会计英语 全套课件.ppt

Unit 1 Introduction to Accounting 1.Definition of Accounting 2.Users and classifications of Accounting 3.Accounting Assumptions and Principles 4.Financial Statements What is Accounting? Bean-counting? Hero of action? Art ? Technique? Your answer? Early accounting & modern accounting What is Accounting? Accounting is an information system that identifies, records, and communicates the economic events (transactions) of an organization to interested users for the purpose of decision-making. Process of accounting Users and Classification Accounting assumption Only transaction data that can be expressed in terms of money be included in the accounting records. Every economic entity must be separately identified and accounted for. The economic life of a business can be divided into artificial time periods The enterprise will remain in operation in the foreseeable future unless sufficient and negative proofs are provided to stop it. Accounting Principles It requires that assets are recorded at cost when they’re obtained or the expenses incurred on acquisition rather than fair market value. It requires that revenues or expenses to be recorded when revenue are actually realized and when expenses are incurred, rather than when cash is received. It is also called accrual basis accounting. It requires that revenues have to be matched with related expenses or costs in accounting. Financial statements Financial statements are the final product of the accounting process. Relationship of financial statements Summary 1.Definition of Accounting 2.Users and Classifications of Accounting 3.Accounting Assumptions and Principles 4.Financial Statements Questions 1.Financial accounting only provide useful information to internal users. 2. Valuing assets at their liquidation value rather than their cost is inconsistent with which of the following: a. Time period assumption b. Matching principle c. Going concern assumption d. Materiality constraint 1.F