财务会计专业英语

1、Introduction,Textbook Principles of Accounting (Nineteenth Edition), by John J. Wild, Ken W. Shaw, Barbara Chiappetta, 崔学刚，饶菁改编，中国人民大学出版社，2009年7月出版,Contents,1 Accounting in Business 2 Analyzing and Recording Transactions 3 Adjusting Accounts and Preparing Financial Statements 4 Completing the Accoun

2、ting Cycle 5 Accounting for Merchandising Operations Accounting Information Systems Inventories and Cost of Sales 8 Cash and Internal Controls 9 Accounting for Receivables 10 Plant Assets, Natural Resources and Intangibles Current Liabilities and Payroll Accounting Long-Term Liabilities 13 Investmen

3、ts and International Operations 14 Accounting for Corporations,ACCOUNTING IN BUSINESS,Chapter 1,Key Terms - Chapter 1,Accounting Accounting equation Assets Auditors Balance sheet Bookkeeping Business entity assumption Common stock Corporation Cost principle Equity Ethics Events Expanded accounting e

4、quation,Expenses External transactions External users Financial accounting Financial Accounting Standards Board (FASB) Full disclosure principle Generally Accepted Accounting Principles (GAAP) Going-concern assumption,Key Terms - Chapter 1,Income statement Internal transactions Internal users Intern

5、ational Accounting Standards Board (IASB) Liabilities Managerial accounting Matching principle Monetary unit assumption Net income Net loss Owner， Capital Owner investment Owner withdrawals Partnership,Proprietorship Recordkeeping Revenue recognition principle Revenues Sarbanes-Oxley Act Securties a

6、nd Exchange Commission （SEC） Shareholders Shares Sole proprietorship Statement of cash flows Statement of owners equity Stock Stockholders Time period assumption Withdrawals,A Look at This Chapter,In this chapter we discribe accounting, the users and uses of accounting information, the forms and act

7、ivities of organizations, and several accounting principles. We also introduce transaction analysis and financial statements,Learning Objectives-Conceptual,C1: Explain the purpose and importance of accounting in the information age C2: Identify users and uses of accounting C3: Identify opportunities

8、 in accounting and related fields C4: Explain why ethics are crucial in accounting C5: Explain GAAP, and define and apply several key accounting principles,Learning Objectives-Analytical,A1: Define and interpret the accounting equation and each of its components A2: Analyze business transactions usi

9、ng the accounting equation,Learning Objectives-Procedural,P1: Identify and prepare basic financial statements and explain how they interrelate,IdentifyingSelect transactions and events,Recording Input, measure and classify,Communicating Prepare, analyze and interpret,IMPORTANCE OF ACCOUNTING,Account

10、ing,C1,Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable infor- mation about an organizations business activities,We must gurad against a narrow view of accounting. The most common contact with accounting is through cred

11、it approval, checking accounts, tax forms and payroll. These experiences are limited and tend to foucus on the recordkeeping parts of accounting. Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically.This is just one part of accounting. Account

12、ing also identifies and communicates information on transactions and events, and it includes the crucial processes of analysis and interpretation,USERS OF ACCOUNTING INFORMATION,External Users,Lenders Shareholders Governments,Consumer Groups External Auditors Customers,Internal Users,Managers Office

13、rs Internal Auditors,Sales Staff Budget Officers Controllers,C2,Not directly involved in running the organization,directly involved in managing and operating an organization,USERS OF ACCOUNTING INFORMATION,External Users,Financial accounting provides external users with financial statements,Internal

14、 Users,Managerial accounting provides information needs for internal decision makers,C2,OPPORTUNITIES IN ACCOUNTING,Financial Preparation Analysis Auditing Regulatory Consulting Planning Criminal investigation,Managerial General accounting Cost accounting Budgeting Internal auditing Consulting Contr

15、oller Treasurer Strategy,Taxation Preparation Planning Regulatory Investigations Consulting Enforcement Legal services Estate plans,Accounting-related,Lenders Consultants Analysts Traders Directors Underwriters Planners Appraisers,FBI investigators Market researchers Systems designers Merger service

16、s Business valuation Human services Litigation support Entrepreneurs,C3,ACCOUNTING JOBS BY AREA,C3,Beliefs that distinguish right from wrong,Accepted standards of good and bad behavior,ETHICS - A KEY CONCEPT,C4,Identify ethical concerns,Analyze options,Make ethical decision,Use personal ethics to re

17、cognize ethical concern,Consider all good and bad consequences,Choose best option after weighing all consequences,ETHICS - A KEY CONCEPT,C4,Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP,GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

18、,Relevant Information,Affects the decision of its users,Reliable Information,Is trusted by users,Comparable Information,Is helpful in contrasting organizations,C5,The Securities and Exchange Commission is the government group that establishes reporting requirements for companies that issue stock to

19、the public,SETTING ACCOUNTING PRINCIPLES,Financial Accounting Standards Board is the private group that sets both broad and specific principles,The International Accounting Standards Board (IASB) issues International Financial Reporting Standards that identify preferred accounting practices to creat

20、e harmony among accounting practices of different countries,C5,PRINCIPLES AND ASSUMPTIONS OF ACCOUNTING,Cost Principle Accounting information is based on actual cost. Actual cost is considered objective,Matching Principle A company must record its expenses incurred to generate the revenue reported,F

21、ull Disclosure Principle A company is required to report the details behind financial statements that would impact users decisions,C5,PRINCIPLES AND ASSUMPTIONS OF ACCOUNTING,C5,FORMS OF BUSINESS ENTITIES,Sole Proprietorship,Partnership,Corporation,Proprietorships and partnerships that are set up as

22、 LLCs provide limited liability,CHARACTERISTICS OF BUSINESSES,Owners of a corporation are called shareholders (or stockholders). Shareholders are not personally liable for corporate acts. When a corporation issues only one class of stock, wecall it common stock (or capital stock,CORPORATION,SARBANES

23、-OXLEY (SOX,Congress passed the Sarbanes-Oxley Act to help curb financial abuses at companies that issue their stock to the public. Management must issue a report stating that internal control are effective. Auditors must verify the effectiveness of internal controls,TRANSACTION ANALYSIS AND THE ACC

24、OUNTING EQUATION,Assets,Liabilities,Equity,Accounting Equation,A1,Land,Equipment,Buildings,Cash,Vehicles,Store Supplies,Notes Receivable,Accounts Receivable,Resources owned or controlled by a company,ASSETS,A1,Taxes Payable,Wages Payable,Notes Payable,Accounts Payable,LIABILITIES,Creditors claims on

25、 assets,A1,Equal to Assets MinusLiabilities(Net Assets,EQUITY,Owners Claims on Assets,A,EXPANDED ACCOUNTING EQUATION,A1,TRANSACTION ANALYSIS EQUATION,The accounting equation MUST remain in balance after each transaction,A2,TRANSACTION ANALYSIS,The accounts involved are: (1) Cash (asset) (2) Owner Ca

26、pital (equity,Chuck Taylor invests $30,000 cash to start a consulting business,A2,TRANSACTION ANALYSIS,Chuck Taylor invests $30,000 cash to start a consulting business,A2,The accounts involved are: (1) Cash (asset) (2) Supplies (asset,TRANSACTION ANALYSIS,Purchased supplies paying $2,500 cash,A2,TRA

27、NSACTION ANALYSIS,Purchased supplies paying $2,500 cash,A2,The accounts involved are: (1) Cash (asset) (2) Equipment (asset,TRANSACTION ANALYSIS,Purchased equipment for $26,000 cash,A2,TRANSACTION ANALYSIS,Purchased equipment for $26,000 cash,A2,The accounts involved are: (1) Supplies (asset) (2) Ac

28、counts Payable (liability,TRANSACTION ANALYSIS,Purchased Supplies of $7,100 and on account,A2,TRANSACTION ANALYSIS,Purchased Supplies of $7,100 and on account,A2,The accounts involved are: (1) Cash (asset) (2) Revenues (equity,TRANSACTION ANALYSIS,Provided consulting services receiving $4,200 cash,A

29、2,TRANSACTION ANALYSIS,Provided consulting services receiving $4,200 cash,A2,FINANCIAL STATEMENTS,Lets prepare the Financial Statements reflecting the transactions we have recorded,Income Statement Statement of Owners Equity Balance Sheet Statement of Cash Flows,P1,Net income is the difference between Revenues and Expenses,The income statement describes a companys revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities,INCOME STATEM