會計學英語電子版01省公開課金獎全國賽課一等獎微課獲獎課件

FinancialAccounting:

ToolsforBusinessDecisionMaking,4thEd.Kimmel,Weygandt,KiesoCHAPTER1Preparedby

EllenL.SweattGeorgiaPerimeterCollege11/62Chapter1ANINTRODUCTIONTOFINANCIALSTATMENTS22/62StudyObjectivesDescribetheprimaryformsofbusinessorganization.Identifytheusersandusesofaccountinginformation.Explainthethreeprincipaltypesofbusinessactivity.Describethecontentandpurposeofeachofthefinancialstatements.33/62StudyObjectivesExplainthemeaningofassets,liabilities,andstockholders’equity,andstatethebasicaccountingequation.Describethecomponentsthatsupplementthefinancialstatementsinanannualreport.44/62FormsofBusinessOrganizationSoleproprietorshipPartnershipCorporation11155/62SoleProprietorshipBusinessownedbyonepersonSimpletoestablishOwnercontrolledTaxadvantagesOwnerpersonallyliableFinancingdifficult66/62PartnershipTwoormoreownersSimpletoestablishSharedcontrolBroaderskills&resourcesTaxadvantagesPersonalliability77/62CorporationSeparatelegalentityownedbystockholdersEasytotransferownershipGreatercapitalraisingpotentialLowerlegalliabilityUnfavorabletaxtreatment88/62UsersofFinancialInformation

InternalManagerswhoplan,organizeandrunabusinessMarketingmanagersProductionsupervisorsFinancedirectorsCompanyofficers11299/62UsersofFinancialInformation

InternalUsersAsk?1010/62UsersofFinancialInformation

ExternalInvestorsCreditorsOthersRegulatoryagenciesTaxauthoritiesCustomersLaborUnionsEconomicplanners1111/62UsersofFinancialInformation

ExternalUsersAsk?1212/62TypesofBusinessActivityFinancingInvestingOperating1131313/62FinancingActivitiesBorrowingcreates

liabilitiesBankloansDebtsecuritiesGoodsoncreditorpayablesSellingstock

createsstockholders’equity1414/62InvestingActivitiesObtainingresourcesorassetstooperatethebusinessLandBuildingsVehiclesComputersFurnitureEquipment1515/62OperatingActivitiesPrimaryactivityofbusinessSellinggoodsProvidingservicesManufacturingCostofSalesAdvertisingPayingemployeesPayingutilities1616/62OperatingActivitiesRevenues

aretheincreasesinassetsresultingfromthesaleofaproductorserviceExpensesarethecostofassetsconsumedorservicesusedingeneratingrevenue.Ifrevenue>expense=

NetIncomeIfrevenue<expense=

NetLoss!1717/62ReviewWhichisnot

oneofthethreeformsofbusinessorganization?a.

Soleproprietorship.d.

Corporation.c.

Partnership.b.

Creditorship.1818/62ReviewWhichisnot

oneofthethreeformsofbusinessorganization?a.

Soleproprietorship.d.

Corporation.c.

Partnership.b.

Creditorship.1919/62ReviewWhichisanadvantageofcorporationsrelativetopartnershipsandsoleproprietorships?a.

Lowertaxes.d.

Mostcommonformofbusiness organization.c.

Reducedlegalliabilityforinvestors.b.

Hardertotransferownership2020/62ReviewWhichisanadvantageofcorporationsrelativetopartnershipsandsoleproprietorships?a.

Lowertaxes.d.

Mostcommonformofbusiness organization.c.

Reducedlegalliabilityforinvestors.b.

Hardertotransferownership2121/62ReviewWhichisnot

oneofthethreeprimarybusinessactivities?a.

Financing.d.

Investing.c.

Advertising.b.Operating.2222/62ReviewWhichisnot

oneofthethreeprimarybusinessactivities?a.

Financing.d.

Investing.c.

Advertising.b.Operating.2323/62ContentandPurposeofFinancialStatementsAccountantscommunicatewithusersthroughfourfinancialstatements1142424/62FourFinancialStatementsIncomeStatementRetainedEarningsStatementBalanceSheetStatementofCashFlows2525/62IncomeStatementReportsoperatingsuccessorfailureforaperiod.Summarizesrevenuesandexpensesforperiod:month,quarter,year.Ifrevenue>expense=

NetIncome.2626/62IncomeStatementDothisstatementfirst!2727/62RetainedEarningsStatementShowschangesinretainedearningsforperiod:month,quarter,yearBeginningbalanceAdd

NetIncomefromincomestatement.DeductDividendsEndingbalance2828/62RetainedEarningsStatementDothisstatementsecond!2929/62BalanceSheetReportsassets

andclaimstoassets.Claimsofcreditors,liabilities.Claimsofowners,stockholders’equity.Assets=Liabilities+Stockholders’EquitySpecificdate–onepointintime!3030/62BalanceSheetFromRetainedEarningsStatement3131/62StatementofCashFlowsProvidesinformationaboutcashreceiptsandcashpaymentsSummarizesforperiod:month,quarter,year.Casheffectsofoperating,investing,andfinancingactivities.3232/62StatementofCashFlowsWheredidthecashcomefrom?Howwascashusedduringtheperiod?Whatwasthechangeinthecashbalanceduringtheperiod?Acompanycannotsurvivewithoutcash!3333/62StatementofCashFlows..Agreeswith

BalanceSheet3434/62AssetsResourcesownedbythebusinessCashAccountsreceivableInventoriesFurnitureandfixturesEquipmentSupplies1153535/62LiabilitiesObligationsordebtsofbusinessNotespayableAccountspayableInterestpayableSalariespayableUnearnedrevenue3636/62Stockholders’EquityOwnershipclaimsonassetsPaid-incapitalCommonstockRetainedearnings3737/62BasicAccountingEquationAssets=Liabilities+Stockholders’Equity3838/62ReviewWhatquestionsmighteachofthefollowingdecisionmakersaskthatcouldbeansweredbythefinancialstatements…Bankloanofficer?Federalbankregulator?Laborunionpresident?Stockinvestor?3939/62ReviewWhichofthefollowingisnotacorrectrepresentationoftheaccountingequation?a.

Assets=Liabilities+Stockholders’Equityd.

Assets-

Stockholders’Equity=Liabilitiesc.

Assets+Stockholders’Equity=Liabilitiesb.

Assets-Liabilities=Stockholders’Equity4040/62ReviewWhichofthefollowingisnotacorrectrepresentationoftheaccountingequation?a.

Assets=Liabilities+Stockholders’Equityd.

Assets-

Stockholders’Equity=Liabilitiesc.

Assets+Stockholders’Equity=Liabilities

b.

Assets-Liabilities=Stockholders’Equity4141/62ReviewUsingtheaccountingequation,answerthefollowingquestion.IfLiabilities=$10,000andThenAssets=

Stockholders’Equity=$20,000$30,000=$10,000+$20,000$30,0004242/62Usingtheaccountingequation,answerthefollowingquestion.IfAssets=$75,000ThenStockholders’Equity=

AndLiabilities=$35,000Review$40,000$75,000=$35,000+$40,0004343/62SupplementstotheFinancialStatementsinanAnnualReportManagementDiscussionandAnalysisNotestoFinancialStatementsAuditor’sreport1164444/62Management’sDiscussionandAnalysiscoversthreeitems:LiquidityCapitalresourcesResultsofoperations4545/62Management’sDiscussionandAnalysis4646/62NotestoFinancialStatementsExplanatorynotesandsupplementaryschedulesClarifiesinformationinfinancialstatementsExpandswithadditionaldetailDescribesaccountingpoliciesExplainsuncertaintiesandcontingencies4747/62NotestoFinancialStatements4848/62Auditor’sReportCertifiedPublicAccountant–CPAAuditor(CPA)conductsindependentexaminationoffinancialstatementsFairrepresentation?Followgenerallyacceptedaccountingprinciples(GAAP)?Unqualifiedopinion4949/62Auditor’sReport5050/62DoItProblem:CSUCorporationCSUbeginsonJan.1,ForyearendedDec.31,,prepareIncomestatementRetainedearningsstatementBalancesheet5151/62Actionstep1:Reporttherevenues&expensesforaperiodoftime,IncomeStatementDoItProblem:CSUCorporation5252/62Actionstep1:Reporttherevenues&expensesforaperiodoftime,IncomeStatementDoItProblem:CSUCorporation5353/62DoItProblem:CSUCorporationCSUCorporationIncomeStatementFortheYearEndedDecember31,CreatetheheadingNameofthestatementNameofthecompanyPeriodoftime5454/62DoItProblem:CSUCorporationCSUCorporationIncomeStatementFortheYearEndedDecember31,Revenues Servicerevenue $17,000ListtherevenuesUsedollarsignstodenoteU.S.currency5555/62DoItProblem:CSUCorporationCSUCorporationIncomeStatementFortheYearEndedDecember31,Revenues Servicerevenue $17,000Expenses Rentexpense $9,000 Insuranceexpense 1,000 Suppliesexpense 200 Totalexpenses 10,200________Listtheexpenses&underlinesub-totals5656/62DoItProblem:CSUCorporationCSUCorporationIncomeStatementFortheYearEndedDecember31,Revenues Servicerevenue $17,000Expenses Rentexpense $9,000 Insuranceexpense 1,000 Suppliesexpense 200 Totalexpenses 10,200NetIncome $6,800Calculatenetincome:revenues-expenses________________________________5757/62DoItProblem:CSUCorporationActionstep2:ShowamountsandcausesofchangesinretainedearningsUseNetIncomefromIncomeStatementDividends5858/62DoItProblem:CSUCorporationCSUCorporationRetainedEarningsStatementFortheYearEnd