Traditional Culture Encyclopedia - Traditional culture - Assets, liabilities and owners' equity are the accounting elements of an enterprise ()
Assets, liabilities and owners' equity are the accounting elements of an enterprise ()
According to the Accounting Standards for Business Enterprises, the elements of business accounting include assets, liabilities, owners' equity, income, expenses and profits.
Among them, assets, liabilities and owners' equity are directly related to the confirmation of financial status in the balance sheet, which is a static reflection of the financial status of the enterprise; The confirmation and measurement relationship between income, expenses, profits and operating results in the income statement reflects the operating results of enterprises from a dynamic perspective.
Extended data
Advantages and disadvantages of enterprise accounting elements
1, advantages
(1) Accounting elements and accounting objects are harmonious in theory.
China's accounting circles have gradually reached a * * * understanding of the accounting objects of enterprises: there are two kinds of capital movements of enterprises: static and dynamic. As the basic classification of accounting objects, accounting elements belong to the second level of accounting objects.
(2) Accounting elements are consistent with accounting equation and financial statement theory.
The quantitative relationship among assets, liabilities and owners' equity is summarized as the first accounting equation: assets = liabilities+owners' equity, which is also the theoretical basis for establishing the balance sheet.
The quantitative relationship among income, expense and profit is summarized as the second accounting equation: income-expense = profit, which is also the theoretical basis for establishing the income statement.
2. Deficiencies
(1) It is feasible to treat gains and losses as accounting elements respectively. However, because the definition of "profit" is vague, it is easy to cause multiple contradictions.
(2) Operating income is only the main part of enterprise income, which is not equal to income. The definition of "income" here makes the mistake of matching the big concept with the small content.
Baidu Encyclopedia-Six Elements of Accounting
Baidu Encyclopedia-Accounting Elements
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