Accountant

- Analyze the tax

- read and write the financial record
- keep record of the financial record
Work for non-governmental organization, football club, business, and anywhere.

5 aspect of accounting:
P lan process
R ecord = design record financial data
A nalyze
I nterprete = describe and explain
R eport = to government, chairholder, etc.

summarize the result of

Accounting system = PRAIR
Accounting records are sources of information. Accountant record and report financial
information in financial records and reports.
- reciepts for sales : till rolls
- payroll : clock card, pay slip
- invoices for expenses : for supplies
Report will analyze and summarize the basic records for a period of time. = give more
information
Record are just information.

Accounting report
- Sales : daily, monthly, yearly
patroll
- monthly
Inventory
- daily, monthly, yearly
Income statement
Balance sheet

CPO want to know the accounting information

- business owners (franchisee)
- store manager
- accountant
- supliers
- customers
- bank managers
- staff
Net Worth asset
- The equity of person
A net worth statement shows the difference between personal assets and personal liabilities
of a person on a specific date, know as personal net worth.

What is asset?
- Anything of value that is owned.
Liability
- An amount owed.
Equity
- The difference between assets and liabilities in a business.
- Also called owners equity or stockholders equity
Assets - liabilities = equity(net worth)

Net Worth Statement

- Net Worth Statement is a statement of the financial position of a person on a specific
date.
- We use a net worth statement when asking for a loan from a bank or applying for a
credit card.
- Personal net worth is the difference between personal assets and personal liabilities.
Equity/ owner’s equity
- The difference between assets and liabilities in a business is called equity.
- The amount remaining after the value of all liabilities is subtracted from the value of
all assets.
- what the owner owns
- what the owner has a right to
Legally the rights to own the assets of a business are called equities.

Transaction on Account
- buy goods or services and not pay cash = paying on account = pay later
- Most business transactions in the real world are on account.
- A person or business to whom a liability is owed is called a creditor.

Service business : A business that performs an activity for a fee. (ie. landscapers, salons,
babysitters, or providers of media services.)
Proprietorship : A business owned by one person. The owner is legally responsible for all
depts, taxes, and losses; therefore, the unlimited liability is a disadvantage. Also called sole
proprietorship.
Business plan : A formal written document that describe the nature of a business and how it
operates.

Legally the rights to own the assets of a business = equities.

Assets = Liabilities + Owner’s Equity -> Accounting Equation

If you buy goods or services and not pay cash then = pay on account (pay later)
Most business transactions in the real world

creditor = เจา้ หนี้ A person or business to whom a liability is owed.

Debter = คนติดหนี้

Financial Statement - Financial reports that summarize the overall financial condition and
operations of a business are called financial statement.
- Income statement/ statement of income
- Balance sheet/ statement of financial position (SOFP)
- Statement of Cash Flows(SoCF)
- Statement of changes in Stockholders Equity(SoCSE)
Condition
= values of the company
= health
= asset, liabilities, equity
Operation
- fitness
- performance
- profit, efficiency
Revenue : The increase in equity from the sale of good or services. (ie. cash received for
sales, assets+owner’s equity both increase)
Expense : the cost of goods or services used to operate a business(not like liability which is
an amount that is owed. ie. rent, electricity, telephone, advertising). There’s no asset so not
like supplies.
Asset taken from the business for

Savings : Usually in a bank or other financial institution.

Interest :
Increasing saving money in account : get higher interest, larger amount, longer period
Rule 72 way to see the power of compound interest (72/…%). It also allows us to calculate
for the debt, determined how long it will take the debt to double.

Ethics : Organised principles of right and wrong that guide an individuals’ conduct, behavior
and decision making (help you make moral decisions). Increase your chances of achieving
professional success, not only in accounting but in any area you choose. (Unethical
business : cassino)
Personal Ethics : The use of ethical principles to make decisions that consider the impact of
your actions on others as well as yourself and guide you to make ethical decision.
Business Ethics : The use of ethics in making business decisions.
Why people behave unethically?
- Excessive emphasis on profitss - salaries are often based on profit.
- Misplaced business loyalty - making decisions that appear to benefit the business
without considering the negative impact on others.
- Unethical business environment - the ethical environment set by business managers
influences the ethical behavior of everyone in the business.
 - Unwillingness to take a stad - how often have you seen something wrong but not
taken any action to correct it.
- The pursuit of success can motivate some individuals to overlook their principles of
right.
Unit of Measurement concept : All transactions in the Financial Statements must be
recorded using the same currency.

- Keeping personal and business records separate is an application of the Business

Entity concept. = True
- The difference btw asset and liabilities. = Equity
- The amount remaining after the value of all liabilities is subtracted the value of all
assets. = Owner equity

GAAP = unit of measurement

T account - An accounting device used to analyze transactions. (ie. net worth statement)
accounts payable -
Chart of Accounts - List of accounts used by a business.
Normal balance - The side of the account that is increased.

Primary Function
- normal balance
- Debit (Dr.) = enter an amount on the ​left side​ of the account.
- Has nothing to do w/ plastic card
- It does not mean less or more money
- ​decrease a liability or equity account
- ​increases the asset, expense, and drawing account
- Credit (Cr.) = enter an amount on the ​right side​ of the account.
- It does not mean you owe more or less
- ​increases a liability or equity account
- ​decreases the asset, expense, and drawing account

Every business transaction affects at least 2 account. For every transaction, you must debit
at least one account and credit at least one account. - cash and communication expense

2 accounting rules that explain increases of account bakances

- Asset are on the left side of the accounting equation. Therefore, asset increase on
the left, or debit, side of the account.
- Liabilities and the owner’s capital account are on the right side of the accounting
equation. Therefore, liabilities and the owner’s capital account increase on the right,
or credit, side of the account.
Account payable - liability
account receivable - someone owed us money

Debit DEAD - when recalling the account that are increase with a debit
D = Debit
E = Expense
A = Asset
D = Drawing

Credit CLIC - recalling the accounts that are increased with a credit
C = Credit
L = Liabilities
I = Income
C = Capital

Business entity concept

- A business is a seperate legal entity of its owner.
- 2nd accounting we record the transaction of the business, not the owner
- If the owner invests(withdraw) assets from the business uses record the impact on
the business only.
Keep financial information
- to protect asset
- to claim tax deduction and grants from small business
- to look professional