西方财务会计02共37张课件

1、Chapter 2 Basic Financial StatementsChapter 2 Introduction to Financial StatementsIncome StatementBalance SheetStatement of Cash FlowsThree primary financial statements.We will use a corporation to describe these statements.Introduction to Financial StaIntroduction to Financial StatementsDescribes w

2、here the enterprise stands at a specific date.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Financial StaIntroduction to Financial StatementsDepicts the revenue and expenses for a designated period of time.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Fina

3、ncial StaIntroduction to Financial StatementsDepicts the ways cash has changed during a designated period of time.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Financial StaA Starting Point: Statement of Financial PositionHeading(p39)Body (p39)A Starting Point: Statement oAsset

4、sAssets are economic resources that are owned by the business and are expected to benefit future operations.AssetsAssets are economic resoAssetsResourcesAssetsGenerate Positive Cash Flows (Cash Inflows)Directly converted into cash ( collection of receivables)Indirectly used in operating the business

5、 to create other assets that result in positive cash flows (used to produce the products for sale)Tangible (have physical existence)Intangible (like in the form of valuable rights)A summary of p40AssetsResourcesAssetsGenerate AssetsCost PrincipleGoing-ConcernAssumptionObjectivity PrincipleStable-Dol

6、larAssumptionThese accounting principles support cost as the basis for asset valuation.AssetsCost PrincipleGoing-ConcLiabilitiesLiabilities are debts that represent negative future cash flows for the enterprise. LiabilitiesLiabilities are debOwners EquityOwners equity represents the owners claims on

7、 the assets of the business. Owners EquityOwners equity rOwners EquityChanges in Owners EquityOwners InvestmentsBusiness EarningsPayments to OwnersBusiness LossesOwners EquityChanges in OwnerThe Accounting EquationThe accounting equation displays that all assets are either financed by borrowing mone

8、y or paying with the money of the companys stockholders.Assets = Liabilities + Owners EquityWhat things the business ownsWho supplied these resources to the business and how much each group suppliedThe Accounting EquationThe accThe Accounting Equation Assets = Liabilities + Owners Equity$300,000 = $

9、80,000 + $220,000The Accounting Equation AsseP41 Your TurnWould there be any different motivation when you report the value of your home to the city assessor, when comparing with when reporting to the potential buyers?P41 Your TurnWould there be anOvernight Auto Service p44Business entity: Overnight

10、 Auto ServiceAccounting policies:Prepare formal financial statementsOvernight Auto Service p44BusiOn Jan 21, McBryan and his family invested $8,000 in Overnight Auto Service and received 800 shares of stock.On Jan 21, McBryan and his faOn Jan 20, Overnight Auto Service purchased the land for $52 000

11、 cash.On Jan 20, Overnight Auto ServOn Jan 22, Overnight purchased the abandoned bus garage for $36 000. Overnight made a cash down payment of $6 000 and issued a 90-day non- interest bearing note payable for the $30 000 balance owned.On Jan 22, Overnight purchasedPurchase on account: a deferral of

12、paymentsInstallment paymentOn Jan 23, Overnight purchased tools and automotive repair equipment on account. The purchase was $13,800, due within 60 days.Purchase on account: a deferraOn Jan 24, Overnight sold the excess tools for $1,800, a price equal to Overnights cost. Ace made no down payment but

13、 to pay the amount due within 45 days.On Jan 24, Overnight sold the On Jan 26, Overnight received $600 from Ace Towling as partial settlement of its account receivable from Ace.On Jan 26, Overnight received On Jan 27, Overnight made a partial payment of $6,800 on its account payable to Snappy tools.

14、On Jan 27, Overnight made a paOn Jan 31, Overnight record the $22,000 accumulated service revenue for January.On Jan 31, Overnight record thOn Jan 31, Overnight paid $200 utilities and $1,200 wages.On Jan 31, Overnight paid $200The expanded accounting equationNow, lets review how JJs transactions af

15、fected the accounting equation. (the expanded accounting equation p50)The expanded accounting equatiIncome StatementIncome StatementStatement of Cash FlowsThe cash flow statement reports the cash generated and used during the time interval specified in its heading.Statement of Cash FlowsThe casState

16、ment of Cash Flows p51It organizes and reports the cash generated and used in the following categories:Operating activities converts the items reported on the income statement from the accrual basis of accounting to cash. Investing activitiesreports the purchase and sale of long-term investments and

17、 property, plant and equipment. Financing activitiesreports the issuance and repurchase of the companys own bonds and stock and the payment of dividends.Statement of Cash Flows p51It Statement of Cash FlowsThe operating, investing, and financing categories include both positive and negative cash flo

18、ws.The combined total of the three categories of the statement explains the total change in cash from the beginning to the end of the period.It is not unusual for a company to report an increase in cash from operating activities, but a decrease in the total amount of cash. Statement of Cash FlowsThe

19、 opeRelationships Among Financial StatementsDate at beginning of periodDate at end of periodBalance SheetBalance SheetTimeIncome StatementStatement of Cash FlowsRelationships Among Financial Financial Statement ArticulationFinancial Statement ArticulatiFinancial Reporting and Financial StatementsSta

20、tement of Cash FlowsBalance SheetIncome StatementOther Information:IndustryCompetitorsNational economyFinancial statements are just one source of financial accounting information.Financial Reporting and FinancThe Use of Financial Statements by External PartiesCreditorsInvestorsTwo concerns:LiquidityProfitabilityThe Use of Financial StatementThe Need for Ad