What are the accounting elements

What are the accounting elements ？

The content of accounting elements is a very basic but very important content in the accounting industry , The accounting element is to be able to more clearly distinguish all aspects of the object content of accounting , Therefore, we also need to fully understand the content of accounting elements before dealing with our own work content .

China's accounting standards for business enterprises stipulates , Enterprise accounting elements can be divided into 6 term : assets 、 liabilities 、 Owner's equity 、 income 、 cost 、 profits .

 

among : front 3 Item elements , Directly linked to the recognition of financial position in the balance sheet . It is a static reflection of an enterprise's financial situation ; after 3 Item elements , And the recognition and measurement of operating performance in the income statement , It reflects the operating results of the enterprise from a dynamic perspective .

1、 assets

Assets are usually divided into current assets and Fixed assets Two categories: , The former is like monetary assets 、 stock 、 Accounts receivable, etc , The latter is like long-term investment 、 House equipment, etc . According to the different characteristics of economic turnover , Assets can be divided into current assets 、 long-term investment 、 Fixed assets 、 Intangible assets and deferred assets . in addition , According to a particular goal , Assets are divided into non-financial assets and financial assets , Monetary assets and non monetary assets .

2、 liabilities

Liabilities are generally divided into current liabilities and long-term liabilities according to their repayment speed or repayment time . Current liabilities are those that will 1 Within years ( contain 1 year ) Or the debt to be paid within one business cycle , Mainly including short-term loans 、 Notes payable 、 Accounts payable 、 Advance payment 、 Wages payable 、 Taxes payable 、 Profit payable 、 Other payables 、 Accrued expenses, etc . Long term liabilities are those whose repayment period is 1 In the above ( Not included 1 year ) Or more than one business cycle , Including long-term borrowings 、 Bonds payable 、 Long term accounts payable, etc .

 

3、 Owner's equity

Owner's equity is the ownership of the net assets of an enterprise by investors , Also called shareholders' equity . Owner's equity is the residual claim of the owner on the assets of the enterprise .

4、 income

Income refers to the income formed in the daily activities of an enterprise 、 Which will increase the owner's equity 、 Total inflow of economic benefits unrelated to the capital invested by the owner . therefore , Income is the result of accounting activities .

 

5、 cost

Accounting , cost It refers to what happens in the daily activities of the enterprise 、 Will result in the reduction of owner's equity 、 The total outflow of economic benefits unrelated to the distribution of profits to owners . As an accounting element, expenses can be regarded as a deduction of income , It can also be said that expenses are assets consumed or transferred out .

6、 profits

Profit refers to the operating results of an enterprise in a certain accounting period , It's a harvest . If the enterprise realizes the profit , It indicates that the owner's equity of the enterprise will increase , Performance has been improved ; conversely , If the enterprise incurs a loss ( That is, the profit is negative ), It indicates that the owner's equity of the enterprise will decrease , Performance has declined .