Accounting subjects and accounts

Accounting subject

I. Significance of setting accounting subjects
Accounting subject
It is a sign or project that further classifies accounting objects. Setting an accounting subject is a specialized Method for specifying the items or symbols of classified accounting in advance according to the specific content of the accounting object and the requirements of economic management.
The specific requirement is: classify the same items in the accounting object into one category, and set up an accounting subject name. All economic businesses with such information characteristics are calculated under this subject.
In general, we further divide the accounting elements according to the enterprise's economic activities, which constitutes an accounting subject.

Ii. Principles for setting accounting subjects
(1) The characteristics of Accounting objects must be combined;
(2) must comply with economic management requirements;
(3) Integration of uniformity and flexibility;
(4) The name should be simple, clear, consistent with the meaning, and easy to understand;
(5) maintain relative stability.

 

Accounting Account

I. Significance of setting an account
An account is a means of classifying, systematic, and recording various economic services in the ledger according to the specified accounting subject.
Relationship Between Accounting Account and accounting subject:
In common: economic business needs to be classified and economic business needs to be described.
The difference is that the accounting subject is only a project or symbol of economic business classified accounting, and can only describe the content of a certain economic business; while the account can specifically record the content of economic business and provide specific data.

 

Iii. Account Classification
Accounts can generally be classified according to three criteria:
By accounting factor:
By the degree of detail of the provided indicators
Other categories
By accounting factor:
1. Accounts that reflect assets, such as cash, bank deposits, accounts receivable, other receivables, raw materials, products, fixed assets, and accumulated depreciation.
2. Accounts that reflect liabilities, such as "accounts payable", "advance receipts", "bank loans", "taxes payable", and "profits payable.
3. Accounts that reflect the equity of the owner, such as "paid-in capital", "Provident Fund", "current year profit", and "profit distribution.
4. Accounts that reflect profit and loss, such as "operating income" and "non-operating income.
5. Accounts that reflect cost, such as "production cost" and "manufacturing cost.
It can be seen that the above account category is exactly the same as the name of the accounting subject.

By the degree of detail of the provided indicators
1. Total Classified accounts. Basically, the account is set according to the accounting subject.
2. detailed classification account. An account that provides detailed economic and business accounting indicators.
The two are the unified and specific relationships. For example:

(3) other categories
1. Balance Sheet account and income statement account.
Accounts that reflect the actual resources of an enterprise and their access methods are balance sheet accounts;
An account that reflects the business activities and results of an enterprise is an income statement account.
2. In-Table accounts and out-of-Table accounts.
All of the above are in-Table accounts;
3. debit account, credit account, and non-credit account.
The asset account in the balance sheet account is the debit balance account (also real account)
The liabilities and owner equity accounts in the balance sheet account are credit and balance accounts (also real accounts)
Most of the income statement accounts are non-balance accounts. (Virtual account)