In adjusting entries, accounts of real and nominal accounts have shown the actual balance. From the recording of adjustments, the company can develop a tool to assist in the preparation of financial statements. Aids in the form of working papers.

The working paper is a list of recording the trial balance, adjustments, and the classification of ledger accounts as an aid in preparing the financial statements. Shaped strip of paper work, so often called a work sheet. Working paper serves as a tool in preparing the financial statements. Because of its function, the working paper is not the ultimate goal of the accounting records.

Use of papers have shown an overview of the accounting process needs to be done to prepare financial statements. Purposes of working papers include:
a. Facilitate in preparing financial statements.
b. Reduce errors that may occur in the adjustment.
c. Check the correctness of the account records that have been done.

Form of working papers used in the form of accounting includes six columns, eight columns, the columns of ten, and twelve columns. However, the form of working papers used are ten columns.

The preparation of working papers must follow the accounting cycle stages in preparing the financial statements. Step-by-step preparation of working papers of ten columns can be explained as follows:
a. Creating a working paper containing a column of ten columns account number, account name, trial balance, adjustments, profit / loss, and balance.
b. Fill in the trial balance with the balance of the accounts ledger.
c. Fill column with paragraph adjustments adjustments have been made previously.
d. Fill in the adjusted trial balance by combining the balance of the trial balance and adjusting entries. If the balance of the trial balance and adjustments are equally debit or credit, adjusted trial balance columns recorded the sum of the two balances. If different, adjusted trial balance columns filled with the difference of the balances are.
e. Fill in the profit / loss with nominal accounts, namely the revenue and expense accounts.
f. Fill in the balance sheet with real accounts.

Incoming Terms:

• how would you prepare general ledger working paper

Many people are trapped in debt due to the sudden need of large sums of money during hard times or times of emergency such as job loss or medical expenses. When the need for large amounts of money took place, and they have no savings or emergency funds earmarked for things that are unexpected, they are often forced to borrow money to the bank or use their credit cards to solve the problem. When the bill came the debt, if they do not have enough money to pay off their debt, they then pay the debt in the minimum amount they can pay, and the balance is paid next month with some interest that in turn make them a big debt. The situation will become increasingly difficult as the amount of debt is growing due to the growing interest from one month to the next, until they realized that they had fallen into difficulties in repaying the loan. Do not let these bad things happen to you. Therefore, you need to prepare a savings or reserve funds that later you can use if you need cash suddenly.

Instrument in the form of stock index futures contract is a contract or agreement between two parties that requires them to sell or buy products that become principal variables in the future with a predetermined price.
When an investor or capital owners choose to invest in this type of instrument, there are several benefits to be gained, is as follows:
a. Hedging instruments. Hedging is intended to minimize risk. Options that can be used by an investor is to open the contract in the future so that whatever price is formed at maturity, investors will continue to sell the stock at a predetermined price.
b. Speculation. Investors can speculate by trading index futures rather than conducting transactions for each stock. This is because of leverage. Leverage gives the advantage of price movements with little capital compared to equity for each stock transaction.
c. Arbitration. With arbitration, the investor can profit from the difference between prices in the spot market and futures market.

Investing in these instruments there is a risk that must be considered because it is quite dangerous. At maturity, the investor must close on price from the current position, although the prices that occur differ from expectations. Investors could suffer huge losses when compared with the initial capital. In addition, investors still have to deposit additional funds to the clearing house when he suffered a loss.

Evidence of right
Evidence of right is the right of pre-emptive at a predetermined price during a certain period. Right evidence published in a limited public offering (rights issue), when new shares are offered first to holders of old shares. Evidence of right to give some advantage to the investor. Investors have the privilege to buy new shares at a predetermined price by showing evidence of right they have. Investors benefit because the price is cheaper to buy new shares. In addition, evidence of right can be traded in the secondary market so that investors can enjoy capital gains. On the other hand, if investors do not carefully choose the right evidence, there are some risks that may arise. If the stock price on the implementation of maturity will be lower than the implementation and investors do not convert the right evidence, he will experience a loss on the purchase price of the evidence right. Therefore the evidence right can be traded in the secondary market then there is also a risk of capital loss.

Warrants
Warrants are usually attached as an appeal to the public offering of shares or bonds. The exercise price of warrants typically lower than the price of the stock market. After the stocks or bonds listed on the stock, the warrants can be traded separately. Warrants trading period was longer than the proof of right, can reach 3-5 years.
Warrants are an option (option), when investors have the option to redeem or not warannya at maturity. Warannya owner can redeem the warrants for six months after the warrants issued by the issuer. Prices of warrants will fluctuate during the trading period.
An investor who invested in the form of warrants have the right to buy new shares from the company at a price lower than prices in the secondary market. The way to redeem the warrants held when the company’s stock price exceeds the exercise price. Another advantage is to obtain capital gains when the warrants are traded on the stock.
As for the risks faced if the stock price during the period of implementation of the fall and lower than the exercise price. Investors will suffer losses on the purchase price of such warrants. In addition, there is also capital loss due to the nature of warrants is similar to the stock, which can be traded on the stock.

Incoming Terms:

• derivatives – options rights warrants

Human beings must be rational economics. Choices made should be based on considerations of gains and losses by comparing the costs and results to be obtained.

Understanding opportunity costs
You know that the factors of production such as natural, human and capital has limited properties. In addition, the utilization of production factors can be either alternative. If the factors of production used for a single activity, can not be used for other activities concurrently. For example if at a certain time labor is used for the fisheries sector can not be simultaneously used for agriculture. So, one must determine the best choice from a variety of alternative options.

If people have a choice on one of the available alternatives, he should let go of the other alternatives. In economics is called the alternative cost or opportunity cost. Each alternative has the profit and loss. People said to act economically if it is capable of achieving maximum results for his sacrifice.

Opportunities on labor costs
Cost is everything that is issued or sacrificed to obtain something. Cost can be an expense in the form of money or other things that are not related to money. For example the costs associated with money is called direct costs or expenses that are not related directly to money, ie the opportunity cost of labor in producing goods and services. Opportunity cost of labor is the labor value of the opportunity to produce a product that must be sacrificed as a result of choosing an opportunity to produce other goods. This is because labor is used in the production process has limitations of time, chance, and expertise. In addition, the concept of opportunity cost of labor also has many possible alternative uses. This choice is based on the goals and individual situation. Thus, alternative options should be determined to give the maximum benefit. The basic concept is that there is an opportunity to resource constraints in producing goods and services.

Incoming Terms:

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Accounting pengikhtisaran process does not stop at the preparation of trial balance. After preparing the trial balance, the company will prepare financial statements. The financial statements should describe the state of wealth, debt, and capital. Therefore, companies should make adjustments to the accounts contained in the trial balance.

Journal of adjustment is an accounting calculation of the accounts that have become income or expense. Journal of adjustments required to show the real account and nominal account. Accounts consist of accounts of real property, debt and equity. Real account so-called balance sheet accounts. Nominal account consists of revenue and expense accounts. Nominal account called account profit / loss. Adjustments are made at the end of the accounting period.

The preparation of adjusting entries at the end of the period had a purpose, among others:
a. to classify the real account and nominal account
b. for the real account at the end of the period show the actual number
c. for a nominal account shows the amount of money actually became revenue and expenses in the period.

Perfectly competitive market is the most ideal shape for being able to guarantee the efficiency of the market.

Characteristics of a perfectly competitive market, among others, as follows:

1. There are many sellers and buyers. This condition causes the buyer nor the seller can not influence prices. Pricing is based on the strength of demand and supply or market mechanisms. Thus, the seller in a perfectly competitive market is the recipient of prices or price takers.

2. Homogeneous nature of the goods traded. Goods are traded in this market are substitutes for goods from other manufacturers. These properties indicate that there is no dependence on any one seller so the buyer is free to choose to buy from the seller anywhere.

3. The existence of the freedom of producers to open or close the business. In principle, an attempt was made in order to gain profit. If the profits are many, manufacturers will continue to expand its business. However, if the loss of their business, manufacturers will likely move to other types of businesses.

4. The ease of market participants to obtain information about the market. Buyers and sellers have a broad knowledge of both the market price, quality, and quantity of goods. This condition causes the balance point of the price of goods bought and sold on the market.

5. The absence of artificial barriers to price movements (no government intervention). This happens because price movements are determined by market forces, namely the interaction between demand and supply. Examples of artificial barriers are government policies and the influence of a particular company.

Perfectly competitive market goodness

a. Consumers will get the maximum satisfaction.

b. Manufacturers will gain maximum benefit because it can sell as much as possible.

c. To market their products, manufacturers do not require advertising.

Perfectly competitive market weakness

a. Traded goods are homogeneous and less varied so that consumers will quickly get bored.

b. The lack of innovation and product development by the company because most who took part in a perfectly competitive market is a small company.

Incoming Terms:

• what are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers?

Accounting fields can be grouped as follows:
a. Financial Accounting. This accounting field is closely related to the preparation of financial statements that is useful for users of accounting information. The financial statements required in the form of balance sheet, profit / loss, and statement of changes in capital.
b. Auditing accounting. Auditing accounting is a field of accounting that determine the fairness of financial statements. Thus, this field of accounting is to ensure the financial statements are prepared according to accounting standards.
c. Cost accounting. This field of accounting is to determine production costing. This financial report is used by companies to determine policy in the future.
d. Management accounting. This accounting field specializing in the discussion of the accounting information that is useful for management in managing the company.
e. Government accounting. Government accounting specializing in financial statement presentation on government institutions. This accounting report with the accounting data for management of state finances.
f. Tax accounting. Tax accounting specializing in data preparation for tax calculation. The goal is for companies to pay taxes in accordance with applicable regulations.
g. Education accounting. This accounting is concerned with the development of accounting education. In addition, the education accounting is also conducted research related to accounting information.
h. Budgeting accounting. Budgeting accounting discuss the financial plan at a specific period. This accounting is also present comparisons to the financial statements with the actual plan that have been determined.

The recording systemused the accounting transactions are generally cooperative with another company’s accountingsystem. The difference lies in the distribution of net income or profit. In a cooperative, net income sharing based on a comparison of each service done by member, while in another company profit-sharing is usually based on capital ratio. In the cooperative also known reserve fund, namely funds taken from net income that is not distributed to members, but are used to increase the capital of cooperatives. The financial statements that are prepared in the cooperative accounting same with financial statements that are made in other companies, which consists of balance sheet, profit / loss or net income, and statement of changes in capital.

The process of preparation of the consolidated profit / loss derived from the company’s working paper for a period. The accounts presented in the consolidated profit and loss account in the form of nominal (revenues and expenses). The preparation of consolidated profit / loss can be presented in the form of stafel and skontro. Consolidated profit / loss in the forms of stafel are prepared to presents the accounts of revenues and expenses from top to bottom. The report in the form of stafel can be differentiated into shape of single step and multiple steps. Forms of single step presents the consolidated profit / loss without any separation of the accounts of revenues and expenses. Report in the forms of skontro are prepared to presents the accounts of revenues and expenses are adjacent. The accounts of debit balance shown on the left, while the credit balance accounts are presented on the right.

There are several things that must be considered in preparing the consolidated profit and loss, among others:
a. Prepare a statement of profit / loss and method of presentation.
b. Write the name of the company’s services.
c. Jot down the name of profit / loss.
d. Writing accounting period (day, month, year).

Incoming Terms:

• steps in preparing consolidated profit and loss
• steps to prepare consolidated profit loss account