基础会计学英文版Lesson02-enBusiness Transactions and Accounting Equation.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Uses of Funds Uses and changes of funds Beauty Photo Store From cash to equipment Using equipment to produce photos From photos to cash * Circulation of Funds Circulation of funds: Uses of funds Beauty Photo Store Cost of equipment Cost of supplies Human costs？ Uses and payoff of funds What are the operating purposes for Beauty Photo Store？ * Payoff of Funds Payoff of Funds and Revenues Cash receptions and revenues by Beauty Photo Store Net increase of funds and profit Difference between uses and payoff of cash？ Nature of profit? * Accounting Transactions Accounting transactions-Economic exchange between two different accounting entities Mutual exchange A purchases an asset,paying cash or bearing the responsibility of paying cash in future B sells the asset, earning the rights of receiving or collecting cash One-way transaction Investments or donations to another accounting entity * Accounting Events Accounting events-internal transferring of resources among departments of a same entity allotments of raw materials for plants Damages caused by earthquakes External versus internal events Between different entities Within a same entity * Accounting Circumstances Accounting circumstances-usually an outcome of collaboration of multiple events Circumstances and their impacts Changes in prices,exchange rates How to determine these changes？ E.g. uncollectability of receivables due to the liquidation of the debtor Unpredictability * Accounting Elements Assets Liabilities Owners’equity Revenues Expenses Profits * Assets Assets are economic resources owned by a business that are expected to be of benefit in the future. * Further Thoughts on Assets Human resources as an asset？ Value and labor of Manager of Beauty Photo Store？ Cameramen and shop assistants？ Natural resources as an asset? * Liabilities Liabilities are creditor’s claims to the assets. Liabilities are obligations t