Homework(learning outcome1,2a,3).doc

Learning outcome 1 Understand the basic concepts of accounting, explain the double-entry accounting. ASSESSMENT CRITERIA: Explain the accounting meaning of assets, liabilities, and equity. Understand the five of the nine concepts that govern all accounting. Learning outcome 2 Explain and prepare the balance sheet, the income sheet and the statement of cash flows. ASSESSMENT CRITERIA: Define the meaning of the principal items reported on a balance sheet and explain how several types of transactions change the amounts reported on the balance sheet. Learning outcome 3 Explain the accounting records and systems. ASSESSMENT CRITERIA: Explain the nature of the account and how entries are made to accounts. Explain the meaning of debits and credits. Use of the ledger and the journal. Ⅰ. Basic concepts 1. Dual-aspect concept: ( ) = ( ) + ( ) 2.Money-measurement concept: Accounting reports only facts that can be expressed in ＿＿＿ ＿＿＿ . 3. Entity concept : Accounts are kept for an ＿＿＿ as distinguished from the ＿＿＿ associated with that entity. 4. The accounting concept that assumes that an entity will continue to operate indefinitely and that it is not about to be sold is ＿＿＿ - ＿＿＿ concept. 5. Asset – measurement concept : Accounting focuses on the ＿＿＿ ＿＿＿ of monetary assets; nonmonetary assets are reported at an amount based on cost. Ⅱ. Translate the following sentences into Chinese After recording each transaction, the equation should still be in balance; the totals both sides of the equation should always be equal. Since the equation should balance after recording each business transaction, the double-entry system also helps us to check whether we have made any arithmetic mistakes recording business transactions. The left side of a T account is the debit side, and the right side is the credit side. Assets, liabilities, and owner’s equity are the three basic elements of accounting. Owner’s equity is also called net assets which are the difference between