财务会计(英文版·原书5版)ch

Yu-wanHuang黄玉婉Location:SchoolofEconomics,Technologybuilding,level6,room605.科技楼605室

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ANDLEARNINGARRANGEMENTSLectures:Discussion

ofmainbodyknowledgepresentedintextbook.acoursereview/examinationpreparationsessionwillbeheldinweek16.Tutorials:Discussionofthereviewquestionsandproblems.RequiredResourcesTextbookFinancial

Calculator：Stronglyrecommended!Assessment

SummaryClassparticipationTutorial

questionsMid-testAssignment

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examAccountingInActionFinancialAccounting,SixthEditionChapter1Explainwhataccountingis.Identifytheusersandusesofaccounting.Understandwhyethicsisafundamentalbusinessconcept.Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.Explainthemonetaryunitassumptionandtheeconomicentityassumption.Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Analyzetheeffectsofbusinesstransactionsontheaccountingequation.Understandthefourfinancialstatementsandhowtheyareprepared.StudyObjectivesAccountinginActionEthicsinfinancialreportingGenerallyacceptedaccountingprinciplesAssumptionsWhatisAccounting?TheBuildingBlocksofAccountingTheBasicAccountingEquationUsingtheBasicAccountingEquationFinancialStatementsThreeactivitiesWhousesaccountingdataAssetsLiabilitiesStockholders'equityTransactionanalysisSummaryoftransactionsIncomestatementStatementofretainedearningsBalancesheetStatementofcashflowsWhatisAccounting?SO1Explainwhataccountingis.Thepurposeofaccountingisto:identify,record,andcommunicatetheeconomiceventsofanorganizationtointerestedusers. ThreeActivitiesWhatisAccounting?SO1Explainwhataccountingis.Illustration1-1AccountingprocessTheaccountingprocessincludes

thebookkeepingfunction.ManagementCommonQuestionsHumanResourcesIRSLaborUnionsSECMarketingFinanceInvestorsCreditorsWhoUsesAccountingData?SO2Identifytheusersandusesofaccounting.CustomersInternalUsersExternalUsersCommonQuestionsAskedUser1. Canweaffordtogiveouremployeesapayraise?HumanResources2. Didthecompanyearnasatisfactoryincome?3.Shouldanyproductlinesbeeliminated?4. Iscashsufficienttopaydividendstothestockholders?5. Whatpriceforourproductwillmaximizenetincome?WhoUsesAccountingData?SO2Identifytheusersandusesofaccounting.6. Willthecompanybeabletopayitsshort-termdebts?InvestorsManagementFinanceMarketingCreditorsDiscussionQuestionSO3Understandwhyethicsisafundamentalbusinessconcept.Q1.“Accountingisingrainedinoursocietyanditisvitaltooureconomicsystem.”Doyouagree?Explain.SeenotespagefordiscussionWhoUsesAccountingData?TheBuildingBlocksofAccountingEthicsInFinancialReportingSO3Understandwhyethicsisafundamentalbusinessconcept.Standardsofconductbywhichone’sactionsarejudgedasrightorwrong,honestordishonest,fairornotfair,areEthics.Recentfinancialscandalsinclude:Enron,WorldCom,HealthSouth,AIG,andothers.CongresspassedSarbanes-OxleyActof2002.Effectivefinancialreportingdependsonsoundethicalbehavior.Ethicsarethestandardsofconductbywhichone'sactionsarejudgedas:rightorwrong.honestordishonest.fairornotfair.alloftheseoptions.ReviewQuestionEthicsSO3Understandwhyethicsisafundamentalbusinessconcept.VarioususersneedfinancialinformationTheaccountingprofessionhasattemptedtodevelopasetofstandardsthataregenerallyacceptedanduniversallypracticed.FinancialStatementsBalanceSheetIncomeStatementRetainedEarningsStatementStatementofCashFlowsNoteDisclosureGenerallyAcceptedAccountingPrinciples(GAAP)TheBuildingBlocksofAccountingSO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.OrganizationsInvolvedinStandardSetting:SecuritiesandExchangeCommission(SEC)FinancialAccountingStandardsBoard(FASB)InternationalAccountingStandardsBoard(IASB)SO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.TheBuildingBlocksofAccounting///CostPrinciple(Historical)–dictatesthatcompaniesrecordassetsattheircost.Issues:Reportedatcostwhenpurchasedandalsooverthetimetheassetisheld.Costeasilyverified,whereasmarketvalueisoftensubjective.Fairvalueinformationmaybemoreuseful.TheBuildingBlocksofAccountingSO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.MonetaryUnitAssumption–includeintheaccountingrecordsonlytransactiondatathatcanbeexpressedintermsofmoney.EconomicEntityAssumption–requiresthatactivitiesoftheentitybekeptseparateanddistinctfromtheactivitiesofitsownerandallothereconomicentities.Proprietorship.Partnership.Corporation.AssumptionsSO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.FormsofBusinessOwnershipProprietorshipPartnershipCorporationOwnedbytwoormorepersons.Oftenretailandservice-typebusinessesGenerallyunlimitedpersonalliabilityPartnershipagreementOwnershipdividedintosharesofstockSeparatelegalentityorganizedunderstatecorporationlawLimitedliabilityFormsofBusinessOwnershipGenerallyownedbyoneperson.Oftensmallservice-typebusinessesOwnerreceivesanyprofits,suffersanylosses,andispersonallyliableforalldebts.SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.CombiningtheactivitiesofKelloggandGeneralMillswouldviolatethecostprinciple.economicentityassumption.monetaryunitassumption.ethicsprinciple.AssumptionsSO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.ReviewQuestionAbusinessorganizedasaseparatelegalentityunderstatelawhavingownershipdividedintosharesofstockisaproprietorship.partnership.corporation.soleproprietorship.SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.FormsofBusinessOwnershipReviewQuestionAssetsLiabilitiesStockholders’Equity=+Providestheunderlyingframework

forrecordingandsummarizingeconomicevents.Assetsareclaimedbyeithercreditorsorowners.Claimsofcreditorsmustbepaidbeforeownershipclaims.TheBasicAccountingEquationSO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Providestheunderlyingframework

forrecordingandsummarizingeconomicevents.TheBasicAccountingEquationResourcesabusinessowns.Providefutureservicesorbenefits.Cash,Supplies,Equipment,etc.AssetsAssetsLiabilitiesStockholders’Equity=+SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Providestheunderlyingframework

forrecordingandsummarizingeconomicevents.TheBasicAccountingEquationClaimsagainstassets(debtsandobligations).Creditors-partytowhommoneyisowed.Accountspayable,Notespayable,etc.LiabilitiesAssetsLiabilitiesStockholders’Equity=+SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Providestheunderlyingframework

forrecordingandsummarizingeconomicevents.TheBasicAccountingEquationOwnershipclaimontotalassets.Referredtoasresidualequity.Paid-inCapital,RetainedEarnings(Corporation).Stockholders’EquityAssetsLiabilitiesStockholders’Equity=+SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Stockholders’EquityRevenues

resultfrombusinessactivitiesenteredintoforthepurposeofearningincome.Commonsourcesofrevenueare:sales,fees,services,commissions,interest,dividends,royalties,andrent.Illustration1-6SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Expensesarethecostofassetsconsumedorservicesusedintheprocessofearningrevenue.Commonexpensesare:salariesexpense,rentexpense,utilitiesexpense,taxexpense,etc.Stockholders’EquityIllustration1-6SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.Dividendsarethedistributionofcashorotherassetstostockholders.Dividendsreduceretainedearnings,howeverdividendsarenotanexpense.Stockholders’EquityIllustration1-6SO6 Statetheaccountingequation,anddefineassets,liabilities,andstockholders’equity.UsingTheBasicAccountingEquationTransactions

areabusiness’seconomiceventsrecordedbyaccountants.Maybeexternalorinternal.Notallactivitiesrepresenttransactions.Eachtransactionhasadualeffectontheaccountingequation.SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.Question:

Arethefollowingeventsrecordedintheaccountingrecords?EventSuppliesarepurchasedonaccount.CriterionIsthefinancialposition(assets,liabilities,orstockholders’equity)ofthecompanychanged?SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.Anemployeeishired.Dividendsarepaidtostockholders’.Record/Don’tRecordTransactionsDiscussionQuestionQ18.InFebruary2008,PaulaKinginvestedanadditional$10,000inHardyCompany.Hardy’saccountant,LanceJones,recordedthisreceiptasanincreaseincashandrevenues.Isthistreatmentappropriate?Whyorwhynot?SeenotespagefordiscussionTransactionsSO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.Stockholders’EquityP1-1A:

Barone’sRepairShopwasstartedonMay.PrepareatabularanalysisofthefollowingtransactionsforthemonthofMay.Transactions(Problem)+10,0001.+10,000CashAccountsReceivableEquipmentAccountsPayableCommonStockSO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.++=+1.Stockholdersinvested$10,000cashtostarttherepairshop.InvestmentAssetsLiabilitiesTransactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.2.Purchasedequipmentfor$5,000cash.-5,0002.+5,000InvestmentStockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesTransactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.3.Paid$400cashforMayofficerent.-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarningsExpense+Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,1004.Received$5,100fromcustomersforrepairservice.Revenue+Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,1005.Paiddividendsof$1,000cash.-1,0005.-1,000+Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-5,0002.+5,000-4003.-400Stockholders’EquityCashAccountsReceivableEquipmentAccountsPayableCommonStock++=+AssetsLiabilitiesRetainedEarnings+5,1004.+5,100-1,0005.-1,0006.Paidpart-timeemployeesalariesof$2,000.-2,0006.-2,000Expense+Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-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.+Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-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+ 6,820 +

630 + 5,000 = 250 + 10,000+ 2,200Transactions(Problem)+10,0001.+10,000SO7 Analyzetheeffectsofbusinesstransactionsontheaccountingequation.-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+Companiespreparefourfinancialstatementsfromthesummarizedaccountingdata:BalanceSheetIncomeStatementStatementofCashFlowsRetainedEarningsStatementFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.IncomeStatementFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.Reportstherevenuesandexpensesforaspecificperiodoftime.Netincome–revenuesexceedexpenses.Netloss–expensesexceedrevenues.Netincomewillresultduringatimeperiodwhen:assetsexceedliabilities.assetsexceedrevenues.expensesexceedrevenues.revenuesexceedexpenses.FinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.ReviewQuestionIncomeStatementFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.RetainedEarningsStatementNetincomeisneededtodeterminetheendingbalanceinretainedearnings.FinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.RetainedEarningsStatementStatementindicatesthereasonswhyretainedearningshasincreasedordecreasedduringtheperiod.FinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.BalanceSheetRetainedEarningsStatementTheendingbalanceinretainedearningsisneededinpreparingthebalancesheet.FinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.Reportstheassets,liabilities,andstockholders’equityataspecificdate.Assetslistedatthetop,followedbyliabilitiesandstockholders’equity.Totalassetsmustequaltotalliabilitiesandstockholders’equity.BalanceSheetFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.StatementofCashFlowsBalanceSheetFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.StatementofCashFlowsInformationforaspecificperiodoftime.Answersthefollowing:Wheredidcashcomefrom?Whatwascashusedfor?Whatwasthechangeinthecashbalance?Whichofthefollowingfinancialstatementsispreparedasofaspecificdate?Balancesheet.Incomestatement.Statementofstockholders’equity.Statementofcashflows.FinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.ReviewQuestionDiscussionQuestionQ19.“Acompany’snetincomeappearsdirectlyontheincomestatementandtheretainedearningsstatement,anditisincludedindirectlyinthecompany’sbalancesheet.”Doyouagree?Explain.SeenotespagefordiscussionFinancialStatementsSO8Understandthefourfinancialstatementsandhowtheyareprepared.Ethics:ManagingPersonalFinancialReportingWhenstudentsneedmoneyforschool,theyoftenapplyforfinancialaid.WhydotheDepartmentofEducationandyourschoolwantthisinformati