会计专业英文版课件全书电子教案完整版整套教学课件最全教学教程.ppt

1、Chapter 1 Introduction to Accounting 1.1 What is accounting 1.2 Forms of business entities 1.3 Business activities 1.4 Users of accounting information 1.5 Types of accounting 1.6 Careers in accounting21.1 What is accounting Accounting is an information system that identifies,records,and communicates

2、 the economic events of an organization to interested users.Accounting is a business language.31.2 Forms of business entities Three forms of business:Sole proprietorships Partnerships Corporations4A sole proprietorship An unincorporated business only owned by one person.(1)The owner also acts as the

3、 manager.(2)The owner is personally liable for the debts of the business.If the business has financial difficulties,creditors can force the owner to sell his or her personal assets to pay for the business debts.(3)Its advantage is simplicity.5A partnership An unincorporated business owned by two or

4、more persons voluntarily acting as partners.(1)The owners of a partnership,when unincorporated,are also personally liable for the debts of the business.(2)The partnership has the ability to raise larger amounts of capital investment from multiple owners.(3)The individuals are vital to the partnershi

5、p,covenants are usually drawn up which makes it difficult for individual partners to exit the legal entity.6 A corporation A business organization as a separate legal entity owned by stockholders.(1)Investors in a corporation receive shares of stock to indicate ownership claims.(2)Compared with sole

6、 proprietorships and partnerships,it is easy for corporations to raise larger amounts of funds.(3)Corporate stockholders have no personal liability to the legal entity and their risks are limited to their purchase amount only.71.3 Business activitiesThree types of activity:Financing activity Investi

7、ng activity Operating activity8 Financing activity A company has two primary sources to raise funds.One is borrowing money.Persons or entities to whom a company owes money are creditors.Amounts owed to creditors are called liabilities.A creditor has a legal right to be paid at the agreed-upon time.T

8、he other is issuing shares of stock in exchange for cash.Selling shares of stock to investors in exchange for ownership rights.The total amount paid in by stockholders is ownership of shares of common stock and called paid-in capital.Stockholders have no legal right to expect any payments on a regul

9、ar basis.The payments paid to stockholders are called dividends.9 Investing activity Investing activities involve the purchase of the resources a company needs in order to operate.These resources can be buildings,furniture,computers,and delivery trucks among many other capital investments.Resources

10、owned by a business are called capital assets.Assets have different types and names.Various,non-current,and tangible assets are called property,plant,and equipment(PPE).10 Operating activity Once a business has assets,it can begin its operations.The amounts earned on the sale of its products or serv

11、ices are called revenues.Sources of revenues common to many businesses are sales revenues,service revenues,and interest revenues(typically not operating revenues but financing revenues).111.4 Users of accounting informationTwo groups of accounting information users:Internal users External users12Int

12、ernal users Internal users are employees of an enterprise and are directly involved in managing and operating the business.From basic labor categories to chief executive officers,all employees are paid,and their paychecks are generated by the accounting information system.Internal users include the

13、board of directors,chief executive officers,chief financial officers,marketing managers,production supervisors,and so on.13External users External users have a current or potential financial interest in the reporting entity,but are not directly involved in managing and operating the business.The mai

14、n external users include investors and creditors.Investors use accounting information to decide whether to buy,hold,or sell stocks.Creditors use accounting information to decide whether to sell goods or services on credit or lend money to an entity.Other external users of accounting information are

15、government agencies,suppliers,customers,general public,and so on.141.5 Types of accountingThree types of accounting:Financial accounting Managerial accounting Tax accountingAuditing and internal control are subjects related to accounting15Financial accounting Financial accounting refers to informati

16、on describing the financial resources,obligations,and activities of an economic entity(either an organization or an individual).Financial accounting information is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources.Such decisions are imp

17、ortant to society,because they determine which companies and industries will receive the financial resources necessary for growth.16 Managerial accounting Accounting is a business language.The language used by people working inside of a business is managerial accounting.Managerial accounting is used

18、 by managers to make managerial decisions and is guided by the unique needs of the company,instead of legal requirements.17 Tax accounting The main purpose of tax accounting is to prepare income tax returns.Tax returns are based on financial accounting information.The information is often adjusted o

19、r recognized to confirm with income tax reporting requirements.Tax information complies with specialized legal requirements that relate to a companys responsibility to pay an appropriate amount of taxes.18 Auditing The accumulation and evaluation of evidence about information to determine and report

20、 on the degree of correspondence between the information and established criteria.Auditing should be done by a competent,independent person.19 Internal control A process,effected by the entitys board of directors,managers,and other personnel,designed to provide reasonable assurance regarding the ach

21、ievement of objectives in the categories of (1)effectiveness and efficiency of operations;(2)reliability of financial reporting;(3)compliance with applicable laws and regulations;and (4)securing and protecting the companys assets from loss.201.6 Careers in accountingFour broad areas of careers in ac

22、counting:Public accounting Managerial accounting Government accounting Accounting education21 Public accountant Certified Public Accountant(CPA)offers a variety of accounting services to the public.The CPAs may work in a CPA firm or as sole practitioners.The main work of public accountants is to aud

23、it financial statements,income tax work,and management consulting.22 Management accountant Management accountants work for enterprises.They develop information,interpret accounting information designed specially to meet various needs of management,as well as provide guidance toward increasing profit

24、s.23 Government accountant Accounting information is used by government agencies to allocate their resources and control their operations.Therefore,the need for accountants in government agencies is similar to that in business organizations24 Accounting educator Accounting educators offer opportunit

25、ies for teaching,research,governance and consulting.They contribute to the accounting profession in many ways,including effective teaching,publishing significant research findings,and influencing top students to pursue careers in accounting.25End of Chapter 126Chapter 2 Financial Accounting and the

26、Conceptual Framework 2.1 Financial accounting 2.2 Conceptual framework 2.3 Accounting equation 2.4 Accounting cycle282.1 Financial accounting Financial accounting refers to information describing the financial resources,obligations,and activities of an economic entity(either an organization or an in

27、dividual).Financial accounting information is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources.Such decisions are important to society,because they determine which companies and industries will receive the financial resources necessary

28、 for growth.292.2 Conceptual framework2.2.1 Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting and it is a coherent system of concepts that flow from an objective.The objective identifies the purpose of financial reporting.The other concepts provid

29、e guidance on:(1)identifying the boundaries of financial reporting;(2)selecting the transactions,other events,an circumstances to be represented;(3)how they should be recognized and measured;and (4)how they should be summarized and reported.30Three levels of the conceptual framework First level:To i

30、dentify the purpose of financial reporting.Second level:To provides the qualitative characteristics of accounting information and the elements of financial statements(assets,liabilities,and so on).Third level:To identifies the recognition,measurement,and disclosure concepts used in establishing and

31、applying accounting standards and the specific concepts to implement the objective.312.2.2 Basic Objective The objective is to provide financial information about the reporting entity that is useful to present and potential equity investors,lenders,and other creditors in making decisions about provi

32、ding resources to the entity.These decisions involve buying,selling,or holding equity and debt instruments,and providing or settling loans and other forms of credit.General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity a

33、nd therefore must rely,at least partly,on the information provided in financial reports.322.2.3 Fundamental Concepts1.Basic Elements(1)Assets Assets are economic resources that are owned or controlled by a particular entity and are expected to benefit future operations.(2)Liabilities Liabilities are

34、 financial obligations or debts.They represent negative future cash flows for the enterprise.(3)Owners equity(stockholders equity)Owners equity represents the owners claims on the assets of the business.Owners equity=total assets-total liabilities Owners equity is a residual amount.It is the net(boo

35、k)value of the entity.33(4)Revenues Revenues are increases in the companys assets from its profit-directed activities(e.g.,the sale of a product or service)in the normal course of business,resulting in positive cash flows.(5)Expenses Expenses are decreases in the companys assets from its profit-dire

36、cted activities,normally resulting in negative cash flows.Expenses are used to generate revenues.(6)Net profit Net profit is the difference between the revenues and expenses for a specified period of time.If expenses are greater than revenues,the difference is the net loss in the Income Statement.34

37、(7)Gains Gains are the increases in owners equity from incidental transactions of a business entity.Except those that result from revenues or investments by owners and appear in the Income Statement.(8)Losses Losses are the decreases in owners equity from incidental transactions of a business entity

38、 except those that result from expenses or distributions to owners and appear in the Income Statement.(9)Comprehensive income It is a term that identifies the total of net income plus or minus the elements of other comprehensive income.Other comprehensive income:non-owner changes in equity that bypa

39、ss the Income Statement.352.Accounting Information Quality(1)Reliability(faithful representation)Reliability means that the numbers and descriptions match what really existed or happened.To be reliable,information must be complete,neutral,and free of material error.Reliability is a necessity,because

40、 most users have neither the time nor the expertise to evaluate the actual content of the information.(2)Relevance To be relevant,accounting information must be capable of making a difference in a decision.Relevant information helps users predict the ultimate outcome of past,present,and future event

41、s.Information with no bearing on a decision is irrelevant.Just because something is relevant,it does not automatically mean that it is reliable.36(3)Comparability Information that is measured and reported in a similar manner for different companies is considered comparable.Comparability enables user

42、s to identify the real similarities and differences in economic events between companies and between time periods.(4)Consistency When a company applies the same accounting treatment to similar events,from period to period,the company shows consistent use of accounting standards.However,the idea of c

43、onsistency does not mean that companies cannot switch from one accounting method to another.A company can change accounting methods,but it must first demonstrate that the newly adopted method is preferable to the old.If approved,the company must then disclose the nature and the effect of the account

44、ing change,as well as the justification for it,in the financial statements for the period for which it made the change.37(5)Timeliness Timeliness means having information available to decision-makers before it loses its capacity to influence decisions.Having relevant information available sooner can

45、 enhance its capacity to influence decisions,and a lack of timeliness can rob information of its usefulness.(6)Understandability Understandability is the quality of information that lets reasonably informed users see its significance.Understandability is enhanced when information is classified,chara

46、cterized,and presented clearly and concisely.382.2.4 Recognition and Measurement Concepts1.Accounting Assumptions(1)The business entity assumption The business entity assumption means that economic activity can be identified with a particular unit of accountability.It is required that the business e

47、ntity is accounted for separately from the individuals who own it.(2)The going-concern assumption The going-concern assumption means that the company will have an indefinite life.Despite numerous business failures,most companies have a fairly high continuance rate.The going-concern assumption applie

48、s in normal business situations.However,when liquidation appears imminent,the assumption is not applicable.39(3)The periodicity assumption The periodicity assumption implies that a company can divide its economic activities into artificial and consistent time periods.There are many time periods,norm

49、ally including monthly,quarterly,and yearly.(4)The stable-dollar assumption Accountants in the United States prepare financial statements under an assumption that the dollar is a stable unit of measurement.The cost principle and the stable-dollar assumption work well in periods of stable prices but

50、are less satisfactory under the condition of rapid inflation.402.Accounting Principles(1)The cost principle Companies account for and report many assets on the basis of acquisition price,this is often referred to as the cost principle.Historical cost is the original amount the business entity paid t