財務(wù)會計assets-liabilities-and-equity

1、整理ppt1Module 2: Business Elements and Transactions OBJECTIVESDefine assets, liabilities and owners equity and understand the relationship of revenues and expenses to owners equityDescribe the accounting concepts and terms that help record the activities of a businessUnderstand that the accounting eq

2、uation provides the basis for recording business transactionsDescribe and understand the nature of business transactions and their effect on the accounting equation.Define and understand all the steps in the complete accounting cycle.Explain the rules of debit and credit and how to apply these rules

3、 in analysing transactions.Prepare general journal entries to record common business transactions整理ppt2EconomicResourcesClaims toEconomic ResourcesThe Accounting EquationAssets=Liabilities + Owners Equity整理ppt3AssetsWhat is an asset?It is something a company owns or controls which has future economi

4、c value.landbuildingequipmentgoodwill整理ppt4LiabilityWhat is a liability?It is something a company owes.moneyservice legal retainersproduct magazines整理ppt5Owners EquityWhat is owners equity?It is whats left of the assets after liabilities have been deducted.the same as net assetsthe owners claim on t

5、he entitys assets整理ppt6Transactions that AffectOwners EquityOWNERS EQUITYINCREASESOWNERS EQUITYDECREASESOwner Investmentsin the BusinessRevenuesExpensesOwner Drawingsfrom the BusinessOwners Equity整理ppt7RevenuesWhat are revenues?They are amounts received or to be received from customers for sales of

6、products or services.salesperformance of servicesrent receivedinterest received整理ppt8ExpensesWhat are expenses?They are amounts that have been paid or will be paid later for costs that have been incurred to earn revenue.salaries and wageselectricity and gassupplies usedadvertising整理ppt9Accounting fo

7、r Business TransactionsWhat is a transaction?It is any event that both affects the financial position of the business and can be reliably recorded.整理ppt10Accounting for Business TransactionsThe equation always stays in balance.Each transaction affects at least two accounts, sometimes more.Some trans

8、actions affect only one side of the equation; some affect both sides.整理ppt11Double-Entry AccountingDouble entry bookkeeping means to record the dual effects of each business transaction.Assets = Liabilities + Owners EquityAssets are on the left (debit) side.Liabilities and Equity are on the right (c

9、redit) side.整理ppt12The T-Account (Ledger Account)Account TitleDebitCreditLEFT SIDE整理ppt13The T-AccountAccount TitleDebitCreditRIGHT SIDE整理ppt14Owners EquityAssetsLiabilitiesDebit+DebitCreditDebitCredit+Credit+=+The Rules of Debit and Credit整理ppt15One debitOne creditEach transaction is recorded with

10、at least:Total debits must equal total credits.The Double-Entry System整理ppt16JournalsWhat is a journal?It is a list in chronological order of all the transactions for a business.1Identify transaction from source documents.2Specify accounts affected.3Apply debit / credit rules.1.Record transaction (w

11、ith description).整理ppt17JournalsWhat does a journal entry include?date of the transactiontitle of the account debitedtitle of the account creditedamount of the debit and credit(description of the transaction)dollar signs are omitted整理ppt18BoundbooksComputerprintoutCardsLoose leafpagesLedgerWhat is a

12、 ledger?It is a collection of all accounts utilised by an entity during an accounting period.整理ppt19Normal Account BalancesAssets = Liabilities + Owners EquityDebits = CreditsThe side where we expect increases to be recorded is the normal balance side.So assets usually have a Dr balance.But cash could be Dr or Cr, why?整理ppt20Expanding the Accounting Equation to Account for Revenue and ExpensesAssets = Liabilities + Owners EquityCapital contributions and Revenues increase Owners Equity.Drawings and Expenses decrease Owners Equity.So: Asse