Accounting in Action Lec/Chapter 1

Asalam o Alaikum dear friends I hope you are all fine, today i am going to upload  lecture no 1 of financial accounting which Sir Waqar Ahmed Sethar has taught us in class in Muistd.<br /> <br /> <br /> <h3> <br />Lecture Objectives:</h3> <div> Explain what accounting is<br /> <br /> <br /> Identify the users and uses of accounting<br /> <br /> <br /> Explain GAAP and the cost principle<br /> <br /> <br /> Classification of Accounts<br /> <br /> <br /> Analyze Transactions<br /> <br /> <br /> Understand Four Financial Statements</div> <div> <span style="font-family: inherit;"><br /></span></div> <h3 style="text-align: center;"> <span style="font-size: x-large;"><a href="https://drive.google.com/open?id=0B1jukj_D3MRzdGRjdXBwT0xKaWM" target="_blank">Download Here</a></span></h3>

Accounting in Action Lec/Chapter 1

Asalam o Alaikum dear friends I hope you are all fine, today i am going to upload  lecture no 1 of financial accounting which Sir Waqar Ahme...

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Financial Accounting Introduction Lec # 01

Asalam-o-Alaikum dear friends, Today I am going to post the first lecture of financial accounting on "Introduction of Financial Accouting". This subject is very useful for our daily life.<br /> <br /> <h3> What is Accounting?</h3> <div> Accounting is system or art of recording, summarizing and classification of  all financial transaction that can be utilized by the stake holders.</div> <div> <br /></div> <h3> Basic Terms of Financial Accounting</h3> <h3> Asset</h3> <div> An asset is a economic resource of the firm. for example: Building, Land, Vehicle, Cash, Machinery Etc.</div> <div> <br /></div> <h3> Types of Asset</h3> <h4> Tangible Asset:</h4> <div> Those assets which can be touched, and seen are called Tangible Asset.</div> <div> Example: Book, Pen,Land, Building, Machinery, Cash etc..</div> <h4> Intangible Asset:</h4> <div> Those asset which can not be touched or seen are called Intangible Asset.</div> <div> Example: Qualities, Patent, Good will.</div> <h4> Current Asset:</h4> <div> Those asset which are remain same for longer period of time.( which can not be converted into cash easily).</div> <div> Example: Building, Heavy Machinery, Land etc..</div> <div> <br /></div> <h4> Fixed Asset:</h4> <div> Those asset which can easily convert into cash. </div> <div> Example: Cash, Bank Balance, Inventory.</div> <div> <br /></div> <div> <br /></div> <h3> Liability: </h3> <div> An liability is an economic obligation that must be paid. for example: Loan</div> <div> <br /></div> <h3> Two types of Liability:</h3> <h4> Internal Liability:(Inside the Business): </h4> <div> Capital itself is a liability toward the business.</div> <div> Example: Owner one day get its investement back as him money before earn profit.</div> <div> <br /></div> <h4> External Liability:</h4> <h4> 1) Non Current Liability: </h4> <div> It's the liability which entity expected to settle within months, or within a year.</div> <h4> 2) Current Liability:</h4> <div> It's the liability which entity expected to settle after long period of 10 year, 12 year etc.</div> <div> <br /></div> <div> <br /></div> <div> <br /></div> <div> <br /></div> <h3> Owner's Equity:</h3> <div>  It's the amount of money invested by owner of business to run the business.It;s also known as Capital.</div> <div> <br /></div> <div> --Capital Increase the profit.</div> <div> --Capital Decrease the profit.</div> <div> <br /></div> <h4> Drawing:</h4> <div>  It is inverse of capital. The money withdrawn by owner out of the business for his/her personal use.</div> <div> <br /></div> <h3> <br />Expenditure:</h3> <div> The action of spending funds. OR. An amount of money spent.</div> <div> <br /></div> <h4> 3 Types of Expenditure:</h4> <h4> Capital Expenditure:</h4> <div> Money spent by business or organization on acquiring or maintaining fixed asset. Eg: Land, Equipment, Building etc.</div> <h4> Deffered Expenditure:</h4> <div> It's a cost that has already been incurred but which has not yet been consumed. The cost is recorded as an asset until such time as underlying goods, or services are consumed.</div> <h4> Revenue Expenditure:</h4> <span style="font-weight: normal;">It's an amount that is expensed immeidiately there by being matched with revenue of the current accounting period.</span><br /> <h3> Debitors:</h3>   <span style="font-weight: normal;">Those person, to whom sold goods on credit.</span><br /> <h3> Creditors:<span style="font-weight: normal;"> </span></h3> <span style="font-weight: normal;">Those person, from whom we purchased goods on credit.</span><br /> <span style="font-weight: normal;"><br /></span> <h3> Goods:</h3> <div> Those asset which are purchased for reselling purpose.</div> <div> <br /></div> <h3> Debit:</h3> <div> A debit is an acounting entry that either increases an asset account or expense account. OR Decreases a liability account or owner's equity account. It's positioned to the left side in the accounting entry of general journal.</div> <div> <br /></div> <h3> Credit:</h3> <div> A credet is an accounting entry that either increases a liability or owner's equity. OR Decreases an asset or expense account. It's positioned at right side in the accounting entry of general journal.</div> <div> <br /></div> <h3> Profit:</h3> <div> It's financial benefit, when amount of revenue gained exceeds the expenses.</div> <div> <br /></div> <h3> Business:</h3> <div> An activity to earn profit. Business word come from word "busy"</div>

Financial Accounting Introduction Lec # 01

Asalam-o-Alaikum dear friends, Today I am going to post the first lecture of financial accounting on "Introduction of Financial Accouti...

Read more »