会计英语（刘凤娟）

会计英语（刘凤娟）UnitOne

IntroductiontoAccounting.pptUnitTwo

DoubleEntrySystem.pptUnitThreeJournalandLedger.pptUnitFour

TheTrialBalanceandAdjusting

Procedures.pptUnitFive

IncomeStatement.pptUnitSix

StatementofOwner’sEquity.pptUnitSevenBalanceSheet.pptUnitEight

CashFlowStatement.pptUnitNine

FinancialStatementAnalysis.ppt全套可编辑PPT幻灯片课件（共9章）会计英语UnitOneIntroductiontoAccountingUnitOneIntroductiontoAccountingLearningObjectivesAfterlearningthisunit,you’llbeableto:●definethetermofaccounting;●depicttheaccountingprocess;●understandaccountingassumptions;●understandaccountingelementsUnitOneIntroductiontoAccountingSection1

MiniCase:ThePreparationofAccountingActivitiesSection2

Reading1MiniCase:ThePreparationofAccountingActivitiesThissectionwillgiveyouanexampletoillustratetheroleoftheaccountantintheoperationofacorporation.NotethatallminicasesarebasedonbusinessdealingsofTianyuConsultancyServicesCompanyinthisbook.Therefore,thecycleofaccountingisintroducedstepbystepbythesebusinesstransactions.MissLihasworkedasanaccountantfortenyears.Recently,sheacceptedanotherjobasanaccountantinTianyuConsultancyServicesCompany.Todayisherfirstdayatwork.Shewasgiventhefollowinginformationaboutthecompany:(1)Invested$50,000incashinthecompanyonJan.1,2012.(2)Spent$1,000onbuyingofficeequipmentsincashfromBJCompany,onJan.3.(3)Spent$2,000onbuyingofficesuppliesfromSHCompanyoncreditonJan.5.(4)Receivedacashchequeof$500fromTJcompanyforsellingofficeequipmentsonJan.6.(5)Soldofficeequipmentthatcost$500toLeeCompanyonaccountonJan.8.(6)Paid$1,000,partoftheamountowingtoSHCompany,onJan.10.(7)Collected$500ofcashfromitsdebtorLeeCompanyonJan.12.(8)Received$10,000professionalfeesfromWuxiCompanyonJan.13.(9)Paid$1,000ofcashforofficerentonJan.15.(10)Paid$3,000ofcashforstaffsalaryonJan.17.(11)Incurredandpaidmiscellaneousexpense$1,000onJan.18.(12)Received$5,000professionalfeesonaccountfromNJCompanyonJan.19.(13)Collected$5,000ofcashfromitsdebtorNJcompanyonJan.25.(14)Ownerofthecompanywithdrew$4,000ofcashforpersonaluseonJan.31.2ReadingTextAWhatisAccountingAbusinesstransactionisaneconomiceventthathasadirectimpactonbusiness.Transaction=anexchangeofvaluesbetweentwobusinessentitiesSomeexamplesareshowninExhibit1-1.Exhibit1-1Transactionsandbusinessentitiesinvolved2ReadingTextAWhatisAccountingAccountingEntityAssumptionMonetaryUnitAssumptionGoingConcernAssumptionAccountingPeriodAssumption2ReadingTextBProcessFlowofanAccountingSystem2ReadingTextCAccountingElements1.AssetsAssetsarefutureeconomicbenefitsownedorcontrolledbythebusinessentityasaresultofthepasttransactionsortheotherpastevents.Theprobabilityoftheirfuturebenefitscanbeascertained.Assetsinthefinancialstatement(BalanceSheet)aredividedintotwokinds.(1)CurrentAssetsareused,sold,orcollectedwithinoneaccountingperiod,e.g.cash,accountsreceivable,supplies,inventoryandpre-paidinsurance.CurrentAssetsareassetsthatareexpectedtoberealizedincash,sold,orconsumedwithintheyearoraccountingcycle.(2)FixedorNon-currentAssetsareassetswherebenefitsariseinmorethanoneaccountingperiod,e.g.building,property,plantandequipment.Non-currentAssetsareusedintheoperationofthebusinessratherthanbeingheldforsaleasinventory.2ReadingTextCAccountingElements2.Liabilities(1)CurrentLiabilitiesaredebtsthatareduewithinashortperiodoftime,usuallywithintheaccountingcycle,suchasaccountspayable,salarypayable,notespayable,taxespayable.(2)Non-currentLiabilities(alsoknownaslong-termliabilities)aredueinmorethanoneaccountingperiod,e.g.bankloanwhichisdueinthreeyears’time.2ReadingTextCAccountingElements3.Owner’sEquityOwner’sequityistheamountbywhichassetsexceedliabilities.Owner’sequityisexpandedtoincluderevenue,expenses,anddrawing.(1)Revenuerepresentstheamountthatabusinesschargescustomersforproductssoldorservicesprovided.(2)Expensesrepresentanoutflowofassets(orincreaseinliabilities)asaresultoftheeffortsmadetogeneraterevenue.(3)Drawingiswithdrawalsthatreduceowner’sequityasaresultoftheownertakingcashorotherassetsoutofthebusinessforpersonaluse.SummaryInthisunit,thereadershadadirectimpressionontheaccountingwiththecaseofMissLi.Andthen,bythreereadingmaterials,thereaderscametounderstandthemeaningoftheaccountingandtheuseofaccountingassumptions;theyknewabouttheprocessflowoftheaccountingsystem,whichincludesanalyzing,recording,classifying,interpreting,reportingandsummarizing;theylearnedaboutthreeaccountingelementssuchasassets,liabilities,andowner’sequity.Itisveryimportantforanaccountanttounderstandtheaccounting.课件制作YEThanksB会计英语UnitTwoDoubleEntrySystemUnitTwoDoubleEntrySystemLearningObjectivesAfterlearningthisunit,you’llbeableto:●prepareaccountingentries;●introduceaccountingequation;●understanddoubleentrysystem;●understandtheaccountingcycle.UnitTwoDoubleEntrySystemSection1

MiniCase:TeachYouHowtoPrepareAccountingEntriesSection2

Reading1MiniCase:TeachYouHowtoPrepareAccountingEntriesAfterMissLiconfirmedthevalidityofthesesourcedocumentswhichthecompanygotinJanuary,2012mentionedin“MiniCase”ofUnit1andtherespondingchartofaccounting,shebeginstocomplywithaccountingequation(1)toprepareaccountingentiesshownintheFigure2-1foreverybusinesstransaction.Assets=Liabilities+Owner’sEquity2ReadingTextAAccountingEquationandDoubleEntrySystemTheAccountingEquationAssets=Liabilities+Owner’sEquityOwner’sEquity=Assets–LiabilitiesTheclaimsonthecompany’sassets—whatitowes—includeownerandcreditorclaims.Acorporation’sequity—oftencalledstockholders’orshareholders’equity—hastwoparts:contributedcapitalandretainedearnings.Anetincomeoccurswhenrevenuesexceedexpenses.What’smore,theaccountingequationmustbeinbalance.Anyactivityofabusinesswhichaffectsfiguresintheaccountingequation(Assets=Liabilities+Owner’sEquity)isatransaction.Transactionsarerecordedintheaccountingrecordsusingthehistoricalcostprinciple.Theactualamountpaidorreceivedistheamountrecorded.AllbusinesstransactionsaffectfiguresintheaccountingequationthroughspecificAccounts.2ReadingTextAAccountingEquationandDoubleEntrySystemDoubleEntrySystemBusinesstransactionsdealwithmoneyandeachtransactionalwaysaffectstwothings.Example1:afirmbuysgoodsvaluedat$1,000andpaysthemincash,twothingswilloccurasfollows.①Themoneyinthefirm’sbankaccountwillbedecreasedby$1,000.②Thestockofgoodsisincreasedby$1,000.Everytransactionaffectsatleasttwoaccounts.However,itdoesnotmeanthatonlytwoaccountsareaffected.Example2:acompanyspent$6,000buyingacomputer.Thecompanypaid$1,000bycashandthebalancewillbepaidthreemonthslater.Thistransactionwillberecordedasfollows:Threethingshaveoccurred:(1)Themoneyinthefirm’sbankaccountwillbedecreasedby$1,000.(2)Thevalueofcomputerisincreasedby$1,000.(3)Thedebtisincreasedby$5,000.Thatistosay,therearethreeaccountsaffectedbythistransaction.Exceptions:①SalesReturns(orReturnInwards):goodssoldthatarereturnedbythecustomertothebusiness.Itisdebitinnature.②PurchaseReturns(orReturnOutwards):goodspurchasedthatarereturnedbythefirmtothesuppliers.Itiscreditinnature.2ReadingTextBTheAccountingRulesandtheUseofDoubleEntryAccountingTherulesofdebitandcreditarebasedonthelocationofthebasicelementsintheaccountingequation.Assets=Liabilities+Owner’sEquity(Left-side)(Right-side)Assetsareontheleftsideoftheaccountingequation.Theyareofadebitnature.Bothliabilityandowner’sequityaccountsareontherightsideoftheaccountingequation.Theyareofacreditnature.Thesimplestformofanaccount,aTAccount,hasthreeparts:①Atitle—thenameoftheitemrecordedintheaccount;②Aleftside—calledthedebitside;③Arightside—calledthecreditside.2ReadingTextBTheAccountingRulesandtheUseofDoubleEntryAccountingExample:TheselectedbusinesseventsofJanuaryofWhite’sshopareasfollows.(1)Invest$4,000tosetupashop.(2)Boughtsuppliesforcash$300.(3)BoughtofficefurniturefromJackFurnitureCompanyonaccount$2,000.Theaccountingequationaftereachtransactionwillappearasfollows:2ReadingTextBTheAccountingRulesandtheUseofDoubleEntryAccountingTheapplicationofdouble-entryaccountingisasfollows.TheentryofExample1inTextAwillberecordedasfollows:Dr.Inventory $1,000Cr.Cash $1,000TheentryofExample2inTextAwillbewrittenasfollows:Dr.Computer $6,000Cr.Cash $1,000AccountsPayable $5,000Thetotaldebit($6,000)equalstotalcredit($6,000).2ReadingTextBTheAccountingCycleThetermaccountingcyclereferstothestepsinpreparingfinancialstatements.①Transactionoccursandinformationisrecordedonasourcedocument.②Sourcedocumentinformationisrecordedinageneraljournal.③Transactioninformationispostedfromthegeneraljournaltotheledger.④ATrialBalanceispreparedattheendoftheperiodandnecessaryadjustmentsaremade.⑤Expenses,revenueanddrawingaccountsareclosedandapost-closingtrialbalanceisprepared.⑥FinancialStatementsareprepared.SummaryThisunitdiscussedtheaccountingequation.Theowner’sequityequalsassetslessliabilities.Andthedoubleentrysystemwasexplained.Itmeansthateverytransactionaffectsatleasttwoaccounts,andforeverytransactionenteringtheaccounts,totaldebitsequaltototalcredits.Thus,theaccountingruleswereillustratedandhowtousethedouble-entryaccountingwaselaboratedinTextB.Finally,theaccountingcyclewasdescribed.Itincludedidentifyingtransactionsoreventstoberecorded,journalizingtransactionsandevents,postingfromjournaltoledger,preparingthetrialbalanceandpost-closingtrialbalance,andpreparingfinancialstatementsandothers.课件制作YEThanksB会计英语UnitThreeJournalandLedgerUnitThreeJournalandLedgerLearningObjectivesAfterlearningthisunit,you’llbeableto:●describethechartofaccounts;●understandthejournalandpreparethegeneraljournal;●understandtheledgerandpreparethegeneralledger.UnitThreeJournalandLedgerSection1

MiniCase:TeachYouHowtoPrepareJournalandLedgerSection2

Reading1MiniCase:ThePreparationofAccountingActivitiesAfterMissLifinishedpreparingtheaccountingentries,shebeginstopostthemtothegeneraljournal.TheresultsareshowninExhibit3-1.1MiniCase:ThePreparationofAccountingActivitiesAfterMissLifinishedpreparingtheaccountingentries,shebeginstopostthemtothegeneraljournal.TheresultsareshowninExhibit3-1.1MiniCase:ThePreparationofAccountingActivitiesAfterthat,shepoststhejournalentriesoftheGeneralJournal(GJ)totheGeneralLedgershowninExhibit3-2.1MiniCase:ThePreparationofAccountingActivities1MiniCase:ThePreparationofAccountingActivities1MiniCase:ThePreparationofAccountingActivities2ReadingTextAChartofAccountsAseparateaccountiskeptforeachtypeofasset,eachtypeofliability,andeachtypeofequity.Thesethreetypesofaccountsarecalledpermanentaccountsbecausetheyhaveongoingbalancesfromoneaccountingperiodtothenext.Therearethreetypesoftemporaryaccounts:revenue,expenseanddrawing.Achartofaccountsisalistofallaccountsusedbyacompany.Eachaccountisidentifiedbyanaccountnameandanaccountnumber.2ReadingTextBIntroductiontotheJournalTherefore,generaljournal(orjournal)iscommonlyreferredtoasabookoforiginalentries(thebookinwhichwefirstrecordthetransactions)thatlinksthedebitsandcreditsofindividualtransactionsbyprovidingapermanentandcompleterecord,arrangedinachronologicalorder,ofallthebusinesstransactionsofabusinessentity.Afterward,thedebitsandcreditsarecopied(transferredorposted)fromthejournaltothebookfinalentry(generalledgerorledger).Theprocessofrecordingatransactioninajournaliscalledjournalizingthetransactionandtheoneoftransferringtheinformationfromthejournalstotheledgeriscalledpostingandisusuallydonemonthly.Theupdatedledgeraccounts,inturn,serveasthebasisforpreparingbalancesheetandotherfinancialstatements.2ReadingTextCTheLedgerandPostingofTransactionsTherearetwotypesofledgers—generalandsubsidiaryledger.Thegeneralledgerisacollectionofthebusinessentity’saccounts.Therearefivestepsinthepostingofjournalentriestoaledger.①EnterthedateofeachtransactionintheaccountintheDatecolumn.②EnterabriefexplanationforthetransactionintheExplanationcolumn.③EntertheamountofeachtransactionintheaccountintheDebitorCreditcolumn.④Enterthejournalpageinthepostingreference(Post.Ref.)columnoftheaccount.⑤Entertheaccountnumberinthepostingreference(Post.Ref.)columnofthejournal.SummaryThisunitintroducedachartofaccountsthatgivetheaccountingnameandtheiraccountingnumbersusedtopreparethejournalandledger.Andtheterms“thegeneraljournal”and“thegeneralledger”werealsoexplained.Finally,howtopreparethegeneraljournalandhowtopostthejournalentrytotheledgerareshowntothereader.课件制作YEThanksB会计英语UnitFourTheTrialBalanceandAdjustingProceduresUnitFourTheTrialBalanceandAdjustingProceduresLearningObjectivesAfterlearningthisunit,you’llbeableto:●masterthepreparationofthetrialbalanceandadjustedtrialbalance;●understandtransactionerrors;●comprehendtheadjustingentries.UnitFourTheTrialBalanceandAdjustingProceduresSection1

MiniCase:TeachYouHowtoPreparetheTrialBalanceSection2

Reading1MiniCase:TeachYouHowtoPreparetheTrialBalanceMissLifinishedjournalizingthecompany’stransactionsandpostingthejournalentriestotheledgershowninMiniCase,Unit3.Then,sherealizedthatsheneedstocheckiftotaldebitsequaltotalcredits,namelytopreparetrialbalanceshowninExhibit4-1.Allofthebalancesoftheaccountsarecopiedfromtheledger.1MiniCase:TeachYouHowtoPreparetheTrialBalance(1)ErrorofOmissionAtransactioniscompletelyomittedinthebooks.E.g.Acreditsaleforacomputerof$4,000wasnotrecorded. Dr.AccountsReceivable $4,000 Cr.Computer $4,000Forexample,TianyuConsultancyServicespaida$1,200rentonJanuary1foroneyear’srentinadvance.Dr.PrepaidRent $1,200 Cr.Cash $1,200AttheendofJanuary,therentforonemonthhasbeenusedup.Thenanadjustmenthastobemade:Dr.RentExpense $100 Cr.PrepaidRent $100E.g.thecompanyhas$2,000ofOfficeSuppliesatthebeginningofJanuary.On31January,only$1,700ofOfficeSuppliesisstillonhand.$300oftheofficesupplieshasbeenconsumed.anadjustmententryhastobemade:Dr.OfficeSuppliesExpense $300 Cr.OfficeSupplies $300NotethedifferencebetweenOfficeSuppliesandOfficeSuppliesExpense:OfficeSuppliesisclassifiedasanassetaccountandappearsintheBalanceSheet,whereasOfficeSuppliesExpenseisanexpenseaccountandappearsintheIncomeStatement.1MiniCase:TeachYouHowtoPreparetheTrialBalanceErrorofOmission①UnearnedRevenue-aliabilityaccount.Forinstance,aservicefeeof$12,000hasbeenreceivedonJanuary1.inadvanceforservicetobeprovidedfromJanuarytoDecember:Dr.Cash $12,000 Cr.UnearnedServiceFees $12,000IfserviceforonemonthhasbeenrenderedtoJanuary31,servicefeesearnedshouldbe$12,000/12or$1,000.Adjustingentryisneededtosatisfytherevenuerecognitionconcept:Dr.UnearnedServiceFees $1,000 Cr.ServiceFees(Revenue) $1,000②AccruedRevenue,includingRentReceivable,CommissionReceivable,InterestReceivable.E.g.TianyuConsultancyServicessaved$100,000at12%annualinterestinthebankinJanuary1.Bankinterestsarepaidonceattheendofeveryquarter.InterestReceivableforJanuaryis$100,000×12%/12=$1,000.theentrieswillbewrittenasfollows:Dr.CashinBank $100,000 Cr.Cash $100,000Dr.InterestReceivable $1,000 Cr.InterestRevenue $1,0001MiniCase:TeachYouHowtoPreparetheTrialBalanceErrorofOmission③AccruedExpense.Thedifferencebetweenprepaidexpensesandaccruedexpenses:Prepaidexpensesareexpensespaidinadvanceofconsumption.Prepaidexpenseaccountsareassets.Accruedexpensesarethoseforwhichtheconsumptionprecedesthepayment.Accruedexpenseaccountsareliabilities.Namely,Accruedexpenseisexpensethathasbeenincurredduringtheaccountingperiodtoearnrevenuebuthasnotbeenpaidorrecorded.ExamplesofAccruedorunrecordedexpenses:AccruedInterest(orInterestPayable),AccruedSalaries(orSalaryPayable).E.g.thecompanyhasborrowed$100,000onJanuary1at6%annualinterest.AccruedinterestexpenseforJanuaryis$10,000×0.06/12or$500.Theentrieswillbewrittenasfollows:Dr.Cash $100,000 Cr.Bankloan $100,000Dr.InterestExpense $500 Cr.InterestPayable $500Ifeveryoneoffiveemployeesispaid$40every/perday.Theyarepaidweekly,i.e.oneveryFriday.Jan31isaTuesday.Then,2daysofthatweekwillapplytoJanand3daystoFeb.So,$400wouldapplytoJan(MondayandTuesday)and$600toFeb(WednesdaytoFriday).AttheendofJan.,theentrieswouldbe:Dr.SalaryExpense $400 Cr.SalaryPayable $4001MiniCase:TeachYouHowtoPreparetheTrialBalanceErrorofOmission④Non-currentassets,includingLand,Building,Machinery,havealongerlifeexpectancy.Theiroriginalcostsareshownonthefinancialstatement.Toachieveapropermatching,thecostoftheseassetsmustbeapportionedasexpensesintheaccountingperiodsduringwhichtheyareusedtogeneraterevenues.ThisapportionedexpenseisDepreciationExpense.Tokeeptheoriginalcostsoftheassetandmaintainarunningtotalofthedepreciationallocated,anewaccountAccumulatedDepreciationiscreated.Thisaccountisacontraasset.Forinstance,theoriginalcostoftheofficeequipmentis$10,000anditsdepreciationexpenseis$200.Theadjustingentrywouldbe: Dr.DepreciationExpense $200 Cr.AccumulatedDepreciation $200TheOfficeEquipmentaccountwouldbeshowninthebalancesheetasfollows:OfficeEquipment $10,000Less:AccumulatedDepreciation ($200) $9,800Forinstance,thecompanyspent$50,000ononepatentoncredit.Theadjustingentrywouldbe: Dr.Copyrights $90,000 Cr.Accountspayable $90,000⑤Forinstance,thecompanypaidincometaxexpenseof$6,090foradjustedincome.Dr.Incometaxexpense $6,090 Cr.Cash $6,0901MiniCase:TeachYouHowtoPreparetheTrialBalance(2)ErrorofOriginalEntryBesidesornissionsoftheaboveentries,MissLifoundanothererror.Doubleentriesarerecordedwithanincorrectamountandarepostedaccordingly.ThecashpaymentforpurchasingofficeequipmentfromBJCompanyamountingto$10,000waswronglyrecordedas$1,000.Dr.OfficeEquipment($10,000-$1,000) $9,000 Cr.Cash $9,000MissLicorrectedalltransactionerrorsandpreparedadjustedtrialbalanceshowninExhibit4-2.1MiniCase:TeachYouHowtoPreparetheTrialBalance(2)ErrorofOriginalEntryMissLicorrectedalltransactionerrorsandpreparedadjustedtrialbalanceshowninExhibit4-2.(Continued)2ReadingTextATheTrialBalanceAtrialbalanceisathree-columnschedulelistingthenamesandbalanceofalltheaccounts2ReadingTextBTransactionErrors2ReadingTextBTransactionErrorsSomeproceduresareusedtocorrectanerrorinjournalizingorpostingtransactionsaccordingtothenatureoftheerrorandwhentheerrorisdiscovered.TheseproceduresaresummarizedinExhibit4-3.Correctingthefirsttwotypesoferrorsinvolvessimplydrawingalinethroughtheerrorandinsertingthecorrecttitleoramount.Usually,thepersonmakingcorrectionsinitialsthecorrectionincasequestionsariselater.Correctingthethirdtypeoferrorismorecomplex.Examplesareasabove.2ReadingTextCTheAdjustedTrialBalanceAdjustingEntriesTimingdifferencesbetweencashflowsandtherecognitionofrevenueandexpensesarereferredtoasaccrualsanddeferrals.AccrualBasisAccountingTheaccountingconceptthatsupportsthiswaytoreportrevenueiscalledtherevenuerecognitionconcept.2ReadingTextCTheAdjustedTrialBalanceCashBasisAccountingUndercashaccounting,revenueandexpensesarereportedintheaccountingperiodinwhichcashisreceivedorpaid.Smallservicebusinessesmayusethecashaccountingbecausetheyhavefewreceivablesandpayables.Adjustingentriesareneededinordertobringcertainaccountsuptodate.Theyaredoneattheendoftheaccountingperiodinordertocomplywiththematchingconcept.PrepaidExpensesarepaymentinadvance.UnearnedRevenuerecordsrevenuewhichisreceivedinthecurrentaccountingperiodbutisyettobeearned.AccruedRevenueisrevenuethathasbeenearnedduringtheaccountingperiodbuthasnotyetbeenreceivedorrecorded.Whencustomersareunabletosettletheiroutstandingdebts,theunpaidamountsarereferredtoasBadDebts.TheProvisionforDoubtfulDebtsisanegativecurrentassetandisanotherexampleofacontraaccount.ItisdeductedfromtheAccountsReceivableaccount.2ReadingTextCTheAdjustedTrialBalanceForexample,Whencustomersareunabletosettletheiroutstandingdebts($800).Theadjustingentryisasfollows:Dr.BadDebtsExpense $800 Cr.AccountsReceivable $800Toachievethedesiredmatchingofrevenueandexpensesforanaccountingperiod,whenthesalesrevenueisrecognized,anestimatedamountoftherelateddoubtfuldebtexpenseisrecorded.E.g.theestimatedbaddebtexpenseis$800.Thenthejournalentryis:Dr.DoubtfulDebtsExpense $800 Cr.ProvisionforDoubtfulDebts $800Next,AccountsReceivable $50,000Less:ProvisionforDoubtfulDebts ($800) $42,000Whenitisconformedthatthecustomerwillnotpaytheoutstandingdebt,thenanentrywillbeneededtoadjusttheAccountsReceivableaccount:Dr.ProvisionforDoubtfulDebts $800 Cr.AccountsReceivable $800SummaryThisunitmainlydiscussesthetrialbalanceandhowtopreparetheadjustedtrialbalanceaccordingtothetrialbalanceandtheadjustingentries.Therefore,usesandlimitationsofthetrialbalanceandtypesoftransactionerrorsarelisted.What’smore,therearefourtypesofaccountsrequiringadjustingentries.Theyareprepaidexpenses,unearnedrevenue,accruedrevenueandaccruedexpenses.Inaddition,accrualbasisaccountingandcashbasisaccountingareintroducedintermsoftimeperiodwhentheserviceisreceivedorexpenseispaidregardlessofwhethercashispaidatthesametimeorlater.课件制作YEThanksB会计英语UnitFiveIncomeStatementUnitFiveIncomeStatementLearningObjectivesAfterlearningthisunit,you’llbeableto:●masterthepreparationoftheincomestatement;●understandrevenuesandexpenses;●comprehendthetermprofit.UnitFiveIncomeStatementSection1

MiniCase:TeachYouHowtoPrepareIncomeStatementSection2

Reading1MiniCase:TeachYouHowtoPrepareIncomeStatementInordertopreparetheincomestatementandadjustedincomestatement,MissLicarefullyreadsandanalyzesthetrialbalanceandtheadjustedtrialbalance.Andthen,shetransfersthebalanceoftheaccountsofprofessionalfees,servicefees,andinterestrevenueintheadjustedtrialbalancetotheappropriateaccountsintheincomestatementofgrossprofitforTianyuConsultancyServicesCompany;sheputsthebalanceofaccountsofrentexpense,salaryexpense,officesuppliesexpense,interestexpense,depreciationexpense,andmiscellaneousexpenseintothecorrespondingaccountsintheincomestatementoftotalexpensesforTianyuConsultancyServicesCompany;grossprofitminustotalexpensesistheincomebeforetax.Afterdeductingincometaxexpensefromthebalanceoftheincomebeforetax,thenetincomeforthemonthisgot.Therefore,theincomestatementforTianyuConsultancyServicesCompanyisprepared.ItisshowninExhibit5-1andExhibit5-2.1Inordertopreparetheincomestatementandadjustedincomestatement,MissLicarefullyreadsandanalyzesthetrialbalanceandtheadjustedtrialbalance.Andthen,shetransfersthebalanceoftheaccountsofprofessionalfees,servicefees,andinterestrevenueintheadjustedtrialbalancetotheappropriateaccountsintheincomestatementofgrossprofitforTianyuConsultancyServicesCompany;sheputsthebalanceofaccountsofrentexpense,salaryexpense,officesuppliesexpense,interestexpense,depreciationexpense,andmiscellaneousexpenseintothecorrespondingaccountsintheincomestatementoftotalexpensesforTianyuConsultancyServicesCompany;grossprofitminustotalexpensesistheincomebeforetax.Afterdeductingincometaxexpensefromthebalanceoftheincomebeforetax,thenetincomeforthemonthisgot.Therefore,theincomestatementforTianyuConsultancyServicesCompanyisprepared.ItisshowninExhibit5-1andExhibit5-2.MiniCase:TeachYouHowtoPrepareIncomeStatement2ReadingTextARevenuesandExpenses1.RevenueRevenuerepresentstheamountthatabusinesschargescustomersforproductssoldorservicesprovided.Revenuecreatesaninflowofassets.Itincreasesassets(suchascash,accountsreceivable)andincreasesabusinessowner’sequity.SalesRevenue.SalesReturnsandAllowances.OtherR