英文版财务会计PPT .ppt
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英文版财务会计PPT 1
– Cash – Accounts receivable – Merchandise inventory – Furniture – Land
Copyright © 2007 Prentice-Hall. All rights reserved
19
Claims to the Assets
• Liabilities – economic obligations payable to an individual or organization outside the business
13
Reliability (Objectivity) Principle
• Accounting information is based on the most reliable data available
– Verifiable – Free from bias – Individuals would arrive at similar conclusions
– Formulated by Financial Accounting Standards Board (FASB)
Copyright © 2007 Prentice-Hall. All rights reserved
11
GAAP
• Primary objective of financial accounting – provide information that is useful for making investment and lending decisions
Copyright © 2007 Prentice-Hall. All rights reserved
12
Copyright © 2007 Prentice-Hall. All rights reserved
19
Claims to the Assets
• Liabilities – economic obligations payable to an individual or organization outside the business
13
Reliability (Objectivity) Principle
• Accounting information is based on the most reliable data available
– Verifiable – Free from bias – Individuals would arrive at similar conclusions
– Formulated by Financial Accounting Standards Board (FASB)
Copyright © 2007 Prentice-Hall. All rights reserved
11
GAAP
• Primary objective of financial accounting – provide information that is useful for making investment and lending decisions
Copyright © 2007 Prentice-Hall. All rights reserved
12
财务会计入门英文版 PPT 3
LO 4: Prepare Adjusting Entries
Two typical adjustments for asset and/or liability overstatements:
– consumed (or used) asset
Asset Unadjusted Credit balance adjusting entry (-) Expense Debit adjusting entry (+)
LO 1: The Accounting Cycle
1. Record accounting events in journal; post to General Ledger. 2. Prepare Trial Balance. 3. Record adjusting journal entries; post to Ledger; prepare Adjusted Trial Balance. 4. Prepare Financial Statements. 5. Record closing journal entries; post to Ledger; prepare Post Closing Trial Balance. 6. Begin the new accounting period by returning to the first step.
Adjustment for asset or liability understatement:
1. Service or goods provided and customer has not yet paid: called a revenue accrual. 2. No payment has been made or liability recorded for benefits consumed: called an expense accrual. 3. Revenue recorded when cash was received, but obligation to customer not yet satisfied. 4. Expense recorded when cash was paid, but future benefits still exist as of the BS date.
中级财务会计英文课件 (19)
18 - 8
• Total equity. • Often presented before liabilities.
The Corporate Organization
Advantages of a corporation
Continuous Existence
Easy ownership transfer
Articles of incorporation are filed with the state. State issues a corporate charter. Shares of stock issued.
18 - 12
Board of directors appoint officers. Board of directors elected by shareholders.
Limited liability company
• No limit on number of owners.
Limited liability partnership
•
Owners are liable for their own actions but not entirely liable for actions of other partners.
Shareholders’ Equity
Paid-in Capital
Retained Earnings Accumulated Other Comprehensive Income
18 - 2
Financial Reporting Overview
Shareholders' Equity Paid-in-capital: Captial stock: Preferred stock - $100 par value; 1,000 shares authorized; 400 shares issued and outstanding $ 40,000 Common stock - $10 par value; 60,000 shares authorized; 20,000 shares issued and outstanding 200,000 Additional paid-in capital in excess of par value From issuance of preferred stock 10,000 From issuance of common stock 300,000 Total paid-in capital $ 550,000 Retained earnings 121,500 Accumulated other comprehensive income: Net unrealized holding gains (losses) on investments (35,000) Gains (losses) from foreign currency translation 22,000 (13,000) Treasury stock (at cost) (10,000) Total shareholders' equity $ 648,500
• Total equity. • Often presented before liabilities.
The Corporate Organization
Advantages of a corporation
Continuous Existence
Easy ownership transfer
Articles of incorporation are filed with the state. State issues a corporate charter. Shares of stock issued.
18 - 12
Board of directors appoint officers. Board of directors elected by shareholders.
Limited liability company
• No limit on number of owners.
Limited liability partnership
•
Owners are liable for their own actions but not entirely liable for actions of other partners.
Shareholders’ Equity
Paid-in Capital
Retained Earnings Accumulated Other Comprehensive Income
18 - 2
Financial Reporting Overview
Shareholders' Equity Paid-in-capital: Captial stock: Preferred stock - $100 par value; 1,000 shares authorized; 400 shares issued and outstanding $ 40,000 Common stock - $10 par value; 60,000 shares authorized; 20,000 shares issued and outstanding 200,000 Additional paid-in capital in excess of par value From issuance of preferred stock 10,000 From issuance of common stock 300,000 Total paid-in capital $ 550,000 Retained earnings 121,500 Accumulated other comprehensive income: Net unrealized holding gains (losses) on investments (35,000) Gains (losses) from foreign currency translation 22,000 (13,000) Treasury stock (at cost) (10,000) Total shareholders' equity $ 648,500
中级财务会计英文版课件 内部控制 Internal Control-----Financial Accounting
• EFT system on page 346.
• Business insight on page 346.
REVIEW QUESTION
The use of pre-numbered checks in disbursing cash is an application of what internal control principle?
Human Element
A system is only as good as the people operating it.
Collusion
Two people may conspire to override a control
• Do it on page 341.
STUDY OBJECTIVE 3
ESTABLISHING THE FUND
• Two steps to establish a petty cash fund
1 appoint a responsible custodian who will be responsible 2 determine the size of the fund (to cover 3-4 weeks)
INTERNAL CONTROL FOR CASH RECEIPTS
• Register tapes, remittance advices and deposit slips
• Cash should be stored in safes and bank vaults • Access to storage areas should be limited to authorized personnel • Cash registers should be used in executing over-the-counter receipts
威廉斯科特Scott财务会计理论(第七版)全套PPT课件
• Fair value accounting guidance during liquidity pricing • Increased use of internal estimates (value-in-use) • Increased use of cost-based valuation
1-4 Copyright © 2015 Pearson Canada Inc.
1.2 Collapse of the Stock Market Boom of Late 1990s
• Enron • WorldCom • Collapse of public confidence in capital markets • Effects on financial reporting
– Liquidity risk
• Liquidity pricing
– Counterparty risk
>> Continued
1-6 Copyright © 2015 Pearson Canada Inc.
Market Meltdowns, 2007-2008 (continued)
• Financial accounting issues leading up to the market meltdowns
• Off-balance sheet liabilities • Use of expected loss notes to avoid consolidation of
structured investment vehicles • Was disclosure of off-balance sheet liabilities adequate?
1-4 Copyright © 2015 Pearson Canada Inc.
1.2 Collapse of the Stock Market Boom of Late 1990s
• Enron • WorldCom • Collapse of public confidence in capital markets • Effects on financial reporting
– Liquidity risk
• Liquidity pricing
– Counterparty risk
>> Continued
1-6 Copyright © 2015 Pearson Canada Inc.
Market Meltdowns, 2007-2008 (continued)
• Financial accounting issues leading up to the market meltdowns
• Off-balance sheet liabilities • Use of expected loss notes to avoid consolidation of
structured investment vehicles • Was disclosure of off-balance sheet liabilities adequate?
财务会计(英文版·原书第5版)ch02
Chapter 3-25
Normal Balance
Owner’s investments and revenues increase stockholder’s equity (credit).
Dividends and expenses decrease stockholder’s equity (debit).
C redit / C r.
C hapter 3-26
N orm al B alance
Expense
D ebit / D r.
C redit / C r.
N orm al B alance
C hapter 3-27
The purpose of earning revenues is to benefit the stockholders.
recording process. 5. Explain what a ledger is and how it helps in the
recording process. 6. Explain what posting is and how it helps in the
recording process. 7. Prepare a trial balance and explain its purposes.
SO 2 Define debits and credits and explain their use in recording business transactions.
Stockholders’ Equity
Stockholders’ Equity
Debit / Dr.
Credit / Cr.
SO 2 Define debits and credits and explain their use in recording business transactions.
斯科特财务会计理论PPT课件第一章
• E.g., 2007-2008 market meltdowns
– Lack of transparency of asset-backed securities – Excessive risk encouraged by off-balance-sheet activities – Excessive risk encouraged by manager compensation
Copyright © 2012 Pearson Canada Inc
1 - 15
1.10 The Fundamental Problem Of Financial Accounting Theory
• The best measure of net income to control adverse selection not the same as the best measure to motivate manager performance
– Fair value accounting for financial instruments
• Complicated by liquidity pricing
– High leverage of financial institutions
• Off-balance sheet financing liabilities • Use of expected loss notes to avoid consolidation of
• Response of standard setters
– Stopgap measures in response to government pressure
• Fair value accounting guidance during liquidity pricing • Increased use of internal estimates (value-in-use) • Increased use of cost-based valuation
– Lack of transparency of asset-backed securities – Excessive risk encouraged by off-balance-sheet activities – Excessive risk encouraged by manager compensation
Copyright © 2012 Pearson Canada Inc
1 - 15
1.10 The Fundamental Problem Of Financial Accounting Theory
• The best measure of net income to control adverse selection not the same as the best measure to motivate manager performance
– Fair value accounting for financial instruments
• Complicated by liquidity pricing
– High leverage of financial institutions
• Off-balance sheet financing liabilities • Use of expected loss notes to avoid consolidation of
• Response of standard setters
– Stopgap measures in response to government pressure
• Fair value accounting guidance during liquidity pricing • Increased use of internal estimates (value-in-use) • Increased use of cost-based valuation
财务会计概念与应用英文版Lectu
Cash. . . . . . . . . . . . . . . . . . . . . . . .
3,600,000
Hale Waihona Puke Torecordbuilding
.
and
land
acquired
for
$3,600,00101.
Depreciation
• Depreciation
– The process of cost allocation that assigns the original cost of plant and equipment to the periods benefited.
100,000
.
To record annual payment under capital lease.
9
Assets Acquired by
Self Construction
• Self-constructed assets
– Recorded at cost.
– Include all expenditures incurred to build the asset and make it ready for its intended use.
Lease Liability. . . . . . . . . . . . . . . . . . 14,864
Interest Expense. . . . . . . . . . . . . . . . 85,136
Cash. . . . . . . . . . . . . . . . . . . . . . . .
•The owner of property that is leased (rented) to another party.
财务会计学(第13版)PPT第6章
•9
6.1长期股权投资概述
6.1.2投资企业与被投资企业的关系 2.共同控制 (joint control) 合营企业 (1)定义
指按照相关约定对被投资企业所共有的控制,并且该 被投资企业的相关活动必须经过分享控制权的各投资方 一致同意后才能决策。 被各投资方共同控制的企业,一般称为投资企业的 合营企业合营企业。
B公司初始投资成本=12000000×60%=7200000(元)
借:长期股权投资——投资成本
7 200 000
应交税费——应交增值税(进项税额) 12 000
贷:股本
2 000 000
资本公积——资本溢价
5 000 000
银行存款
212 000
•22
6.2 长期股权投资的取得
6.2.2形成非同一控制下控股合并的长期股权投资 1.定义
1)持有的表决权相对于其他投资方持有的表决权份额 较大,以及其他投资方持有的表决权比较分散;
2)持有被投资企业的潜在表决权,如可转换公司债券、 可执行认股权证等;
3)其他合同安排产生的权利; 4)被投资企业以往的表决权行使情况等其他相关事实 和情况。
•7
1.控制 (control) (2)控制的判断
第6章 长期股权投资
long-term stock investment
第6章 长期股权投资
6.1 长期股权投资概述 6.2 长期股权投资的取得 6.3 长期股权投资核算的成本法 6.4 长期股权投资核算的权益法 6.5 长期股权投资的处置 6.6 长期股权投资的减值 6.7 长期股权投资后续计量方法的转换
6.1 长期股权投资概述
6.1.1长期股权投资的性质 长期股权投资(long-term stock investment)指 企业能够对被投资企业实施控制、共同控制或施 加重大影响的权益性投资。
6.1长期股权投资概述
6.1.2投资企业与被投资企业的关系 2.共同控制 (joint control) 合营企业 (1)定义
指按照相关约定对被投资企业所共有的控制,并且该 被投资企业的相关活动必须经过分享控制权的各投资方 一致同意后才能决策。 被各投资方共同控制的企业,一般称为投资企业的 合营企业合营企业。
B公司初始投资成本=12000000×60%=7200000(元)
借:长期股权投资——投资成本
7 200 000
应交税费——应交增值税(进项税额) 12 000
贷:股本
2 000 000
资本公积——资本溢价
5 000 000
银行存款
212 000
•22
6.2 长期股权投资的取得
6.2.2形成非同一控制下控股合并的长期股权投资 1.定义
1)持有的表决权相对于其他投资方持有的表决权份额 较大,以及其他投资方持有的表决权比较分散;
2)持有被投资企业的潜在表决权,如可转换公司债券、 可执行认股权证等;
3)其他合同安排产生的权利; 4)被投资企业以往的表决权行使情况等其他相关事实 和情况。
•7
1.控制 (control) (2)控制的判断
第6章 长期股权投资
long-term stock investment
第6章 长期股权投资
6.1 长期股权投资概述 6.2 长期股权投资的取得 6.3 长期股权投资核算的成本法 6.4 长期股权投资核算的权益法 6.5 长期股权投资的处置 6.6 长期股权投资的减值 6.7 长期股权投资后续计量方法的转换
6.1 长期股权投资概述
6.1.1长期股权投资的性质 长期股权投资(long-term stock investment)指 企业能够对被投资企业实施控制、共同控制或施 加重大影响的权益性投资。
财务会计英文版原书第5版ch02bwzg
Steps in the Recording
Process
Journal Ledger
The Recording Process Illustrated
Summary illustration of journalizing and posting
The Trial Balance
Limitations of a trial balance Locating errors Use of dollar signs
Expense
Debit / Dr.
Credit / Cr.
Normal Balance
Chapter 3-25
Revenue
Debit / Dr.
Credit / Cr.
Chapter 2-8
Normal Balance
Chapter 3-27
Normal Balance
Chapter 3-26
SO 2
See notes page for discussion
Chapter 2-11
SO 2 Define debits and credits and explain their use in recording business transactions.
Assets and Liabilities
Common Stock
Debit / Dr.
Credit / Cr.
Retained Earnings
Debit / Dr.
Credit / Cr.
Dividends
Debit / Dr.
Credit / Cr.
Chapter 3-25
Chapter 2-13
2012中级财务会计英文版第十四章课件-净利润FA14net income
A Temporary Difference is the difference between the tax basis of an asset or liability and its reported (carrying or book) amount in the financial statements that will result in taxable amounts or deductible amounts in future years.
（二）Tax basis of liability
负债的计税基础是指负债的账面价值减去未来期间计 算应纳税所得额时按照税法规定可予抵扣的金额。 负债的计 账面 未来期间按照税法规定 － 税基础 = 价值 可予税前扣除的金额 1、因销售商品提供售后服务等原因确认的预计负债； 2、应付职工薪酬； 3、其他负债。
Are the differences accounted for in the financial statements?
Year Reporting Requirement 2007 Deferred tax liability account increased to $4,000 2008 No change in deferred tax liability account 2009 Deferred tax liability account reduced by $4,000
4. Explain the purpose of a deferred tax asset valuation allowance.
5. Explain the effect of various tax rates and tax rate changes on deferred income taxes. 6. Indicate the basic principles of the assetliability method.
（二）Tax basis of liability
负债的计税基础是指负债的账面价值减去未来期间计 算应纳税所得额时按照税法规定可予抵扣的金额。 负债的计 账面 未来期间按照税法规定 － 税基础 = 价值 可予税前扣除的金额 1、因销售商品提供售后服务等原因确认的预计负债； 2、应付职工薪酬； 3、其他负债。
Are the differences accounted for in the financial statements?
Year Reporting Requirement 2007 Deferred tax liability account increased to $4,000 2008 No change in deferred tax liability account 2009 Deferred tax liability account reduced by $4,000
4. Explain the purpose of a deferred tax asset valuation allowance.
5. Explain the effect of various tax rates and tax rate changes on deferred income taxes. 6. Indicate the basic principles of the assetliability method.
财务会计入门英文版
人工智能可以通过数据挖掘和 分析技术，为管理层提供更精
准的决策支持。
审计与监控
人工智能可以协助进行内部审 计和监控，提高企业的财务管
理水平。
区块链技术在财务会计中的应用
安全性与透明性
区块链技术可以提供安全、透明、不可篡改的交易记录，有助于 提高财务信息的可靠性和可信度。
自动化与智能化
区块链技术可以实现智能合约和自动化账务处理，减少人工干预 和错误。
要点三
利润表的解读
通过分析利润表，可以了解企业的盈 利能力、成本结构、经营效率等信息 ，从而评估企业的盈利能力和发展潜 力。
现金流量表
现金流量表概述
现金流量表的构成
现金流量表的解读
现金流量表是反映企业在一定期间内 现金流入和流出的财务报表，它展示 了企业的经营活动、投资活动和筹资 活动所产生的现金流量。
Income Statement
反映企业盈利能力的财务报表，包括 收入、费用、利润的金额和结构。
03
财务会计的核心概念
收入确认
1 2
及时性
确保收入在相关期间内得到确认，而不是提前 或滞后。
完整性
确保所有符合条件的收入都得到记录，不遗漏 任何收入。
3
准确性
确保收入按照相关条款和条件准确地加以记录 。
04
财务报表的解读与分析
资产负债表
资产负债表概述
资产负债表是反映企业在某一 特定日期财务状况的财务报表 ，它展示了一个企业的资产和
负债情况。
资产负债表的构成
资产负债表分为资产和负债两大 部分，资产包括现金、应收账款 、存货等，负债包括应付账款、 短期借款、长期债务等。
资产负债表的解读
通过分析资产负债表，可以了解企 业的资产配置、负债状况、所有者 权益等信息，从而评估企业的偿债 能力和经营稳定性。
准的决策支持。
审计与监控
人工智能可以协助进行内部审 计和监控，提高企业的财务管
理水平。
区块链技术在财务会计中的应用
安全性与透明性
区块链技术可以提供安全、透明、不可篡改的交易记录，有助于 提高财务信息的可靠性和可信度。
自动化与智能化
区块链技术可以实现智能合约和自动化账务处理，减少人工干预 和错误。
要点三
利润表的解读
通过分析利润表，可以了解企业的盈 利能力、成本结构、经营效率等信息 ，从而评估企业的盈利能力和发展潜 力。
现金流量表
现金流量表概述
现金流量表的构成
现金流量表的解读
现金流量表是反映企业在一定期间内 现金流入和流出的财务报表，它展示 了企业的经营活动、投资活动和筹资 活动所产生的现金流量。
Income Statement
反映企业盈利能力的财务报表，包括 收入、费用、利润的金额和结构。
03
财务会计的核心概念
收入确认
1 2
及时性
确保收入在相关期间内得到确认，而不是提前 或滞后。
完整性
确保所有符合条件的收入都得到记录，不遗漏 任何收入。
3
准确性
确保收入按照相关条款和条件准确地加以记录 。
04
财务报表的解读与分析
资产负债表
资产负债表概述
资产负债表是反映企业在某一 特定日期财务状况的财务报表 ，它展示了一个企业的资产和
负债情况。
资产负债表的构成
资产负债表分为资产和负债两大 部分，资产包括现金、应收账款 、存货等，负债包括应付账款、 短期借款、长期债务等。
资产负债表的解读
通过分析资产负债表，可以了解企 业的资产配置、负债状况、所有者 权益等信息，从而评估企业的偿债 能力和经营稳定性。
企业财务会计分析(ppt 24页)(英文版)
企业财务会计分析 (ppt 24页)（英文版）
Efficient Capital Markets
• Switches gears
• Past lectures decided how to spend money (invest)
• Today’s lecture deal with raising money (financing decisions)
180
130
80 Month
Level
Random Walk Theory
S&P 500 Five Year Trend? or
5 yrs of the Coin Toss Game?
230
180
130
80 nt Market Theory
Fundamental Analysts
Rights Issue - example
• YRU Corp currently has 9 million shares outstanding. The market price is $15/sh. YRU decides to raise additional funds via a 1 for 3 rights offer at $12 per share. If we assume 100% subscription, what is the value of each right?
Prospectus - Formal summary that provides information on an issue of securities.
Underpricing - Issuing securities at an offering price set below the true value of the security.
Efficient Capital Markets
• Switches gears
• Past lectures decided how to spend money (invest)
• Today’s lecture deal with raising money (financing decisions)
180
130
80 Month
Level
Random Walk Theory
S&P 500 Five Year Trend? or
5 yrs of the Coin Toss Game?
230
180
130
80 nt Market Theory
Fundamental Analysts
Rights Issue - example
• YRU Corp currently has 9 million shares outstanding. The market price is $15/sh. YRU decides to raise additional funds via a 1 for 3 rights offer at $12 per share. If we assume 100% subscription, what is the value of each right?
Prospectus - Formal summary that provides information on an issue of securities.
Underpricing - Issuing securities at an offering price set below the true value of the security.
会计英语财务会计(ppt版)
executives 高级(gāojí)管理人员
professional judgment
职业判断力
第六页，共八十四页。
ethical standard 道德(dàodé)准那么
integrity 整合性
AICPA
美国(měi ɡuó)注册会计师 协会
第七页，共八十四页。
Chapter 2
第四十六页，共八十四页。
weight average
加权平均
(píngjūn)
第四十七页，共八十四页。
Chapter 7
第四十八页，共八十四页。
accumulated depletion
累计折耗(shéhào)
accumulated depreciation
累计折旧
acquisition cost 取得(qǔdé)本钱
第二十九页，共八十四页。
bad debt recovery 已确认(quèrèn)坏账的收
回
bed debt expense 坏账费用
bank charges 银行(yínháng)手续费
bank credit memorandum
银行贷项通知
第三十页，共八十四页。
bank debit memorandum
closing the accounts
结账
(jié zhànɡ)
closing entry 结账分录
credit balance 贷方余额
第十八页，共八十四页。
debit balance 借方余额
depreciation expense 折旧费用
double-entry accounting
第二十七页，共八十四页。
英文版财务会计51页PPT
Copyright © 2007 Prentice-Hall. All rights reserved
14
Going Concern Concept
• Assumes that the entity will remain in operation for the foreseeable future
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28
Exercise 1-17
5
Ethics
• Audit
– Examination of company’s financial situation – Performed by independent accountants
• Sarbanes-Oxley Act
– Criminal offense to falsify financial statements
• AICPA – Code of Professional Conduct for Accountants
• IMA – Standards of Ethical Conduct
Copyright © 2007 Prentice-Hall. All rights reserved
7
Types of Business Organizations
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2
Decision Makers
• Individuals • Businesses • Investors • Creditors • Taxing Authorities
财务会计英文版 09 PPT
$540,000
Accounting, 5/E GUOWEI HUST 9 - 6
7
华中科技大学管理学院
Gross Profit
Sales revenues – Cost of goods sold = Gross margin (before operating expenses)
Gross margin – Operating expenses = Net income
Specific identification $1,965.00
FIFO
$1,900.00
LIFO
$2,125.00
Weighted-average
$1,977.50
Accounting, 5/E GUOWEI HUST 9 - 24
25
华中科技大学管理学院
Comparison of Methods
Accounting, 5/E
20 Units @ $20 (Jan) GUOWEI HUST 9 - 20
21
华中科技大学管理学院
Last-In, First-Out
Cost of Goods Sold Oct $ 775 May 1,350 Total $2,125
25 Units @ $31 (Oct)
18
华中科技大学管理学院
Weighted Average
$2,825 total cost/100 units = $28.25/unit Cost of goods sold = 70 × $28.25 = $1977.50
Ending inventory = 30 × $28.25 = $847.50 Accounting, 5/E GUOWEI HUST 9 - 18
Accounting, 5/E GUOWEI HUST 9 - 6
7
华中科技大学管理学院
Gross Profit
Sales revenues – Cost of goods sold = Gross margin (before operating expenses)
Gross margin – Operating expenses = Net income
Specific identification $1,965.00
FIFO
$1,900.00
LIFO
$2,125.00
Weighted-average
$1,977.50
Accounting, 5/E GUOWEI HUST 9 - 24
25
华中科技大学管理学院
Comparison of Methods
Accounting, 5/E
20 Units @ $20 (Jan) GUOWEI HUST 9 - 20
21
华中科技大学管理学院
Last-In, First-Out
Cost of Goods Sold Oct $ 775 May 1,350 Total $2,125
25 Units @ $31 (Oct)
18
华中科技大学管理学院
Weighted Average
$2,825 total cost/100 units = $28.25/unit Cost of goods sold = 70 × $28.25 = $1977.50
Ending inventory = 30 × $28.25 = $847.50 Accounting, 5/E GUOWEI HUST 9 - 18
西方财务会计培训教程(英文版)(ppt 68页)PPT学习课件
the same class—called the preemptive right.
LO 1 Discuss the characteristics of the corporate form of organization.
The Corporate Form of Organization
Variety of Ownership Interests
LO 1 Discuss the characteristics of the corporate form of organization.
The Corporate Form of Organization
Capital Stock or Share System
In the absence of restrictive provisions, each share carries the following rights:
Corporate Capital
No-Par Stock
Reasons for issuance: Avoids contingent liability. Avoids confusion over recording par value versus fair market value.
Some states require that no-par stock have a stated value.
Preferred Stock or Common Stock. Additional Paid-in Capital
LO 3 Explain the accounting procedures for issuing shares of stock.
Corporate Capital
LO 1 Discuss the characteristics of the corporate form of organization.
The Corporate Form of Organization
Variety of Ownership Interests
LO 1 Discuss the characteristics of the corporate form of organization.
The Corporate Form of Organization
Capital Stock or Share System
In the absence of restrictive provisions, each share carries the following rights:
Corporate Capital
No-Par Stock
Reasons for issuance: Avoids contingent liability. Avoids confusion over recording par value versus fair market value.
Some states require that no-par stock have a stated value.
Preferred Stock or Common Stock. Additional Paid-in Capital
LO 3 Explain the accounting procedures for issuing shares of stock.
Corporate Capital
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22
Transactions that Affect
Owner’s Equity
OWNER’S EQUITY
INCREASES
OWNER’S EQUITY DECREASES
Owner Investments
10 Copyright © 2007 Prentice-Hall. All rights reserved
GAAP
• Generally Accepted Accounting Principles
– Accounting guidelines that govern how accountants measure, process, and communicate financial information
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28
Exercise 1-17
a. Increased assets (cash) b. No effect on total assets c. Decreased assets (cash) d. Increased assets (equipment)
5
Governing Organizations
• FASB – Financial Accounting Standards Board
• SEC – Securities and Exchange Commission
• AICPA – American Institute of Certified Public Accountants
• Sarbanes-Oxley Act
– Criminal offense to falsify financial statements
• Public Companies Accounting Oversight Board
– Monitors work of accountants
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• Financial Accounting – Information for people outside of the company
• Managerial Accounting – Information for internal decision makers
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13
Reliability (Objectivity) Principle
• Accounting information is based on the most reliable data available
– Verifiable – Free from bias – Individuals would arrive at similar conclusions
– Formulated by Financial Accounting Standards Board (FASB)
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11
GAAP
• Primary objective of financial accounting – provide information that is useful for making investment and lending decisions
– Salary expense – Rent expense – Utilities expense – Interest expense
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25
Exercise 1-18
Assets Liabilities Owner’s Equity
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21
The Accounting Equation
Assets = Liabilities + Owner’s Equity
Economic Resources
Claims to Economic Resources
8
Types of Business Organizations
• Proprietorships • Partnerships • Corporations
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9
Objective 2
Apply accounting concepts and principles
Owner Withdrawals
Owner’s Equity
Revenues
Expenses
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23
Revenues
• Amounts earned by delivering goods or services to customers
– Accounts payable – Notes payable – Salary payable
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20
Claims to the Assets
• Owner’s Equity (capital) – claim of business owner to the assets of the business
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ቤተ መጻሕፍቲ ባይዱ
12
Entity Concept
• Accounting Entity – organization that stands apart as a separate economic unit
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16
Stable-Monetary-Unit Concept
• Assumes that the dollar’s purchasing power is stable
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– Cash – Accounts receivable – Merchandise inventory – Furniture – Land
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19
Claims to the Assets
• Liabilities – economic obligations payable to an individual or organization outside the business
• IMA – Institute of Management Accountants
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6
Ethics
• Audit
– Examination of company’s financial situation – Performed by independent accountants
Accounting and the Business Environment
Chapter 1
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Objective 1
Use accounting vocabulary
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7
Standards of Professional Conduct
• AICPA – Code of Professional Conduct for Accountants
• IMA – Standards of Ethical Conduct
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• Individuals • Businesses • Investors • Creditors • Taxing Authorities
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4
Financial vs. Managerial Accounting
Accounting
• Measures • Processes • Communicates…..
Financial information to decision makers
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3
Decision Makers
using same data