会计学Chapter03.ppt

Exercises (in thousand): Journal Entry T-accounts Chapter 3 Operating Decisions and the Income Statement Business Background Learning Objectives The Operating Cycle The Time Period Assumption The Time Period Assumption Learning Objectives Elements on the Income Statement Elements on the Income Statement +Revenue - Expense + Gains - Losses Income before income tax - Income tax (= Income before income tax*tax rate) Net Income EPS (=NI/# of shares of common stock) Learning Objectives Expanded Transaction Analysis Model Learning Objectives Two Accounting Systems Cash Basis Accounting Accrual Basis Accounting Accrual Basis Accounting Revenue Principle Matching Principle Revenue Principle Revenue Principle – Case 1 Revenue Principle – Case 2 Revenue Principle Revenue Principle – Case 3 Revenue Principle – Case 3 Revenue Principle Revenue is recorded according to the revenue principle when the four conditions are met It is regardless of when cash is received Cash may be received before or after revenue recognition, each resulting two transactions: one on the date of the cash receipt and one the date the revenue is earned Matching Principle Matching Principle – Case 1 Matching Principle – Case 2 Matching Principle – Case 2 Matching Principle – Case 3 Matching Principle – Case 3 Matching Principle Expenses are recognized with revenues Regardless of when cash is paid Cash may be paid before or after expense recognition, resulting two transactions: one on the date of the cash payment and one on the date of expense is incurred in generating revenue Analyzing Papa John’s Transactions Learning Objectives How are Financial Statements Prepared? ?Income Statement ?Statement of Retained Earnings ?Balance Sheet Learning Objectives Key Ratio Analysis Financial Analysis 2006 2007 TA $396,000 $372,000 Revenue $825,000 $945,000 Asset turnover ratio for 2007? Competitor’s: 3.11 Comments?