会计学原理英文ppt课件Chapter_01ACCOUNTINGINBUSINESS

Users of Accounting
C2
Information
External Users
Internal Users
•Lenders •Consumer Groups •Shareholders •External Auditors
•Governments •Customers
•Managers
Notes Receivable
Accounting Equation
Assets = Liabilities + Equity
A1
Accounts Receivable
Vehicles
Store Supplies
Assets
Cash
Resources owned or controlled by a company
Equipment
statements.
Managerial accounting provides information needs for internal decision makers.
C3 Opportunities in Accounting
Financial
•Preparation •Analysis •Auditing
Principles and Assumptions
C5
of Accounting
Now
Future
Going-Concern Assumption
Reflects assumption that the business will continue operating instead of being closed or sold.
internal controls.
Company
Alleged Accounting Abuses
Enron
Inflating income, hid debt, and bribed officials
WorldCom
Understated expenses to inflate income and hid debt
Monetary Unit Assumption
Express transactions and events in monetary, or money, units.
Business Entity Assumption
A business is accounted for separately from other business
concerns
options
Make ethical decision
Use personal ethics to
recognize ethical concern.
Consider all good and bad
consequences.
Choose best option after weighing all consequences.
Sole Proprietorship
Partnership
Corporation
Characteristics of Businesses
Characteristic Proprietorship Partnership Corporation
Business entity
yes
yes
yes
Legal entity Limited liability
Matching Principle
A company must record its expenses incurred to generate the revenue reported.
Full Disclosure Principle
A company is required to report the details behind financial statements that would impact users’ decisions.
•Analysts •Traders •Directors •Underwriters •Planners •Appraisers
•FBI investigators •Market researchers பைடு நூலகம்Systems designers
•Merger services •Business valuation
Sarbanes-Oxley (SOX)
Congress passed the Sarbanes-Oxley Act to help curb financial abuses at companies that issue their stock to the public. Management must issue a report stating that internal control are effective. Auditors must verify the effectiveness of
Taxation
•Preparation •Planning •Regulatory
•Investigations •Consulting •Enforcement
•Legal services •Estate plans
Accounting-related
•Lenders •Consultants
15%
C4
Ethics - A Key Concept
Ethics
Beliefs that distinguish right
from wrong
Accepted standards of good and bad behavior
C4
Ethics - A Key Concept
Identify ethical Analyze
3. Measure revenue by cash received plus cash value of items received.
Cost Principle
Accounting information is based on actual cost. Actual cost is considered objective.
for companies that issue stock to the public.
The International Accounting Standards Board (IASB) issues International Financial Reporting Standards that identify preferred accounting practices to create harmony
no
no
yes
no*
no*
yes
Unlimited life
no
no
yes
Business taxed
no
no
yes
One owner allowed
yes
no
yes
* Proprietorships and partnerships that are set up as LLCs provide limited liability.
Generally Accepted Accounting
C5
Principles
Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP).
Importance of Accounting
C1
Accounting
Identifying Select transactions and events
Recording Input, measure and classify
Communicating Prepare, analyze and interpret
•Regulatory •Consulting •Planning
•Criminal investigation
Managerial
•General accounting •Cost accounting •Budgeting •Internal auditing •Consulting •Controller •Treasurer •Strategy
•Sales Staff
•Officers/Directors •Budget Officers
•Internal Auditors •Controllers
C2
Users of Accounting
Information
External Users
Internal Users
Financial accounting provides external users with financial
Relevant Information
Affects the decision of its users.
Reliable Information
Is trusted by users.
Comparable Information
Is helpful in contrasting organizations.
among accounting practices of different countries.
Principles and Assumptions
C5
of Accounting
Revenue Recognition Principle
1. Recognize revenue when it is earned. 2. Proceeds need not be in cash.
entities, including its owner.
Time Period Assumption
Presumes that the life of a company can be divided into time periods, such as months and years.
Forms of Business Entities
Bristol-Myers Squibb
Inflated revenues and income
Nortel Networds
Understated expenses to inflate income
A1 Transaction Analysis and the Accounting Equation
•Human services •Litigation support
•Entrepreneurs
C3 Accounting Jobs by Area
Public accounting
25%
Private accounting
60%
Government, not-for-profit, & education
Fannie Mae
Inflated income
Adelphia Communications Understated expenses to inflate income and hid debt
AOL Time Warner
Inflated revenues and income
Xerox
Inflated income
Corporation
Owners of a corporation are called shareholders (or stockholders). Shareholders are not personally liable for corporate acts. When a
corporation issues only one class of stock, we call it common stock (or capital stock).
C5 Setting Accounting Principles
Financial Accounting Standards Board is the private group that sets both broad and specific principles.
The Securities and Exchange Commission is the government group that establishes reporting requirements