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KUPANG TIMES - "Accounting theory and practice, including responsibilities, principles, standards, conventions (customs), and all activities,"
"Things related to accountants"
"The art of recording and summarizing financial transactions and interpreting the consequences of a transaction on an economic entity,"|KBBI
"Matters relating to the implementation of accounting, both theory and habits, norms, principles, and so on (accountancy) peace agreements that have been agreed upon, both by the party that bears the loss and the party that causes the loss; this agreement is usually carried out in in front of the judge so that it will not be a problem at a later date (accord),"|OJK
What is Accounting.?
Accounting is theory and practice related to the calculation of money.
In economics, accounting is used to record and analyze financial transactions in business.
Starting from expenses per day, per month, and also per year.
With accounting knowledge we can also determine whether a business has a profit / or loss.
Accounting Function.?
"Basically, accounting functions to provide financial reports in a business entity,"
How are these financial reports made.?
"By analyzing the components of accounting,"
"After the analysis process, financial reports are made in a qualitative way with units of measure of money,"
"This financial report is very necessary for management's decision-making regarding the future of the business entity,"
Accounting Component,
In making financial reports based on accounting calculations, there are 5 components that must be analyzed.
These components greatly affect the results of the Financial Statements.
1. Assets, The first component of accounting is assets or commonly known as assets.
In making financial reports, how many assets of a business entity will be calculated.
Usually, a business entity has varying asset values and can be in the form of money or goods, depending on the business entity it owns.
for example; "a textile company has assets in the form of several sewing machines and fabrics to make shirts,"
2. Liabilities, in the accounting component, what is meant by liabilities are things that a company or business entity is obliged to issue within a certain period,
for example; "debt / or loan to the bank that must be paid per month,"
3. Equity, In addition to immovable assets, usually a company has movable assets which are also called equity.
Basically, equity is the investment value of a company.
Income, This component contains the overall income generated by a company or business entity within a certain period of time.
5. Expenses, this component contains all invoices / or operational costs incurred by the company / or business entity within a certain period of time.
| Narrative: Finance
|Text: W.J.B
| Literacy Source: W.J.B
