Samenvatting
Summary Summany of Financial and Management Accounting M5 GZW
- Instelling
- Universiteit Twente (UT)
Summary of Financial & Management accounting of Health Sciences module 5.
[Meer zien]Voorbeeld 4 van de 34 pagina's
Voorbeeld 4 van de 34 pagina's
In winkelwagengesponsord bericht van onze partner
Gekoppeld boek
Titel boek:
Auteur(s):
- Uitgave:
- ISBN:
- Druk:
Verkoper
Volgen
Voorbeeld van de inhoud
Summary Financial and Management AccountingFinancial accounting (HC 1 tm 3)
HC 1
Accounting definition = Collecting, analysing and communicating financial information. This is useful
for those who need to make decisions and plans about businesses.
Who needs accounting information? → banks, insurance companies, government, hospital
management, employees (job security), suppliers, owners, customers, competitors, community
Accounting information is not always objective, it can be potentially misleading:
1. measurement is quite subjective (difficult to measure value of things)
2. many companies increasingly pay attention to non-financial key performance indicators (how
a company contributes to pollution, community)
3. creative accounting: accounting practices that follow required laws and regulations, but
deviate from what those standards intend to accomplish. Creative accounting capitalizes on
loopholes in the accounting standards to falsely portray a better image of the company.
Different types of accounting
- Financial accounting: measuring and reporting of financial information for external users
(those other than the managers of the business)
Based on: Income statement, Statement of financial position, Statement of cash flows
- Management accounting: measuring and reporting financial information for the managers of
a business
Based on: Cost accounting, Decision making
1
,Financial accounting
- Financial performance and position contained in three financial statements:
▪ Statement of financial position (balance sheet, wealth)
▪ Income statement (profit and loss statement; flow of wealth & cash)
▪ Cash flow statement (flow of wealth & cash)
- Contained as part of company’s annual report (AR): all companies must prepare these
annually, and send to shareholders, some information is required by law or accounting
regulation and some is discretionary
- Only a small amount of annual report is made up of financial statements (this part is
regulated and subject to annual audit)
Balance sheet:
- Left: uses, where money is spent or things owned by the business
- Right: sources, where money obtained or amount owed by the business
2
,Long term investments = e.g. investments in other companies
Intangibles = assess that don’t have physical presence
Inventories → 3 types: raw materials, work-in-process, finished goods
Trade receivables → the amount owed to a business by its customers following the sale of goods or
services on credit (money is received around day 80, but goods are already sold on day 45)
Trade payables → an amount billed to a company by its suppliers for goods delivered to or services
consumed by the company in the ordinary course of business (money the company has to pay to
suppliers)
Equity = owner’s claim against the business, includes
1. Capital stock
2. Retained earnings, profit
Liabilities → claims of anyone else against the business, e.g. loans, trade payables, tax due
- Current liabilities: due for settlement in the short term, <1 year
- Non-current liabilities: due for settlement in the long term, >1 year
Accounting Equation
- Equation always balances!
- Idea that each accounting transaction affect at least one part of the equation
3
, Example:
Basic transaction, the company sells half of all goods purchased for £5,000 cash
➔ Company makes profit (added to retained earnings)
Accounting conventions:
- Business Reporting entity: the reporting entity is a separate from its owners
- Historical cost: the amount recorded is the amount paid
- Periodicity: accounts refer to a set period
- Consistency : the same treatment across years (use same method)
- Going Concern: accounts are prepared under the assumption that the business will continue
in the foreseeable future.
- Accruals: income and expenses are recorded when they occur (not when cash is transacted)
- Monetary measurement: only things (events, assets) that have financial implications are
measured, some items on the balance sheet are difficult to measure (e.g. relationships with
costumers/suppliers)
4
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper jcgroos. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €7,49. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 66579 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen