基础会计学第一单元课件

FundamentalFinancialAccounting1Instructor:Dr.XiaoyanLuEmail:luxy@Tel:84114272Requirements&GradingSchemeRequirements:FundamentalAccountingPrinciples,21stEdition,2013byMcGraw-HillEducation.(required)GradingAttendance&Participation5%Termpaper10%GroupAssignments25%QuizzesandFinalExam60%WhataccountingisAccountingPrinciplesUsesandusersofaccountingTheaccountingequationEthicsasafundamentalbusinessconceptHowbusinesstransactionsaffecttheaccountingequationGAAPBasicfinancialstatementsCHAPTER1AccountinginBusinessSTUDYOBJECTIVESAfterstudyingthischapter,youshouldunderstand:OpeningStory:WhyisFinancialInformationNeeded?–thecaseofPepsiCo.PepsiCoOver$25billioninsales,$23billioninassets,140000employees$3.3billioninnetincomePepsiCoranks28amongallU.S.companies.

Whowantstoknowthisinformation?AccountinginBusinessC1IdentificationSelecteconomicevents(transactions)RecordingRecord,classifyandsummarizeAccountingReportsSOFTBYTEAnnualReportPrepareaccountingreportsAnalyzeandinterpretforusersCommunication

ImportanceofAccountingForexample,thesalebyAppleofaniPhone.UsersofFinancialInformationC1Accountingiscalledthelanguageofbusinessbecauseallorganizationssetupanaccountinginformationsystemtocommunicatedatatohelppeoplemakebetterdecisions.Accountingservesmanyuserswhocanbedividedintotwogroups:externalusersandinternalusers.Isthecompanyearningsatisfactoryincome?Willthecompanybeabletopayitsdebtsastheycomedue?Howdoesthecompanycompareinsizeandprofitabilitywithitscompetitors?Whatdowedoiftheycatchus?QUESTIONSASKEDBYEXTERNALUSERSOpportunitiesinAccountingAccountinginformationisinallaspectsofourlives.Whenweearnmoney,paytaxes,investsavings,budgetearnings,andplanforthefuture,weuseaccounting.Ethics–AKeyConceptC3Thegoalofaccountingistoprovideusefulinformationfordecisions.Forinformationtobeuseful,itmustbetrusted.Thisdemandsethicsinaccounting.Ethics

arebeliefsthatdistinguishrightfromwrong.Theyareacceptedstandardsofgoodandbadbehavior.FraudTriangleC3Threefactorsmustexistforapersontocommitfraud:opportunity,pressure,andrationalization.EnvisionawaytocommitfraudwithalowperceivedriskofgettingcaughtFailstoseethecriminalnatureofthefraudorjustifiestheactionMusthavesomepressuretocommitfraud,likeunpaidbillsGenerallyAccepted

AccountingPrinciples(GAAP)C4Financialaccountingisgovernedbyconceptsandrulesknownasgenerallyacceptedaccountingprinciples(GAAP).GAAPaimstomakeinformationrelevant,reliable,andcomparable.Relevantinformationaffectsdecisionsofusers.Reliableinformationistrustedbyusers.Comparableinformationishelpfulincontrastingorganizations.InternationalStandardsC4Intoday’sglobaleconomy,thereisincreaseddemandbyexternalusersforcomparabilityinaccountingreports.Thisdemandoftenariseswhencompanieswishtoraisemoneyfromlendersandinvestorsindifferentcountries.DifferencesbetweenU.S.GAAPandIFRSaredecreasingastheFASBandIASBpursueaconvergenceprocessaimedtoachieveasinglesetofaccountingstandardsforglobaluse.InternationalAccountingStandardsBoard(IASB)

Anindependentgroup(consistingofindividualsfrommanycountries),issuesInternationalFinancialReportingStandards(IFRS)InternationalFinancialReportingStandards(IFRS)Identifypreferredaccountingpractices

ConceptualFrameworkandConvergenceC4PrinciplesandAssumptionsofAccountingC4Generalprinciplesarethebasicassumptions,concepts,andguidelinesforpreparingfinancialstatements.Generalprinciplesstemfromlong-usedaccountingpractices.Specificprinciplesaredetailedrulesusedinreportingbusinesstransactionsandevents.Specificprinciplesarisemoreoftenfromtherulingsofauthoritativegroups.AccountingPrinciplesC4CostPrincipleAccountinginformationisbasedonactualcost.Actualcostisconsideredobjective.MatchingPrincipleAcompanymustrecorditsexpensesincurredtogeneratetherevenuereported.FullDisclosurePrincipleAcompanyisrequiredtoreportthedetailsbehindfinancialstatementsthatwouldimpactusers’decisions.AccountingAssumptionsTimePeriodAssumptionPresumesthatthelifeofacompanycanbedividedintotimeperiods,suchasmonthsandyears.C4Proprietorship,Partnership,andCorporationHerearesomeofthemajorattributesofproprietorships,partnerships,andcorporations:C4Sarbanes–Oxley(SOX)CongresspassedtheSarbanes–OxleyAct

tohelpcurbfinancialabusesatcompaniesthatissuetheirstocktothepublic.SOXrequiresthatthesepubliccompaniesapplybothaccountingoversightandstringentinternalcontrols.Thedesiredresultsincludemoretransparency,accountability,andtruthfulnessinreportingtransactions.C4Dodd-FrankWallStreetReformandConsumerProtectionActTheActwasdesignedto:promoteaccountabilityandtransparencyinthefinancialsystem,putanendtothenotionof“toobigtofail,”protectthetaxpayerbyendingbailouts,andprotectconsumersfromabusivefinancialservices.TheActwasthemostcomprehensivefinancialreform

seekingtoregulatethe

financialmarkets

andmakeanothereconomiccrisislesslikely.

TransactionAnalysisandtheAccountingEquation

TheAccountingEquationExpandedAccountingEquation:A1NetIncomeIncreases&DecreaseInEquity

InvestmentsbyownersRevenuesEquityWithdrawalsbyownersExpensesIncreasesDecreasesTransactionIdentificationProcessAnswertelephonePurchasecomputerPayrentIsthefinancialposition(assets,liabilities,andstockholders’equity)ofthecompanychanged?YesNoYesRecordDon’tRecordRecordHowBusinessTransactionsAffectTheAccountingEquation?Everytransactionmusthaveadualeffectontheaccountingequation.Thus,ifanassetisincreased,theremustbeacorresponding:Decreaseinanotherasset,orIncreaseinaliability,orIncreaseinstockholders’equityP1TransactionAnalysisTransaction1OnDecember1,ChasTaylorpersonallyinvests$30,000cashinFastForwardanddepositsthecashinabankaccountopenedunderthenameofFastForward.Theaccountsinvolvedare:

(1)Cash

(asset)

(2)OwnerCapital

(equity)P1TransactionAnalysisTransaction2FastForwarduses$2,500ofitscashtobuysuppliesofbrandnamefootwearforperformancetestingoverthenextfewmonths.Theaccountsinvolvedare:

(1)Cash

(asset)

(2)Supplies(asset)P1TransactionAnalysisTransaction3FastForwardspends$26,000toacquireequipmentfortestingfootwear.Thisisanexchangeofoneasset,cash,foranotherasset,equipment.Theequipmentisanassetbecauseofitsexpectedfuturebenefitsfromtestingfootwear.Theaccountsinvolvedare:

(1)Cash

(asset)

(2)Equipment(asset)P1TransactionAnalysisTransaction4Taylordecidesmoresuppliesoffootwearandaccessoriesareneeded.Theseadditionalsuppliestotal$7,100,butasweseefromtheaccountingequation,FastForwardhasonly$1,500incash.TaylorarrangestopurchasethemoncreditfromCalTechSupplyCompany.Theaccountsinvolvedare:

(1)Supplies

(asset)

(2)AccountsPayable(liability)P1TransactionAnalysisTransaction5Inoneofitsfirstjobs,FastForwardprovidesconsultingservicestoapowerwalkingclubandimmediatelycollects$4,200cash.Theaccountsinvolvedare:

(1)Cash

(asset)

(2)Revenues(equity)P1TransactionAnalysisTransaction6and7FastForwardpays$1,000rentandthebiweekly$700salaryofthecompany’sonlyemployee.Theaccountsinvolvedare:

(1)Cash

(asset)

(2)Expenses(equity)P1TransactionAnalysisTransaction8FastForwardprovidesconsultingservicesof$1,600andrentsitstestfacilitiesfor$300toapodiatricservicescenter.Thecenterisbilledforthe$1,900total.Thistransactionresultsinanewasset,calledaccountsreceivable,fromthisclient.Theaccountsinvolvedare:

(1)AccountsReceivable

(asset)

(2)Revenues(equity)P1TransactionAnalysisTransaction9Thepodiatriccenterpays$1,900toFastForward10daysafteritisbilledforconsultingservices.Theaccountsinvolvedare:

(1)Cash(asset)

(2)AccountsReceivable(asset)P1TransactionAnalysisTransaction10FastForwardpaysCalTechSupply$900cashaspartialpaymentforitsearlier$7,100purchaseofsupplies,leaving$6,200unpaid.Theaccountsinvolvedare:

(1)Cash(asset)

(2)AccountsPayable(liability)P1TransactionAnalysisTransaction11TheownerofFastForwardwithdraws$200cashforpersonaluse.Theaccountsinvolvedare:

(1)Cash(asset)

(2)Withdrawals(equity)SummaryofTransactionsP1BasicFinancialStatementsBalanceSheetIncomeStatementStatementofCashFlowsStatementofOwner’sEquityAfteralltransactionsfortheperiodarerecorded,financialdataissummarized,andthatsummarydataisusedtogeneratethebasicfinancialstatementsFinancialStatementsThefourfinancialstatementsandtheirpurposesare:Balancesheet—describesacompany’sfinancialposition(typesandamountsofassets,liabilities,andequity)atapointintime.Incomestatement—describesacompany’srevenuesandexpensesalongwiththeresultingnetincomeorlossoveraperiodoftimeduetoearningsactivities.Statementofowner’sequity—explainschangesinequityfromnetincome(orloss)andfromanyownerinvestmentsandwithdrawalsoveraperiodoftime.Statementofcashflows—identifiescashinflows(receipts)andcashoutflows(payments)overaperiodoftime.P2BalanceSheetThebalancesheetdescribesacompany’sfinancialpositionatapointintime.P2IncomeStatementTheincomestatementdescribesacompany’srevenuesandexpensesalongwiththeresultingnetincomeorlossoveraperiodoftimeduetoearningsactivities.P2StatementofCashFlowsP2StatementofOwner’sEquityNetincomefromtheincomestatement.Thestatementofowner’sequityreportsinformationabouthowequitychangesoverthereportingperiod.P2GlobalViewItisoftensaidthatU.S.GAAPismorerules-basedwhereasIFRSismoreprinciples-based.Themaindifferenceontherulesversusprinciplesfocusiswiththeapproachindecidinghowtoaccountforcertaintransactions.UnderU.S.GAAP,theapproachismorefocusedonstrictlyfollowingtheaccountingrules;underIFRS,theapproachismorefocusedonareviewofthesituationandhowaccountingcanbestreflectit.GlobalViewFinancialStatementsBothU.S.GAAPandIFRSpreparethesamefourbasicfinancialstatements.Toillustrate,acondensedversionofPi