As we all know, money comes from exchange.
In the early days of human society, with the continuous improvement of productivity, surplus products appeared slowly. At this time, the tribes began to exchange products slowly and gradually produced money.
Early universal equivalents were our common cattle and sheep. Slowly, people find it inconvenient, and they can't go out with a bunch of cattle and sheep every time. In the Xia Dynasty, people began to exchange shells slowly, because the shells themselves did not have the same value as cattle and sheep, and their value was given to him by people, so there was monetary pressure.
However, this kind of shell is easy to deteriorate and not easy to store. It will become brittle after a long time. It may break with a little force. Slowly, the country began to cast coins through the coercive power of the government, which we saw in history books, including Kong Fangxiong. At the beginning of the Republic of China, it was gradually replaced by paper money.
Because these currencies are backed by the state's coercive power, they have become a phoenix, their prices have soared, they have become credit currencies and trading tools.
Then a series of currency derivatives such as bank drafts, checks, promissory notes, credit cards and letters of credit are derived.
Although the emergence of currency derivatives has greatly improved the transaction efficiency and promoted the social division of labor and economic development, in essence, the state only stipulates the face value of money, but the real value of money is the labor value of people. Once the difference between the two is too large, it will cause inflation or deflation, which will bring great trouble to the economic activities of enterprises and society.
Second, deduct money.
In accounting, monetary funds include three parts: cash in hand (that is, money in pocket), bank deposits (money in bank) and other monetary funds (some money with specific purposes, including bank drafts, promissory notes, letters of credit, credit cards, deposits in different places, etc. ).
In fact, in the process of enterprise management, monetary funds are constantly changing forms with economic activities. Let's take a look at the "ins and outs" of the money fund.
(a) subjects related to the whereabouts of funds
(1) If monetary funds are used to buy materials, commodities or production tools and packaging, monetary funds will become raw materials, inventory commodities, turnover materials and so on.
(2) If monetary funds are used to buy stocks, bonds, funds and other financial assets for short-term profit, they are transactional financial assets.
(3) If the product is sold, but the payment is not received, it is an account receivable.
(4) An unexpired commercial bill is a bill receivable.
(5) If the enterprise pays the money to the supplier first and has not received the goods, it is an advance payment.
The above-mentioned assets that can usually be converted into cash within one year or one business cycle are called current assets.
(6) if you use money to buy equipment, houses, etc. Money becomes a fixed asset.
(7) If stocks are purchased in currency in order to control and influence the investee, it becomes a long-term equity investment.
(8) If financial assets such as bonds are purchased in currency and are prepared to be held until maturity, and the principal and interest are recovered, it is a held-to-maturity investment.
(9) If financial assets such as stocks are purchased in money, the purpose of purchase is mainly for earnings management, that is, financial assets that can be sold.
(10) If the money is used to buy houses that are not needed for production and operation, it is mainly used for renting or selling after appreciation, which is investment real estate.
(1 1) If the money is used to build a factory building or install or improve equipment, it is a project in progress.
(12) If money is used to buy trademarks and patents, it is intangible assets.
Wherever funds go, some will turn into assets, while others will turn into expenses (profit outflow from daily business activities) and losses (profit outflow from non-daily business activities);
(13) In order to manage the outflow of activities, it is an administrative expense.
(14) The currency flowing out from the sales activities of the business department is sales expenses.
(15) The price that must be paid for selling goods or providing services is the operating cost.
(16) The taxes paid for business activities are business taxes and surcharges.
(17) The currency flowing out for paying enterprise income tax is income tax expense.
(18) The outflow of funds caused by fines or other accidents is non-operating expenses.
(19) Enterprise assets are impaired, such as bad debts, inventory depreciation, etc. What leads to the outflow of money is the impairment loss of assets.
(20) Currency outflow caused by special business activities of the enterprise (such as the decline of fair value of available-for-sale financial assets, etc.). ) is other comprehensive income.
(two) subjects related to the source of funds
1, from the owner.
(1) If it is directly invested by shareholders, this is capital, which is called paid-in capital.
(2) If it is a shareholder's follow-up investment, the money beyond the share is the capital reserve.
(3) If it is income from selling goods and providing services, it is income from main business and other businesses. After deducting expenses and losses, profits are formed, and after profit distribution, retained earnings are formed.
(4) If the income of an enterprise's indirect investment in assets increases, this capital inflow is called investment income, which forms profits after offsetting expenses and losses, and forms retained income after profit distribution.
(5) If it is an unexpected inflow of funds, it is called non-operating income. For example, you don't have to pay back the money you owe.
2. From the perspective of creditors.
(1) Borrowing from banks and other financial institutions with a loan term of less than one year is a short-term loan.
(2) Taxes and fees owed to the state are taxes and fees payable.
(3) The money owed to suppliers is accounts payable.
(4) Wages owed to employees are wages payable to employees.
(5) Other short-term debts are other payables.
(6) Accounts received in advance from customers, if the goods have not been delivered to customers.
(7) Borrowing from banks and other financial institutions for a period of more than one year is a long-term loan.
(8) For the purchase of equipment or financial lease, the unpaid amount with the payment term exceeding one year as stipulated in the contract is long-term payable.
Third, the circulation of monetary funds.
In fact, all accounting subjects are directly or indirectly derived from monetary funds, so the accounting object of accounting is also called capital movement.
Specifically, it is: the investment of assets (shareholders' investment, creditors' investment), the circulation of funds (supply-outflow, production form transformation, sales-inflow) and the withdrawal of funds (dividends-shareholders, debt repayment-creditors, tax payment-country).
No matter what the specific business type of an enterprise is, the law of capital movement is similar.
Take industrial enterprises as an example:
In the process of supply, enterprises use monetary funds to buy all kinds of materials needed for production. Enterprises should not only settle accounts with suppliers, but also use bank deposits or cash to pay for the transportation and loading and unloading expenses of various materials and materials, and also obtain suitable materials and reserve materials needed for production. Through the supply process, liquidity changes from the form of monetary funds to the form of reserve funds.
The production process is the central link in the business activities of industrial enterprises. This process is a product manufacturing process from material production to product manufacturing. Through this process, the enterprise's funds are transformed from the original reserve funds into production funds in the form of products. At the same time, in the production process, some monetary funds are converted into work-in-process products and become production funds by paying employees' wages and other production expenses. In addition, in the production process, the fixed assets such as factories, machinery and equipment will be worn when they are used, and the value of this wear, that is, depreciation, is transferred to the value of products, which also constitutes part of production funds. At the end of the production process, when the products are made into finished products, the production funds are converted into finished products funds.
In the process of sales, enterprises sell products and realize value. In this process, enterprises should sell their own products and obtain sales income. In the process of sales, there will be sales expenses generated by packaging, transportation and promotion. The sales income recovered in the form of monetary funds can compensate the consumption in the process of product production and sales, as well as the management expenses and financial expenses incurred in organizing and managing the production and business activities of enterprises. Through the sales process, the funds of finished products are converted into monetary funds.
To sum up, the capital of an enterprise goes through three processes: supply, production and sales, from monetary capital form to reserve capital, production capital and finished product capital form in turn, and finally returns to monetary capital form. This process is called capital circulation. The continuous capital circulation caused by the continuous reproduction process is called capital turnover. Industrial enterprise funds withdraw from the enterprise when paying taxes to the state, distributing dividends and profits, and repaying loans.
Therefore, the content reflected and controlled by industrial accounting is the aspect that can be expressed in money in the process of supply, production and sales. Including:
① Changes in assets, liabilities and owners' equity caused by economic activities such as the acquisition, use and withdrawal of operating funds.
(2) Various production expenses and product costs formed in the process of supply, production and sales.
(3) the realization, distribution and settlement of enterprise sales revenue and enterprise net income.