New Understanding of Accounting Issue 1
Preface
I took an accounting class today and gained a lot. I am especially fortunate that I wrote the " Executive Summary Notes " last week . I was able to keep the knowledge coherent in the class today. Link the assets, liabilities, owner's equity discussed in Chapter 2 with the balance sheet and income statement of the basic business accounting of enterprises in Chapter 2.
In fact, when I was listening to the second class of accounting , I found that my knowledge of accounting was fragmentary. What the teacher says cannot be well integrated into one's own knowledge system to understand. So I decided to pave the foundation for later learning.
Sigh
In writing the " Second Degree Business Administration Teaching Plan ", I felt that universities are really treasures everywhere, but I can't see them in my university. It was not until I stepped into society that I discovered that universities have greatly improved people.
When I was working in Shenzhen, my monthly rent was 1,500, plus water and electricity, it cost about 1,800; while the school only needed 700 per semester;
When working in Shenzhen, every meal starts at ten yuan, and the taste is average, and you can eat delicious dishes for five yuan at school;
These are just differences in food and accommodation, as well as differences in personal growth.
When I was working in Shenzhen, I worked eight hours a day, and the rest of the time was self-study. I think the self-study ability is fine. But self-study and teachers teach, the efficiency effect is very huge.
When I was in college, I thought I could master a course quickly. Many courses in universities were mastered within two weeks at the end of the semester. In fact, it was because the teacher did a good job PPT and the teacher spoke well, and I was just a receiver of information. . University teachers are all kinds of PhDs. They stand better, see farther, and speak more sharply, so I can master them quickly. But at work, for example, if I don't touch the front end, what should I do? To go to a training institution, you need to pay 20,000 yuan first, but the effect is average; watching the video by yourself, you have to pay attention to whether it is out of date and what tools you use; and the quality of the video is uneven. The road to self-study is to step on the pit and step on all the pits. When it's over, it's getting started.
In addition to learning, there is also learning and communication.
At work is work, dealing with problems. Communication is limited to three or four people; in school, it is focused on learning. Various doctors will give you lectures and answer knowledge; various scholars express their own opinions;
The working platform is the company, there are big and small, the school is a big platform with tens of thousands of people, we can not only learn, but also use this platform to show ourselves.
But I didn't know so deeply in my four years of university, so I missed many opportunities. There is still such an opportunity now, I take it well and cherish it. However, I am also grateful to the four years of university. I have improved a lot during the four years of university.
Accidentally sighed with emotion. Closer to home, continue to talk about the new understanding of accounting.
New understanding of accounting
Today's content is accounting elements and accounting equations.
Accounting elements
Accounting object: the content of accounting and supervision by the accounting office. Economic activity in the form of currency.
Confirmation of accounting elements: financial status (assets, liabilities, owner's equity), operating results (income, expenses, profit)
Measurement: historical cost (actual cost), replacement cost, net variability, value, fair value
Accounting equation
- Assets = Liabilities + Owners' Equity
- Revenue-Expense = Profit
But the teacher extended a lot in the classroom.
Assets: According to liquidity, it is divided into current assets and non-current assets.
Liabilities: According to the length of repayment period, it can be divided into current liabilities and long-term liabilities. Liabilities can be paid before income tax. In other words, interest is tax deductible;
The interest on liabilities is paid before tax, so you can pay less tax;
Owner’s equity: Residual equity, also known as shareholder’s equity; capital can only be refunded unless the company goes bankrupt and liquidated; it is paid after income tax;
Identity: Assets = Liabilities + Owners' Equity;
A lot of understanding, I still can't express it in words, I try to list the keywords. If you want to increase assets, you can increase liabilities and owner's equity; help raise funds quickly;
Expand the equation: assets + expenses = liabilities + owner's equity + income
On the left is where the money goes, whether it has increased assets or wasted costs;
On the right is where the money comes from, which can be obtained through debt, listing, and asset generation;
Most of the original money is the income generated by own assets; the risk is low, but it comes slowly; after the emergence of banks, they can borrow money from major customers to quickly increase assets and accelerate income. Later, with the stock market, they can borrow money from retail investors. Increase assets quickly.
During economic crises, companies often go bankrupt. Part of the reason is that the left and right sides were originally equal, but the economy was not good, the goods could not be sold, the assets shrank, and finally the assets became insolvent and went bankrupt;
The teacher also said that an accountant's financial report has only appeared in a hundred years. I think it’s very important. More than a hundred years ago, there were no financial statements that were kept by the accountant himself for the treasurer. Then the teacher said that the emergence of financial statements is because companies can attract funds through financial statements. I seem to get it all at once.
In other words, the double-entry bookkeeping method in 1494 is for bookkeeping and is for the boss to see.
Until a hundred years ago, when the financial statement appeared, the company took out the profit statement of the financial statement and said to the big capitalist that by borrowing some money, our company makes a lot of money. If we invest some money, we can pay it back. The big capitalist took a look, oops, not bad. ,Voted;
In fact, I have always wondered why the accounting should be made public, is it for tax payment. Now I find that financial statements can also be used as a way of publicity.
Of course there are pros and cons, so those who derive fraudulent accounts also derive accounting firms for fraudulent accounts.
The teacher said that accounting was mentioned again, saying that accounting is an information processing center for information users to improve information. Financial statements are mainly shown to two types of people, one is investors and the other is creditors. Investors look at the profit statement, and if the profit is large, they will invest in this company; creditors look at the balance sheet, assets are greater than liabilities, indicating that money is needed;
All of a sudden, I felt I grasped what accounting does. There were seven or eight points listed in the book before, and I always felt confused, but now I understand it all at once.
Have the opportunity to look at the financial reports of CSDN, Bilibili, Ali, Tencent, Baidu, ByteDance, Meituan, Didi, etc.;
When the teacher mentioned assets, he also said that assets are divided into tangible assets and intangible assets. The current accounting is not easy to quantify intangible assets. Because the definition of accounting is the main body of economic activities that can be expressed in currency. For example, intellectual property rights and patents are not easy to quantify.
I suddenly thought that society is progressing. No knowledge is immutable. A lot of knowledge has the same essence, but the outer shell is changing. It remains to be seen how accounting will develop in the future.
Look at data analysis from an accounting perspective
Although I work on the front-end, front-end visualization also works with data analysis. The front end can present the financial statements of various companies with data.
Wrote this for the time being today. Take a lunch break.
Update address: GitHub
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