ACCOUNTING AND FINANCIAL STATEMENTS

Taufan Anggi Brata &Agnesia Kharisma

THE NATURE OF ACCOUNTING

ACCOUNTING IS THE RECORDING MEASUREMENT, AND INTERPRETATION OF FINANCIAL INFORMATION.

TYPE OF ACCOUNTANT

PUBLIC ACCOUNTANTS PRIVATE ACCOUNTANTS

An Individual who has been state to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records.

Accountants employed by large corporation, goverment agencies, and other organizations to prepare and analyze their financial statements.

THE USE OF ACCOUNTING INFORMATION Internal uses• Managers in

Planning• Directing the

organizations activities

• Manage the cash flow, organization budget.

External uses Filing income taxes Obtaining credit from

lenders reporting results to

the firms stockholders.

Preparing the annual reports

THE ACCOUNTING CYCLE

Step one: examine Source DocumentsStep two: Records TransactionsStep Three: Post TransactionsStep Four: Prepare Financial Statements.

FINANCIAL STATEMENTS

Balance Sheet Income statements Stakeholders equity Cash flow

RATIO ANALYZE

Profitability ratios measures how much operating income or net income an organization is able to generate relative to its assets, owners equity, and sales. (masukin rumus)

Profit margin

Return on asset Return on Equity

RATIO ANALYZE

Assets Utilization Ratios measures how well firm uses its assets to generate each penny sales utilization ratios to pinpoint areas of inefficiency in their operations.

Receivables Turnover

Inventory receivables

Total Assets Turnover

RATIO ANALYZE

Liquidity Ratios compare current (short term) assets to current liabillities to indicate the speed with which a company can turn its assets into cash to meet debts as they fall due.

Current ratio Quick ratios

RATIO ANALYZE

Debt utilization ratios provide information about how much debt an organization is using relative to other sources of capital, such as owners equity

Debt to total assets

Time Interest earned ratio