Double-Entry

Debits:
Credít:

Old accounting
Lísts of assets
Source of money to buy assets

The balance sheets

=> it simply lists out stuff and how we pay for that stuff

Assets are economic resources owned or controlled by a company that provide future
benefits.
 Cash
 Inventory, hold to resell in the future
 Buildings
 Equipment

2 Ways to finance assets

LIABILITIES are obligations that are satisfied through payment or services to someone
else
We borrow money to buy assets then have to pay that money back. Someone pays us
money and we have to provide them a service.

Nợ phải trả phát sinh trong quá trình hoạt động sản xuất, kinh doanh mà doanh nghiệp
phải trả, thanh toán cho các chủ nợ.
Ví dụ: nợ mua hàng hoá phải trả cho ng bán, nợ phải trả cho ngân hàng hay trả công
nhân viên

Short-term equities (Nợ ngắn hạn)

 Các khoản nợ có thời hạn trả trong vòng 1 năm.
 Thường phát sinh trong quá trình hoạt động kinh doanh hàng ngày của doanh
nghiệp
 Nợ phải trả người bán, nợ phải trả công nhân viên, thuế và các khoản phải nộp
nhà nước, ứng trước của khách hàng, chi phí phải trả,…

Long-term equities (Nợ dài hạn)

 Các khoản nợ có thời hạn trả trên một năm.
 Vay dài hạn ngân hàng, trái phiếu phát hành và nợ thuế tài sản tài chính.

OWNERS’ EQUITY
Investment in the company as owners invest in the company with no obligation for the
company to repay that investments
Profits generated left in the company owner leave the profits generated by the company
 Those retain profits can then be used to purchase additional assets

BALANCE SHEET
Assets = Liabilities + owners’ equity (Accounting equation)

At the end of the day, the accounting equation has to balance.

Like we receive cash, assets go up, but why?

Where did that cash come from
Cash coming in this situation is different from cash coming from profitable operations
=> Require carefully determination why assets change

Assets: inventory, supplies, equipment, land and cash

THE STATEMENT OF CASH FLOWS

 Analysis of inflows and outflowa
Detailed analysis of cash going into and out of the cash account over a specified time period.
Those inflows and outflows are categorized related to operating activities, things that happen
everyday in a business, investing activities, transactions that affect the productive capacity of a
business like buying a building, and financing activities, borrowing and paying back money,
selling and buying your own stock.

Now for a period of time, like a quarter or a year, sort the inflows and outflows of cash by activity
INCOME STATEMENT
Detailed look at owners’ equity