会计英语Liabilities and Owners Equity教学课件

会计英语六.一CurrentLiabilities六.一.一DefinitionofCurrentLiabilitiesCurrentliabilitiesarethoseobligationsthatarereasonablyexpectedtobepaidbyusingcurrentassetsorbycreatingothercurrentliabilities.Currentliabilitiescanbeaccountspayable,short-termnotespayable,unearnedrevenue,short-termborrowings,accruedliabilities,dividendspayable,thecurrentportionoflong-termdebt,andsoon..Chapter六LiabilitiesandOwner’sEquityAccountspayableusuallyreferstotheamountdueforthepurchaseofmaterialsbyamanufacturingpanyormerchandisesbyamerchandisingpany.Accountspayableareusuallynotrecordedwhenpurchaseordersareplaced,butwhenlegalrighttothegoodspassestothebuyer.Ifgoodsareintransitattheyearend,thepurchasealsoshouldberecordediftheshipmenttermsindicatethattheownershipofgoodshasbeenpassed.六.一.二AccountsPayableShort-termnotespayableareobligationsintheformofwrittenpromissorynotes.Short-termnotespayablemaybeeitherinterest-bearingornon-interest-bearing.Intheory,short-termnotespayableshouldberecordedatthepresentvalueofthecashoutflowsassociatedwiththenote.六.一.三Short-termNotesPayableShort-termnotespayableareobligationsintheformofwrittenpromissorynotes.Short-termnotespayablemaybeeitherinterest-bearingornon-interest-bearing.Intheory,short-termnotespayableshouldberecordedatthepresentvalueofthecashoutflowsassociatedwiththenote.六.一.四UnearnedRevenueShort-termborrowingsusuallyarisefromcashborrowingsandaregenerallypayabletobanksorloanpanies.ItisfromfinancingactivityItsrepaymentperiodisusuallybetweenthirtydaystooneyear.Atthematuritydate,theborrowingpanyrepaystheprincipalaswellastheinterestsubordinatedtotheprincipal.六.一.五Short-termBorrowingsAccruedliabilitiesarisefromtherecognitionofexpensestobepaidinafutureperiod.Itisalsocalledaccruedexpenses.Examplesofaccruedliabilitiesincludetaxespayable,interestpayable,andemployeepensationpayable.六.一.六AccruedLiabilities一.TaxesPayableShowtheamountthattheentityowesgovernmentofficesfortaxes.二.InterestPayableCostofborrowingandincreaseswiththepassageoftime.三.EmployeepensationPayableEverybusinessincursanumberofaccruedliabilitiesrelatingtopayroll.Thelargestoftheseliabilitiesistheobligationtopayemployeesfortheirservicesrenderedduringtheperiod.Dividendpayableisaliabilitythatiscreatedwhentheboardofdirectorsofacorporationdeclarestopaydividendstoitsstockholders.Itislistedasacurrentliabilitybecausedividendsareusuallypaidwithinseveralweeksofdeclaration.六.一.七DividendPayableSomelong-termdebtarepayableinaseriesofmonthlyorquarterlyinstallments.Inthesecases,thelong-termdebtwillbefirstlylistedasoneofthenon-currentliabilitiesinthebalancesheetwhenitincurs.Thenasitsmaturitydateapproaches,theportionduewithinoneyearoroneoperatingcyclewillbelistedasacurrentliability,andtheremainderofitwillstillbeanon-currentliability.六.一.八CurrentPortionofLong-termObligationNon-currentliabilities,alsocalledLong-termliabilities,areliabilitieswithafuturebenefitandwillbematureinoveroneyear.Inaccounting,thelong-termliabilitiesareshownontherightsideofthebalance-sheetrepresentingthesourcesoflong-termfunds.Examplesofnon-currentliabilitiesarelong-termborrowings,bondspayable,long-termnotespayable,pensionplanandothernon-currentliabilities.六.二Non-CurrentLiabilitiesLong-termborrowingsaregenerallypayabletobanksorloanpanies,butitsrepaymentperiodislongerthanoneyearoroneoperatingcycle.Itisalsorelatedtothefinancingactivityincashflowstatement.六.二.一Long-TermBorrowingsTheissuanceofbondspayableistheequivalentofsplittingalargeloanintoagreatmanyofunit,whichiscalledbond.Eachbondisessentiallyalong-terminterest-bearingnotepayable.Therearemanydifferenttypesofbonds,suchasmortgagebonds,debenturebonds,convertiblebonds,callablebonds,registeredbonds,couponbonds,etc.六.二.二BondsPayableLong-termnotespayableissimilartoshort-termnotespayableexceptthatitsrepaymentperiodexceedsoneyearoroneoperatingcycle.Along-termnotemaybesecuredbyamortgagethatpledgetitletospecificassetstosecurethenote.六.二.三Long-TermNotesPayableApensionplanisacontractbetweenapanyanditsemployeesunderwhichthepanyagreestopayretirementbenefitstoeligibleemployees.Aspensionobligationaccrues,thepanycouldrecordthembyadebittoPensionExpenseaccountandacredittocashaccount.Ifallrequiredpaymentsaremadepromptlytothepensionfundtrustee,noliabilityneedstoberepresentedinthefinancialstatements.六.二.四PensionPlansTherearethreetypicaltypesoforganizations:SoleProprietorshipPartnershipcorporation六.三TypesofOrganizationAsoleproprietorship,alsoknownasasoletraderoraproprietorship,isatypeofbusinessentitythatisownedandranbyanaturalperson.Thereisnolegaldistinctionbetweenitsownerandthebusiness.六.三.一SoleProprietorshipAdvantagesofasoleproprietorship(一)Itiseasytocreate.Whencreateasoleproprietorship,thereisnoneedtonegotiatewithothersortobeagreedbythemandthereisnoneedoftoomuchregisteredcapitaleither.(二)Thefixedcosttomaintainasoleproprietorshipisrelativelylow.(三)Noneedtopaycorporateinetax.Disadvantagesofasoleproprietorship(一)Theownertakesunlimitedresponsibilityforallitslossesanddebtsandthenbearsabigrisk.(二)Theexistenceofasoleproprietorshipisinfluencedbythelifeofitsowner.(三)ItishardtogainalotofmoneyfordailyoperatingApartnershipisanarrangementwheretwoormoreparties,knownaspartners,agreetocooperatetoadvancetheirmutualinterests.Partnersinapartnershipmaybeindividuals,firms,profit-makingorganizations,schools,governmentofficesortheirbinations.Apartnershipmayissueandholdingequityorbegovernedonlybyacontract.Itcanbesubdividedintoordinarypartnershipandlimitedliabilitypartnership.六.三.二PartnershipAcorporationcanbedefinedasan"artificialperson",whichisinvisible,intangibleandcreatedbylawwithanindependentlegalpersonalityandaperpetualexistence.Corporationisthemainformofmodernpaniesanditstwotypicalsubcategoriesarelimitedliabilitycorporationsandincorporatedcorporations.六.三.三CorporationOwner’sequityistheresidualinterestintheassetsofanentityafterreducingitsliability.Stockholders’equityisnormallythetermusedtopresentowners’equityforabusinessorganizedintheformofacorporation.Equitypresentsonlyresidualclaimstoassets,afterallliabilitieshavebeenfullysatisfied.六.四Owner’sEquityStockholdersaretheownerofapany.Theownershipofacorporationcanbedividedintocapitalstock,capitalreserveandretainedearnings.Capitalstockistheamountofsharesauthorizedforissuancebythecorporation’scharter,includingbothmonstockandpreferredstock.Theinterestofstockholderisdeterminedbythenumberofsharesheldbyhimorher.六.四.一RightsofStockholdersThebasicrightsofmonstock:(一)Votingright(二)Dividendandliquidationparticipationright(三)FirstrefusalrightThebasicrightsofpreferredstock:(一)Preferencetodividends(二)PreferencetoassetsRetainedearningsareinethatapanyretainsinthebusiness.Thebalanceofretainedearningsispartofthestockholders’claimonthetotalassetsofthecorporation.六.四.二RetainedEarningsAdividendisadistributionbyacorporationtoitsstockholdersonaproratabasis.Inpractice,thetwopredominatingformsofdividendsarecashdividendandstockdividend.Cashdivi