accounting and financial statements mk unit 19 rb, p. 32-36
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BOOKKEEPERS, ACCOUNTANTS, AUDITORS
enter data and record transactions in journals (ledgers) of companies accounts
turn data into meaningful financial information, prepare financial statements
are in charge of internal and external oversight of accounts
Accountant vs. Bookkeeper: Small Business Financial Differences http://www.businessnewsdaily.com/15-accountant-bookkeeper-differences.html
FINANCIAL TRANSACTIONS
EXPENDITURE
(MAKING PAYMENTS)
…to creditors
…to the government
…to shareholders
…to suppliers
INCOME
(RECEIVING MONEY)
…from debtors
…from customers
…from investors
…from banks
THE ANNUAL REPORT
COMPANY’S PERFORMANCECOMPANY’S PERFORMANCE THE CHAIRMAN’S STATEMENT
(overview) DIRECTOR’S REPORT
(principal activities) AUDITOR’S REPORT
(true and fair view of the accounts) THREE FINANCIAL STATEMENTS
RB p. 32
THREE FINANCIAL STATEMENTS
PROFIT & LOSS ACCOUNT
profitabilityBALANCE SHEET
financial position of a firm at a particular time
CASH FLOW STATEMENT
liquidity
THREE FINANCIAL STATEMENTS
PROFIT & LOSS ACCOUNT
revenue/turnover - costs /overheadsBALANCE SHEET
assets=liabilities+owners’ equityCASH FLOW STATEMENT
sources of funds v. applications of funds
(cash inflow v. cash outflow)
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This document provides aggregate data regarding all cash inflows a company receives from both its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given quarter.
Source: Investopedia
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A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time.
These three segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
It must follow the following formula:Assets = Liabilities + Shareholders' Equityhttp://www.investopedia.com/video/play/introduction-balance-sheet/
?
A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year.
These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs.
It is also known as an "income statement".
REVISION 1Bookkeepers _____ data in the books,
accountants ____their work and ____certify that the accounts give a true and fair view of the financial situation.
The Annual report consists of the ____ report, the ____ report and the ___statement.
Profit and loss account shows _____ and _____.
The balance sheet consists of ____, _____, and _____.
The cash flow statement shows ___ and ___.
P&L: From top line to bottom line
Revenues TOP LINE- Cost of sales= GROSS PROFIT - Operating expenses= EBITDA– Depreciation and amortization
= EBIT
-Interest- Taxes = NET PROFIT BOTTOM LINE P. 33
BALANCE SHEET
ASSETS ASSETS (to own)(to own)
CURRENT ASSETS
FIXED ASSETS
OTHER ASSETS: GOODWILL
LIABILITIES LIABILITIES (to owe)(to owe)
CURRENT LIABILITIES
LONG-TERM LIABILITIES
OWNER’S EQUITYOWNER’S EQUITY
SHARE CAPITAL
RETAINED PROFIT
RESERVES
FIXED, INTANGIBLE OR CURRENT ASSETS?
FIXED
PROPERTY
PLANT
EQUIPMENT
LAND
CURRENT
CASH
DEBTORS (ACCOUNTS RECEIVABLE)
INVENTORY
INTANGIBLE
BRAND NAMESCOPYRIGHTPATENTSTRADE MARKS
LIABILITIES
CURRENT
ACCOUNTS PAYABLEACCRUED EXPENSES
ACCRUED:
recognized in the books before it is paid for
LONG TERM
DEFERRED INCOME TAX
LONG-TERM DEBT (MORTGAGE, BONDS)
P. 34
REVISION 2
PROFIT AND LOSS ACCOUNT BALANCE SHEET
SORT OUT:
REVENUE, FIXED ASSETS, COST OF SALES, CURRENT LIABILITIES, EQUITY, EBIT, GOODWILL,INVENTORY, OPERATING EXPENSES, ACCOUNTS PAYABLE, NET INCOME
REVISION 2
PROFIT AND LOSS ACCOUNT
BALANCE SHEET
• REVENUE• EBIT• OPERATING
EXPENSES• COST OF SALES• NET INCOME
• FIXED ASSETS• EQUITY• GOODWILL• CURRENT
LIABILITIES• ACCOUNTS
PAYABLE
CASH FLOW STATEMENT
money coming into the business
(inflows)
money going out of the business
(outflows)
relating to
OPERATING/INVESTMENT/FINANCING ACTIVITIES
sale of goods, dividends, taxes, issuing shares etc.p. 35
REVISION 3
MK, p. 95
Vocabulary 1, 2, 3, 4MK, p. 97
definitions
http://www.investopedia.com/video/play/goodwill/
http://www.investopedia.com/video/play/operatingincome/
AktivaPasivaPrihod od prodajeTroškovi prodajeDugotrajna imovinaKratkoročne obvezeDospjeli, ali neplaćeni
troškoviZalihePotraživanjaAmortizacijaMaterijalna imovina
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