What basic accounting knowledge must financial personnel master?

As a company’s financial personnel, you must have some skills and financial knowledge. The following is a summary of the knowledge that I have compiled for financial positions. You are welcome to refer to it.

1. Book value, book balance and net book value

Book value refers to the net amount of the book balance of a certain account (usually an asset account) minus related allowance items. .

The book balance refers to the actual book balance of a certain account, without deducting items used as allowances for the account.

Net book value refers to the depreciation value of fixed assets = original price of fixed assets - accumulated depreciation accrued (without deducting the amount of impairment reserves)

For example: January 18, 2008 Inner Mongolia Antai Group Co., Ltd. purchased a set of chemical reaction equipment as a fixed asset with a value of 20 million yuan. The accumulated depreciation in 2009 was 1 million yuan, and the asset impairment provision was 2 million yuan. Could you please tell me the book value and accounts of this fixed asset at the end of 2009. What are the balance and net book value respectively?

Answer

Book value = 2000100200 = 1700

Book balance = 200000 = 2000

Book value Net value = 2000100 = 1900

2. Physical inventory system and perpetual inventory system

The perpetual inventory system is also called the book inventory system. It refers to an inventory method in which the increase or decrease in various physical properties must be registered in the relevant account books day by day based on accounting vouchers, and the book balances must be settled at any time. Using this inventory method, it is necessary to set up detailed accounts in quantity and amount format according to the items of physical property and record them in detail, so as to reflect the income, issuance and balance of each physical property in a timely manner. Its advantages: it is conducive to strengthening the management of physical property; its disadvantages: the daily workload is large.

The physical inventory system is also called the periodic inventory system, also called the inventory-based accounting system or the dependence-based consumption accounting system. It refers to an inventory method that usually only registers the increase of various physical properties in the account book records, and does not register the decrease. At the end of the period, the physical inventory is used to determine the actual number, and based on this, the decrease in the physical property of the current period is calculated. The calculation formula is as follows:

Decrease in the current period = Balance at the beginning of the period Increase in the current period - Actual balance at the end of the period. Advantages: The physical inventory system can simplify daily work. Disadvantages: It cannot reflect the distribution and balance of inventory property and materials at any time, and it is not conducive to strengthening the management of property and materials.

3. Accounts receivable and other receivables

To put it simply, accounts receivable is the accounting of credit sales related to the main business income, while other receivables are Account for transactions unrelated to its main business. For example: the credit sales of hotel customers are included in accounts receivable, and the deposits paid to tobacco and alcohol companies should be included in other receivables; the credit sales of design institute services are included in accounts receivable, and the compensation from insurance companies that should be collected should be included in other receivables. It should be included in other receivables. In fact, the essence of the difference between the two depends on whether it is the main business of the enterprise.

4. Capital premium and equity premium

Capital premium refers to the amount of capital invested by investors in an enterprise that exceeds its registered capital during the process of raising funds. It refers to the amount of capital contribution delivered by the investors of a limited liability company that is greater than the proportion of capital contribution stipulated in the contract or agreement.

Equity premium refers to the amount of money actually received by a joint-stock company when it issues shares at a premium that exceeds the total face value of the shares.

5. Retained earnings and residual earnings

Retained earnings is a historical concept, which refers to the accumulation that is extracted or retained within the enterprise from the net profits realized over the years. According to the provisions of the "Company Law" and the "Enterprise Accounting System": When an enterprise distributes after-tax profits in accordance with the company's articles of association, it shall, on the one hand, withdraw the surplus reserve in accordance with the provisions of the law and retain the profits realized in the year in the enterprise to form internal accumulation. Become a component of retained earnings; on the other hand, distribute profits or dividends to investors, and the remainder after distributing profits or dividends is regarded as undistributed profits and is reserved for distribution in subsequent years. This part also becomes an integral part of the company's retained earnings.

Residual income (also known as economic profit) refers to the difference between the accounting profit for a certain period and the capital cost for that period. It is the income created by the enterprise that is higher than the average market return.

From an economic perspective, residual income is a measure of the excess of profit generated from invested capital over capital cost. The formula is as follows: residual income = accounting profit - capital cost = invested capital * (capital cost rate of return on invested capital). The formula clearly shows that residual income is the premium of accounting profits over the opportunity cost of invested capital.

It can be seen from the meanings of the two that retained earnings are a distribution of corporate operating results under the accounting value distribution theory system, a state of capital possession; while residual earnings are a distribution of business results under the economic value distribution theory system. Under the creation theoretical system, it reflects a kind of net surplus of the enterprise and a kind of net flow of future cash. It can be seen from this that retained earnings contain a kind of accumulated value and are in the past tense; while residual income embodies a kind of recreated value and is in the future tense.

An enterprise’s financial personnel are the treasurers of enterprise funds and actively participate in business management to improve economic efficiency. Some people say that corporate financial personnel only need to do seven main things, namely, calculate accounts well, manage money well, manage relationships well, monitor assets, manage credit well, be a good consultant, and plan performance well. So what accounting knowledge should financial personnel master? Let me reveal it to you below.

6. Main business income and other business income

These two concepts are two subjects that are difficult to understand when starting accounting. In fact, we don’t need to read those boring topics in books. The definition can be understood from the literal meaning. The main business refers to the main source of income of your company, which is the business that makes money. For example: a steel company earns income by selling steel, a pharmaceutical company earns income by buying medicine, and wholesale goods. Income is obtained by selling goods, but some companies will produce some scraps, some waste materials, and some by-products of very small value during the production process. These are not the main business income of the company, but other accompanying income, that is to say It is far from the main business. Generally speaking, these incomes are included in other business income.

7. Bank acceptance bill and commercial acceptance bill

A commercial acceptance bill is issued by the drawer and promises to pay the amount of the bill on the maturity date.

A bank acceptance bill refers to the bank's commitment to pay the amount of the bill on the maturity date.

The biggest difference between the two is that the entities that promise to pay on the maturity date are different. One is an enterprise and the other is a bank. Therefore, the security of bank acceptance bills is higher than that of ordinary enterprises’ commercial credit. At present, our country still uses Bank acceptance bills are mainly used, but some listed companies with good credit standing also issue commercial acceptance bills.

8. Profit expenditures and capital expenditures

Profit expenditures are different from capital expenditures. The former are all compensated by the operating income of the year, while the latter are first recorded as assets and are calculated through calculation. Depreciation or amortization is divided into annual costs and expenses. The purpose of distinguishing between revenue expenditures and capital expenditures is to correctly calculate profits and losses in each year and to correctly reflect the value of assets. Capital expenditures refer to expenditures with a beneficial period of more than one year or one operating cycle, that is, the expenditures are incurred not only to obtain capital. Income expenditure refers to the expenditure with a benefit period of no more than one year or one operating cycle, that is, the expenditure is incurred only to obtain the income of the current period; capital expenditure refers to the expenditure that is It’s not just about getting current profits.

9. Commercial discounts and cash discounts

Commercial discounts refer to price deductions given by the seller to the buyer based on the original price of the product price list in order to promote sales. The tax law stipulates that if the sales volume and the discount amount are stated separately on the same invoice, the value-added tax can be levied on the discounted sales volume; if the discount amount is separately invoiced, no matter how it is handled financially, it shall not be deducted from the sales amount. The discount amount is deducted from the amount. Since this kind of discount occurs at the same time when the sale is realized, both the buyer and the seller close the transaction at the price after deducting the commercial discount, so there is no need for separate accounting treatment. And because the invoice price is the actual selling price after deducting commercial discounts, the output tax can be calculated based on the invoice price.

Cash discount refers to a debt deduction that the seller promises to give to the buyer according to the agreement in order to encourage the buyer to repay the payment as early as possible when selling goods or providing services on credit. Cash discount occurs after the goods are sold and is a financial management expense of a financing nature. Therefore, when calculating output tax, cash discount cannot be deducted from sales.

10. Registered capital and paid-in capital

Registered capital is the capital raised when the company is established, stated in the articles of association, and registered with the company registration authority. It is the capital recognized by shareholders. The amount of capital paid or subscribed. Paid-in capital is the total capital contribution actually received from shareholders when the company was established, and is the capital actually owned by the company. Since after a company subscribes for shares, it can pay them all at once or in installments, so the paid-in capital may be less than the registered capital for a certain period of time, but the company's registered capital and paid-in capital should eventually be consistent.

11. Accounting method

Registered capital is the capital raised when the company is established, stated in the articles of association, and registered with the company registration authority. It is the capital subscribed or subscribed by shareholders. amount of investment. Paid-in capital is the total capital contribution actually received from shareholders when the company was established, and is the capital actually owned by the company. Since after a company subscribes for shares, it can pay them all at once or in installments, so the paid-in capital may be less than the registered capital for a certain period of time, but the company's registered capital and paid-in capital should eventually be consistent.

(1) Setting up accounts

Setting up accounts is a specialized method for classifying and supervising the specific contents of accounting. Since the specific contents of accounting objects are complex and diverse, in order to systematically calculate and regularly supervise them, it is necessary to scientifically classify economic businesses so that they can be recorded in categories and continuously, so as to obtain a variety of different properties and conform to the requirements. Information and indicators required for operation and management.

(2) Double-entry accounting

Double-entry accounting refers to the equal amount of each economic business that occurs, and the two or more mutually related accounts at the same time. A method of accounting that is registered in an account. The double-entry accounting method can comprehensively reflect the ins and outs of each economic transaction, and can prevent errors and facilitate checking the correctness and completeness of account book records. It is a relatively scientific accounting method.

(3) Filling in and reviewing vouchers

Accounting vouchers are written certificates that record economic business, clarify economic responsibilities, and serve as the basis for accounting. Correctly filling in and reviewing accounting vouchers is the basis for accounting and supervising the financial revenue and expenditure of economic activities, and is the prerequisite for good accounting work.

(4) Registered accounting books

Registered accounting books are referred to as accounting. They are classified in the account books based on the audited and correct accounting vouchers, and continuously and completely record various economic items. business, in order to provide complete and systematic records of various economic businesses for economic management, in order to provide complete and systematic accounting information for economic management. Account book records are important accounting information and an important basis for accounting analysis and accounting inspection.

(5) Cost calculation

Cost calculation is to collect and allocate various expenses incurred in the production and operation process according to certain objects in order to determine the total cost and unit cost of each object. a specialized method. Product cost is an important indicator that comprehensively reflects the production and operation activities of an enterprise. Correct cost calculation can assess the level of expenses in the production and operation process, and is also the basis for determining corporate profits and losses and formulating product prices. And provide important data for enterprises to make business decisions.

(6) Property Inventory

Property inventory refers to a specialized method of ascertaining the actual amount of various property materials by counting physical objects and checking accounts. Through property inventory, the accuracy of accounting records can be improved to ensure that the account facts are consistent. At the same time, you can also find out the storage and use of various properties and materials and the implementation of various settlement payments, so that timely measures can be taken to clean up and strengthen the management of property and materials for backlogged or damaged materials and overdue payments. management.

(7) Preparation of accounting statements

Preparation of accounting statements is a specialized method that regularly and comprehensively reflects the economic activities and results of enterprises and administrative institutions in the form of specific tables. method. Accounting statements are mainly based on the records in the account books. After certain forms of processing and sorting, they produce a complete set of accounting indicators, which are used to assess and analyze the implementation of financial plans and budgets, and as an important basis for preparing the next period's finances and budgets.

Although the above seven accounting methods each have specific meanings and functions, they are not independent, but are interrelated, interdependent, and restrictive.

They constitute a complete method system. In accounting, these methods should be used correctly. Generally, after an economic business occurs, the vouchers are filled in and reviewed according to the prescribed procedures, and registered in the relevant account books using the double-entry accounting method; at the end of a certain period, the costs incurred during the production and operation process are also costed and property inventories are carried out. On the basis that the accounting certificates, accounts, and accounting facts are consistent, accounting statements are prepared based on the account book records.

The procedures for using these methods in conjunction with each other are:

1. After the economic business occurs, obtain and fill in the accounting vouchers;

2. Compare the accounting documents according to the accounting subjects Conduct classified accounting of economic business and use double-entry bookkeeping to register in relevant accounting books;

3. Cost calculation of various expenses in the production and operation process;

4. Verify the account book records through property inventory to ensure that the account facts are consistent;

5. At the end of the period, based on the account book records and other information, necessary processing calculations are made to prepare accounting statements.