Although the content of this course is complicated, fortunately, the examination format is multiple-choice, and sometimes by luck, you may be able to guess a few more questions correctly and pass. This course is divided into three main parts: accounting knowledge, financial management knowledge and economic law. Now let's dive into Part 1: Accounting Knowledge.
If you have already taken an accounting-related course, or already have some knowledge of accounting, then the first part may be a breeze for you. In general, this section focuses on two financial statements: the balance sheet and the income statement. They are like assets"Spiegel"with"Heartbeat", a complete presentation of the company's financial status and operating results.
However, if you are a beginner, then this part may bother you. There are many technical terms in the subject, and the way to deal with them can be confusing. But remember,"Where there is borrowing, there must be a loan, and there must be equal borrowing"This principle is at the heart of accounting. In terms of arithmetic, it basically only involves addition and subtraction, and the use of multiplication and division is relatively rare.
The first chapter is a general introduction, which reveals the basic assumptions of accounting, the quality requirements of accounting information, the recognition of accounting elements, and the basic principles of accounting measurement attributes. It is like a mentor who leads us through the door of accounting.
Chapters 2 to 4 focus on the content of the balance sheet. Chapter 2 Assets, details the definition, recognition and measurement methods of various asset accounts such as inventory, financial assets, long-term equity investments, fixed assets, investment real estate, right-of-use assets, and intangible assets. This chapter is probably the most challenging part. Chapter 3 Liabilities details the definition, recognition and measurement methods of various liability accounts, including current liabilities, non-current liabilities, debt restructuring, contingencies and borrowing costs. Chapter 4 Owners' Equity details the definition, recognition and measurement methods of various owners' equity accounts such as paid-in capital (share capital), capital reserve, and other comprehensive income.
Chapter 5, Income, Expenses and Profit, focuses on the accounts in the income statement. This part of the content has a significant impact on Asset Valuation Practice II and therefore requires special attention from the participants.