(本科）会计专业英语chapter 3教学课件.pptx

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1、Chapter 3 Assets1Learning ObjectivespExplainthenatureofcurrentassetsandnon-currentassetspUnderstandinternalcontrolovercashpComputecostofgoodssoldandendinginventorybyusingdifferentmethodspUnderstandthedepreciationprocessofplantassetspAccountforthedisposalofplantassetspUnderstandmeasurementandreportof

2、long-terminvestment2Mini CaseThefollowingisanexcerptfromaconversationbetweenJohn,thewarehousemanagerforLeoWholesaleCo.,anditsaccountant,Mike.LeoWholesaleoperatesalargeregionalwarehousethatsuppliesproduceandothergroceryproductstogrocerystoresinsmallercommunities.John:Mike,canyouexplainwhatsgoingonher

3、ewiththesemonthlystatements?Mike:Sure,john.HowcanIhelpyou?John:Idontunderstandthislast-in,first-outinventoryprocedure.Itjustdoesntmakesense.Mike:Well,whatitmeansisthatweassumethatthelastgoodswereceivearethefirstonessold.Sotheinventoryismadeupoftheitemswepurchasedfirst.John:Yes,butthatsmyproblem.Itdo

4、esntworkthatway!Wealwaysdistributetheoldestproducefirst.Someofthatproduceisperishable!WecantkeepanyofitverylongoritllspoilMike:John,youdontunderstand.Weonlyassumethattheproductswedistributearethelastonesreceived.Wedontactuallyhavetodistributethegoodsinthisway.John:Ialwaysthoughtthataccountingwassupp

5、osedtoshowwhatreallyhappened,itallsoundslike“makebelieve”tome!Whynotreportwhatreallyhappens?Identify:(1)WhatswrongwithJohnsunderstandingtolast-in,first-outinventoryprocedure?(2)HowdoyourespondtoJohnifyouwereMike?Outline of The ChapterpTopic1:CurrentassetspTopic2:Non-CurrentAssets4Topic 1:Current ass

6、etsp1.CashDefinitionCash includes currency and coins,balance in checkingaccounts,anditemsacceptablefordepositintheseaccounts,suchaschecksandmoneyordersreceivedfromcustomers.InternalControlIfacashshortagearisesinabusinessinwhichinternalcontrols are weak or nonexistent,every employee is undersuspicion

7、.Perhapsnooneemployeecanbeprovedguiltyofthe theft,but neither can any employee prove his or herinnocence.5Topic 1:Current assetsBankReconciliationBank reconciliation is a schedule explaining anydifferencebetweenthebalanceshowninthebankstatementandthebalanceshowninthedepositorsaccountingrecords.Diffe

8、rences between bank statement and accountingrecords(1)Outstandingchecks.Checksissuedandrecordedbythecompanybutnotyetpresentedtothebankforpayment.(2)Deposits in transit.Cash receipts recorded by thedepositorbutwhichreachedthebanktoolatetobeincludedinthebankstatementforthecurrentmonth.6Topic 1:Current

9、 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.

10、TheAccountingofTradingSecuritiesAccountingfortradingsecuritiesissimilartothatofotherassets.7Topic 1:Current assetsp3.Accounts ReceivablesDefinitionAreceivableisanamountduefromanotherparty.Thetwomostcommonreceivablesareaccountsreceivableandnotesreceivable.Otherreceivableincludesinterestreceivable,ren

11、treceivable,taxrefundreceivablefromemployees.TheAccountingofTradingSecuritiesMakingAllowanceforDoubtfulAccountsEstimatingtheAmountofUncollectibleAccountsWritingOffUncollectibleAccountReceivablRecoveryofAccountReceivablePreviouslyWrittenOffMonthlyEstimatesofCreditLosses8Topic 1:Current assetsp4.Inven

12、toriesDefinitionInventoryisdefinedasthemerchandiseonhandattheendoftheaccountingperiodrepresentinggoodsthatwilleventuallybesoldtocustomers.Allcostsassociatedwithmanufacture,acquisition,storage,orpreparationofinventoryitemsshouldbecapitalizedandincludedintheinventoryaccount.TheAccountingofTradingSecur

13、itiesCarryingInventoryPricingfortheInventoryEstimatingInventories9Topic 1:Current assetsp4.InventoriesThegrossprofitmethodthegrossprofitandthecostofgoodssoldTheretailmethodOneofthemajoradvantagesoftheretailmethodisthat it provides inventory figures for use in preparinginterimstatements.10Topic 2:Non

14、-Current Assets p1.Plant AssetsDefinitionAplantassetisanassetwithausefullifeofmorethanoneyearthatisusedinproducingrevenuesinabusinesssoperations.ClassificationTangibleplantassets.Thetermtangibledenotesphysicalsubstance,as exemplified by land,a building,or amachine.Intangibleassets.Thetermintangiblea

15、ssetsareusedtodescribe assets which are used in the operation of thebusinessbutnophysicalsubstance,andarenoncurrent.11Topic 2:Non-Current Assets p1.Plant AssetsTheaccountsofplantassetsAcquisitionofplantassetsThecostofaplantassetincludesallexpendituresthatarereasonableandnecessaryforgettingtheassetto

16、thedesiredlocationandreadyforuse.DepreciationAccountfordepreciation.Methodsofcomputingdepreciation.DisposalWhen depreciable assets are disposed at any dateotherthantheendoftheyear,anentryshouldbemadetorecorddepreciationforthefractionoftheyearendingwiththedateofdisposal.12Topic 2:Non-Current Assets p

17、2.Intangible AssetsDefinitionAn intangible asset,like any other asset,has valuebecauseofcertainrightsandprivilegesconferredbylawupontheowneroftheasset.TheAccountingofIntangibleAssetsAtacquisition,anintangibleassetisrecordedatitscashequivalentcostinaccordancewiththecostprinciple.Costisdefinedasthesum

18、ofallexpendituresmadetoacquiretherightsandprivileges.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