会计英语 1 An Introduction to Accounting

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Types of Accounting Information
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Financial Accounting Constraint – GAAP Users – external Historical General purpose Decisions –
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Lenders Shareholders Government Labour Unions External Auditors
Customers
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Return on Investment Return of Investment
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Investors Periodic Dividends
information Communicates
that is
Consistent
Comparable
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to help users make
better decisions.
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The History and Development of Accounting
Accounting has a long history: ✓ Accounting records date back to the ancient
Creditors Periodic Interest
Sale of Ownership In Future
Repayment of Liabilities
In Future
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1.3 Accounting Profession
The rapid development of accounting in current century brings about large number of professionally trained accountants.
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BROAD STRUTURE OF FINANCIAL ACCOUNTING THEORY
Accounting Assumptions Basic Accounting Principles
Modifying Conventions
➢ Understand some of GAAP
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Investments by owners
Loans from creditors
Monetary resources
Business earnings
Buy land buildings, Purchase material
✓ The growth of organizations, changes in technology, government regulation, and the globalization of economy during the twentieth century have spurred the development of accounting.
Public
Accountin g
Auditing (fixed
intervals) and Taxservices
Business Enterprises; Governmenta l Agencies;
Nonprofit Organization
s
Private
Accountin g
Handle the financial
investing and lending
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Managerial Accounting No constraints Users – internal Future oriented Special purpose Decisions –
operating, investing, financing, planning and evaluation.
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SEC,AICPA,AAA, Companies,individual public accounting firms
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Generally Accepted Accounting Principles
Accounting principles or standards consist of concepts, assumptions, and principles that serve as basic guidelines in accounting practice.
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1.2 Users of Accounting Information
Internal Users
External Users
Managers Officers Internal Auditors Sales Managers Budget Officers Controller
1
Chapter
An Introduction to Accounting
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Learning Objectives
After studying this chapter, you should be able to:
➢ Explain the nature of accounting and its main functions
Pay a return to owners Pay off loans
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Pay taxes
Continue business activity
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1.1 The Nature of Accounting
Accounting is often called the ‘language of business.’ A language is a means of social communication and involves a flow of information from one person to one or more other persons.
records of a business
Corporations
Governme Handle daily Government;
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ቤተ መጻሕፍቲ ባይዱ
accounting Government
Paying
Fee
Salary
Salary
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1.4 The GAAP
WHY DEVELOP GAAP?
➢ Its objective is to help people make better decisions.
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Power of Accounting
is a
Accounting system that
Identifies Records
Relevant Reliable
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✓ Accrual basis accounting became established as debt was more reliably.
✓ The functions of accounting have increased with the rapid development of management science.
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HOW TO DEVELOP GAAP?
In China, they are developed by finance bureau of central government.
In America, they are developed by a social professional organization named FASB(Financial Accounting Standards Board).
Three general classifications are public accounting , private accounting and governmental accounting.
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Supplement Main Task Employers
➢ Understand the history and development of accounting
➢ Identify the users of accounting information
➢ Understand the difference between public accounting and private accounting
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Statements of Financial Accounting Standards
Discussion Memorandum
Public Hearings
FASB
Exposure Draft
Public comment
Statement of Financial Accounting Standards (GAAP)
To be useful, financial accounting information must be assembled and reported objectively. Those who must rely on such information have a right to be assured that the data are free from bias and inconsistency—whether deliberate or not. For this reason, financial accounting relies on certain standards or guides that have been proved useful over the years in imparting economic data.
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Some New fields of accoutning
Financial accounting and managerial accounting Auditing Cost accounting Tax accounting Budgetary accounting Governmental and not-for-profit accounting Human resources accounting Social accounting ……
civilizations of China, Babylonia, Greece and Egypt. ✓ The need for accounting has existed as long as there has been business activity. ✓ Double-entry bookkeeping developed in Europe in the Middle Ages.
equipments
and suppliers
Pay employees
Pay other operating expenses
Produce and market goods and services
Monetary resources (revenues) from sale of goods and services
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Definition of Accounting
➢ Accounting is an information system that identifies, measures, records and communicates relevant, reliable, consistent and comparable information about an organization’s economic activities.