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IntroductiontoFinancialAccountingEnglishVersion42023-11-26CATALOGUE目录Part1:IntroductionandBackgPart2:BasicAccountingTermiPart3:FinancialStatementsPart4:AccountingAssumptionsPart5:TypesofBusinessEntityPart1:IntroductionandBackg01Accountingisasetofproceduresandtechniquesusedtorecord,classify,andsummarizeeconomiceventsandtransactionsThemainobjectiveofaccountingistoprovideinformationthatisusefultomanagers,investors,credits,andotherstakeholdersAccountingprovidesfinancialinformationthatisessentialfordecisionmaking,planning,andcontrolDefinitionofAccountingAccountingplaysacriticalroleinbusinessbyprovidinginformationaboutthefinancialstatus,performance,andcashflowsofanorganizationAccountinghelpmanagersmakeinformeddecisionsaboutinvesting,financing,andoperationaldecisionsAccountingprovidesessentialinformationforevaluatingtheperformanceofthebusiness,measuringproduction,andidentifyingareasforimprovementTheRoleofAccountinginBusiTheearliestformsofaccountingcanbetracedbacktourbancivilizationssuchasEgypt,Greece,andRomeThedevelopmentofdoubleentrybookkeepinginthe15thcenturymarkedasignificantadvancementinaccountingpracticesToday,accountinghasbecomeaglobalprofessionwithstandardizedpracticesandregulationsthatensurethequalityandintegrityoffinancialinformationIntheMiddleAges,accountingwasusedbymerchantsandtraderstotracktheflowofgoodsandmoneyTheEvolutionofAccountingPart2:BasicAccountingTermi02Doubleentrybookkeepingasystemofaccountinginwhicheverytransactionisrecordedtwice,onceasadebitandonceasacreditLedgerabookorcomputerfilethatcontainstheaccountsofabusiness,witheachaccountassignedauniquenumberAccountinglanguageAccountinghasitsownlanguage,includingterms,symbols,andconventionsusedtocommunicatefinancialinformationTheLanguageofAccountingGenerallyAcceptedAccountingPrinciples,asetofrulesandguidelinesforpreparingandreportingfinancialstatementsInternationalFinancialReportingStandards,asetofaccountingstandardsdevelopedbytheInternationalAccountingStandardsBoard(IASB)toprovideguidanceonfinancialreportinganindependentreviewofacompany'sfinancialstatementstoensureaccuracyandcompliancewithGAAPandotherlegalrequirementsGAAPIFRSAuditTheFrameworkofAccountingJournalentriesLedgeraccountsTrialbalanceTheRecordingProcessTheinitialentryoftransactionsintotheledger,classifiedaccordingtothenatureofthetransactionindividualaccountsintheledgerthatrepresentdifferentfinancialtransactionsorbalancesalistofallledgeraccountsandtheirbalances,usedtocheckforerrorsandpreparethefinancialstatementsPart3:FinancialStatements03010203BalanceSheetDefinitionItisafinancialstatementthatdisplaysthedistributionofassets,liabilities,andowner'sequityofacompanyatacertainpointintime.TheroleofthebalancesheetThebalancesheetprovidesimportantinformationaboutacompany'sfinancialcondition,helpingstakeholdersunderstandthecompany'sassets,liabilities,andnetassets.ThecompositionofthebalancesheetThebalancesheetusuallyconsistsofthreeparts:assets,liabilities,andowner'sequity.TheBalanceSheetDefinitionofincomestatementTheincomestatementorincomestatementdisplaystheincomeearnedandcostsincurredbyacompanyduringaspecificperiod.TheroleoftheincomestatementTheincomestatementprovidesinformationaboutacompany'sprofitability,helpinginvestorsandmanagersunderstandthecompany'sprofitability.ThecompositionoftheincomestatementTheincomestatementusuallyconsistsofthreeparts:income,cost,andprofit.TheIncomeStatementDefinitionofcashflowstatementThecashflowstatementdisplaysinformationoncashinflowsandoutflowsofacompanyduringaspecificperiod.TheroleofcashflowstatementThecashflowstatementprovidesimportantinformationaboutacompany'scashflowandcashmanagementcapabilities.ThecompositionofthecashflowstatementThecashflowstatementisusuallycomposedofcashinflowsandoutflowsfromoperating,investing,andfinancingactivities.TheStatementofCashFlowsPart4:AccountingAssumptions04MaterialityistheprinciplethataccountingtransactionsandeventsshouldbeconsideredsignificantenoughtobeincludedinthefinancialstatementsMaterialityisanimportantprincipleoffinancialaccountingthatguaranteestheintegrityandaccuracyoffinancialstatementsMaterialityisappliedbyconsideringtheimpactofanitemonthefinancialstatementsandwhichitsignificantlyaffectsthedecisionsofusersofthefinancialstatementsThePrincipleofMateriality要点三Theprincipleofconservationstatesthatthevalueofassetsandliabilitiesshouldbeconservedovertime要点一要点二Thisprincipleisbasedontheassumptionthatthevalueofassetsandliabilitiesisconsistentovertime,exceptforchangesresultingfromeconomiceventssuchasdepreciation,amortization,andinflationTheprincipleofconservationisimportantinfinancialaccountingbecauseitensuresthatthefinancialstatementsreflectthetrueeconomicpositionofacompany要点三ThePrincipleofConservation01Theprincipleofrevenuerecognitionstatesthatrevenueshouldberecognizedwhenitisearnedorrealized02Revenuerecognitionisbasedontheconceptthatacompanyhasavalidclaimtotheproceedsfromthesaleofgoodsorservices03TheprincipleofrevenuerecognitionisimportantinfinancialaccountingbecauseitensuresthatthetimingandamountofrevenuerecognitionareaccuratelyreflectedinthefinancialstatementsThePrincipleofRevenueRecogPart5:TypesofBusinessEntity05AdvantagesEasytoestablish,minimallegalformalities,ownerhasfullcontroloverbusinessdecisionsDisadvantagesOwnerispersonallyfeasibleforbusinessdebts,limitedreliability,diverseraisingcapitalSolidownershipAbusinessentityownedandmanagedbyoneindividualwhoaccountsforpersonalreliabilityforbusinessdebtsSolePromotionDefinition01AbusinessentityownedandmanagedbytwoormoreindividualswhohaveacontractualagreementtoengageinbusinessactivitiestogetherAdvantages02Eas