ACCA F3考试知识点汇总.docx

2015 年 12 月ACCAF3考试知识点汇总Types of business entity A business can be organized in one of the several ways: Sole trader a business owned and operated by one person. The simple form of business is the sole trader. This is owned and managed by one person, although there might be any number of employees. A sole trader is fully personall y liable for any losses that the business might make. Partnership a business owned and operated by two or more people. A partnership is a business owned jointly by a number of partners. The partners are jointly and severely liable for any losses that the business might make. (Traditionally the big accounting firms have been partnerships, although some are con verting their status to limited liability companies.) Limited Liability Company a business owned by many people and operated by m any ( though not necessarily the same) people. Companies are owned by shareholders. Sha reholders are also known as members. As a group, they elect the directors who run the b usiness. Companies are always limited companies. In summary, types of business entity should be differentiated in Ownership; Operation right and Liability for the business to undertake. For all three types of entity, the money put up by the individual, the partners or the shareholders, is referred to as the business capital. In the case of a company, this capital is divided into shares. Business Transactions: Main types of business transactions for a business include: Purchase of inventory for resale Sales of goods Purchase of non-current assets Payment of expenses Introduction of new capital to the business Withdrawal of funds from the business by the owner Cash and credit transactions: Cash transactions: the buyer pays for the item immediately or possibly in advance. Credit transactions: the buyer does not have to pay for the item on receipt, but is all owed some time ( a credit period) before having to make the payment. Definition of accounting Recording : transactions must be recorded as they occur in order to provide up-to-dat e information for management. Summarizing: the transactions for a period are summarized in order to provide inform ation about the company to interested parties. Types of accounting Financial accounting vs management accounting Accounting reports users include: Management: Need information about the companys financial situation as it is curre ntly and it is expected to be in the future. This is to enable them to manage the business efficiently and to make effective decisions. Investors: The providers of risk, capital and their advisers are concerned with the ris k inherent in, and return provided by, their investments. They need information to help th em determine whether they should buy, hold or sell. Trade payables/ Suppliers: Suppliers and other trade payables. Suppliers and other tr ade payables are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade payables are likely to be interested in an enterprise over a shorter period than lenders unless they are dependent upon the continuanc e of an enterprise as a major customer. Shareholders: Shareholders are also interested in market value of shares as well as information which enables them to assess the ability of the enterprise to pay dividends. Lenders: Lenders are interested in information that enables them to determine wheth er their loans, and the interest attaching to them, will be paid when due. Customers: Customers have an interest in information about the continuance of an e nterprise, especially when they have a long term involvement with or are dependent on, th e enterprise. Government and their agencies: Governments are their agencies are interested in the allocation of resources and, therefore, the activities of enterprises. They also require infor mation in order to regulate the activities of enterprises, determine taxation policies and as the basis for national income and similar statistics. Employees: Employees and their representative groups are interested in information a bout the stability and profitability of their employers. They are also interested in informati on which enables them to assess the ability of the enterprise to prove remuneration, retire ment benefits and employment opportunities. General public: Enterprises affect members of the public in an variety of ways. For example, enterprises may make a substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the enterprise and the range of its activities. The business entity concept The business entity concept States that financial accounting information relates only to the activities of the busin ess entity and not to the activities of its owner. The business entity is treated as separate from its owners. Financial Statements include: - a statement of financial position at the end of the period - a statement of comprehensive income for the period - a statement of changes in equity for the period - statement of cash flows for the period - notes, comprising a summary of accounting policies and other explanatory notes The statement of financial position: Statement of Financial Position: showing the financial position of a business at a poin t of time. The Vertical format of the SFP: (Statement of Financial Position as at 31 December 2007) The top half of the balance sheet shows the assets of the business. The bottom half of the balance sheet shows the capital and liabilities of the busines s. A Statement of financial position at the end of the period (Balance Sheet): W Xang Balance Sheet as at December 31 20X6 The horizontal format of the SFP: (Statement of Financial Position as at 31 Decembe r 2007) The left half of the balance sheet shows the assets of the business. The right half of the balance sheet shows the capital and liabilities of the business. W Xang Statement of Financial Position as at 31 December 20x6The accounting equation Financial accounting is based upon a very simple idea: The amount of resources supplied by the owner is called capital. The actual resources that are then in the business are called assets. Usually, people other than the owner have supplied some, of the assets, for example, a supplier supplies stock of goods on credit. The business is said to owe a liability towards these suppliers. The following accounting equation always holds true: The accounting equation: ASSETS = PROPRITORS CAPITAL + LIABILITIES - Any point in time, the assets of the business will be equal to its liabilities plus the capital of the business; - Assets less liabilities equal the capital of the business, which is known as netassets. - Each and every transaction that the business makes or enters into has two aspects to it and have a double effect on the business and the accounting equation. This is known as the duality concept.Duality concept: Each and every transaction that the business makes or enters into ha s two aspects to it and has a double effect on the business and the accounting equations. This is known as duality concept. if A=C+L=0 . C=A-L. Illustration: 1). Carl sets up in business by opening a coffee shop Carls Coffee. He puts $5,00 0 into a business bank account. The opening accounting equation is: Assets (Cash in bank)= Capital + Liabilities ($5,000) = ($5,000) + ($0) 2). Carl buys furniture (chairs and tables) for the shop for $1,500, paying the supplie r out of the business bank account. The accounting equation after this transaction is: Assets Capital + Liabilties ( Cash in bank $3,500) = ($5,000) ($0) (Furniture $ 1,500) 3). Now Carl spends a further $2,000 to buy coffee-making equipment and $800 on crockery and cutlery, paying cash out of the business bank account. The accounting equation after this transaction is: Assets Capital + Liabilties (Cash in Bank $700) = ($5,000) ($0) (Equipment $2,000) (Fitting & Fixture $800) (Furniture $1,500) 4). Carl persuades his bank to lend $1,000 to develop the business. The bank loan is accounted for as a liability of the business. The accounting equation is now as follows: Assets Capital + Liabilties (Cash in Bank $1,700) = ($5,000) ($1,000) (Equipment $2,000) ( Fitting & Fixture $800) (Furniture $ 1,500) 5). Carl now buys coffee, tea, milk, sugar, biscuits and cakes for $700, and pays in cash from the business bank account. The accounting equation is now as follows: Assets Capital + Liabilties (Inventory $700) = ($5,000) ($1,000) (Equipment $2,000) (Fitting & Fixture $800) (Furniture $1,500)(Cash in Bank $ 1,000) 6). In his first day of trading, Carl uses up $650 of his inventory, and makes sales t otaling $1,050. All his sales are in cash. The accounting equation at the end of the day is as follows: Assets Capital + Liabilities (Inventory $50) = (Beginning $5,000) ($1,000) (Equipment $2,000) ( Profit $400)(Fitting & Fixture $800) (Furniture $1,500) ( Cash in bank $2,050) Classification of Assets and Liabilities Assets: An asset is something owned or controlled by the business that will result in future economic benefits to the business. ( an inflow of cash or other assets.) Such as: Current assets:are assets owned by the business with the intention of turning them int o cash within one year (accounting period). This definition allows inventory or receivables to quality as current assets, even if the y may not be realized into cash within 12 months. Non-current asset: is an asset held for and used in operation(rather than for selling to customer), with a view to earning income or making profits from its use, for over more than one year ( accounting period). Liability: is something owed by the business to someone else. Current liability: These include the debts of the business that are repayable within the next 12 months. Non-current liabilities: are liabilities that do not need to be settled for at least one ye ar. (excluding the current portion of the debt) Capital: Capital is a type of liability. It represents the owners net investment in the business. Capital appears as a credit balance on the balance sheet. Assets Liabilities = PROPRIETORS CAPITAL Net Assets =( Total )Assets (Total) Liabilities Capital (at SFP date) = Capital introduced + Profit Drawings Drawing: Drawings are any amounts taken out of the business by the owner for their own personal use. Drawings will reduce the capital balance reported on the balance sheet. Include: Money taken out of the business Goods taken for personal use Personal expenses paid by the business Income statement Income statement: Mr. W Xang Income statement for the year ended 31 December 20X6 Showing the financial performance of a business over a period of time. Reports revenue and expenses for the period. The sales revenue shows the income from goods sold in the year The cost of buying the goods sold must be deducted from the revenue The current years sales will include goods bought in the previous year, so this ope ning inventory must be added to the current years purchases. Some of this years purchases will be unsold at 31/12/20x6 and this closing invento ry must be deducted from purchases to be set off against next years sales. The first part gives gross profit. The second part gives net profit. The I.S. prepared following the accruals concept. Accrual concept: Income and expenses are recorded in the I.S. as they are earned / incurred regardles s of whether cash has been received/ paid. (Sales revenue: income from goods sold in the year, regardless of whether those good s have been paid for.) Relationship between a statement of financial position and a statement of income The balance sheets are not isolated statements, they are linked over time with the in come statement As the business records a profit in the income statement, that profit is added to the capital section of the balance sheet, along with any capital introduced. Cash taken out of the business by the proprietor, called drawings, is deducted. Illustration the accounting equation: The transactions: Day 1 Avon commences business introduction $1,000 cash. Day 2 Buys a motor car for $400 cash. Day 3 Buys inventory for $200 cash. Day 4 Sells all the goods bought on Day 3 for $300 cash. Day 5 Buys inventory for $400 on credit. SFP at the end of each days transactions: Solution: Day 1 Assets (Cash $1,000) = Capital ($1,000) + Liabilities ($0) Day 2 Assets (Motor $400) = Capital ($1,000) + Liabilities ($0) (Cash $600) Day 3 Assets ( Inventory $200) = Capital($1,000) + Liabilities ($0) (Motor $400) (Cash $400) Day 4 Assets ( Motor$ 400) = Capital + Liabilities ($0) (Cash $700) (Beginning$1,000) (Profit $100) Day 5 Assets (Inventory $ 400) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)($400) (Cash $700) (Profit $100) Avon Statement of Financial Position as at end of Day 5Example: Continuing from the illustration above, prepare the SFP at the end of each day after accounting for the transactions below: Day 6 Sells half of the goods bought on Day 5 on credit for $250. Day 7 Pays $200 to his supplier. Day 8 Receives $100 from a customer. Day 9 Proprietor draws $75 in cash. Day 10 Pays rent of $40 in cash. Day 11 Receives a loan of $600 repayable in two years. Day 12 Pays cash of $30 for insurance. Your starting point is the SFP at the end of Day 5, from the illustration above. Prepare: SFP at the end of Day 12 I.S. for the first 12 days of trading. Solution: Day 6 Assets (Inventory $ 200) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)($400)(Cash $700) (Profit $150) (A/Receivable$250) Day 7 Assets (Inventory $ 200) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)($200) (Cash $500) (Profit $150) (A/Receivable$250) Day 8 Assets (Inventory $ 200) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)($200) (Cash $600) (Profit $150) (A/Receivable$150) Day 9 Assets (Inventory $ 200) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)($200) (Cash $525) (Profit $150)(A/Receivable$150) (Drawing $75) Day 10 Assets (Inventory $ 200) = Capital + Liabilities ( Motor$ 400) (Beginning$1,000)