会计学原理PPTChap004.pptVIP

Conceptual Chapter Objectives C1: Explain why temporary accounts are closed each period C2: Identify steps in the accounting cycle C3: Explain and prepare a classified balance sheet Procedural Chapter Objectives P1: Prepare a worksheet and explain its usefulness P2: Describe and prepare closing entries P3: Explain and prepare a post-closing trial balance * * * * * * * * * Let’s look at FastForward’spost-closing trial balance. Post-Closing Trial Balance List of permanent accounts and their balances after posting closing entries. Total debits and credits must be equal. P 3 Post-Closing Trial Balance P 3 Accounting Cycle C 2 Current items are those expected to come due (both collected and owed) within the longer of one year or the company’s normal operating cycle. Classified Balance Sheet C 3 Current assets are expected to be sold, collected, or used within one year or the company’s operating cycle. C 3 Long-term investments are expected to be held for more than one year or the operating cycle. C 3 Plant assets are tangible long-lived assets used to produce or sell products and services. C 3 Intangible assets are long-term resources used to produce or sell products and services and that lack physical form. C 3 Current liabilities are obligations due within the longer of one year or the company’s operating cycle. C 3 Long-term liabilities are obligations not due within the longer of one year or the company’s operating cycle. C 3 Equity is the owner’s claim on the assets. C 3 Global View The definition of an asset is similar under U.S. GAAP and IFRS and involves three basic criteria: the company owns or controls the right to use the item, the right arises from a past transaction or event, and the item can be reliably measured. Both systems define the initial asset value as historical cost for nearly all assets. The definition of a liability is similar under U.S. GAAP and IFRS and involves three basic criteria: (1) the item is a present obligation requiring