How Can We Learn Accounting To Achieve Twice The Result With Half The Effort?

How can we learn accounting to achieve twice the result with half the effort? We will provide you with the following ten Tips:

First, the concept and connotation of the six major elements of accounting are well known: assets, liabilities, owners' equity, income, expenses and profits. The concept helps us judge how new items are classified, and the connotation helps us judge how to deal with conventional matters.

These six elements can be divided into two groups: income, cost and profit are dynamic elements, which are considered in the profit table; assets, liabilities and owners' equity are static elements, which are considered in the balance sheet.

This is why we usually interpret the profit statement as a traffic volume and a camera, and explain the balance sheet as stock and camera.

Because the profit statement reflects the number of periods, the period can be divided into monthly, quarterly and annual according to the actual business needs. The characteristics of the flow and the camera are the beginning and the end. What is happening in this period? And the balance sheet is a time point. The characteristics of the quantity and the camera are to reflect what the present is like.

Two, we must have a deep understanding and skillful use of "borrowing and lending, borrowing and lending equally" and "borrowing positive loans" (double entry bookkeeping) instead of blankness or ambiguity in the mind after reading.

The rules for derivation are as follows:

Accounting identities

Textbook version:

Assets = Liabilities + owners' equity

Profit = revenue - cost

Small card version:

Known:

Assets T= liabilities T+ owners equity T

Profit T= income T- cost T

Owner equity T= owner equity T-1+ (income T- cost T)

Introduction:

Assets T= liabilities T+ owners equity T-1+ (income T- cost T)

Assets T+ cost T = Liabilities T+ owners equity T-1+ income T

So, "borrowing, lending and borrowing must be equal" can be remembered in this way. Any accounting entry may involve one or more identities. The final entry made by you can reflect the essence of economic business and make the above Highlight Green formula still established.

"Borrowing positive loans" means that the two elements (assets and expenses) on the left side of the identities are shown to be increased by the debit side under the double entry bookkeeping method, while the lender indicates a decrease; while the three major elements on the right (liabilities, owners' equity and income) are reduced to the borrowers under the double entry bookkeeping method, and the lender indicates an increase.

At this point, the theoretical problem of double entry bookkeeping has been solved.

But for beginners, how to do accounting entries according to economic business is one of the difficulties. My suggestion is that we should first familiarise ourselves with the accounting subjects contained in the above five categories of accounting elements and the meaning of the subject, because accounting subjects are the foundation of the double entry bookkeeping method, and the accounting subjects are divided into bookkeeping subjects and report subjects. The former can be set up according to the actual business and management needs of the enterprises, and in accordance with the uniform accounting regulations of the state.

For example, the fixed assets of the accounting statements are the sum of the original value of fixed assets, fixed assets depreciation, fixed assets impairment and fixed assets liquidation, such as the business tax of the account items and the related taxes and fees such as business account tax, consumption tax, urban maintenance and construction tax, resource tax and education fee addition. Therefore, as a beginner, we must first remember the major reporting subjects (mainly the balance sheet and profit statement), and on this basis, we should be familiar with the bookkeeping subjects specifically contained in each report subject, and accumulate a lot of them.

Secondly, according to the essence of economic business, it is judged that which business will lead to changes in the above five factors or specific ones.

A. does not know which accounting factors affect the economic operation. The best way is to practice more. Even though the business of the enterprise is ever-changing, there are so many changes in the economic operation, and the accumulation of some will gradually feel it. This process is like the fact that when we were young and learning to write a composition, the more materials we accumulated, the more we wrote in the composition, the more shortcuts we had. Besides, the familiar business process is also one of the breakthrough points. The manufacturing and business processes of the general manufacturing enterprises are divided into: fund-raising, procurement process, production process, sales process, profit accounting and so on. When we get a specific economic business, we first classify it into a large class of processes and then subdivide it, so that our thinking will be clearer.

The author of the book failed to point out the key points in the book (of course, sometimes because of the accuracy of the concept). There is no such problem in my writing of this kind of essay. Of course, it is mainly the author's excuse for his lack of ability to control these concepts. Ha ha, I think the key to solve this problem lies in two points: first, clear the concept of "the subject of reserve" in the accounting, and clarify the concept. All your ambiguities will be solved. As the name suggests, the concept is used to prepare for the cancellation of the subject, which is the reduction of its corresponding subjects. When we distinguish the nature, we can straighten out the related subjects in their own subjects. Although B. has identified the bookkeeping subjects affected by economic pactions, it is not surprising that beginners are confused when judging borrowers.

Take the depreciation of fixed assets as an example, he is the subject of fixed assets, and the action of depreciation will lead to a decrease in the book value of fixed assets, while the fixed assets belong to assets. Before we have said that the accounts will be understood as assets themselves, and the creditors of the assets should be reduced. Therefore, the entry of depreciation should be the depreciation of fixed assets by borrowing the corresponding cost or cost.

The list of common provision items is summarized as follows:

The provision for bad debts is the provision of accounts for accounts receivable, bills receivable, interest receivable, dividends receivable and other receivables.

Short term investment depreciation is a short-term investment provision.

Long term investment impairment provision is a long-term investment account.

Inventory depreciation reserve is an inventory account.

Fixed assets depreciation reserves and accumulated depreciation are fixed assets reserve accounts.

The provision for impairment of intangible assets and accumulated amortization are the subject matter of intangible assets.

The provision for impairment in construction projects is the provision for the construction projects.

The entrusted loan impairment allowance is the subject of the entrusted loan.

Deferred income - unrealized financing proceeds as a reserve account for receivable finance leases.

Unrecognized financing charges are used as long-term accounts payable.

Here, we need to draw the attention of readers to distinguish several common concepts in accounting textbooks: book value and book balance, in which book value is deducted from all items after that reduction, while the book balance is the amount before deduction.

Three, when it comes to defining when the economic operation will affect the profit and loss (profit statement) and when it affects the owner's equity (balance sheet), it is too much to understand the two different effects as the soul of the audit. Why do we say so? From the inside of the enterprise, the profit statement and the balance sheet are directly linked to the budget of the enterprise, and the degree and quality of the budget directly relate to the immediate interests of every individual in the enterprise. From the regulatory level, the securities law has corresponding requirements for the profits of the listed companies, and if they are not satisfied, they will be faced with the risk of ST or delisting.

Of course, the underlying causes are far from limited to the above two points.

Under this background, if there is no corresponding guidelines to guide, the right of discretionary power of enterprises is too large, which will inevitably lead to the distortion of statements, and the statements of different enterprises are not comparable.

The reason why I use the two words and guidelines, and the reasons why I do not use laws and regulations and mandatory provisions actually involve the controversy over the concept of accounting regulation, is another topic. We are going to expand the interest here, and interested readers can search for relevant materials by themselves.

For this reason, our country has formulated and updated a series of accounting standards since 2007.

In addition, understanding these two kinds of effects is beneficial to our learning process. For most beginners, the two major stumbling blocks of accounting are undoubtedly financial assets (financial assets measured in fair value and their changes in current profits and losses, holding to maturity investments, available for sale financial assets) and long-term equity investments and business combinations. For the former, if you follow the idea of affecting profit or loss or affecting owners' equity, I believe that the difficulty of learning will be greatly reduced.

Four, make clear the initial measurement, follow-up measurement and disposal of accounting subjects, because accounting is a system that dynamically records the development and change of enterprises, so almost all the reporting subjects relate to these three processes.

In the process mentioned above, we must mention all kinds of measurement methods: historical cost, replacement cost, net realizable value (NRV), present value and fair value, among which the debate on historical cost and fair value is the focus of the three methods.

The core of the measurement is what kind of measurement can truly reflect the actual situation of the enterprise.

(interested readers can search for related articles by themselves. This is another big problem.

)

Five, understand the general process of doing business accounts, do not fall into a certain detail can not extricate themselves.

For enterprises, the starting point of accounting treatment is economic business, and the end is how the economic business is presented in the report.

The specific process is as follows:

The subsidiary ledger accounts according to the subsidiary ledger to form a general ledger account balance statement (general ledger summary version) to report (the balance sheet of subjects). Of course, this summary is not a simple addition process, but also involves different adjustment processes at different stages, that is to say, adjustment entries, cancellation entries, and non adjustment accounts often stated in accounting, that is, adjustment at the reporting level, without modifying the subsidiary ledger. The main reason for this phenomenon is that the internal control of enterprises is generally unable to add new accounting treatment to the financial system after the enterprise has settled accounts, but at the same time, it is found that mistakes are made to ensure the accuracy of the final disclosure of the reports. Economic pactions happen in real time to original vouchers (to prove relevant evidence of economic business).

Six, the tax law in Accounting: deferred income tax assets (DTA) and deferred income tax liabilities (DTL).

If I ask you what subjects in the report are compiled according to the tax law, can you answer them accurately? There are three reports in the report, which are related to the tax law. There are altogether three items: tax payable (balance sheet, B/S), business tax and additional (profit statement, P/L), and income tax and income tax.

For beginners, DTA and DTL are the third tigers after the two stumbling blocks mentioned above. How to stride over the tiger is my experience. First, it is clear about all kinds of reasons that lead to DTA and DTL. Secondly, when the entry is made, the stipulations of the borrowers and the borrowers are generally the same, that is, according to the accounting regulations or according to the tax law, the specific relationship is as follows:

Income tax expenses (the number in the income statement) = deferred income tax + current income tax (income tax expense is calculated on the basis of accounting standards, the current income tax is calculated on the basis of tax law); any increase in deferred income tax is caused by deferred income tax liabilities; any deferred income tax reduction is caused by deferred income tax assets.

Therefore, there are only two entries related to DTA&DTL (link B/S and P/L):

Income tax expense deferred income tax

Loan: deferred income tax liability

Borrower: deferred income tax assets

Loan: income tax expense deferred income tax

However, there are a number of pre entry entries in these two entries, which are the temporary differences between DTA and DTL that occurred this year. There are only two related entries.

Borrower: deferred income tax assets

Loan: deductible temporary

* tax rate

Borrowing: taxable temporary differences * tax rate

Loan: deferred income tax liability

Here, if you think you understand, then I raise two questions:

A. is DTA good or DTL good for an enterprise?

Is the income tax expense in the B. profit statement the actual amount paid by the enterprise to the Inland Revenue Department?

(answer a:DTL well, because DTL is less tax payable for enterprises now, more tax payable in the future, the time value of money; B: No, only the income tax expense in the income statement - the current income tax is the actual amount paid to the Inland Revenue Department during the year.)

Further, any increase in the current period of deductible temporary differences (DTA increase) will lead to an increase in the income tax payment, and then an increase in the income tax expense - current income tax, and the increase in the amount of tax payable to the Inland Revenue during the current period. Any increase in the current temporary tax differential (DTL increase) will result in a reduction in the income tax deduction, thereby reducing the income tax expense - the current income tax and reducing the amount payable in the current period to the Inland Revenue Department.

Just like a seesaw, it depends on the difference between the accounting policy and the tax law of your enterprise.

Seven, if we can turn back the impairment loss, if we can turn it back at will, then the profit adjustment behavior will be everywhere. The company feels that the profit is much more, and it will reduce the profit. Then the profit will be reduced.

Is there any significance in such statements? Therefore, there are strict rules for various types of reversals.

A. long term equity investment: can not be reversed.

B. fixed assets: not to be reversed.

C. intangible assets: not to be turned back.

D. investment real estate: 1, cost measurement can not be reversed.

2, fair value measurement does not mention impairment.

E. financial assets: 1, excluding trading value of financial assets.

2, holding to maturity investments can be reversed.

3, accounts receivable and loans can be refunded.

4, the sale of financial assets can be reversed.

(if the sale of financial assets is available, stock investment is not reversed through profit and loss).

F. inventory impairment: it can be reversed. If the product that has been depreciated has been sold, it should be carried forward at the same time.

From the above list, it is easy to see that the rules can be interpreted macroscopically as follows: the impairment of long-term assets can not be reversed before it is disposed of, and the impairment of short-term assets can be conditionally reversed.

The starting point of such a rule is also judged on the basis of the characteristics of enterprise operation.

Think of the following situation: if an enterprise says that his forward foot drop stock is sold at the original price, you will be very likely to sell it at the original price; but if a firm's fixed asset impairment is returned, will you believe it? So, understanding the original intention of the guidelines from the Perspective of human nature is a better way to learn.

Eight, four

(the balance sheet, profit statement, cash flow table and the change table of owner's equity) the students who are interested can understand the history of accounting and see how the report evolved into the four one by one step by step.

The balance sheet and profit statement are linked through unallocated profit subjects; the change of shareholders' equity in the balance sheet can be seen in the table of changes in owners' equity; since balance sheets and profit tables are based on accrual basis, they can not reflect the cash receipts and payments of enterprises, so there is a cash flow statement based on cash receipts and payments system. After all, for an enterprise, if there is not enough cash, it will have strong profitability in time, and it will also face enormous risks.

Nine.

This topic is somewhat heavy, because there are not many people who really understand the merger of enterprises, and with the increasing intelligence of the financial system, the merging process has been embedded into the financial system, which has become an important module in the system; and for large enterprise groups, manual merger is an impossible thing to accomplish.

So what do I need to know about accounting learners? I am not an expert in this field, so I can only talk about my own views on this topic.

The consolidated statements, as the name implies, is to merge small families into people. Some things seem to be "armour" in the small family. Maybe everyone has become "B"; a has borrowed money from small family B, so a has formed assets, B has formed liabilities, but from everyone's point of view, it is pferred from a pocket to B pocket.

This difference due to the different angle of the station is what the consolidated statement is doing.

Revenue, carried out the cost, while debiting accounts receivable, B confirmed the inventory and has not yet been sold to third parties and credited the accounts payable, and the paction was pferred from the A warehouse to the B repository only from the perspective of the consolidated statements. Therefore, the relevant accounting processing of the subsidiary companies needs to be offset at the merger level; and if the subsidiary A is a vehicle selling enterprise, the revenue that the subsidiary engine sells to its customers should be recorded in other business receipts, and from the perspective of the group, the zero part is one of its main business modules. For example, the subsidiary A sold its inventory to B, and A confirmed it.

Therefore, in view of the possible merger adjustment, we should take every way to crack down, not to be greedy and quick, which is just the opposite.

Ten, realize the pformation from textbooks to standards, track the updating of criteria, and ensure the freshness of knowledge.

Some people have read books for more than ten years, and may not have personally turned over the relevant first-hand information. For example, many people have heard of CAPM, but several people actually read Sharp's papers.

Why do we need to realize this pformation, because the processed data are easily distorted in the process or add to the viewpoints and positions of the processors. For beginners, this processing is necessary; but if you have read the second-hand information after you have already passed the beginner's stage, should you reflect on it? In addition, some people even get the first hand information, and the source is not right. In terms of laws and regulations, the access way should be to make official documents issued by the authorities, rather than some ways to redistribute them.

A sign of qualitative change in learning ability should be your ability to read first-hand information.

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