国际会计英语 Chapter 2.pptVIP

Chapter 2 Double Entry System in International Accounting System Movement of Accounting Equation At the beginning of the accounting period: Assets=liabilities+Owner’s equity During the accounting period Assets’=liabilities’+Owner’s equity+(Income-cost or expenses) Because: Income-cost or expenses=profit And profit∈Owner’s equity ∴at the end of the accounting period the accounting equation is show as: Assets’=liabilities’+ Owner’s equity’ Rules of debit and credit entries The rules of debit and credit entries are quite similar with that we have learned in Chinese accounting system