$FX Finance

Their will be some questions from fundamental 1 and ll chap 1 and we gona start chat 2 Get ready

Good morning fam ❤️

The Four Core Financial Statements አራቱ መሠረታዊ የፋይናንስ መግለጫዎች Understanding how these four statements connect is critical for financial analysis and exit exam prep. Together with the Footnotes (Notes to the Financial Statements), they make up the complete financial reporting package under IAS 1. እነዚህ አራቱ መግለጫዎች ከነ ማብራሪያዎቻቸው (Notes) ጋር በመሆን በ IAS 1 መሠረት ሙሉ የፋይናንስ ሪፖርት ፓኬጅን ያዘጋጃሉ። 1. The Income Statement (Statement of Profit or Loss)(የትርፍና ክሳራ መግለጫ) Definition: Measures the company's financial performance over a period of time (e.g., one month or one year).ድርጅቱ በተወሰነ የጊዜ ገደብ ውስጥ (ለምሳሌ በአንድ ወር ወይም በአንድ ዓመት) ያሳየውን የፋይናንስ አፈፃፀም ይለካል።Key Question (ዋና ጥያቄው): "Is the company profitable?""ድርጅቱ ትርፋማ ነው ወይስ ክሳራ ላይ ነው?"The Formula (ቀመሩ):Revenues−Expenses=Net Income (or Net Loss) Key Components (ዋና ዋና አካላት): Sales, Cost of Goods Sold (COGS), Operating Expenses, Interest, Taxes, and Net Profit.ሽያጭ፣ የተሸጡ እቃዎች ወጪ (COGS)፣ የሥራ ማስኬጃ ወጪዎች፣ ወለድ፣ ግብር እና አጠቃላይ ንፁህ ትርፍ። 2. The Balance Sheet (Statement of Financial Position)(የፋይናንስ አቋም መግለጫ) Definition: Provides a financial "snapshot" of what the company owns and owes at a specific point in time (e.g., on December 31).ድርጅቱ በተወሰነ ቀን ላይ (ለምሳሌ በታህሳስ 31) ያለውን የንብረት እና የዕዳ ሁኔታ የሚያሳይ የፋይናንስ ምስል (Snapshot) ነው። Key Question (ዋና ጥያቄው): "What is the company's financial position today?""ዛሬ ላይ የድርጅቱ የፋይናንስ አቋም ምን ይመስላል?" The Formula (ቀመሩ):Assets=Liabilities+Owner’s EquityKey Components (ዋና ዋና አካላት): Assets (ንብረቶች): Cash, Inventory, Equipment. (ጥሬ ገንዘብ፣ እቃዎች፣ ማሽነሪዎች) Liabilities (ዕዳዎች): Accounts Payable, Bank Loans. (ሊከፈሉ የሚገቡ ዕዳዎች፣ የባንክ ብድር) Equity (ካፒታል): Share Capital, Retained Earnings. (የባለቤቶች መዋጮ፣ ያልተከፋፈለ ትርፍ) 3. The Statement of Changes in Equity(የካፒታል ለውጥ መግለጫ) Definition: Explains why the owners' wealth (equity) changed over a period of time.በተወሰነ የጊዜ ገደብ ውስጥ የባለቤቶች ሀብት (ካፒታል) ለምን እና እንዴት እንደተቀየረ ያብራራል።Key Question ( ጥያቄው): "How did the owners' investment change this year?""በዚህ ዓመት የባለቤቶች ኢንቨስትመንት እንዴት ተቀየረ?" The Formula (ቀመሩ):Beginning Equity+Net Income−Dividends±Share Changes=Ending Equity Key Components (ዋና ዋና አካላት): Share capital, Retained earnings, Dividends paid, and Revaluation surplus.የአክሲዮን ካፒታል፣ ያልተከፋፈለ ትርፍ፣ የተከፈለ የትርፍ ድርሻ (Dividends) እና የእሴት ጭማሪ surplus። 4. The Statement of Cash Flows(የጥሬ ገንዘብ ፍሰት መግለጫ) Definition: Tracks the actual cash coming in and going out of the business over a period of time. በተወሰነ ጊዜ ውስጥ ወደ ድርጅቱ የገባውን እና ከድርጅቱ የወጣውን ጥሬ ገንዘብ ይከታተላል። Key Question (ዋና ጥያቄው): "Where did our cash come from, and where did it go?""ገንዘባችን ከየት መጣ? ወዴትስ ሄደ?" The Three Sections (O-I-F):Operating Activities (የሥራ ማስኬጃ ተግባራት): Cash from daily business operations. ከዕለት ተዕለት ሥራ የሚገኝ ገንዘብ (ለምሳሌ፦ ከደንበኞች የተሰበሰበ ክፍያ፣ ለአቅራቢዎች የተከፈለ ገንዘብ)። Investing Activities (የኢንቨስትመንት ተግባራት): Cash from buying or selling long-term assets.የረጅም ጊዜ ንብረቶችን በመግዛት ወይም በመሸጥ የሚወጣ/የሚገባ ገንዘብ (ለምሳሌ፦ ማሽን መግዛት፣ መሬትf መሸጥ)። Financing Activities (የፋይናንስ ተግባራት): Cash from borrowing or paying investors.ከብድር ወይም ለባለቤቶች ከሚደረግ ክፍያ ጋር የተያያዘ ገንዘብ (ለምሳሌ፦ የባንክ ብድር መውሰድ፣ አክሲዮን መሸጥ፣ የትርፍ ድርሻ መክፈል)። Join our main practice channel 👇👇 https://t.me/FX_Financess https://t.me/FX_Financess

The Three Main Forms of Business Organizations ሦስቱ ዋና ዋና የንግድ ድርጅት ዓይነቶች (አደረጃጀቶች) The three most common forms of business ownership differ in how they are set up, how they are taxed, and how much personal risk (liability) the owners face. እነዚህ ሦስቱ የንግድ ድርጅት ዓይነቶች በአደረጃጀታቸው፣ በግብር አከፋፈላቸው እና በባለቤቶቹ የግል ዕዳ ኃላፊነት መጠን ይለያያሉ። 1. Sole Proprietorship (የአንድ ግለሰብ ንግድ ድርጅት) A business owned and run by one single individual.በአንድ ግለሰብ ባለቤትነት የሚመራ እና የሚንቀሳቀስ የንግድ ድርጅት ነው። Key Characteristics (ዋና ዋና ባህሪያት):Simple to set up (ቀላል አጀማመር): Very low costs and minimal legal paperwork.በጣም አነስተኛ ወጪ እና ቀላል ሕጋዊ ሰነዶችን ብቻ ይፈልጋል።Total Control (ሙሉ ቁጥጥር): The owner receives all profits and makes all decisions.ባለቤቱ ሁሉንም ትርፍ ይወስዳል፤ ሁሉንም ውሳኔዎችም ራሱ ይወስናል።Unlimited Personal Liability (ወሰን የሌለው የግል ዕዳ): The business is not a separate legal entity. If the business goes into debt or gets sued, the owner's personal assets (like their house or car) can be seized to pay the debts.ድርጅቱ ራሱን የቻለ ሕጋዊ ሰውነት የለውም። ስለዚህ ድርጅቱ ዕዳ ውስጥ ቢገባ ወይም ቢከሰስ፤ ባለቤቱ ዕዳውን ለመክፈል የግል ንብረቱን (እንደ ቤት ወይም መኪና) ለመሸጥ ይገደዳል። Limited Life (አጭር የሥራ እድሜ): The business legally ends when the owner dies or decides to close it.ባለቤቱ ሲሞት ወይም ሥራውን ሲያቆም ድርጅቱ በሕግ ይፈታል። 2. Partnership (የሽርክና ማህበር) A business owned by two or more people who agree to pool their resources and skills. በሁለት ወይም ከዚያ በላይ በሆኑ ሰዎች ስምምነት የሚመሠረት የጋራ የንግድ ድርጅት ነው። Key Characteristics (ዋና ዋና ባህሪያት):Partnership Agreement (የሽርክና ስምምነት): Highly recommended to have a written contract detailing how profits and duties are shared.ትርፍ እና የሥራ ድርሻ እንዴት እንደሚከፋፈል የሚገልጽ የጽሑፍ ውል (ውል ማሰር) በጣም አስፈላጊ ነው። Combined Resources (የተጣመረ አቅም): More capital and skills are available compared to a sole proprietorship. ከግለሰብ ንግድ የበለጠ ካፒታል (ገንዘብ) እና የክህሎት ስብስብ ለማግኘት ይረዳል። Unlimited Personal Liability (ወሰን የሌለው የጋራ ዕዳ): Just like a sole proprietorship, partners are personally responsible for the business's debts. If one partner makes a bad business deal, all partners are liable. ልብ ይበሉ፦ ልክ እንደ አንድ ግለሰብ ንግድ፣ ሸሪኮቹ (ባለቤቶቹ) ለድርጅቱ ዕዳ በግል ንብረታቸው ተጠያቂ ናቸው። (አንዱ ሸሪክ መጥፎ የንግድ ስምምነት ቢያደርግ፣ ሌሎችም ሸሪኮች ዕዳውን የመክፈል ግዴታ አለባቸው)። Limited Life (አጭር የሥራ እድሜ): Legally dissolves if one partner dies, leaves, or a new partner joins.አንድ ሸሪክ ሲሞት፣ ማህበሩን ሲለቅ ወይም አዲስ ሰው ሲገባ ማህበሩ በሕግ ይፈታል (ይፈርሳል)። 3. Corporation / Share Company (ኮርፖሬሽን / የአክሲዮን ማህበር) A business organized as a separate legal entity owned by stockholders (shareholders).በሕግ ፊቱ ራሱን የቻለ ሕጋዊ ሰውነት ያለው (Separate Legal Entity) እና በባለአክሲዮኖች (Shareholders) ባለቤትነት የሚመራ ድርጅት ነው። Key Characteristics (ዋና ዋና ባህሪያት):Separate Legal Entity (ራሱን የቻለ ሕጋዊ ሰውነት): The corporation has the same rights as a person (it can own property, sign contracts, sue, and be sued).ኮርፖሬሽን ልክ እንደ አንድ ሰው ንብረት መግዛት፣ ውል መፈረም፣ መክሰስም ሆነ መከሰስ ይችላል። Limited Liability for Owners (ወሰን ያለው ዕዳ): This is the biggest advantage. Shareholders can only lose the money they invested in buying shares. Their personal assets are completely safe from the corporation's debts. ይህ ትልቅ ጥቅሙ ነው። ባለአክሲዮች ሊያጡ የሚችሉት አክሲዮን ለመግዛት ያወጡትን የገንዘብ መጠን ብቻ ነው። የግል ንብረታቸው ከኮርፖሬሽኑ ዕዳ ሙሉ በሙሉ ነፃ ነው። Easy Transfer of Ownership (ቀላል የባለቤትነት ዝውውር): Shareholders can easily buy or sell their shares (stocks) on the stock market.ባለአክሲዮች ድርሻቸውን (አክሲዮናቸውን) በገበያ ላይ በቀላሉ መሸጥ ወይም መለወጥ ይችላሉ። Unlimited / Continuous Life (ማያልቅ የሥራ እድሜ): The corporation continues to exist even if owners sell their shares or die.ባለቤቶቹ አክሲዮናቸውን ቢሸጡ ወይም ቢሞቱም ኮርፖሬሽኑ ሥራውን ሳያቋርጥ ይ ቀጥላል። Double Taxation - Disadvantage (ድርብ ግብር መከፈል - ጉዳቱ): The corporation's profits are taxed first, and then the shareholders pay tax again on the dividends they receive. በመጀመሪያ ኮርፖሬሽኑ ባገኘው ትርፍ ላይ ግብር ይከፍላል፤ ከዚያም ትርፉ ለባለቤቶቹ በትርፍ ድርሻ (Dividend) ሲከፋፈል ባለቤቶቹ በግለሰብ ደረጃ ድጋሚ ግብር ይከፍላሉ።

The Basic Accounting Equation መሠረታዊ የአካውንቲንግ ኢክዌሽን The basic accounting equation represents the relationship between a company's assets, liabilities, and owner's equity. It must always balance after every single transaction.This equation is the absolute foundation of all double-entry bookkeeping and the Balance Sheet. The Formula (ቀመሩ):Assets=Liabilities+Owner’s Equity The Three Components (ሦስቱ አካላት) 1. Assets (ንብረቶች) – "What the business owns" Definition: Resources owned by the company that will provide future economic benefits. ድርጅቱ በባለቤትነት የያዛቸው እና ወደፊት ኢኮኖሚያዊ ጥቅም የሚያስገኙ ሀብቶች ናቸው። Examples (ምሳሌዎች): Cash, Accounts Receivable (money customers owe us), Inventory, Land, Buildings, Equipment.በጥሬ ገንዘብ (Cash)፣ ሊሰበሰብ የሚገባ ሂሳብ (Accounts Receivable)፣ እቃዎች (Inventory)፣ መሬት፣ ህንፃ እና ማሽነሪዎች። 2. Liabilities (ዕዳዎች) – "What the business owes to outsiders" Definition: Obligations or debts owed to creditors (banks, suppliers). ድርጅቱ ለሌሎች ወገኖች (ባንኮች፣ አቅራቢዎች) መክፈል ያለበት የገንዘብ ግዴታ ነው። Examples (ምሳሌዎች): Accounts Payable (money we owe suppliers), Notes Payable (bank loans), Salaries Payable.ሊከፈል የሚገባው ሂሳብ (Accounts Payable)፣ የባንክ ብድር (Notes Payable) እና ያልተከፈለ የሰራተኞች ደሞዝ። 3. Owner's Equity (የባለቤቶች ካፒታል) – "The owner's claim"Definition: The owner's remaining claim on the total assets after all liabilities are paid (also called net assets or residual claim). ድርጅቱ ያለበት ዕዳ ሙሉ በሙሉ ከተከፈለ በኋላ ለድርጅቱ ባለቤቶች የሚተርፈው ንፁህ የንብረት ድርሻ ነው (ይህም Residual Claim ይባላል)።Examples (ምሳሌዎች): Share Capital (owner investments) and Retained Earnings.የባለቤቶች መዋጮ (Capital) እና ያልተከፋፈለ የድርጅቱ ትርፍ (Retained Earnings)። The Expanded Accounting Equation የተዘረጋው የአካውንቲንግ ኢክዌሽን To understand how revenues, expenses, and dividends affect the equation, we look at the expanded version:Assets=Liabilities+Common Stock+Revenues−Expenses−Dividends Revenues (ሽያጮች/ገቢዎች): Increase Equity.የካፒታል መጠንን ይጨምራሉ።Expenses (ወጪዎች): Decrease Equity.የካፒታል መጠንን ይቀንሳሉ። Dividends / Withdrawals (የትርፍ ድርሻ / መውጣቶች): Decrease Equity.የካፒታል መጠንን ይቀንሳሉ።

Core Assumptions of Accounting አራቱ መሠረታዊ የአካውንቲንግ ግምቶች (Assumptions)Accounting assumptions are the basic guidelines and conditions under which a business operates and prepares its financial reports. የአካውንቲንግ ግምቶች የፋይናንስ መግለጫዎችን በምናዘጋጅበት ጊዜ እንደ መነሻ የምንጠቀማቸው መሠረታዊ መመሪያዎችና ቅድመ-ሁኔታዎች ናቸው።1. Economic Entity Assumption Definition: This assumption states that the activities of a business must be kept completely separate and distinct from the personal transactions of its owner(s) and any other business. ይህ ግምት የድርጅቱ የንግድ እንቅስቃሴዎች ከባለቤቱ የ his/her የግል የገንዘብ ግብይቶች እና ከሌሎች ድርጅቶች ሙሉ በሙሉ የተለዩ እና የተከፋፈሉ መሆን አለባቸው ይላል። Why it matters (ጠቀሜታው): It prevents the owner's personal expenses from mixing with and distorting the company's financial reports.የባለቤቱ የግል ወጪዎች ከድርጅቱ ወጪዎች ጋር ተቀላቅለው የድርጅቱን እውነተኛ የትርፍ መጠን እንዳያዛቡ ይከለክላል። Example (ምሳሌ): If the owner of a grocery store buys a personal car for their family, this car cannot be recorded as an asset of the grocery store.የሱቅ ባለቤት ለቤተሰቡ መዝናኛ የሚሆን የግል መኪና ቢገዛ፤ ይህ መኪና በሱቁ የሒሳብ መዝገብ ላይ እንደ ድርጅት ንብረት ሊመዘገብ አይችልም። 2. Going Concern Assumption(የቀጣይነት ግምት) Definition: This assumption presumes that the business will continue to operate indefinitely (for the foreseeable future) and will not be closed or liquidated anytime soon. ይህ ግምት ድርጅቱ በቅርብ ጊዜ ውስጥ አይዘጋም ወይም አይፈርስም፤ ይልቁንም ላልተወሰነ ጊዜ ሥራውን ይቀጥላል ብለን የምንወስድበት ቅድመ-ሁኔታ ነው። Why it matters (ጠቀሜታው): This is the reason why we capitalize assets (like machinery) and depreciate them over many years, rather than expensing their full cost immediately. If we assumed the business was closing next week, we would have to value all assets at liquidation (sale) value today. ለምሳሌ ማሽኖችን ወይም ሕንፃዎችን ስንገዛ ወዲያውኑ ወጪ ከማድረግ ይልቅ፤ ድርጅቱ ወደፊትም ስለሚቀጥል ንብረቱን በየዓመቱ የዋጋ ቅናሽ (Depreciation) እያደረግን ለረጅም ዓመታት እንድንመዘግብ ያስችለናል።Example (ምሳሌ): A company buys a machine for $100,000 (100,000 ብር) and depreciates it over 10 years, assuming the company will still be in business to use it.አንድ ድርጅት በ100,000 ብር ማሽን ገዝቶ ለ10 ዓመታት በየዓመቱ ዋጋውን ሲቀንስ፤ ድርጅቱ ለሚቀጥሉት 10 ዓመታት ሥራ ላይ ይቆያል ከሚል የቀጣይነት ግምት በመነሳት ነው። 3. Monetary Unit Assumption(የገንዘብ መለኪያ ግምት) Definition: This assumption states that only transaction data that can be expressed in terms of money should be included in the accounting records.ይህ ግምት በገንዘብ (Birr/Dollar) ሊለኩ የሚችሉ የቢዝነስ ግብይቶች ብቻ በሒሳብ መዝገብ ውስጥ መመዝገብ አለባቸው ይላል።Why it matters (ጠቀሜታው): It provides a common denominator to measure everything. It also assumes that the currency remains stable (ignores inflation). በድርጅቱ ውስጥ ያሉትን ማንኛውንም ልዩ ልዩ ግብይቶች ለመለካት አንድ ወጥ መለኪያ (ገንዘብ) ይሰጣል። Example (ምሳሌ): Excellent customer service or having a highly skilled workforce cannot be recorded on the balance sheet because they cannot be easily measured in dollars/Birr.የድርጅቱ ደንበኞች ታማኝነት፣ የሰራተኞች ከፍተኛ ክህሎት ወይም የድርጅቱ መልካም ስም (Goodwill) በገንዘብ በትክክል መለካት ስለማይችሉ በሒሳብ መዝገብ ላይ እንደ ንብረት በቀጥታ አይመዘገቡም። 4. Periodicity (Time Period) Assumption(የጊዜ ገደብ / ወቅታዊነት ግምት) Definition: This assumption states that the long life of a business can be divided into artificial time periods (such as months, quarters, or years) so that useful financial reports can be prepared for decision-makers. ይህ ግምት የድርጅቱ ሙሉ የሥራ ዘመን ወደ አጭር ሰው ሰራሽ የጊዜ ክፍተቶች (እንደ ወር፣ ሩብ-ዓመት ወይም ዓመት) ተከፋፍሎ ሪፖርት መቅረብ አለበት ይላል።Why it matters (ጠቀሜታው): : Investors and banks cannot wait until a company closes down after 30 years to see if it was profitable. They need regular reports. This assumption is the foundation of accrual accounting and adjusting entries. ባለሀብቶች እና ባንኮች ድርጅቱ ትርፋማ መሆኑን ለማወቅ ድርጅቱ እስኪዘጋ ድረስ ለ30 ዓመታት መጠበቅ የለባቸውም። በየጊዜው መረጃ ይፈልጋሉ። ይህም ግምት ለአክሩአል አካውንቲንግ (Accrual Accounting) እና ለማስተካከያ ምዝገባዎች (Adjusting Entries) መሠረት ነው።Example (ምሳሌ): Preparing monthly income statements and annual balance sheets.ወርሃዊ የትርፍና ክሳራ መግለጫዎችን እና ዓመታዊ የሂሳብ ሚዛኖችን (Balance Sheets) ማዘጋጀት።

Will finalize fundamental 1 and ll tomorrow Good night fam