西方财务会计02

2023/3/30西方财务会计02Introductionto

FinancialStatementsIncomeStatementBalanceSheetStatementofCashFlowsThreeprimaryfinancialstatements.Wewilluseacorporationtodescribethesestatements.Introductionto

FinancialStatementsDescribeswheretheenterprisestandsataspecificdate.IncomeStatementBalanceSheetStatementofCashFlowsIntroductionto

FinancialStatementsDepictstherevenueandexpensesforadesignatedperiodoftime.IncomeStatementBalanceSheetStatementofCashFlowsIntroductionto

FinancialStatementsDepictsthewayscashhaschangedduringadesignatedperiodoftime.IncomeStatementBalanceSheetStatementofCashFlowsAStartingPoint:StatementofFinancialPositionHeading(p39)Body(p39)AssetsAssetsareeconomicresourcesthatareownedbythebusinessandareexpectedtobenefitfutureoperations.AssetsResourcesAssetsGeneratePositiveCashFlows(CashInflows)Directlyconvertedintocash(collectionofreceivables)Indirectly–usedinoperatingthebusinesstocreateotherassetsthatresultinpositivecashflows(usedtoproducetheproductsforsale)Tangible(havephysicalexistence)Intangible(likeintheformofvaluablerights)Asummaryofp40AssetsCostPrincipleGoing-ConcernAssumptionObjectivityPrincipleStable-DollarAssumptionTheseaccountingprinciplessupportcostasthebasisforassetvaluation.LiabilitiesLiabilitiesaredebtsthatrepresentnegativefuturecashflowsfortheenterprise.Owners’EquityOwners’equityrepresentstheowners’claimsontheassetsofthebusiness.Owners’EquityChangesinOwners’EquityOwners’InvestmentsBusinessEarningsPaymentstoOwnersBusinessLossesTheAccountingEquationTheaccountingequationdisplaysthatallassetsareeitherfinancedbyborrowingmoneyorpayingwiththemoneyofthecompany’sstockholders.Assets=Liabilities+Owners’EquityWhatthingsthebusinessownsWhosuppliedtheseresourcestothebusinessandhowmucheachgroupsuppliedTheAccountingEquationAssets=Liabilities+Owners’Equity$300,000=$80,000+$220,000P41YourTurnWouldtherebeanydifferentmotivationwhenyoureportthevalueofyourhometothecityassessor,whencomparingwithwhenreportingtothepotentialbuyers?OvernightAutoServicep44Businessentity:OvernightAutoServiceAccountingpolicies:PrepareformalfinancialstatementsOnJan21,McBryanandhisfamilyinvested$8,000inOvernightAutoServiceandreceived800sharesofstock.OnJan20,OvernightAutoServicepurchasedthelandfor$52000cash.OnJan22,Overnightpurchasedtheabandonedbusgaragefor$36000.Overnightmadeacashdownpaymentof$6000andissueda90-daynon-interest–bearingnotepayableforthe$30000balanceowned.Purchaseonaccount:adeferralofpaymentsInstallmentpaymentOnJan23,Overnightpurchasedtoolsandautomotiverepairequipmentonaccount.Thepurchasewas$13,800,duewithin60days.OnJan24,Overnightsoldtheexcesstoolsfor$1,800,apriceequaltoOvernight’scost.Acemadenodownpaymentbuttopaytheamountduewithin45days.OnJan26,Overnightreceived$600fromAceTowlingaspartialsettlementofitsaccountreceivablefromAce.OnJan27,Overnightmadeapartialpaymentof$6,800onitsaccountpayabletoSnappytools.OnJan31,Overnightrecordthe$22,000accumulatedservicerevenueforJanuary.OnJan31,Overnightpaid$200utilitiesand$1,200wages.TheexpandedaccountingequationNow,let’sreviewhowJJ’stransactionsaffectedtheaccountingequation.(theexpandedaccountingequationp50)IncomeStatementStatementofCashFlowsThecashflowstatementreportsthecash

generatedandusedduringthetimeintervalspecifiedinitsheading.

StatementofCashFlowsp51Itorganizesandreportsthecashgeneratedandusedinthefollowingcategories:Operatingactivitiesconvertstheitemsreportedontheincomestatementfromtheaccrualbasisofaccountingtocash.Investingactivitiesreportsthepurchaseandsaleoflong-terminvestmentsandproperty,plantandequipment.Financingactivitiesreportstheissuanceandrepurchaseofthecompany'sownbondsandstockandthepaymentofdividends.

StatementofCashFlowsTheoperating,investing,andfinancingcategoriesincludebothpositiveandnegativecashflows.Thecombinedtotalofthethreecategoriesofthestatementexplainsthetotalchangeincashfromthebeginningtotheendoftheperiod.Itisnotunusualforacompanytoreportanincreaseincashfromoperatingactivities,butadecreaseinthetotalamountofcash.RelationshipsAmongFinancialStatementsDateatbeginningofperiodDateatendofperiodBalanceSheetBalanceSheetTimeIncomeStatementStatementofCashFlowsFinancialStatementArticulationFinancialReportingandFinancialStatementsStatementofCashFlowsBalanceSheetIncomeStatementOtherInformation:IndustryCompetitorsNationaleconomyFinancialstatementsarejustonesourceoffinancialaccountinginformation.TheUseofFinancialStatementsbyExterna