知識目標：Explainthenatureofaccountinganditstypes;Understandthebasicassumptionsandprinciplesofaccounting能力目標：Interpretthequalitativecharacteristicsofaccountinginformation;Identifytheeffectsofbusinesstransactionsontheaccountingequation素質目標：ApplytheDouble-EntryBookkeeping重點Qualitativecharacteristicsofaccountinginformation;TheAccountingEquationandDouble-EntryBookkeeping難點TheAccountingEquationandDouble-EntryBookkeeping手段結合理論與案例小組討論Chapter1PrincipleofFinancialAccounting〖理論知識〗Topic1:Natureofaccounting1.AccountingisanInformationSystemAccountingisoftendescribedasaninformationsystemthatidentifies,records,andcommunicatesrelevant,reliable,andcomparableinformationaboutanorganization’sbusinessactivitiesthatcanbeexpressedinmonetaryterms.2.ThePurposesofAccountingTheprimarypurposeofaccountingistoprovideinformationtohelppeoplemakedecisionsabouteconomicactivities.3.TypesofAccountingInformation(1)FinancialAccountingFinancialaccountingreferstoinformationdescribingthefinancialresources,obligationsandactivitiesofaneconomicentity,eitheranorganizationoranindividual.(2)ManagementAccountingManagementaccountinginvolvesthedevelopmentandinterpretationofaccountinginformationwhichisforinternaluseandprovidesspecialinformationforthemanagersofacompany.(3)TaxAccountingTaxplanningmeansanticipatingthetaxeffectsofbusinesstransactionsandstructuringthesetransactionsinamannerthatwillminimizetheincometaxburden.4.UsersofAccountingInformation(1)IndividualsIndividualsoftenkeepsaccountingrecordstomakedecisions.Discussthetypesofaccountinginformationandinformationusers.(2)ManagersofBusinessManagersofbusinessesuseaccountinginformationtosetgoalsfortheirorganizations,toevaluateprogresstowardthosegoals,andtotakecorrectiveactionifnecessary.(3)InvestorsandcreditorsInvestorsandcreditorsprovidethemoneyabusinessneedstobeginoperations.Todecidewhethertohelpstartanewventure,potentialinvestorsevaluatewhatincometheycanexpectontheirinvestment.(4)GovernmentregulatoryagenciesMostorganizationsfacegovernmentregulation.Forexample,theSecuritiesandExchangeCommission(SEC).(5)TaxauthoritiesTaxAuthoritieslevytaxesonindividualsandbusinesses.Theamountofthetaxisfiguredusingaccountinginformation.(6)NonprofitorganizationNonprofitorganizations—suchaschurches,governmentagencies,andcollege,whichoperateforpurposesotherthanprofit—useaccountinginformationinmuchthesamewaythatprofit-orientedbusinessdo.(7)OtherusersEmployeesandlaborunionsmakewagedemandsbasedontheiremployer’sreportedincome.Consumergroupsandthegeneralpublicarealsointerestedintheamountofincomebusinessesearn.Topic2:QualitativeCharacteristicsofAccountingInformation1.PrimaryQualitativeCharacteristicsRelevantaccountinginformationmustbeusefulinhelpingusersassessthefutureperformanceofthefirmaswellasprovidefeedbackaboutpriordecisions.(2)MaterialityMaterialitymeansthattherequirementsofaccountingprinciplesmaybeignorediftheireffectsonthefinancialstatementsareunimportanttousers.(3)FaithfulRepresentationFinancialinformationmustnotonlyrepresentrelevantphenomena,butalsofaithfullyrepresentthephenomenathatitpurportstorepresent.Tobeaperfectlyfaithfulrepresentation,adepictionshouldhavefollowingthreecharacteristics:complete,neutral,andfreefromerror.2.EnhancedQualitativeCharacteristics(1)ComparabilityComparabilityisthequalitativecharacteristicthatenablesuserstoidentifyandunderstandsimilaritiesin,anddifferencesamongitems.(2)VerifiabilityVerifiabilitymeansthatdifferentknowledgeableandindependentobserverscouldreachconsensus,althoughnotnecessarilycompleteagreement,thataparticulardepictionisfaithfullyrepresented.Discussthequalitativecharacteristicsofaccountinginformation(3)TimelinessTimelinessmeanshavinginformationthatcouldinfluencedecisionsavailabletodecisionsavailabletodecisionmakersintime.(4)UnderstandabilityAccountinginformationshouldbeunderstandabletouserswhohaveareasonableknowledgeofbusinessandeconomicactivitiesandwhoarewillingtostudytheinformationwithreasonablediligence.Topic3：TheAssumptionandPrincipleofAccounting1.BasicAssumptionsofAccounting(1)BusinessEntityAssumptionBusinessentitymeansthateverybusinessunitorenterpriseistreatedinaccountingasaseparateentity.(2)GoingConcernAssumptionGoingconcernreferstopresumptionthattheentitywillcontinuetooperateinthefuture--thatitisnotbeingliquidated.(3)MonetaryUnitAssumptionMonetaryunitassumptionrequiresthatallthetransactiondataofanentityshouldbemeasuredandenteredintermsofmoneyintheaccountingrecords.(4)AccountingPeriodAssumptionAccountingperiodconceptmeanstheperiodoftimeselectedforreportingresultsofoperationsandchangesinfinancialposition.2.BasicPrinciplesofAccounting(1)CostPrincipleCostprinciplerequiresthattheassetsofanentityberecordedattheiroriginalcost.(2)Accrual-basisPrincipleAccrual-basisprinciplemeansthatrevenuesandexpensesarerecognizedintheaccountingperiodinwhichtheyareearnedorincurred,eventhoughthecashreceiptorpaymentsoccursatanothertimeorinanotheraccountingperiod.(3)MatchingPrincipleMatchingprinciplerequiresthatallexpensesincurredingeneratingrevenuesduringaperiodoftimebedeductedfromtherevenueearned.(4)RealizationPrincipleRealizationprinciplespecifiesthatrevenueisrecognizedatthetimeofsale,whichhappenswhentitle(ownership)totheproductbeingsoldpassesfromthesellertothebuyerorwhentheservicesinvolvedinthetransactionhavebeenperformed.(5)FullDisclosurePrincipleFulldisclosureprinciplemeansthatthefinancialstatementsandnotesorexplanationsshouldincludeallnecessaryinformationtopreventareasonablyDiscusstheassumptionsandprinciplesofaccountingastuteuserofthefinancialstatementsfrombeingmisled.(6)MaterialityPrincipleMaterialityprinciplerelatestotheextenttowhichinformationcanbeomitted,misstatedorgroupedwithotherinformationwithoutmisleadingthefinancialinformationuserswhentheyaremakingtheireconomicdecisions.(7)ConservatismPrincipleConservatismprincipleinaccountingrelatestomakingjudgmentsandestimatesthatresultinginlowerprofitandassetvaluationestimatesratherthanhigherprofitandassetvaluationestimates.Topic4:TheAccountingEquationandDouble-EntryBookkeeping1.AccountingElementsAssetsrefertotheresourcesincurredbythepasttransactions,whichareownedorcontrolledbytheenterprisesandareexpectedtobringeconomicreturnstotheenterprises.(2)LiabilityLiabilityreferstothefinancialobligationsenteredinthebalancesheetofabusinessenterprise.(3)TheOwner’sEquityTheowner’sequityreferstotheeconomicintereststhattheownerisblessedwithintheenterpriseassets,itistheamountofassetsminusliabilities.(4)RevenueRevenuereferstothetotalinflowofeconomicinterestwhensellingproducts,providinglaborservices,andtransferringassets.(5)ExpenseExpensereferstotheinterestoutflowofsale,provisionofservicesandotherdailyactivities.(6)ProfitProfitreferstooperatingresultsofenterprisesinacertainaccountingperiod,includingtheoperatingprofitplusotherbusinessprofits,minusoperatingexpenses,managementexpensesandtheamountoffinancialexpenses.2.AccountingEquationAssets=Liability+Owner’sEquityAccordingtotheincomestatement,welearnedtherelationshipbetweenrevenueandexpenses:NetIncome(NetLoss)=Revenues-ExpensesNextnetincomeornetlosswillbeclosedtoowner’sequity.Andwecanhavethefollowingpresentationofaccountingequation.Assets=Liability+[Owner’sEquity+(Revenues-Expenses)]3.EffectsofBusinessTransactionsupontheAccountingEquationAnybusinesseventthatalterstheamountofassets,liabilitiesorowner’sequityorthataffectstheaccountingequationiscalledatransaction.Hereweuseexample1-1toillustratetheeffectsofbusinesstransactions.Example1-1weassumethatduringthemonthofJanuary,2016,Scarlett’sBarhadsometransactions：Transaction1:Scarlettstartedherbusinessanddeposited$l4,000intoabankaccountopenedspeciallyforherbusinessScarlett’sBarTransaction2:Boughtequipmentlikerefrigerators,tablesandchairs,etc.for$8,500Transaction3:Boughtsuppliessuchastablewarefor$2,000Transaction4:Boughtbeverages,etc.for$7,500onaccountTransaction5:Borrowed$5,000fromthebankforadurationof3monthsTransaction6:Paid$5,000owedoninventoryTransaction7:Paidelectricityandwaterbillsforthemonth$245Nowlet’sseehowtheaccountantmakesameaningfulrecordoftheseriesoftransactions,reconcilingstepbystepwiththeaccountingequation.Transaction1:Scarlettstartedherbusinessanddeposited$14,000intoabankaccountTherearetwoaccountsthatareaffected：theassetsCashisincreased,andthecapitalofthefirmisincreasedbythesameamount.CapitalCisusedin“Cash”and“Capital”tomeanthetitlesofaccounts.)Assets=Liabilities+Owner’sEquityCash=+Scarlett’sCapital1.+$14,000=+$14,000Transaction2:Boughtequipmentlikerefrigerators,tablesandchairs,etc.for$8,500.HereScarlettissubstitutingoneasset(cash)foranotherasset(equipment).Sheisreceiving(+)theassetEquipmentandpayingout(-)theassetCash.Notethatthecapitalof$14,000remainsunchanged.Assets=Liabilities+Owner’sEquityCash+Equipment=+Scarlett’sCapital$14,000$14,000-$8,500+$8,5002.$5,500$8,500$14,000Transaction3:Boughtsuppliessuchastablewarefor$2,000.Inthiscase,ScarlettagainsubstitutesoneassetCashforanotherassetSupplies(TablewareiscurrentassetswhichisgroupedunderthetitleSupplies).ShereceivesSupplies(+)andpaysoutCash(-).Assets=Liabilities+Owner’sEquityCash+Supplies+Equipment=+Scarlett’sCapital$5,500$8,500$14,000-$2,000+$2,0003.$3,500+$2,000$8,500$14,000Transaction4:Boughtbeverages,etc.for$7,500onaccount.Inthistransaction,bothsidesoftheaccountingequationareaffected:increaseontheleftsideAssets(+)andincreaseontherightsideLiabilities(+)bythesameamount.Sotheaccountingequationisstillinbalance.ForScarlett’sBarsuchgoodsasbeverages,pastry,refreshment,etc.aregroupedunderthetitleInventories.ShethereforeisreceivingtheassetInventoriesbutisnotpayingforitwiththeassetCash.Instead,shewillowethemoney.ThusshecreatestheliabilityAccountsPayablesbecausesheowesthatmuch.Assets=Liabilities+Owner’sEquityCash+Supplies+Inventories+Equipment=AccountsPayable+Scarlett’sCapital$3,500$2,000$8,500$14,000 +$7,500+$7,5004.$3,500$2,000$7,500$8,500$7,500$14,000Transaction5:Borrowed$5,000fromthebankforadurationof3months.LikecreatingAccountsPayabletopurchaseanasset,bothsidesoftheaccountingequationincreasebythesmeamount,butthebalancingconditionisnotimpaired.Inthiscase,ScarlettisreceivingCash(+)andcreatingacurrentlibilityShort-termBorrowings(+).Assets=Liabilities+Owner’sEquityCash+Supplies+Inventories+Equipment=Short-termBorrowings+AccountsPayable+Scarlett’sCapital$3,500$2,000$7,500$8,500$7,500+$14,000+$5,000+$5,0005.$8,500$2,000$7,500$8,500$5,500$7,500$14,000Transaction6:Paid$5,000owedoninventoryThistransactionreducedScarlett’sassetCashsincesheispayingoutmoneyby$5,000(-).ShealsoreducedherliabilityAccountspayable,by$5,000(-).Nowsheowesthatmuchless.Assets=Liabilities+Owner’sEquityCash+Supplies+Inventories+Equipment=Short-termBorrowings+AccountsPayable+Scarlett’sCapital$8,500$2,000$7,500$8,500$5,000$7,500$14,000-$5,0006.$3,500$2,000$7,500$8,500$14,000-$5,000$5,000$2,500Transaction7:Paidelectricityandwaterbillsforthemonth$245.ElectricityandwaterbillsconstituteUtilitiesExpenses.ThistransactionmeansadeductionfromCash.IncurrenceofexpensemeansadeductionofCapital.Assets=Liabilities+Owner’sEquityCash+Supplies+Inventories+Equipment=Short-termBorrowings+AccountsPayable+Scarlett’sCapital$3,500$2,000$7,500$8,500$5,000$2,500$14,000-$245-$245UtilitiesEx.7.$3,255$2,000$7,500$8,500$5,000$2,500$13,755Inconclusion,accountingworksasitsatisfiesthat:(1)Everytransactionaffectsatleasttwoitemsintheaccountingequation.Thinkofatransactionasanyeconomiceventthatcausesachangeaassets,liabilities,orowner’sequity.(2)Theaccountingequationremainsinbalanceaftereachtransaction.(3)Revenuesandownerinvestmentsincreaseowner’sequity.Expensesandownerwithdrawalsdecreaseowner’sequity.Therefore,owner’sequityisdirectlyaffectedbyrevenues,expenses,investments,andwithdrawals.4.Doubble-EntryBookkeepingPreparationoffinancialstatementsrequiresthatinformationaboutanorganization’seconomiceventsbecapturedandrecordedinarationalandsystematicmanner.Thefundamentalruleofdouble-entrybookkeepingisthatdebitsmustequalcredits.>DebitsandCreditsDebitsandcreditsareaccountingtermswithspecializedmeanings.Essentially,thetermdebitandcreditmeansleftandrightrespectively.AT-accountisusedtoillustratetheuseofdebitsandcredits.CashDebitCreditThenormalbalanceofeachaccountisonthesidewhereincreasesarerecorded.Thus,assetsandexpensesnormallyhavedebitbalance;liabilities,equity,andrevenuestypicallyhavecreditbalances.Exhibit1-2summarizesthedebit/creditrelationshipsofaccounts.Exhibit1-2DebitandCreditRelationshipsofAccountsAssetsLiabilityEquityRevenuesIncreasesDebitsCreditsCreditsCreditsDebitsDecreaseCreditsDebitsDebitsDebitsCredNormalbalanceDebitsCreditsCreditsCreditsDebits〖小結】1.Therearethreetypesofaccountinginformationincludingfinancialaccounting,managementaccountingandtaxingaccounting.2.Accountingusersincludeindividuals,managersofbusiness,investorsandcreditors,government,taxauthorities,nonprofitorganizationandsoon.3.Therearethreeprinciplequalitativecharacteristicsincludingrelevance,materialityandfaithfulrepresentation;fourenhancedqualitativecharacteristicsincludingcomparable,verifiable,timely,andunderstandable.4.Fourmainassumptionsarebusinessentityassumption,goingconcernassumption,monetaryunitassumption,andaccountingperiodassumption.5.Accountingelementsaredividedintosixparts:assets,liability,owner'sequity,income,expensesandprofit.6.Accountingequationandtheeffectsofbusinesstransactionsupontheaccountingequation.7.Double-entrybooking.知識目標：UnderstandthebasicsofaccountingcycleExplaintheprincipleofjournalingandpostingprocess能力目標：Befamiliarwithpreparingatrailbalance素質目標：ApplytheadjustingproceduresApplytheclosingprocess重點ApplytheadjustingproceduresApplytheclosingprocess難點ApplytheadjustingproceduresApplytheclosingprocess手段結合理論與案例小組討論Chapter2AccountingCycleK理論知識】Topic1:BasicsofAccountingCycleTheaccountingcycleincludestandardizedproceduresthatareperformedinsequenceduringeveryaccountingperiod.Thesequenceofaccountingproceduresusedtorecord,classify,andsummarizeaccountinginformationisoftentermedtheaccountingcycle.Accountingcyclecanbedividedintothefollowingsteps：1.Journalizetransactions.2.Posttoledgeraccounts.3.Prepareatrialbalance.4.Makeend-of-periodadjustments.5.Prepareanadjustedtrialbalance.6.Preparefinancialstatementsandappropriatedisclosures.7.Journalizeandposttheclosingentries.8.Prepareanafter-closingtrialbalance.Topic2:JournalsandLedgers2.JournalsInawesternaccountingsystem,theinformationabouteachbusinesstransactionisinitiallyrecordedinanaccountingrecordcalledaJournal.Theinformationabouteachtransactionthatshouldberecordedinthejournalisthedateofthetransaction,thedebitandcreditchangesinspecificledgeraccounts,andabriefexplanationofthetransaction.(1)Advantagesofusingjournals>Thejournalshowsallinformationaboutatransactioninoneplaceandalsoprovidesanexplanationofthetransaction.>Thejournalprovidesachronologicalrecordofallthefinancialeventsinthelifeofabusiness.>Theuseofajournalhelpstopreventerrors.Iftransactionswererecordeddirectlyintheledger,itwouldbeveryeasytomakeerrorssuchasomittingthedebitorthecredit,orenteringthedebittwiceorthecredittwice.(2)TypesofJournals>GeneralJournalsIthasonlytwomoneycolumns,onefordebitsandoneforcredit;itmaybeusedforalltypesoftransactions.Exhibit2-2showsthestandardformatofageneraljournalentry..Exhibit2-2GeneraljournalentryJournalPage1DateAccountstitlesandexplanationPost.Ref.DebitCredit>SpecialJournalsInthemodernworld,abusinessofanysizeentersintosomanytransactionsthattheuseofasinglejournalwouldimposeintolerablerestrictionsonitsabilitytomaintainadequaterecords.Itis,therefore,usualtobreakdownorsubdividethejournalintoanumberofspecializedjournals,eachbeingusedtorecordtransactionsofcertainkind.Itismuchsimplerandmoreefficienttogrouptogetherthosetransactionswhicharerepetitivesuchassales,purchases,cashreceiptsandcashpaymentsandplaceeachoftheminaspecialjournal.3.LedgersThecompletesetofaccountsforabusinessentityiscalledaledger.Itisthe“referencebook’’oftheaccountingsystemandisusedtoclassifyandsummarizetransactionsandtopreparedataforfinancialstatements.Therearetwotypesofledgers—generalledgerandsubsidiaryledger.(1)GeneralLedgerAgeneralledgercontainsaspecificaccountforeachitemlistedonthefinancialstatementsandshowshoweachtransactionchangesthebalancesoftheseaccounts.Acompany’ssizeanddiversityofoperationsaffectthenumberofaccountsneeded.Asmallcompanycangetbywithasfewas20or30accounts;alargecompanycanrequireseveralthousand.Exhibit2-3showsapartialchartofaccountsforasmallcompany.Exhibit2-3ChartsofAccountsAccountNumberAccountNameCashAccountsreceivableSuppliesPrepaidinsuranceEquipment201Accountspayable236Unearnedrevenue307CommonStock319Dividends403Feesrevenue406Rentalrevenue622Salariesexpense637Insuranceexpense640Rentexpense652Suppliesexpense690Utilitiesexpense(2)SubsidiaryLedgersFurthersimplificationofthegeneralledgerisbroughtaboutbytheuseofsubsidiaryledger.Transactionsarefirstrecordedinthejournal,andatspecifiedintervalsthesametransactionsarerecordedinboththegeneraland,whenappropriate,subsidiaryledgeraccounts.Thebalancesinthegeneralledgerarethenusedtopreparefinancialstatements.4.PostingTransactionsPostingistheprocessofcopyingjournalentryinformationfromthejournaltotheledger.Thepostingofjournalentrytoledgerisperformedinthefollowingsteps:(1)Recordthedateandtheamountoftheentryintheaccount.(2)InsertthenumberofthejournalpageinthePostingReferencecolumnoftheaccount.(3)InserttheledgeraccountnumberinthePostingReferencecolumnofthejournal.Topic3：TheTrailBalanceTheequalityofdebitsandcreditsintheledgeristestedperiodicallybypreparingatrialbalance,whichliststhebalanceineachaccountafterthepostingprocesshasbeencompleted.Thetrialbalanceispreparedusingthefollowingprocedures:(1)Determinethebalanceofeachaccountintheledger.(2)Listeachaccountandplaceitsbalancebesideit.(3)Computethetotalofthedebitbalances.(4)Computethetotalofthecreditbalances.(5)Verifythatthesumofthedebitbalancesequalsthesumofthecreditbalances.Eachamountinthetrialbalanceissimplythefinalbalanceofeachaccountintheledger.Topic4:AdjustingProcedures1.TheneedforadjustmentsForpurposesofmeasuringincomeandpreparingfinancialstatements,the1ifeofabusinessisdividedintoaseriesofaccountingperiods.Butsometransactionsaffectedtherevenueorexpensesofmorethanoneperiod.Therefore,adjustingentriesareneededwhenevertransactionsaffecttherevenuesorexpensesofmorethanoneaccountingperiod.2.AdjustingtheAccountsAdjustingentriescanbedividedintodeferralsandaccruals.Eachadjustmentaffectsboththebalancesheetandincomestatement.Theadjustmentscanbefurtherdividedintofivecategories:prepaidexpenses,depreciation,unearnedrevenues,accruedexpenses,andaccruedrevenues.(1)PrepaidExpensesAprepaidexpenseisaneconomicbenefitthathasbeenpaidforinadvanceofitsuse.Itrequiresadjustmentbecausethecashispaidinoneperiod,buttheresourceisnotcompletelyuseduntilalaterperiod.Therearetwomethodstoadjustprepaidexpenses.>Assetmethod.Ifprepaymentsareinitiallyrecordedasassets,theywillbeincorrectlystatedduringtheaccountingperiodastheyareconsumed.Thismustbeadjustedattheendoftheaccountingperiodtoreflecttheamountused.Partoftheassetortheentireassethasbecomeanexpense.Theadjustingentryrequiresadebittoanexpenseaccountandacredittoanassetaccounts,asfollows:ExpensexxxAssetxxx>Expensemethod.Prepaymentsinitiallyrecordedasexpenseswillbeimproperlystatedduringtheaccountingperiodandmustbeadjustedattheendoftheaccountingperiodtoreflecttheamountoffuturebenefitremainingandtoavoidoverstatingexpenses.(2)DepreciationDepreciationistheallocationofthecostofaplantassettoexpenseoveritsusefullife.Theamountoftheassetusedinaperiodisdeterminedbyallocatingthenetamortizablecostoftheasset(originalcostlessexpectedtrade-inallowance)overtheexpectedusefullifeoftheasset.Thegeneralformatoftheentrytorecorddepreciationexpenseofanassetisshownasfollows:Expense(Depreciationexpense)xxxAsset(Accumulateddepreciation)xxx(3)UnearnedRevenuesUnearnedrevenues(alsocalledadvancefromclientsordeferredrevenue)representspaymentreceivedforgoodsorservicesinadvanceoftheirdelivery.Unearnedrevenueariseswhenabusinessreceivescashinoneperiodbutdoesnotearnallofituntilalaterperiod.Thus,unearnedrevenueisaliabilitybecausethebusinessowesthecustomeragoodorservice.Thereceiptofthecashwouldincreasecashanincreasealiability.Whentherevenueisearned,theadjustmentwouldusuallydecreasetheliabilityandincreasetherevenue.(4)AccruedExpenseAnaccruedexpenseisrecordedbypreparinganadjustingentry.Anadjustingentryisrequiredbecauseanexpensehasbeenincurredduringtheaccountingperiodbutithasnotbeenrecordedthroughthenormalcourseofaccountingentries.Accordingtothematchingprinciple,theseaccruedexpensesmustberecordedintheperiodthattheeffortwasexpended.(5)AccruedRevenueAccruedrevenueisrecordedbypreparinganadjustingentry.Anadjustmententryisrequiredbecauserevenuehasbeenearnedduringtheaccountingperiodbutishasnotbeenrecordedthr