会计英语（简明双语版）（叶建芳丶孙红星）.doc

会计英语（简明双语版）（叶建芳丶孙红星）Ye and Sun Accounting English 2009*ACCOUNTING ENGLISH会计英语（简明双语版）Ye Jianfang & Sun Hongxing叶建芳 孙红星 上海财经大学出版社Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Lesson 1An Introduction to AccountingYe and Sun Accounting English 2009AccountinginformationThe accounting processDecision makersEconomic activitiesActions (decisions)Accounting thinks decision makers with economic activities ? and with the results of their decisions1.1.1 Accounting is an information systemYe and Sun Accounting English 2009*Ye and Sun Accounting English 20091.2 Forms of organization Sole proprietorship Owned by one person.Owner is personally responsible for business debts.Partnership Owned by two or more persons. Partners are personally responsible for all partnership debts.CorporationOwned by shares of stock.A corporation is a separate legal entity.It is responsible for its own debts.Ye and Sun Accounting English 2009*Ye and Sun Accounting English 20091.3 Framework for Preparation and presentation of financial statementsIASC since 1973IASB since 2001There is a growing trend to adopt accounting standards that are in harmony with international accounting standards.Ye and Sun Accounting English 2009*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Some accounting concepts and principles:business entityobjectivity cost principlegoing-concernmonetary unittime period revenue recognition or realization principlematching principlefull-disclosure principleconsistency principlemateriality principleconservatism principleYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*1.4 Understanding financial statementsThe 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.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. Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*1.4 Understanding financial statementsThe income statement summarizes net profit (or net loss) resulting from revenues less expenses.The statement of owners equity reconciles changes in owners 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. Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009* 1.5 Accounting and its professionThere 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.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009* Fields of accountingfinancialmanagerialtaxationaccounting-relatedYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*1.6 Using the accounting equationBusiness transactions always affect at least two elements in the accounting equation. The accounting equation is: Assets = Liabilities + EquityAfter a transaction is recorded, the accounting equation must 6be in balance.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Using the accounting equation(1)Recording (2)Reporting(Basic Steps of Accounting Processing)Example on textbookYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*An example!Ye and Sun Accounting English 2009Stockholders Equity1: Barones Repair Shop was started on May. Prepare a tabular analysis of the following transactions for the month of May.+10,0001.+10,000CashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+1. Stockholders invested $10,000 cash to start the repair shop.InvestmentAssetsLiabilities*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000 2. Purchased equipment for $5,000 cash.-5,0002.+5,000InvestmentStockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilities*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000 3. Paid $400 cash for May office rent.-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained EarningsExpense+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100 4. Received $5,100 from customers for repair service.Revenue+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100 5. Paid dividends of $1,000 cash.-1,0005.-1,000+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000 6. Paid part-time employee salaries of $2,000.-2,0006.-2,000Expense+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Expense 7. Incurred $250 of advertising costs, on account.+250-2507.+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Revenue+250-2507. 8. Provided repair services on account to customers $750.+7508.+750+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009 6,820 + 630 + 5,000 = 250 + 10,000 +2,200+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000+250-2507.+7508.+750 9. Collected $120 cash for services previously billed.+1209.-120+*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Companies prepare four financial statements from the summarized accounting data:Balance SheetIncome StatementStatement of Cash FlowsRetained Earnings Statement*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009 Income StatementReports the revenues and expenses for a specific period of time.Net profit revenues exceed expenses.Net loss expenses exceed revenues.*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009 Income StatementRetained Earnings StatementNet profit is needed to determine the ending balance in retained earnings.*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Retained Earnings StatementStatement indicates the reasons why retained earnings has increased or decreased during the period.*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009 Balance SheetRetained Earnings StatementThe ending balance in retained earnings is needed in preparing the balance sheet.*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Reports the assets, liabilities, and stockholders equity at a specific date.Assets listed at the top, followed by liabilities and stockholders equity.Total assets must equal total liabilities and stockholders equity. Balance Sheet*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Statement of Cash Flows Balance Sheet*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Statement of Cash FlowsInformation for a specific period of time.Answers the following:Where did cash come from?What was cash used for?What was the change in the cash balance?*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009* 1.7 Ethics in accountingAccountants must perform their responsibilities according to the highest ethical standards because many users rely on financial reports. Some of the basic ethical standards expected of professional accountants include: IntegrityConfidentialityCompetenceObjectivityYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*End of Lesson 1Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Lesson 2Recording transactionsYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*2.1 Economic events and source documentsBusiness transactions affecting the accounting equation result from both external and internal events. The objectivity principle requires that transactions are supported by source documents.Ye and Sun Accounting English 2009Using of an accounts Increases are recorded onone side of the T-account, and decreases are recorded on the other side.Ye and Sun Accounting English 2009*Left or Debit SideRight or Credit SideTitle of Account2.2 T accounts and debits and creditsYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*The entire group of accounts is kept together in an accounting record called a ledger.CashAccounts PayableJill Jones, CapitalAccounts are individual records showing increases and decreases.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Each account is assigned a unique number in the companys chart of accounts.Commonly used asset accounts include:CashAccounts receivableEquipmentBuildingsLandYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*Commonly used liability accounts include:Accounts payableNotes payableSalaries or Wages payableCommonly used equity accounts include:Owners capitalOwners withdrawalsRevenuesExpensesYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*Receipts are on the debit side.Payments are on the credit side.The balance is the difference between the debit and credit entries in the account.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*A = L + OEASSETSDebit for IncreaseCredit for DecreaseEQUITIESDebit for DecreaseCredit for IncreaseLIABILITIESDebit for DecreaseCredit for IncreaseDebits and credits affect accounts as follows: Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*A = L + OEDebit balancesCredit balances=In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits. Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Net income is not an asset ?its an increase in owners equity from profits of the business.A = L + OEIncreaseDecreaseIncreaseEither (or both) of these effects occur as net income is earned . . . . . but this is what net income really means. Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*The price for goods sold and services rendered during a given accounting period.Increases owners equity.The costs of goods and services used up in the process of earning revenue.Decreases owners equity. Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*EQUITIESDebit for DecreaseCredit for IncreaseREVENUESDebit for DecreaseCredit for IncreaseEXPENSESCredit for DecreaseDebit for IncreaseExpenses decrease owners equity.Revenues increase owners equity. Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*EQUITIESDebit for DecreaseCredit for IncreaseJILL JONES, CAPITALDebit for DecreaseCredit for IncreaseJILL JONES, DRAWINGCredit for DecreaseDebit for IncreaseAn owners withdrawals decrease owners equity.An owners investments increase owners equity. Debit and Credit Rules Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*2.3 & 2.4 Accounting cycle journalizing posting and trial balance The steps in the accounting cycle follow each accounting period to accomplish the analysis, recording, and reporting of financial transactions.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Step 1: Analyzing transactionsAnalyzing transactions is the first step in the accounting cycle.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Step 2: Recording transactionsThe second step in the accounting cycle is to record debits and credits in the general journal, the book of original entry. This process is known as journalizing.Recording transactions is based on double-entry accounting, which requires that debits = credits.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Step 2: Recording transactions (cont.)Debits are used to record increases in assets, withdrawals, and expenses. Decreases in liabilities, the owners capital account, and revenues are also recorded with debits.Credits are used to record decreases in assets, withdrawals, and expenses. Increases in liabilities, the owners capital account, and revenues are also recorded with credits.Assets, expenses, and withdrawals normally have debit balances. Liabilities, owners capital, and revenue normally have credit balances.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Step 3: PostingThe third step in the accounting cycle begins the summarization process. Journal entries in the general journal are posted into the general ledger at the end of the accounting period.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Step 4: Preparing a trial balanceThe fourth step in the accounting cycle is the preparation of a trial balance that proves the equality of debits and credits.The trial balance is prepared for internal use only. It is a listing of account balances copied from the general ledger. next lessonYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*The JournalIn an actual accounting system, transactions are initially recorded in the journal.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*Posting Journal Entries to the Ledger AccountsYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*Posting Journal Entries to the Ledger AccountsYe and Sun Accounting English 2009Ye and Sun Accounting English 2009*Ledger Accounts After PostingThis ledger format is referred to as a running balance (as opposed to simple T accounts).Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*All balances are taken from the ledger accounts on May 31.Proves equality of debits and credits.Trial balanceYe and Sun Accounting English 20092.5 Using the information debt ratioDebt ration = total liabilities / total assetsYe and Sun Accounting English 2009*Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*The Accounting CycleJournalize transactions.Post entries to the ledger accounts.Prepare trial balance.Make end-of-year adjustments.Prepare adjusted trial balance.Prepare financial statements.Prepare after closing trial balance.Journalize and post closing entries.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*At the end of the period, we need to make adjusting entries to get the accounts up to date for the financial statements.Ye and Sun Accounting English 2009Ye and Sun Accounting English 2009*End of Lesson 2Ye and Sun Accounting English 2009Ye Sun Accounting English 2009*Lesson 3Adjusting the accounts, preparing the statements, and completing the accounting cycle Ye and Sun Accounting English 2009Ye Sun Accounting English 2009*Before financial statements can be prepared, the account