Accounting Principles (1)
会计英语入门
会计英语的基础知识及常用术语(1)会计——accountingAccounting is often described as an information system. It is the system that measures business activities, processes information into reports and communicates these findings to decision makers.簿记——bookkeepingBookkeeping is only the part of accounting that records transactions and events.会计原则——accounting principles会计主体原则——business entity principle (each entity must keep accounting records and prepare reports that are distinct from those of the owner and any other entity. It is also known as the separate entity principle).客观性原则——objectivity principle (transactions must be recorded based on independent, unbiased, and verifiable evidence).成本原则——cost principle (all transactions are recorded based on the cash amount received or paid . it is also known as the historical cost principle ).持续性原则——going concern principle (also known as the continuing concern principle).货币计量原则——monetary unit principle (transactions are recorded based on a common currency and not adjusted for changes invalue) .会计分期原则——time period principle (an entity’s activities are divided into specific time period ,such as a year ,and reported on that basis . it is also known as the periodicity principle).收入确认原则——revenue recognition principle (revenue and related expenses are recorded when realized regardless of when cash is actually received or paid . also known as the realization principle).配比原则——matching principle (revenues and expenses must be allocated to the period in which they were actually created).持续性/一贯性原则——consistency principle (an entity must use the same accounting methods period after period so that the financial statements of succeeding periods will be comparable)四类财务报表——four financial statements资产负债表——balance sheetThe balance sheet lists all assets, liabilities, and owner’s equity as of a specific date of an business entity. The balance sheet shows that assets equal the sum of liabilities and owner’s equity.利润表——income statementThe income statement lists revenues and expenses and shows net income or net loss for a period of time, such as a month, of a year.所有者权益变动表——statement of owner’s equityThe statement of owner’s equity shows the changes take place in theowner’s capital during a period of time from net income or net loss, withdrawals, and owner’s investment for a business.现金流量表——cash flow statementThe cash flow statement reports cash receipts and payments as well as cash inflows and outflows in three groups: operating activities, investing activities, and financing activities.美国注册会计师协会——American institute of certified public accountants ( AICPA )中国注册会计师协会——Chinese institute of certified public accountants ( CICPA )。
会计学原理英文版
会计学原理英文版Accounting Principles。
Accounting is the language of business. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. Accounting principles are the rules and guidelines that companies must follow when reporting financial data. These principles are essential for the preparation of financial statements that are accurate and reliable.The basic principles of accounting are generally accepted and are the foundation on which the entire accounting structure is based. They provide a framework for the preparation and presentation of financial statements. The following are some of the key accounting principles:1. Accrual Principle: This principle states that revenue and expenses should be recognized when they areincurred, regardless of when cash is received or paid. This means that revenue is recorded when it is earned and expenses are recorded when they are incurred, regardless of when the cash is actually received or paid out.2. Matching Principle: This principle requires that expenses be matched with revenues. It means that expenses should be recognized in the same period as the revenues to which they relate. This ensures that the financial statements accurately reflect the results of operations for a specific period.3. Cost Principle: According to this principle, assets should be recorded at their original cost. This means that when an asset is acquired, it is recorded at the amount of cash paid or the fair market value of the consideration given to acquire it.4. Going Concern Principle: This principle assumes thata business will continue to operate indefinitely. It means that the financial statements are prepared with the assumption that the business will continue to operate inthe foreseeable future.5. Conservatism Principle: This principle dictates that when in doubt, accountants should choose the method thatwill result in the least favorable outcome for the company. This means that assets and revenues are not overstated, and liabilities and expenses are not understated.6. Consistency Principle: This principle requires that once a company chooses an accounting method or principle,it should continue to use it consistently in the future. This ensures that financial statements are comparable over time.7. Materiality Principle: This principle states that financial information should be disclosed if it could influence the economic decisions of users. If theinformation is immaterial, it does not need to be disclosed.These principles form the basis for the preparation of financial statements that are reliable and comparable. They ensure that financial information is presented in aconsistent and understandable manner, allowing users to make informed decisions. Adhering to these principles is essential for the credibility and integrity of financial reporting.In conclusion, accounting principles are the guidelines that companies must follow when preparing financial statements. They ensure that financial information is accurate, reliable, and comparable. By adhering to these principles, companies can provide users with meaningful and useful financial information, which is essential for making informed economic decisions.。
Principle of Accounting 1 Chap2
FundamentalAccounting PrinciplesJohn J WildKen W ShawBarbara ChiappettaWinston KwokSundar VenkateshSolutions ManualProprietary and ConfidentialThis Manual is the property of The McGraw-Hill Companies, Inc. and protected by copyright laws. This Manual is provided only to authorized professors and instructors for use in preparing for the classes using the affiliated textbook. No other use or distribution of this Manual is permitted. This Manual may not be sold or distributed to or used by any student or other third party. No part of this Manual may be reproduced, displayed or distributed in any form or by any means, electronic or otherwise, without the prior written permission of The McGraw-Hill Companies.Singapore y Boston y Burr Ridge, IL y Dubuque, IA y Madison, WI y New YorkSan Francisco y St. Louis y Bangkok y Kuala Lumpur y Lisbon y London y MadridMexico City y Milan y Montreal y New Delhi y Seoul y Sydney y Taipei y TorontoChapter 2Analyzing and Recording TransactionsQUESTIONS1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaidexpenses (rent, insurance, etc.), office supplies, store supplies, equipment, building, and land.b. Common liability accounts: accounts payable, notes payable, and unearnedrevenue, wages payable, and taxes payable.c. Common equity accounts: owner, capital and owner, withdrawals.2. A note payable is formal promise, usually denoted by signing a promissory note topay a future amount. A note payable can be short-term or long-term, depending on when it is due. An account payable also references an amount owed to an entity. An account payable can be oral or implied, and often arises from the purchase of inventory, supplies, or services. An account payable is usually short-term.3. There are several steps in processing transactions: (1) Identify and analyze thetransaction or event, including the source document(s), (2) apply double-entry accounting, (3) record the transaction or event in a journal, and (4) post the journal entry to the ledger. These steps would be followed by preparation of a trial balance and then with the reporting of financial statements.4. A general journal can be used to record any business transaction or event.5. Debited accounts are commonly recorded first. The credited accounts are commonlyindented.6. Expense accounts have debit balances because they are decreases to equity (andequity has a credit balance).7. A transaction is first recorded in a journal to create a complete record of thetransaction in one place. (The journal is often referred to as the book of original entry.) This process reduces the likelihood of errors in ledger accounts.8. The recordkeeper prepares a trial balance to summarize the contents of the ledgerand to verify the equality of total debits and total credits. The trial balance also serves as a helpful internal document for preparing financial statements and other reports.2-19. The error should be corrected with a separate (subsequent) correcting entry. Theentry’s explanation should describe why the correction is necessary.10. The four financial statements are: statement of comprehensive income (incomestatement), statement of financial position (balance sheet), statement of changes in equity, and statement of cash flows.11. The income statement lists the types and amounts of revenues and expenses, andreports whether the business earned a net income (also called profit or earnings) ora net loss.12. An income statement user must know what time period is covered to judge whetherthe company’s performance is satisfactory. For example, a statement user would not be able to assess whether the amounts of revenue and net income are satisfactory without knowing whether they were earned over a week, a month, a quarter, or a year.13. The balance sheet provides information that helps users understand a company’sfinancial position at a point in time. Accordingly, it is often called the statement of financial position. The balance sheet lists the types and dollar amounts of assets, liabilities, and equity of the business.14. (a) Assets are probable future economic benefits obtained or controlled by a specificentity as a result of past transactions or events. (b) Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. (c) Equity is the residual interest in the assets of an entity that remains after deducting its liabilities. (d) Net assets refer to equity.15. The balance sheet is sometimes referred to as the statement of financial position.16. Debit balance accounts on the Nestlé balance sheet include: Cash and cashequivalents; Short-term investments; Inventories; Trade and other receivables;Prepayments and accrued income; Derivative assets; Current income tax assets;Assets held for sale; Property, plant and equipment; Goodwill; Intangible assets;Investments in associates; Financial assets; Employee benefit assets; Deferred tax assets.Credit balance accounts on the Nestlé balance sheet include: Financial debt; Trade and other payables; Accruals and deferred income; Provisions; Derivative liabilities;Current income tax liabilities; Liabilities directly associated with assets held for sale;Employee benefits liabilities; Deferred tax liabilities; Other payables; Share capital;Treasury shares; Translation reserve; Retained earnings and other reserves; Non-controlling interests.17. The asset account with receivable in its account title is: Accounts receivable. Theliability with payable in its account title is: Accounts payable.18. Puma’s revenue account is titled “Sales.”19. Each of the following is an expense account: Selling and distribution costs;Administrative expenses; Other expenses; Finance costs; Income tax expense.2-2QUICK STUDIESQuick Study 2-1 (5 minutes)a. B Balance sheetb. B Balance sheetc. I Income statementd. B Balance sheete. B Balance sheetf. I Incomestatementg. B Balance sheeth. E Statement of changes in equityi. B Balancesheet2-3Quick Study 2-2 (10 minutes)The likely source documents include:a. Bank statementb. Sales tickete. Telephone billf. Invoice from supplierQuick Study 2-3 (10 minutes)a. Debit e. Credit i. Creditb. Debit f. Debit j. Creditc. Credit g. Creditd. Debit h. CreditQuick Study 2-4 (10 minutes)a. Debit d. Debit g. Debitb. Debit e. Debit h. Creditc. Credit f. Debit i. CreditQuick Study 2-5 (10 minutes)a. Credit e. Credit i. Debitb. Debit f. Debit j. Creditc. Debit g. Credit k. Debitd. Credit h. Credit l. Debit2-4Quick Study 2-6 (15 minutes)Jan.15 Cash......................................................................... 75,000.............................................................. 30,000EquipmentK. Anderson, Capital......................................105,000 Owner invests cash and equipment.OfficeSupplies (650)21Payable (650)AccountsPurchased office supplies on credit.Cash......................................................................... 8,70025Revenue.....................8,700ServicesRemodelingReceived cash for remodeling services.Cash......................................................................... 4,00030Services Revenue....4,000UnearnedRemodelingReceived cash in advance for remodeling services.Quick Study 2-7 (10 minutes)The correct answer is f.Explanation: If a $2,250 debit to Utilities Expense is incorrectly posted as a credit, the effect is to understate the Utilities Expense debit balance by $4,500.This causes the Debit column total on the trial balance to be $4,500 less thanthe Credit column total.Quick Study 2-8 (10 minutes)I i. Ba. B e.b. I f. I j. Ic. E g.I k. BB l. Bd. B h.2-5Quick Study 2-9 (10 minutes)a. Accounting under IFRS follows the same debit and credit system as underUS GAAP.b. The same four basic financial statements are prepared under IFRS and USGAAP: income statement, balance sheet, statement of changes in equity, and statement of cash flows. Although some variations from these titles exist within both systems, the four basic statements are present.c. Accounting reports under both IFRS and US GAAP are likely differentdepending on the extent of accounting controls and enforcement. For example, the absence of controls and enforcement increase the possibility of fraudulent transactions and misleading financial statements. Without controls and enforcement, all accounting systems run the risk of abuse and manipulation.2-6EXERCISESExercise 2-1 (10 minutes)2 a. Record relevant transactions in a journal.4 b. Prepare and analyze the trial balance.1 c. Analyze each transaction from source documents.3 d. Post journal information to ledger accounts.Exercise 2-2 (10 minutes)a. 5 d. 2b. 4 e. 1c. 3Exercise 2-3 (5 minutes)a. 1b. 22-7Exercise 2-4 (15 minutes)Type of Normal Increase Account Account Balance (Dr. or Cr.)a. Fees Earned...............................revenue credit creditb. Equipment..................................asset debit debitc. Notes Payable............................liability credit creditd. Owner Capital.............................equity credit credite. Cash............................................asset debit debitf. LegalExpense............................expense debit debitg. Prepaid Insurance......................asset debit debith. Land............................................asset debit debiti. AccountsReceivable.................asset debit debit Withdrawals....................equity debit debit j. Ownerk. License Fee Revenue................revenue credit credit Revenue....................liability credit credit l. UnearnedExercise 2-5 (15 minutes)Of the items listed, the following effects should be included:a. $34,500 increase in a liability account.b. $7,500 increase in the Cash account.e. $48,000 increase in a revenue account.Explanation: This transaction created a $48,000 revenue, which equals the value of the service provided. Payment is received in the form of a $7,500 increase in cash, a $75,000 increase in the computer equipment, and a $34,500 increase in the company’s liabilities. The net value received by the company is $48,000.2-8Exercise 2-6 (15 minutes)1. Beginning cash balance (debit).............................................$ ?Cash received in October (debits)........................................97,500Cash disbursed in October (credits)..................................... (101,250) Ending cash balance (debit)..................................................$ 16,800Beginning cash balance (debit).............................................$ 20,550 2. Beginning accounts receivable (debit).................................$ 97,500Sales on account in October (debits)................................... ?Collections on account in October (credits)........................ (88,950) Ending accounts receivable (debit)......................................$100,500Sales on account in October (debits)...................................$ 91,950 3. Beginning accounts payable (credit)....................................$147,000Purchases on account in October (credits).........................270,000Payments on accounts in October (debits)..........................( ?) Ending accounts payable (credit).........................................$136,500Payments on accounts in October (debits)..........................$280,5002-9Exercise 2-7 (25 minutes)Aug.1Cash................................................................. 7,500Photography Equipment................................32,500Madison,Capital...................................40,000 K.Owner investment in business.2Prepaid Insurance........................................... 3,000Cash...........................................................3,000Acquired 2 years of insurance coverage.Supplies................................................ 1,400Office5Cash........................................................... 1,400Purchased office supplies.20Cash................................................................. 2,650Earned....................... 2,650FeesPhotographyCollected photography fees.31 Utilities Expense (875)Cash (875)Paid for August utilities.2-10Exercise 2-8 (30 minutes)Photography EquipmentCashAug. 1 7,500 Aug. 2 3,000Aug. 1 32,50020 2,650 5 1,400875K. Madison, Capital31Balance 4,875 Aug. 1 40,000Office Supplies Photography Fees Earned Aug. 5 1,400 Aug. 20 2,650Prepaid Insurance Utilities ExpenseAug. 2 3,000 Aug. 31 875POSE FOR PICSTrial BalanceAugust 31Debit CreditCash...............................................$ 4,875Office supplies..............................1,400Prepaid insurance.........................3,000Photography equipment...............32,500K. Madison, Capital.......................$40,000Photography fees earned............. 2,650Utilities expense............................ 875______Totals.............................................$42,650$42,650Exercise 2-9 (30 minutes)a. Cash.......................................................................... 12,750M. Dexter, Capital.............................................12,750Owner invested in the business.b. Office Supplies (375)Cash (375)Purchased supplies with cash.c. Office Equipment..................................................... 7,050Payable............................................ 7,050 AccountsPurchased office equipment on credit.d. Cash.......................................................................... 1,500Earned......................................................1,500 FeesReceived cash from customer for services.e. Accounts Payable.................................................... 7,050Cash..................................................................7,050 Made payment toward account payable.Receivable............................................... 2,700f. AccountsEarned......................................................2,700 FeesBilled customer for services provided.g. Rent Expense (525)Cash (525)Paid for this period’s rental charge.h. Cash.......................................................................... 1,125AccountsReceivable.......................................1,125 Received cash toward an account receivable.Withdrawals............................................ 1,000Dexter,i. M.Cash..................................................................1,000 Owner withdrew cash for personal use.2-12Exercise 2-9 (concluded)Accounts PayableCash375(e) 7,050(c) 7,050(a) 12,750(b)(d) 1,500(e)7,050Balance525(h) 1,125(g)1,000(i)Balance 6,425M. Dexter, Capital(a) 12,75012,750Balance Accounts Receivable M. Dexter, Withdrawals1,125(i) 1,000(f) 2,700(h)Balance 1,575Balance 1,000Office Supplies Fees Earned1,500(b) 375(d)Balance 375(f) 2,7004,200Balance Office Equipment Rent Expense(c) 7,050(g) 525Balance 7,050Balance 525Exercise 2-10 (15 minutes)DEXTER COMPANYTrial BalanceMay 31, 2011Debit CreditCash.............................................$ 6,425Accounts receivable...................1,575Office supplies (375)Office equipment.........................7,050Accounts payable........................ $ 0M. Dexter, Capital........................ 12,750M. Dexter, Withdrawals...............1,000Fees earned................................. 4,200Rent expense............................... 525_______Totals............................................$16,950$16,950Exercise 2-11 (20 minutes)Transactions that created revenues:b. Accounts Receivable................................. 1,350Revenue................................ 1,350 ServicesProvided services on credit.c. Cash............................................................ 1,575Revenue................................ 1,575 ServicesProvided services for cash.[Note: Revenues are inflows of assets (or decreases in liabilities)received in exchange for goods or services provided to customers.]Transactions that did not create revenues along with the reasons are:a. This transaction brought in cash, but this is an owner investment.d. This transaction brought in cash, but it created a liability because theservices have not yet been provided to the client.e. This transaction changed the form of the asset from accountsreceivable to cash. Total assets were not increased (revenue wasrecognized when the receivable was originally recorded).f. This transaction brought in cash and increased assets, but it alsoincreased a liability by the same amount (no goods or services wereprovided to generate revenue).2-14Exercise 2-12 (20 minutes)Transactions that created expenses:b. Salaries Expense........................................ 1,125Cash...................................................... 1,125 Paid salary of receptionist.d. Utilities Expense (930)Cash (930)Paid utilities for the office.[Note: Expenses are outflows or using up of assets (or the creation ofliabilities) that occur in the process of providing goods or services tocustomers.]Transactions a, c, and e are not expenses for the following reasons:a. This transaction decreased assets in settlement of a previouslyexisting liability, and equity did not change. Cash payment does notmean the same as using up of assets (expense was recorded when thesupplies were used).c. This transaction involves the purchase of an asset. The form of thecompany’s assets changed, but total assets did not change, and theequity did not decrease.e. This transaction is a distribution of cash to the owner. Even thoughequity decreased, the decrease did not occur in the process ofproviding goods or services to customers.Exercise 2-13 (15 minutes)TECH TODAYIncome StatementFor Month Ended August 31Revenues:Consulting fees earned........................ $17,000 Expenses:expense.................................. $8,000Salariesexpense........................................ 4,550Rentexpense (560)TelephoneMiscellaneousexpenses (280)expenses.....................................13,390 Total3,610$ income.................................................NetExercise 2-14 (15 minutes)TECH TODAYStatement of Changes in EquityFor Month Ended August 31D. Lopez, Capital, July 31......................... $ 4,000Add: Owner investment.......................... $80,00083,610incomeNet(from Exercise 2-13)..... 3,61087,610 Less: Owner withdrawals......................... (3,000)D. Lopez, Capital, August 31.................... $84,610 Exercise 2-15 (15 minutes)TECH TODAYBalance SheetAugust 31Assets Liabilities Cash.............................. $ 8,360 Accounts payable........$ 8,000 Accounts receivable.... 17,000Office supplies............. 3,250 EquityOffice equipment.......... 18,000 Land.............................. 46,000 D. Lopez, Capital......... 84,610* Total assets.................. $92,610 Total liabilities & equity $92,610* Amount from Exercise 2-14.2-16Exercise 2-16 (20 minutes)=Equity a. Assets -LiabilitiesBeginning of the year........$ 70,000 -$30,000 = $40,000End of the year...................115,000 -46,000 =69,000Net increase in equity........$29,000Net income..........................$29,000Since there were no additional investments or withdrawals, the netincome for the year equals the net increase in owner's equity.b. Net increase in equity.......................................$29,000Add withdrawals (12 months @ $1,250).......... 15,000income.........................................................$44,000NetThe withdrawals were added back because they reduced equitywithout reducing income.c. Net increase in equity.......................................$ 29,000Less additional investment.............................. (45,000)loss..............................................................$(16,000)NetThe investment was deducted because it increased equity withoutcreating income.d. Net increase in equity.......................................$29,000Add withdrawals (12 months @ $1,250).......... 15,000Gross increase in equity...................................$44,000Lessinvestment.............................. (25,000)additionalincome.........................................................$19,000NetThe withdrawals were added back because they reduced equitywithout reducing income and the investments were deductedbecause they increased equity without creating income.Exercise 2-17 (15 minutes)(c)(d)(b)(a)Answers $(49,500) $72,000 $73,000 $(45,000)Computations:Equity, Dec. 31, 2010.....$ 0 $ 0 $ 0 $ 0Owner's investments....120,000 72,000 87,000 210,000Owner's withdrawals.....(49,500) (54,000) (10,000) (55,000)81,000 (4,000) (45,000)Net income (loss).......... 31,500Equity, Dec. 31, 2011.....$102,000$99,000$73,000 $110,000Exercise 2-18 (25 minutes)a. D. Joy created a new business and invested $7,000 cash, $5,600 ofequipment, and $11,000 in automobile(s).b. Paid $3,600 cash in advance for insurance coverage.c. Paid $600 cash for office supplies.d. Purchased $200 of office supplies and $9,400 of equipment on credit.e. Received $2,500 cash for delivery services provided.f. Paid $2,400 cash towards accounts payable.g. Paid $700 cash for gas and oil.2-18Exercise 2-19 (30 minutes)a. Cash.......................................................................... 7,000Equipment................................................................ 5,600Automobiles............................................................. 11,000Capital...................................................23,600 Joy,D.Owner invested in the business.b. Prepaid Insurance.................................................... 3,600Cash..................................................................3,600 Purchased insurance coverage.c. Office Supplies (600)Cash (600)Purchased supplies with cash.d. Office Supplies (200)Equipment................................................................ 9,400Payable............................................ 9,600 Accountsand equipment on credit.suppliesPurchasede. Cash.......................................................................... 2,500Revenue..............................2,500 ServicesDeliveryReceived cash from customer.f. AccountsPayable.................................................... 2,400Cash..................................................................2,400 Made payment on payables.g. Gas and Oil Expense (700)Cash (700)Paid for gas and oil.Exercise 2-20 (20 minutes)Description(1)DifferencebetweenDebit andCreditColumns(2)Columnwith theLargerTotal(3)Identifyaccount(s)incorrectlystated(4)Amount that account(s)is overstated orunderstateda. $2,400 debit to RentExpense is posted as a $1,590 debit. $810 credit Rent Expense Rent Expense isunderstated by $810b. $4,050 credit to Cashis posted twice as twocredits to Cash. $4,050 credit Cash Cash is understated by$4,050c. $9,900 debit to theWithdrawals accountis debited to Owner's Capital. $0 ––Owner’s,CapitalOwner’s,WithdrawalsOwner’s Capitalaccount is understatedby $9,900Owner’s Withdrawals isunderstated by $9,900d. $2,250 debit toPrepaid Insurance is posted as a debit to Insurance Expense. $0 ––PrepaidInsuranceInsuranceExpensePrepaid Insurance isunderstated by $2,250and Insurance Expenseis overstated by $2,250e. $42,000 debit toMachinery is posted as a debit to Accounts Payable. $0 ––MachineryAccountsPayableMachinery isunderstated by $42,000and Accounts Payableis understated by$42,000f. $4,950 credit toServices Revenue is posted as a $495 credit. $4,455 debitServicesRevenueServices Revenue isunderstated by $4,455g. $1,440 debit to StoreSupplies is not posted. $1,440 creditStoreSuppliesStore Supplies isunderstated by $1,4402-20Exercise 2-21 (15 minutes)a. The debit column is correctly stated because the erroneous debit (toAccounts Payable) is deducted from an account with a (larger assumed)credit balance.b. The credit column is understated by $33,900 because of the error indebiting the Accounts Payable account — it should have been credited.c. The Office Equipment account is correctly stated.d. The Accounts Payable account is understated by $33,900. It should havebeen increased (credited) by $16,950 but the posting error decreased(debited) it by $16,950.e. The credit column is $33,900 less than the debit column, or $326,100 intotal ($360,000 - $33,900).Exercise 2-22 (10 minutes)BMWBalance Sheet (in Euro millions)December 31, 2009Assets Equity and liabilitiesNoncurrent assets........ € 6,984 Total equity.......................... € 5,354 Current assets.............. 17,663 Noncurrent liabilities........... 10,943Currentliabilities................. 8,350€24,647liabilities..equityTotal assets.................. €24,647 TotalandPROBLEM SET AProblem 2-1A (90 minutes)Part 1April 1 Cash.............................................................101 100,000OfficeEquipment........................................163 24,000124,000Capital (301)G.Bauer,Owner invested cash and equipment.Rent...............................................131 7,200Prepaid27,200 Cash (101)Prepaid twelve months’ rent.OfficeEquipment........................................163 12,0003Supplies...........................................124 2,400Office14,400Payable (201)AccountsPurchased equip. & supplies on credit.Cash.............................................................101 2,00062,000Revenue (403)ServicesReceived cash for services.AccountsReceivable.................................106 8,00098,000Revenue (403)ServicesBilled client for completed work.Payable......................................201 14,40013 AccountsCash (101)14,400 Paid balance due on account.Insurance......................................128 6,00019 PrepaidCash (101)6,000 Paid premium for insurance.22 Cash.............................................................101 6,400Accounts6,400Receivable (106)Collected part of amount owed by client.Receivable.................................106 2,64025 Accounts2,640Revenue (403)ServicesBilled client for completed work.28 G. Bauer, Withdrawals...............................302 6,2006,200 Cash (101)cash.OwnerwithdrewSupplies...........................................124 80029 OfficePayable...............................201 800 Accountsonaccount.PurchasedsuppliesExpense.........................................690 70030 UtilitiesCash.....................................................101 700 Paid monthly utility bill.2-22。
Accountingprinciples会计原理（英文）
Accountingprinciples会计原理（英文）Accounting Principles Used to Prepare theFinancial StatementsTable of Content1.Introduction (1)2. Analysis of eight accounting principles (1)2.1 Time Period Assumption (1)2.2 Principle of Historical Cost (2)2.3 Full Disclosure Principle (2)2.4 Matching principle (3)2.5 Going Concern Principle (4)2.6 Revenue Recognition Principle (4)2.7 Materiality (5)2.8 Conservatism (5)3.Conclusion (6)References (7)1.IntroductionThe goal of financial statements is to provide users with accounting information relevant to the enterprise financial position, operation outcome, cash flow etc., reflect managers’ performance of fiduciary responsibilities,so as to help financial statement users make proper economic decisions. In this paper, the author will explain eight different accounting principles used to prepare the financial statements with suitable examples or illustration.2. Analysis of eight accounting principles2.1 Time Period AssumptionThe concept of Time Period refers to that accounting information should be collected and handled following timeperiods (Zeff, 2012). Time Period Assumption is a necessary supplement of Going Concern Assumption. This principle lays a foundation for other accounting principles such as Cost Principle and Matching Principle. Assuming an accounting entity should endlessly operate a business, logically the provision of accounting information needs to have regulated time period, which is the premise for accounting to perform effect (Schipper, 2003).The principle of Time Period Assumption manually divides the constant production and operation activities of an enterprise into various time periods, calculate economic activities and report operation outcome by stages (Zeff, 2012). It is because stakeholders need to timely know the financial condition and operation outcome of the enterprise, thus the enterprise should regularly provide accounting information as the basis of decision-making.Clarifying the basic premise of accounting time period has great importance to accounting, Due to the time period, the differences between this period and other period exist, thus generates the differences between accrual basis and cash basis, different types of accounting entities have the benchmark of keeping accounts, and further the accounting methods such as accounts receivable, accounts payable, accrual, deferral, prepaid and so on.In China’s accounting practice, an accounting year refers t o January 1st to December 31st (Zeff, 2012). For example, Financial Statements of 2012 reflects the financialinformation from January 1st 2012 to December 31st 2012. Financial statements which less than one year are called mid-term statements. Mid-term statements are mainly embodied assemi-annual statements and quarterly statements.2.2 Principle of Historical CostPrinciple of Historical Cost means that the recording of accounting elements should use the acquisition cost when economic businesses took place as the standard to measure (Weygandt et al, 2010). The main content of this principle is that all kinds of assets gained by an enterprise should use the primitive cost (actual cost) occurred when purchasing or building to record, and make it as the basis of share and transfer cost (White, 2006). When price of commodities changes, enterprises cannot adjust its accounting value except for state policy changes. Valuation according to actual cost can avoid randomness, make accounting information reliable and easy to know and compare.Principle of Historical Cost is mainly used to determine the cost of assets on the account book. For example, an enterprise spent $5 million buying an office building on January 1st 2010, thus when recording，the actual cost of the building is $5 million. Suppose that till January 1st 2013, the market price of this office building increased to $8 million, at that moment, there is no need to adjust the original recorded value, the original actual cost or the historical cost should be still on the account book. It should be noticed that, it does not mean that recorded value cannot be adjusted. For instance, this enterprise will sell the building, so assets appraisal will be conducted. This is a special case (White, 2006).2.3 Full Disclosure PrincipleFull Disclosure Principle refers to that in order to achieve the just reflection of an enterprise’s economic events and the influence, all necessary information should be fully provided and should be easy for users to understand (Weygandt et al, 2010).The goal of full disclosure is to meet users’ demand fo r decision-making. Full Disclosure Principle has several aspects of meaning.Firstly, comprehensiveness of disclosure. Comprehensiveness means any information which has influence on use rs’ decision-making or reflects economic events should bedisclosed. Horizontally, any information which reflects production and operation condition should be disclosed. Vertically, not only the surface but also the in-depth information should be recorded. Accounting information is mainly provided by financial statements, this kind of regular and unified format has some limitations. The Notions as the supplementary information become more important with the guidance of Full Disclosure Principle (Schipper, 2003). Secondly, the properness of disclosure. Over-disclosure will make users confused. Therefore major programmes should be disclosed in-detail, while less-important programmes can be disclosed less, so as to let users effectively use the information. Thirdly, the effectiveness of disclosure. Understandable is the connection between decision-makers and the effectiveness of decisions.Besides, information should meet the common demands of different users. Lastly, the promptness of disclosure requires obligators to disclose information in specific ways according to laws and regulations.2.4 Matching principleMatching Principle means the income of a certain time period or a certain accounting object should match the corresponding cost, so as to correctly calculate the net profit or loss of the accounting entity during the time period (Weygandt et al, 2010). Matching Principle as a requirement of accountingelements confirmation, is used to determine profits. Economic activities accounting entity will bring some certain income and also spend corresponding costs. Income and cost are the unity of the opposites, profits is the result. Matching Principle is based on Benefit Principle. Direct costs with causal relations and indirect costs without causal relations must be distinguished according to the Matching Principle. Direct costs should be directly matched with income to decide the loss or profit, while indirect costs firstly make apportionment among all products and income with proper standard, and than determine the loss or profit through matching revenues and expenses (Weygandt et al, 2010).Therefore, the Matching Principle has three aspects of meaning. Firstly, income of a product must match the cost of the product. Secondly, income of a time period must match the cost of the time period. Thirdly, income of a department must match thecost of the department.2.5 Going Concern PrincipleGenerally, going concern refers to one enterprise can maintain constant business operation in the foreseeable future (usually 12 months in a year), without intention or risk of bankruptcy (Efendi et al, 2007). In this case, the asset value of the enterprise can be remained, it also has the ability to pay its debt, income potential of going concern can improve the overall value of the enterprise. If an enterprise suffers long-term losses or investment error, insolvency may occur. In severe cases, enterprises cannot go concern, thus assets cannot be recorded according to fair value, but should be investment depreciation according to market price(Zeff, 2012).For instance, an enterprise uses $150000 to buy anequipment and predicts that the equipment can be used for five years and brings the enterprise $40000 every year. Based on Going Concern Principle, the enterprise will not go bankrupt in 5 years. Therefore, the $150000 investment can be regained in 5 years with $30000 cost annually, thus the equipment can gain $10000 per year. However without such assumption, accounting cannot be conducted normally. If the enterprise goes broke after 4 years, the equipment cost must be regained in four years, thus every year should bear $37500, there will be only $2500 profit.Without the assumption, accounting will have no certain time range, thus cannot complete. Similarly, production and operation activities cannot be organized neither (Ryan et al, 2002). 2.6 Revenue Recognition PrincipleRevenue recognition means the time when revenue is recorded. Revenue recognition should solve two problems, one is timing, the other is measuring (Ryan et al, 2002). Revenue recognition mainly includes the recognition of product sales revenue and service revenue. Besides, it also includes the revenue that gain from offering other to use the assets of the enterprise, such as interest, use fee and dividend. This principle must meet four basic premises: definability, accountability, relativity and reliability (Weygandt et al, 2010). Meanwhile, it must conform to some common standards.In No.5 financial accounting concept of morality released by Financial Accounting Standards Board (FASB), according to Revenue Principle, revenue is usuallyrecognized when revenue is realized or realizable, or is earned (Schipper, 2003). Therefore, revenue of selling products is generally recognized on the sales date. Service revenue is confirmed when completing the duty of offering services.Revenue gained from allowing others to use the corporate is gradually recognized with the time passes or the procedure of asset use. While the International Accounting Standards Board (IASB) emphasizes on defining revenue timing from the basic standard that whether the important risks and rewards have been transferred to the buyers (Schipper, 2003).2.7 MaterialityThe Materiality principle has several features. Firstly, the core is one cannot omit or misrepresent important information, the standard of judging importance is to see whether it will influence the decisions of users. Secondly, the concept is proposed from the perspective of information users, main users include investors, shareholders etc. Thirdly, judgment of materiality cannot be separated from the enterprise environment, different enterprises or the same enterprise in different period, the standards may differ (Weygandt et al, 2010). Lastly, judgment of importance cannot neglect its own nature. Some information does not reach the importance, but the nature is serious, thus it has conformed to the requirement of materiality, so it should be disclosed.In terms of the application of this principle, firstly, it can be used in the recognition of post balance sheet events. Matters need to be adjusted or explained means information which reaches to the materiality standard and can influence decision-making should be handled specifically. Secondly, it can be used in making mid-term financial statements. The aim is to improve the promptness of information, therefore it does not require the enterprises to provide complete information like annual financial statements (Weygandt et al, 2010). In addition, the principle can also used in recognition of segmental reporting, trade disclosureof related parties and disclosure of notes to financial statements.2.8 ConservatismThe principle of Conservatism refers to that when dealing with the uncertaineconomic businesses of the enterprises, people should hold the cautious attitude. That is to say, all predictable loss and cost should be recorded and confirmed, while income without 100% certainty cannot be recognized and recorded. In market economy conditions, enterprise inevitably will face risks,implementing the Conservatism principle can help enterprises resolute or prevent risks before the risks come. It is beneficial for enterprises to make correct operation decisions, protect interest of owners and stakeholders, improve enterprises’ competence in market.This principle has both advantages and disadvantages. It has the information features demanded by stakeholders, which can protect their interest so as to avoid unnecessary loss. It is also an effective management method in principle making institutions and a standard when accounting staff deal with the uncertain items. However, it may reduce the quality of accounting information because it has much judgment and estimation. It also brings some convenience for information counterfeiters and managers’ short-term behaviors.3.ConclusionUnder modern corporate system, ownership and managing right of enterprises are separate. Only through accounting information can users precisely judge whether the investment is used scientifically and appropriately. In order to prepare good financial statements, various accounting principles should be adopted, therefore, it is important for accounting professionalsto have a comprehensive understanding of various accounting principles and their applications.References:Efendi, J., Srivastava, A., & Swanson, E. P. (2007). Why do corporate managers misstate financial statements? The role of option compensation and other factors. Journal of Financial Economics, 85(3), 667-708.Ryan, B., Scapens, R. W., & Theobald, M. (2002). Research method and methodology in finance and accounting.Schipper, K. (2003). Principles-based accounting standards. Accounting Horizons, 17(1), 61-72.Weygandt, J. J., Kimmel, P. D., KIESO, D., & Elias, R. Z. (2010). Accounting principles. Issues in Accounting Education, 25(1), 179-180.White, G. (2006). THE ANALYSIS AND USE OF FINANCIAL STATEMENTS, (With CD). Wiley. Com. 33-55.Zeff, S. (2012). Forging accounting principles in five countries: A history and an analysis of trends. 21-46.。
Fundamental Accounting Principles (1)
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01-C3: Ethics
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1-9
Ethics – A Key Concept
The goal of accounting is to provide useful information for decisions. For information to be useful, it must be trusted. This demands ethics in accounting. Ethics are beliefs that distinguish right from wrong. They are accepted standards of good and bad behavior.
External users of accounting information are NOT directly involved in running the organization. Internal users of accounting information ARE directly involved in managing and operating an organization.
Differences between U.S. GAAP and IFRS are decreasing as the FASB and IASB pursue a convergence process aimed to achieve a single set of accounting standards for global use.
Accounting in Business
Chapter 1
PowerPoint Editor: Beth Kane, MBA, CPA
accounting principle 中文版
accounting principle 中文版
会计原则是指在会计实践中所遵循的一系列规则和准则，它们为会计工作提供了基本的指导和约束。
会计原则的制定旨在保证会计信息的准确性、可靠性和一致性，从而为企业的决策提供有力的支持。
会计原则的核心是会计基本假设，即企业实体假设、会计期间假设、货币计量假设和会计核算方法假设。
企业实体假设指企业应该被视为一个独立的经济实体，与其所有者和其他企业区分开来。
会计期间假设指企业的财务报表应该按照一定的时间间隔进行编制，通常是每年一次。
货币计量假设指企业的财务报表应该以货币为计量单位，以反映企业的财务状况和经营成果。
会计核算方法假设指企业应该采用一定的会计核算方法，如成本法、市场价值法等，来计量和报告其财务信息。
除了基本假设外，会计原则还包括会计核算原则、会计确认原则、会计计量原则和会计披露原则。
会计核算原则指企业应该按照一定的程序和方法进行会计核算，以保证财务信息的准确性和可靠性。
会计确认原则指企业应该在实际发生时确认其收入和费用，而不是在收到或支付现金时确认。
会计计量原则指企业应该按照一定的计量方法来计量其资产、负债、收入和费用。
会计披露原则指企业应该按照一定的规定和要求，对其财务信息进行披露，以便外部利益相关者了解企业
的财务状况和经营成果。
总之，会计原则是会计工作的基础和核心，它们为企业提供了一套完整的会计体系和标准，以保证财务信息的准确性、可靠性和一致性。
在实践中，企业应该严格遵守会计原则，加强内部控制，提高财务报告的透明度和可信度，以满足外部利益相关者的需求和期望。
Accounting Principles Accounting for Partnerships
Special partnership forms are:
Limited Partnerships, Limited Liability Partnerships, and Limited Liability Companies.
Helpful Hint In an LLP, all partners have limited liability. There are no general partners.
partner’s death.
12-16
LO 1
Accounting Across the Organization
Dividing Up the Pie
What should you do when you and your business partner disagree to the point where you are no longer on speaking terms? Given how heated business situations can get, this is not an unusual occurrence. Unfortunately, in many instances the partners do everything they can to undermine each other, eventually destroying the business. In some cases, people even steal from the partnership because they either feel that they “deserve it” or they assume that the other partners are stealing from them. It would be much better to follow the example of Jennifer Appel and her partner. They found that after opening a successful bakery and writing a cookbook, they couldn’t agree on how the business should be run. The other partner bought out Ms. Appel’s share of the business. Ms. Appel went on to start her own style of bakery, which she ultimately franchised.
会计学原理Accounting Principle
3、唐宋时期：流水账和眷清账，“四 柱结算法”。 旧管+新收－开除 = 实 在
4、明清时期：“四柱清册” 进－缴 = 存－该
5、近代：引进复式记账方法
二、西方会计的产生
1、起源：中世纪地中海沿岸。 标志——复式记账 卢卡.巴其阿勒—— 《算术、几何与比例概要》
2、演变：佛罗伦萨式、热那亚式、威尼斯式。 3、发展：产业革命。
§1.5 会计假设 assumption
1、会计主体 accounting entity 2、持续经营 going concern 3、会计期间 accounting period 4、货币计量 measuring unit
§1.6 会计信息质量要求
1、客观性 企业应当以实际发生的交易或 事项为依据进行会计确认、计量和报告，如 实反映符合确认核计量要求的各项会计要素 及其他相关信息，保证会计信息真实可靠、 内容完整。
6、重要性 企业提供的会计信息应当反映与 企业财务状况、经营成果和现金流量等有关的 所有重要交易或者事项。
7、谨慎性 企业对交易或事项进行会计确、 计量和报告应当保持应有的谨慎，不应高估 资产或收益、低估负债或费用。
Fundamental accounting principles 会计学原理1234689
会计学原理概念整理C hapter 1 Accounting in Business第一章商业会计1. 会计信息使用者User of accounting information1. 外部信息使用者：External users of accounting information are not directly involved in running theExternal information user organization．银行 Banks储蓄贷款机构savings and loans 使用债权人消费合作社 co-opsLenders（creditors）抵押 mortgage金融机构 finance companies通用财务报表股东、董事会general-purpose financial statement shareholders（investors）、board of directors外部审计人员 external (independent) auditors员工employees工会 labor union美国国税局 the internal revenue service（IRS）政府管理机构 Regulators公用事业委员会Utility boards证券管理机构 securities regulators选举人 voters立法者 legislators政府官员 government officials捐赠人 contributors供应商 suppliers2. 内部信息使用者: Internal users of accounting information are those directly involved in managing andInternal information users operating an organizations研发经理 research and development managers使用采购经理 purchasing managers人力资源经理 human resource managers生产经理 production managers管理会计销售经理 distribution managersManagerial accounting 营销经理 marketing managers服务经理 service managers内部控制：Internal controls are procedures designed to protect company property and equipment, ensure Internal controls reliable accounting reports,promote efficiency , and encourage adherence to company policies．2. 会计领域的工作机会Opportunities in accounting1）四大领域财务 financial管理 managerial税收 taxation相关领域 accounting-related（见表 accounting opportunities Page4 ）2）会计工作所占比例私用会计private accountingAccounting jobs by area公共会计public accounting政府、非营利机构及教育机构government，not-for-profit and education（见表accounting jobs by area Page4）3）会计证书CPA certified public accounting注册公共会计师Accounting certificate CMA certificate in management accounting注册管理会计证书CIA certified Internet auditor注册内部审计证书CB certified bookkeeper 注册簿记员CPP certified payroll professional注册薪金专家PFS personal financial specialist个人理财专家4）一些会计岗位的薪酬Salaries for several accounting position （Page 5）3. 会计基本原则Fundamentals of accounting1.概念accounting is guided by principles ，standards，concepts and assumptions。
Accounting-PrinciplesPPT模板
Section Accounting Principles
Section Accounting Principles
7
Part 2 Intensive Reading
Accounting Recognition and Measurement Principles
New Words and Special Terms
16. encompass [ɪn'kʌmpəs] 17. deliberate [dɪ'lɪbərɪt] 18. materiality [mə;tɪərɪ'ælətɪ] 19. contemporary [kən'tempərərɪ] 20. separately ['sepərɪtlɪ] 21. write-off
2. Put in Use
4 你可以向你的销售人员解释为什么他们不能够在年末得到奖金。
_______________________________________________________________________________
5 你将依赖大量的财务信息来做出你的决策。
_______________________________________________________________________________
Accounting Recognition and Measurement Principles
I. Answer the following questions according to the passage.
Exercises
Section Accounting Principles
会计学原理双语142AccountingPrinciplesSYLLABUS
Jiangxi University of Finance and EconomicsSchool of International Trade and Economics SYLLABUSCourse Title: Principles of AccountingCourse Code: 02016Semester: 142Class No.: AE1Credits: 6Teaching Hours: 64Class Times: Tuesday 8:00am-9:40am, Friday 10:20am-12:00pm Prerequisites: NoneLecturer's InformationName: Dr. Ling JiangEmail : ljiang@Course Description and ObjectivesThis is an introductory financial accounting course. In today's economy, basic accountingknowledge is useful to students of various disciplines, especially those who are in the businessfield. This course is an opportunity of gaining an understanding of the many details ofoperation of a business entity from a financial information perspective. The focus is on thepreparation of corporate financial statements and interpreting the information by simple analyses.It is a prerequisite to more advanced accounting and business courses.Learning OutcomesUpon completion of the course, a student should achieve the following learning outcomes:Understand the operation of the accounting cycle.Understand how to account for business transactions.Understand how to prepare financial statements.Understand how to analyze a business entity's financial condition and operating results by usingfinancial statement information.Develop accounting-related critical thinking, problem solving, and ethical reasoning skills.1Teaching MethodsTeaching methods include formal lecture, group work, individual exercise, and class discussion.AssessmentFinal Examination 50%20% Mid-Term Examination10% Test 110% Test 210% Homework assignments, attendance, and class participation100%TotalTo obtain a passing grade, a student should achieve at least 60% in total.Tests and ExaminationsTests and Examinations will be held when the related learning content has been completed. Test1 covers chapters 1-4, Mid-Term Exam covers chapter 1-7, Test2 covers chapters 8-11, and theFinal Exam will focus on chapters 8-14, plus limited coverage on chapters 1-7. Homework, Attendance, and Class ParticipationIn-class exercises are opportunities to put chapter knowledge to practice. These can includegroup work, individual exercises, and case discussions. Homework problems are assigned toprovide additional exercises.Your InputYou will be expected to:Participate actively in group work, individual exercises, and class discussions. Complete homework assignments, and submit printed copies when they are due. Review textbook chapters, PowerPoint slides, and other study materials.Course outlineChapter 1 Accounting in BusinessChapter 2 Analyzing and Recording Transactions2Chapter 3 Adjusting Accounts and Preparing Financial StatementsChapter 4 Completing the Accounting CycleChapter 5 Accounting for Merchandising OperationsChapter 6 Inventories and Cost of SalesChapter 7 Accounting Information SystemChapter 8 Cash and Internal ControlsChapter 9 Accounting for ReceivablesChapter 10 Plant Assets, Natural Resources, and IntangiblesChapter 11 Current Liabilities and Payroll AccountingChapter 12 Long-Term LiabilitiesChapter 13 Investments and International OperationsChapter 14 Accounting for CorporationsTextbookJohn J. Wild, Ken W. Shaw, and Barbara Chiappetta, “Fundamental Accounting Principles,”21stedition, revised by Xuegang Cui and Qing Rao, English language reprint edition, McGraw-HillEducation (Asia) Co. and China Renmin University Press, 2013.Tentative Schedule34。
1.会计准则和会计制度 英文
1.会计准则和会计制度英文Accounting principles and practices vary across industries and regions, but they all serve a common purpose: to ensure financial transparency and compliance. For a business, having a clear understanding of accounting guidelines is crucial for making informed decisions.In day-to-day operations, accounting principles guide the recording of transactions, from sales to purchases, and ensure that all financial statements are accurate and reliable. This not only helps a business track its performance but also builds trust with investors, lenders, and other stakeholders.The accounting system is the framework that supports these principles. It involves the processes, policies, and procedures that a company follows to maintain its financial records. A well-designed accounting system ensuresefficiency and reduces the chances of errors or fraud.For small businesses, it might be simpler to manage accounting tasks manually. But as a business grows, automating accounting processes becomes essential. This can be done through the use of accounting software that handles tasks like invoicing, tracking expenses, and generating financial reports.Another important aspect is staying updated with accounting standards and regulations. These can change over time, and it's crucial for businesses to adapt their accounting practices accordingly. Failure to comply with regulations can lead to fines, penalties, and even legal issues.In conclusion, having a solid grasp of accounting principles and maintaining an efficient accounting systemis essential for any business. It's not just.。
accounting principle 中文版
会计准则引言会计准则是指规范会计信息处理和报告的一整套原则、规则、假设和约定。
它们是为了确保会计信息的准确、可比和可靠而制定的。
会计准则的制定是经过长期实践和理论探索的结果，具有指导性和约束性。
本文将深入探讨会计准则的含义、重要性以及在不同国家和地区的应用情况。
会计准则的定义和内容会计准则的定义会计准则是指用于指导会计实践和规范会计报告的一系列原则和规则。
它们被广泛接受并具有约束力。
会计准则的制定目的是为了提高会计信息的质量，使其更加准确、可靠和可比。
会计准则的内容会计准则包括以下方面的内容：1.会计核算方法：指导会计公司资产、负债、权益、收入和费用的核算方法，如成本法、公允价值法等；2.会计报告要求：规定会计公司应该按照什么样的格式和方法编制财务报表，包括资产负债表、利润表、现金流量表等；3.会计信息披露：要求会计公司披露一些重要的会计信息，如关键会计政策、重大会计估计等；4.会计核算期间：规定会计公司应该采用什么样的会计核算期间，如一年、半年或更短的期间；5.其他辅助准则：还有一些辅助性的会计准则，如会计政策解释、会计准则解释等，用于解释和补充其他会计准则的内容。
会计准则的重要性经济决策的基础会计准则为经济主体的决策提供了重要的基础。
准确、可靠和可比的会计信息对决策者有着重要的指导作用。
无论是企业管理者、投资者还是政府监管机构，都需要依赖会计准则来进行有效的经济决策。
宏观经济的稳定会计准则对于宏观经济的稳定和发展也具有重要意义。
通过规范会计信息的处理和报告方式，可以提高信息的透明度和真实度，减少经济交易中的不确定性和信息不对称。
这有助于提升市场的效率和公平性，促进经济的健康发展。
国际交流和比较的基础随着国际经济一体化的深入发展，不同国家和地区的经济交流和比较日益频繁。
会计准则的统一和一致性对于不同国家和地区之间的会计信息交流和比较具有重要意义。
只有在相同的准则下，才能保证不同国家和地区的会计信息具有可比性。
会计英语作业一
会计英语作业⼀Accounting Exercises OneⅠ. Match the terms in column A with the definitions in column BA B1. government accountant a. provide useful information for decision-making2. objectives of financial accounting b person must pass a series of examinations andmeet certain other requirements3. private accountant c. work for one employer and offer services such asAccounting, budgeting, and internal auditing4. Certified Public Accountant d. audit tax returns and accumulate financial informationfor federal, provincial, and municipal agencies5. public accountant e. the language of business6. accounting f. offer auditing, management advisory, and tax services7. comprehensive income g. notes payable8. revenues h. sales9. expenses i. interest paid to bank10. gains j. distributions of cash dividends to owners11. losses k. services received as investments by owners12. assets l. land13. liabilities m. losses from incidental transactions of an entity14. equity or net assets n. change in equity of an entity from transactions andcircumstances from non-owner sources15. investments by owners o. residual interest in the assets of an entity16. distributions to owners p. increases in equity from peripheral transactions of an entityⅡ. Decide whether the following statements are true or false. Write T for true and F for false( ) 1. Accountants have an ethical obligation to maintain only moral competence.( ) 2. Accounting equation accounts for the common quantitative relation among accounting elements: Assets = Liabilities + Owner’s Equity( ) 3. Accounting is a system of gathering, summarizing and communicating financial information for a business firm, government or other organizations.( ) 4. Journal entries are made before they have been entered into the ledger accounts.( ) 5. The equality of a trial balance means that there are no error made in the previous accounting procedures. ( ) 6. If at the end of an accounting period there is a debit balance in the income summary account, this means that the revenue has exceeded expense.( ) 7. The important role of the worksheet is to aid the accountant by bringing together all the data needed for preparing financial statements.( ) 8. A worksheet is a substitute for the financial statements.( ) 9. Account Receivable is classified as a current asset.( ) 10. The Allowance for Uncollectible Accounts is a liability because it usually has a net credit ending balance. ( ) 11. Recoveries of an account previously written off are, when an Allowance ofr Uncollectible Accounts account is used, credited to the Bad Debts account.( ) 12. Weighted Average method assigns different unit cost to the same inventory item under both the perpetual inventory system and the periodic inventory method.( ) 13. Inventory pricing methods can be changed from period to period at will to control net income.( ) 14. Under the perpetual inventory system, the Cost of Goods Sold account is debited and the Merchandise Inventory account is credited for each sale of merchandise inventory.( ) 15. When the FIFO method of costing inventory is used, costs are assumed to be charged against revenue in the order in which they are incurred.Ⅲ. Choose the best answer1. Which of the following describes accounting?A. is the language of businessB. is an information systemC. is useful decision makingD. all of the above2. An accounting process includes all of the following steps except ____.A. analyzingB. planningC. classifyingD. summarizing3. Accounting information is used by ____.A. businessesB. government regulation agenciesC. labor unionsD. all of the above4. Traylor Company paid $2,850 on account. The effect of this transaction on the accounting equation is to ____.A. decrease assets and decrease owner’s equityB. increase liabilities and decrease owner’s equity.C. have no effect on total assetsD. decrease assets and decrease liabilities5. Which of these is/ are an example of an asset account? ____.A. CashB. Accounts receivableC. InvestmentsD. All of the above6. The ending Cash account balance is $57,600. during the period, cash receipts equal $124,300. If the cash payments during the period total $135,100, then the beginning Cash amount must have ____.A. $68,400B.$46,800C. $181,900D. Cannot be determined from the information given.7. During 2007, Bustamante Co. incurred salary expense of $240,000. Beginning and ending Salary Payable was $4,000 and $8,000, respectively. In 2007, Bustamante paid salaries of ____.A. $248,000B. $240,000C. $236,000D. $244,0008. An adjusting entry could contain all of following except ____.A. a debit to Unearned RevenueB. a credit to CashC. a debit to Interest ReceivableD. a credit to Salary Payable9. The intangible asset goodwill may be: .A. capitalized only when purchased.B. capitalized either when purchased or created internally.C. capitalized only when created internallyD. written off directly to retained earnings.10. For a non-monetary exchange of plant assets, if the exchange lacks commercial substance, accounting recognition should not be given to: . A. a loss when the assets exchanged. B. a gain when the assets exchangedC. part of a gain when the assets exchanged and cash is received.D. no gain or lass.11. You own a Lawn Service business. If you charge a customer $30 for mowing their lawn, what is the $30 to your business? . A. Revenue. B. An expense. C. A liability D. An obligation12. If total assets were $900,000 and total liabilities were $300,000, the owner’s equity would be:.A. $ 300,000B. $ 600,000C. $ 1200,000D. $ 900,00013. Land is purchased with cash for $40,000. What effect will this transaction have on the accounting equation? .A. Increase assets and owner’s equity by $40,000.B. Increase assets and liabilities by $40,000.C. Decrease owner’s equity by $40,000 and increase assets by $40,000D. No net effect on any of the accounting equation elements.14. The balance in Allowance for Doubtful Accounts, at any given time, represents:A. estimated uncollectible accounts receivable not yet written off.B. the amount of accounts receivable written off.C. the amount reserved to pay for bad debts.D. the amount lost to bad debts15. The method of increasing the expense when the business writes an account off is called:A. aging method.B. allowance method.C. percent of sales method.D. direct write-off methodⅣ. Supply the missing information in the following statementsOneMany people and __1__ use accounting information that __2__ prepare in order to make sound decisions. That’s why it is important for these people to understand how this information is created. To __3__ communication, accountants establish __4__ that business people can use to ensure they are talking about the same thing. Suppose, a bookstore sells books: when should the accountant __5__ the sale----at the moment the books are shipped (accrual accounting) or at the time__6__ for these books is received (cash accounting)? Whether the store owner uses ___7__ or the cash basis accounting rule is not important as long as a rule is established that requires the owner to __8__ which system of rule is being used in __9__. All the rules of measurement for accounting __10__ in one group and called Generally AcceptedAccounting Principles (GAAP).TwoIn practice, it may be necessary to know __1__ of inventory when perpetual inventory records are not maintained and it is impractical to take __2__. For example, a business that uses __3__ may need monthly income statements, but taking a physical inventory each month may be too costly. Moreover, when __4__ such as a fire has destroyed the inventory, the amount of __5__ must be determined. In this case, taking a physical inventory is __6__, and even if __7__ have been kept, these records may also __8__. In such cases, __9__ can be estimated by using (1) the retail method or (2) __10__. Ⅴ. Translate the following into English1. 会计等式2. 复式记账基本原理3. 会计期间4. 确认收⼊原则5. 电汇6. 过账是将分录信息从⽇记账过⼊分类账的过程。
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Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) International Accounting Standards Board (IASB)
LO 2
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►
1-14
Measurement Principles
Balance Sheet Income Statement Statement of Owner's Equity Statement of Cash Flows Note Disclosure
The accounting profession has developed standards that are generally accepted and universally practiced.
ECONOMIC ENTITY ASSUMPTION requires that activities of
the entity be kept separate and distinct from the activities of its owner and all other economic entities.
d. ethics principle.
1-18
LO 2
Assumptions
Question
A business organized as a separate legal entity under state law having ownership divided into shares of stock is a a. proprietorship. b. partnership. c. corporation.
HISTORICAL COST PRINCIPLE (or cost principle) dictates
that companies record assets at their cost.
FAIR VALUE PRINCIPLE states that assets and liabilities
1-1
1
1
Accounting in Action
Learning Objectives
Identify the activities and users associated with accounting. Explain the building blocks of accounting: ethics, principles, and assumptions. State the accounting equation, and define its components. Analyze the effects of business transactions on the accounting equation. Describe the four financial statements and how they are prepared.
1-5
LO 1
1-6
LO 1
Who Uses Accounting Data
EXTERNAL USERS
Illustration 1-3 Questions that external users ask 1-7
LO 1
DO IT! 1
Basic Concepts
Indicate whether the following statements are true or false. 1. The three steps in the accounting process are identification, recording, and communication. 2. Bookkeeping encompasses all steps in the accounting process. 3. Accountants prepare, but do not interpret, financial reports.
1-17
LO 2
Assumptions
Question
Combining the activities of Kellogg and General Mills would violate the a. cost principle. b. economic entity assumption. c. monetary unit assumption.
d. all of these options.
1-11
LO 2
1-12
LO 2
Generally Accepted Accounting Principles
Financial Statements
Various users need financial information
Solution: 1. True
1-8
2. False
3. False
4. False
5. True
LO 1
LEARNING OBJECTIVE
2
Explain the building blocks of accounting: ethics, principles, and assumptions.
1. Congress passed the Sarbanes-Oxley Act to reduce unethical behavior and decrease the likelihood of future corporate scandals. 2. The primary accounting standard-setting body in the United States is the Financial Accounting Standards Board (FASB).
Proprietorship
Partnership
Corporation
Forms of Business Ownership
1-16
LO 2
Forms of Business Ownership
Proprietorship
Partnership
Corporation
Owned by one person Owner is often manager/operator Owner receives any profits, suffers any losses, and is personally liable for all debts
should be reported at fair value (the price received to sell an asset
or settle a liability).
Selection of which principle to follow generally relates to trade-offs between relevance and faithful representation.
communicates
the economic events of an organization to interested users.
1-3
LO 1
Three Activities
Illustration 1-1 The activities of the accounting process
LO 2
Ethics in Financial Reporting
Question
Ethics are the standards of conduct by which one's actions are judged as: a. right or wrong. b. honest or dishonest. c. fair or not fair.
The accounting process includes the bookkeeping function.
1-4
LO 1
Who Uses Accounting Data
INTERNAL USERS
Illustration 1-2 Questions that internal users ask
►
Congress passed Sarbanes-Oxley Act (SOX).
Effective financial reporting depends on sound ethical behavior.
1-9
LO 2
Ethics in Financial Reporting
Illustration 1-4 Steps in analyzing ethics cases and situations 1-10
d. sole proprietorship.
1-19
LO 2
DO IT!
2
Building Blocks of Accounting
Indicate whether each of the following statements presented below is true or false.
2 3
4 5
1-2
LEARNING OBJECTIVE
1
Identify the activities and users associated with accounting.
Accounting consists of three basic activities—it