英文版財(cái)務(wù)會(huì)計(jì)PPT 1

1、Accounting and theBusiness EnvironmentChapter 11Objective 1Use accounting vocabulary2AccountingMeasuresProcessesCommunicates.Financial information to decision makers3Decision MakersIndividualsBusinessesInvestorsCreditorsTaxing Authorities4Financial vs. Managerial AccountingFinancial Accounting Infor

2、mation for people outside of the companyManagerial Accounting Information for internal decision makers5Governing OrganizationsFASB Financial Accounting Standards BoardSEC Securities and Exchange CommissionAICPA American Institute of Certified Public AccountantsIMA Institute of Management Accountants

3、6EthicsAuditExamination of companys financial situationPerformed by independent accountantsSarbanes-Oxley Act Criminal offense to falsify financial statementsPublic Companies Accounting Oversight Board Monitors work of accountants7Standards of Professional ConductAICPA Code of Professional Conduct f

4、or AccountantsIMA Standards of Ethical Conduct8Types of Business OrganizationsProprietorshipsPartnershipsCorporations9Objective 2Apply accounting concepts and principles10 GAAP Generally Accepted Accounting PrinciplesAccounting guidelines that govern how accountants measure, process, and communicate

5、 financial informationFormulated by Financial Accounting Standards Board (FASB)11GAAPPrimary objective of financial accounting provide information that is useful for making investment and lending decisions12Entity ConceptAccounting Entity organization that stands apart as a separate economic unit13A

6、ccounting information is based on the most reliable data availableVerifiableFree from biasIndividuals would arrive at similar conclusions using same dataReliability (Objectivity) Principle14Cost PrincipleAcquired assets and services should be recorded at their actual cost (historical cost)15Going Co

7、ncern ConceptAssumes that the entity will remain in operation for the foreseeable future16Stable-Monetary-Unit ConceptAssumes that the dollars purchasing power is stable17Objective 3Use the accounting equation18AssetsEconomic resources, expected to benefit the business in the futureCashAccounts rece

8、ivableMerchandise inventoryFurnitureLand19Claims to the AssetsLiabilities economic obligations payable to an individual or organization outside the businessAccounts payableNotes payableSalary payable20Claims to the AssetsOwners Equity (capital) claim of business owner to the assets of the business 2

9、1EconomicResourcesClaims toEconomicResourcesThe Accounting EquationAssets=Liabilities + Owners Equity22Transactions that AffectOwners EquityOWNERS EQUITYINCREASESOWNERS EQUITYDECREASESOwner InvestmentsRevenuesExpensesOwner WithdrawalsOwners Equity23RevenuesAmounts earned by delivering goods or servi

10、ces to customersSales revenueService revenueInterest revenueDividend revenue24ExpensesDecrease in owners equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customersSalary expenseRent expenseUtilities expenseInterest expense25Exercise 1-18

11、$81,00032,00021,000$72,00026Objective 4Analyze business transactions27TransactionAn event that affects the financial position of a particular entity and can be recorded reliably28Exercise 1-17Increased assets (cash)No effect on total assets Decreased assets (cash)Increased assets (equipment)29Exerci

12、se 1-17Increased assets (accounts receivable)Decreased assets (cash)No effect on total assets Increased assets (cash)30Exercise 1-2245,000InvestmentAssets = $45,000Liabilities & Owners Equity = $45,00045,000631Exercise 1-2245,000Investment35,000Assets = $45,000Liabilities & Owners Equity = $45,00045

13、,0006-35,000945,00035,00010,000Bal32Exercise 1-222,000Assets = $47,000Liabilities & Owners Equity = $47,0002,0001245,00035,00010,000Bal45,00035,00010,000Bal2,0002,00033Exercise 1-22Assets = $54,000Liabilities & Owners Equity = $54,0007,00015-317,000Revenue52,00035,00017,000Bal2,0002,00045,00035,0001

14、0,000Bal2,0002,00034Exercise 1-22Assets = $51,000Liabilities & Owners Equity = $51,00052,00035,00017,000Bal2,0002,000-1,70015-31-1,700Salaries Exp-1,000Rent Exp-1,000- 300Utilities Exp- 30049,00035,00014,000Bal2,0002,00035Exercise 1-22Assets = $51,000Liabilities & Owners Equity = $51,000 500 28 -500

15、 49,00035,00014,500Bal2,0001,50049,00035,00014,000Bal2,0002,00036Exercise 1-22Assets = $49,500Liabilities & Owners Equity = $49,500-1,500 31 -1,500 49,00035,00014,500Bal2,0001,50049,00035,00013,000Bal 5001,50037Objective 5Prepare financial statementsEvaluate business performanceObjective 638Financia

16、l StatementsIncome statementStatement of owners equityBalance sheetStatement of cash flows39Income StatementSummary of an entitys revenues, expenses, and net income or net loss for a specific periodRevenues - ExpensesNet Income: Revenues ExpensesNet Loss: Expenses Revenues40Statement of Owners Equit

17、ySummary of changes in an entitys owners equity during a specific periodBeginning owners equity+ Owners investments+ Net income- Net loss- Owners withdrawalsEnding owners equity41Balance SheetReports the entitys assets, liabilities, and owners equity as of a specific dateAssets = Liabilities + Owner

18、s Equity42Statement of Cash FlowsReports cash receipts and cash payments during a period (covered in Chapter 17)43Maria Lange, M.D.Income StatementFor the Month Ended July 31, 2006Revenue:Fees earned$7,000Expenses:Salary expense $1,700Rent expense1,000Utilities expense300Total Expenses3,000 Net inco

19、me$4,00044Maria Lange, capital, July 1, 2006$ 0Add: Investment by owner45,000Net income for the month4,000Subtotal$49,000 Less: Withdrawals by owner 0Maria Lange, capital, July 31, 2006$49,000Maria Lange, M.D.Statement of Owners EquityFor the Month Ended July 31, 200645Maria Lange, M.D.Balance Sheet

20、July 31, 2006AssetsCash$13,000Medical supplies1,500Land 35,000Total assets$ 49,500 LiabilitiesAccounts payable$500Owners equity,M. Lange, capital 49,000Total liabilities and owners equity$ 49,50046Cash$2,000Accounts receivable6,000Supplies500Equipment15,500 Total Assets$24,000Allen Samuel Road ServiceBalance SheetNovember 30