What are the characteristics of accounting elements Characteristics of accounting elements

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Six Accounting Elements:

Assets, Liabilities, Owners' Equity, Income, Expenses, Profits.

Each accounting element has its own characteristics.

Assets refer to the resources that are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise as a result of past transactions or events.

Condition. It must be a transaction or event formed by the business in the past.

Must be owned or controlled by the enterprise.

It is expected to bring economic benefits to the business.

Contents: Current assets, which refer to assets that can be realized or consumed within 1 year or a normal business cycle {cash on hand, bank deposits, accounts receivable and prepaid, inventory: (raw materials, materials in transit, production costs)}.

Liabilities refer to the current obligations of the enterprise arising from past transactions or events that are expected to result in the outflow of economic benefits from the enterprise. Contents: Current liabilities refer to liabilities that will be repaid within a normal business cycle of one year or more {short-term borrowings, notes payable, accounts payable, accounts receivable, employee remuneration payable, dividends payable, taxes payable, other payables}.

Owner's equity, also known as shareholders' equity, refers to the residual equity enjoyed by the owner after deducting liabilities from the assets of the enterprise, and its amount is the balance of assets minus liabilities, that is, the ownership of the net assets of the enterprise by investors. **: Capital invested by the owner, gains and losses directly credited to the owner's equity, retained earnings.

Content {Paid-in capital, capital reserve, surplus reserve, undistributed profits.

Income refers to the total inflow of economic benefits formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and are not related to the capital invested by the owner.

Features: Income is formed from the day-to-day activities of the business.

The acquisition of income will inevitably lead to the inflow of economic benefits.

Income includes only the inflow of economic benefits from the enterprise.

Income can lead to an increase in the owner's equity of the business.

Contents: Sale of goods, provision of services and transfer of the right to use assets according to nature.

Expenses refer to the total outflow of economic benefits incurred by the enterprise in its daily activities that will lead to a decrease in the owner's equity and are not related to the distribution of profits to the owner. Content: Costs, administrative expenses, sales expenses and financial expenses incurred in operating business according to functional classification.

Profit refers to the operating results of an enterprise in a certain accounting period {net income minus expenses, gains and losses directly included in the current profit}.

Assets and equity: From a quantitative point of view, if there is a certain amount of assets, there must be a certain amount of equity; Conversely, if there is a certain amount of equity, there must also be a certain amount of assets.

There is a necessarily equal relationship between total assets and total equity, assets = liabilities + owners' equity.

The characteristics of the accounting elements are as follows:

1. Assets should be resources owned or controlled by the enterprise (ownership, right to use).

2. The assets are expected to bring economic benefits to the enterprise (eliminated, past the shelf life).

3. Assets are formed by past transactions or events of the enterprise (actual assets, predicted future assets).

Accounting elements: Accounting elements are the basic classification of accounting objects, the concretization of accounting objects, and the basic units used to reflect the financial status and operating results of accounting entities.

Accounting elements refer to the parts of the accounting object, the basic classification according to the economic characteristics of the transaction or event, and also refers to the basic classification of the accounting object according to the economic nature, the specific object of accounting and supervision, the main factor that constitutes the specific content of the accounting object, and the basic element that constitutes the accounting statement.

Assets:

Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Assets can be divided into current and non-current assets.

Among them, current assets refer to assets that can be realized or consumed within a business cycle of one year or more than one year, mainly including cash in hand, bank deposits, receivables and prepayments, inventories, etc.; Non-current assets refer to assets that can only be realized or consumed in a business cycle of one year or more than one year, mainly including long-term equity investment, fixed assets, and intangible assets.

The characteristics and composition of each accounting element are as follows:

The static accounting elements include assets, liabilities and owners' equity.

The content of static accounting elements includes assets, liabilities and owners' equity, in which assets refer to the past transactions or events of the enterprise, owned or controlled by the enterprise, and are expected to bring economic benefits to the enterprise.

The current obligations that are expected to lead to the outflow of economic benefits from the enterprise can be mainly divided into current liabilities and non-current liabilities, and the owner's equity refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise, which mainly includes paid-in capital, capital reserve and surplus reserve. Static accounting elements refer to the accounting items used to describe the operating conditions of an enterprise in a certain period of time.

An important branch of accounting. Accounting and supervising the use of funds, funds, costs and expenses of the enterprise, as well as the financial results of the operation, in order to analyze the gains and losses, improve the operation and management, and improve the economic efficiency of a management activity. The specific content varies depending on the nature of the enterprise and the complexity of the economic business.

With enterprises as the main body, it is the object of its pre-spine capital movement. It is a management activity aimed at improving the economic efficiency of an enterprise. Different from ** and non-profit organizations, the establishment and existence of enterprises are based on profits.

Therefore, enterprise accounting, as an important part of enterprise management, must serve the purpose of achieving profits for enterprises.

Main features: 1. The profitability and solvency of the enterprise must provide information to meet the decision-making needs of investors and creditors.

2. In terms of internal management, the efficiency of resource use has become a service to improve the economic efficiency of the enterprise. It is necessary not only to provide relevant information for enterprise management, but also to carry out economic development, formulate economic plans and budgets, and participate in economic decision-making.

3. Use the accrual of rights and responsibilities as the basis for bookkeeping, and correctly calculate profits and losses.

The six elements of accounting mainly include assets, liabilities, owners' equity, income, expenses, and profits.

Accounting elements are the basic units that make up accounting statements, the basic classification of accounting objects, and the concretization of accounting objects. Among them: the first three elements are directly related to the recognition of the financial position in the balance sheet.

It is a static reflection of the financial status of the enterprise; The latter three elements are related to the recognition and measurement of operating performance in the income statement, which reflects the operating results of the enterprise from a dynamic perspective.

Accounting elements. 1. Assets refer to the resources formed by past transactions or events and owned or controlled by the enterprise, which are expected to bring economic benefits to the enterprise.

2. Liabilities refer to the current obligations formed by past transactions and events, and the performance of such obligations is expected to lead to the outflow of economic benefits from the enterprise.

3. Owner's equity, also known as net assets, refers to the residual equity enjoyed by the owner of the enterprise after the total assets of the enterprise minus the total liabilities.

4. Income refers to the total inflow of economic interests formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and have nothing to do with the owner's capital investment.

5. Expenses refer to the total outflow of economic benefits incurred by the enterprise in its daily activities, which will lead to a decrease in the owner's equity and have nothing to do with the distribution of profits to the owner.

6. Profit refers to the operating results of an enterprise in a certain accounting period. Profit includes the net amount of income minus expenses, gains and losses directly included in the current profit (non-operating income, non-operating expenses), etc.

Accounting elements include assets, liabilities, owners' equity, revenue, expenses, and profits. Among them, the first three categories belong to the accounting elements that reflect the financial position and are listed in the balance sheet; The latter three categories are accounting elements that reflect operating results and are presented in the income statement.

1. Assets are resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

2. Liabilities are formed by past transactions or events of the enterprise, which are expected to lead to the outflow of economic benefits from the current obligations of the enterprise.

3. Owner's equity is the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise.

Balance sheet.

4. Income is the total inflow of economic interests formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and have nothing to do with the owner's invested capital.

5. Expenses are the total outflow of economic benefits formed by the enterprise in its daily activities, which will lead to the reduction of owners' equity and have nothing to do with the distribution of profits to owners.

6. Profit is the operating results of an enterprise in a certain accounting period.

Income statement.