(本科）会计专业英语chapter 3教学课件.pptx

Chapter 3 Assets1Learning ObjectivespExplainthenatureofcurrentassetsandnon-currentassetspUnderstandinternalcontrolovercashpComputecostofgoodssoldandendinginventorybyusingdifferentmethodspUnderstandthedepreciationprocessofplantassetspAccountforthedisposalofplantassetspUnderstandmeasurementandreportoflong-terminvestment2Mini CaseThefollowingisanexcerptfromaconversationbetweenJohn,thewarehousemanagerforLeoWholesaleCo.,anditsaccountant,Mike.LeoWholesaleoperatesalargeregionalwarehousethatsuppliesproduceandothergroceryproductstogrocerystoresinsmallercommunities.John:Mike,canyouexplainwhatsgoingonherewiththesemonthlystatements?Mike:Sure,john.HowcanIhelpyou?John:Idontunderstandthislast-in,first-outinventoryprocedure.Itjustdoesntmakesense.Mike:Well,whatitmeansisthatweassumethatthelastgoodswereceivearethefirstonessold.Sotheinventoryismadeupoftheitemswepurchasedfirst.John:Yes,butthatsmyproblem.Itdoesntworkthatway!Wealwaysdistributetheoldestproducefirst.Someofthatproduceisperishable!WecantkeepanyofitverylongoritllspoilMike:John,youdontunderstand.Weonlyassumethattheproductswedistributearethelastonesreceived.Wedontactuallyhavetodistributethegoodsinthisway.John:Ialwaysthoughtthataccountingwassupposedtoshowwhatreallyhappened,itallsoundslike“makebelieve”tome!Whynotreportwhatreallyhappens?Identify:(1)WhatswrongwithJohnsunderstandingtolast-in,first-outinventoryprocedure?(2)HowdoyourespondtoJohnifyouwereMike?Outline of The ChapterpTopic1:CurrentassetspTopic2:Non-CurrentAssets4Topic 1:Current assetsp1.CashDefinitionCash includes currency and coins,balance in checkingaccounts,anditemsacceptablefordepositintheseaccounts,suchaschecksandmoneyordersreceivedfromcustomers.InternalControlIfacashshortagearisesinabusinessinwhichinternalcontrols are weak or nonexistent,every employee is undersuspicion.Perhapsnooneemployeecanbeprovedguiltyofthe theft,but neither can any employee prove his or herinnocence.5Topic 1:Current assetsBankReconciliationBank reconciliation is a schedule explaining anydifferencebetweenthebalanceshowninthebankstatementandthebalanceshowninthedepositorsaccountingrecords.Differences between bank statement and accountingrecords(1)Outstandingchecks.Checksissuedandrecordedbythecompanybutnotyetpresentedtothebankforpayment.(2)Deposits in transit.Cash receipts recorded by thedepositorbutwhichreachedthebanktoolatetobeincludedinthebankstatementforthecurrentmonth.6Topic 1:Current assetsp2.Trading SecuritiesDefinitionTrading securities consist of surplus cash invested ingovernmentorcorporatedebtobligations,orinshares(equitysecurities)thatcanbereadilysold(marketable)andateheldas a source of mature or be sold within the next year oroperatingperiodtobeclassifiedascurrentassets.TheAccountingofTradingSecuritiesAccountingfortradingsecuritiesissimilartothatofotherassets.7Topic 1:Current assetsp3.Accounts ReceivablesDefinitionAreceivableisanamountduefromanotherparty.Thetwomostcommonreceivablesareaccountsreceivableandnotesreceivable.Otherreceivableincludesinterestreceivable,rentreceivable,taxrefundreceivablefromemployees.TheAccountingofTradingSecuritiesMakingAllowanceforDoubtfulAccountsEstimatingtheAmountofUncollectibleAccountsWritingOffUncollectibleAccountReceivablRecoveryofAccountReceivablePreviouslyWrittenOffMonthlyEstimatesofCreditLosses8Topic 1:Current assetsp4.InventoriesDefinitionInventoryisdefinedasthemerchandiseonhandattheendoftheaccountingperiodrepresentinggoodsthatwilleventuallybesoldtocustomers.Allcostsassociatedwithmanufacture,acquisition,storage,orpreparationofinventoryitemsshouldbecapitalizedandincludedintheinventoryaccount.TheAccountingofTradingSecuritiesCarryingInventoryPricingfortheInventoryEstimatingInventories9Topic 1:Current assetsp4.InventoriesThegrossprofitmethodthegrossprofitandthecostofgoodssoldTheretailmethodOneofthemajoradvantagesoftheretailmethodisthat it provides inventory figures for use in preparinginterimstatements.10Topic 2:Non-Current Assets p1.Plant AssetsDefinitionAplantassetisanassetwithausefullifeofmorethanoneyearthatisusedinproducingrevenuesinabusinesssoperations.ClassificationTangibleplantassets.Thetermtangibledenotesphysicalsubstance,as exemplified by land,a building,or amachine.Intangibleassets.Thetermintangibleassetsareusedtodescribe assets which are used in the operation of thebusinessbutnophysicalsubstance,andarenoncurrent.11Topic 2:Non-Current Assets p1.Plant AssetsTheaccountsofplantassetsAcquisitionofplantassetsThecostofaplantassetincludesallexpendituresthatarereasonableandnecessaryforgettingtheassettothedesiredlocationandreadyforuse.DepreciationAccountfordepreciation.Methodsofcomputingdepreciation.DisposalWhen depreciable assets are disposed at any dateotherthantheendoftheyear,anentryshouldbemadetorecorddepreciationforthefractionoftheyearendingwiththedateofdisposal.12Topic 2:Non-Current Assets p2.Intangible AssetsDefinitionAn intangible asset,like any other asset,has valuebecauseofcertainrightsandprivilegesconferredbylawupontheowneroftheasset.TheAccountingofIntangibleAssetsAtacquisition,anintangibleassetisrecordedatitscashequivalentcostinaccordancewiththecostprinciple.Costisdefinedasthesumofallexpendituresmadetoacquiretherightsandprivileges.Each type of intangible asset should be recorded in aseparateassetaccountwhenacquired.13Topic 2:Non-Current Assets p3.Long-term InvestmentDefinitionInvestmentsthatarenotintendedasareadysourceofcash in the normal operations business are as long-terminvestments.TheAccountingofLong-TermInvestmentMeasuringandReportingInvestmentsinCommonSharesCostmethodEquitymethodMeasuringandReportingBondInvestments14The End15