ch02TheStructureandChartofAccounting要点.pptVIP

The Classification of the Account Titles 1. Classified by Economic Content the account titles in the industrial enterprises are classified by economic content into five categories as follows: (1) Assets titles; (2) Liabilities titles; (3) Owners equity titles; (4) Cost titles; (5) Profit titles. The Classification of the Account Titles 2. Classified by the Levels of Details Provided by the Information accountants must provide not only the summarized data and documents but also more details of the information. Consequently, accountants have to establish the general account titles 总分类账户 to summarize the information, and they have to set up the subsidiary account titles 明细分类账户 to show the details simultaneously. Being established and issued by the Ministry of Finance. classify the contents of the accounting elements broadly. established by the enterprise. classify the contents of the accounting elements in detail double-entry复式记账 In the double-entry system, each transaction must be recorded with at least one debit and one credit, and the total amount of the debits must equal the total amount of the credits. Because of the way it is designed, the whole system is always in balance. All accounting systems, no matter how sophisticated, are based on the principle of duality. Accounts Accounts 账户 are the basic storage units for accounting data and are used to accumulate amounts from similar transactions. An accounting system has a separate account for each asset, each liability, and each component of owner’s equity, including revenues and expenses. Whether a company keeps records by hand or by computer, managers must be able to refer to accounts so that they can study their company’s financial history and plan for the future. The T Account The T account is a good place to begin the study of the double-entry system. Such an account has three parts: a title, which identifies the asset, liability, or owner’s equity account; a left side, which