Chapter 1: Knowing Accounting Leads to Practical Applications

· The importance of business activities and accounting knowledge
· Accounting standards to be observed when accounting
1.
Korean Adoption of International Financial Reporting Standards
2.
General Corporate Accounting Standards
3.
Small and Medium Business Accounting Standards
· What is the difference between bookkeeping and accounting?
1.
The Difference Between Bookkeeping and Accounting
2.
Cash register and vouchers (single-entry and double-entry bookkeeping)
3.
Should I make and sell it? Or should I buy and sell it? (Industrial and Commercial Bookkeeping)
-Industrial bookkeeping
-Commercial bookkeeping
· Different accounting (management accounting, financial accounting, tax accounting)
-Financial accounting presented externally
-Management accounting for internal management
-Tax accounting for tax payment
· Accounting cycle that rotates on an annual basis (accounting cycle)
· Timing of accounting (cash basis and accrual basis)
[Case] ​​When differences arise between the accrual basis and the cash basis in accounting

Chapter 2: Accounting Knowledge for Professionals Who Can't Even Tell the Difference Between Car and Stool

· One-page summary of accounting terms
1.
Duality of transactions divided into credit and debit
2.
The principle of the equilibrium of the left and right sides
· A complete summary of one-page ledger structure
1.
Financial and management accounting and financial practice by period
2.
Tax accounting practice by period
· Accounting begins with the first resentment
1.
Debit and credit
2.
All transactions are recorded as debits and credits.
3.
The law of division into debits and credits
4.
Assets, Liabilities, Equity, Expenses, Income and Financial Statements
-Assets, liabilities, equity and balance sheet
- Expenses, revenues, and income statements
-Relationship between the balance sheet and the income statement
· Account subject is required for resentment
1.
Understanding Accounts and Accounting Subjects
2.
Account selection and reconciliation upon occurrence of transaction
· Issuance of vouchers and flow of accounting books
· How to create a purchase/sales voucher
1.
Purchase and sales voucher
2.
Comparison of Purchase and Sales Vouchers and General Vouchers
· Preparation of general vouchers (deposit vouchers, withdrawal vouchers, replacement vouchers)
1.
How to write a deposit slip
2.
How to write a withdrawal slip
3.
How to write a substitute voucher
· Preparation of general ledger and auxiliary ledger
1.
Main sections (vouchers, journals, general ledger)
-chit
-journal
- Ledger (general ledger)
2.
Auxiliary Department
- Sales ledger and sales outlet ledger
-Purchase ledger by purchase location and purchaser
· From trial balance to financial statements
1.
Closing the income statement account
2.
Closing of financial statements accounts
3.
Order of preparation of financial statements
4.
Preparation of income statement and balance sheet
5.
Calculation of net income based on financial statements

Chapter 3: What account subject to use in this case?

· Distinguish between current and non-current, short-term and long-term
1.
Current and non-current assets
2.
Current and non-current liabilities
3.
Short term and long term
· Distinction between sales and non-sales, evaluation and measurement
1.
Sales and non-sales
2.
Evaluation and Measurement
-Historical cost (acquisition cost)
-Current cost or replacement cost
-Realizable value
-Present value
3.
recognize
· Distinguishing between revenue and profit, cost and loss
1.
Profit is realization
2.
Recognition of expenses and matching of revenue and expenses
· Non-fixed account subjects
· Asset and liability account subjects with opposite concepts
· Account subjects that make up the financial statements
1.
Asset account subject
[Example] Corporations must properly handle accounts payable and accrued income.
2.
Liability account subject
3.
Capital account items
-Capital and withdrawals of private companies
-Corporation's capital
· Revenue and expense account subjects with opposite concepts
· Account items that make up the income statement
1.
Gross profit and loss (sales and cost of goods sold)
[Case] ​​Differences Between Sales Allowance, Sales Return, and Sales Discount
2.
Operating profit and loss
3.
Net income before income tax expense
-Other income and financial income
-Other expenses and financial expenses
[Case] ​​Differences between foreign exchange losses and gains, and foreign exchange translation losses and gains.
[Case] ​​Economics of Exchange Rates and Financial Statement Analysis
-Net income and loss
· Account items that constitute manufacturing costs
· Examples of account subjects to watch out for
1.
When selling goods (inventory assets)
2.
rental and borrowing transactions
3.
Manufacturing cost aggregation
4.
Accounts to be aware of
· Account subjects that can manipulate numbers
1.
Overstatement of accounts receivable
2.
Overstatement of inventory assets
3.
Changes in inventory asset handling methods
4.
Manipulation at the time of delivery (FOB Shipping Point)
5.
Understatement of depreciation (overstatement of fixed assets)
6.
Understatement of liabilities
7.
Net income manipulation
8.
Classification of current and non-current accounts
9.
advance payment and deposit
10.
Special related party loans
· Accrued wages, advance wages, and withdrawals
1.
advance payment
2.
singer's fee
· Goods and products
Financial assets and financial liabilities
· Accounts receivable (purchased accounts payable) and other receivables (other payables)
1.
Accounts receivable and accounts payable (general commercial receivables)
2.
Other receivables and other payables (receivables other than those from general commercial transactions)
· Trade sales (deposits) and accounts receivable (accounts payable)
· Accounts receivable and revenue receivable
· Player fees and player earnings
· Accrued payments and accrued expenses
· Advance payments and prepaid expenses
· Consumables and supplies
· Occurrence of unpaid deposits
1.
How to resolve negative deposits (accounts payable)
2.
Correction of negative deposits (accounts payable)
· Net income and (unappropriated) retained earnings
1.
Net income
2.
Retained earnings
3.
Undistributed retained earnings
· Taxes, taxes and duties, miscellaneous losses
· Miscellaneous expenses and losses
· Outsourcing service fees and payment commissions
1.
Outsourcing service costs
2.
Payment fees
3.
Comparison of outsourcing service costs and payment fees
[Case] ​​Tax-related account items to watch out for

Chapter 4: From Settlement to Preparation of Financial Statements

· How do I settle accounts?
1.
Purpose and necessity of the final accounting
2.
Identify the cost shortfall through the final accounting.
- Start-up costs are thoroughly treated as expenses.
-Let's report labor costs normally.
-Let's report the rent accurately.
-Make sure to obtain supporting documents, such as tax invoices, from the other party.
3.
Management of receivables and advances
4.
Utilizing tax deduction and tax reduction systems
5.
Dividend Policy Review
· Things to check when settling accounts
1.
Verification of the consistency of financial statements
2.
Check cash and deposit balances
3.
Check inventory assets
4.
Fixed Asset Management
5.
Investment Asset Evaluation
6.
Current/non-current distinction
7.
Settlement of advance payments and advance payments
8.
Analysis of accounts receivable, accounts receivable, advance payments, and prepaid expenses
9.
Prepare contracts, tax invoices, and transaction statements
10.
Analysis of income statement and balance sheet changes
· Things to keep in mind during the settlement process
1.
Importance and Precautions for VAT and Withholding Tax Reporting
2.
The complexity of payroll accounting and settlement processes
3.
The Importance of Organizing Revenue and Expenses
4.
The necessity and precautions for preparing a cost statement
5.
Checkpoints before closing the financial statements
6.
The Importance of Identifying Capital Items
7.
Essentials of Financial Statement Review
8.
The Importance of External Audit Standards and Accounting Treatment
9.
Investor and Financial Institution Requirements
10.
Tax invoice processing and accounting methods
· Settlement flow and settlement summary
· Closing journal entry and closing journal entry at the time of settlement
1.
Settlement using the program
-Manual settlement items
-Automatic settlement items
2.
Profit and Loss Account Summary
- Player earnings settlement
- Settlement of prepaid expenses
- Settlement of accrued revenue
- Settlement of unpaid expenses
3.
Clearance of unused consumables
4.
Securities valuation
5.
Settlement of advance payments and advance payments
6.
VAT offset
7.
Conversion of foreign currency assets and liabilities
8.
Cost confirmation
9.
Inventory asset write-down loss (loss due to inventory asset physical inventory)
10.
Cost of sales accounting
11.
Liquidity replacement for long-term borrowings
12.
Depreciation expense accounting
13th Annual Allowance Settlement Report
-Check/organize whether annual leave has been used this year (accounting)
-Recognize next year's annual leave (accounting)
14.
Bad debt allowance settlement statement
15.
Establishment of retirement benefit reserve liabilities
-Severance pay and DB-type retirement pension are based on average wages
-DC type is total wages
-Settlement of retirement pension
16.
Cash over and under account settlement
17.
Accounting for corporate tax expenses
18.
Substitution of retained earnings for net income (profit and loss)
19.
Settlement of withdrawals for self-employed individuals
20.
Closing statement of accounts
· Meaning and types of financial statements
1.
Meaning of financial statements
2.
Types of financial statements
3.
Individual financial statements, separate financial statements, consolidated financial statements
-Consolidated financial statements
-Separate financial statements
-Individual financial statements
4.
Interrelationships of financial statements
5.
Site where you can view financial statements
[Case] ​​Things to Consider When Viewing K-IFRS Financial Statements
· The company's financial status and financial statements
1.
Assets in the financial statements
2.
Liabilities on the balance sheet
3.
Capital in the financial statements
4.
Format of financial statements
5.
How to arrange account subjects
[Case] ​​Method of Presenting Financial Statements in Korean IFRS
6.
Accurate valuation of assets
-Cost method (acquisition cost, general assets)
-Cost model (investment property, tangible assets, intangible assets)
-Fair value (marketable securities such as short-term trading financial assets)
-Fair value model (investment property)
-Depreciated value (financial liabilities)
-Revaluation model (tangible assets, intangible assets)
7.
Changes in asset value
-Asset impairment
-Asset revaluation
-Depreciation
· Company's business performance and income statement
1.
Understanding Revenue Accounts
2.
Understanding Expense Account Subjects
3.
Relationship between revenue and expenses
4.
Net income statement of a sole proprietorship
-Property Law
-Profit and loss method
[Case] ​​What you can learn from looking at the (comprehensive) income statement
· Statement of changes in equity showing the status of capital changes
· Cash flow statement showing the company's cash inflow and outflow
1.
Principles of preparing a statement of cash flows
-Scope of cash in the cash flow statement
-Cash flow divided into three activities
-Display the total amount of changes in cash flow
2.
Differences between direct and indirect methods
· Statement of Appropriation of Retained Earnings
1.
Retained Earnings Disposition Statement
2.
Deficit Disposition Statement
· Notes and appendix
1.
Display order of comments
2.
Main contents of the comment
· Key schedule for accounting audit
[Case] ​​Capital erosion rate (negative equity capital)

Chapter 5 Accounting for Cash and Other Current Assets

· Cash · Deposits and current transactions
1.
cash
2.
Cash shortage
3.
Ordinary deposit
4.
checking account
· Short-term financial products (CMA, RP transactions)
· Short-term trading financial assets (stocks, bonds, MMF transactions)
[Case] ​​Can a corporation acquire stocks of another corporation?
· Accounts receivable (goods, product credit, bills of exchange)
1.
Accounts receivable
2.
bill receivable
· Accounts receivable (accounts receivable excluding goods and products)
· Short-term loan (loan amount if you lend, loan amount if you borrow)
· Accrued income (accrued income if received later, unearned income if received in advance)
· Advance payment (prepayment for advance receipt, receivable for later receipt)
· Prepaid expenses (prepaid expenses if paid in advance, unpaid expenses if paid later)
[Case] ​​Difference between advance payment and advance payment
· Prepaid tax (tax paid in advance)
· Value-added tax payment (advance value-added tax)
· Accrued payments (amounts of uncertain origin)
1.
The problem of long-term unsettled payments and solutions
2.
Efficient management of advance payments
· Transfer fee (amount sent from head office to branch office)
· Bad debt allowance (valuation allowance)
[Case] ​​Practical Methods for Setting Bad Debt Allowances and Differences Between Accounting and Tax Law
[Case] ​​Accounting Audit Procedure for Bad Debt Provision

Chapter 6 Accounting for Inventory Assets

· Inventory asset account subjects and management analysis
1.
Difference between product and commodity
2.
Types of inventory assets and the difference between work-in-process and semi-finished products
3.
The risk inherent in inventory assets themselves
4.
The impact of inventory assets on a company's financial status
5.
Flow of inventory asset accounting
-Acquisition cost
-Valuation of ending inventory assets
· Method of determining inventory quantity
1.
Actual Inventory Investigation Method
2.
Continuous Recording Method
3.
Used in conjunction in practice
4.
Comparison of Accounting Treatments under the Physical Inventory Method and the Perpetual Records Method
5.
Inventory asset impairment loss
· Method of determining the unit price of inventory assets
1.
Acquisition cost of inventory assets
2.
Cost of sales of inventory assets
3.
Determining the unit price of inventory assets
-Individual law
-Grand average method
-Moving average method
-First-in, first-out method
- LIFO (last-in, first-out) method (not recognized in K-IFRS, but recognized in general corporate accounting standards)
[Case] ​​Why LIFO is not recognized in K-IFRS (International Financial Reporting Standards)
4.
Comparison of inventory valuation loss and manufacturing asset impairment loss
- Loss on inventory valuation
- Loss on inventory asset impairment
-Other account replacement
- Inventory valuation allowance
· Valuation of inventory assets using the lower-of-cost method

Chapter 7 Accounting for Investment Assets

· Long-term financial products
· Marketable financial assets (marketable securities)
· Held-to-maturity financial assets (held-to-maturity securities)
· Stocks of related companies
[Case] ​​Exception to the application of the equity method
Investment real estate
1.
Initial Measurement and Cost Composition of Investment Property
2.
Subsequent measurement methods for investment properties
3.
Accounting for investment properties
· Long-term loan
· Deposit

Chapter 8 Accounting for Tangible Assets

· Accounting subjects and management analysis of tangible assets
1.
Purchase and disposal of tangible assets
2.
Presentation of tangible assets in the financial statements
3.
Book value of tangible assets
4.
The impact of tangible assets on a company's financial status
· Depreciation of tangible assets
1.
Factors that determine depreciation
2.
Depreciation method
-Fixed amount method: Most commonly used in practice
-Definite-ratio method: most commonly used in practice
- Sum of years of service method
- Proportional production method
3.
Depreciation of assets acquired during the period
4.
Should depreciation be done annually on a continuous basis?
5.
Depreciation in case of acquisition or disposal in the middle
6.
Depreciation of unused and idle assets
· Depreciation of interior costs of leased buildings
1.
Interior design costs for private buildings
2.
Interior design costs for rental buildings
· Capital expenditures and revenue expenditures
1.
capital expenditures
2.
profitable expenditure
3.
Accounting for capital expenditures on depreciated assets
· Damage loss and damage loss recovery
· Accounting for revaluation of tangible assets
1.
If you are applying the reevaluation model for the first time
2.
Depreciation after revaluation
3.
Treatment of revaluation surplus
4.
Reevaluation in the year following the reevaluation
5.
Removal of revalued tangible assets
· Removal (disposal or disposal) of tangible assets

Chapter 9 Accounting for Intangible Assets

· Accounting and management analysis of intangible assets
1.
Conditions for Recognition of Intangible Assets
2.
Acquisition cost of intangible assets
3.
Accounting subjects for intangible assets
-Copyright account
- Mining rights, fishing rights, and leasehold rights accounts
-Computer software account
-Website development cost account
4.
Amortization of intangible assets
-Depreciation method
-Content period
-Residual value
· Accounting for industrial property rights (patents)
1.
Acquisition of patent rights
2.
Amortization of patent rights
3.
Accounting for other patent rights
-Patent royalties
-Maintenance fees after patent acquisition, etc.
[Case] ​​Damages paid for patent infringement
-Transfer of patent rights
4.
Examples of accounting for patent rights
· Accounting for development and research expenses
1.
Distinction between research and development expenses
2.
Costs that can be recognized as development costs
3.
Bookkeeping of general research and development expenses and development expenses

Chapter 10 Accounting for Liabilities and Equity

Explanation of Current Liabilities Account Subjects
1.
Short-term borrowings (loan if you lend, borrowing if you borrow)
2.
Accounts payable (accounts payable for debts other than goods or products)
3.
Accounts payable (debts for goods or products are accounts payable)
4.
Advance payment (if received in advance, it is an advance payment; if paid in advance, it is an advance payment)
5.
Unearned income (earned income if received in advance, accrued income if received later)
6.
Deposits (money received in advance and kept)
7.
Accrued expenses (if paid later, it is an accrued expense; if paid in advance, it is a prepaid expense)
8.
Unpaid corporate tax (taxes paid in advance are prepaid taxes, and taxes paid later are accrued taxes)
9.
Unpaid dividends
10.
Current portion of long-term debt
11.
singer's fee
12.
Current liabilities
13.
Retirement benefit reserve liabilities
14.
retirement pension
-Defined benefit retirement pension system
-Defined contribution pension system
-Accounting treatment when changing the retirement benefit system
· Explanation of Non-Current Liabilities Account Subjects
1.
Types of non-current liabilities account subjects
2.
private loans
-Issuance and amortization
- At the time of repayment (maturity repayment and early repayment)
· Paid-in capital (money contributed by shareholders)
· Retained earnings (profits earned by the company through operations)
1.
Profit reserve
2.
Other statutory reserves
-Financial structure improvement reserve fund
-Corporate rationalization reserve fund
-My reserve fund
3.
discretionary savings
4.
Accounting for capitalization of discretionary reserves
-Accounting for discretionary reserves
- Presentation of financial statements
-Tax treatment of discretionary reserves
· Capital surplus
1.
excess capitalization
2.
Potato profit
3.
Other capital surplus (treasury stock)
· Capital adjustment
1.
Stock discount issuance proceeds
2.
Dividend construction interest
3.
Treasury stock
4.
Unpaid dividends
· Other comprehensive income (income and expenses not directly included in current profit and loss)

Chapter 11 Accounting for Revenues and Expenses

· Sales and cost of sales
1.
take
2.
Cost of goods sold
· Selling and administrative expenses account subject
1.
Salary (wages and allowances paid to employees for their work)
2.
Severance pay (severance pay paid to employees upon retirement)
3.
Welfare expenses (expenses spent by the company on employees)
4.
Rent (the cost of a company borrowing assets)
5.
Corporate business expenses (expenses incurred for entertaining business partners)
-If a gift certificate is purchased as corporate business expenses
- Eligible proof of corporate business promotion expenses
6.
Depreciation expense
7.
Amortization of intangible assets
8.
Taxes and public duties (national pension, fines, penalties, and surcharges)
9.
Advertising and promotional expenses (expenses incurred to promote a product)
10.
Regular research and development expenses (research expenses that occur regularly)
11.
Bad debt expense (cost of uncollected receivables)
12.
Travel and transportation expenses (difference between travel and transportation expenses and vehicle maintenance expenses when traveling)
- Based on amount
-Case-by-case basis
13.
Vehicle maintenance costs (all costs incurred in repairing and operating the vehicle)
14.
Education and training expenses (training sessions, employee training, academy fees)
-Employee's personal tuition fees
-Employee recruitment expenses and in-house training expenses (instructor fees)
-If you are receiving foreign language lessons from a foreign individual
-If the company pays the application fee for a specific test
15.
Communication expenses (phone, internet, mobile phone charges)
-Tax treatment of mobile phone subsidies
- Proof of eligibility for telecommunication charges, including internet charges
16.
Repair costs (repair costs for maintaining functionality, not for improving functionality)
-Standards for processing repair costs (Corporate Tax Act)
-Major repair cost processing cases
- Precautions when handling repair costs
17.
Utility costs (electricity, water, gas, etc.)
18.
Book printing costs (book or internet subscription fees)
19.
Consumables cost (difference between consumables and consumables cost)
20.
Payment fee (compensation for using personal services)
21.
Insurance premium (allocation of current and future insurance premiums)
22.
Transportation costs (distinguish between transportation costs and separate expenses incurred when selling products)
23.
Packaging cost (cost of packaging the product)
24.
Storage fee (cost of temporary storage in warehouse)
25.
Sample fee (difference between paid and free sample fee)
26.
Sales commission (difference between sales commission and payment commission)
27.
Outsourcing costs (costs paid for outsourcing production to outside companies)
28.
Association fees (membership fees paid to an organization or group)
29.
Miscellaneous expenses (expenses not processed independently as a specific account subject)
· Non-operating income (financial income and other income)
1.
Interest income (interest received when lending money to others)
2.
Dividend income (cash dividends received by holding stocks of other companies)
3.
Rent (the price paid for renting real estate or personal property)
4.
Foreign exchange gains (profits generated when foreign currency assets are redeemed)
5.
Foreign currency translation gains (profits arising from changes in foreign exchange rates at the end of the year)
6.
miscellaneous income (profits that are not material in monetary terms)
7.
Other revenue items
· Non-operating expenses (financial expenses and other expenses)
1.
Interest expense (interest paid when lending money to others)
2.
Donations (money given to others for free)
3.
Foreign exchange loss (loss arising from changes in foreign exchange rates at the end of the year)
4.
Foreign currency translation loss
5.
miscellaneous losses
6.
Other expense items

Chapter 12 Changes in Accounting Policies, Changes in Accounting Estimates, and Corrections of Material Errors

· Retroactive and forward methods, and lump-sum processing method
1.
Types of Accounting Changes
2.
Accounting treatment method for accounting changes
· Changes in accounting policies
1.
Examples of Changes in Accounting Policies
2.
Changes in accounting policies and accounting treatment
· Changes in accounting estimates
1.
Examples of changes in accounting estimates
2.
Accounting treatment for changes in accounting estimates
· Major bug fixes
1.
Types of errors
2.
How to fix errors

Chapter 13: Financial Statement Analysis Made Easy

· Stability analysis
1.
Capital adequacy ratio (BIS)
[Case] ​​Why Equity Capital Costs Are Higher Than Debt Capital Costs
2.
Current ratio (assessment of short-term solvency)
3.
Current ratio (industries with excessive inventory assets must be considered separately from the current ratio)
[Case] ​​Beware of companies with excessive inventory!
4.
Fixed ratio and fixed long-term adequacy ratio (long-term solvency assessment)
5.
Debt ratio
6.
Debt dependency
· Activity analysis
1.
Total asset turnover ratio
2.
Equity turnover ratio
3.
Management capital turnover ratio
4.
Tangible asset turnover ratio
5.
Inventory turnover ratio
6.
Accounts Receivable Turnover Ratio
7.
Accounts Payable Turnover Ratio
8.
Debt turnover ratio
· Growth analysis
1.
Total asset growth rate
2.
Tangible asset growth rate
3.
Current asset growth rate
4.
Inventory asset growth rate
5.
Equity capital growth rate
6.
Sales growth rate
· Profitability Analysis
1.
Total asset pre-tax profit margin
2.
Return on Assets (ROA)
3.
Return on Equity (ROE)
4.
Corporate pre-tax profit margin
5.
Corporate net profit margin
6.
Return on equity before tax
7.
Net profit before capital tax
8.
Return on equity (return on operating capital)
9.
Sales operating profit margin
10.
Pre-tax profit margin
11.
Net profit margin
12.
Cost of goods sold to net profit margin
13.
Interest coverage ratio
14.
Dividend rate
15.
Dividend payout ratio
· Productivity analysis
1.
Labor equipment ratio
2.
capital intensity
3.
added value per employee
4.
Value added rate
5.
Labor income share
Financial analysis using cash flow statements
1.
Cash flow and stock price ratio
2.
Cash flow per share (CPS)
3.
Price-to-cash flow ratio (PCR)
4.
Dividend Payment Ability Multiplier
5.
Cash flow and short-term and long-term solvency ratios
6.
Cash flow to short-term debt ratio
7.
Cash flow to total debt ratio
8.
Financial cost compensation ratio
· Stock price-related ratio analysis

Chapter 14: Easily Find Accounting Terms

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This book focuses on explaining accounting terminology, based on the belief that the most important thing in understanding the exact meaning of terms is the basis of all knowledge.
It is structured so that you can automatically acquire accounting terms and accounting subjects while reading through repeated glossary of terms.
Additionally, we have provided comparative explanations of similar or contrasting terms to help you understand accounting terms accurately.

1.
You have to know how to distinguish between tea and stool to be indignant.
The most basic thing in accounting is to distinguish between debits and credits.

You must be able to distinguish between credit and debit in order to make a proper accounting, and you must make the correct accounting in order to keep accurate ledgers.
2.
You should be able to select the account subject.
Accounting is an essential language for accounting.
Through this, resentment begins and financial statements are prepared.
3.
In practice, resentment is done through vouchers.
The entry is the starting point for recording accounting transactions.
In practice, resentment is done using a ledger called a voucher.
Therefore, you cannot start accounting if you do not know how to issue vouchers.
4.
Once you understand accounting subjects and journal entries, you need to know corporate accounting standards.

Corporate accounting standards provide basic principles and guidance for accounting treatment.
By learning each of these accounting principles, such as accrual accounting, first-in, first-out accounting, depreciation accounting, and cost of goods sold accounting, you will be able to prepare proper balance sheets and income statements, and interpret and analyze them.
5.
The fruit of accounting is the settlement of accounts.
The final step in accounting is closing the books.
Accounting is done on an annual basis, and the process of ending the year is the closing of accounts.
All work for the year is completed once the accounts are settled and financial statements are prepared.
6.
Once you've settled your accounts, you need to know the tax laws.
Tax law is also broadly referred to as tax accounting and falls under the category of accounting.
Taxes are collected through a process called tax adjustment based on net income in financial accounting.
Therefore, if you know the principles of accounting and have prepared financial statements, you should know how to calculate taxes through tax adjustments.
7.
Analyze the completed financial statements.
The purpose of accounting is to understand a company's financial status and management performance to create a better company.
Therefore, you must be able to analyze the company's financial situation based on the numbers in the completed financial statements.