03FC财务会计英文课件 加拿大会计学英文第六版.ppt

Lesson 3 Measuring Business Income Outline Review of accounting period \Revenue \ Matching principle Time period concept Accrual-basis and cash-basis Adjust the accounts Adjusted Trial Balance Review : Accounting period accounting period refers to dividing the sustained economic activity of accounting entity into a number of pitch period, which called an accounting period. Accounting period can be divided into annual, semi-annual, quarterly. Annual accounting period is the calender year from 1.1 through 12.31 Review : Revenue Revenues (sales) are increases in owners equity arising from increases in assets received in exchange for the delivery of goods or services to customers. When the amount Review : Revenue (cont) Revenue is recorded at the time it is earned ,when the business has delivered goods or services to customers ,regardless of whether cash or another asset has been fully received. Significant risks and rewards of ownership of one asset have been transferred. Review: Matching Principle Matching Principle :Expenses are to be matched in the same accounting period as the revenues they helped to earn. 1.identity all expenses incurred in the accounting period . 2.the amoun of expenses 3.match the expenses to the revenues earned during the same span of time Review: Matching Principle (cont) Expenses 1)Some types of expenses and revenues have a natural link. Raw material costs sales commission 2)Some types of expenses and revenues have a natural link. Monthly rent expenseFixed Salary expense Amortized expense Depreciation expense Accrual-basis and cash-basis The accrual-basis accounting matches revenues earned with expenses incurred.Most businesses use the accrual basis. The cash-basis matches cash receipts and cash payments . It is not satisfactory for most businesses because it results in financial statements that are not comparable from period to period. Cas