财务会计英语unit1.ppt

1、General Introduction to Financial Accounting,Unit 1,Financial Accounting English (Second Edition),Contents,Section 1 Accounting Equation and Accounting Elements,Section 2 T Account, Double-entry System, the Ledger and Chart of Accounts,Section 3 Journalizing and Posting,Section 4 Financial Statement

2、s,Section1 Accounting Equation and Accounting Elements,1.1 The accounting equation Assets = Liabilities + Owners equity,1.2 Accounting elements Asset (资产) are economic resources that are owned or controlled by a business as a result of past transactions or events and are expected to generate economi

3、c benefits to the business. Assets can be classified as current assets, fixed assets, and intangible assets.,Section1 Accounting Equation and Accounting Elements,Current assets (流动资产) are short-term assets including cash, bank deposit, accounts receivable, inventory, etc. Fixed assets (固定资产) are non

4、-current assets, including land, buildings, equipment, furniture, etc. Intangible assets (无形资产) are also non-current assets, including patents, copyrights, licenses, franchises, goodwill, etc.,Section1 Accounting Equation and Accounting Elements,Liability (负债) are debts of a business owed to supplie

5、rs, banks, etc., arising from past transactions or events which are expected to give rise to an outflow of economic benefits from the business. Liabilities are usually classified as current liabilities and non-current liabilities.,Section1 Accounting Equation and Accounting Elements,Current liabilit

6、ies (流动负债) are expected to be paid within one year. Non-current liabilities (非流动负债) may last from one year to 20 or 30 years until it is fully paid.,Owners equity (所有者权益) is the residual interest in the assets of a business after deducting all its liabilities, i.e. the net assets of a business. When

7、 a business is owned by one person, the owners equity is shown as “Capital”. When it is owned by stockholders, it is shown as “Stockholders Equity”.,Section1 Accounting Equation and Accounting Elements,Revenue (收入) is the gross inflow of economic benefits derived from the course of ordinary activiti

8、es that result in increase in owners equity, other than the increase relating to contributions from owners.,Section1 Accounting Equation and Accounting Elements,Expense (费用) are the gross outflow of economic benefits resulted from the course of ordinary activities resulting in decreases in owners eq

9、uity caused by the business revenue-producing operations, other than the decreases from distributions of profits to owners.,Section1 Accounting Equation and Accounting Elements,Profit (利润)often called net income, is also the increase in owners equity resulting from profitable operation of a business

10、 over a specific accounting period.,Section1 Accounting Equation and Accounting Elements,1.3 Accounting elements in the accounting equation,Exhibit 1-1 Accounting Elements in the Accounting Equation,Section1 Accounting Equation and Accounting Elements,Section1 Accounting Equation and Accounting Elem

11、ents,Exercises,1.1 The accounting elements include_ ,_ ,_ ,_ ,_, and _ . 1.2 Such things as cash, accounts receivables, inventory, supplies, equipment, buildings, land, etc. are included in _ . 1.3 Liabilities are _ of a business. 1.4 The net assets of a business are called _. 1.5 Cash borrowed from

12、 a bank is not _ but a liability.,asset,liability,owners equity,revenue,expense,profit,assets,owners equity,debts,revenue,1.6 Expenses are the decrease in owners equity caused by the companys _ operations. 1.7 Profit is the _ of revenue over expenses over a specific accounting period. 1.8 The accoun

13、ting equation is: _ = _ + _.,revenue-producing,excess,assets,liabilities,owners equity,Exercises,1.9 Record the following transaction in the accounting equation: Bought an automobile for $9,800, paying $3,000 cash and giving a note for the balance. Cash and Equipment Notes Payable Balance $15,000 =

14、$ 15,000 Entry _ + _ = _ + _ Balance _ + _ = _ + _ _ = _,-$3,000,$9,800,$6,800,$12,000,$9,800,$6,800,$15,000,$21,800,$21,800,0,Exercises,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,2.1 T account (丁字账户) Exhibit 1-2 T Account,2.2 Double-entry system (复式记账),Section 2T Acco

15、unt, Double-entry System, the Ledger and Chart of Accounts,Exercises,1.10 T account is so called because it resembles the letter _. 1.11 The debit is on the _ side of the vertical line. The credit is on the _ side of the account. 1.12 “Dr.” stands for _ , while “Cr.” is the abbreviation for _ . 1.13

16、 If an amount is recorded on the debit side, account is said to be _ . 1.14 Asset and expense increases are recorded as _.,T,left,right,debit,credit,debited,debits,1.15 Liability, owners equity, revenue and profit decreases are recorded as _ . 1.16 In double-entry system, the debit and credit entrie

17、s for every transaction must be _ 1.17 In each of the following T accounts, enter an increase by writing “+”and a decrease by writing “-”.,debits,equal,Exercises,+,+,+,+,+,Exercises,2.3 The ledger (总账),Example 1.1 During the month of January, 2007, Ted Lott, a lawyer (1) Invested $8,000 to open his

18、practice, Lott Law Firm. (2) Bought office supplies (stationery, forms, pencils, and so on) for cash, $700. (3) Bought several pieces of office furniture from Ferraro Furniture Co. on account, $2,000. (4) Received $3,500 in service fees earned during the month. (5) Paid office rent for January, $600

19、.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,(6) Paid salary for part-time help, $800. (7) Paid $1,600 to Ferraro Furniture Co. on account. (8) After taking inventory at the end of the month, Lott found that he had used $200 worth of supplies. (9)Withdrew$470 for perso

20、nal use. (10) Paid bank service charge $23.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,These transactions might be analyzed and recorded in the accounts as follow: Transaction 1 Invested $8,000 to open his practice.,Section 2T Account, Double-entry System, the Ledger a

21、nd Chart of Accounts,Transaction 2 Bought office supplies for cash, $700.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 3 Bought office furniture from Ferraro Furniture Co. on account, $2,000.,Section 2T Account, Double-entry System, the Ledger and Chart of Ac

22、counts,Transaction 4 Received $3,500 in service fees earned during the month.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 5 Paid office rent for January, $600.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 6 Paid salar

23、y for part-time help, $800.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 7 Paid $1,600 to Ferraro Furniture Co. on account.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 8 After taking inventory at the end of the month,

24、 Lott found that he had used $200 worth of supplies.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 9 Withdrew $470 for personal use.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Transaction 10 Paid bank service charge $23.,Section

25、2T Account, Double-entry System, the Ledger and Chart of Accounts, 2.4 Chart of accounts (会计科目表),Exhibit 1-4 Chart of Accounts with Two Kinds of Three-digital Code Systems.,Section 2T Account, Double-entry System, the Ledger and Chart of Accounts,Exercises,1.18 Asset account numbers begin with the number _ , whereas liabilities begin with _ . 1.19 Owners equity account numbers begin with the number _