‫كليـــة األعـمـــال‬

‫مــحاســبــة مــالــيــة‬

‫مبادرة لنكن‬
 CH 1
INTERNATIONAL ACCOUNTING
STANDARD BOARD (IASB)
DETERMINES INTERNATIONAL FINANCIAL REPORTING STANDARDS(IASB)

THE MAIN OFFICE IS LOCATED IN LONDON.

FINANCIAL ACCOUNTING STANDARDS

BOARD (FASB)
DETERMINES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAP)
THE MAIN OFFICE IS LOCATED IN US.

MEASUREMENT PRINCIPLES
1-HISTORICAL COST PRINCIPLE
2-FAIR VALUE PRINCIPLE

SELECTING MEASUREMENT PRINCIPLES

1-RELEVANCE
2-FAITHFUL REPRESENTATIOR

MONETARY UNIT ASSUMPTION:

ACCOUNTING RECORDS ONLY TRANSACTION DATA,THAT CAN BE
EXPRESSED IN MONEY TERMS.
 ECONOMIC ENTITY ASSUMPTION

SEPARATE AND DISTINCT FROM THE ACTIVITIES

OF ITS OWNER AND ALL OTHER ECONOMIC ENTITIES.

TYPICAL ENTITY FORMS ARE

1-PROPRIETORSHIP
2-PARTNERSHIP
3-CORPORATION.

THE ACCOUNTING EQUATION

ASSETS = LIABILITIES + EQUITY

REVENUES:
ARE THE GROSS INCREASES IN EQUITY RESULTING
FROM BUSINESS ACTIVITIES

INCREASES SLIDE
DECREASES
23

EQUITY

INVESTMENTS BY REVENUES DIVIDENDS TO EXPENSES

SHAREHOLDERS SHAREHOLDERS
 CH 2

INCOME STATEMENT:
PRESENTS THE REVENUES AND EXPENSES AND
RESULTING NET INCOME OR NET LOSS FOR A SPECIFIC PERIOD OF TIME.

RETAINED EARNINGS STATEMENT:

SUMMARIZES THE CHANGES IN
RETAINED EARNINGS FOR A SPECIFIC PERIOD OF TIME.

STATEMENT OF FINANCIAL POSITION:

REPORTS THE ASSETS, LIABILITIES, AND EQUITY OF A COMPANY AT A
SPECIFIC DATE.
STATEMENT OF FINANCIAL POSITION:
SUMMARIZES INFORMATION ABOUT THE CASH
INFLOWS (RECEIPTS) AND OUTFLOWS (PAYMENTS) FOR A SPECIFIC PERIOD OF
TIME.

COMPREHENSIVE INCOME STATEMENT

PRESENTS OTHER
COMPREHENSIVE INCOME ITEMS THAT ARE NOT INCLUDED IN THE
DETERMINATION OF NET INCOME IN INCOME STATEMENT

WHEN REVENUES EXCEED EXPENSES

NET INCOME RESULTS.

WHEN EXPENSES EXCEED REVENUES

NET LOSS RESULTS.

NET INCOME WILL RESULT DURING A TIME
PERIOD WHEN:
REVENUES EXCEED EXPENSES.

THE STATEMENT OF FINANCIAL

POSITION
IS LIKE A SNAPSHOT OF THE COMPANY'S FINANCIAL CONDITION AT
A SPECIFIC MOMENT IN TIME

STATEMENT OF CASH FLOWS

THE STATEMENT OF CASH FLOWS PROVIDES INFORMATION ON THE
CASH RECEIPTS AND PAYMENTS FOR A SPECIFIC PERIOD OF TIME.
 CH 3
ACCOUNT:

•IS AN INDIVIDUAL ACCOUNTING RECORD OF INCREASES AND

DECREASES IN A SPECIFIC ASSET, LIABILITY, OR EQUITY ITEM.

•ACCOUNT CONSISTS OF THREE PARTS

•(1) A TITLE, (2) A LEFT OR DEBIT SIDE (DR.), AND (3) RIGHT
OR CREDIT SIDE (CR.).

•BOTH SIDES OF THE BASIC EQUATION (ASSETS= LIABILITIES +

EQUITY) MUST BE EQUAL.

JOURNAL:

•COMPANIES INITIALLY RECORD TRANSACTIONS IN

CHRONOLOGICAL ORDER.

•IS REFERRED TO AS THE BOOK OF ORIGINAL ENTRY.

 CH 4
LEDGER:
THE ENTIRE GROUP OF ACCOUNTS MAINTAINED BY
A COMPANY.

CHART OF ACCOUNTS

ASSETS LIABILITIES
CASH
ACCOUNTS RECEIVABLE NOTES PAYABLE
SUPPLIES ACCOUNTS PAYABLE
PREPAID INSURANCE UNEARNED SERVICE REVENUE
SALARIES AND WAGES PAYABLE
EQUIPMENT INTEREST PAYABLE
ACCUMULATED DEPRECIATION -EQUIPMENT

EXPENSES EQUITY
SHARE CAPITAL -ORDINARY SUPPLIES EXPENSE
RETAINED EARNINGS DEPRECIATION EXPENSE
DIVIDENDS INSURANCE EXPENSE/
INCOME SUMMARY SALARIES AND WAGES
EXPENSE
RENT EXPENSE
REVENUES UTILITIES EXPENSE
SERVICE REVENUE INTEREST EXPENSE
NUMBERING SYSTEM:
USUALLY STARTS WITH THE STATEMENT OF FINANCIAL
POSITION ACCOUNTS AND FOLLOWS WITH THE INCOME STATEMENT
ACCOUNTS.

NUMBER OF ACCOUNTS:
DEPENDS ON THE AMOUNT OF DETAIL MANAGEMENT DESIRES.

A TRIAL BALANCE MAY BALANCE EVEN

WHEN:

1- A TRANSACTION NOT JOURNALIZED.

2- A CORRECT JOURNAL ENTRY NOT POSTED.
3-A JOURNAL ENTRY POSTED TWICE.
4-INCORRECT ACCOUNTS USED IN JOURNALIZING OR POSTING.
5- OFFSETTING ERRORS MADE IN RECORDING THE AMOUNT OF A
TRANSACTION.