Accountancy by The Open University of Hong Kong Pdf

Download Accountancy by The Open University of Hong Kong Pdf book free online – from Accountancy by The Open University of Hong Kong Pdf book; This book covers the following topics: Financial Accounting, Management Accounting, Introduction to Accountancy, Principles of accounting, Separate Entity Concept, Financial Statements, 3 The Accounting Equation, Double Entry, Accounting Standards, Assets, Liabilities, Cash, Investments.

Accountancy may have been an elaboration of an accidental discovery, much like the tale Archimedes and the bathtub discovery of water volume displacement equals floating object volume. Some idly rich mathematicians found that assets equals liabilities plus equities.


The official story is that accountancy was first systematically expounded by Luca Pacioli in the Renaissance, who in a section of a mathematical book he is generally thought to have written, describes the Venetian method, or double entry accounting. Double entry accounting maintains the assertion or constraint that assets = liabilities equity. It gives rise to the concept of periodic trial balances, where the equation is checked at the end of a period. There is also a concept of closing entries, where in addition to the more permanent account types of asset accounts, liability accounts, and equity accounts, there are temporary operational income accounts and expense accounts, which are updated ideally throughout a period of operation, or as a minimum, before the end of a reporting period with journalised historical data, and closed off , i.e. the result of income minus expenses is added to equity , and the temporary income and expense accounts made to have zero balances for the next reporting period.

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