Whenever needed
4)Restrictive standard :
FRS
Whenever needed
5)Reporting frequency : Well defined schedule
Anytime
6)Reporting
information :
7)Contents of reporting
:
Detail information
Whole organization
Summary of
information
Small parts of org.
X XX
Topic 1.3 : Users Of Accounting Information
X XX
THE USERS OF ACCOUNTING INFORMATION

INTERNAL USERS
OWNER
They interested in profit earned from their
investment in business and financial stability and
growth of business.
MANAGERS/MANAGEMENT
They needs information to guide them in planning,
organizing and controlling the organization and
analyze operation of business.
EMPLOYEES
Interested in business ability to progress and
expand. They look for steady employment, earning
capacity and other monetary benefit.
Image 1.1
Topic 1.3 : Users Of Accounting Information
THE USERS OF ACCOUNTING INFORMATION

EXTERNAL USERS
CREDITORS
They interested to know the ability of business to repay
amount owing to them.
CURRENT/POTENTIAL INVESTORS
Analyze best investment portfolio and returns in order
to reduce risk of losses from unprofitability company.
GOVERNMENT
For subsidizing and tax purposes
CONSUMERS PRODUCT AND SERVICES
They interested of good accounting controls as means
of reducing cost of production, selling and distribution
and hence reduce of prices of goods.
X XX
Topic 1.4 : Types Of Business Organization
TYPES OF BUSINESS ORGANIZATION
X XX
Topic 1.5: Form Of Business Entity And Different Reporting Requirement
X XX
FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

CHARACTERIST
ICS
SOLE
PROPRIETORSH
IP
PARTNERSHI
P
LIMITED COMPANY
1)Registration:
Business registrar under Business

Registration Act 1957
Commissioner of
Companies (CCM) under
Companies Act 1965
2)Capital:
Ownercontributed
Partnercontributed
based on
agreement
ShareholderscontributedImage
purchase
1.1
of shares
3)Ownership:
1 person
2-20 person /
2-50 person
(professional)
Private (2-50
shareholders)
Public (min 2, max not
exceed authorized
capital)
Topic 1.5 : Form Of Business Entity And Different Reporting Requirement
X XX
FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

4)Management
&
control :
5)Liability :
6)Profit or Loss
distribution :
7)Books &
accounts :
By owner
By partners or
by board
consists of few
partners
Unlimited - creditors have right

against personal properties
By Owner
Partners
according to
profit-sharing
ratio
No legal obligation
By B.O.D appointed by
shareholder
Limited
In the form of dividend
distribution to
shareholders
Proper books of account
must be kept.
Annual account must be
sent to CCM.
Topic 1.6 : Basic Accounting Concept And Principles
ACCOUNTING CONCEPT: ACCOUNTING CONVERSION

BASES AND POLICIES
X XX
X XX
BASIC ACCOUNTING CONCEPTS AND PRINCIPLES
These concepts provide a foundation for

accounting process. No enterprise can prepare
its financial statements without considering
these concepts.
1) Going
Concern
5) Money
measurement
2)
Comparability
6) Materiality
3) Entity
concept
7) Neutrality
4) Periodicity
8) Accrual
9)
9)
Consistency
Consistency
In order to make the accounting language convey

the same meaning to all people and to make it
more meaningful, most of the accountants have
agreed on a number of concepts which are usually
followed for preparing the financial statements.
X XX
Popup 1
X XX
Popup 1
Topic 1.6: Basic Accounting Concept And Principles
X XX
Popup 1
ACC166 : INTRODUCTION TO ACCOUNTING
Topic 1.7 : Exercise
EXERCISE
X XX
A.R. Fatimah, A. Amla and M. Radziah

(2012)
Financial
Accounting for
NonAccounting Students, (3rd Edition, 2012), McGrawHill (Malaysia) Sdn.
Bhd.
SimpleStudies (2013), Accounting Dictionary,
available at:
http://simplestudies.com/accounting-dictionary
Ventureline (2013), Accounting Glossary, available
at:
http://www.ventureline.com/accountingglossary
X XX

Introduction of Account

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction of Account

Uploaded by

Copyright:

Available Formats

Pusat i-Learn

Bahagian Hal Ehwal Akademik, Tingkat 5, Menara SAAS

STORYBOARD TRAINING & MODULE DEVELOPMENT

FINANCIAL AND COST ACCOUNTING

MOHD FAIRUZ BIN ADNAN

Fig 2.1 : Picture description here

3) Justify forms of business entity

DIFFERENCES BETWEEN ACCOUNTING AND

Mechanical aspects of accounting

DIFFERENCES BETWEEN FINANCIAL ACCOUNTING AND

THE USERS OF ACCOUNTING INFORMATION

THE USERS OF ACCOUNTING INFORMATION

TYPES OF BUSINESS ORGANIZATION

FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

Business registrar under Business

FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

Unlimited - creditors have right

ACCOUNTING CONCEPT: ACCOUNTING CONVERSION

BASIC ACCOUNTING CONCEPTS AND PRINCIPLES

These concepts provide a foundation for

In order to make the accounting language convey

BASIC ACCOUNTING CONCEPTS AND PRINCIPLES

BASIC ACCOUNTING CONCEPTS AND PRINCIPLES

BASIC ACCOUNTING CONCEPTS AND PRINCIPLES

A.R. Fatimah, A. Amla and M. Radziah

You might also like