英文版财务会计第七章
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C3 - 10
Accrual Basis of Accounting
Revenue reported when earned:Example Expense reported when incurred:Example Properly matches revenues and expenses in determining net income Requires adjusting entries at end of period It just sounds mean – it really isn’t
© Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved.
Task Force Image Gallery clip art included in this
electronic presentation is used with the permission of
C3 - 5
The Matching Concept
C3 - 6
Reporting Revenue and Expenses
TWO METHODS Cash Basis of Accounting Accrual Basis of Accounting
C3 - 7
Under the cash basis for the accounting period concept, revenues
C3 - 2
Objectives
1. Explain how the matching concHale Waihona Puke Baidupt relates to the
accrual basis oAf fatcecrosutnutdinygin. g this 2. Explain why acdhjaupsttmere,nytsouarsehnoeuceldssary and list the
NVTech Inc.
C3 - 1
Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand
corner of the screen. You can point and click anywhere on the screen.
Chapter 3
The Matching Concept and the Adjusting Process
Accounting, 21st Edition
Warren Reeve Fess
PowerPoint Presentation by Douglas Cloud
Professor Emeritus of Accounting Pepperdine University
characteristics of abdejuastbinleg teon:tries.
3. Journalize entries for accounts requiring adjustment.
4. Summarize the adjustment process and prepare an adjusted trial balance.
C3 - 4
• Payment for services provided to customers is not always received in the same month that the service is completed.
• If a business wants to know how much revenue it has earned, it must determine the value of services provided, not just the cash received in payment for services rendered.
and expenses are reported in the income statement in the period in
which cash is received or paid.
C3 - 8
Under the accrual basis for the accounting period concept, revenues are reported in the income statement in the period in which they are earned.
2)Why we must think the matching concept in your accounting record?
• Accounting period concept
• similar to personal expenses, not all business expenses are paid monthly. If a business wants to know its true expenses for the month, it must consider all expenses incurred, not just the expenses paid that month.
5. Use vertical analysis to compare financial statement items with each other and with industry averages.
C3 - 3
Objective 1:the matching concept
1)Student paid tuition at the beginning of each term, Asset or Liabilities?
C3 - 9
Cash Basis of Accounting
Revenue reported when cash is received Example:
Expense reported when cash is paid Example:
Does not properly match revenues and expenses
Accrual Basis of Accounting
Revenue reported when earned:Example Expense reported when incurred:Example Properly matches revenues and expenses in determining net income Requires adjusting entries at end of period It just sounds mean – it really isn’t
© Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved.
Task Force Image Gallery clip art included in this
electronic presentation is used with the permission of
C3 - 5
The Matching Concept
C3 - 6
Reporting Revenue and Expenses
TWO METHODS Cash Basis of Accounting Accrual Basis of Accounting
C3 - 7
Under the cash basis for the accounting period concept, revenues
C3 - 2
Objectives
1. Explain how the matching concHale Waihona Puke Baidupt relates to the
accrual basis oAf fatcecrosutnutdinygin. g this 2. Explain why acdhjaupsttmere,nytsouarsehnoeuceldssary and list the
NVTech Inc.
C3 - 1
Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand
corner of the screen. You can point and click anywhere on the screen.
Chapter 3
The Matching Concept and the Adjusting Process
Accounting, 21st Edition
Warren Reeve Fess
PowerPoint Presentation by Douglas Cloud
Professor Emeritus of Accounting Pepperdine University
characteristics of abdejuastbinleg teon:tries.
3. Journalize entries for accounts requiring adjustment.
4. Summarize the adjustment process and prepare an adjusted trial balance.
C3 - 4
• Payment for services provided to customers is not always received in the same month that the service is completed.
• If a business wants to know how much revenue it has earned, it must determine the value of services provided, not just the cash received in payment for services rendered.
and expenses are reported in the income statement in the period in
which cash is received or paid.
C3 - 8
Under the accrual basis for the accounting period concept, revenues are reported in the income statement in the period in which they are earned.
2)Why we must think the matching concept in your accounting record?
• Accounting period concept
• similar to personal expenses, not all business expenses are paid monthly. If a business wants to know its true expenses for the month, it must consider all expenses incurred, not just the expenses paid that month.
5. Use vertical analysis to compare financial statement items with each other and with industry averages.
C3 - 3
Objective 1:the matching concept
1)Student paid tuition at the beginning of each term, Asset or Liabilities?
C3 - 9
Cash Basis of Accounting
Revenue reported when cash is received Example:
Expense reported when cash is paid Example:
Does not properly match revenues and expenses