accounting and financial statements revision. acc--- 1.how many of you will work as acc one day?...
TRANSCRIPT
ACC---
1. How many of you will work as acc one day?
2. How many of you are acc majors?
3. Which acc magazines do acc majors need to read to stay informed?
4. How much power do acc have in formulating acc policies?
5. Have you ever opened a bank acc?
ACC---
6. Is acc an exact science?
7. Who writes the details of financial transactions in acc: bookeeppers or acc?
8. Who usually approves the acc at the end of the acc year?
9. How much acc knowledge do managers need to understand company acc?
10.Who completes the draft acc for the acc year?
WHAT DO BOOKKEEPERS DO?
a) E_____r data and r_____d transactions in journals (ledgers) of companies accounts
b) T____n data into meaningful financial information, prepare financial s________s
c) Are in c______e of internal and ex_____al oversight of accounts
WHAT DO BOOKKEEPERS DO?
a) Enter data and record transactions in journals (ledgers) of companies accounts
b) Turn data into meaningful financial information, prepare financial statements
c) Are in charge of internal and external oversight of accounts
WHAT DO ACCOUNTANTS DO?
a) enter data and record transactions in j_____s (l______s) of companies accounts
b) turn data into m__________l financial information, prepare financial statements
c) are in charge of internal and external o_______t of accounts
WHAT DO ACCOUNTANTS DO?
a) enter data and record transactions in journals (ledgers) of companies accounts
b) turn data into meaningful financial information, prepare financial statements
c) are in charge of internal and external oversight of accounts
WHAT DO AUDITORS DO?
a) E____r d____a and r_____d tr_____s in j_______s (l______s) of com____es ac_______s
b) are in c______e of i_____l and e______l o______t of acc____s
c) turn d_____a into m_________l fin____ial i_______n, p______e fi_______l st_________s
WHAT DO AUDITORS DO?
a) enter data and record transactions in journals (ledgers) of companies accounts
b) are in charge of internal and external oversight of accounts
c) turn data into meaningful financial information, prepare financial statements
WHICH ARE THE THREE FINANCIAL STATEMENTS?
a) The p_____it and l_____s account, the i____me statement and the c____h flow statement
b) The p_____it and l_____s account, the balance s_____t and the c_______h flow statement
c) The i______me statement, the b_____ce s_____t and the annual report
WHICH ARE THE THREE FINANCIAL STATEMENTS?
a) The profit and loss account, the income statement and the cash flow statement
b) The profit and loss account, the balance sheet and the cash flow statement
c) The income statement, the balance shaeet and the liquidity statement
WHAT DOES THE PROFIT AND LOSS ACCOUNT SHOW?
a) It shows revenue/turnover - costs/overheads
b) It shows assets, liabilities and owners’ equity
c) It shows sources of funds and applications of funds
WHAT DOES THE BALANCE SHEET SHOW?
a)It shows assets (what the company owes), liabilities (what the company owns) and shareholders' equity
b)It shows a company’s ownership structure through equity
c)It shows assets (what the company owns), liabilities (what the company owes) and shareholders' equity
WHAT DOES THE CASH FLOW STATEMENT SHOW?
a) a company’s profitability
b) cash inputs and cash outputs
c) cash inflows and cash outflows
P&L
Revenues T________ LINE- C______ of sales= GROSS PROFIT - Operating expenses= EBITDA– Depreciation and a___________
= EBIT
- Interest - Taxes______ = NET PROFIT B________ LINE
BALANCE SHEET
ASSETS (to own)
C__________ ASSETS
FIXED ASSETS
OTHER ASSETS: GOODWILL
LIABILITIES (to owe)
CURRENT LIABILITIES
L________ LIABILITIES
OWNER’S EQUITY
SHARE CAPITAL
R_________ PROFIT
RESERVES
ASSETS
FIXED
PROPERTY
P__________
EQUIPMENT
LAND
CURRENT
CASH
DEBTORS (ACCOUNTS R__________)
INVENTORY
INTANGIBLE
BRAND NAMESC__________PATENTSTRADE MARKS
LIABILITIES
CURRENT
ACCOUNTS PAYABLEA_________ EXPENSES
LONG TERM
DEFERRED INCOME TAX
LONG-TERM DEBT (M_________, BONDS)
CASH FLOW STATEMENT
money coming into the business (inflows)
money going out of the business (o_______)
OPERATING/ I___________/FINANCING ACTIVITIES
COPY THE OPPOSITES
Current
Revenue
Credit
Profit
Assets
Net
Accounts receivable
Liabilities
Debit
Gross
Accounts payable
Expenditure
Long-term
Loss
DEFINITIONS
depreciationinterestliabilitiesloansharesbalance sheet
assetsinstallmentsacquisitioncapitalauditbudget
1. buildings, machinery, money in the bank and
money owed by customers
2. the loss of value of tangible assets
3. money which is borrowed
4. the extra money paid when borrowing money
5. all financial resources available for use
6. the obligation which legally binds an entity to
settle a debt
7. the parts of a listed company you can buy
8. paying small amounts over a period of time
9. the purchase of another company
10.an official examination of the accounts
11.a financial plan for the year
12.a statement of the company’s financial position