文本教程复习chapter1

1、1Paper F3 Financial Accounting e to accountingCopyright by LINING 3Copyright by LINING4Copyright by LINING5nTo develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques inc

2、luding the preparation of basic financial statements.AimCopyright by LINING6Copyright by LINING71Introduction to accountingCopyright by LINING8n The purpose of financial reportingn Types of business entityn Nature, principles and scope of financial reportingn Users and stakeholders needsn Governance

3、n The main elements of financial reportsTopic listCopyright by LINING9straightforwardWhy?What?Who?Copyright by LINING10When starting this unit a reasonable question to ask is “Why study accounting?”.Copyright by LINING111. The purpose of financial reportingCopyright by LINING12Financial reporting is

4、 a way of recording, analysingand summarising financial data.Recording books of prime entry Analysing books of prime entry ledger accountsSummarisingfinancial statements1.1 What is financial reporting?Copyright by LINING13Recording Analysing Summarising RelevantReliableComparableInfluence of Account

5、ingAccountingis asystem thatinformation that isto help users make better decisions.Copyright by LINING14 Identifying Economic Events Recording Economic Events Reporting and Analyzing Economic EventsFocus of AccountingCopyright by LINING15Return$Risk?Profit InvestmentAmount of uncertainty about the r

6、eturn we expect to earnReturn and RiskThe lower the risk of our investment, the lower is our expected return.Copyright by LINING162. Types of business entityCopyright by LINING17Amounts earned from selling products or servicesBusiness ProfitCosts incurred with salesAmounts earned from sales less exp

7、enses incurredCopyright by LINING18Business Entity FormsSole tradersPartnershipCorporationCopyright by LINING19*Characteristics of Business OrganizationsCopyright by LINING20Owners of a corporation are called shareholders (or stockholders).When a corporation issues only one class of stock, we call i

8、t common stock (or capital stock).Limited liability companies Copyright by LINING21PrivateNonprofitGovernmentNonbusinessForms of OrganizationCopyright by LINING22LibrariesArmyAirportsCitiesCollegesMuseumsHospitalsPrisonsSheltersSchoolsAccounting for these organizations is usually a fund-based system

9、, but the basic principles are similar to accounting for business organizations.Nonbusiness OrganizationCopyright by LINING23A. Ownership of Cola Company is divided into 1,000 shares of stock.B. Trimark is owned by Sarah Gates, who is personally liable for the debts of the business.C. Jerry Staley a

10、nd Susan Morris own financial services, a financial services provider. Neither Staley nor Morris has personal responsibility for the debts of financial services.D. Nancy Case and Frank Pruitt own Get-It-There, a courier service. Both are personally liable for the debts of the business.The following

11、describe several different business organizations. Determine whether the description refers to a sole traders, partnership, or limited liability companies. Copyright by LINING24E. WSP Consulting Services does not have separate legal existence apart from the one person who owns it.F. Biolife Enterpri

12、ses does not pay taxes and has one owner.G. Tampa Trade pays its own taxes and has two owners.Copyright by LINING253. Nature, principles and scope of financial reportingCopyright by LINING26 Financial accounting is mainly a method of reporting the results and financial position of a business. Financ

13、ial accounting mainly provides historical accounting information for external users.Copyright by LININGFinancial accounting27 Management accounting is a management information system which analyses data to provide information as a basis for managerial action. Management accounting can provide more d

14、etailed information which plan for the future.Management accountingCopyright by LINING284. Users and stakeholders needsCopyright by LINING29 The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise th

15、at is useful to a wide rage of users in making economic decisions.4.1 The need for financial statementsCopyright by LINING30Managers of the companyShareholders of the companyTrade contactsProviders of finance to the companyThe taxation authoritiesEmployees of the companyFinancial analysts and advise

16、rsGovernment and their agenciesThe publicCopyright by LINING4.2 Users of Accounting Information31Managerial Accounting is aimed at Internal UsersFinancial Accounting is aimed at External UsersManagersOfficersInternal AuditorsLendersShareholdersGovernmentEmployees Labor UnionsExternal AuditorsCustome

17、rs4.2 Users of Accounting InformationCopyright by LINING325. GovernanceCopyright by LINING33Corporate governance is the system by which companies and other entities are directed and controlled.The board of directors of a company are usually the top management and are those who are charged with gover

18、nance of that company.5.1 Corporate governanceCopyright by LINING34Act within their powersPromote the success of the companyExercise independent judgementExercise reasonable skill, care and diligenceAvoid conflicts of interest5.2 Legal responsibilities of directorsCopyright by LINING35Comply with fi

19、nancial reporting frameworkProvide good IC The prevention and detection of fraud5.3 Responsibilities for financial statementsCopyright by LINING366. The main elements of financial reportsCopyright by LINING37Statement of financial position e statementCash flow statementStatement of Changes in Owners

20、 Equity6. The main financial statementsCopyright by LINING38The statement of financial position is simply is a list of all the assets owned and all the liabilities owed by a business as at a particular date. (Liabilities included liability and capital) It is a snapshot of the financial position of t

21、he business at a particular moment. 6.1 Statement of financial positionCopyright by LINING39An asset is something valuable which a business owns or has the use of.6.1.1 AssetsCopyright by LINING40LandEquipmentBuildingsCashVehiclesStore SuppliesNotes ReceivableAccounts ReceivableResources owned or co

22、ntrolled by a companyAssets41A liability is something which is owed to somebody else. liabilities is the accounting term for the debts of a business.6.1.2 LiabilitiesCopyright by LINING42Taxes PayableWages PayableNotes PayableAccounts PayableCreditors claims on assetsLiabilities43Capital are amounts that the business owes to the owner.6.1.3 Capital or equityCopyright by LINING44Assets = Liabilities + Capital Copyright by LINING 6.1.4 Form of statement of financial position45An e statement is a record of revenue generated and expenditure incurred over a given period.The statement shows whether