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Group 11

Mita Laras wati

 Accounting is the process of recording,
classifying, summary, reporting, and
analyzing financial data of an Organization or
 Each accounting information system will implement the
five main functions are:
 a. Collect and store data from all company activities
and transactions
 b. Processing data into useful information
 c. Manage the existing data into groups that have been
set by the company.
 d. Controlling enough data control so that assets of an
organization or company are maintained. The
information producer provides enough information for
the management to do the planning, execute the
planning and control the activity.
Accounting Information (Financial Statements)
can be useful to the wearer if it is prepared and
reported objectively. For accounting information
is objective it must meet the qualitative
characteristics, which is the characteristic that
makes the information in the financial
statements useful for the users. There are four
characteristics of Accounting:
 1. Understandable
 2. Relevant
 3. Reliability (reliable)
 4. Can be compared
There are several types of accounting that range from auditing to the
preparation of tax returns. Accountants tend to specialize in one of
these fields, which leads to the different career tracks noted below :
1. Financial accounting. This field is concerned with the aggregation
of financial information into external reports. Financial accounting
requires detailed knowledge of the accounting framework used by the
reader of a company's financial statements, such as Generally
Accepted Accounting Principles (GAAP) or International Financial
Reporting Standards (IFRS).
2. Public accounting. This field investigates the financial statements
and supporting accounting systems of client companies, to provide
assurance that the financial statements assembled by clients fairly
present their financial results and position. This field requires
excellent knowledge of the relevant accounting framework, as well as
an inquiring personality that can delve into client systems as needed.
The career track here is to progress through various audit staff
positions to become an audit partner.
3. Government accounting. This field uses a unique
accounting framework to create and manage funds,
from which cash is disbursed to pay for a number of
expenditures related to the provision of services by a
government entity. Government accounting requires
such a different skill set that accountants tend to
specialize within this area for their entire careers.
4. Forensic accounting. This field involves the
reconstruction of financial information when a
complete set of financial records is not available.
This skill set can be used to reconstruct the records
of a destroyed business, to reconstruct fraudulent
records, to convert cash-basis accounting records to
accrual basis, and so forth. This career tends to
attract auditors. It is usually a consulting position,
since few businesses require the services of a full-
time forensic accountant. Those in this field are more
likely to be involved in the insurance industry, legal
support, or within a specialty practice of an audit
5. Management accounting. This field is concerned with
the process of accumulating accounting information for
internal operational reporting. It includes such areas as
cost accounting and target costing. A career track in this
area can eventually lead to the controller position, or
can diverge into a number of specialty positions, such as
cost accountant, billing clerk, payables clerk, and
payroll clerk.
6. Tax accounting. This field is concerned with the proper
compliance with tax regulations, tax filings, and tax
planning to reduce a company's tax burden in the future.
There are multiple tax specialties, tracking toward the
tax manager position.
7. Internal auditing. This field is concerned with the
examination of a company's systems and transactions to
spot control weaknesses, fraud, waste, and
mismanagement, and the reporting of these findings to
management. The career track progresses from various
internal auditor positions to the manager of internal
audit. There are specialties available, such as the
information systems auditor and the environmental
 The Financial Statement is a list of the final
summary of financial transactions showing all
the company's operational activities and
their consequences. These financial
statements consist of Balance Sheet, Income
Statement, Capital Change Report.
The most important in accounting statements of ownership liability are the Balance
Sheet and Income statement. This report is very important, but no less useful one
more report called the capital statement.
1. Income statement (Statement of Profit / Loss) It is a summary of revenues and
expenses (costs) from a single entity for a specified period of time, eg one month or
one year.
• Revenues are grouped by:
- operating income is revenue derived from business activities.
- - non-operating income is income that is not from the core of its business.
• Expenses (costs) are grouped by:
- - operating costs
- - non-operational costs
2. Balance sheet (Balance Sheet) A list containing the assets (assets), liabilities and
capital of an entity at a given time generally closed on the last day of each month.
- Assets are grouped according to the dimensions or timing of current assets and non-
current assets. Assets may be classified as well as tangible assets, Intangible Assets,
and Other Assets
- Liabilities consist of current liabilities and non-current liabilities.
- Capital
3. Capital statement (Change of Capital Statement)
Contains a summary of changes in capital of a single
entity within a given timeframe, for example, a
month or a year. The capital change report describes
the change in owner's capital which contains initial
capital, net profit / loss, prive. Other reports are
often called funds statements that are called
Statement of changes in Financial position which are
also useful for the benefit of the company. This
report is important so that in recent years it tends to
be presented as part of the Financial Statement. All
presentation of financial statements should clearly
- Name of owner / company.
- The name of the report.
- Date or period.
 1. Statement of Financial Position
 Statement of Financial Position, also known as the
Balance Sheet, presents the financial position of an
entity at a given date. It is comprised of the following
three elements:
 Assets: Something a business owns or controls (e.g.
cash, inventory, plant and machinery, etc)
 Liabilities: Something a business owes to someone (e.g.
creditors, bank loans, etc)
 Equity: What the business owes to its owners. This
represents the amount of capital that remains in the
business after its assets are used to pay off its
outstanding liabilities. Equity therefore represents the
difference between the assets and liabilities.
2. Income Statement
Income Statement, also known as the Profit and Loss Statement,
reports the company's financial performance in terms of net
profit or loss over a specified period. Income Statement is
composed of the following two elements:
a. Income: What the business has earned over a period (e.g. sales
revenue, dividend income, etc)
b. Expense: The cost incurred by the business over a period (e.g.
salaries and wages, depreciation, rental charges, etc)
c Net profit or loss is arrived by deducting expenses from income.

3. Cash Flow Statement

Cash Flow Statement, presents the movement in cash and bank
balances over a period. The movement in cash flows is classified
into the following segments:
a. Operating Activities: Represents the cash flow from primary
activities of a business.
b. Investing Activities: Represents cash flow from the purchase
and sale of assets other than inventories (e.g. purchase of a
factory plant)
c. Financing Activities: Represents cash flow generated or spent
on raising and repaying share capital and debt together with the
payments of interest and dividends.
4. Statement of Changes in Equity
Statement of Changes in Equity, also known as
the Statement of Retained Earnings, details the
movement in owners' equity over a period. The
movement in owners' equity is derived from the
following components:
a. Net Profit or loss during the period as
reported in the income statement
b. Share capital issued or repaid during the
c. Dividend payments
d. Gains or losses recognized directly in equity
(e.g. revaluation surpluses)
e. Effects of a change in accounting policy or
correction of accounting error