Chapter 1
Nature, Accounting
objects and Accounting
principles
1-1
I. Definition
- Accounting involves collecting, processing,
verifying, analyzing, and providing economic
and financial information in the form of value,
physical units, and labor time.
1-2
II. Accounting objects
Assets Liabilities
tài sản NPT
Accounting objects
Equity Revenue Gain Expenses
VCSH doanh thu Lợi nhuận chi phí
qui trình NLKT: thu thập - xử lí - phân tích - xử lí thông tin
1-3
II. Accounting objects
1. ASSETS
A. DEFINITION
- Resources controlled by the enterprise that can bring future
economic benefits.
B. EXAMPLES
Cash on hand, cash in banks, trade receivables, Tools and supplies,
Tangible fixed assets (building &structures, Machinery &
equipment, transportation &transmission vehicles) , Intangible fixed
1-4
II. Accounting objects
Example 1: Distinguishing between Goods and Finished Products.
- A Coca-Cola bottle at Coca-Cola Company: ...
- A Coca-Cola bottle at University of Transportation canteen: ...
Example 2: Distinguishing between Supplies and Tangible Asset =
Property, Plant & Equipment
Example 3: Understanding “Account Receivable”
1-5
II. ACCOUNTING OBJECTS
2. LIABILITIES
A. DEFINTION:
Is a present obligation of an enterprise arising from past events that
the enterprise must pay from its own resources. .
B. EXAMPLES
Trade Payables, Payable to employees, borrowings and finance
lease liabilities,
1-6
II. ACCOUNTING OBJECTS
3. EQUITY
A. DEFINITION
- Is the capital value of the enterprise, calculated by the difference
between assets minus (-) liabilities
B. EXAMPLES
Owner’s equity, Investment & development funds, Undistributed
profit after tax.
1-7
II. ACCOUNTING OBJECTS
ASSETS= LIABILITIES + EQUITY
1-8
EXERCISE 1.1
Distinguish between assets, liabilities, equity
[Link] deposits = Cash at bank TS
[Link] conditioner TS
[Link] purchased in transit TS
[Link] to suppliers TS
[Link] from customers NPT
[Link] TS
[Link] TS
[Link] TS
[Link] payable NPT
10. Borrowings and finace lease liabilitis NPT
11. Mortgage, collaterals and deposits THẾ CHẤP - TS
12. Deposits received NPT
1-9
Exercise 1.2
On January 1, Company HT has the following information: (Uni
million VND)
•Cash on hand: 500 TS Raw materials: 270 TS
•Wages payable: 12 NPT Work-in-progress: 25 TS
•Tangible fixed assets: 1,100 TS NPT=300 Taxes and payable amou
•Accounts receivable: 60 TS Supplies: 170 TS
•Finished goods: 55 TS NPT= 40 Advance from customer
•Payable to suppliers: 350 NPT TS
VCSH Owner’s Equity: 1,550
•Depreciation of tangible fixed assets: 150 Bank deposit: 150 TS
•Retained earnings: X TS Prepaid to suppliers: 90
Requirements:
[Link] between assets and liabilities or equity
[Link] X.
500 - 12+1100+60+55-350-150+270+25-300+170-40-1550+150+90 =18
1-11
Exercise 1.3
On January 1, Company HT has the following information: (Uni
million VND)
•Cash on hand: 100 TS Trading Securities: 50 TS
•Trade Receivables: 250 TS Raw materials: 150 TS
•Wages payable: 100 NPT Other Receivables 50 TS
•Tools & Supplies: : 10. TS Taxes and payable amounts : 50 NPT
•Finished goods : 40 TS Investment &Development funds: 40
VCSH
•Advance : 15 TS Bonus and Welfare fund: 30 NPT
Requirements:
[Link] between assets and liabilities or equity
1-13
Exercise 1.4
On January 1, Company HT has the following information: (Uni
million VND) 60000 - 20000 +2000+6000+2000+3000+10000-5000+7000-55000-3000-1000 = 6000
Tangible fixed assets 60.000 8. Trade Payables NPT 5.000
TS
Depreciation of fixed 20.000 9. Trade receivables TS 7.000
assets TS ( ÂM )
Raw Materials TS 2.000 10. Owner’s equity VCSH 55.000
Finished products TS 6.000 11. Borrowing and finance 3.000
lease liabilities NPT
Tools &supplies TS 2.000 12. Other Payables NPT 1.000
Cash on hand. TS 3.000 13. Undistributed profit after X?
tax VCSH
TS 1-14
II. ACCOUNTING OBJECTS
4. REVENUE
A. DEFINITION
Is the total value of economic benefits that an enterprise receives
during the accounting period from its normal production and
business activities and other activities, increasing its equity,
excluding capital contributions from shareholders or owners.
B. EXAMPLES
- Sales revenue
1-16
II. Accounting objects
5. EXPENSES
EXPENSE INCURRED EXPENSE INCURRED
WITHIN MANUFACTURING OUTSIDE
FACTORY MANUFACTURING
FACTORY
Direct Materials Cost - Selling cost
Direct Labor cost - Administration cost
Manufacturing Overhead Cost
1-17
II. Accounting objects
Eg1: In the shirt manufacturing workshop, the following costs arise:
- Fabric - Water
- Wages of the seamstress - Needles
- Factory rent - Electricity
- Scissors - Thread
- Sewing machine repair costs - Buttons
- Dye
1-18
III. Accounting principles
Accounting
principles
1-19