财务会计(英文版·原书第5版)ch01.ppt

Yu-wanHuang黄玉婉Location:SchoolofEconomics,Technologybuilding,level6,room605.科技楼605室,CourseCoordinator,TEACHINGANDLEARNINGARRANGEMENTS,Lectures:Discussionofmainbodyknowledgepresentedintextbook.acoursereview/examinationpreparationsessionwillbeheldinweek16.Tutorials:Discussionofthereviewquestionsandproblems.,RequiredResources,TextbookFinancialCalculator：Stronglyrecommended!,AssessmentSummary,ClassparticipationTutorialquestionsMid-testAssignmentFinalexam,AccountingInAction,FinancialAccounting,SixthEdition,Chapter1,Explainwhataccountingis.Identifytheusersandusesofaccounting.Understandwhyethicsisafundamentalbusinessconcept.Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.Explainthemonetaryunitassumptionandtheeconomicentityassumption.Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.Analyzetheeffectsofbusinesstransactionsontheaccountingequation.Understandthefourfinancialstatementsandhowtheyareprepared.,StudyObjectives,AccountinginAction,EthicsinfinancialreportingGenerallyacceptedaccountingprinciplesAssumptions,WhatisAccounting?,TheBuildingBlocksofAccounting,TheBasicAccountingEquation,UsingtheBasicAccountingEquation,FinancialStatements,ThreeactivitiesWhousesaccountingdata,AssetsLiabilitiesStockholdersequity,TransactionanalysisSummaryoftransactions,IncomestatementStatementofretainedearningsBalancesheetStatementofcashflows,WhatisAccounting?,SO1Explainwhataccountingis.,Thepurposeofaccountingisto:identify,record,andcommunicatetheeconomiceventsofanorganizationtointerestedusers.,ThreeActivities,WhatisAccounting?,SO1Explainwhataccountingis.,Illustration1-1Accountingprocess,Theaccountingprocessincludesthebookkeepingfunction.,Management,CommonQuestions,HumanResources,IRS,LaborUnions,SEC,Marketing,Finance,Investors,Creditors,WhoUsesAccountingData?,SO2Identifytheusersandusesofaccounting.,Customers,InternalUsers,ExternalUsers,CommonQuestionsAsked,User,1.Canweaffordtogiveouremployeesapayraise?,HumanResources,2.Didthecompanyearnasatisfactoryincome?,3.Shouldanyproductlinesbeeliminated?,4.Iscashsufficienttopaydividendstothestockholders?,5.Whatpriceforourproductwillmaximizenetincome?,WhoUsesAccountingData?,SO2Identifytheusersandusesofaccounting.,6.Willthecompanybeabletopayitsshort-termdebts?,Investors,Management,Finance,Marketing,Creditors,DiscussionQuestion,SO3Understandwhyethicsisafundamentalbusinessconcept.,Q1.“Accountingisingrainedinoursocietyanditisvitaltooureconomicsystem.”Doyouagree?Explain.Seenotespagefordiscussion,WhoUsesAccountingData?,TheBuildingBlocksofAccounting,EthicsInFinancialReporting,SO3Understandwhyethicsisafundamentalbusinessconcept.,Standardsofconductbywhichonesactionsarejudgedasrightorwrong,honestordishonest,fairornotfair,areEthics.Recentfinancialscandalsinclude:Enron,WorldCom,HealthSouth,AIG,andothers.CongresspassedSarbanes-OxleyActof2002.Effectivefinancialreportingdependsonsoundethicalbehavior.,Ethicsarethestandardsofconductbywhichonesactionsarejudgedas:rightorwrong.honestordishonest.fairornotfair.alloftheseoptions.,ReviewQuestion,Ethics,SO3Understandwhyethicsisafundamentalbusinessconcept.,Varioususersneedfinancialinformation,Theaccountingprofessionhasattemptedtodevelopasetofstandardsthataregenerallyacceptedanduniversallypracticed.,FinancialStatementsBalanceSheetIncomeStatementRetainedEarningsStatementStatementofCashFlowsNoteDisclosure,GenerallyAcceptedAccountingPrinciples(GAAP),TheBuildingBlocksofAccounting,SO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.,OrganizationsInvolvedinStandardSetting:SecuritiesandExchangeCommission(SEC)FinancialAccountingStandardsBoard(FASB)InternationalAccountingStandardsBoard(IASB),SO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.,TheBuildingBlocksofAccounting,/,/,/,CostPrinciple(Historical)dictatesthatcompaniesrecordassetsattheircost.Issues:Reportedatcostwhenpurchasedandalsooverthetimetheassetisheld.Costeasilyverified,whereasmarketvalueisoftensubjective.Fairvalueinformationmaybemoreuseful.,TheBuildingBlocksofAccounting,SO4Explaingenerallyacceptedaccountingprinciplesandthecostprinciple.,MonetaryUnitAssumptionincludeintheaccountingrecordsonlytransactiondatathatcanbeexpressedintermsofmoney.EconomicEntityAssumptionrequiresthatactivitiesoftheentitybekeptseparateanddistinctfromtheactivitiesofitsownerandallothereconomicentities.Proprietorship.Partnership.Corporation.,Assumptions,SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.,FormsofBusinessOwnership,Proprietorship,Partnership,Corporation,Ownedbytwoormorepersons.Oftenretailandservice-typebusinessesGenerallyunlimitedpersonalliabilityPartnershipagreement,OwnershipdividedintosharesofstockSeparatelegalentityorganizedunderstatecorporationlawLimitedliability,FormsofBusinessOwnership,Generallyownedbyoneperson.Oftensmallservice-typebusinessesOwnerreceivesanyprofits,suffersanylosses,andispersonallyliableforalldebts.,SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.,CombiningtheactivitiesofKelloggandGeneralMillswouldviolatethecostprinciple.economicentityassumption.monetaryunitassumption.ethicsprinciple.,Assumptions,SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.,ReviewQuestion,Abusinessorganizedasaseparatelegalentityunderstatelawhavingownershipdividedintosharesofstockisaproprietorship.partnership.corporation.soleproprietorship.,SO5Explainthemonetaryunitassumptionandtheeconomicentityassumption.,FormsofBusinessOwnership,ReviewQuestion,Assets,Liabilities,StockholdersEquity,=,+,Providestheunderlyingframeworkforrecordingandsummarizingeconomicevents.Assetsareclaimedbyeithercreditorsorowners.Claimsofcreditorsmustbepaidbeforeownershipclaims.,TheBasicAccountingEquation,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,Providestheunderlyingframeworkforrecordingandsummarizingeconomicevents.,TheBasicAccountingEquation,Resourcesabusinessowns.Providefutureservicesorbenefits.Cash,Supplies,Equipment,etc.,Assets,Assets,Liabilities,StockholdersEquity,=,+,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,Providestheunderlyingframeworkforrecordingandsummarizingeconomicevents.,TheBasicAccountingEquation,Claimsagainstassets(debtsandobligations).Creditors-partytowhommoneyisowed.Accountspayable,Notespayable,etc.,Liabilities,Assets,Liabilities,StockholdersEquity,=,+,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,Providestheunderlyingframeworkforrecordingandsummarizingeconomicevents.,TheBasicAccountingEquation,Ownershipclaimontotalassets.Referredtoasresidualequity.Paid-inCapital,RetainedEarnings(Corporation).,StockholdersEquity,Assets,Liabilities,StockholdersEquity,=,+,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,StockholdersEquity,Revenuesresultfrombusinessactivitiesenteredintoforthepurposeofearningincome.Commonsourcesofrevenueare:sales,fees,services,commissions,interest,dividends,royalties,andrent.,Illustration1-6,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,Expensesarethecostofassetsconsumedorservicesusedintheprocessofearningrevenue.Commonexpensesare:salariesexpense,rentexpense,utilitiesexpense,taxexpense,etc.,StockholdersEquity,Illustration1-6,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,Dividendsarethedistributionofcashorotherassetstostockholders.Dividendsreduceretainedearnings,howeverdividendsarenotanexpense.,StockholdersEquity,Illustration1-6,SO6Statetheaccountingequation,anddefineassets,liabilities,andstockholdersequity.,UsingTheBasicAccountingEquation,Transactionsareabusinessseconomiceventsrecordedbyaccountants.Maybeexternalorinternal.Notallactivitiesrepresenttransactions.Eachtransactionhasadualeffectontheaccountingequation.,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,Question:Arethefollowingeventsrecordedintheaccountingrecords?,Event,Suppliesarepurchasedonaccount.,Criterion,Isthefinancialposition(assets,liabilities,orstockholdersequity)ofthecompanychanged?,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,Anemployeeishired.,Dividendsarepaidtostockholders.,Record/DontRecord,Transactions,DiscussionQuestion,Q18.InFebruary2008,PaulaKinginvestedanadditional$10,000inHardyCompany.Hardysaccountant,LanceJones,recordedthisreceiptasanincreaseincashandrevenues.Isthistreatmentappropriate?Whyorwhynot?Seenotespagefordiscussion,Transactions,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,StockholdersEquity,P1-1A:BaronesRepairShopwasstartedonMay.PrepareatabularanalysisofthefollowingtransactionsforthemonthofMay.,Transactions(Problem),+10,000,1.,+10,000,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,+,+,=,+,1.Stockholdersinvested$10,000cashtostarttherepairshop.,Investment,Assets,Liabilities,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,2.Purchasedequipmentfor$5,000cash.,-5,000,2.,+5,000,Investment,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,3.Paid$400cashforMayofficerent.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,Expense,+,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,4.Received$5,100fromcustomersforrepairservice.,Revenue,+,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,5.Paiddividendsof$1,000cash.,-1,000,5.,-1,000,+,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,-1,000,5.,-1,000,6.Paidpart-timeemployeesalariesof$2,000.,-2,000,6.,-2,000,Expense,+,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Expense,7.Incurred$250ofadvertisingcosts,onaccount.,+250,-250,7.,+,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Revenue,+250,-250,7.,8.Providedrepairservicesonaccounttocustomers$750.,+750,8.,+750,+,6,820+630+5,000=250+10,000+2,200,Transactions(Problem),+10,000,1.,+10,000,SO7Analyzetheeffectsofbusinesstransactionsontheaccountingequation.,-5,000,2.,+5,000,-400,3.,-400,StockholdersEquity,Cash,AccountsReceivable,Equipment,AccountsPayable,CommonStock,+,+,=,+,Assets,Liabilities,RetainedEarnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,+250,-250,7.,+750,8.,+750,9.Collected$120cashforservicespreviouslybilled.,+120,9.,-120,+,Companiespreparefourfinancialstatementsfromthesummarizedaccountingdata:,BalanceSheet,IncomeStatement,StatementofCashFlows,RetainedEarningsStatement,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,IncomeStatement,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,Reportstherevenuesandexpensesforaspecificperiodoftime.Netincomerevenuesexceedexpenses.Netlossexpensesexceedrevenues.,Netincomewillresultduringatimeperiodwhen:assetsexceedliabilities.assetsexceedrevenues.expensesexceedrevenues.revenuesexceedexpenses.,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,ReviewQuestion,IncomeStatement,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,RetainedEarningsStatement,Netincomeisneededtodeterminetheendingbalanceinretainedearnings.,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,RetainedEarningsStatement,Statementindicatesthereasonswhyretainedearningshasincreasedordecreasedduringtheperiod.,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,BalanceSheet,RetainedEarningsStatement,Theendingbalanceinretainedearningsisneededinpreparingthebalancesheet.,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,Reportstheassets,liabilities,andstockholdersequityataspecificdate.Assetslistedatthetop,followedbyliabilitiesandstockholdersequity.Totalassetsmustequaltotalliabilitiesandstockholdersequity.,BalanceSheet,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,StatementofCashFlows,BalanceSheet,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,StatementofCashFlows,Informationforaspecificperiodoftime.Answersthefollowing:,Wheredidcashcomefrom?Whatwascashusedfor?Whatwasthechangeinthecashbalance?,Whichofthefollowingfinancialstatementsispreparedasofaspecificdate?Balancesheet.Incomestatement.Statementofstockholdersequity.Statementofcashflows.,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,ReviewQuestion,DiscussionQuestion,Q19.“Acompanysnetincomeappearsdirectlyontheincomestatementandtheretainedearningsstatement,anditisincludedindirectlyinthecompanysbalancesheet.”Doyouagree?Explain.Seenotespagefordiscussion,FinancialStatements,SO8Understandthefourfinancialstatementsandhowtheyareprepared.,Ethics:ManagingPersonalFinancialReporting,Whenstudentsneedmoneyforschool,theyoftenapplyforfinancialaid