Accounting Principles

Prof. Phạm Đức Cường

Assessment Scheme
• Attendance and Quiz: 10%
• Mid 1: 20%
• Mid 2/ Group assignment: 20%
• Final Exam: 50 % (1h - 40 ques)
WHY DO YOU HAVE TO STUDY
ACCOUNTING?
• Boss - Making Decision – Data – Final Decision – NF. Data
Fun Ex: 2+2 =?
• Math: 4
• Statistics: 399 -> 401
• Accounting: It depends
Accounting = Science + Art
C1: Accounting in Action
1. Identify the activities and users associated with accounting.
1. Identify the activities and users associated
with accounting.
Accounting consists of three basic activities – it
• Identifies,…
• Records, and
• Communicates
=> The economic events of an organization to interested users.
Three Activities
• Identification: Select economic events (transactions)
• Recording: Record, classify, and summarize
• Communication:
+ Prepare accounting reports
+ Analyze and interpret for users
Who uses Accounting Data
Internal Users:
- Finance
- Marketing
- HR
- Management
Who uses Accounting Data
External Users:
- Investors
- Investors
- Creditors (Nhà cung cấp tín dụng): bank,
- Customers
- Governments
- Competitors
- Partners
- Auditors
2. Explain the building blocks of accounting:
Ethics, principles, and assumptions.
a. Ethics are the standards of conduct by which one’s action
GAAP
• Financial Statements
- Balance Sheet
- Income Statement
- Statement of Owner’s Equity
- Statement of Cash Flows
- Note Disclosure
Measurement Principles
• Historical Cost Principle
• Fair Value Principle
Assumptions
• Monetary unit Assumption
• Economic Entity Assumption
- Proprietorship
- Partnership
- Corporation
ÞForms of Business Ownership
Forms of Business Ownership
• Proprietorship (1 thành viên)
- Owned by one person
- Owner is often manager/ operator
- Owner receives any profits, suffers any losses, and is personally liable for all debts
• Partnership (Công ty hợp danh) -> Unlimited
- Owned by two or more people
- Often retail and service-type business
- Generally unlimited personal liability
- Partnership agreement
• Corporation (Công ty cổ phần)
Ques 2:
3. State the accounting equation, and define
its components.
• Basic Accounting Equation
Assets = Liabilities + Owner’s Equity
- Assets:
+ Resources a business owns or controls.
+ Provide feature services or benefits.
+
- Liabilities (Nợ phải trả)
- Owner’s Equity
Transaction
Transaction Analysis
• Illustration: Are the following events recorded in the accounting
records?
4
Summary of transactions
Thuật ngữ: