会计英语 第一章 ppt

Business transactions always affect at least two elements in the accounting equation.
The accounting equation is:
Assets = Liabilities + Equity
After a transaction is recorded, the accounting equation must be in balance.
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1.1 Accounting is an information system
The accounting
process
Economic activities
Accounting thinks decision makers with economic activities and with the
results of their decisions.
Accounting information
Actions (decisions)
Decision makers
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1.2 Forms of organization
Sole proprietorship
Owned by one person. Owner is personally responsible for business debts.
Partnership
Owned by two or more persons. Partners are personally responsible for all partnership debts.
gains) less expenses (including losses).
The statement of changes in equity reconciles changes in equity (increases are caused by owner investments and net income, while decreases result from owner withdrawals/dividends and net losses.
Stockholders’ Equity Common Retained
+ Stock +Earnings
+10,000
-400 +5,100 -1,000
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1. +10,000
2. -5,000
+5,000
Stockholders’ Equity
Common
+ Stock
+10,000 Investment
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3. Paid $400 cash for May office rent.
……
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Fields of accounting
financial managerial taxation accounting-related
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1.6 Using the accounting equation
1. Stockholders invested $10,000 cash to start the repair shop.
Cash
Assets
Liabilities
Accounts
Accounts
+ Receivable + Equipment =Payable
1. +10,000
Stockholders’ Equity
Corporation
Owned by shares of stock. A corporation is a separate legal entity. It is responsible for its own debts.
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Common
+ Stock
+10,000 Investment
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2. Purchased equipment for $5,000 cash.
Assets
Liabilities
Cash
Accounts
Accounts
+ Receivable + Equipment =Payable
Assets
Liabilities
Cash
Accounts
Accounts
+ Receivable + Equipment =Payable
1. +10,000
2. -5,000
+5,000
3. -400
Stockholders’ Equity Common Retained
+ Stock +Earnings
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1.3 Framework for Preparation and presentation of financial statements
IASC – since 1973 IASB – since 2001 There is a growing trend to adopt accounting
The statement of financial position (balance sheet) details assets, liabilities, and equity.
The statement of cash flows shows the cash inflows and outflows from operating activities, investing activities, and financing activities.
1. +10,000
2. -5,000
+5,000
3. -400
4. +5,100
Stockholders’ Equity Common Retained
+ Stock +Earnings
+10,000
-400 +5,100 Revenue
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5. Paid dividends of $1,000 cash.
Assets
Liabilities
Cash
Accounts
Accounts
+ Receivable + Equipment =Payable
1. +10,000
2. -5,000
+5,000
3. -400
4. +5,100
5. -1,000
The balance sheet details assets, liabilities, and equity.
The statement of cash flows shows the cash inflows and outflows from operating, investing and financing activities.
+10,000
-400 Expense
ቤተ መጻሕፍቲ ባይዱ
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4. Received $5,100 from customers for repair service.
Assets
Liabilities
Cash
Accounts
Accounts
+ Receivable + Equipment =Payable
business entity objectivity cost principle going-concern monetary unit time period revenue recognition or realization principle matching principle full-disclosure principle consistency principle materiality principle conservatism principle
ACCOUNTING ENGLISH 会计英语（简明双语版）
Ye Jianfang & Sun Hongxing 叶建芳 孙红星
上海财经大学出版社
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Lesson 1
An Introduction to Accounting
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Using the accounting equation
• (1)Recording (2)Reporting (Basic Steps of Accounting Processing)
• Example on textbook
Private accountants work for a single employer.
Public accountants are available to the public.
Government accountants work for local, provincial, and federal government agencies.
standards that are in harmony with international accounting standards. ……
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Some accounting concepts and principles:
Users of accounting information – investors and creditors etc.
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1.4 Understanding financial statements
The income statement summarizes net profit (or net loss) resulting from revenues less expenses.
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1.4 Understanding financial statements
The statement of comprehensive income (income statement) summarizes financial performance resulting from income (revenue and
The statement of owner’s equity reconciles changes in owner’s equity (increases are caused by owner investments and net profit, while decreases result from owner withdrawals and net losses).
Users of accounting information – investors and creditors etc.
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1.5 Accounting and its profession
There are three basic types of accountants:
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An example!
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1: Barone’s Repair Shop was started on May. Prepare a tabular analysis of the following transactions for the month of May.