The subject of accounting, its objects and their classification
In a generalized form, the subject of accountingrepresents the economic activities of the organization, taking into account resources and results. Each individual enterprise can be considered its subject. The subject of accounting and its objects are provided by two groups. The first can be attributed to those who are responsible for ensuring the organization of economic activity. It includes the property and liabilities of the enterprise. The subject of accounting also includes objects that make up economic transactions, which entail changes in the functioning capital and sources of its origin. The resources of each organization can also be considered from two sides. From the first - the composition of property and species included in active capital, and on the other - sources that contributed to its emergence and formation.
Studying the subject of accounting, you canto conclude that the property of the enterprise is divided into two main types. This is an active and passive capital, which also has two main subgroups. The first type includes non-current assets, combining long-term financial investments, unfinished construction and fixed assets. Also include a profitable investment in various material values. In addition, the capital of the property includes current assets, which combine tangible assets, short-term financial investments and accounts receivable. Passive capital divides its own and borrowed property. The second group includes long-term and short-term liabilities. It is necessary to consider in more detail the subject of accounting and objects classified according to the composition and functions that they perform. The composition of long-term assets:
1. Fixed assets used for more than one year. They eventually wear out. These include equipment, buildings, working machines and other vehicles.
2. Intangible assets are not valuable objects, but have a value estimate. This may be the right to own certain intellectual property or business reputation.
3. The incomplete construction includes the costs of erecting or acquiring objects of a capital nature.
4. Investing in tangible assets: rental, leasing, leasing.
5. Long-term financial investments can be loans or securities with a validity of more than one year.
Short-term assets include:
1. Material current assets: products that did not pass through all processing stages, and other products, such as fuel and raw materials.
2. Receivables from customers or customers for work performed or goods provided.
3. Short-term investments - term deposits or loans under promissory notes for a period of less than a year.
4. Cash held by the enterprise.
After studying this material, it is recommended that you familiarize yourself with what accountancy is.