Hello guys !</br>
How are you , and how about Physics guys . Physics is interesting right . As long as I am having my final exam for account paper on this Friday I want to focus about Account first . No need to worry guys I will write about Physics when this exam finished . Stay tune with me okay .
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<center>[Accounting](https://goo.gl/images/6F3Eyt)</center>
I am summarizing a chapter that need me to memorize it . And I think it's better if I write it on Steemit as my additional notes because this is must be an interesting way to fight my laziness to read my notes.
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# What Is Account ?
* Is a system or activities of recording and summarizing business and financial transaction and reporting the result .
# What Is Account Basic Activities ?
* Identifying economic event- purchasing asset , selling or buying
* Recording economic activities - Classify and summarize and it also called as *Bookeeping* .
* Communicate information of the economic event to users - Prepare the Financial Statement
**For Your Information Accounting Including 3 Of Them Indentifying,Recording and Communicate .Meanwhile , Bookkeeping is Only Recording The Economics Event**
# Aim Of The Financial Reporting
* To provide financial info that presented in Financial Statement to the external and internal users .
# Who is external and internal users ?
Internal Users:
* Owner
* Employees
* Internal Auditor
External Users:
* Investor
* Government
* Supplier
# Qualitative characteristic of accounting information
* We are able to make correct decision and it should has specific characteristic
First of all is ,
* Relevance - information that can influance us to make a decision
* Faithful Representation - information that reflect the business entities and it must be free from error
* Compardibility - Can be compare with the year before with same industry business entity
* Verifiability - It must be verified although with any different resource it still provide similar information
* Timeliness - It based on due dates / reported timely
* Understandibality -- Accounting Information must be able to understand by the users and also need to include additional details
# The building block of accounting
* An accountant must follow certain standard of accounting
* Ethical behavior must be in place to ensure the standard work
# Ethics In Accounting
* System of moral principles
* Branch of philosophy
* Define what is good for society and individual
* The standard conduct by one's action are judge as right or wrong , honest or dishonest and fair or not fair
***Efective financial report dependa on ethical behavior***
# What is GAAP
* GAAP is stand for Generally Accepted Accounting Principle it's common set of standard that develope by accounting profession to indicate how to report the economic events
* In Malaysia accounting standard body that responsible to issue standard is called Malaysia Financial Reporting Standard .
# Measurement Principles
* Historical Cost Principle - Asset and liability measurement should be hand on actual price
* Objectivity Principles - Transaction must be recorded based on evidence or source document and trancsaction can be verified
* Full Disclosure Principles - Business entities mus disclose all info in the Financial Statement to enable user to make right decision .
* Revenue and Expense -Revenue should be recognized when earn and expanse should recognized when incur.
# Assumption
* Monetary Unit Assumption - We only record transaction that can be measured in term of money .
* Going Concern - States that the business will continue in operation and has indefinite life
* Accrual Accounting - Transaction must be recognized when they in
* Neutrality - Accounting information must be free from biasness and it must reflect the picture of the entity
* Materiality - It will be material if it can affected the users decision of the Financial Statement
* Consistency - Business entity must use similar accounting treatment for the following year
* Periodicity - Financial Statement should be present at least anually
* Economic Entity - Owner and the business are two different entities . Accountant only record the business transaction and not the owner transaction except when the intoduce capital and owner withdraws asset for personal using .
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So thats all for today , I hope you enjoy to read this content and wish me luck for my account paper on this Friday . Thanks !
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