Ayah Eca

Accounting Theory This article will help you understand an important distinction in accounting and bookkeeping- the difference between a credit and debit. When you deposit money in the bank, the cashier will tell you "I'll credit your account." From that experience, most people assume that cash is a credit, and so credits are good. That is further reinforced when reductions in the accounts are referred to as debits. Besides, if you remove the "i" from debit, you get "debt." So, debits are bad. Unfortunately, the conditioning we receive at the bank is causing real confusion in the accounting class. Why? Because in accounting we understand that the bank account is a debit account, and that debts are credit accounts - the opposite of what most people expect. In fact, debits and credits are neither good nor bad. Each transaction, whether it be a good transaction (deposits), or a bad transaction (bills) has both a debit and an equal credit. That

The online course contains: 1.Accounting Information for Business Decisions Publisher's PowerPoint Presentation 2. Accounting Information System Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two Professor: Day Three 3.Reporting and Preparing Financial Statements Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two 4.Reporting and Analyzing Merchandising Operations Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two 5.Reporting and Analyzing Inventories Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two 6.Reporting and Analyzing Cash and Internal Controls Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two 7. Reporting and Analyzing Receivables and Investments Publisher's PowerPoint Presentation Professor: Day One Professor: Day Two 8.Reporting and Analyzing Long-Term Investments Publisher's PowerPoint Presentation Professor: Day One Pro

Basic Accounting Model: Assets = Liabilities + Owners Equity Assets: The following are examples of items classified as assets: · Cash · Notes Receivable · Accounts Receivable · Prepaid Expenses · Land · Buildings · Equipment, Furniture and Fixtures Liabilities: The following are examples of items classified as liabilities: · Notes Payable · Accounts Payable · Accrued Liabilities T-Account Basics: Accounting is based on a double entry system which means that we record the dual effects of a business transaction. Therefore, each transaction affects at least two accounts. Debit: An entry affecting the left side of a T-Account. Credit: An entry affecting the right side of a T-Account. Increases in assets are recorded on the left side (debit) of the account. Decreases in assets are recorded on the right side (credit) of the account. Increases in liabilities and owners equity are recorded as a (credit). Decreases in liabilities and owners equity are recorded as a (debit). Accounting Terminolo

The Stock Exchange acts on two levels - one as a primary market and the other as a secondary market . As a primary market, the Stock Exchange will liaise with investment banks and businesses that are looking to raise capital by selling shares. This process involves the business being 'listed' on the Stock Exchange or 'floating'. In this case, the business will effectively get its capital through the initial sale of its shares. Much of the Stock Exchange's work, however, is as a secondary market. People buying shares may wish to do so for a variety of reasons - to secure dividends or to see the price of the shares rise, for example. If people wish to sell shares then it would be very inconvenient for the business itself to take the shares back and then sell them on to someone else. Such a process would be extremely disruptive and not help planning. The Stock Exchange, therefore, acts as a market that puts those wanting to sell shares in touch with those seeking

The Stock Exchange acts on two levels - one as a primary market and the other as a secondary market . As a primary market, the Stock Exchange will liaise with investment banks and businesses that are looking to raise capital by selling shares. This process involves the business being 'listed' on the Stock Exchange or 'floating'. In this case, the business will effectively get its capital through the initial sale of its shares. Much of the Stock Exchange's work, however, is as a secondary market. People buying shares may wish to do so for a variety of reasons - to secure dividends or to see the price of the shares rise, for example. If people wish to sell shares then it would be very inconvenient for the business itself to take the shares back and then sell them on to someone else. Such a process would be extremely disruptive and not help planning. The Stock Exchange, therefore, acts as a market that puts those wanting to sell shares in touch with those seeking

What does a Board of Directors do? They are appointed to act on behalf of the shareholders - the owners of the business. They run the day-to-day affairs of the business but they must always remember (and this does not always happen) that their decisions must be in the best interests of the shareholders. The shareholders may have invested in the business for two main reasons. Some will be looking to get a regular return on their investment in the form of a dividend. A dividend is the proportion of the profits made by the company each year that is returned to the shareholders. A dividend is normally represented as x pence per share. If the dividend was set by the Board at 6.9 pence per share our 1,000 shareholders in the example above would get 6.9 pence x the amount of shares they owned paid to them. A person owning 50,000 shares would get £3,450 in dividend. Shareholders often have the choice of having the money paid to them in the form of a cheque or directly into a bank account

What does a Board of Directors do? They are appointed to act on behalf of the shareholders - the owners of the business. They run the day-to-day affairs of the business but they must always remember (and this does not always happen) that their decisions must be in the best interests of the shareholders. The shareholders may have invested in the business for two main reasons. Some will be looking to get a regular return on their investment in the form of a dividend. A dividend is the proportion of the profits made by the company each year that is returned to the shareholders. A dividend is normally represented as x pence per share. If the dividend was set by the Board at 6.9 pence per share our 1,000 shareholders in the example above would get 6.9 pence x the amount of shares they owned paid to them. A person owning 50,000 shares would get £3,450 in dividend. Shareholders often have the choice of having the money paid to them in the form of a cheque or directly into a bank account

The London Stock Exchange (LSE) tends to deal with firms that are relatively large in size. A sole trader for example is likely to have little or nothing to do with the LSE so this example is based on a firm that is relatively large in size. The work of the LSE involves dealing with firms who are already very big in some cases and who already have many thousands of shares being traded everyday but who want to raise funds to expand further to other firms that may have outgrown their existing scale and are looking to take that leap to being a public limited company (plc). Imagine you have a business idea, you think it will be a winner but are at a loss of what to do to get set up. The idea might be the easiest part, getting the practicalities of a business organised is much more daunting. You are likely to need premises, equipment, you have to hire staff, buy raw materials and stock and so on. In many cases all these things have to be done many months before you are able to start sel

The Stock Exchange The Stock Exchange is one of the major financial institutions in the UK. It is one of many such institutions around the world that are part of what are called capital markets . Capital markets play a vital part in helping businesses to raise funds for research and development, expansion and for starting up. Image: The London Stock Exchange in Paternoster Square This resource is based around the working of the London Stock Exchange (LSE). The LSE moved to a new building not far from its former home of 200 years in 2004. The new building is in Paternoster Square right opposite St Paul's Cathedral in the heart of the financial district in London known as The City. What does the Stock Exchange do? There are two primary roles for the Stock Exchange - the first is to help new firms sell shares to raise capital (finance to get a business up and running) which is referred to as the Primary Market , and the second is to act as an intermediary to bring together tho

The Stock Exchange Image: The London Stock Exchange in Paternoster Square The Stock Exchange is one of the major financial institutions in the UK. It is one of many such institutions around the world that are part of what are called capital markets . Capital markets play a vital part in helping businesses to raise funds for research and development, expansion and for starting up. This resource is based around the working of the London Stock Exchange (LSE). The LSE moved to a new building not far from its former home of 200 years in 2004. The new building is in Paternoster Square right opposite St Paul's Cathedral in the heart of the financial district in London known as The City. What does the Stock Exchange do? There are two primary roles for the Stock Exchange - the first is to help new firms sell shares to raise capital (finance to get a business up and running) which is referred to as the Primary Market , and the second is to act as an intermediary to bring toget

In this section we look at the use of spreadsheets in Accounting. There is help and advice on using spreadsheets and a variety of downloadable spreadsheets on various topics. Spreadsheet help and advice The following help and support on using spreadsheets and the downloadable spreadsheets below is available: Student introduction - student notes to help with the downloadable spreadsheets Teacher introduction - teacher notes to help with the downloadable spreadsheets Guide to downloadable spreadsheets - a general guide to the downloadable spreadsheets - how they are laid out and how to use them Using spreadsheets - a general introduction to spreadsheets and how to use them in business, economics and accounting Glossary of all the terms that appear in the downloadable spreadsheets in this section Downloadable spreadsheets These spreadsheets are in Microsoft Excel format and require Microsoft Excel 97 or above. The following

One of the key areas of long-term decision-making that firms must tackle is that of investment - the need to commit funds by purchasing land, buildings, machinery and so on, in anticipation of being able to earn an income greater than the funds committed. In order to handle these decisions, firms have to make an assessment of the size of the outflows and inflows of funds, the lifespan of the investment, the degree of risk attached and the cost of obtaining funds. The main stages in the capital budgeting cycle can be summarised as follows: Forecasting investment needs. Identifying project(s) to meet needs. Appraising the alternatives. Selecting the best alternatives. Making the expenditure. Monitoring project(s). Looking at investment appraisal involves us in stage 3 and 4 of this cycle. We can classify capital expenditure projects into four broad categories: Maintenance - replacing old or obsolete assets for example. Profitabi