会计学英语电子版课件01

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Review
Which is an advantage of corporations relative to partnerships and sole proprietorships? a. Lower taxes. b. Harder to transfer ownership c. Reduced legal liability for investors. d. Most common form of business organization.
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Forms of Business Organization
Sole proprietorship Partnership Corporation
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Sole Proprietorship
Business owned by one person Simple to establish Owner controlled Tax advantages Owner personally liable Financing difficult
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Review
Which is not one of the three forms of business organization? a. Sole proprietorship. b. Creditorship. c. Partnership. d. Corporation.
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Review
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Balance Sheet
From Retained Earnings Statement
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Statement of Cash Flows
Provides information about cash receipts and cash payments Summarizes for period: month,
Financial Accounting:
Tools for Business Decision Making, 4th Ed.
Kimmel, Weygandt, Kieso
CHAPTER 1
Prepared by
Ellen L. Sweatt Georgia Perimeter College
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Chapter 1
Ownership claims on assets
statement.
Deduct Dividends Ending balance
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Retained Earnings Statement
Do this statement second!
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Balance Sheet
Reports assets and claims to assets. Claims of creditors, liabilities. Claims of owners, stockholders’ equity. Assets = Liabilities + Stockholders’ Equity Specific date – one point in time!
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Users of Financial Information
External Users Ask?
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Types of Business Activity
FinancLeabharlann ng Investing Operating
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Financing Activities
Borrowing creates
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Study Objectives
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6.
Explain the meaning of assets, liabilities, and stockholders’ equity, and state the basic accounting equation. Describe the components that supplement the financial statements in an annual report.
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Users of Financial Information
Internal Users Ask?
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Users of Financial Information
External
Investors Creditors Others
Regulatory agencies Tax authorities Customers Labor Unions Economic planners
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Liabilities
Obligations or debts of business
Notes payable Accounts payable Interest payable Salaries payable Unearned revenue
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Stockholders’ Equity
Land Buildings Vehicles Computers Furniture Equipment
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Operating Activities
Primary activity of business
Selling goods Providing services Manufacturing Cost of Sales Advertising Paying employees Paying utilities
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Users of Financial Information
Internal
Managers who plan, organize and run a business
Marketing managers Production supervisors Finance directors Company officers
quarter, year.
Cash effects of operating, investing, and financing activities.
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Statement of Cash Flows
Where did the cash come from? How was cash used during the period? What was the change in the cash balance during the period? A company cannot survive without cash!
AN INTRODUCTION TO FINANCIAL STATMENTS
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Study Objectives
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Describe the primary forms of business organization. Identify the users and uses of accounting information. Explain the three principal types of business activity. Describe the content and purpose of each of the financial statements.
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Income Statement
Reports operating success or failure for a period. Summarizes revenues and expenses for period: month, quarter, year. If revenue > expense = Net Income.
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Statement of Cash Flows..
Agrees with Balance Sheet
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Assets
Resources owned by the business Cash Accounts receivable Inventories Furniture and fixtures Equipment Supplies
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Operating Activities
Revenues are the increases in assets
resulting from the sale of a product or service Expenses are the cost of assets consumed or services used in generating revenue. If revenue > expense = Net Income If revenue < expense = Net Loss!
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Income Statement
Do this statement first!
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Retained Earnings Statement
Shows changes in retained earnings for period: month, quarter, year Beginning balance Add Net Income from income
liabilities
Bank loans Debt securities Goods on credit or payables
Selling stock creates
stockholders’ equity
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Investing Activities
Obtaining resources or assets to operate the business
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Review