Chapter 1: Accounting Concepts

Section 1: Introduction to Accounting and Financial Statements
Section 2 Definition of Accounting and Users of Accounting Information
Section 3 Financial Accounting and Management Accounting
Section 4 Financial Statements
Section 5 International Financial Reporting Standards Adopted by Korea

Chapter 2 Accounts and Transactions

Section 1 Account
Section 2 Accounting Transactions
Section 3 Accounting Treatment

Chapter 3 Assumptions for Preparing Financial Statements

Section 1 Cash basis and accrual basis
Section 2: Examples of Accrual-Based Accounting
Section 3 Going Concern Assumption and Realized and Unrealized Profits and Losses

Chapter 4 The Time Value of Money

Section 1. General Information on the Time Value of Money
Section 2 Calculating the Present Value and Future Value of a Single Amount
Section 3 Present Value and Future Value of Multi-Period Cash Flows
Section 4 Present and future value of pensions
Section 5: Application of the Time Value of Money

Chapter 5 Cash and Cash Equivalents

Section 1 Cash and cash equivalents
Section 2 Bank Account Reconciliation Statement

Chapter 6 Accounts Receivable and Allowance for Bad Debt

Section 1 Accounts Receivable
Section 2 Bad Debt Allowance

Chapter 7 Inventory Assets

Section 1 General Information on Inventory Assets
Section 2. Recording method of cost of sales
Section 3 Cost Flow Assumptions
Section 4 Items to be included in ending inventory assets
Section 5. Depreciation and undervaluation of inventory assets
Section 6 Retail Inventory Act
Section 7 Gross Profit Margin Method
Section 8 Calculation of net purchase amount

Chapter 8 Tangible and Intangible Assets

Section 1 Definition of tangible assets and acquisition cost
Section 2 Depreciation
Section 3. Acquisition and disposal of tangible assets during the period
Section 4 Impairment loss on tangible assets
Section 5 Reevaluation Model
Section 6 Intangible Assets

Chapter 9 Investment Equity Products

Section 1 Classification of Investment Equity Products
Section 2 Investment equity products classified as FVPL financial assets
Section 3 Investment Equity Products Classified as FVOCI Financial Assets

Chapter 10 Investment Debt Products

Section 1 Classification of Investment Debt Products
Section 2 AC Financial Assets
Section 3 FVOCI Financial Assets
Section 4 FVPL Financial Assets

Chapter 11 Private Debt

Section 1. Meaning of private debt
Section 2 Accounting for Debentures

Chapter 12 Other Liabilities

Section 1 Definition and Classification of Debt
Section 2 Accounting Treatment by Type of Liabilities

Chapter 13 Capital

Section 1 The Meaning of Capital
Section 2 Accounting for Capital Increase Transactions
Section 3 Accounting for Potato Transactions
Section 4 Treasury Stock Transactions
Section 5 Dividends
Section 6 Statement of Changes in Equity

Chapter 14 Revenue Recognition

Section 1 General Matters Concerning Revenue Recognition
Section 2 Sale of goods and provision of services
Section 3 Calculation of Net Sales

Chapter 15 Preparation of Financial Statements

Section 1 Preparation of financial statements and comprehensive income statements
Section 2 Preparation of Cash Flow Statement

[Appendix 1] Calculating Present Value and Future Value
Future value coefficient
Future value coefficient of pension
Present value coefficient
Present value coefficient of pension

[Appendix 2] Accounting Principles Practice Exam
1st Accounting Principles Practice Exam
2nd Accounting Principles Practice Exam
3rd Accounting Principles Practice Exam
4th Accounting Principles Practice Exam
5th Accounting Principles Practice Exam
6th Accounting Principles Practice Exam
7th Accounting Principles Practice Exam
8th Accounting Principles Practice Exam
9th Accounting Principles Practice Exam
10th Accounting Principles Practice Exam

There are three main reasons to study accounting principles.
Business administration students will likely want to take academy lectures in advance to get good grades in accounting principles, which is a required course at school.
Even those who start working in accounting-related departments without any accounting knowledge will want to study accounting principles.
Finally, students preparing for various accounting exams, including public enterprise written exams, will also first encounter accounting through accounting principles classes.
There are many different purposes for taking accounting principles classes, and the emphasis on each will vary slightly.
And if you want to give a lecture that satisfies everyone, the lecture time will inevitably become too long.
For students preparing for the public enterprise written exam, practical accounting knowledge is not important at all and it is sufficient to know only the minimum content.
I think that the accounting principles lectures that only teach content for the exam are the lectures that students need the most.
This book was written with a thorough focus on students preparing for public enterprise written exams.
The unique features of this textbook are as follows:

(1) Accounting principles completed with abundant examples
The secret to learning accounting is understanding the flow of numbers.
It is better to study with examples that show the flow of numbers rather than explaining in long sentences.
With a total of 72 rich examples, you can master accounting principles easily and without getting bored.

(2) Includes abundant problems for single volume publication
This book contains over 100 true-or-false practice questions and 120 multiple-choice questions, each graded by level. Simply solving the true-or-false questions and the multiple-choice questions will provide sufficient preparation for the exam.

(3) 10 sets of full-range mock exams
As an appendix, we have included 10 sets of full-range half-practice tests.
Please take the 10-part mock exam to finalize your skills and identify and improve any areas you may need.

I sincerely thank the students who chose my books and lectures.
We will provide you with the best lectures so that you will not regret your choice.
And I would like to express my gratitude to everyone who supported me in both material and spiritual ways until this book was published.

November 2023
CPA Hwang Yun-ha