1. UNIT THREE
BUSINESS TRANSACTIONS
AND FINANCIAL STATEMENTS

2. Two kinds of assets
Current assets: exist in a short time.
(Cash,checks, money orders…)
Fixed assets: exist in a long time .
(land, buidings and machinery)
Assets can be
• Tangible
• Intangible

3. Two kinds of store
1. Chain stores belong to the parent
company.
2. Franchise stores do not belong to the
parents company. They buy the license
from the parents company and set up a
business.

4. Calendar year
Two kinds of
Accounting
Period
Fiscal year
Company Last month of fiscal year
American Greetings February
Caesar ‘s World July
Coleco Industries December
Walt Disney Productions September

5. A SERVICE COMPANY
Lachong university HCMC University Medical Center
Hawaii Travel Agency New World Hotel

6. A MERCHANDISING COMPANY
COOP MART
SUPERMARKET
FAHASA BOOK STORE

7. A MANUFACTURING COMPANY
NOKIA FACTORY COTTON MILL
KINHDO BAKERY

8. Three principles of accounting
• An accounting system must provide
consistency in the accumulation and
recording of financial data.
• An accounting system must make it possible
to compare the data issued to management,
government and the public.
• An accounting system must provide the
basis for arriving at decisions and solution in
handing the coperational and financial
problem of the organization.

9. The Income Statement
A financial statement that summarizes the
amount of revenues earned and expenses
incurred by a business over a period of time
The Statement of Owner’s equity
Shows the changes in the owner’s capital
account over a period of time
The Balance Sheet
The purpose of the balance sheet is to show
the financial position of a business on a certain
date. Note that the capital account on the
balance sheet comes from the ending balance
shown on the statement of owner’s equity

10. Balance sheet
Assets = Liabilities + Owner’s Equity
Capital Account
Investments Expense Revenue
Withdrawals
(recorded directly Accounts Accounts
Account
in capital account)
Shown on Statement of Shown on
Owner’s Equity Income Statement

11. Shannon Realty Shannon Realty
Income Statement Statement of Owner’s Equity
Revenues
Commissions Earned $3,500 Add: Investments by John $50,000
Expenses Net income for the month 2,100
Equipment Rental Expense $1,000 Subtotal $52,100
Wages Expense 400 Less: Withdrawals by John 600
Total Expenses 1,400
Net Income $2,100 John , capital $51,500
Shannon Realty
Balance Sheet
Assets Liabilities
Cash $22,100 Accounts payable $600
Accounts Receivable 2,000 Owner’s Equity
Buiding 28,000 John, capital 51,500
Total $52,100 Total $52,100

12. To whom are financial statements sent?
 They are sent to owners, management
personnel, labor unions, appropriate
government bureaus, creditors and the
general public.
Give an example of a financial report
distributed within the company?
 A cash report, for example, may be required
daily by some companies, but only weekly or
monthly by others.

13. THANKS FOR LISTENING

14. MEMBERS OF GROUP 13
1. LÝ THỊ VĨNH NGỌC
2. VÕ THANH THẢO
3. TRẦN THỊ PHƯƠNG THI
4. TRƯƠNG KIM PHỤNG
5. NGUYỄN THỤY MAI TRINH