Overview of Accounting (ACCOUNTING) Accounting is the work of recording, calculating, controlling, analyzing, and reporting the economic activities of enterprises, institutions, institutions, groups, and other economic organizations with currency as the main unit of measurement to provide financial and management information.

The functions of accounting are mainly to reflect and control the process of economic activities, ensure the legality, authenticity, accuracy and completeness of accounting information, provide necessary financial information for managing the economy, and participate in decision-making to seek the best economic benefits.

The specialized methods of accounting mainly include: setting up accounts and books, filling in and reviewing accounting vouchers, double-entry bookkeeping, cost calculations, property inventory, preparing accounting statements, and inspecting, assessing, analyzing accounting materials, etc. The objects of accounting refer to

The content calculated and supervised by the accounting office is the economic activities that a specific entity can express in currency.

Economic activities expressed in currency are often also called value movements or capital movements.

Capital movement includes the process of capital investment, capital utilization and capital withdrawal by specific entities.

Functions of Accounting The basic functions of accounting include conducting accounting and implementing accounting supervision.

The accounting function refers to accounting using currency as the main unit of measurement to confirm, measure, record and report the economic activities of specific entities, and provide accounting information to all relevant parties.

The accounting supervision function refers to reviewing the legality and rationality of specific entities’ economic activities and related accounting calculations.

Accounting elements (1) Accounting elements and their contents Accounting elements are the basic classification of accounting objects and the embodiment of accounting objects.

Business accounting elements are divided into six categories, namely assets, liabilities, owners' equity, revenue, expenses and profits.

Among them, the three accounting elements of assets, liabilities and owners' equity mainly reflect the financial status of the enterprise; the three accounting elements of income, expenses and profit mainly reflect the operating results of the enterprise.

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

(2) Accounting elements reflecting the financial status of an enterprise 1. Assets Assets refer to resources formed by past transactions or events of an enterprise, owned or controlled by the enterprise, and 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 the enterprise include purchases, production, manufacturing activities or other transactions or events.

Transactions or events that are expected to occur in the future do not form assets.

(2) Assets are resources owned or controlled by an enterprise.

Owned or controlled by an enterprise means that the enterprise enjoys ownership of a certain resource, or that although it does not enjoy ownership of a certain resource, the resource can be controlled by the enterprise.

(3) The assets are expected to bring economic benefits to the enterprise.

The expected economic benefit to the enterprise refers to the potential to directly or indirectly result in the inflow of cash and cash equivalents into the enterprise.

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

Current assets refer to assets that are expected to be realized, sold or consumed in a normal operating cycle, or are held mainly for trading purposes, or are expected to be realized within one year (inclusive) from the balance sheet date, and assets that are expected to be liquidated from the balance sheet date.

Cash or cash equivalents with no restrictions on the ability to exchange other assets or settle liabilities within one year from the date.

Current assets mainly include monetary funds, trading financial assets, notes receivable, accounts receivable, prepayments, interest receivable, dividends receivable, other receivables, inventory, etc.

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

2. Liabilities Liabilities refer to current obligations formed by past transactions or events of an enterprise that are expected to result in the outflow of economic benefits from the enterprise.

The main characteristics of liabilities are: (1) Liabilities are current obligations formed by past transactions or events of the enterprise.

Current obligations refer to obligations that an enterprise has undertaken under current conditions.

Obligations arising from future transactions or events are not current obligations and should not be recognized as liabilities.

(2) The settlement of liabilities is expected to cause economic benefits to flow out of the enterprise.

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

Current liabilities refer to those that are expected to be repaid in a normal operating cycle, or are held mainly for trading purposes, or are due to be repaid within one year (inclusive) from the balance sheet date, or the enterprise does not have the right to repay it autonomously.

Liabilities deferred to more than one year after the balance sheet date.

Current liabilities mainly include short-term loans, notes payable, accounts payable, advances from customers, employee benefits payable, taxes payable, interest payable, dividends payable, other payables, etc.

Non-current liabilities refer to liabilities other than current liabilities, which mainly include long-term loans, bonds payable, etc.

3. Owner's Equity Owner's Equity refers to the remaining equity enjoyed by the owner after deducting liabilities from the assets of the enterprise.

The owner's equity of a company is also called shareholders' equity.