Overview of accounting

Accounting is the work of recording, calculating, controlling, analyzing and reporting the economic activities of enterprises, institutions, organizations and other economic organizations with money as the main unit of measurement, so as to provide financial and management information. The main function of accounting is to reflect and control the process of economic activities, ensure the legality, truthfulness, accuracy and completeness of accounting information, provide necessary financial information for managing the economy, participate in decision-making and seek the best economic benefits.

Specialized accounting methods

It mainly includes: setting up accounts and account books, filling in and auditing accounting vouchers, double-entry bookkeeping, cost calculation, property inspection, preparation of accounting statements, inspection, assessment and analysis of accounting data. (accounting firm) Baoan /T/E/L:l353O54343l

The object of accounting

The object of accounting refers to the content of accounting and supervision, that is, the economic activities that a specific subject can express in money. Economic activities expressed in money are usually called value movement or capital movement. Capital movement includes the process of capital investment, capital application and capital withdrawal of specific subjects.

The function of accounting

The basic functions of accounting include accounting and accounting supervision.

Accounting function refers to continuously, systematically and completely reflecting the economic activities of each unit in quantity through confirmation, measurement, recording and reporting, and providing accounting information for strengthening economic management and improving economic benefits.

The function of accounting supervision refers to checking the legality and rationality of specific economic activities and related accounting.

Accounting element

(A) accounting elements and their contents

Accounting elements are the basic classification and concretization of accounting objects.

Enterprise accounting elements are divided into six categories, namely assets, liabilities, owners' equity, income, expenses and profits. Among them, assets, liabilities and owners' equity mainly reflect the financial situation of the enterprise; Income, expenses and profits are three accounting elements that mainly reflect the operating results of enterprises.

The accounting elements of public institutions are divided into five categories, namely assets, liabilities, net assets, income and expenditure.

(B) accounting elements reflecting the financial situation of enterprises

1. Assets

Assets refer to resources formed by past transactions or events of an enterprise, which are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise. The main characteristics of assets are:

(1) Assets are formed by past transactions or events of the enterprise. Past transactions or events of an enterprise include purchase, production, manufacturing or other transactions or events. It is expected that future transactions or events will not form assets.

(2) Assets are resources owned or controlled by enterprises. The ownership or control of an enterprise means that the enterprise enjoys the ownership of a certain resource, or although it does not enjoy the ownership of a certain resource, it can be controlled by the enterprise.

(3) Assets are expected to bring economic benefits to enterprises. The expected economic benefits to the enterprise refer to the potential that directly or indirectly leads to the inflow of cash and cash equivalents into the enterprise.

Assets are classified by liquidity and can be divided into current assets and non-current assets.

Current assets refer to assets expected to be realized, sold or consumed in a normal business cycle, or held mainly for trading purposes, or expected to be realized within one year (including one year) from the balance sheet date, as well as cash or cash equivalents with unlimited ability to exchange other assets or pay off liabilities within one year from the balance sheet date. Current assets mainly include monetary funds, transactional financial assets, notes receivable, accounts receivable, prepayments, interest receivable, dividends receivable, other receivables and inventories.

Non-current assets refer to assets other than current assets, mainly including long-term equity investment, fixed assets, projects under construction, engineering materials, intangible assets and development expenditures.

be in debt

Liabilities refer to the current obligations formed by past transactions or events of an enterprise, which are expected to lead to the outflow of economic benefits from the enterprise. The main features of liabilities are:

(1) Liabilities are current obligations arising from past transactions or events of an enterprise. Current obligations refer to the obligations that the enterprise has undertaken under the current conditions. Obligations arising from future transactions or events are not current obligations and should not be recognized as liabilities.

(2) The expected settlement of liabilities will lead to the outflow of economic benefits from the enterprise.

Liabilities are classified by liquidity and can be divided into current liabilities and non-current liabilities.

Current liabilities refer to liabilities that are expected to be repaid in a normal business cycle, or are mainly held for trading purposes, or should be repaid within one year (including one year) after the balance sheet date, or the enterprise has no right to postpone repayment for more than one year after the balance sheet date. Current liabilities mainly include short-term loans, notes payable, accounts payable, accounts received in advance, employee salaries payable, taxes payable, interest payable, dividend payable and other payables.

Non-current liabilities refer to liabilities other than current liabilities, mainly including long-term loans and bonds payable.

3. Owner's equity

Owner's equity refers to the residual equity enjoyed by the owner after deducting liabilities from the assets of the enterprise. Owners' equity of a company is also called shareholders' equity.

Owners' equity includes paid-in capital (or share capital), capital reserve, surplus reserve and undistributed profit. Among them, the capital reserve includes the part that the enterprise contributes more than its share in the registered capital or share capital, as well as the gains and losses directly included in the owner's equity. Surplus reserves and undistributed profits are also called retained earnings.

(3) Accounting elements reflecting the operating results of the enterprise

1. Revenue

Income refers to the total inflow of economic benefits formed by enterprises in their daily activities, which will lead to the increase of owners' equity, and has nothing to do with the capital invested by owners.

2. expenses

Expense refers to the total outflow of economic benefits in the daily activities of an enterprise, which will lead to the decrease of owners' rights and interests, and has nothing to do with the distribution of profits to owners.

3. Profit

Profit refers to the operating results of an enterprise in a certain accounting period. Profits include net income MINUS expenses, gains and losses directly included in current profits, etc.

Gains or losses directly included in the current profits and losses refer to gains or losses that will increase or decrease the owner's equity and have nothing to do with the owner's investment in capital or distribution of profits to the owner.

As far as accounting principles or basic work norms are concerned, all types of units are basically the same, but the business activities of administrative units and institutions adopt cash basis instead of accrual basis, which leads to differences in the setting and definition of accounting elements between administrative units and enterprises. Administrative institutions have set up five accounting elements for the balance sheet and income statement (similar to the profit statement of enterprises), including assets, liabilities, net assets, income and expenditure. In the definition of accounting elements, taking the definition of accounting elements of public institutions as an example, assets refer to economic resources that can be measured in money, including all kinds of property, creditor's rights and other rights; Liabilities refer to debts undertaken by institutions that can be measured in money and need to be repaid by assets or services, including loans, accounts payable, accounts payable, etc. Net assets refer to the difference between assets and liabilities of institutions, including public funds, fixed funds, special funds, business balances and operating balances; Income refers to the non-repayable funds legally obtained by institutions for business activities, including subsidy income, business income, operating income and other income; Expenditure refers to all kinds of capital expenditures and losses incurred by institutions for business activities and other activities, as well as expenditures for capital construction projects, including appropriations, business expenditures and operating expenditures.

At the same time, there are some differences between administrative institutions and enterprises in specific accounting recognition and measurement principles. For example, the fixed assets of administrative institutions are not depreciated.

Scope of accounting work

First, in accordance with the provisions of the national financial system, carefully prepare and strictly implement the financial plan and budget, abide by the income system, expenditure scope and standards, distinguish the channels of funds, rationally use funds, and ensure the completion of financial tasks.

Two, in accordance with the provisions of the national accounting system, accounting, reimbursement, complete procedures, true content, accurate figures, clear accounts, timely settlement.

Three, in accordance with the provisions of the banking system, rational use of loans, strengthen cash management, do a good job in settlement.

Four, according to the principle of economic accounting, regularly check and analyze the implementation of financial plans and budgets, tap the potential of increasing income and reducing expenditure, assess the effect of the use of funds, expose problems in economic management, and make suggestions to leaders in a timely manner.

Five, in accordance with the provisions of the national accounting system, properly keep accounting vouchers, accounting books, statements and other files.

Six, abide by the propaganda, safeguard the national financial system and fiscal discipline, and fight against all violations of law and discipline.

Accounting information system theory: accounting is an economic information system that mainly provides accounting information. This view holds that the accounting objective is to provide accounting information needed for economic decision-making, the accounting function is to reflect (including analysis and prediction) and control (including planning, supervision and providing useful information for decision-making), and the accounting object is information about value movement. In other words, accounting (including financial accounting and management accounting) is a complete system that uses a series of procedures and methods to process and control the information of value movement. "Accounting Information System Theory" recognizes the sociality and technicality of accounting, but emphasizes technicality more. It holds that accounting is only in the position of staff or consultant in enterprise and export management, and does not directly perform management functions. The representative figures of "accounting information system theory" in China are Ge Jiashu and Professor Yu. Its main point of view is consistent with the understanding of accounting essence in the United States and other western countries.

Accounting standards

Accounting standards are the rules and guidelines for accountants to engage in accounting work. According to the business nature of their employers, accounting standards can be divided into profit-making organizations and non-profit organizations. According to its function, it can be divided into basic standards and specific standards.

Basic standard of 1

The basic principle is to summarize the basic premise and requirements of accounting work organization, and to explain the guiding ideology, basic basis, main rules and general procedures of accounting work. The accounting procedures and methods of enterprise accounting must meet the requirements of basic standards. Basic accounting standards are also the main basis and guiding principles for formulating specific standards. Specific standards involve the specific business of accounting, and must reflect the requirements of basic standards to ensure the coordination, rigor and scientificity between specific standards.

The Accounting Standards for Business Enterprises issued by China 1992 belongs to the basic standards of for-profit organizations. It mainly includes the following contents:

(1) general rules

The general part explains the nature, formulation basis, scope of application, preconditions of accounting work and requirements of basic accounting work.

The general provisions stipulate that the basic premise of accounting is the premise of accounting work and an important basis for enterprises to design and choose accounting methods. This book 1.3 introduces these basic premises in detail.

(2) General principles of accounting

The Accounting Standards for Business Enterprises selects 12 from the basic requirements of accounting and names it as "General Rules", which requires that the accounting work of enterprises must be observed. They have been listed in 1.4 in this book.

These principles are the basic requirements for accounting, and also the important content of accounting standardization construction in China. "General principle" is not only the basic requirement to measure the quality of accounting information, but also the reference standard for the fairness of CPA's audit accounting report.

(3) Elements

The relevant standards of accounting elements stipulate the basic requirements that enterprises should follow when confirming, measuring, recording and reporting various accounting elements in accounting.

It should be noted that the definition of relevant elements in the Accounting Standards for Business Enterprises issued by 1992 has been revised in the Accounting Office Regulations of 2000. 1.2 introduces the modified definition.

(4) Accounting statement system

Accounting standards for business enterprises require that accounting statements not only meet the needs of the competent authorities of enterprises, financial and tax authorities and other government departments, but also meet the needs of investors, creditors and social investors in all aspects of enterprises, and can provide them with various accounting information reflecting their operating conditions, property rights relations, solvency and interest distribution. In response to the above requirements, accounting standards have made unified provisions on enterprise accounting statements nationwide, stipulating that enterprises must prepare and submit three main accounting statements. After 1998 stipulates that the statement of changes in financial position should be replaced by the cash flow statement, these three statements are the balance sheet, the income statement and the cash flow statement. This kind of accounting statement system not only greatly changes the shortcomings of the traditional accounting statement system, such as too many types and difficult distinction between primary and secondary statements, but also highlights the status of the main statement, which is consistent with the internationally accepted accounting statement system and is conducive to providing accounting information in line with international practices.

2 specific accounting standards

Specific accounting standards are specific provisions for various economic businesses according to the content requirements of basic standards. It is characterized by strong operability, and can directly organize the accounting of this business according to it. For example; Fixed assets accounting, investment accounting, loan accounting and other standards. According to the practical experience of various countries in the world and the actual situation in China, China's specific standards can be considered as including general business standards (mainly the concretization of basic standards), special business standards (such as price change accounting standards and bankruptcy liquidation accounting standards), special industry accounting standards and special business accounting standards.

At present, with the support of the World Bank, China is actively establishing specific accounting standards in China. So far, specific standards have been promulgated on related party transactions, matters after the balance sheet date, debt restructuring, income, investment, construction contracts, accounting policy changes and accounting error correction, non-monetary transactions, and contingencies. The Ministry of Finance plans to formulate 30 specific accounting standards. In view of the fact that China's accounting laws and regulations are in a period of great change, in order to implement the principle of first establishing and then breaking, to ensure the orderly alternation of old and new methods, to make the actual work always have laws to follow, and to avoid a "legal vacuum", the Ministry of Finance promulgated basic accounting standards and actively formulated specific accounting standards. As a transitional measure, it formulated and published the accounting system and financial system of major industries in 1992. This is a transitional measure for accounting systems in different industries to gradually move closer to specific accounting standards. After eight years of practice, on the basis of summing up experience, the Ministry of Finance merged the accounting systems of different industries into a unified enterprise accounting system on June 1 2006 (unless otherwise specified, the "enterprise accounting system" referred to below in this book refers to the latest enterprise accounting system, not the enterprise accounting system of various industries on June 1992). However, this accounting system is still an excessive measure before the specific accounting standards are fully formulated. When China's specific standards are perfected, this accounting system will be replaced by specific standards.

Enterprise accounting equation

(1) Assets = liabilities+owners' equity

The assets of an enterprise come from the capital invested by the owner and the funds borrowed by the creditor, as well as the accumulation of benefits generated by the enterprise in its production and operation. Assets come from rights and interests (including owners' rights and interests and creditors' rights and interests), and the part belonging to owners forms owners' rights and interests; The part belonging to the creditor forms the creditor's rights (that is, the liabilities of the enterprise). Assets and equity must be equal.

At a certain point, there is a balanced relationship among assets, liabilities and owners' equity, that is, assets = liabilities+owners' equity. This is the theoretical basis of double-entry bookkeeping, and it is also the basis for preparing balance sheets.

(2) Income-expense = profit

The net income of an enterprise in a certain period, after deducting all expenses incurred, is equal to the adjusted profit. Regardless of adjustment factors (such as gains and losses directly included in the current profits, etc.). ), income MINUS expenses equals profit, that is, income-expenses = profit.

The above-mentioned relationship between income, expenses and profits is the basis for compiling the income statement.

Accounting subjects and accounts

I. Accounting subjects

(A) the classification of accounting subjects

Accounting subjects refer to items that classify the specific contents of accounting elements.

Accounting subjects are divided into general classification subjects and detailed classification subjects according to the degree of detail and control relationship of the information provided.

Accounting subjects are divided into assets, liabilities, owners' equity, costs, profits and losses and other subjects according to the different economic contents reflected.

(B) the principles of setting up accounting subjects

1. The principle of legality means that the setting of accounting subjects should conform to the provisions of the unified national accounting system.

2. The principle of relevance means that the setting of accounting subjects should provide accounting information services required by all parties concerned.

3. practical principles means that the setting of accounting subjects should conform to the characteristics of the unit itself and meet the actual needs of the unit.

Second, the account

(1) account classification

Accounts are set according to accounting subjects and have a certain format and structure, which are used to classify the carriers that reflect the changes of accounting elements and their results. Establishing accounts is one of the important methods of accounting.

Corresponding to the classification of accounting subjects, accounts are divided into general ledger accounts (referred to as general ledger accounts or general ledger accounts) and detailed ledger accounts (referred to as detailed ledger accounts) according to the degree of detail and control relationship provided; According to the different economic contents it reflects, it can be divided into asset account, liability account, owner's equity account, cost account, profit and loss account and so on.

(2) The basic structure and contents of the account

Accounts are divided into two directions: the left (the bookkeeping symbol is "debit") and the right (the bookkeeping symbol is "credit"). One party's registration increases and the other party's registration decreases. The increase of debit registration and the decrease of credit registration in asset, cost and expense accounts; Liabilities, owners' equity, debit registration decreased, and credit registration increased income subjects.

The current increase registered in the account is called the current increase; Register the decrease in the current period, which is called the decrease in the current period; The balance after increase or decrease is called balance, which is divided into opening balance and ending balance according to different time. The basic relationship is as follows:

Closing balance = opening balance+current increase-current decrease.

For asset, cost and expense accounts:

Closing balance = opening balance+current debit amount-current futures amount

For liabilities, owners' equity and income accounts:

Closing balance = opening balance+amount incurred by the futures party-amount incurred by the borrower in the current period.

The contents of the account specifically include the name of the account, the date of recording the economic business, the number of the accounting voucher, the summary of the economic business, the increase or decrease amount, the balance, etc.

(3) records of trial balance

According to the reciprocal relationship between assets and rights, and the bookkeeping rules of the debit and credit bookkeeping method, there are two trial balance methods to check whether all account records are correct, namely, the trial balance method of amount and the trial balance method of balance.

1. Trial balance method of amount. It is a method to check whether the current amount record is correct according to the identity relationship between the total debit amount and the total credit amount of all accounts in this period. The formula is:

Total debit amount of all accounts in this period = total credit amount of all accounts in this period.

2. Balance trial balance method. It is a method to check whether the account records in this period are correct according to the identity relationship between the total debit balance and the total credit balance of all accounts in this period. According to the different balance time, it can be divided into two categories: opening balance and ending balance. Opening balance means that the total opening debit balance of all accounts is equal to the total credit balance, and closing balance means that the total closing debit balance of all accounts is equal to the total credit balance. The formula is:

Total debit opening balance of all accounts = total goods opening balance of all accounts.

Total debit ending balance of all accounts = total goods ending balance of all accounts.

In practical work, the trial balance is carried out by compiling a trial balance.

(4) General ledger accounts and subsidiary ledger accounts are recorded in parallel.

1. Relationship between general ledger accounts and subsidiary ledger accounts

General ledger has the function of controlling subsidiary ledger; The subsidiary ledger accounts can supplement the general ledger accounts. The total amount of the general ledger account and its subsidiary ledger account shall be equal.

2. Record the general ledger account and subsidiary ledger account in parallel.

Parallel recording refers to the method of recording every economic and business item on the basis of accounting vouchers, on the one hand, in the relevant general ledger account, on the other hand, in the subsidiary ledger account of the relevant general ledger account.

Parallel bookkeeping requires that the general ledger and the subsidiary ledger are based on the same accounting voucher, the same borrowing direction and the same accounting period, and the posting amount of the general ledger is equal to the total posting amount of the subsidiary ledger.

(five) the relationship and difference between accounts and accounting subjects.

Accounting subjects and accounts are project classifications of specific contents of accounting objects, with the same caliber and nature. The account is the name of the account and the basis for setting up the account, and the account is the specific application of the account. The difference between the two is that the account is just the name of the account and has no structure; The account has a specific format and structure.

Financial accounting and management accounting;

Financial accounting is usually different from management accounting. The main difference between the two is that the decision makers of services are different. Financial accounting serves external decision makers such as shareholders, suppliers, banks and government agencies, and management accounting serves managers at all levels such as senior leaders, department managers, college presidents and hospital presidents within the organization.