Phi- Hung Nguyen Ph.

D
0879396996/ 0985509890
hungnp30@[Link]

-Lecturer, Head of research center of Applied Sciences, Faculty of

Business, FPT University, Hanoi, Vietnam ( Since 8/2019 ).

- Studied Ph.D Degree and Postdoc at National Taipei University of

Technology, Taiwan.

-My research interests are: Multi-Criteria Decision Making,

Optimization, International Business, Operational Research,
Organizational Behavior, Supply Chain Management, Sustainability,
Management Sciences.
1
 CHAPTER 1
ACCOUNTING IN BUSINESS
(Service company)

TỔNG QUAN VỀ NGUYÊN LÝ KẾ TOÁN

TRONG DN DỊCH VỤ

© 2009 The McGraw-Hill

Companies, Inc.,
 LEARNING OBJECTIVES
After this chapter, students should be able to :
•Understand the definition of accounting and its usage.
•Understand accounting principles and assumptions.
•Understand and identify definition and specific items of
Assets, Liabilities and Equity.
•Explain the accounting equation and analyze how
transactions impact the accounting equation.
•Understand the four core Financial statements.
 DEFINITION OF ACCOUNTING

An information and measurement Identifies, records and

system communicates information about
an organization’s business activities
to users.
 ACCOUNTING ACTIVITIES

Accounting

Identifying Xác định

Select transactions and events

Recording Ghi chép

Input, measure and classify

Communicating Truyền đạt thông tin

Prepare, analyze and interpret

McGraw‐Hill/Irwin Slide 2
 USERS OF
ACCOUNTING INFORMATION
bên ngoài

External Users Internal Users

•Lenders• Consumer Groups •Managers • Sales Staff

•Shareholders • External •Officers/Directors •
4
Auditors • Customers Budget Officers•Internal Auditors• C
(*) Where the
Accounting information (*) helps information is relevant,
people make better decisions reliable and
McGraw‐Hill/Irwin comparable Slide 3
 USERS OF ACCOUNTING
INFORMATION

External Users Internal Users

Managerial accounting (kế toán quản trị)

Financial accounting (Kế toán tài
provides information needs for internal
chính) provides external users with
decision makers.
financial statements.

McGraw‐Hill/Irwin Slide 4
 ETHICS - A KEY CONCEPT

Beliefs that Accepted standards

distinguish right from wrong of good and bad
from wrong behaviour

McGraw‐Hill/Irwin Slide 7
IMPORTANCE OF ETHICS IN ACCOUNTING
Ethics are crucial in accounting
• Accounting provides useful information for decision-makers
• For information to be useful, it must be trusted

Ethical choices in accounting

• Accountants/ auditors must consider how to best apply
accounting standards even when faced with issues that could
cause a company to face a significant loss or even be
discontinued

Role of accountant/auditor in society

• Provides/verifies information of the business to those who have
interest in its activities and may be likely affected by unethical
behavior in accounting
• Being the intermediaries in the capital markets and owe their
primary obligation to the public interest
 PRINCIPLES AND ASSUMPTIONS
OF ACCOUNTING

Revenue Recognition Principle

Cost Principle – Historical cost
Nguyên tắc ghi nhận doanh thu Nguyên tắc giá gốc hay Giá vốn lịch sử
1. Recognize revenue when it is earned.
Accounting information is based on
2. Proceeds need not be in cash.
actual cost. Actual cost is
3. Measure revenue by cash received considered objective.
plus cash value of items received.

Matching Principle Full Disclosure Principle

Nguyên tắc phù hợp Nguyên tắc công khai
A company must record its expenses A company is required to report the
incurred to generate the revenue details behind financial statements
reported. that would impact users’ decisions.
McGraw‐Hill/Irwin Slide 11
 1. COST PRINCIPLE

• Accounting information is recorded :

o As actual cost (purchase price)

o Based on evidence (e.g. invoices,

purchase orders, contracts)

2. REVENUE RECOGNITION PRINCIPLE
• Revenue: amount of money received
⇒ From whom? For what?
• Cash can be received before or after goods or services
are delivered:
⮚ Before: advance payment (e.g. gym membership)
⮚ After: Sales on credit/ on account
⇒ When do we have revenue? – Revenue recognition
principle
⇒ Why sales on credit not cash? What are the risks?
 2. REVENUE RECOGNITION PRINCIPLE
Revenue
Revenue is Revenue is recognized/
is earned realized/ recorded
realizable

• Revenue is earned: Goods/ services to the buyer (even if no cash)

• Revenue is realized/ realizable: the amount and type of payment are known
 2. REVENUE RECOGNITION PRINCIPLE
When do we have revenue? / When do we record revenue?
•Cash received before goods or services are delivered:
⇒ No revenue on the day of cash receipt
⇒ Revenue: on the day of product/ service delivery

•Cash received after goods or services are delivered:

⇒ Revenue: on the day of product/service delivery (even if no cash)
⇒ No revenue on the day of cash receipt
 2. REVENUE RECOGNITION PRINCIPLE
When is the revenue recognized?

• The Amazon Wood Co. sells wood to Fantastic Furniture Co.:

o Received order on 25 April 2017.
o Delivered wood on 01 May 2017. No payment is made, the buyer can pay
within 15 days.
o Received full payment on 10 May 2017.

• KPMG provides consultancy service:

o Received $1,500 cash on 25 November 2017, an advanced cash for
consultancy service to be provided in January 2018.
o Performed the consultancy service on 05 January 2018.
 2. REVENUE RECOGNITION PRINCIPLE
When is the revenue recognized?

• The Amazon Wood Co. sells wood to Fantastic Furniture Co.:

o Received order on 25 April 2017.
o Delivered wood on 01 May 2017. No payment is made, the buyer can pay
within 15 days.
o Received full payment on 10 May 2017.

• KPMG provides consultancy service:

o Received $1,500 cash on 25 November 2017, an advanced cash for
consultancy service to be provided in January 2018.
o Performed the consultancy service on 05 January 2018.
 3. MATCHING PRINCIPLE
(EXPENSE RECOGNITION PRINCIPLE)
• Expenses: the amount of money
⮚ Paid to run a business
⮚ Paid to buy items for the business
• Cash paid before having benefits:
⮚ Some goods are purchased but placed in warehouse and not used
yet (e.g. office supplies – văn phòng phẩm)
⮚ Some items are even used for many years (e.g. buildings)
• Cash paid after having benefits: employee wages

=> When do we record expenses?

 3. MATCHING PRINCIPLE
Match expenses with revenue or recognized as incurred
(cash is paid or not)

Directly:
Indirectly:
Expenses directly Immediately:
Over periods they
incurred to generate Upon acquisition
benefits
revenue

E.g. merchandise, E.g. building,

E.g. office supplies
employee wages furniture, insurance
 3. MATCHING PRINCIPLE
When are the expenses recorded?

1. Example 1:
-Company A buys a car at $10,000 in January 2018
-It sells the car in February for $12,000
2. Example 2:
-On the sales in February, Anna receives 10%
commission ($1,200)
-The commission is paid in March

3. Example 3: Office supplies bought and used in March

2017

4. Example 4:
-Construct a building worth $1,000,000 which is ready for
use in 2017.
-The building is estimated to be in use for 10 years
 3. MATCHING PRINCIPLE
When are the expenses recorded?

1. Example 1:
-Company A buys a car at $10,000 in January 2018
-It sells the car in February for $12,000
2. Example 2: February
-On the sales in February, Anna receives 10% (i.e. match
with revenue)
commission ($1,200)
-The commission is paid in March

Record
3. Example 3: Office supplies bought and used in March
immediately
2017 as expenses

4. Example 4:
-Construct a building worth $1,000,000 which is ready for
Allocated for
use in 2017. 10 years
-The building is estimated to be in use for 10 years
 3. MATCHING PRINCIPLE
Timing of payment and expense recognition:
•Expense can be recognized before cash is paid: Example 2
⇒Expense is recognized immediately as it is matched with revenue

•Expense can be recognized after cash is paid: Example 4

⇒Expense is not yet recognized because it is not incurred, instead recording as
asset (i.e. prepaid insurance). Expense is recognized at later date where it is
incurred (rather than all the cost in January).
 4. FULL DISCLOSURE PRINCIPLE
• Report all details:
o Accounting policies such as how and when revenue are recognized, how
property is depreciated, etc.
o Effects of foreign currencies
o Related-party transactions
o Stock options, and much more.
 PRINCIPLES AND ASSUMPTIONS
OF ACCOUNTING

Revenue Recognition Principle

Cost Principle – Historical cost
Nguyên tắc ghi nhận doanh thu Nguyên tắc giá gốc hay Giá vốn lịch sử
1. Recognize revenue when it is earned.
Accounting information is based on
2. Proceeds need not be in cash.
actual cost. Actual cost is
3. Measure revenue by cash received considered objective.
plus cash value of items received.

Matching Principle Full Disclosure Principle

Nguyên tắc phù hợp Nguyên tắc công khai
A company must record its expenses A company is required to report the
incurred to generate the revenue details behind financial statements
reported. that would impact users’ decisions.
McGraw‐Hill/Irwin Slide 11
 PRINCIPLES AND ASSUMPTIONS
OF ACCOUNTING

Now Future
Going-Concern Assumption Monetary Unit Assumption
Giả định hoạt động liên tục Giả định Thước đo tiền tệ
Reflects assumption that the business Express transactions and events in
will continue operating instead
being closed or sold. monetary, or money, units.
of

Business Entity Assumption

Time Period Assumption
Giả định thực thể kinh doanh
A business is accounted for Giả định kỳ kế toán
Presumes that the life of a company can
separately from other business
be divided into time periods, such
entities, including its owner.
McGraw‐Hill/Irwin as Slide 12
 ACCRUAL BASIS [Link] BASIS

CƠ SỞ KT DỒN TÍCH VÀ CƠ SỞ KT TIỀN MẶT

Accrual Basis Cash Basis
Cơ sở dồn tích Cơ sở tiền mặt
Revenues are
Revenues are
recognized when
recognized when
cash is received and
earned and expenses
expenses recorded
are recognized when
when cash is paid.
incurred. Not GAAP
Accounting

McGraw‐Hill/Irwin Slide 3
 THE ACCOUNTING EQUATION

PHƯƠNG TRÌNH CÂN BẰNG KẾ TOÁN

Accounting Equation

Assets = Liabilities + Owner’s Equity

Tài sản Vốn nợ Vốn chủ sở hữu

McGraw‐Hill/Irwin Slide 17
Classified Balance Sheet

Highly
Liquid

Less
Liquid
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900

Current assets are expected to be sold,

collected, or used within one year or the
company’s operating cycle.
Equipment $ 33,200
Buildings 170,000 203,200
Less accumulated depreciation 53,000 150,200
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 31
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments
Notes receivable 1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
Total investments 67,500

Long-term investments are expected to be held

for more than one year or the operating cycle.
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 32
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments

Tangible fixed assets are assets used

to produce or sell products and
Plant assets
services.
Equipment $ 33,200
Buildings 170,000 203,200
Less accumulated depreciation 53,000 150,200
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 33
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments
Notes receivable 1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
Total investments 67,500
Intangible fixed assets are long-term resources
used to produce or sell products and services
and that lack physical form.
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 34
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts $ 15,300
Wages payable
payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000

Current liabilities are obligations due within the

longer of one year or the company’s operating
cycle.
Total liabilities and equity $ 343,800

McGraw‐Hill/Irwin Slide 35
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts $ 15,300
Wages payable
payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000
Long-term liabilities:
Notes payable (net of current portion) 150,000

Long-term liabilities are obligations not due

within the longer of one year or the company’s
operating cycle.

McGraw‐Hill/Irwin Slide 36
 OWNER’S CAPITAL (OR EQUITY)
VỐN CHỦ SỞ HỮU
Equity = Contributed Capital + Retained Earnings
= Owner, Capital – Owner, Withdrawal + Revenues - Expenses

Vốn chủ sở hữu của công ty đến từ 2 nguồn cơ bản đó là:

•Vốn góp ban đầu của các chủ sở hữu (Contributed capital )
•Lợi nhuận tích lũy được qua các năm kinh doanh CÒN GỌI LÀ LỢI
NHUẬN CHƯA PHÂN PHỐI LŨY KẾ (Retained earnings)

McGraw‐Hill/Irwin Slide 20
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts $ 15,300
Wages payable
payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000
Long-term liabilities:
Notes payable (net of current portion) 150,000
Total liabilities $ 179,000
EQUITY
Owner Capital 164,800
Total liabilities and equity $ 343,800

Equity is the owner’s claim on the assets.

McGraw‐Hill/Irwin Slide 37
 EXPANDED ACCOUNTING EQUATION

Assets = Liabilities + Equity

= Liabilities + Owner, Capital – Owner, Withdrawal + Revenues - Expenses

McGraw‐Hill/Irwin Slide 20
 CHART OF ACCOUNTS
TÀI KHOẢN KẾ TOÁN
The ledger is a collection of all accounts for an
information system. A company’s size and diversity
of operations affect the number of accounts needed.
The chart of accounts (hệ thống tài khoản) is a list of all
accounts and includes an identifying number for each account.
Account Number Account Name Accounting Number Accounting Name

McGraw‐Hill/Irwin Slide 10
 CHART OF ACCOUNTS
VÍ DỤ TÀI KHOẢN KẾ TOÁN QUỐC TẾ

Current Assets Property, Plant, Equipment

(account numbers 10000 - 16999) (account numbers 17000 - 18999)
10100 Cash 17000 Land
10600 Petty Cash 17100 Buildings
12100 Accounts Receivable 17300 Equipment
13100 Inventory 17800 Vehicles
14100 Supplies 18100 Accumulated Depreciation -
15300 Prepaid Insurance Buildings
18300 Accumulated Depreciation -
Equipment
18800 Accumulated Depreciation –
Vehicles
 CHART OF ACCOUNTS
Current Liabilities Long-term Liabilities
(account numbers 20000 - 24999)
(account numbers 25000 - 26999)
20100 Notes Payable 25100 Loan Payable
21000 Accounts Payable 25600 Bonds Payable
22100 Wages Payable
24500 Unearned Revenues
Stockholders' Equity
(account numbers 27000 - 29999)
27100 Common Stock, No Par
27500 Retained Earnings
29500 Treasury Stock
CHART OF ACCOUNTS
• Operating Revenues (account numbers 30000 - 39999)
31010 Sales - Division #1, Product Line 010
31022 Sales - Division #1, Product Line 022
32015 Sales - Division #2, Product Line 015
33110 Sales - Division #3, Product Line 110
Cost of Goods Sold (account numbers 40000 - 49999)
41010 COGS - Division #1, Product Line 010
41022 COGS - Division #1, Product Line 022
42015 COGS - Division #2, Product Line 015
43110 COGS - Division #3, Product Line 110
CHART OF ACCOUNTS
Marketing Expenses (account numbers 50000 - 50999)
50100 Marketing Dept. Salaries
50150 Marketing Dept. Payroll Taxes
50200 Marketing Dept. Supplies
50600 Marketing Dept. Telephone
Payroll Dept. Expenses (account numbers 59000 - 59999)
59100 Payroll Dept. Salaries
59150 Payroll Dept. Payroll Taxes
59200 Payroll Dept. Supplies
59600 Payroll Dept. Telephone
Other (account numbers 90000 - 99999)
91800 Gain on Sale of Assets
96100 Loss on Sale of Assets
 TRANSACTION ANALYSIS

PHÂN TÍCH 1 GIAO DỊCH

The accounting equation MUST remain in
balance after each transaction.

Assets = Liabilities + Equity

McGraw‐Hill/Irwin Slide 22
 THE ACCOUNTING EQUATION
PHƯƠNG TRÌNH CÂN BẰNG KẾ TOÁN

ASSET = LIABILITIES + EQUITY

1 Increase Increase

2 Reduce Reduce

3 Increase and reduce No change

4 No change Increase and reduce

Để đảm bảo phương trình kế toán luôn cân bằng, có các khả năng xảy ra sau:
• Tài sản tăng thì nguồn vốn cũng tăng ( nợ hoặc vốn chủ sở hữu tăng )
• Tài sản giảm thì nguồn vốn cũng giảm (nợ hoặc vốn chủ sở hữu giảm )
• Phía tài sản tăng và giảm triệt tiêu nhau, nguồn vốn không có gì thay đổi
• Phía nguồn vốn tăng và giảm triệt tiêu nhau, tài sản không có gì thay đổi
 Nhận diện tài khoản
ASSET có thể là: Liability có Owner capital có thể là:
thể là:
Contributed Retained earning
capital

cash Account Contributed Revenue Expense

payable capital
A.R Loan
Supplies Unearned
revenue
Inventory
Prepaid expense
Fixed assets (có thể là
Equipment or Vehicle or
Building)

Ở trên là một số ví dụ của tài khoản tài sản, tài khoản Nợ và tài khoản vốn chủ sở
hữu.
 TRANSACTION ANALYSIS

Mr Taylor invests $30,000 cash to

start a consulting business
.

McGraw‐Hill/Irwin Slide 23
 TRANSACTION ANALYSIS

Mr A invests $30,000 cash to

start a consulting business
.
The accounts involved are:
(1) Cash
(2) Contributed Capital (C.C)

McGraw‐Hill/Irwin Slide 23
 TRANSACTION ANALYSIS

Mr A invests $30,000 cash to

start a consulting business
.

McGraw‐Hill/Irwin Slide 23
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

McGraw‐Hill/Irwin Slide 25
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

The accounts involved are:

(1) Cash (asset)
(2) Supplies (asset)

McGraw‐Hill/Irwin Slide 25
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

Assets = Liabilities + Equity

McGraw‐Hill/Irwin Slide 26
 TRANSACTION ANALYSIS

Purchased equipment for $26,000 cash.

McGraw‐Hill/Irwin Slide 27
 TRANSACTION ANALYSIS

Purchased equipment for $26,000 cash.

The accounts involved are:

(1) Cash (asset)
(2) Equipment (asset)

McGraw‐Hill/Irwin Slide 27
 TRANSACTION ANALYSIS

Purchased equipment for $26,000 cash.

Assets = Liabilities + Equity

McGraw‐Hill/Irwin Slide 28
 TRANSACTION ANALYSIS

Purchased Supplies of $7,100 on account.

on account hay on credit : chưa thanh toán tiền

McGraw‐Hill/Irwin S4lide
 TRANSACTION ANALYSIS

Purchased Supplies of $7,100 and on account.

The accounts involved are:

(1) Supplies (asset)
(2) Accounts Payable (liability)

McGraw‐Hill/Irwin Slide 29
 TRANSACTION ANALYSIS

Purchased Supplies of $7,100 and on account.

McGraw‐Hill/Irwin Slide 30
 TRANSACTION ANALYSIS

Provided consulting services receiving $4,200

cash.

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Provided consulting services receiving $4,200

cash.

The accounts involved are:

(1) Cash (asset)
(2) Revenues (equity)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Provided consulting services receiving $4,200

cash.

McGraw‐Hill/Irwin Slide 32
 TRANSACTION ANALYSIS

Payment of expense in cash: $1,000 rent and

$700 for employee salaries

The accounts involved are:

(1) Cash (asset)
(2) Expense (equity)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Payment of expense in cash: $1,000 rent and

$700 for employee salaries

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Provide services on credit: Consulting services of

$1,600 and renting a machine for $300
The accounts involved are:
(1) Accounts receivable (asset)
(2) Revenue (equity)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Provide services on credit: Consulting services

of $1,600 and renting a machine for $300

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Receipt of cash from accounts receivable

($1,900 from previous example)

The accounts involved are:

(1) Accounts receivable (asset)
(2) Cash (asset)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Receipt of cash from accounts receivable

($1,900 from previous example)
 TRANSACTION ANALYSIS

Payment of $900 for accounts payable ($7,100

from previous example)

The accounts involved are:

(1) Cash (asset)
(2) Accounts payable (liabilities)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Payment of $900 for the accounts payable

($7,100 from previous example)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Withdrawals of cash for $200 by owners for

personal use

The accounts involved are:

(1) Cash (asset)
(2) Withdrawals (equity)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Withdrawals of cash for $200 by owners for

personal use

McGraw‐Hill/Irwin Slide 31
 FINANCIAL STATEMENTS
BÁO CÁO TÀI CHÍNH

Let’s prepare the Financial Statements reflecting

the transactions we have recorded.

[Link] Statement
2. Statement of owners’ equity
[Link] Sheet
[Link] of Cash Flows

McGraw‐Hill/Irwin Slide 33
FINANCIAL STATEMENTS
BÁO CÁO TÀI CHÍNH
 INCOME STATEMENT
Báo cáo kết quả hoạt động kinh doanh của DN dịch vụ

FastForward
Income Statement
For Month Ended December 31, 2009

Revenues:
Consulting revenue $ 5,800
Net income is the
Rental revenue 300 difference between
Total revenues $ 6,100
Expenses: Revenues and
Rent expense 1,000
Salaries expense 700 Expenses.
Total expenses 1,700
Net income $ 4,400

The income statement describes a company’s revenues

and expenses along with the resulting net income or
loss over a period of time due to earnings activities.
McGraw‐Hill/Irwin Slide 34
 STATEMENT OF OWNER’S EQUITY
Báo cáo thay đổi trong vốn chủ sở hữu
FastForward
Income Statement
For Month Ended December 31, 2009 The net income of $4,400
Revenues:
Consulting revenue $ 5,800 increases Owner's Equity
Rental revenue
Total revenues
300
$
by $4,400.
Expenses: 6,100
Rent expense 1,000
Salaries 700
expense 1,700
Total expenses $ FastForward
Net income
4,400 Statement of Owner's Equity
For Month Ended December 31, 2009
C, Taylor, Capital December 1, 2009 $ -
Plus: Investment by ower $ 30,000
Net income 4,400
34,400
Less: Withdrawals by owner 200
C. Taylor, Capital, December 31, 2009 $
34,200
McGraw‐Hill/Irwin Slide 35
 BALANCE SHEET
Bảng cân đối kế toán
The Balance Sheet describes a company’s financial
position at a point in time.

FastForward
Balance Sheet
December 31, 2009

Assets Liabilities & Equity

Cash $ 4,800 Accounts payable $ 6,200
Supplies 9,600 Total liabilities 6,200
Equipment 26,000 Equity
C. Taylor, Capital 34,200
Total assets $ 40,400 Total liabilities and equity $ 40,400

McGraw‐Hill/Irwin Slide 36
 STATEMENT OF CASH FLOWS
Báo cáo lưu chuyển tiền tệ
FastForward
Statement of Cash Flows
For Month Ended December 31, 2009

Cash flows from operating activities:

Cash received from clients $ 6,100
Cash paid for supplies (3,400)
Cash paid for rent (1,000)
Cash paid to employees (700)
Net cash provided by operating activities $ 1,000
Cash flows from investing activities:
Purchase of equipment (26,000)
Net cash used in investing activities (26,000)
Cash flows from financing activities:
Investment by owner 30,000
Withdrawal by owner (200)
Net cash provided by financing activities 29,800
Net increase in cash $ 4,800
Cash balance, December 1, 2009 -
Cash balance, December 31, 2009 $ 4,800
McGraw‐Hill/Irwin Slide 37
 BUSINESS ACTIVITIES

PHÂN LOẠI HOẠT ĐỘNG KINH DOANH

There are three major types of activities in any organization:
[Link] Activities – Hoạt động tài chính: Providing the means
(from credit and equity financing) for organizations to pay for
resources such as land, buildings, and equipment to carry out
plans.
[Link] Activities - Hoạt động đầu tư: using the financing for
acquiring and disposing of resources (assets) that an organization
uses to acquire and sell its products or services.
[Link] Activities – Hoạt động kinh doanh: Involve using
resources to research, develop, and purchase, produce, distribute,
and market products and services.

McGraw‐Hill/Irwin Slide 39
 END OF CHAPTER 1

McGraw‐Hill/ Slide 40