《會計(jì)英語第四版》課件單元1

LessonOne:

IntroductiontoAccounting

Aims:1.Useaccountingvocabulary.2.Explainwhataccountingis.3.Describethefinancialaccountingandmanagerialaccounting.4.Usetheaccountingequationtodescribeanorganization’sfinancialposition.5.Prepareandusethefinancialstatements.6.Usetheaccountingequationtoanalyzebusinesstransactions.7.Explainwhattheaccountingelementsare.1.1

WhatIsAccounting?Accountingprovidesfinancialinformationfordecision-makinginthebusinessworld.

Accountingisaservice-basedprofessionthatprovidesreliableandrelevantfinancialinformationusefulinmakingdecisions.Accountingis“l(fā)anguageofbusiness.”1.2

FinancialAccountingv.sManagerialAccountingAccountinginformationthatisintendedtosatisfytheneedsofresourceowners(externalusers)iscalledfinancialaccounting.Managerialaccountingprovidesusefulinformationthatisneededinoperatinganorganizationbyinternalusers.1.3

FinancialStatementsThefourwidely-usedfinancialstatementsabusinessenterpriseusesare:(1)Incomestatement;(2)StatementofChangesinEquity;(3)BalanceSheet;(4)StatementofCashFlows.1.4

IncomeStatementABCCompanyIncomeStatementForthePeriodEnded2012

Revenue$10

000

Expenses

4

000

Net

Income

$6

000

1.5

RevenueRevenuesareincreasesinretainedearningsfromdeliveringgoodsorservicetocustomersorclients.1.6

ExpenseExpensearedecreasesinretainedearningsthatresultfromoperations.Expensearethecostofdoingbusinessandaretheoppositeofrevenues.Expensesincludeofficerent,salaries,andutilitypaymentsetc.1.7

TheStatementofChangesinEquityABCCompanyStatementofChangesinEquityForthePeriodEnded2012

Beginning

Contributed

Capital$0

Plus:

Capital

Acquisition20

000Ending

Contributed

Capital

20

000

Beginning

Retained

Earnings0

Plus:

Net

Income6

000

Less:

Distribution(4

000)Ending

Retained

Earnings

2

000

Total

Equity

$22

000

1.8

BalanceSheetABCCompanyBalanceSheetasatDecember31,2012Assets$30

000Total

Assets

30

000

Liabilities8

000Equity

Contributed

Capital20

000

Retained

Earnings2

000Total

Equity22

000Total

Liability

and

Equity

(Claims)

$30

000

1.9

AssetsAssetreferstoanyitemofeconomicvalueownedbyanindividualorcorporation.Assetsaredividedintothefollowingcategories:current,long-term,prepaidanddeferred,andintangibleassets1.10

LiabilitiesLiabilitymeansanobligationthatlegallybindsanindividualorcompanytosettleadebt.Liabilitycanincludeaccountspayable,taxes,wages,accruedexpenses,anddeferredrevenues.Currentliabilitiesaredebtspayablewithinoneyear,whilelong-termliabilitiesaredebtspayableoveralongerperiod.1.11

Owners’Equity(Capital)

Owners’equityreferstoownershipinterestinacorporationintheformofcommonstockorpreferredstock.Italsoreferstototalassetsminustotalliabilities,inwhichcaseitisalsoreferredtoasshareholders’equityornetworthorbookvalue.1.12

StatementofCashFlowsABCCompanyStatementofCashFlowsForthePeriodEnded2012

Cash

Flows

from

Operating

Activities

Cash

Receipts

from

Revenue$14

000

Cash

Payments

for

Expenses

(9

000)

Net

Cash

Flow

from

Operating

Activities

5

000

Cash

Flows

from

Investment

Activities

0

Cash

Flows

from

Financing

Activities

Cash

Receipts

from

Borrowed

Funds8

000

Cash

Receipts

from

Capital

Acquisitions20

000

Cash

Payments

for

Distributions(3

000)Net

Cash

Flow

from

Financing

Activities

25

000

Net

Increase

in

Cash30

000

Plus:

Beginning

Cash

Balance0Ending

Cash

Balance

$30

000

1.13

AccountingEquationAssets=ClaimsAssets=Liabilities+Equity1.14

ExampleforAssets=ClaimsNowlet’sseehowtheelementsofaccountingequationchangeduringanoperatingcycle.Wewillhaveafewtransactionsandwillfollowtherelevantchanges.(1)TomCompanyisestablishedwhentheirownerspool$10000intothebusiness.Theeffectsofassetsacquisitionontheaccountingequationare:ClaimsAssets=Liabilities+Equity$10

000=$0+$10

000(2)Next,assumethatTomCompanyobtainsanadditional$4000ofassetsbyborrowingthemfromcreditors.Thisisalsoanassetsourcetransaction.Notethatthebeginningbalancesareoriginatedfromtheendingbalancesofthelasttransaction:ClaimsAssets=Liabilities+EquityBeginning

Balances$10

000=$0+$10

000Effect

of

Borrowing+$4

000=+$4

000Ending

Balances$14

000=$4

000+$10

000

(3)AssumethatTomCompanyreceived$6000inexchangeforservicesthatitprovidedtoitscustomers(notethatwhileassetsincrease,retainedearningsgetbiggeralso):EquityContributedRetainedAssets=Liabilities+

Capital+EarningsBeginning

Balances$14

000=$4

000+$10

000+$0

Effect

of

Revenue+$6

000+$6

000Ending

Balances$20

000=$4

000+$10

000+$6

000

(4)AssumethatTomCompanyhadbeenrequiredtouse$2000ofitsassetstoearn$6000fromtheprevioustransaction.Theeffectoftheassetusetransactionontheaccountingequationisshownasfollows:EquityContributedRetainedAssets=Liabilities+Capital+EarningsBeginning

Balances$20

000=$4

000+

$10

000+$6

000Effect

of

Expenses($2

000)($2

000)Ending

Balances$18

000=$4