会计专业英语446

会计英语课程简介:《会计英语》阐述了与财务会计、管理会计、财务管理及审计相关的专业英语知识。以最新会计准则及现代会计理论的最新研究成果为指导，内容不仅仅拘泥于纯会计方面的专业英语，而是涵盖了整个企业经营管理过程中包括财务会计、管理会计、财务管理和审计工作中的难点和重点，且与实务的结合较为紧密，从而帮助会计从业人员更全面地掌握财会工作中存在的问题。课程学时：60学时1参考资料张新民．钱爱民，财务报表分析[M]．北京：中国人民大学出版社，2011孙建华．财务报表分析[M]．北京：清华大学出版社,2012祝建军，廖玉.财务报表分析[M].北京：中国财政经济出版社，2015.图书馆CNKI数据库2课程结构本书内容分为四个部分：财务会计、管理会计、财务管理和审计。采用层级递进的方法阐述了会计信息从产生、使用到鉴证的全过程，在重点介绍财务会计专业英语的同时兼顾管理会计、审计和财务管理的基本内容，引导读者全方位理解会计相关学科英语，帮助其在实务及后续学习中打下稳固基础。3Chapter1PrincipleofFinancialAccounting4LearningObjectivesExplainthenatureofaccountinganditstypes.InterpretthequalitativecharacteristicsofaccountinginformationUnderstandthebasicassumptionsandprinciplesofaccountingIdentifytheeffectsofbusinesstransactionsontheaccountingequationApplytheDouble-EntryBookkeeping5MiniCaseMattisafreshmaninterninthefinancialdepartmentofacompany.Duringtheaccountingprocess,hefoundthattherewerecomplicatedbusinesstransactionsandit’snoteasyforhimtodealwith,sohewenttoaskHarry,anexperiencedaccountant.Matt:“Harry,Ifoundthattherewerevariousbusinesstransactionssuchaspurchasingnewmachinesorrawmaterials,payingsalariesoftheworkers,receivingnewinvestmentsoracquiringsalesrevenues,theyarecomplicatedandIhavenoideahowtorecordthesetransactionsbyappropriatemethod.”Harry:“Well,beforeyoudealwiththesetransactions,youshouldmakeaclassificationofthemandunderstandtheinnerrelationship.”Matt:“AndIsawthatwhenpurchasinganewmachine,itwillberecognizedascashoutflowevenifwehaven’tpayforit.Why?”Harry:“Actually,therearesomeaccountingprinciplesandrulesbeforestartingaccountingcomputation.Afteryoulearnedthem,youwillunderstand.”Identify:(1) Howcouldweclassifythetransactions?(2) Whatisthebasicpremiseandrulesofaccounting?6ContentTopic1:NatureofaccountingTopic2:QualitativeCharacteristicsofAccountingInformationTopic3:TheAssumptionandPrincipleofAccountingTopic4:TheAccountingEquationandDouble-EntryBookkeeping7Topic1:Natureofaccounting1.AccountingisanInformationSystemAccountingisoftendescribedasaninformationsystemthatidentifies,records,andcommunicatesrelevant,reliable,andcomparableinformationaboutanorganization’sbusinessactivitiesthatcanbeexpressedinmonetaryterms.2.ThePurposesofAccountingTheprimarypurposeofaccountingistoprovideinformationtohelppeoplemakedecisionsabouteconomicactivities.8

Topic1:Natureofaccounting3. TypesofAccountingInformation

(1)FinancialAccountingFinancialaccountingreferstoinformationdescribingthefinancialresources,obligationsandactivitiesofaneconomicentity,eitheranorganizationoranindividual.(2)ManagementAccountingManagementaccountinginvolvesthedevelopmentandinterpretationofaccountinginformationwhichisforinternaluseandprovidesspecialinformationforthemanagersofacompany.(3)TaxAccountingTaxplanningmeansanticipatingthetaxeffectsofbusinesstransactionsandstructuringthesetransactionsinamannerthatwillminimizetheincometaxburden.9Topic1:Natureofaccounting4.UsersofAccountingInformation(1) IndividualsIndividualsoftenkeepsaccountingrecordstomakedecisions.(2) ManagersofBusinessManagersofbusinessesuseaccountinginformationtosetgoalsfortheirorganizations,toevaluateprogresstowardthosegoals,andtotakecorrectiveactionifnecessary.(3) InvestorsandcreditorsInvestorsandcreditorsprovidethemoneyabusinessneedstobeginoperations.Todecidewhethertohelpstartanewventure,potentialinvestorsevaluatewhatincometheycanexpectontheirinvestment.(4) GovernmentregulatoryagenciesMostorganizationsfacegovernmentregulation.Forexample,theSecuritiesandExchangeCommission(SEC).10Topic1:Natureofaccounting4.UsersofAccountingInformation(5) TaxauthoritiesTaxAuthoritieslevytaxesonindividualsandbusinesses.Theamountofthetaxisfiguredusingaccountinginformation.(6) NonprofitorganizationNonprofitorganizations—suchaschurches,governmentagencies,andcollege,whichoperateforpurposesotherthanprofit—useaccountinginformationinmuchthesamewaythatprofit-orientedbusinessdo.(7) OtherusersEmployeesandlaborunionsmakewagedemandsbasedontheiremployer’sreportedincome.Consumergroupsandthegeneralpublicarealsointerestedintheamountofincomebusinessesearn.11Topic2:QualitativeCharacteristicsofAccountingInformation1.PrimaryQualitativeCharacteristics(1) RelevanceRelevantaccountinginformationmustbeusefulinhelpingusersassessthefutureperformanceofthefirmaswellasprovidefeedbackaboutpriordecisions.(2) MaterialityMaterialitymeansthattherequirementsofaccountingprinciplesmaybeignorediftheireffectsonthefinancialstatementsareunimportanttousers.(3) FaithfulRepresentationFinancialinformationmustnotonlyrepresentrelevantphenomena,butalsofaithfullyrepresentthephenomenathatitpurportstorepresent.Tobeaperfectlyfaithfulrepresentation,adepictionshouldhavefollowingthreecharacteristics:complete,neutral,andfreefromerror.12Topic2:QualitativeCharacteristicsofAccountingInformation2.EnhancedQualitativeCharacteristics(1)ComparabilityComparabilityisthequalitativecharacteristicthatenablesuserstoidentifyandunderstandsimilaritiesin,anddifferencesamongitems.(2)VerifiabilityVerifiabilitymeansthatdifferentknowledgeableandindependentobserverscouldreachconsensus,althoughnotnecessarilycompleteagreement,thataparticulardepictionisfaithfullyrepresented.13Topic2:QualitativeCharacteristicsofAccountingInformation2.EnhancedQualitativeCharacteristics(3)TimelinessTimelinessmeanshavinginformationthatcouldinfluencedecisionsavailabletodecisionsavailabletodecisionmakersintime.(4)UnderstandabilityAccountinginformationshouldbeunderstandabletouserswhohaveareasonableknowledgeofbusinessandeconomicactivitiesandwhoarewillingtostudytheinformationwithreasonablediligence.14Topic3：TheAssumptionandPrincipleofAccounting1.BasicAssumptionsofAccounting(1)BusinessEntityAssumptionBusinessentitymeansthateverybusinessunitorenterpriseistreatedinaccountingasaseparateentity.

(2)GoingConcernAssumptionGoingconcernreferstopresumptionthattheentitywillcontinuetooperateinthefuture--thatitisnotbeingliquidated.(3)MonetaryUnitAssumptionMonetaryunitassumptionrequiresthatallthetransactiondataofanentityshouldbemeasuredandenteredintermsofmoneyintheaccountingrecords.(4)AccountingPeriodAssumptionAccountingperiodconceptmeanstheperiodoftimeselectedforreportingresultsofoperationsandchangesinfinancialposition.15Topic3：TheAssumptionandPrincipleofAccounting2. BasicPrinciplesofAccounting(1) CostPrincipleCostprinciplerequiresthattheassetsofanentityberecordedattheiroriginalcost.(2) Accrual-basisPrincipleAccrual-basisprinciplemeansthatrevenuesandexpensesarerecognizedintheaccountingperiodinwhichtheyareearnedorincurred,eventhoughthecashreceiptorpaymentsoccursatanothertimeorinanotheraccountingperiod.(3) MatchingPrincipleMatchingprinciplerequiresthatallexpensesincurredingeneratingrevenuesduringaperiodoftimebedeductedfromtherevenueearned.(4) RealizationPrincipleRealizationprinciplespecifiesthatrevenueisrecognizedatthetimeofsale,whichhappenswhentitle(ownership)totheproductbeingsoldpassesfromthesellertothebuyerorwhentheservicesinvolvedinthetransactionhavebeenperformed.16Topic3：TheAssumptionandPrincipleofAccounting2. BasicPrinciplesofAccounting(5) FullDisclosurePrincipleFulldisclosureprinciplemeansthatthefinancialstatementsandnotesorexplanationsshouldincludeallnecessaryinformationtopreventareasonablyastuteuserofthefinancialstatementsfrombeingmisled.(6) MaterialityPrincipleMaterialityprinciplerelatestotheextenttowhichinformationcanbeomitted,misstatedorgroupedwithotherinformationwithoutmisleadingthefinancialinformationuserswhentheyaremakingtheireconomicdecisions.(7) ConservatismPrincipleConservatismprincipleinaccountingrelatestomakingjudgmentsandestimatesthatresultinginlowerprofitandassetvaluationestimatesratherthanhigherprofitandassetvaluationestimates.17Topic4:TheAccountingEquationandDouble-EntryBookkeeping1.AccountingElements(1)AssetsAssetsrefertotheresourcesincurredbythepasttransactions,whichareownedorcontrolledbytheenterprisesandareexpectedtobringeconomicreturnstotheenterprises.(2)LiabilityLiabilityreferstothefinancialobligationsenteredinthebalancesheetofabusinessenterprise.(3)TheOwner’sEquityTheowner’sequityreferstotheeconomicintereststhattheownerisblessedwith

intheenterpriseassets,itistheamountofassetsminusliabilities.18Topic3：TheAssumptionandPrincipleofAccounting2. BasicPrinciplesofAccounting(5) FullDisclosurePrincipleFulldisclosureprinciplemeansthatthefinancialstatementsandnotesorexplanationsshouldincludeallnecessaryinformationtopreventareasonablyastuteuserofthefinancialstatementsfrombeingmisled.(6) MaterialityPrincipleMaterialityprinciplerelatestotheextenttowhichinformationcanbeomitted,misstatedorgroupedwithotherinformationwithoutmisleadingthefinancialinformationuserswhentheyaremakingtheireconomicdecisions.(7) ConservatismPrincipleConservatismprincipleinaccountingrelatestomakingjudgmentsandestimatesthatresultinginlowerprofitandassetvaluationestimatesratherthanhigherprofitandassetvaluationestimates.19Topic4:TheAccountingEquationandDouble-EntryBookkeeping1.AccountingElements(1)AssetsAssetsrefertotheresourcesincurredbythepasttransactions,whichareownedorcontrolledbytheenterprisesandareexpectedtobringeconomicreturnstotheenterprises.(2)LiabilityLiabilityreferstothefinancialobligationsenteredinthebalancesheetofabusinessenterprise.(3)TheOwner’sEquityTheowner’sequityreferstotheeconomicintereststhattheownerisblessedwith

intheenterpriseassets,itistheamountofassetsminusliabilities.20Topic4:TheAccountingEquationandDouble-EntryBookkeeping1.AccountingElements(4)RevenueRevenuereferstothetotalinflowofeconomicinterestwhensellingproducts,providinglaborservices,andtransferringassets.(5)ExpenseExpensereferstotheinterestoutflowofsale,provisionofservicesandotherdailyactivities.(6)ProfitProfitreferstooperatingresultsofenterprisesinacertainaccountingperiod,includingtheoperatingprofitplusotherbusinessprofits,minusoperatingexpenses,managementexpensesandtheamountoffinancialexpenses.21Topic4:TheAccountingEquationandDouble-EntryBookkeeping2.AccountingEquationAssets=Liability+Owner’sEquity

Accordingtotheincomestatement,welearnedtherelationshipbetweenrevenueandexpenses:NetIncome(NetLoss)=Revenues-Expenses

Nextnetincomeornetlosswillbeclosedtoowner’sequity.Andwecanhavethefollowingpresentationofaccountingequation.Assets=Liability+[Owner’sEquity+(Revenues-Expenses)]22Topic4:TheAccountingEquationandDouble-EntryBookkeeping3.EffectsofBusinessTransactionsuponthe

AccountingEquationAnybusinesseventthatalterstheamountofassets,liabilitiesorowner’sequityorthataffectstheaccountingequationiscalledatransaction.Hereweuseexample1-1toillustratetheeffectsofbusinesstransactions.23Topic4:TheAccountingEquationandDouble-EntryBookkeepingExample1-1

weassumethatduringthemonthofJanuary,2016,Scarlett’sBarhadsometransactions：Transaction1:Scarlettstartedherbusinessanddeposited$l4,000intoabankaccountopenedspeciallyforherbusinessScarlett’sBarTransaction2:Boughtequipmentlikerefrigerators,tablesandchairs,etc.for$8,500Transaction3:Boughtsuppliessuchastablewarefor$2,000Transaction4:Boughtbeverages,etc.for$7,500onaccountTransaction5:Borrowed$5,000fromthebankforadurationof3monthsTransaction6:Paid$5,000owedoninventoryTransaction7:Paidelectricityandwaterbillsforthemonth$245Nowlet’sseehowtheaccountantmakesameaningfulrecordoftheseriesoftransactions,reconcilingstepbystepwiththeaccountingequation.24Topic4:TheAccountingEquationandDouble-EntryBookkeeping2.AccountingEquationTransaction1:Scarlettstartedherbusinessanddeposited$14,000intoabankaccountTherearetwoaccountsthatareaffected：theassetsCashisincreased,andthecapitalofthefirmisincreasedbythesameamount.CapitalCisusedin“Cash”and“Capital”tomeanthetitlesofaccounts.)Assets=Liabilities+Owner’sEquityCash=+Scarlett’sCapital1.+$14,000=+$14,00025Topic4:TheAccountingEquationandDouble-EntryBookkeeping2.AccountingEquationTransaction2:Boughtequipmentlikerefrigerators,tablesandchairs,etc.for$8,500.HereScarlettissubstitutingoneasset(cash)foranotherasset(equipment).Sheisreceiving(+)theassetEquipmentandpayingout(-)theassetCash.Notethatthecapitalof$14,000remainsunchanged.26Topic4:TheAccountingEquationandDouble-EntryBookkeeping2.AccountingEquationTransaction3:Boughtsuppliessuchastablewarefor$2,000.

Inthiscase,ScarlettagainsubstitutesoneassetCashforanotherassetSupplies(TablewareiscurrentassetswhichisgroupedunderthetitleSupplies).ShereceivesSupplies(+)andpaysoutCash(-).27Topic4:TheAccountingEquationandDouble-EntryBookkeeping2.AccountingEquationTransaction4:Boughtbeverages,etc.for$7,500onaccount.Inthistransaction,bothsidesoftheaccountingequationareaffected:increaseontheleftsideAssets(+)andincreaseontherightsideLiabilities(+)bythesameamount.Sotheaccountingequationisstillinbalance.ForScarlett’sBarsuchgoodsasbeverages,pastry,refreshment,etc.aregroupedunderthetitleInventories.ShethereforeisreceivingtheassetInventoriesbutisnotpayingforitwiththeassetCash.Instead,shewillowethemoney.ThusshecreatestheliabilityAccountsPayablesbecausesheowesthatmuch.28Topic4:TheAccountingEquationandDouble-EntryBookkeepingTransaction5:Borrowed$5,000fromthebankforadurationof3months.LikecreatingAccountsPayabletopurchaseanasset,bothsidesoftheaccountingequationincreasebythesmeamount,butthebalancingconditionisnotimpaired.Inthiscase,ScarlettisreceivingCash(+)andcreatingacurrentliabilityShort-termBorrowings(+).29Topic4:TheAccountingEquationandDouble-EntryBookkeeping

Transaction6:Paid$5,000owedoninventoryThistransactionreducedScarlett’sassetCashsincesheispayingoutmoneyby$5,000(-).ShealsoreducedherliabilityAccountspayable,by$5,000(-).Nowsheowesthatmuchless.30Topic4:TheAccountingEquationandDouble-EntryBookkeeping

Transaction7:Paidelectricityandwaterbillsforthemonth$245.ElectricityandwaterbillsconstituteUtilitiesExpenses.ThistransactionmeansadeductionfromCash.IncurrenceofexpensemeansadeductionofCapital.31Topic4:TheAccountingEquationandDouble-EntryBookkeepingInconclusion,accountingworksasitsatisfiesthat:Everytransactionaffectsatleasttwoitemsintheaccountingequation.Thinkofatransactionasanyeconomiceventthatcausesachangeaassets,liabilities,orowner’sequity.Theaccountingequationremainsinbalanceaftereachtransaction.Revenuesandownerinvestmentsincreaseowner’sequity.Expensesandownerwithdrawalsdecreaseowner’sequity.Therefore,owner’sequityisdirectlyaffectedbyrevenues,expenses,investments,andwithdrawals.32Topic4:TheAccountingEquationandDouble-EntryBookkeepingDouble-EntryBookkeepingPreparationoffinancialstatementsrequiresthatinformationaboutanorganization’seconomiceventsbecapturedandrecordedinarationalandsystematicmanner.Thefundamentalruleofdouble-entrybookkeepingisthatdebitsmustequalcredits.33Topic4:TheAccountingEquationandDouble-EntryBookkeepingDebitsandCreditsDebitsandcreditsareaccountingtermswithspecializedmeanings.Essentially,thetermdebitandcreditmeansleftandrightrespectively.AT-accountisusedtoillustratetheuseofdebitsandcredits.34Topic4:TheAccountingEquationandDouble-EntryBookkeepingThenormalbalanceofeachaccountisonthesidewhereincreasesarerecorded.Thus,assetsandexpensesnormallyhavedebitbalance;liabilities,equity,andrevenuestypicallyhavecreditbalances.Exhibit1-2summarizesthedebit/creditrelationshipsofaccounts.35

AssetsLiabilityEquityRevenuesExpensesIncreasesDebitsCreditsCreditsCreditsDebitsDecreaseCreditsDebitsDebitsDebitsCreditsNormalbalanceDebitsCreditsCreditsCreditsDebitsExhibit1-2DebitandCreditRelationshipsofAccounts案例思考企业并购，不分析财务报表行不行？

2010年上半年，国内市场发生了一个这样的并购案：上市公司A收购非上市公司B的控股权。B公司的基本财务数据是：净资产总额1.2亿元，2009年度的净利润为0.3亿元。A公司聘请的资产评估师对B公司评估的结果是：成本法评估的净资产价值为1.6亿元，收益法评估的净资产价值为3亿元。而最终双方股东确定的B公司净资产的价值为3.6亿元。在这个案例中，出现了几个与财务报表、企业价值评估等有关的术语，如净资产、净利润、成本法、收益法等。思考：1.购买企业，是购买的总资产还是净资产？其价格确定应考虑哪些因素？2.如果让你参与购买谈判，你应该关注企业财务报表的哪些项目？36本章结束37Chapter2AccountingCycle38LearningObjectivesUnderstandthebasicsofaccountingcycleExplaintheprincipleofjournalingandpostingprocessBefamiliarwithpreparingatrailbalanceApplytheadjustingproceduresApplytheclosingprocess39MiniCaseJohnisanewinternshipinthefinancedepartmentofacompany,hehastodealwithvariousbusinesstransactionsinhisdailywork.HereisaconversationbetweenJohnandhistutor,Gary.Gary:“Howareyougettingonwithyourwork,John?”John:“Notbad,sir.ButIhaveaquestionabouttheaccountingjournals.Youknowthatnowweareinthecomputerworld,onecomputerdatabaseisenoughforallreportingpurpose,suchasaccounting,marketing,andproduction.It’sobviousthataccountantscanpreparefinancialreportsupontheinformationdirectlyabstractedfromdatabase.Butnowwearestillusingthetraditionalaccountingjournalstorecordbusinessevents.I’mwonderingisitstillnecessaryforus?”Discuss:IfyouwereGary,howwillyouanswerJohn’squestion?40ContentTopic1:BasicsofAccountingCycleTopic2:JournalsandLedgersTopic3:TheTrailBalanceTopic4:AdjustingProcedures41Topic1:BasicsofAccountingCycleTheaccountingcycleincludestandardizedproceduresthatareperformedinsequenceduringeveryaccountingperiod.Thesequenceofaccountingproceduresusedtorecord,classify,andsummarizeaccountinginformationisoftentermedtheaccountingcycle.42Topic1:BasicsofAccountingCycleAccountingcyclecanbedividedintothefollowingsteps：1.Journalizetransactions.2.Posttoledgeraccounts.3.Prepareatrialbalance.4.Makeend-of-periodadjustments.5.Prepareanadjustedtrialbalance.6.Preparefinancialstatementsandappropriatedisclosures.7.Journalizeandposttheclosingentries.8.Prepareanafter-closingtrialbalance.43Topic2:JournalsandLedgersTheaccountingcycleincludestandardizedproceduresthatareperformedinsequenceduringeveryaccountingperiod.Thesequenceofaccountingproceduresusedtorecord,classify,andsummarizeaccountinginformationisoftentermedtheaccountingcycle.44Topic2:JournalsandLedgers1.JournalsInawesternaccountingsystem,theinformationabouteachbusinesstransactionisinitiallyrecordedinanaccountingrecordcalledaJournal.Theinformationabouteachtransactionthatshouldberecordedinthejournalisthedateofthetransaction,thedebitandcreditchangesinspecificledgeraccounts,andabriefexplanationofthetransaction.45Topic2:JournalsandLedgers(1)AdvantagesofusingjournalsThejournalshowsallinformationaboutatransactioninoneplaceandalsoprovidesanexplanationofthetransaction.Thejournalprovidesachronologicalrecordofallthefinancialeventsinthelifeofabusiness.Theuseofajournalhelpstopreventerrors.Iftransactionswererecordeddirectlyintheledger,itwouldbeveryeasytomakeerrorssuchasomittingthedebitorthecredit,orenteringthedebittwiceorthecredittwice.46Topic2:JournalsandLedgers(2)TypesofJournalsGeneralJournalsIthasonlytwomoneycolumns,onefordebitsandoneforcredit;itmaybeusedforalltypesoftransactions.Exhibit2-2showsthestandardformatofageneraljournalentry.Exhibit2-2Generaljournalentry47JournalPage1DateAccountstitlesandexplanationPost.Ref.DebitCredit

Topic2:JournalsandLedgersSpecialJournalsInthemodernworld,abusinessofanysizeentersintosomanytransactionsthattheuseofasinglejournalwouldimposeintolerablerestrictionsonitsabilitytomaintainadequaterecords.Itis,therefore,usualtobreakdownorsubdividethejournalintoanumberofspecializedjournals,eachbeingusedtorecordtransactionsofcertainkind.Itismuchsimplerandmoreefficienttogrouptogetherthosetransactionswhicharerepetitivesuchassales,purchases,cashreceiptsandcashpaymentsandplaceeachoftheminaspecialjournal.48Topic2:JournalsandLedgers2. LedgersThecompletesetofaccountsforabusinessentityiscalledaledger.Itisthe“referencebook’’oftheaccountingsystemandisusedtoclassifyandsummarizetransactionsandtopreparedataforfinancialstatements.Therearetwotypesofledgers—generalledgerandsubsidiaryledger.49Topic2:JournalsandLedgers2. Ledgers(1)GeneralLedgerAgeneralledgercontainsaspecificaccountforeachitemlistedonthefinancialstatementsandshowshoweachtransactionchangesthebalancesoftheseaccounts.Acompany’ssizeanddiversityofoperationsaffectthenumberofaccountsneeded.Asmallcompanycangetbywithasfewas20or30accounts;alargecompanycanrequireseveralthousand.Exhibit2-3showsapartialchartofaccountsforasmallcompany.50Topic2:JournalsandLedgersAccountNumberAccountName101Cash106Accountsreceivable126Supplies128Prepaidinsurance167Equipment201Accountspayable236Unearnedrevenue307CommonStock319Dividends403Feesrevenue406Rentalrevenue622Salariesexpense637Insuranceexpense640Rentexpense652Suppliesexpense690Utilitiesexpense51Exhibit2-3ChartsofAccountsTopic2:JournalsandLedgers(2)SubsidiaryLedgersFurthersimplificationofthegeneralledgerisbroughtaboutbytheuseofsubsidiaryledger.Transactionsarefirstrecordedinthejournal,andatspecifiedintervalsthesametransactionsarerecordedinboththegeneraland,whenappropriate,subsidiaryledgeraccounts.Thebalancesinthegeneralledgerarethenusedtopreparefinancialstatements.52Topic2:JournalsandLedgers3. PostingTransactionsPostingistheprocessofcopyingjournalentryinformationfromthejournaltotheledger.Thepostingofjournalentrytoledgerisperformedinthefollowingsteps:(1)Recordthedateandtheamountoftheentryintheaccount.(2)InsertthenumberofthejournalpageinthePostingReferencecolumnoftheaccount.(3)InserttheledgeraccountnumberinthePostingReferencecolumnofthejournal.53Topic3：TheTrailBalanceTheequalityofdebitsandcreditsintheledgeristestedperiodicallybypreparingatrialbalance,whichliststhebalanceineachaccountafterthepostingprocesshasbeencompleted.Thetrialbalanceispreparedusingthefollowingprocedures:54Topic3：TheTrailBalance(1)Determinethebalanceofeachaccountintheledger.(2)Listeachaccountandplaceitsbalancebesideit.(3)Computethetotalofthedebitbalances.(4)Computethetotalofthecreditbalances.(5)Verifythatthesumofthedebitbalancesequalsthesumofthecreditbalances.Eachamountinthetrialbalanceissimplythefinalbalanceofeachaccountintheledger.55Topic4:AdjustingProcedures1.TheneedforadjustmentsForpurposesofmeasuringincomeandpreparingfinancialstatements,the1ifeofabusinessisdividedintoaseriesofaccountingperiods.Butsometransactionsaffectedtherevenueorexpensesofmorethanoneperiod.Therefore,adjustingentriesareneededwhenevertransactionsaffecttherevenuesorexpensesofmorethanoneaccountingperiod.56Topic4:AdjustingProcedures2.AdjustingtheAccountsAdjustingentriescanbedividedintodeferralsandaccruals.Eachadjustmentaffectsboththebalancesheetandincomestatement.Theadjustmentscanbefurtherdividedintofivecategories:prepaidexpenses,depreciation,unearnedrevenues,accruedexpenses,andaccruedrevenues.57Topic4:AdjustingProcedures1.TheneedforadjustmentsForpurposesofmeasuringincomeandpreparingfinancialstatements,the1ifeofabusinessisdividedintoaseriesofaccountingperiods.Butsometransactionsaffectedtherevenueorexpensesofmorethanoneperiod.Therefore,adjustingentriesareneededwhenevertransactionsaffecttherevenuesorexpensesofmorethanoneaccountingperiod.58Topic4:AdjustingProcedures(1)PrepaidExpensesAprepaidexpenseisaneconomicbenefitthathasbeenpaidforinadvanceofitsuse.Itrequiresadjustmentbecausethecashispaidinoneperiod,buttheresourceisnotcompletelyuseduntilalaterperiod.Therearetwomethodstoadjustprepaidexpenses.59Topic4:AdjustingProceduresAssetmethod.Ifprepaymentsareinitiallyrecordedasassets,theywillbeincorrectlystatedduringtheaccountingperiodastheyareconsumed.Thismustbeadjustedattheendoftheaccountingperiodtoreflecttheamountused.Partoft