Introduction to Accounting and Business Chapter 1 Introduction to Accounting and Business Accounting, 21st Edition Warren Reeve Fess © Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved. Task Force Image Gallery clip art included in this electronic presentation is used with the permission of NVTech Inc. PowerPoint Presentation by Douglas Cloud Professor Emeritus of Accounting Pepperdine University

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After studying this chapter, you should be able to: Objectives 1. Describe the nature of a business. 2. Describe the role of accounting in business. 3. Describe the importance of business ethics and the basic principles of proper ethical conduct. 4. Describe the profession of accounting. 5. Summarize the development of accounting principles and relate them to practice. 6. State the accounting equation and define each element of the equation. After studying this chapter, you should be able to:

Objectives 7. Explain how business transactions can be stated in terms of the resulting change in the basic elements of the accounting equation. 8. Describe the financial statements of a proprietorship and explain how they interrelate. 9. Use the ratio of liabilities to owner’s equity to analyze the ability of a business to withstand poor business conditions.

Manufacturing Business Types of Businesses Manufacturing Business Product General Motors Cars, trucks, vans Intel Computer chips Boeing Jet aircraft Nike Athletic shoes and apparel Coca-Cola Beverages Sony Stereos and television

Merchandising Business Types of Businesses Merchandising Business Product Wal-Mart General merchandise Toys “R” Us Toys Circuit City Consumer electronics Lands’ End Apparel Amazon.com Internet books, music, video retailer

Types of Businesses Service Business Disney Entertainment Product Disney Entertainment Delta Air Lines Transportation Marriott Hotels Hospitality and lodging Merrill Lynch Financial advice Sprint Telecommunication

There are three types of business organizations Proprietorship Partnership Corporation

A proprietorship is owned by one individual. Advantages Ease in organizing Low cost of organizing Disadvantage Limited source of financial resources Unlimited liability Joe’s

A partnership is owned by two or more individuals. Advantages More financial resources than a proprietorship. Additional management skills. A partnership is owned by two or more individuals. Disadvantage Unlimited liability. Joe and Marty’s

The ability to obtain large amounts of resources by issuing stocks. A corporation is organized under state or federal statutes as a separate legal entity. Advantage The ability to obtain large amounts of resources by issuing stocks. Disadvantage Double taxation. J & M, Inc.

Business Strategies A business strategy is an integrated set of plans and actions designed to enable the business to gain an advantage over its competitors, and in doing so, to maximize its profits.

Business Strategies Under a low-cost strategy, a business designs and produces products or services of acceptable quality at a cost lower than that of its competitors. Wal-Mart Southwest Airlines

Business Strategies Under a differential strategy, a business designs and produces products or services that possess unique attributes or characteristics which customers are willing to pay a premium price. Maytag Tommy Hilfiger

Value Chain of a Business A value chain is the way a business adds value for its customers by processing inputs into product or service. Inputs Business Processes Products or Services Customer Value

Business Stakeholders A business stakeholder is a person or entity having an interest in the economic performance of the business.

The Process of Providing Information STAKEHOLDERS Internal: Owners, managers, employees External: Customers, creditors, government 1 Identify stake-holders. 2 Assess stakeholders’ informational needs.

The Process of Providing Information Design the accounting information system to meet stakeholders’ needs. 3 Accounting Information System 4 Record economic data about business activities and events.

5 The Process of Providing Information STAKEHOLDERS Internal: Owners, managers, employees External: Customers, creditors, government 5 Prepare accounting reports for stakeholders. Accounting Information System

Sound Principles that form the foundation for ethical behavior Business Ethics 1. Avoid small ethical lapses. 2. Focus on your long-term reputation. 3. You may expect to suffer adverse personal consequences for holding to an ethical position. Sound Principles that form the foundation for ethical behavior

Profession of Accounting Accountants employed by a business firm or a not-for-profit organization are said to be engaged in private accounting. Accountants and their staff who provide services on a fee basis are said to be employed in public accounting.

Generally Accepted Accounting Principles (GAAP)

The business entity concept limits the economic data in the accounting system to data related directly to the activities of the business. The cost concept is the basis for entering the exchange price, or cost of an acquisition in the accounting records.

The objectivity concept requires that the accounting records and reports be based upon objective evidence. The unit-of-measure concept requires that economic data be recorded in dollars.

Sumber daya yang dimiliki oleh bisnis. Persamaan Akuntansi Aktiva = Utang + Modal Sumber daya yang dimiliki oleh bisnis.

Hak kreditor, merupakan utang bisnis. Persamaan Akuntansi Aktiva = Utang + Modal Hak kreditor, merupakan utang bisnis.

Persamaan Akuntansi Aktiva = Utang + Modal Hak pemilik

Apa yang dimaksud Transaksi bisnis? Transaksi bisnis adalah suatu kejadian ekonomi atau kondisi yang secara langsung merubah suatu kondisi keuangan entitas atau secara langsung mempengaruhi hasil operasinya.

Pada 1 November 2005,, Chris Clark memulai usahanya dengan nama NetSolutions.

a. Chris Clark mendepositokan sebesar $25,000 dibank dalam rekening atas nama NetSolutions. Modal, Chris Clark 25,000 Investasi oleh Chris Clark Kas 25,000 a. Aktiva Modal =

b. NetSolutions membeli tanah seharga $20,000. Aktiva = Modal Kas + Tanah 25,000 Modal,Chris Clark 25,000 Bal. = b. –20,000 +20,000 Bal. 5,000 20,000 25,000

c. Selama bulan berjalan, NetSolutions membeli suplai sebesar $1,350 dan sepakat membayarnya dalam waktu dekat (utang). Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark = Bal. 5,000 20,000 25,000 c. + 1,350 + 1,350 Bal. 5,000 1,350 20,000 1,350 25,000

d. NetSolutions menyediakan jasa kepada pelanggan, memperoleh fee sebesar $7,500 dengan menerima kas. Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark Bal. 5,000 1,350 20,000 1,350 25,000 = Pendapatan d. + 7,500 + 7,500 Bal. 12,500 1,350 20,000 1,350 32,500

e. NetSolutions membayar beban berikut: upah, $2,125; sewa, $800; utilities, $450; and lain-lain, $275. Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark Bal. 12,500 1,350 20,000 1,350 32,500 e. – 3,650 –2,125 – 800 – 450 – 275 Upah Sewa Util. Lain. = Bal. 8,850 1,350 20,000 1,350 28,850

f. NetSolutions membayar $950 kepada kreditor untuk bulan berjalan. Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark Bal. 8,850 1,350 20,000 1,350 28,850 = f. – 950 – 950 Bal. 7,900 1,350 20,000 400 28,850

g. Pada akhir bulan beban suplai di tangan $550, jadi $800 yang digunakan. Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark Bal. 7,900 1,350 20,000 400 28,850 = Beban Suplai g. – 800 – 800 Bal. 7,900 550 20,000 400 28,050

h. Pada akhir bulan, Chris menarik kas $2,000 untuk kepentingan pribadi Utang + Modal Aktiva = Utang Modal, Kas + Suplai + Tanah Dagang Chris Clark Bal. 7,900 550 20,000 400 28,050 = prive h. –2,000 –2,000 Bal. 5,900 550 20,000 400 26,050

Pengaruh Transaksi pada Modal Prive Beban dikurangi ditambah Investasi pemilik pendapatan Laba bersih

Laporan akuntansi disebut laporan keuangan, menyediakan ringkasan informasi kepada pemilik.

Laporan Keuangan Laporan laba rugi—ringkasan pendapatan dan biaya untuk periode waktu tertentu. Laporan perubahan modal—Ringkasan perubahan modal yang terjadi selama suatu periode tertentu. Neraca—Daftar Aktiva, utang, dan modal pada tanggal tertentu. Laporan Arus Kas—Ringkasan penerimaan dan pengeluaran kas pada periode tertentu.

Untuk bulan berakhir 30 November 2005 NetSolutions Laporan laba rugi Untuk bulan berakhir 30 November 2005 Endapatan fee $7 500 00 Beban operasi: Beban upah $2 125 00 Beban sewa 800 00 Beban suplai 800 00 Beban Utilities 450 00 Beban lain-lain 275 00 Total beban operasi 1 135 00 Ke laporan perubahan modal Laba bersih $3 050 00

Laoran Perubahan Modal Untuk bulan berakhir 30 November 2005 NetSolutions Laoran Perubahan Modal Untuk bulan berakhir 30 November 2005 Modal, Chris Clark, 1 November, 2005 $ 0 Investasi pada 1 November $25 000 00 Laba bersih untuk November 3 050 00 $28 050 00 Dari laba rugi Dikurang Prive 2 000 00 Peningkatan modal 26 050 00 Modal, Chris Clark, 30 November 2005 $26 050 00 Ke neraca

Neraca ini ditampilkan menggunakan format akun NetSolutions Neraca 30 November 2005 Dari laporan perubahan modal Aktiva Utangs Kas $ 5 900 00 Utang dagang $ 400 00 Suplai 550 00 Modal Tanah 20 000 00 Modal, Chris 26 050 00 Total utang Total aktiva $26 450 00 dan modal $26 450 00 Neraca ini ditampilkan menggunakan format akun

Ketika neraca menampilkan utang dan modal dibawah aktiva, berarti menggunakan format laporan.

Untuk bulan berakhir 30 November 2005 NetSolutions Laporan Arus kas Untuk bulan berakhir 30 November 2005 Arus kas dari aktivitas operasi: kas diterima dari pelanggan $ 7 500 00 dikurangi pembayaran kas untuk beban dan pembayaran kepada kreditor 4 600 00 Arus kas dari aktivitas operasi 2 900 00 Arus kas dari aktivitas investasi: pembayaran kas untuk perolehan tanah (20 000 00 Arus kas dari aktivitas pendanaan: kas diterima sebagai investasi pemilik $25 000 00 dikurangi penarikan oleh pemilik 2 000 00 arus kas bersih dari aktivitas pendanaan 23 000 00 Arus kas bersih dan saldo kas 30 Nov. $ 5 900 00 ) Should match Cash on the balance sheet

Laporan Arus Kas Kas dari aktivitas operasi—Bagian ini melaporkan ringkasan kas diterima dan pembayran kas dari operasi. Arus kas dari aktivitas investasi—Bagian ini melaporkan transaksi kas dari perolehan dan penjualan aktiva tetap. Kas dari Aktivitas Pendanaan.—Bagian ini melaporkan transaksi kas berhubungan dengan investsasi oleh pemilik, peminjaman,dan penarikan kas oleh pemilik.

Perangkat Untuk Analisa dan interpretasi laporan keuangan Ratio utang terhadap modal memungkinkan pemilik seperti Chris Clark untuk dapat menganalisa kemampuan erusahaan untuk dapat bertahan pada kondisi bisnis yang buruk. Ratio of liabilities to owner’s equity = Total Liabilities Total owner’s equity (or total stockholders’ equity)

Tools for Financial Analysis and Interpretation Ratio of liabilities to owner’s equity = $400 $26,050 = 0.015 Ratio of liabilities to owner’s equity

Chapter 1 The End