会计英语110课Text 1 Accounting and Its EnvironmentDevelop an accounting vocabulary for decision making. Accounting is a system for measuring, processing, and communicating financial information. As the “language of business,” accounting helps a wide range of decision makers. Accounting dates backs to ancient civilizations, but its importance to society has been greatest since the Industrial revolution.Apply accounting concepts and principles to analyze business transactions. The three basic forms of business organization are the proprietorship, the partnership, and the corporation. Whatever the form, accountants use the entity concept to keep the businesss records separate from the personal records of the people who run it. Accountants at all levels must be ethical to serve their intended purpose. Generally accepted accounting principles (GAAP) guide accountants in their work. Among these guidelines are the entity concept, the reliability principle, the cost principle, the going-concern concept, and the stablemonetary-unit concept.Use the accounting equation to describe an organizations financial position. In its most common form, the accounting equation is Assets=Liabilities + Owners Equity.Use the accounting equation to analyze business transactions. Transactions affects a businesss assets, liabilities, and owners equity. Therefore, transactions are analyzed in terms of their effect on the accounting equation.Prepare the financial statements. The financial statements communicate information for decision making by the entitys managers, owners, and creditors and by government agencies. The income statement presents a video of the entitys operations in terms of revenues earned and expenses incurred during a specific period. Total revenues minus total expenses equal net income. Net income or net loss answers the question, How much income did the entity earn, or How much loss did it incur during the period? The statement of owners equity reports the changes in owners equity during the period. The balance sheet provides a photograph of the entitys financial standing in terms of its assets, liabilities, and owners equity at a specific time. It answers the question, What is the entitys financial position? The statement of cash flows reports the cash coming in and the cash going out during the period. It answers, Where did cash come from , and, Where did it go?Evaluate the performance of a business. High net income indicates success in business; net loss indicates a bad year.New words accounting 会计学，结算 measure 估量，衡量，计算process 初步分类，整理 apply to 把应用于transaction 交易 principle 原理proprietorship 独资企业，所有权 partnership 合伙关系，合伙企业corporation 公司，企业 entity 实体，统一的，权益ethical 合乎道德的 intended 预期的GAAP 普通会计原理 guideline 方针，指南entity concept 主体概念 reliability principal 可信性原则cost principal 成本原则 going-concern concept 持续经营概念stable-money-unit concept 稳定货币单位的概念 equation 等式 owners equity 投资者权益financial statement 财政报表 agency 机构income statement 损益报表 video 说明revenues 总收入 incurrent 遭受minus 减去 balance sheet 资产负债表，决算表indicate 表明，暗示 expenses 开支，消费Text 2 Recording Business TransactionDefine key accounting terms: account, ledger, debit, and credit. The account can be viewed in the form of the letter “T”. The left side of each T-account is its debit side. The right side is its credit side. The ledger, which contains a record for each account, groups and numbers accounts by category in the following order: assets, liabilities, and owners equity (and its subparts, revenues and expenses).Apply the rules of debit and credit. Assets and expenses are increased revenues are increased by credits. Liabilities, owners equity, and revenues are increased by credits and decreased by debits. The sidedebit or creditof the account in which increases are recorded is that accounts normal balance. Thus the normal balance of assets and expenses is a debit, and the normal balance of liabilities, owners equity, and revenues is a credit. The Withdrawals account, which decreases owners equity, normal has a debit balance. Revenues, which are increases in owners equity, have a normal credit balance. Expenses, which are decreases in owners equity, have a normal debit balance.Record transactions in the journal. The accountant begins the recording process by entering the transactions information in the journal, a chronological list of all the businesss transactions.Post from the journal to the ledger. The information is then posted-transferred-to the ledger accounts. Posting references are used to trace amounts back and forth between the journal and the ledger. Businesses list their account titles and numbers in a chart of accounts.Prepare a trial