Welcome to our

presentation
Trần Thị Phương Thanh
Cù Thị Quỳnh Trang
Phùng Thị Kim
Main topic: Accounting and financial statements

I. Accounting
1. Financial Accounting
2. Managerial Accounting
3. Cost Accounting
II. Financial statements.
1. Balance sheet
2. Income statement
3. Cash flow statement
1. What is of accounting?
● Accounting is the process of recording
financial transactions pertaining to a
business. The accounting process
includes summarizing, analyzing, and
reporting these transactions to
oversight agencies, regulators, and tax
.collection entities
Types of Accounting

Accounting

Financial Managerial
Cost Accounting
Accounting Accounting
 1.1 Financial Accounting
• Financial accounting refers to the processes
used to generate interim and annual financial
statements.
• The results of all financial transactions that
occur during an accounting period are
summarized into the balance sheet, income
statement, and cash flow statement
• For some, such as publicly traded
companies, audits are a legal requirement.

• Lenders also typically require the results of

an external audit annually as part of their
debt covenants.
1.2 Managerial Accounting
• Managerial Accounting uses much of
the same data as financial
accounting, but it organizes and utilizes
information in different ways.
• In managerial accounting, an accountant
generates monthly or quarterly reports
that a business's management team can
use to make decisions about how the
business operates.
• Managerial accounting also including
budgeting, forecasting, and various
financial analysis tools.
 1.3 Cost Accounting
● Cost accounting helps businesses
make decisions about costing.
● Cost accounting considers all of the
costs related to producing a product.
Analysts, managers, business owners,
and accountants use this information to
determine what their products should
cost.
● In cost accounting, money is cast as
an economic factor in production.
 What Skills Are
Required for
Accounting?
• Attention to detail: since
accountants must be able to
diagnose and correct subtle errors
or discrepancies in a company’s
accounts.
• The ability to think: help with
problem-solving.
• Mathematical skills
 2
Financial Statement

• Financial statements are written records

that convey the business activities and
the financial performance of a company.
• Financial statements are often audited by
government agencies, accountants, firms,
etc. to ensure accuracy and for tax,
financing, or investing purposes. 
What are the
Three Financial
Statements?
Income Statement : used for reporting a company's
financial performance over a specific accounting period.

Key features :

+Provides an overview of revenues, expenses, net

income and earnings per share.
+ Expressed over a period of time. It usually provides 1
quarter or 1 year of data for comparison.
+ Net income= Revenue- Expenses
+ Uses accounting principles such
as matching and accruals to represent figures (not
presented on a cash basis)
+ Used to convey details of profitability and the
financial results of business activities.
 Balance Sheet : showing the value of a business's assets,
its liabilities, and its capital or shareholders' equity (money
the business has that belongs to its owners)

Key features :
• Show how assets are funded, either with
liabilities (debt), or stockholders' equity,
(retained earnings and additional paid-in
capital). Assets are listed on the balance sheet
in order of liquidity.
• Expressed as a “snapshot” or financial picture
of the company at a specified point in time
• Has three sections: assets, liabilities, and
shareholders equity
• Assets = Liabilities + Shareholders Equity
Cash flow statement : measures how well a company generates cash
to pay its debt obligations, fund its operating expenses, and fund
investments.
Key features :
+ Shows the net change in the cash balance from start to end of
the period
+ Expressed over a period of time, an accounting period
+Allows investors to understand how a company's operations
are running, where its money is coming from, and how money
is being spent.
+ Provides insight as to whether a company is on a solid
financial footing.
+ Has three sections: Cash from Operations, Cash from
Investing, and Cash from Financing
Thanks!