Financial Accounting samenvatting
We grijpen eerst even terug naar Accounting I om alles op een rijtje te zetten wat belangrijk
is en terugkomt:
Balance sheet
Balance sheet 31th of December 2023
Debit Credit
Assets (what we own) Liabilities (what we owe)
Current assets (<1 yr) Current liabilities (<1yr)
Accounts receivables, inventory Account payables
Cash (cash flow statement)
Long-Term Liabilities (>1yr)
Long term assets (>1yr) Owner´s equity
Property, Plant & Equipment Shared/contributed Capital
Buildings (het geld van investeerders in een bedrijf
Intangible Assets dmv aandelen = aangetrokken kapitaal)
Other Assets
Retained Earnings
(the amount of profit a company has left
over after paying all its direct costs, indirect
costs, income taxes and its dividends to
shareholders).
Total Total
● Bij twee balansen naast elkaar gaan ze altijd van 1/1 (begin) naar 31/12 (einde)
● Difference between cash in and outflows go to the ´Cash´ journal on the balance
sheet.
● Difference between revenue and expenses (=profit/loss) go to the ´Equity´ journal on
the balance sheet.
Called-up capital = the amount of share capital shareholders owe, but have not
paid, dus nog geen dividenden betaald.
Cash flow = positive or negative cash flows. Cash inflows = receipts and cash outflows =
payments. About cash, not profit/loss.
● Differences between cash flow (receipts/payments) and profit (income/expenses)
• Payments which are not yet expenses (prepaid rent)
• Expenses which are not yet payments (payment on credit/account = latere betaling)
• Expenses which have already been payments
• Payments which will never be expenses
, Wanneer een bedrijf bijvoorbeeld 200.000 dollar betaalt voor een perceel grond, is er
geen uitgave, omdat grond niet kan worden afgeschreven. Dit zijn geen expenses,
maar activa. Auto´s etc. kunnen wel afgeschreven worden → depreciation expenses
Een ander voorbeeld: een bedrijf houdt loonbelasting in op het loon van zijn
werknemers en draagt deze belasting af aan de overheid. De onderneming betaalt,
maar maakt nooit kosten, omdat zij optreedt als agent voor de overheid.
Een laatste voorbeeld: een raad van bestuur keurt een dividenduitkering aan de
aandeelhouders goed; dit is een betaling, maar geen uitgave, omdat het slechts een
overdracht van ingehouden winst aan de aandeelhouders is.
• Receipts which are not yet income
Cash flow statement
Net profit +425
Interest expense +25
Operating income +450
Depreciation +100
Change in provisions -30
Change in inventories -200
Change in receivables -100
Change in trade payables +100
Cash flow from operating activities +320
Cash flow from investing activities -200
Repayment of loan -100
Issue of shares +50
Interest expense -25
Change in interest payable -5
Interest paid -30
Dividends paid -100
Cash flow from financing activities -180
Change in cash -60
1. Check out the Balance sheet changes from 1/1 to 31/12 and note the changes
,2. Check out the income statements and note Net profit, Interest expense etc.
3. Make the statement
● With the indirect method, we ‘undo’ all the adjustments we made to cash flow in order
to calculate profit
● Increasing bad stuff = add Decrease bad stuff = decrease
● Increasing good stuff = deduct Decrease good stuff = add
● Three forms of cashflows;
- Financing shares, interest, dividend, loan repayments (if interest paid)
- Investing Purchases of inventory (negatief? Verlies aankoop inventory =
negatieve investering en visa versa)
- Operating profit, loss, provisions, depreciation, assets, liabilities
Income statement = Profit and Loss account
Profit and Loss Income Statement
Debit Credit
Expenses Income Income (credit)
Expenses (debit)
Profit/Loss
Income statement = gaat over equity; income (increasing equity) versus expenses
(decreasing equity).
Income; cash receipts, increase in other assets, or decrease in liabilities
Expenses; cash expenditures, decrease in other assets, or increase in liabilities
Income statement
Expenses (debit) Income (credit)
COGS; materials, labor and overhead Sales
(=indirect costs)
Operating Expenses; Selling expenses (Interest) Revenues
Administrative expenses, Depreciation
Interest expense, Income tax
, T or Ledger accounts
- For the debit side of the balance sheet, debit is increasing and credit is decreasing
- For the credit side of the balance sheet, credit is increasing and debit is decreasing
- Income statement debit side is costs (COGS) and credit side is revenues
We grijpen eerst even terug naar Accounting I om alles op een rijtje te zetten wat belangrijk
is en terugkomt:
Balance sheet
Balance sheet 31th of December 2023
Debit Credit
Assets (what we own) Liabilities (what we owe)
Current assets (<1 yr) Current liabilities (<1yr)
Accounts receivables, inventory Account payables
Cash (cash flow statement)
Long-Term Liabilities (>1yr)
Long term assets (>1yr) Owner´s equity
Property, Plant & Equipment Shared/contributed Capital
Buildings (het geld van investeerders in een bedrijf
Intangible Assets dmv aandelen = aangetrokken kapitaal)
Other Assets
Retained Earnings
(the amount of profit a company has left
over after paying all its direct costs, indirect
costs, income taxes and its dividends to
shareholders).
Total Total
● Bij twee balansen naast elkaar gaan ze altijd van 1/1 (begin) naar 31/12 (einde)
● Difference between cash in and outflows go to the ´Cash´ journal on the balance
sheet.
● Difference between revenue and expenses (=profit/loss) go to the ´Equity´ journal on
the balance sheet.
Called-up capital = the amount of share capital shareholders owe, but have not
paid, dus nog geen dividenden betaald.
Cash flow = positive or negative cash flows. Cash inflows = receipts and cash outflows =
payments. About cash, not profit/loss.
● Differences between cash flow (receipts/payments) and profit (income/expenses)
• Payments which are not yet expenses (prepaid rent)
• Expenses which are not yet payments (payment on credit/account = latere betaling)
• Expenses which have already been payments
• Payments which will never be expenses
, Wanneer een bedrijf bijvoorbeeld 200.000 dollar betaalt voor een perceel grond, is er
geen uitgave, omdat grond niet kan worden afgeschreven. Dit zijn geen expenses,
maar activa. Auto´s etc. kunnen wel afgeschreven worden → depreciation expenses
Een ander voorbeeld: een bedrijf houdt loonbelasting in op het loon van zijn
werknemers en draagt deze belasting af aan de overheid. De onderneming betaalt,
maar maakt nooit kosten, omdat zij optreedt als agent voor de overheid.
Een laatste voorbeeld: een raad van bestuur keurt een dividenduitkering aan de
aandeelhouders goed; dit is een betaling, maar geen uitgave, omdat het slechts een
overdracht van ingehouden winst aan de aandeelhouders is.
• Receipts which are not yet income
Cash flow statement
Net profit +425
Interest expense +25
Operating income +450
Depreciation +100
Change in provisions -30
Change in inventories -200
Change in receivables -100
Change in trade payables +100
Cash flow from operating activities +320
Cash flow from investing activities -200
Repayment of loan -100
Issue of shares +50
Interest expense -25
Change in interest payable -5
Interest paid -30
Dividends paid -100
Cash flow from financing activities -180
Change in cash -60
1. Check out the Balance sheet changes from 1/1 to 31/12 and note the changes
,2. Check out the income statements and note Net profit, Interest expense etc.
3. Make the statement
● With the indirect method, we ‘undo’ all the adjustments we made to cash flow in order
to calculate profit
● Increasing bad stuff = add Decrease bad stuff = decrease
● Increasing good stuff = deduct Decrease good stuff = add
● Three forms of cashflows;
- Financing shares, interest, dividend, loan repayments (if interest paid)
- Investing Purchases of inventory (negatief? Verlies aankoop inventory =
negatieve investering en visa versa)
- Operating profit, loss, provisions, depreciation, assets, liabilities
Income statement = Profit and Loss account
Profit and Loss Income Statement
Debit Credit
Expenses Income Income (credit)
Expenses (debit)
Profit/Loss
Income statement = gaat over equity; income (increasing equity) versus expenses
(decreasing equity).
Income; cash receipts, increase in other assets, or decrease in liabilities
Expenses; cash expenditures, decrease in other assets, or increase in liabilities
Income statement
Expenses (debit) Income (credit)
COGS; materials, labor and overhead Sales
(=indirect costs)
Operating Expenses; Selling expenses (Interest) Revenues
Administrative expenses, Depreciation
Interest expense, Income tax
, T or Ledger accounts
- For the debit side of the balance sheet, debit is increasing and credit is decreasing
- For the credit side of the balance sheet, credit is increasing and debit is decreasing
- Income statement debit side is costs (COGS) and credit side is revenues
