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1、Fundamental Accounting Principles,Wild/Larson/Chiappetta 18th Edition,会计专业英语,Chapter 1,Accounting in Business,Conceptual Chapter Objectives,C1: Explain the purpose and importance ofaccounting in the information age C2: Identify users and uses of accounting C3: Identify opportunities in accounting an
2、d related fields C4: Explain why ethics are crucial in accounting C5: Explain the meaning of GAAP, and define and apply several key accounting principles C6: Appendix 1B: Identify and describe the three major activities in organizations,Analytical Chapter Objectives,A1: Define and interpret the acco
3、unting equation and each of its components A2: Analyze business transactions using the accounting equation A3: Compute and interpret return on assets A4: Appendix 1A: Explain the relation between return and risk,Procedural Chapter Objectives,P1: Identify and prepare basic financial statements and ex
4、plain how they interrelate,Identifies,Records,Communicates,Relevant,Reliable,Comparable,Importance of Accounting,Accounting,is a system that,informationthat is,to help users make better decisions.,C1,Identifying Business Activities,Recording Business Activities,Communicating Business Activities,Acco
5、unting Activities,C 1,Users of Accounting Information,C 2,Users of Accounting Information,Internal Users,Managerial accounting provides information needs for internal decision makers.,C 2,Opportunities in Accounting,C 3,Accounting Jobs by Area,C 3,Beliefs that distinguish right from wrong,Accepted s
6、tandards of good and bad behavior,EthicsA Key Concept,C 4,Identify ethical concerns,Analyze options,Make ethical decision,Use personal ethics to recognize ethical concern.,Consider all good and bad consequences.,Choose best option after weighing all consequences.,Guidelines for Ethical Decisions,C 4
7、,Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP).,Generally Accepted Accounting Principles,C 5,The Securities and Exchange Commission is the government group that establishes reporting requirements for companies that issue stoc
8、k to the public.,Setting Accounting Principles,Financial Accounting Standards Board is the private group that sets both broad and specific principles.,C 5,The International Accounting Standards Board (IASB) issues International Financial Reporting Standards that identify preferred accounting practic
9、es.,Principles of Accounting,C 5,Principles of Accounting,C 5,Business Entity Forms,Sole Proprietorship,Partnership,Corporation,C 5,* Proprietorships and partnerships that are set up as LLCs provide limited liability.,Characteristics of Businesses,C 5,Owners of a corporation are called shareholders
10、(or stockholders). When a corporation issues only one class of stock, we call it capital stock.,Corporation,C 5,Accounting Equation,A1,Assets,=,Liabilities,+,Equity,EQUITY,Sarbanes-Oxley Act,Also known as SOX Passed by Congress to help curb financial abuses at companies that sell stock to the public
11、 Requires accounting oversight and stringent internal controls Penalties include stock market delisting and criminal prosecution,Land,Equipment,Buildings,Cash,Vehicles,Store Supplies,Notes Receivable,Accounts Receivable,Resources owned or controlled by a company,Assets,A1,Taxes Payable,Wages Payable
12、,Notes Payable,Accounts Payable,Creditors claims on assets,Liabilities,A1,CAPITAL,Owner Investments,Equity,A1,Expanded Accounting Equation,A1,Transaction Analysis Equation,The accounting equation MUST remain in balance after each transaction.,A2,Transaction Analysis,The accounts involved are:(1) Cas
13、h (asset)(2) Owner Capital (equity),J. Scott invests $20,000 cash to start the business.,A2,Transaction Analysis,J. Scott invests $20,000 cash to start the business.,A2,The accounts involved are:(1) Cash (asset)(2) Supplies (asset),Transaction Analysis,Purchased supplies paying $1,000 cash.,A2,Trans
14、action Analysis,Purchased supplies paying $1,000 cash.,A2,The accounts involved are:(1) Cash (asset) (2) Equipment (asset),Transaction Analysis,Purchased equipment for $15,000 cash.,A2,Transaction Analysis,Purchased equipment for $15,000 cash.,A2,The accounts involved are:(1) Supplies (asset)(2) Equ
15、ipment (asset)(3) Accounts Payable (liability),Transaction Analysis,Purchased Supplies of $200 and Equipment of $1,000 on account.,A2,Transaction Analysis,Purchased Supplies of $200 and Equipment of $1,000 on account.,A2,Transaction Analysis,The accounts involved are:(1) Cash (asset) (2) Notes payab
16、le (liability),Borrowed $4,000 from 1st American Bank.,A2,Transaction Analysis,Borrowed $4,000 from 1st American Bank.,A2,Transaction Analysis,The balances so far appear below. Note that the Balance Sheet Equation is still in balance.,A2,Transaction Analysis,Now, lets look at transactions involving revenue, expenses and withdrawals.,A2,The accounts involved are:(1) Cash (asset) (2) Revenues (equity),Transaction Analysis,Provided consulting services receiving $3,000 cash.,
