基础会计学英语精品课件二.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 6 6 6 6 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 81 81 81 81 * 85 85 85 85 * 90 90 90 90 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Adjusting Entries Reversing Entries Transactions not recorded in Special Journals * Computerized accounting systems have become more widely used as the cost of computer hardware and software has declined Why did we study manual accounting systems? The concepts for a manual system has also apply to computerized systems * * Computerized accounts receivable system Invoice file Cash receipt file Customer account balance customer invoice, and cash receipts summary report Customers Electronic Accounts Receivable subsidiary and general ledgers Customer Checks Customer Invoices * * * * * * * * * * * * * * * * * * * * * * * * * Step 1 * Step 2 Northeast Pharmaceutical When preparing financial statement of 1996, Northeast Pharmaceutical recorded RMB 21,280,000 expenses as inventory cost, which carries to next year’s beginning inventory. As a result, the bottom line is RMB 19,950,000 profits, instead of a big loss. This was discovered and was fined by CSRC as securities fraud. * Required: What’s the difference between expenses and inventory costs? What are the impacts of inventory errors on financial statements? Why Northeast Pharmaceutical chose to report false income numbers? How to prevent the occurrence of such kind of cases. * Inventory includes all goods owned by a company and held for sale. Costs of merchandise inventory include all expenditures necessary to bring an item to a saleable condition and location. There are four method to assigning costs to inventory: specific identification, FIFO, LIFO and average cost. The average cost method smoothes out purchase price changes. Ending inventory under FIFO approximates current replacement cost. LIFO better matches current cost in cost of goods sold with reven