会计英语简明版-Lesson-1-An-Introduction-to-Accounting课件

YeandSunAccountingEnglish@20091Lesson

1AnIntroductiontoAccountingAccountinginformationTheaccountingprocessDecisionmakersEconomicactivitiesActions(decisions)Accountingthinksdecisionmakerswitheconomicactivitiesandwiththeresultsoftheirdecisions.1.1AccountingisaninformationsystemYeandSunAccountingEnglish@200921.2FormsoforganizationSoleproprietorshipOwnedbyoneperson.Ownerispersonallyresponsibleforbusinessdebts.Partnership Ownedbytwoormorepersons.Partnersarepersonallyresponsibleforallpartnershipdebts.CorporationOwnedbysharesofstock.Acorporationisaseparatelegalentity.Itisresponsibleforitsowndebts.YeandSunAccountingEnglish@200931.3FrameworkforPreparationandpresentationoffinancialstatementsIASC–since1973IASB–since2001Thereisagrowingtrendtoadoptaccountingstandardsthatareinharmonywithinternationalaccountingstandards.……YeandSunAccountingEnglish@20094YeandSunAccountingEnglish@20095Someaccountingconceptsandprinciples:businessentityobjectivitycostprinciplegoing-concernmonetaryunittimeperiodrevenuerecognitionorrealizationprinciplematchingprinciplefull-disclosureprincipleconsistencyprinciplematerialityprincipleconservatismprincipleYeandSunAccountingEnglish@200961.4UnderstandingfinancialstatementsThestatementofcomprehensiveincome(incomestatement)summarizesfinancialperformanceresultingfromincome(revenueandgains)lessexpenses(includinglosses).Thestatementofchangesinequityreconcileschangesinequity(increasesarecausedbyownerinvestmentsandnetincome,whiledecreasesresultfromownerwithdrawals/dividendsandnetlosses.Thestatementoffinancialposition(balancesheet)detailsassets,liabilities,andequity.Thestatementofcashflowsshowsthecashinflowsandoutflowsfromoperatingactivities,investingactivities,andfinancingactivities.Usersofaccountinginformation–investorsandcreditorsetc.YeandSunAccountingEnglish@200971.4UnderstandingfinancialstatementsTheincomestatementsummarizesnetprofit(ornetloss)resultingfromrevenueslessexpenses.Thestatementofowner’sequityreconcileschangesinowner’sequity(increasesarecausedbyownerinvestmentsandnetprofit,whiledecreasesresultfromownerwithdrawalsandnetlosses).Thebalancesheetdetailsassets,liabilities,andequity.Thestatementofcashflowsshowsthecashinflowsandoutflowsfromoperating,investingandfinancingactivities.Usersofaccountinginformation–investorsandcreditorsetc.YeandSunAccountingEnglish@200981.5AccountinganditsprofessionTherearethreebasictypesofaccountants:Privateaccountantsworkforasingleemployer.Publicaccountantsareavailabletothepublic.Governmentaccountantsworkforlocal,provincial,andfederalgovernmentagencies.……YeandSunAccountingEnglish@20099Fieldsofaccountingfinancialmanagerialtaxationaccounting-relatedYeandSunAccountingEnglish@2009101.6UsingtheaccountingequationBusinesstransactionsalwaysaffectatleasttwoelementsintheaccountingequation.Theaccountingequationis:

Assets=Liabilities+EquityAfteratransactionisrecorded,theaccountingequationmustbeinbalance.……YeandSunAccountingEnglish@200911Usingtheaccountingequation(1)Recording(2)Reporting (BasicStepsofAccountingProcessing)ExampleontextbookYeandSunAccountingEnglish@200912Anexample!Stockholders’Equity1:

Barone’sRepairShopwasstartedonMay.PrepareatabularanalysisofthefollowingtransactionsforthemonthofMay.+10,0001.+10,000CashAccountsReceivableEquipmentAccountsPayableCommonStock++=+1.Stockholdersinvested$10,000cashtostarttherepairshop.InvestmentAssetsLiabilities13YeandSunAccountingEnglish@2009+10,0001.+10,0002.Purchasedequipmentfor$5,000cash.-5,0002.+5,000InvestmentStockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilities14YeandSunAccountingEnglish@2009+10,0001.+10,0003.Paid$400cashforMayofficerent.-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarningsExpense+15YeandSunAccountingEnglish@2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,1004.Received$5,100fromcustomersforrepairservice.Revenue+16YeandSunAccountingEnglish@2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,1005.Paiddividendsof$1,000cash.-1,0005.-1,000+17YeandSunAccountingEnglish@2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,100-1,0005.-1,0006.Paidpart-timeemployeesalariesof$2,000.-2,0006.-2,000Expense+18YeandSunAccountingEnglish@2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Expense7.Incurred$250ofadvertisingcosts,onaccount.+250-2507.+19YeandSunAccountingEnglish@2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Revenue+250-2507.8.Providedrepairservicesonaccounttocustomers$750.+7508.+750+20YeandSunAccountingEnglish@2009 6,820 +

630 + 5,000 = 250 + 10,000+ 2,200+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000+250-2507.+7508.+7509.Collected$120cashforservicespreviouslybilled.+1209.-120+21YeandSunAccountingEnglish@2009Companiespreparefourfinancialstatementsfromthesummarizedaccountingdata:BalanceSheetIncomeStatementStatementofCashFlowsRetainedEarningsStatement22YeandSunAccountingEnglish@2009IncomeStatementReportstherevenuesandexpensesforaspecificperiodoftime.Netprofit–revenuesexceedexpenses.Netloss–expensesexceedrevenues.23YeandSunAccountingEnglish@2009IncomeStatementRetainedEarningsStatementNetprofitisneededtodeterminetheendingbalanceinretainedearnings.24YeandSunAccountingEnglish@2009RetainedEarningsStatementStatementindicatesthereasonswhyretainedearningshasincreasedordecreasedduringtheperiod.25YeandSunAccountingEnglish@2009BalanceSheetRetainedEarningsStatementTheendingbalanceinretainedearningsisneededinpreparingthebalancesheet.26YeandSunAccountingEnglish@2009Reportstheassets,liabilities,andstockholders’equityataspecificdate.Assetslistedatthetop,followedbyliabili