1、ACCOUNTING ENGLISHYe Jianfang & Sun Hongxing會計英語（第四版）財大出版社 Ye and Sun Accounting English 1Ye and Sun Accounting English 2Lesson 1An Introduction to AccountingAccountinginformationThe accounting processDecision makersEconomic activitiesActions (decisions)Accounting thinks decision makers with economi

2、c activities and with the results of their decisions.1.1 Accounting is an information systemYe and Sun Accounting English 31.2 Forms of organization Sole proprietorship 獨資Owned by one person.Owner is personally responsible for business debts.Partnership 合伙Owned by two or more persons. Partners are p

3、ersonally responsible for all partnership debts.Corporation 公司Owned by shares of stock.A corporation is a separate legal entity.It is responsible for its own debts.Ye and Sun Accounting English 41.3 Framework for Preparation and presentation of financial statementsIASC since 1973IASB since 2001There

4、 is a growing trend to adopt accounting standards that are in harmony with international accounting standards.Ye and Sun Accounting English 5Ye and Sun Accounting English 6Some accounting concepts and principles:business entity 商業主體objectivity 客觀cost principle 成本原則going-concern 持續經營monetary unit 貨幣計

5、量time period 會計期間revenue recognition or realization principle 收入實現matching principle 配比full-disclosure principle 充分披露consistency principle 一貫一致materiality principle 重要conservatism principle 穩健 謹慎 審慎Ye and Sun Accounting English 71.4 Understanding financial statementsThe statement of comprehensive e

6、( e statement) summarizes financial performance resulting from e (revenue and gains) less expenses (including losses). 利潤表The statement of changes in equity reconciles changes in equity (increases are caused by owner investments and net e, while decreases result from owner withdrawals/dividends and

7、net losses.The statement of financial position (balance sheet) details assets, liabilities, and equity. 資產負債表The statement of cash flows shows the cash inflows and outflows from operating activities, investing activities, and financing activities.現金流量表Users of accounting information investors and cr

8、editors etc. Ye and Sun Accounting English 81.4 Understanding financial statementsThe e statement summarizes net profit (or net loss) resulting from revenues less expenses.The statement of owners equity reconciles changes in owners equity (increases are caused by owner investments and net profit, wh

9、ile decreases result from owner withdrawals and net losses).The balance sheet details assets, liabilities, and equity.The statement of cash flows shows the cash inflows and outflows from operating, investing and financing activities.Users of accounting information investors and creditors etc. Ye and

10、 Sun Accounting English 9 1.5 Accounting and its professionThere are three basic types of accountants:Private accountants work for a single employer.Public accountants are available to the public.Government accountants work for local, provincial, and federal government agencies.Ye and Sun Accounting

11、 English 10 Fields of accountingfinancialmanagerialtaxationaccounting-relatedYe and Sun Accounting English 111.6 Using the accounting equationBusiness transactions always affect at least two elements in the accounting equation. The accounting equation is:會計等式 Assets = Liabilities + Equity 資產 負債 權益Af

12、ter a transaction is recorded, the accounting equation must be in balance.Ye and Sun Accounting English 12Using the accounting equation(1)Recording (2)Reporting(Basic Steps of Accounting Processing)Example on textbookYe and Sun Accounting English 13An example!Stockholders Equity1: Barones Repair Sho

13、p was started on May. Prepare a tabular analysis of the following transactions for the month of May.+10,0001.+10,000CashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+1. Stockholders invested $10,000 cash to start the repair shop.InvestmentAssetsLiabilities14Ye and Sun Accounting English

14、 +10,0001.+10,0002. Purchased equipment for $5,000 cash.-5,0002.+5,000InvestmentStockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilities15Ye and Sun Accounting English +10,0001.+10,0003. Paid $400 cash for May office rent.-5,0002.+5,000-4003.-400Stockholder

15、s EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained EarningsExpense+16Ye and Sun Accounting English +10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earning

16、s+5,1004.+5,1004. Received $5,100 from customers for repair service.Revenue+17Ye and Sun Accounting English +10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,1005. Paid dividends of $

17、1,000 cash.-1,0005.-1,000+18Ye and Sun Accounting English +10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,0006. Paid part-time employee salaries of $2,000.-2,0006.-2,0

18、00Expense+19Ye and Sun Accounting English +10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Expense7. Incurred $250 of advertising costs, on account.+25

19、0-2507.+20Ye and Sun Accounting English +10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,000-2,0006.-2,000Revenue+250-2507.8. Provided repair services on account to cus

20、tomers $750.+7508.+750+21Ye and Sun Accounting English 6,820 + 630 + 5,000 = 250 + 10,000 +2,200現金 應收賬款 設備 應付賬款 股本 留存收益+10,0001.+10,000-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained Earnings+5,1004.+5,100-1,0005.-1,

21、000-2,0006.-2,000+250-2507.+7508.+7509. Collected $120 cash for services previously billed.+1209.-120+22Ye and Sun Accounting English Companies prepare four financial statements from the summarized accounting data:Balance Sheet資產負債表 e Statement利潤表Statement of Cash Flows現金流量表Retained Earnings Stateme

22、nt留存收益表23Ye and Sun Accounting English e StatementReports the revenues and expenses for a specific period of time.Net profit revenues exceed expenses.Net loss expenses exceed revenues.24Ye and Sun Accounting English e StatementRetained Earnings StatementNet profit is needed to determine the ending b

23、alance in retained earnings.25Ye and Sun Accounting English Retained Earnings StatementStatement indicates the reasons why retained earnings has increased or decreased during the period.Capital statement is used for sole proprietorships. 26Ye and Sun Accounting English Capital StatementBeginning 0Ad

24、d: investment 10,000Add : profit 3,200Less: withdrawals (1,000)Ending capital 12,200Balance SheetRetained Earnings StatementThe ending balance in retained earnings is needed in preparing the balance sheet.27Ye and Sun Accounting English Reports the assets, liabilities, and stockholders equity at a specific date.Assets listed at the top, followed by liabi