财务会计(英文版·原书第5版)ch01bwzf.pptx
Chapter 1-1Yu-wan Huang Yu-wan Huang 黄玉婉黄玉婉Location:School of Economics,Technology Location:School of Economics,Technology building,level 6,room 605.building,level 6,room 605.科技楼科技楼605605室室Course CoordinatorChapter 1-2TEACHING AND LEARNING ARRANGEMENTSl lLectures:Lectures:l lDiscussionDiscussion of main body knowledge presented in textbook.of main body knowledge presented in textbook.l la course review/examination preparation session will be held a course review/examination preparation session will be held in week 16.in week 16.l lTutorials:Tutorials:l lDiscussionDiscussion of the review questions and problems.of the review questions and problems.Chapter 1-3Required Resourcesl lTextbookTextbookl lFinancialFinancial CalculatorCalculator：Strongly recommended!Strongly recommended!Chapter 1-4Assessment Summaryl lClass participation Class participation l lTutorialTutorial questionsquestionsl lMid-testMid-testl lAssignmentAssignment l lFinalFinal examexamChapter 1-5Chapter 1-6Accounting In ActionFinancial Accounting,Sixth EditionChapter 1Chapter 1-71.1.Explain what accounting is.Explain what accounting is.2.2.Identify the users and uses of accounting.Identify the users and uses of accounting.3.3.Understand why ethics is a fundamental business concept.Understand why ethics is a fundamental business concept.4.4.Explain generally accepted accounting principles and the Explain generally accepted accounting principles and the cost principle.cost principle.5.5.Explain the monetary unit assumption and the economic Explain the monetary unit assumption and the economic entity assumption.entity assumption.6.6.State the accounting equation,and define assets,liabilities,State the accounting equation,and define assets,liabilities,and stockholdersand stockholders equity.equity.7.7.Analyze the effects of business transactions on the Analyze the effects of business transactions on the accounting equation.accounting equation.8.8.Understand the four financial statements and how they are Understand the four financial statements and how they are prepared.prepared.Study ObjectivesChapter 1-8Accounting in ActionEthics in Ethics in financial financial reportingreportingGenerally Generally accepted accepted accounting accounting principlesprinciplesAssumptionsAssumptionsWhat is What is Accounting?Accounting?The Building The Building Blocks of Blocks of AccountingAccountingThe Basic The Basic Accounting Accounting EquationEquationUsing the Using the Basic Basic Accounting Accounting EquationEquationFinancial Financial StatementsStatementsThree Three activitiesactivitiesWho uses Who uses accounting accounting datadataAssetsAssetsLiabilitiesLiabilitiesStockholders Stockholders equityequityTransaction Transaction analysisanalysisSummary of Summary of transactionstransactionsIncome Income statementstatementStatement of Statement of retained retained earningsearningsBalance Balance sheetsheetStatement of Statement of cash flowscash flowsChapter 1-9What is Accounting?SO 1 Explain what accounting is.SO 1 Explain what accounting is.The purpose of accounting is to:(1)(1)identifyidentify,recordrecord,and communicatecommunicate the economic events of an(2)organization to(3)interested users.Chapter 1-10Three ActivitiesWhat is Accounting?SO 1 Explain what accounting is.SO 1 Explain what accounting is.Illustration 1-1Accounting processThe accounting process includes the bookkeeping function.Chapter 1-11ManagementCommon QuestionsHuman ResourcesIRSLabor UnionsSECMarketingFinanceInvestorsCreditorsWho Uses Accounting Data?SO 2 Identify the users and uses of accounting.SO 2 Identify the users and uses of accounting.CustomersInternal UsersExternal UsersChapter 1-12Common Questions AskedCommon Questions AskedUser1.Can we afford to give our employees a pay raise?Human Resources2.Did the company earn a satisfactory income?3.Should any product lines be eliminated?4.Is cash sufficient to pay dividends to the stockholders?5.What price for our product will maximize net income?Who Uses Accounting Data?SO 2 Identify the users and uses of accounting.SO 2 Identify the users and uses of accounting.6.Will the company be able to pay its short-term debts?InvestorsManagementFinanceMarketingCreditorsChapter 1-13Discussion QuestionSO 3 Understand why ethics is a fundamental business conceptSO 3 Understand why ethics is a fundamental business concept.Q1.“Accounting is ingrained in our society and it is vital to our economic system.”Do you agree?Explain.See notes page for discussionWho Uses Accounting Data?Chapter 1-14The Building Blocks of AccountingEthics In Financial ReportingSO 3 Understand why ethics is a fundamental business conceptSO 3 Understand why ethics is a fundamental business concept.Standards of conduct by which ones actions are judged as right or wrong,honest or dishonest,fair or not fair,are Ethics.Recent financial scandals include:Enron,WorldCom,HealthSouth,AIG,and others.Congress passed Sarbanes-Oxley Act of 2002.Effective financial reporting depends on sound ethical behavior.Chapter 1-15Ethics are the standards of conduct by which ones actions are judged as:a.right or wrong.b.honest or dishonest.c.fair or not fair.d.all of these options.Review QuestionEthicsSO 3 Understand why ethics is a fundamental business conceptSO 3 Understand why ethics is a fundamental business concept.Chapter 1-16Various users need financial informationThe accounting profession has attempted to develop a set of standards that are generally accepted and universally practiced.Financial StatementsBalance SheetIncome StatementRetained Earnings StatementStatement of Cash FlowsNote DisclosureGenerally Accepted Generally Accepted Accounting Accounting Principles(GAAP)Principles(GAAP)The Building Blocks of AccountingSO 4 Explain generally accepted accounting principles and the cost principle.SO 4 Explain generally accepted accounting principles and the cost principle.Chapter 1-17Organizations Involved in Standard Setting:Securities and Exchange Commission(SEC)Financial Accounting Standards Board(FASB)International Accounting Standards Board(IASB)SO 4 Explain generally accepted accounting principles and the cost principle.SO 4 Explain generally accepted accounting principles and the cost principle.The Building Blocks of Accountinghttp:/www.iasb.org/Chapter 1-18Cost Principle(Historical)dictates that companies record assets at their cost.Issues:Reported at cost when purchased and also over the time the asset is held.Cost easily verified,whereas market value is often subjective.Fair value information may be more useful.The Building Blocks of AccountingSO 4 Explain generally accepted accounting principles and the cost principle.SO 4 Explain generally accepted accounting principles and the cost principle.Chapter 1-19Monetary Unit Assumption include in the accounting records only transaction data that can be expressed in terms of money.Economic Entity Assumption requires that activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities.Proprietorship.Partnership.Corporation.AssumptionsSO 5 Explain the monetary unit assumption SO 5 Explain the monetary unit assumption and the economic entity assumption.and the economic entity assumption.Forms of Business OwnershipChapter 1-20ProprietorshipPartnershipCorporationOwned by two or Owned by two or more persons.more persons.Often retail and Often retail and service-type service-type businessesbusinessesGenerally Generally unlimited unlimited personal liabilitypersonal liabilityPartnership Partnership agreementagreementOwnership Ownership divided into divided into shares of stockshares of stockSeparate legal Separate legal entity organized entity organized under state under state corporation lawcorporation lawLimited liabilityLimited liabilityForms of Business OwnershipGenerally owned Generally owned by one person.by one person.Often small Often small service-type service-type businessesbusinessesOwner receives Owner receives any profits,any profits,suffers any suffers any losses,and is losses,and is personally liable personally liable for all debts.for all debts.SO 5 Explain the monetary unit assumption SO 5 Explain the monetary unit assumption and the economic entity assumption.and the economic entity assumption.Chapter 1-21Combining the activities of Kellogg and General Mills would violate the a.cost principle.b.economic entity assumption.c.monetary unit assumption.d.ethics principle.AssumptionsSO 5 Explain the monetary unit assumption SO 5 Explain the monetary unit assumption and the economic entity assumption.and the economic entity assumption.Review QuestionChapter 1-22A business organized as a separate legal entity under state law having ownership divided into shares of stock is a a.proprietorship.b.partnership.c.corporation.d.sole proprietorship.SO 5 Explain the monetary unit assumption SO 5 Explain the monetary unit assumption and the economic entity assumption.and the economic entity assumption.Forms of Business OwnershipReview QuestionChapter 1-23AssetsAssetsLiabilitiesLiabilitiesStockholdersStockholders EquityEquity=+Provides the underlying framework for recording and summarizing economic events.Assets are claimed by either creditors or owners.Claims of creditors must be paid before ownership claims.The Basic Accounting EquationSO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-24Provides the underlying framework for recording and summarizing economic events.The Basic Accounting EquationResources a business owns.Provide future services or benefits.Cash,Supplies,Equipment,etc.AssetsAssetsAssetsAssetsLiabilitiesLiabilitiesStockholdersStockholders EquityEquity=+SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-25Provides the underlying framework for recording and summarizing economic events.The Basic Accounting EquationClaims against assets(debts and obligations).Creditors-party to whom money is owed.Accounts payable,Notes payable,etc.LiabilitiesLiabilitiesAssetsAssetsLiabilitiesLiabilitiesStockholdersStockholders EquityEquity=+SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-26Provides the underlying framework for recording and summarizing economic events.The Basic Accounting EquationOwnership claim on total assets.Referred to as residual equity.Paid-in Capital,Retained Earnings(Corporation).StockholdersStockholders Equity EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersStockholders EquityEquity=+SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-27Stockholders EquityRevenues result from business activities entered into for the purpose of earning income.Common sources of revenue are:sales,fees,services,commissions,interest,dividends,royalties,and rent.Illustration 1-6SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-28Expenses are the cost of assets consumed or services used in the process of earning revenue.Common expenses are:salaries expense,rent expense,utilities expense,tax expense,etc.Stockholders EquityIllustration 1-6SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-29Dividends are the distribution of cash or other assets to stockholders.Dividends reduce retained earnings,however dividends are not an expense.Stockholders EquityIllustration 1-6SO 6 SO 6 State the accounting equation,and define State the accounting equation,and define assets,liabilities,and stockholdersassets,liabilities,and stockholders equity.equity.Chapter 1-30Using The Basic Accounting EquationTransactions are a businesss economic events recorded by accountants.May be external or internal.Not all activities represent transactions.Each transaction has a dual effect on the accounting equation.SO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.Chapter 1-31Question:Question:Are the following events recorded in the accounting records?EventSupplies are purchased on account.CriterionIs the financial position(assets,liabilities,or stockholders equity)of the company changed?SO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.An employee is hired.Dividends are paid to stockholders.Record/Dont RecordTransactionsChapter 1-32Discussion QuestionQ18.In February 2008,Paula King invested an additional$10,000 in Hardy Company.Hardys accountant,Lance Jones,recorded this receipt as an increase in cash and revenues.Is this treatment appropriate?Why or why not?See notes page for discussionTransactionsSO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.Chapter 1-33Stockholders EquityP1-1A:P1-1A:Barones Repair Shop was started on May.Prepare a tabular analysis of the following transactions for the month of May.Transactions(Problem)+10,0001.+10,000CashAccounts ReceivableEquipmentAccounts PayableCommon StockSO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.+=+1.Stockholders invested$10,000 cash to start the repair shop.InvestmentAssetsLiabilitiesChapter 1-34Transactions(Problem)+10,0001.+10,000SO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.2.Purchased equipment for$5,000 cash.-5,0002.+5,000InvestmentStockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesChapter 1-35Transactions(Problem)+10,0001.+10,000SO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.3.Paid$400 cash for May office rent.-5,0002.+5,000-4003.-400Stockholders EquityCashAccounts ReceivableEquipmentAccounts PayableCommon Stock+=+AssetsLiabilitiesRetained EarningsExpense+Chapter 1-36Transactions(Problem)+10,0001.+10,000SO 7 SO 7 Analyze the effects of business transactions Analyze the effects of business transactions on the accounting equation.on the accounting equation.-5,0002.+5,000-4003.-400Stockholders EquityCashAc
