会计英语会计英语（第四版）（第四版）上海财经大学出版社上海财经大学出版社普通高等教育普通高等教育“十一五十一五”国家级规划教材国家级规划教材高等院校会计专业方向选修课系列教材高等院校会计专业方向选修课系列教材2021/8/222021/8/221 1INTRODUCTIONOverview of the CourseCourse ScheduleLearning RequirementsEvaluation-Discussion-Homework-Quiz-Examination2021/8/222Lesson 1 Review of AccountingIntroduction to accounting conceptsAccounting is a service activity that includes the measurement, recording, summarization, and reporting of economic information to external financial statement users to assist in rational investment, credit, and similar decisions. Accounting is also essential for internal functions of a business.2021/8/223AccountinginformationThe accounting processDecision makersEconomic activitiesActions (decisions)Accounting is an information system.Accounting thinks decision makers with economic activities and with the results of their decisions.2021/8/224Financial statementsnThe statement of comprehensive income (income statement) summarizes financial performance resulting from income (revenue and gains) less expenses (including losses).nThe statement of changes in equity reconciles changes in equity (increases are caused by owner investments and net income, while decreases result from owner withdrawals and net losses for sole proprietorship ).nThe statement of financial position (balance sheet) details assets, liabilities, and equity.nThe statement of cash flows shows the cash inflows and outflows from operating activities, investing activities, and financing activities.2021/8/225Users of accounting informationnPrimary users investors and creditorsnExternal users & Internal usersnExternal users are users outside of the entitynexamples: banks, government, creditors, unionsnInternal users are users within the entitynexamples: Marketing Manager, Accounts Receivable Manager, Accounts Payable Manager2021/8/226International financial reporting standards & GAAPnGAAPs are established by setting bodies after consultation with various interest groups, such as business owners and other professional accounting bodies. There is a growing trend to adopt accounting standards that are in harmony with international accounting standards. 2021/8/227International financial reporting standards & GAAPnAccounting concepts and principles include:nbusiness entitynmonetary unitnobjectivity principlencost principlengoing-concern nrevenue recognition or realization principlentime period nmateriality principlenmatching principlenconsistency principlenconservatism principlenfull-disclosure principle2021/8/228 Types of accountantsnThere are three basic types of accountants:nPrivate accountants work for a single employer.nPublic accountants are available to the public.nGovernment accountants work for local, provincial, and federal government agencies.2021/8/229 Fields of accountingnThere are four broad fields of accounting:nfinancialnmanagerialntaxationnaccounting-related2021/8/2210 Forms of organizationnSingle or sole proprietorshipnOwner is personally responsible for business debts.nPartnershipnPartners are personally responsible for all partnership debts.nCorporationnA corporation is a separate legal entity.nIt is responsible for its own debts.2021/8/2211The accounting equationnBusiness transactions always affect at least two elements in the accounting equation. nThe accounting equation is: Assets = Liabilities + Owners equitynAfter a transaction is recorded, the accounting equation must be in balance.2021/8/2212Using the accounting equation(1)Recording (2)Reporting(Basic Steps of Accounting Processing)Example 1-2 Page122021/8/2213An example!2021/8/2214Lets analyze some transactions for JJs Lawn Care Service.2021/8/2215On May 1, 2001, Jill Jones deposited $8,000 in the bank to officially start JJs Lawn Care Service.The Effects of Business Transactions2021/8/2216The Effects of Business Transactions2021/8/2217On May 2, 2001, JJs purchased a riding lawn mower for $2 500 cash.The Effects of Business Transactions2021/8/2218The Effects of Business Transactions2021/8/2219On May 8, 2001, JJs purchased a $15,000 truck.JJs paid $2 000 down in cash and issued a note payable for the remaining $13 000.The Effects of Business Transactions2021/8/2220The Effects of Business Transactions2021/8/2221On May 11, 2001, JJs purchased some repair parts for $300 on account.The Effects of Business Transactions2021/8/2222The Effects of Business Transactions2021/8/2223On May 18, 2001, JJs sold half of their repair parts to ABC Lawns for $150, a price equal to JJs cost.JJs will receive the cash within 30 days.The Effects of Business Transactions2021/8/2224The Effects of Business Transactions2021/8/2225On May 25, 2001, ABC Lawns pays JJs $75 as a partial settlement of its accounts receivable.The Effects of Business Transactions2021/8/2226The Effects of Business Transactions2021/8/2227On May 28, 2001, JJs pays $150 of its accounts payable.The Effects of Business Transactions2021/8/2228The Effects of Business Transactions2021/8/2229On May 29, 2001, JJs recorded lawn care services provided during May of $750. All clients paid in cash.The Effects of Business Transactions2021/8/2230The Effects of Business Transactions2021/8/2231On May 31, 2001, JJs purchased gasoline for the lawn mower and the truck for $50 cash.The Effects of Business Transactions2021/8/2232The Effects of Business Transactions2021/8/2233Lets review how JJs transactions affected the accounting equation. The Effects of Business Transactions2021/8/22342021/8/2235These transactions impact the Statement of Cash Flows.These transactions impact the Income Statement.Balance Sheet !2021/8/2236 Ethics in accountingnAccountants must perform their responsibilities according to the highest ethical standards because many users rely on financial reports. nSome of the basic ethical standards expected of professional accountants include: nconfidentialityncompetencenobjectivitynintegrity2021/8/2237End of Lesson 12021/8/2238