Albany Senior High School/Yr 11 Accounting Korean

= 1.1 =

Describe accounting
*the purpose of accounting and/or financial statements


 * *users or accounting and/or financial statements


 * *uses of accounting and/or financial statements


 * *specialised areas of accounting


 * *features of the entities selected from:            -ownership             -sources of finance             -owner’s/members’ liabilities

*financial statements will be limited to: statement of accounting policies, income statement, balance sheet and cashflow statement *


 * entities will be selected from:           -sole proprietors registered for GST, either service and/or trading business that    use a periodic inventory system             -incorporated and unincorporated community organisations

Recognise or define or apply financial elements

 * assets *liabilities  *equity  *income   *expenses  *capital and revenue expenditure  *depreciation and explanation why property, plant and equipment are depreciated  *classification of financial elements in the financial statements

Recognise or define or apply accounting concepts

 * the notions of an accounting entity and monetary measurement *going concern  *period reporting  *accrual basis  *historical cost

*Describe accounting *Recognise and define or apply financial elements *Recognise and define or apply accounting concepts
Describe means recognise and define Explain means apply/and or justify

Excellent
*Fully describe accounting *Recognise, define and apply financial elements  *Recognise, define and apply accounting concepts  *Fully describe means in depth and/or breadth

Fully describe means in depth and/or breadth

Financial : 재정
Prepare end of year statements and analyses and interpret accounting information

그해의 마지막을 위해 그해 회계정보를 분석 및 해석한다

Cost : 가격
Involves calculating the costs of producing the goods and services which a business sells, setting cost budgets, production planning and reports

관련된 비용 예산, 생산 계획 및 보고서를 설정, 상품과 기업 판매 서비스를 생산하는 비용을 계산

Management : 경영
Produce, analyse and co-ordinate the flow of information which will help the running of the business

분석 및 공동 사업의 실행에 도움이 될 정보의 흐름을 종좌표, 제작

Taxation : 세금
Provides tax advice, taxation planning and preparation of tax returns.

제공 세금 관련 조언, 세무 계획 및 세금 반환의 준비.

Auditors : 회계 감사관
An independent chartered accountant that checks the accuracy the financial information to ensure statements show a ‘true and fair view’ of financial affairs.

진술을 보장하기 위해 정확성에게 금융 정보를 확인 독립된 공인 회계사 재정 사정의 '진실과 공정한 전망'을 보여줍니다

Accounting Technician : 어카운팅 테크닉
Highly skilled and qualified in recording transactions, preparing accounts and financial statements, setting up and monitoring accounting systems and providing financial and management information

고도로 숙련된하고, 거래를 녹음 계정과 재무 제표를 준비, 설정 및 회계 시스템을 모니터링 및 제공하는 재무 및 경영 정보의 공인

Sole Trader:단독 상인 [편집]
-one owner called the proprietor:한 주인이 주인이라고

- finance comes from owners contribution, profits or creditors (bank):금융 소유자 기여, 이익 또는 채권자 (은행)에서 유래

- owners keeps all the profits:소유자는 모든 이익을 유지 - unlimited liability: If business fails the owners personal assets may have to be sold to repay debt :무제한 책임 : 기업의 소유자에 실패하면 개인 자산이 부채를 갚을 것을 판매 할 수 있습니다

Partnership:조합
2+ owners called partners:2 + 소유자가 파트너라는

- finance comes from partners contributions, profits or creditors (bank):금융 파트너 공헌, 이익 또는 채권자 (은행)에서 유래 - Profits/losses, salaries and responsibilities recorded in a written partnership agreement. If no agreement written up then rule of Partnership Act 1908 apply and partners share profit/losses equally, are equal managers and all must consent for addition of new partner unlimited liability: If business fails the partners personal assets may have to be sold to repay debt:이익 / 손실, 급여 및 서면 제휴 계약에 기록된 책임. 비즈니스 파트너를 실패하면 개인 자산이 부채를 갚을 것을 판매 할 수 있습니다 : 다음 최대 서면 아무 계약은 파트너십 법의 규칙이있다면 1908은 / 손실 똑같이, 동등 관리자 모두가 새로운 파트너 무제한 책임의 추가에 대한 동의해야 아르 파트너 공유하는 이익과 적용

Registered Companies:등록 기업
1+ owners called shareholders:1 + 소유자는 주주라는

- finance comes from selling more shares, profits, and loan:재무 더 주, 이익, 그리고 대출을 판매에서 유래 - shareholders elect a board of directors to run the company and managers are hired limited liability:일부 이익은 배당금으로 주주들에게 배포하는 나머지는 확장을위한 재투자는 (불리는 이익 잉여금)

- If the company fails the shareholders do not lose more than the value of their shares. Personal assets are protected. Company names end in ‘Ltd’ (limited) to reflect limited liability:이 회사는 실패하는 경우 주주들은 주식 가치보다 더 많은 걸 잃게하지 않습니다. 개인 자산 보호를받습니다. '주'(제한적)에 회사 이름 엔드 유한 책임을 반영합니다.

Current Assets(현재 자산)
-Will be turned into cash within 1year. eg) Bank, inventory/stock account receivable

(바뀔것이다 1년안에 예)은행, 창고, 계정)

Non Current Assets(현재 자산이 아닌것)
-Will not be turned into cash within a year.

(1년안에 바뀌지 않을것이다.)

-Helps business earn revenue. eg)Property, equipment, plant, delivery van.

(회계를 도와주고 얻은 수입 예)재산,장비,설비, 운송용차량.)

Past transaction (과거의 상거래)
-The assets was purchased at a time in the past

(재산이 예전에 구입을 했었다)

Present control (현제 조율)
-The business has the right to use the asset and benefit from it and can exclude others.

(재계는 사용할 수 있는 권리를 자산과 도움을 받을 수 있고 다른 사람들에게 제외)

Future Economics benefit(미래의 수입경제)
-The asset will benefit the business by helping them generate revenue in the future.

(자산의 혜택을 받게 되며 사업을 돕 세수를 생성합니다.)

Apply(E) (응용하다 E)
Why is delivery van an asset? The delivery van was purchased in the past by kaihu general store.

(왜 운송용차량이 재산인가? 운송용차량은 예전에 카이후 젠럴 상점에서 샀었다)

They can presently use it for deliveries and exclude others. Deliveries will help KGS earn revenue in the future.

(그들은 운송과 다른을 제외한것을 바로 사용할 수 있다. 운송은 미래에 KGS의 수입에 도움을준다)

Recognise (A) : 초입
Trading business : 트레이딩 사업

- Sales : 세이브

Service business : 서비스 사어

- Fess : 돈

Other income : 다른 수입

- Conmission recieved : 커미션 수입

- Rent recieved : 렌트수입

- Interest recieved : 이자 수입

- Divideads recieved : 디비더 수입

Define (M) : 중문
Increase in economics benefits by : 경제 수입 증가

- In flow of cash : 캐시가 플로우를 탈경우

- Increases assets : 에셋이 올라가면

- Increases profit : 이득이 올라가면

- increases owes : 수입이 올라가면

Equity : 돈

- Is cost a contribution from the owner : 주인이 돈을 낸다

Apply (E) : 어플라이
why is sales income? 세일이 왜 수입인가

- Cash sales are income fr Kaihu General Store, because there is an flow of cahs. This increase their bank asset, which increases owners equity throgh increased profit. Its not a contribuion by the owners

돈은 카이후 재너러 샵에서 수입이다 왜냐하면 그건은 돈을 타기때문이다. 그것은 지네 은행의 에셋을 올려준다.

Recognise (A) : 알아보기
Selling and distribution : 팔고 사드리기

- Expenses in cuttes throgh selling the goods in store or distribution to costomers eg. Advertising, sales salaries, delivery van, expenses shop rent

물건과 서비스로 소비를 늘린다. 샐러리나 배달차등등

Administration expenses : 소비 한다구

- day to day runnig eg. Electricity, insrance, telephone rental, bad debt, office wages

하루하루바뀐다 전기 전화요금 등등

Finance costs: 회계 돈

- Costs of financing the business loans etc eg. 'Interet' on

회계 비지니스에서 돈이나가는것. 이자

Define (M) : 중문
Expences decrease economic benefit by

소비는감소한다 경제 이득에서

- Outflow of cash : 박으로 도는 돈

- Decrease in asset (bank) or increase in liability

감소한다 돈이 아니면 라이빌리티가 올라간다

- Decrease profit

이익 감소

- Decrease OE

오널스이쿠이티 감소

- Not a drawing by the owner

자기 소비 감소

Apply (E) : 어플라이
why the wages an expensse? : 웨이지스가 왜 소비인가

- When KGS pay wages there is an outflow cash which decrese the bank assets. This decreses profit and owners equity and is not a drawing from the owner.

KGS 가 웨이지스를 페이하면 그들의 은행 에셋이 감소한다

capital and revenue expenditure (Ach Std)
Remember… Expenses/Expenditure is defined as a decrease in assets (OR an increase in liabilities). 

Capital expenditure –
*Expenditure that will benefit the business beyond the current financial year.


 * *Expenditure will result in an increase in Non Current Assets OR a decrease in Non Current liabilities BUT does not affect owners equity


 * *Capital expenditure also includes the costs involved in getting the asset delivered, installed, operational and improvements to an assets which will increase its expected useful life


 * *E.g. purchase of a new delivery van, repayment on principal of a loan, sign writing on a delivery van, staff training on a new machine


 * *Capital expenditure affects the Balance Sheet



Revenue expenditure –
*Expenditure that will benefit the business for the current financial year.


 * *Revenue expenditure is the recurring costs incurred to earn income, and will affect the net profit and owner’s equity. It is the day-to-day expenses.


 * *E.g. petrol insurance, repairs, printer paper, wages


 * *Revenue expenditure affects the Income Statement



Depreciation is a measure of the loss of future service potential in a fixed asset during an accounting period.
*It is calculated by allocating (spreading) the cost of an asset over its estimated useful lifetime. Fixed assets lose the ability to produce revenue for the business in the future and this loss in service potential must be recorded in the period it occurs


 * *Depreciation for the year is recorded as an expense in the Income Statement and is added to the Accumulated Depreciation which is a running total of the amount depreciated so far on the asset, in the Balance Sheet


 * *Depreciation is NOT a way to value assets, but a way of recording the loss of the value of an asset over its useful lifetime. If this loss was not recorded then assets would be overstated in the financial statements.


 * *There are 3 ways to measure depreciation:



Account Entity : 어카운팅 엔티티
The financial affairs of the business are kept separate and distirct from the financial affairs the owners. eg. Owners boat is not recorded as a business asset

회계 비지니스가 계속 따로 유지한다 오너에게로부터

Money Measurment : 돈계산
All transactions are recorded in a common unit of measure - the NZD.eg. If importing from Japan do not record in Yean. Recordes in NZD.

뉴질랜드에선 뉴질랜드 달러만, 일본 얀 따윈 쓰지안는다

Reporting Period Concept 돌아오는 시기
The financial life of a business is divided into periods of equal lenght in NZ, its the years ending 31th March

비지니스는 계속돌아오는시기가 있다 31 일 마치 같이

Current liabilities(현재 자산)
-Have to be paid within 1year. eg) account payable, GST, short term loan bank overdraft.

-(1년안에 돈을 지불해야한다 예) 돈주기,세금,짧을시간의 은행으로부터의 대출

Non current liabilities(현재 자산이 아닌것)
-Due to be paid beyond a year eg) loan, mortgage

-(돈을 받을 수 없기 때문에 1년을 넘어) dmk

Past transaction
-The business owes money as the result of a past transaction

Present obligation
-The business must repay the amount owed

Future outflow of resourse
-The business will give up money to repay debit in the future

Apply
Why is account payable a liability Kaihu General sotre. Purchased stock on credit in the past.

KGS is presently obliged to pay for their stock in the future there will be an outflow of resources as their bank decrease.

The main aims of accounting:
To provide financial and non-financial information to users for decision making To provide accountability for what the business has achieved over the course of a year

The main aim of financial statements:
Statement of Accounting Policies – to explain how accounts are prepared Balance Sheet – shows what the entity is worth (Assets less Liabilities) Income Statement – measures profit Statement of Cash Flow – shows movement of cash and changes in bank account

users of accounting and/or financial statements (Ach Std) uses of accounting and/or financial statements (Ach Std)

Sole Trader
e.g. farmer, shopkeeper

one owner called the proprietor

finance comes from owners contribution, profits or creditors (bank)

owners keeps all the profits unlimited liability: If business fails the owners personal assets may have to be sold to repay debt

advantages
easy to set up you are your own boss owner chooses hours and holidays owner makes all the decisions

disadvantages
you take all the risk if you want a holiday or fall sick you have to employ someone or close the business down lack of capital/finance may stall growth and expansion unlimited liability applies

-young ji cho
= Type of Business =

Sole Trader
-One owner called the proprietor

-

e.g. farmer, shopkeeper




 * Finance comes from owners contribution profits or creditors (bank)




 * Owners keeps all the profits



Unlimited liability
If business fails the owners personal asstes amy have to be sold to repay debt



Advantages
*Easy to set up




 * You are your own boss




 * Owner chooses hours and holidays




 * Owner makes all the decisions



Disadvantages
*You take all the risk




 * If you wnat a holiday or gall sick you have to employ someone or close the business down




 * lack of capital/finance may stall growth and expansion




 * unlimited liability applies



Partnership
2+ owners called partners



e.g. doctors, accountants




 * Finance comes from partness contributions, profits or creditors (bank)




 * Profits/losses, salaries and responsibilities recorded in a written partnership agreement. If no agreement written up then rule of Partnership Act 1908 apply and parners share profit/ losses equally, are equal managers and all must consent for addition of new partner



Unlimited liability
If business fails the partners personal assets may have to be sold to repay debt



Advantages
*One partners can operate the business if another is ill




 * Partners share set-up costs



Disadvantages
*some partners may work harder than others




 * decision-making can be long process if partners struggle agreeing




 * Poor partner relations may hinder business




 * Death of a partner dissolves the partnership




 * All partners exposed to unlimited liability



Registered Companies
1+ owners called shareholders



e.g. Air NZ, Telecom




 * Finance comes from selling more shares, profits, and loan


 * Some profits are distributed to shareholders as dividends and the remainder is reinvested for expansion (called retained eamings)




 * Shareholders elect a board of directors to run the company and managers are hired



Limited liability
The company fails the shareholders do not lose more than the value of their shares. personal assets are protected. Company names end in 'Ltd (limited) to reflect limited liability.



Advantages
*limited liability applies




 * Huge amounts of capital can be raised




 * Skilled managers can be emploted to manage the company



Disadvantages
*Legal process to floow in set-up




 * annual accounts have to be audited




 * The company can only trade in cativities set out in their constitution



Co-operatives
Are set up to directly benefit members. Large amounts of capital is raised from members who have limited liabliity. The largest company in NZ ‘Fonterra’ is a co-operative.



Community Organisations
• Incorporated – 15+ members governed by a constitution (rules) with limited liability. Being incorporated means clubs can issue debentures as an additional source of finance to subscriptions/fees (Debentures are loans by club members to a club that are to be repaid at a set time with a set rate of interest)

•

• Unincorporated – Small number of members with unlimited liability

•

-Eun Sung.Kim
= EQUITY  =

Definition
Is the assets of the business less the liabilities of the business



Essential characteristics


*OE = A – L *Owners equity is the ‘net worth’ of a business *Owners equity is also known as business capital  *Owners equity is recorded in the Balance Sheet

OWNERS EQUITY
Opening owners equity                        XX + Net Profit                                XX + Contributions by owner          XX                                                              XX - Drawings                                            (XX) = Closing owners equity                     $XXX

OE increases when:
-The owner invests money or assets in the business -The business earns income from selling its goods and services

OE decreases when:
-The owner takes drawings of cash or goods for personal use -The business pays for or incurs expenses in the process of earning income

-Eun Sung.Kim
Capital expenditure –

• Expenditure that will benefit the business beyond the current financial year. • Expenditure will result in an increase in Non Current Assets OR a decrease in Non Current liabilities BUT does not affect owners equity • Capital expenditure also includes the costs involved in getting the asset delivered, installed, operational and improvements to an assets which will increase its expected useful life • E.g. purchase of a new delivery van, repayment on principal of a loan, sign writing on a delivery van, staff training on a new machine • Capital expenditure affects the Balance Sheet

Revenue expenditure –

• Expenditure that will benefit the business for the current financial year. • Revenue expenditure is the recurring costs incurred to earn income, and will affect the net profit and owner’s equity. It is the day-to-day expenses. • E.g. petrol insurance, repairs, printer paper, wages • Revenue expenditure affects the Income Statement

Depreciation is a measure of the loss of future service potential in a fixed asset during an accounting period.

• It is calculated by allocating (spreading) the cost of an asset over its estimated useful lifetime. Fixed assets lose the ability to produce revenue for the business in the future and this loss in service potential must be recorded in the period it occurs • Depreciation for the year is recorded as an expense in the Income Statement and is added to the Accumulated Depreciation which is a running total of the amount depreciated so far on the asset, in the Balance Sheet • Depreciation is NOT a way to value assets, but a way of recording the loss of the value of an asset over its useful lifetime. If this loss was not recorded then assets would be overstated in the financial statements. • There are 3 ways to measure depreciation: