专业英语会计学chap004概述.pptVIP

;Learning objectives;;; Converting assets to expenses;Prior Periods;Examples Include: Depreciation Supplies Expiring Insurance Policies;;Initially, costs that benefit more than one accounting period are recorded as assets. ;The costs are expensed as they are used to generate revenue.;Income Statement Cost of assets used this period to generate revenue.;Depreciation is the systematic allocation of the cost of a depreciable asset to expense.;The portion of an asset’s utility that is used up must be expensed in the period used.;On May 2, 2005, JJ’s Lawn Care Service purchased a lawn mower with a useful life of 50 months for $2,500 cash. Using the straight-line method, calculate the monthly depreciation expense.;JJ’s Lawn Care Service would make the following adjusting entry.;JJ’s $15,000 truck is depreciated over 60 months as follows: ;Accumulated depreciation would appear on the balance sheet as follows: ;Prior Periods;Examples Include: Airline Ticket Sales Sports Teams’ Sales of Season Tickets;;Initially, revenues that benefit more than one accounting period are recorded as liabilities. ;Over time, the revenue is recognized as it is earned.;Income Statement Revenue earned this period.;Prior Periods;Examples Include: Interest Wages and Salaries Property Taxes;;Initially, an expense and a liability are recorded.;Income Statement Cost incurred this period to generate revenue.;;The liability is extinguished when the debt is paid.;Prior Periods;Examples Include: Interest Earned Work Completed But Not Yet Billed to Customer;;Initially, the revenue is recognized and a receivable is created.;Income Statement Revenue earned this period.;;The receivable is collected in a future period.;As a corporation earns taxable income, it incurs income taxes expense, and also a liability to governmental tax authorities.;Costs are matched with revenue in two ways:;An item is “material” if knowledge of the item might reasonably influence the decisions of users of financial statements.;