会计专业英语-上财孙红星-PPT01

Ye and Sun Accounting English @2009
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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.
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Fields of accounting


financial managerial taxation accounting-related
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1.4 Understanding financial statements

The statement of comprehensive income (income statement) summarizes financial performance resulting from income (revenue and 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. The statement of financial position (balance sheet) details assets, liabilities, and equity.
1.3 Framework for Preparation and presentation of financial statements
IASC – since 1973 IASB – since 2001 There is a growing trend to adopt accounting standards that are in harmony with international accounting standards. ……
ACCOUNTING ENGLISH
Ye Jianfang & Sun Hongxing
Ye and Sun Accounting English @2009
1wenku.baidu.com
Lesson 1
An Introduction to Accounting
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1.5 Accounting and its profession

There are three basic types of accountants:
Private accountants work for a single employer. Public accountants are available to the public. Government accountants work for local, provincial, and federal government agencies. ……
After a transaction is recorded, the accounting equation must be in balance. …… Ye and Sun Accounting English

@2009
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Using the accounting equation
• (1)Recording (2)Reporting (Basic Steps of Accounting Processing) • Example on textbook



The statement of cash flows shows the cash inflows and outflows from operating activities, investing activities, and financing activities.
Users of accounting information – investors and creditors etc.
Cash 1. +10,000 2. -5,000 3. -400 4. +5,100 5. -1,000
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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. Owned by two or more persons. Partners are personally responsible for all partnership debts.
Cash 1. +10,000 2. -5,000 3. -400 4. +5,100
Common + Stock
+10,000
Retained +Earnings
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5. Paid dividends of $1,000 cash. Liabilities Assets Accounts Accounts + Receivable + Equipment = Payable +5,000 -400 +5,100 -1,000 Stockholders’ Equity
1. Stockholders invested $10,000 cash to start the repair shop.
Cash 1. +10,000
Liabilities Assets Accounts Accounts + Receivable + Equipment = Payable
Stockholders’ Equity Common + Stock +10,000 Investment
Cash 1. +10,000 2. -5,000
Common + Stock
+10,000 Investment
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3. Paid $400 cash for May office rent. Liabilities Assets Accounts Accounts + Receivable + Equipment = Payable +5,000 -400 Expense Stockholders’ Equity
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2. Purchased equipment for $5,000 cash. Liabilities Assets Accounts Accounts + Receivable + Equipment = Payable +5,000 Stockholders’ Equity
Cash 1. +10,000 2. -5,000 3. -400
Common + Stock
+10,000
Retained +Earnings
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4. Received $5,100 from customers for repair service. Liabilities Assets Accounts Accounts + Receivable + Equipment = Payable +5,000 -400 +5,100 Revenue Stockholders’ Equity
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1.6 Using the accounting equation


Business transactions always affect at least two elements in the accounting equation. The accounting equation is: Assets = Liabilities + Equity

Partnership


Corporation


Owned by shares of stock. A corporation is a separate legal entity. It is responsible for its own debts.
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1.4 Understanding financial statements

The income statement summarizes net profit (or net loss) resulting from revenues less expenses. 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). 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. Users of accounting information – investors and creditors etc.

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Some accounting concepts and principles:



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