单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,#,Accounting,会计英语教程和训练,Accounting会计英语教程和训练,1,Objectives of the Course,Develop knowledge and understanding of the underlying principles, concepts and regulations relating to financial accounting,Improve,technical proficiency in the use of double entry techniques,Objectives of the CourseDevelo,2,Learning resources,Text,book,会计英语,第四版，叶建芳 孙红星，上海财经大学出版社,References,Fundamental Accounting Principles.,(19,th,Edition) by,John J. Wild, Ken W. Shaw, and Barbara Chiappetta,Learning resourcesTextbook,3,Assessment of the Course,Part A: Class performance: 20%,Class Attendance 10%,Class Activities 10%,Part B: Mid-term Examination: 30%,Part C: Final Examination: 50%,Assessment of the CoursePart A,4,Chapter 1,Introduction to Accounting,Chapter 1Introduction to Accou,5,Contents,What is accounting,Accounting and its profession,Types of business ownership,Generally accepted accounting principles,Financial statements & accounting elements,Accounting equation,Professional ethics in accounting,ContentsWhat is accounting,6,What is accounting,Accounting is the process of,identifying, measuring, and communicating,economic information to various users.,-American Accounting Association AAA,1966,Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organizations business activities.,What is accountingAccountin,7,Users of Accounting Information,Users of Accounting Informatio,8,Users of Accounting Information,Managers: make planning and control decisions,Shareholders: make further investment decisions,Lenders: evaluate the credibility of the business to make decisions on providing finance to the business,Customers: ensure the quality of goods or service,Government: know the resource allocation in the whole economy,Tax authorities: make tax assessment,Users of Accounting Informatio,9,The accounting profession,The accounting profession,10,The accounting profession,private accounting:,employees working,for businesses.,Public accounting,auditing and tax advice to a vast range of businesses.,government accounting,business regulation and investigation of law violations,The accounting professionpriva,11,The accounting profession,Professional organizations of accountants,American Institute of Certified Public Accounts (AICPA),Chinese Institute of Certified Public Accounts (CICPA),Association of Chartered Certified Accountants (ACCA),Association of International Accountants (AIA),The accounting professionProfe,12,Types of Business ownership,Types of Business,Primary industry,：,Agricultural, rural and mining,Secondary industry: manufacturing and general processing of raw materials,Tertiary industry: trading and service,Trading: Wholesale, Retail,Service: Accountant, Architect, Banker,Types of Business ownershipTyp,13,Types of Business ownership,Sole traders (Proprietorship),Formed and owned by a single person (proprietor,业主,), who also manages the business,It is an accounting entity but not a legal entity,In law, the proprietor is legally responsible for the business.,In accounting, transactions of the proprietorship are accounted for separately from the owners private affairs,Unlimited liabilities: The proprietor is responsible for all debts by the business.,The life of proprietorship ends when the owner either sells/closes down the business or at the owners death or incapacity.,Types of Business ownershipSol,14,Types of Business ownership,Partnership,Similar to Proprietorship except that there are two or more owners who jointly own the business in predetermined proportions.,It brings together the resources and talents of two or more people,Unlimited liability,：,Each partner is personally liable for all the debts of the partnership,Partners share all the profits and bear all losses according to the terms of the partnership agreement,A partnership is terminated when ownership changes through the retirement or death of a partner,Types of Business ownershipPar,15,Types of Business ownership,Corporation,A company is an artificial body created through law and owned by shareholders,A company is a separate legal entity and is able to conduct business in the companys name,Perpetual succession: its existence is unaffected by changes in the ownership of shares in the company,Management and ownership are usually separated,A Board of Directors is elected to run the business on behalf of the shareholders,Types of Business ownershipCor,16,Comparison of the three business forms,Proprietorship,Partnership,Corporation,Owners,Proprietorone owner,Partnerstwo or more owners,Shareholdersmany owners,Life of entity,limited by owners choice or death,limited by owners choice or death,Indefinite,Personal liability of owner(s) for business debts,Proprietor is personally liable,Partnership are personally liable,Shareholders are not personally liable,Comparison of the three busine,17,Advantages & Disadvantages,Advantages,Disadvantages,Proprietorship,Management and ownership by the same person,Unlimited liability for all debts,Subject to less strict government regulations,Unsecured finance may be difficult to obtain,Partnership,Greater opportunity because of combined expertise,Unlimited liability for all debts,Greater Access to capital,Possible disputes between partners,Subject to less strict government regulations,Partnership has to be reformed each time there is a change in the composition of partners,Corporation,Limited liabilities of shareholders,High establishment costs,Perpetual succession,Subject to strict government regulation,Easier access to finance,Advantages & DisadvantagesAdv,18,Generally Accepted Accounting Principles,Financial accounting practice is governed by concepts and rules known as,generally accepted accounting principles (GAAP).,GAAP aims to make information in financial statements,relevant, reliable, and comparable.,Relevant information affects the decisions of its users.,Reliable information is trusted by users.,Comparable information is helpful in contrasting organizations.,Generally Accepted Accounting,19,Generally Accepted Accounting Principles,Revenue Recognition,Matching,Full Disclosure,Consistency,Materiality,Conservatism,Business entity,Objectivity,Cost,Going Concern,Monetary Unit,Time Period,Generally Accepted Accounting,20,Basic Accounting Principles,Business Entity Principle,（会计主体）,A business entity is an organization or section of organization that stands apart as a separate economic unit,The business is considered separate and distinct from the owner(s) of the business,Transactions are recorded from the point of view of business, not from the owner(s) or any other business,Basic Accounting PrinciplesBus,21,Basic Accounting Principles,Objectivity Principle,（客观性）,Accounting should be objective or unbiased.,Accounting information should be free from bias and personal judgment,Accounting records are based on information that flows from activities documented by objective evidence (invoice, receipts, etc),rather than on,subjective,judgments.,Suppose you want to buy a small building. You believe it is worth $155000, two real estate professionals appraise it at $147000.The owner demands $160000 and you pay that price. What price should be recorded by the objectivity principle?,$160000,The objective evidence of a completed transaction supports the price of $160000,Basic Accounting PrinciplesObj,22,Basic Accounting Principles,Cost Principle,（成本原则）,Accounting information is based on actual cost (with a potential for subsequent adjustments to market),Cost is measured on a cash or equal-to-cash basis.,Implicit assumption: Stable-monetary-unit(,币值稳定）, the dollars purchasing power is relatively stable,A company bought an car at $100,000 one year ago, and now the price drops and the car can be sold for $80,000. What should be the accounting value of the car one year ago and what is now?,One year ago: $100000,Now: $100000,Basic Accounting PrinciplesCos,23,Basic Accounting Principles,Going Concern Principle,（持续经营）,The business is assumed to continue operating instead of being closed or sold.,Costs are spread into the future for as long as the asset will be used in the business,Assets are reported at cost instead of liquidation values that assume closure.,Basic Accounting PrinciplesGoi,24,Basic Accounting Principles,Monetary,Unit Principle,（货币计量）,Transactions must be recorded based,in common units of money,It is also assumed that the unit of money is stable so that inflationary or deflationary trends are not adjusted for; the original amounts recorded stand.,Basic Accounting PrinciplesMon,25,Basic Accounting Principles,Time Period,Principle,（会计分期）,The life of a company can be divided into equal time periods, and financial reports are prepared for those periods.,The time periods covered by financial reports are called,accounting periods,An company usually uses one year as its primary accounting period.,Periodic reports at regular intervals ensures that decision makers obtain timely information.,Basic Accounting PrinciplesTim,26,Basic Accounting Principles,Revenue Recognition Principle,（收入确认）,Revenue is recognized when earned regardless of when,cash is received.,Revenue,is recorded when earned.,The earnings process is complete when services are performed or a seller transfers ownership of products to the buyer.,Proceeds from selling products and services need not be in cash,，,e.g. credit sales.,Revenue is measured by the cash received plus the cash value of any other items received.,Basic Accounting PrinciplesRev,27,Basic Accounting Principles,Matching Principle,（配比）,Accounting reports should match against revenue of all the cost (expenses) incurred in earning that revenue regardless of when they are paid,Expenses should be reported in the same accounting period as revenues that were earned as a result of those expenses.,A client pays Air & Sea $900 on March 15 for service to be performed from April 1 to June 30. Has Air & Sea earned revenue on March 15?,Air & Sea pays $4500 on July 31 for office rent for the next 3 months. Has the company incurred expense on July 31?,Basic Accounting PrinciplesMat,28,Basic Accounting Principles,Full Disclosure Principle,（充分披露）,Financial statements and their accompanying notes include all relevant information about the operations, financial position of the entity.,All material and relevant information should be communicated to users in financial reports.,A business might be involved in litigation, the contingent (possible) liability must be disclosed, as its suppression could materially affect investment decisions by users,Basic Accounting PrinciplesFul,29,Basic Accounting Principles,Consistency Principle,（一致性）,A business should use the same accounting methods and procedures from period to period,An accounting method once adopted should not be changed during an accounting period.,Consistency helps to see the trends in financial position and make comparisons unclouded by changes in accounting method,A significant change and its monetary effect must be fully disclosed in the financial reports,Basic Accounting PrinciplesCon,30,Basic Accounting Principles,Materiality Principle,（重要性）,There should be disclosure of any information which is likely to influence any decision based on the accounting reports,An amount may be ignored if their effects on the financial statements is not important to users.,Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements,Context matters: what is relevant to a small shop might be immaterial to a major corporation,Basic Accounting PrinciplesMat,31,Basic Accounting Principles,Conservatism Principle,（谨慎）,The least optimistic estimate should be selected if two or more alternatives are available.,Prudence is to be used when judgments or estimates are unavoidable.,When risk or uncertainty exists, the preference for possible accounting measurement errors should be in the direction of understatement rather than overstatement of assets and income.,Basic Accounting PrinciplesCon,32,Financial Statements,Balance sheet (Statement of financial position),Income statement,Statement of cash flows,Statement of Owners Equity,Financial StatementsBalance sh,33,Balance Sheet,（资产负债表）,Balance Sheet:,a list of all assets owned and all the liabilities owed by a business at a specific point in time.,Assets:,（资产）,resources controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity,Tangible assets and intangible assets,Current assets and non-current assets,Liabilities,（负债）,:,creditors claims on assets.,Present obligations of the entity arising from past events, the settlement of which is,expected to result in an outflow from the entity of resources embodying economic benefits.,Equity,（权益）,:,owners claim on assets. It is the amounts invested in a business by the owner.,equity,=assets-liabilities,Balance Sheet （资产负债表）Balance S,34,Income Statement,（利润表）,Income statement,is a record of income,generated and expenditure incurred over a given period.,Shows whether the business has a profit or loss over a period,Revenue,（收入）,: the income generated by the business for a period.,increases,in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.,Income Statement（利润表）Income st,35,Income Statement,Expenses,（费用）,are the costs of running the business for the same period.,decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurring of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.,Net profit/Net income: the excess of revenues over expenses for that time,Net Loss: the excess of expenses over revenues for that time,Income StatementExpenses（费用） a,36,Statement of Owners Equity,（所有者权益表）,The,statement of owners equity,（,statement of retained earnings,）,reports information about,how equity changes,over the reporting period.,The statement of owners equity lists,：,beginning capital,events that increase it : owner investments and net income,events that decrease it : owner withdrawals(,提取,) and net loss.,Ending capital,Ending capital is carried over and reported on the balance sheet.,Statement of Owners Equity（所有,37,Statement of Cash Flows(,现金流量表,),Statement of cash flows,lists the cash inflows and outflows from operating activities, investing activities, and financing activities over a period.,Operating activities: cash flows related to revenues and expenses of the business trading,Investing activities: cash flows related to increases and decreases in the non-current assets,Financing activities: cash flows related to the funding of the business by owners and lenders,Statement of Cash Flows(现金流量表),38,Financial Statements and Their Links,Net income is used to compute equity,Owner capital is used to prepare the balance sheet.,Cash from the balance sheet is used to reconcile the statement of cash flows.,A single ruled line denotes an addition or subtraction. Final totals are double underlined. Negative amounts are often in parentheses.,Financial Statements and Their,39,The accounting equation,（会计等式）,Accounting equation,Assets= Liabilities + Owners Equity,Every transaction affects at least two elements in the accounting equation.,The accounting equation remain in balance after each transaction.,Owners equity is directly affected by revenues, expenses, owners capital and owners withdrawals.,The expanded accounting equation,The accounting equation（会计等式）A,40,The Accounting Equation,Changes of two elements,Any increase (decrease) in,Assets must be accompanied by a corresponding increase (decrease) in either Liabilities or Owners Equity,Changes within one element,Any increase (decrease) in one type of Assets,（,Liabilities /Owners Equity,）,must be accompanied by a corresponding decrease (increase) in another type of Assets,（,Liabilities /Owners Equity,）,If the Assets doesnt change,Any increase (decrease) in Liabilities must be accompanied by a corresponding decrease (increase) in Owners Equity,Any increase (decrease) in Owners Equity must be accompanied by a corresponding decrease (increase) in Liabilities,The Accounting EquationChanges,41,Stockholders Equity,+10,000,1.,+10,000,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,1. Stockholders invested $10,000 cash to start the repair shop.,Owners capital,Assets,Liabilities,The accounting equation,Barones Repair Shop was started on May. Prepare a tabular analysis of the following transactions for the month of May.,42,Stockholders Equity+10,0001.+,+10,000,1.,+10,000,2. Purchased equipment for $5,000 cash.,-5,000,2.,+5,000,Owners,Capital,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,43,+10,0001.+10,0002. Purchased e,+10,000,1.,+10,000,3. Paid $400 cash for May office rent.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,Expense,+,44,+10,0001.+10,0003. Paid $400 c,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,4. Received $5,100 from customers for repair service.,Revenue,+,45,+10,0001.+10,000-5,0002.+5,000,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,5. Paid dividends of $1,000 cash.,-1,000,5.,-1,000,+,46,+10,0001.+10,000-5,0002.+5,000,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,6. Paid part-time employee salaries of $2,000.,-2,000,6.,-2,000,Expense,+,47,+10,0001.+10,000-5,0002.+5,000,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Expense,7. Incurred $250 of advertising costs, on account.,+250,-250,7.,+,48,+10,0001.+10,000-5,0002.+5,000,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Revenue,+250,-250,7.,8. Provided repair services on account to customers $750.,+750,8.,+750,+,49,+10,0001.+10,000-5,0002.+5,000,6,820,+,630,+,5,000,=,250,+,10,000 +,2,200,+10,000,1.,+10,000,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,+250,-250,7.,+750,8.,+750,9. Collected $120 cash for services previously billed.,+120,9.,-120,+,50,6,820 + 630 +,Companies prepare four financial statements from the summarized accounting data:,Balance Sheet,Income Statement,Statement of Cash Flows,Retained Earnings Statement,51,Companies prepare four financi,Income Statement,Reports the revenues and expenses for a specific period of time.,Net profit revenues exceed expenses.,Net loss expenses excee