ACCOUNTING AND FINANCIAL STATEMENTS

Taufan Anggi Brata & Agnesia Kharisma

THE NATURE OF ACCOUNTING

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

PUBLIC 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.

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

TYPE OF ACCOUNTANT

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 Documents Step two: Records Transactions Step Three: Post Transactions Step 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 ( ) =