Chapter 1

ACCOUNTING IN BUSINESS
(Service company)

TỔNG QUAN VỀ NGUYÊN LÝ KẾ TOÁN

TRONG DN DỊCH VỤ

© 2009 The McGraw-Hill Companies, Inc.,

All Rights Reserved
 Learning objectives
After this chapter, students should be able to :
•Understand the nature of accounting
information.
•Identify Assets, Liabilities and Equity. Explain
the accounting equation and analyze how
transactions impact the accounting equation
•Understand the four core Financial statements
 DEFINITION OF ACCOUNTING

Accounting

Identifying Phân loại

Select transactions and events

Recording Ghi chép

Input, measure and classify

Communicating Truyền đạt thông tin

Prepare, analyze and interpret

McGraw‐Hill/Irwin Slide 2
 USERS OF ACCOUNTING
INFORMATION

External Users Internal Users

•Lenders• Consumer Groups •Managers • Sales Staff

•Shareholders • External Auditors •Officers/Directors • Budget
•Governments • Customers •Internal
Officers Auditors• Controllers

McGraw‐Hill/Irwin Slide 3
 USERS OF ACCOUNTING
INFORMATION

External Users Internal Users

Managerial accounting (kế toán quản trị)

Financial accounting (Kế toán tài
provides information needs for internal
chính) provides external users with
decision makers.
financial statements.

McGraw‐Hill/Irwin Slide 4
 ETHICS - A KEY CONCEPT

Beliefs that Accepted standards

distinguish right from wrong of good and bad
from wrong behaviour

McGraw‐Hill/Irwin Slide 7
 PRINCIPLES AND ASSUMPTIONS
OF ACCOUNTING

Revenue Recognition Principle

Cost Principle – Historical cost
Nguyên tắc ghi nhận doanh thu Nguyên tắc giá gốc hay Giá vốn lịch sử
1. Recognize revenue when it is earned.
Accounting information is based on
2. Proceeds need not be in cash.
actual cost. Actual cost is
3. Measure revenue by cash received considered objective.
plus cash value of items received.

Matching Principle Full Disclosure Principle

Nguyên tắc phù hợp Nguyên tắc công khai
A company must record its expenses A company is required to report the
incurred to generate the revenue details behind financial statements
reported. that would impact users’ decisions.
McGraw‐Hill/Irwin Slide 11
 PRINCIPLES AND ASSUMPTIONS
OF ACCOUNTING

Now Future
Going-Concern Assumption Monetary Unit Assumption
Nguyên tắc tiếp tục hoạt động
Nguyên tắc Thước đo tiền tệ
Reflects assumption that the business Express transactions and events in
will continue operating instead of
being closed or sold. monetary, or money, units.

Business Entity Assumption

Time Period Assumption
Nguyên tắc thực thể kinh doanh
A business is accounted for Nguyên tắc kỳ kế toán
Presumes that the life of a company can
separately from other business
be divided into time periods, such as
entities, including its owner.
McGraw‐Hill/Irwin months and years. Slide 12
 ACCRUAL BASIS VS.CASH BASIS

CƠ SỞ KT DỒN TÍCH VÀ CƠ SỞ KT TIỀN MẶT

Accrual Basis Cash Basis
Cơ sở dồn tích Cơ sở tiền mặt
Revenues are
Revenues are
recognized when
recognized when
cash is received and
earned and expenses
expenses recorded
are recognized when
when cash is paid.
incurred. Not GAAP
Accounting

McGraw‐Hill/Irwin Slide 3
 THE ACCOUNTING EQUATION

PHƯƠNG TRÌNH CÂN BẰNG KẾ TOÁN

Accounting Equation

Assets = Liabilities + Owner Equity

Tài sản Vốn nợ Vốn chủ sở hữu

McGraw‐Hill/Irwin Slide 17
Classified Balance Sheet

Highly
Liquid

Less
Liquid
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900

Current assets are expected to be sold,

collected, or used within one year or the
company’s operating cycle.
Equipment $ 33,200
Buildings 170,000 203,200
Less accumulated depreciation 53,000 150,200
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 31
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments
Notes receivable 1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
Total investments 67,500

Long-term investments are expected to be held

for more than one year or the operating cycle.
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 32
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments

Tangible fixed assets are assets used

to produce or sell products and services.
Plant assets
Equipment $ 33,200
Buildings 170,000 203,200
Less accumulated depreciation 53,000 150,200
Land 73,200
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 33
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
ASSETS
Current assets
Cash $ 6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
Total current assets $ 42,900
Long-term investments
Notes receivable 1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
Total investments 67,500
Intangible fixed assets are long-term resources
used to produce or sell products and services
and that lack physical form.
Intangible assets 10,000
Total assets $ 343,800

McGraw‐Hill/Irwin Slide 34
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts payable $ 15,300
Wages payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000

Current liabilities are obligations due within the

longer of one year or the company’s operating
cycle.
Total liabilities and equity $ 343,800

McGraw‐Hill/Irwin Slide 35
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts payable $ 15,300
Wages payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000
Long-term liabilities:
Notes payable (net of current portion) 150,000

Long-term liabilities are obligations not due

within the longer of one year or the company’s
operating cycle.

McGraw‐Hill/Irwin Slide 36
 OWNER CAPITAL (OR EQUITY)
VỐN CHỦ SỞ HỮU

Owner’s
Claims on
Assets

Equity = ?

McGraw‐Hill/Irwin Slide 20
 Snowboarding Components
Balance Sheet (Partial)
January 31, 2009
LIABILITIES
Current liabilities
Accounts payable $ 15,300
Wages payable 3,200
Notes payable 3,000
Current portion of long-term liabilities 7,500
Total current liabilities $ 29,000
Long-term liabilities:
Notes payable (net of current portion) 150,000
Total liabilities $ 179,000
EQUITY
Owner Capital 164,800
Total liabilities and equity $ 343,800

Equity is the owner’s claim on the assets.

McGraw‐Hill/Irwin Slide 37
 CHART OF ACCOUNTS
TÀI KHOẢN KẾ TOÁN
The ledger is a collection of all accounts for an
information system. A company’s size and diversity
of operations affect the number of accounts needed.
The chart of accounts (hệ thống tài khoản) is a list of all
accounts and includes an identifying number for each account.
Account Number Account Name Accounting Number Accounting Name

McGraw‐Hill/Irwin Slide 10
 CHART OF ACCOUNTS
VÍ DỤ TÀI KHOẢN KẾ TOÁN QUỐC TẾ
Current Assets
(account numbers 10000 - 16999)
10100   Cash
10600   Petty Cash
12100   Accounts Receivable
13100   Inventory
14100   Supplies
15300   Prepaid Insurance
Property, Plant, Equipment
(account numbers 17000 - 18999)
17000   Land
17100   Buildings
17300   Equipment
17800   Vehicles
18100   Accumulated Depreciation -
Buildings
18300   Accumulated Depreciation -
Equipment
18800   Accumulated Depreciation –
Vehicles
 CHART OF ACCOUNTS
Current Liabilities Long-term Liabilities
(account numbers 20000 - 24999)
(account numbers 25000 - 26999)
20100   Notes Payable 25100   Loan Payable
21000   Accounts Payable 25600   Bonds Payable
22100   Wages Payable
24500   Unearned Revenues
Stockholders' Equity
(account numbers 27000 - 29999)
27100 Common Stock, No Par
27500 Retained Earnings
29500 Treasury Stock
CHART OF ACCOUNTS
• Operating Revenues (account numbers 30000 - 39999)
31010   Sales - Division #1, Product Line 010
31022   Sales - Division #1, Product Line 022
32015   Sales - Division #2, Product Line 015
33110   Sales - Division #3, Product Line 110
Cost of Goods Sold (account numbers 40000 - 49999)
41010   COGS - Division #1, Product Line 010
41022   COGS - Division #1, Product Line 022
42015   COGS - Division #2, Product Line 015
43110   COGS - Division #3, Product Line 110
CHART OF ACCOUNTS
Marketing Expenses (account numbers 50000 - 50999)
50100   Marketing Dept. Salaries
50150   Marketing Dept. Payroll Taxes
50200   Marketing Dept. Supplies
50600   Marketing Dept. Telephone
Payroll Dept. Expenses (account numbers 59000 - 59999)
59100   Payroll Dept. Salaries
59150   Payroll Dept. Payroll Taxes
59200   Payroll Dept. Supplies
59600   Payroll Dept. Telephone
Other (account numbers 90000 - 99999)
91800   Gain on Sale of Assets
96100   Loss on Sale of Assets
 TRANSACTION ANALYSIS

PHÂN TÍCH 1 GIAO DỊCH

The accounting equation MUST remain in
balance after each transaction.

Assets
= Liabilities + Equity

McGraw‐Hill/Irwin Slide 22
 TRANSACTION ANALYSIS

A company invests $30,000 cash to

start a consulting business .

McGraw‐Hill/Irwin Slide 23
 TRANSACTION ANALYSIS

A company invests $30,000 cash to

start a consulting business .

The accounts involved are:

(1) Cash
(2) Contributed Capital (C.C)

McGraw‐Hill/Irwin Slide 23
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

Assets = Liabilities + Equity

Accounts Notes C. Taylor

Cash Supplies Equipment Payable Payable Capital
(1) $ 30,000 $ 30,000

$ 30,000$ - $ - $ - $ - $ 30,000

$ 30,000 = $ 30,000

McGraw‐Hill/Irwin Slide 26
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

The accounts involved are:

(1) Cash (asset)
(2) Supplies (asset)

McGraw‐Hill/Irwin Slide 25
 TRANSACTION ANALYSIS

Purchased supplies paying $2,500 cash.

Assets = Liabilities + Equity

Accounts Notes C. Taylor

Cash Supplies Equipment Payable Payable Capital
(1) $ 30,000 $ 30,000
(2) (2,500)$ 2,500

$ 27,500$ 2,500$ - $ - $ - $ 30,000

$ 30,000 = $ 30,000

McGraw‐Hill/Irwin Slide 26
 TRANSACTION ANALYSIS

Purchased equipment for $26,000 cash.

The accounts involved are:

(1) Cash (asset)
(2) Equipment (asset)

McGraw‐Hill/Irwin Slide 27
 TRANSACTION ANALYSIS

Purchased equipment for $26,000 cash.

Assets = Liabilities + Equity
Accounts Notes C. Taylor
Cash Supplies Equipment Payable Payable Capital
(1) $ 30,000 $ 30,000
(2) (2,500)$ 2,500
(3) (26,000) $ 26,000

$ 1,500$ 2,500$ 26,000 $ - $ - $ 30,000

$30,000 = $30,000

McGraw‐Hill/Irwin Slide 28
 TRANSACTION ANALYSIS

Purchased Supplies of $7,100 and on account.

The accounts involved are:

(1) Supplies (asset)
(2) Accounts Payable (liability)

McGraw‐Hill/Irwin Slide 29
 TRANSACTION ANALYSIS

Purchased Supplies of $7,100 and on account.

Assets = Liabilities + Equity
Accounts C. Taylor
Cash Supplies Equipment Payable Notes Payable Capital
(1) $ 30,000 $ 30,000
(2) (2,500) $ 2,500
(3) (26,000) $ 26,000
(4) 7,100 $ 7,100

$ 1,500 $ 9,600 $ 26,000 $ 7,100 $ - $ 30,000

$ 37,100 = $ 37,100

McGraw‐Hill/Irwin Slide 30
 TRANSACTION ANALYSIS

Provided consulting services receiving $4,200

cash.

The accounts involved are:

(1) Cash (asset)
(2) Revenues (equity)

McGraw‐Hill/Irwin Slide 31
 TRANSACTION ANALYSIS

Provided consulting services receiving $4,200

cash.
Assets = Liabilities + Equity
Equipmen Accounts Notes C. Taylor
Cash Supplies t Payable Payable Capital Revenue
(1) $ 30,000 $ 30,000
(2) (2,500) $ 2,500
(3) (26,000) $ 26,000
(4) 7,100 $ 7,100
(5) 4,200 $ 4,200
$ 5,700 $ 9,600 $ 26,000 $ 7,100 $ - $ 30,000 $ 4,200

$ 41,300 = $ 41,300

McGraw‐Hill/Irwin Slide 32
 FINANCIAL STATEMENTS
BÁO CÁO TÀI CHÍNH

Let’s prepare the Financial Statements reflecting

the transactions we have recorded.

1.Income Statement
2.Notes for financial statements
3.Balance Sheet
4.Statement of Cash Flows

McGraw‐Hill/Irwin Slide 33
 INCOME STATEMENT
Báo cáo kết quả hoạt động kinh doanh của DN dịch vụ

FastForward
Income Statement
For Month Ended December 31, 2009

Revenues:
Consulting revenue $ 5,800
Net income is the
Rental revenue 300 difference between
Total revenues $ 6,100
Expenses: Revenues and
Rent expense 1,000
Salaries expense 700 Expenses.
Total expenses 1,700
Net income $ 4,400

The income statement describes a company’s revenues

and expenses along with the resulting net income or
loss over a period of time due to earnings activities.
McGraw‐Hill/Irwin Slide 34
 STATEMENT OF OWNER’S EQUITY
Báo cáo thay đổi trong vốn chủ sở hữu
FastForward
Income Statement
For Month Ended December 31, 2009 The net income of $4,400
Revenues:
Consulting revenue $ 5,800 increases Owner's Equity
Rental revenue
Total revenues
300
$ 6,100
by $4,400.
Expenses:
Rent expense 1,000
Salaries expense 700
Total expenses 1,700
Net income $ 4,400 FastForward
Statement of Owner's Equity
For Month Ended December 31, 2009
C, Taylor, Capital December 1, 2009 $ -
Plus: Investment by ower $ 30,000
Net income 4,400
34,400
Less: Withdrawals by owner 200
C. Taylor, Capital, December 31, 2009 $ 34,200

McGraw‐Hill/Irwin Slide 35
 BALANCE SHEET
Bảng cân đối kế toán
The Balance Sheet describes a company’s financial
position at a point in time.

FastForward
Balance Sheet
December 31, 2009

Assets Liabilities & Equity

Cash $ 4,800 Accounts payable $ 6,200
Supplies 9,600 Total liabilities 6,200
Equipment 26,000 Equity
C. Taylor, Capital 34,200
Total assets $ 40,400 Total liabilities and equity $ 40,400

McGraw‐Hill/Irwin Slide 36
 STATEMENT OF CASH FLOWS
Báo cáo lưu chuyển tiền tệ
FastForward
Statement of Cash Flows
For Month Ended December 31, 2009

Cash flows from operating activities:

Cash received from clients $ 6,100
Cash paid for supplies (3,400)
Cash paid for rent (1,000)
Cash paid to employees (700)
Net cash provided by operating activities $ 1,000
Cash flows from investing activities:
Purchase of equipment (26,000)
Net cash used in investing activities (26,000)
Cash flows from financing activities:
Investment by owner 30,000
Withdrawal by owner (200)
Net cash provided by financing activities 29,800
Net increase in cash $ 4,800
Cash balance, December 1, 2009 -
Cash balance, December 31, 2009 $ 4,800
McGraw‐Hill/Irwin Slide 37
 BUSINESS ACTIVITIES

PHÂN LOẠI HOẠT ĐỘNG KINH DOANH

There are three major types of activities in any organization:
1.Financing Activities – Hoạt động tài chính: Provide the means
organizations use to pay for resources such as land, buildings, and
equipment to carry out plans.

2.Investing Activities - Hoạt động đầu tư: Are the acquiring and
disposing of resources (assets) that an organization uses to acquire
and sell its products or services.

3.Operating Activities – Hoạt động kinh doanh: Involve using

resources to research,develop, and purchase, produce, distribute,
and market products and services.
McGraw‐Hill/Irwin Slide 39
 Qualitative Characteristics of Financial Statements
ĐẶC ĐIỂM CỦA THÔNG TIN KẾ TOÁN

– Understandability
– Relevance
– Reliability
– Comparability
Qualitative Characteristics of Financial Statements
ĐẶC ĐIỂM CỦA THÔNG TIN KẾ TOÁN
 END OF CHAPTER 1

McGraw‐Hill/ Slide 40