Summary Of Common Confusing Financial Knowledge Of Wuxi Registered Bookkeeping Company

Many basic knowledge in accounting is easy to be confused. As a financial officer, we must understand every financial concept and familiarity with the accounting process.

1. Book value, book balance and book value.

Book value refers to the net balance of the book balance of a subject (usually an asset class).

The book balance refers to the actual balance of a subject's account and does not deduct the item as a reserve for that subject.

Net book value refers to the depreciated value of fixed assets = the original value of fixed assets - the accumulated depreciation (excluding the amount of impairment allowance).

2. Physical inventory system and perpetual inventory system.

Perpetual inventory system is also known as "accounting system".

It refers to a kind of inventory method that the daily changes in the physical assets must be registered in the relevant books on a daily basis according to the accounting documents, and at any time, the amount of book balances is settled.

By adopting this inventory method, we need to set up the amount amount ledger and record in detail according to the items of physical property, so as to timely reflect the income, issue and balance of various physical property.

Its advantage is that it is conducive to strengthening the management of physical property.

The physical inventory system is also known as the "periodic inventory system", also known as the "deposit based selling system" or the "dependent consumption system".

It refers to an inventory method that only registers the increase in physical property in the account book, does not reduce the number of entries, and determines the number of physical assets in the current period through physical inventory.

The formula is as follows:

This period reduces the number of initial balances and the increase in the current period.

Advantages: the physical inventory system can simplify the shortcomings of daily work: it can not reflect the situation of inventory and property at any time, nor is it conducive to strengthening the management of property and materials.

For example, in general, some enterprises are usually unable to accurately measure the quantity of materials, such as seasoning for hotel kitchens, concentrate materials consumed by mining enterprises, clean coal used by coking enterprises, etc., but if the inventory is measured at the end of the term, it is relatively simple.

3. Accounts receivable and other receivables

Accounts receivable, in other words, refers to the calculation of account pactions related to main business income, while other receivables are accounts for pactions which are not related to the main business.

For example, the credit account of a hotel customer should be included in the accounts receivable, and the deposit should be included in other receivables. The credit account of the design institute should be included in the accounts receivable, and the insurance company's compensation should be included in other receivables. In fact, the essence of distinguishing him from two is the main business of the enterprise.

4, capital premium and equity premium.

Capital premium refers to the amount of capital invested by an investor over the amount of his registered capital in the process of raising funds.

The amount of capital delivered by a limited liability company investor is larger than that calculated according to the proportion of capital contribution stipulated in the contract and agreement.

The equity premium refers to the amount of the actual amount received by the Limited by Share Ltd when the shares are issued at a premium.

5. Retained earnings and residual earnings

Retained earnings is a historical concept, which refers to the accumulation or retention of enterprises from the net profits realized over the years.

According to the company law and

"Stipulates that: according to the articles of association of the company, the company will distribute profits after taxes, and on the one hand, it will extract surplus reserves according to the provisions of the state laws, retain the profits realized in the current year in the enterprise, form internal accumulation and become an integral part of retained earnings; on the other hand, allocate profits or dividends to investors, and allocate the remaining part of profits or dividends as an undistributed profit, which will be allocated for the following year.

This part is also an integral part of the retained earnings of enterprises.

The residual income (also known as economic profit) refers to the difference between the accounting profits of a period and the cost of capital during that period, and is the income that the enterprise creates above the market average return.

From the perspective of economics, residual income is a measure of the surplus of profits generated by capital investment over capital costs. The formula is as follows: residual income = accounting profit - capital cost = investment capital * (investment capital return - capital cost ratio).

The formula clearly shows that residual profit is a premium for accounting profits exceeding investment capital opportunity cost.

From the meaning of the two, we can see that retained earnings are a kind of distribution of business results under the theory of accounting value distribution, a state of capital possession, and surplus income is a net surplus of enterprises in the theory of economic value creation, and a net flow of future cash.

From this we can see that retained earnings contain a kind of accumulated value, which is past tense, while surplus income embodies a kind of reengineering value, which is the future tense.

6, main business income and

Accounting is relatively difficult to understand the two subjects. Actually, we do not need to read those boring definitions. It can be understood literally. The main business is that the main source of income of your business is to earn money from the business. For example, the steel and iron enterprises earn their income by selling steel products. The pharmaceutical companies earn their income by buying medicine. Wholesale is sold by selling goods, but some enterprises will produce some scraps in the process of production, some scrap, and some very small by-products. These are not the main income of the enterprises, but are accompanied by other income. That is to say, they are far from the main business. Generally speaking, these revenues are included in other business income. These two concepts are first made.

7, bank acceptance and commercial acceptance bill.

A commercial acceptance bill is issued by the drawer and is committed to pay the amount of the bill on the day when the bill is due.

A bank acceptance bill means a bank's commitment to pay the amount of the bill on the day when the bill is due.

The two biggest differences lie in the fact that the commitment payment is different from the maturity date. One is that the enterprise is a bank. Then the bank acceptance bill is more secure than the commercial credit of the general business. At present, the bank accepts the draft in our country, but there are also some good credit listed companies issuing the commercial acceptance bill.

8.

Capital expenditure

The income expenditure is different from the capital expenditure. The former is compensated by the business income of the year. The latter is first recorded as assets, and the annual cost is spread annually through depreciation or amortization.

The difference between income expenditure and capital expenditure is to correctly calculate the profits and losses of each year and reflect the value of assets correctly. Capital expenditure refers to the expenditure that exceeds one year or one business cycle, that is, the expenditure is not only for the purpose of obtaining the current income, but also for the purpose of obtaining the proceeds of the subsequent periods. The income expenditure refers to the expenditure that does not exceed one year or one business cycle, that is, the expenditure is only for the purpose of obtaining the current income; capital expenditure is that the expenditure is not only for the purpose of obtaining the profits of the current period.

9, business discount and cash discount.

Commercial discount refers to the deduction of the buyer's price on the basis of the original price of the commodity price list in order to promote sales.

The tax law stipulates that if sales and discounts are separately stated on the same invoice, the value added tax can be levied according to the sales after the discount. If the discount is invoiced separately, no matter how it deals with the financial affairs, no discount can be deducted from the sales volume.

Since such discount occurs at the same time when the sale is realized, both the buyer and the seller have to deduct the price after the trade discount, so the accountant does not need to make separate accounting treatment.

And because the invoice price is the actual selling price after deducting the commercial discount, it can calculate the output tax according to the invoice price.

Cash discount refers to a debt deduction made by the buyer to the buyer on the basis of the agreement, in order to encourage the buyer to repay the goods early, when the seller sells goods or services on credit.

Cash discount occurs after sales and is a kind of financing charge. Therefore, when calculating the output tax, cash discount can not be deducted from sales.

10. Registered capital and paid in capital

Registered capital is a capital raised by the company in the course of its establishment and registered by the company registration organ. It is the amount of capital subscribed or subscribed by the shareholders.

The paid in capital is the total amount of shareholders' capital contributions actually received by the company when it is established, and it is the capital owned by the company.

After the company subscribes its shares, it can be paid all at once and can be paid in installments, so the paid in capital may be less than the registered capital in a certain period of time, but the registered capital of the company should be consistent with that of the paid in capital.