TUGAS

THE BALANCE SHEET

Financial statement are the final product of the accounting prosces . they provide information on the financial condition of a company. The balance sheet one type of financial statement. Provides a summary of what a company owns and what it owes on one particular day.

Assets represent everthing of value that is owned by a business, such as property, equipment, and accounts receivable. On the other hand, liabilities are the debst that a company owes-for example, to suppliers and banks. If liabilities are substacted from assets , the amount remaining is the owners share of a business. This is known as owners or stockholder equity.

One key to understanding the accounting transaction of a business is to understand the relationship of its assets, liabilities, and owner equity. This is often represented by the fundamental accounting equation : assets equal liabilities plus owners’ equity.

ASSETS = LIABILITIES + OWNERS EQUITY

These three factor are expressed in monetary terms and therefore are limited to items that can be given a monetary value. The accounting equition always remains in balance ; in other word, one side must equel the other.

The balance sheet expands the accounting equation by providing more information about the assets, liabilities, and owner equity of a company at a specific time (for example, on Desember 311,1993) it is made up of two parts. The firsat part list the company assets, and the second part details liabilities and owners equeity. Assets are divided into current fixed assets, . cash, account receivable and inventory are all current assets. Property, buildings, and equipment make up the fixed assets of a company. The liabilities section of the balance sheet is often divided into current lianilities(sch as account payable and income taxes payable) and longterm liabilities(such as bonds and long-term notes)

The balance sheet provides a financial pictures of a company on a particultural date, and for this reason it is useful in two important areas. Internally, the balance sheet provides managers wiyth financial information area. Internally, the balance sheet provides managers with financial information for company decision making. Externally, it gives potential investor data for evaluating the companys financial position.

AN ACCOUNTING OVERVIEW

AN ACCOUNTING OVERVIEW

Accounting is frequenly called the language of business because of its ability to communicate financial information about an organization. Various interested parties, such as managers potencial investors, creditor, and the government . depend on a companys accounting system , to help dthem make informed financial decisions. An effective accounting system, therefore, must include accurate collecting,recording, classfing. Summaririzing, interpreting, aaand reporting of information on the financial status of an organization.

In order to achieve a standardized system, the accounting process follows accounting principles and rules, regardless of the type of business or the amount of many involved , common procedures afor handling and presenting financial information are used Incoming Money and out going money are carefully monitored , and transactions, are summarized in financial statement , with reflec the major financial activities of an organization.

Two common financial statement are the balace sheet and the income statement. The balance csheet shows the financial positionof a company at one point in time, while the income statement shows the financial performanceof a company overa period of time . financial statement allow interested parties to compare one organization to antherand/or to cmpare accountingperiods whitin one organization. For example, an investor may compare the most recent income statement of two corporations in order to find out which one would be a better investment

People who specialize in the field of accounting are known as accountants. In the united States, accountant are ussualy classifield as public. Private , or government. Public accountant work independently and provide accounting services such as auditing andtax corporation to companies and individuals. Pulic accounting may ear the title OF CPA by Fulfilling rigorus requirement . private accountant work solely for private companies or corporations trhat hare them to maintain financial records, and and governmental accountant work for governmental agency or bureus. Both private and governmental accountant are paid on a salary basis, wheareas public accountant receiveiw fees for their services.

Through effective application of commonly accepted accounting system private, public, and governmental accountant provide accured and timely financial information that is nesserery for organization decision making.

MULTINATIONAL CORPORATIONS

MULTINATIONAL CORPORATIONS

A company often becomes involved in international trade by exchanging goods or services with another country-importing raw materials it may need for production or exporting finished product to aforeign market. Estabilishing these trade relationships is he fist step in the development of a multinational business. At this stage, however ,the corporations emphasis is still on the domestioc market. As trade exspands, the corporation’s dealing’s with companies or people outside the “homecountry of that corporation increase.

The corporation then begins to view the whole world as a base for production and marketing operations. The next step in the development of a multinational business is focusing on the world market. The Company may establish a foreign assembly plant, engage in contact manufacturing, or builde a foreign manufacturing company or subsidiary. Therefore. A multinational corporationis a company that is primarily based in one country and has production and marketing activities in foregn countries.

Since world War II.multinational corporations have grown rapidly. The names and product of many of the multinational have become well known in the world marketplace : international Business Machines (IBM) . Royal Ducth shell , Panasonic ,coca-cola nad Volkwagen. Coca-cola. For example, now has operations in more than 180 countries.

A multinational corporation operates in a complex business environment cultural.cosial.economic ,political and technological system vary from country to country. In order to operation sucsesfully. Multinational company needs a basic understanding and apresiasion of the foreign business environment.