外国会计选读chapter03.pptVIP

Concepts Going-concern concept 持续经营 Assume that a business will continue for an indefinite period. Accounting Period /Time Period Concept会计分期 By dividing the life of the business into accounting periods, one can prepare statements for each period. (monthly, quarterly, semi-annually and annually) Cash Basis of Accounting Accrual Basis of Accounting The accounting concept that supports reporting revenues and related expenses in the same period is called the matching concept , or matching principle 配比原则 Example In its first year of operation, Harris Co. earned $39000 in revenues and received $33000 cash from customers. The company incurred expenses of $22500 but had not paid for $2250 of them at year end. In addition, Harris prepaid $3750 for expenses that would be incurred the next year. Determine the first year’s income under a cash basis and under an accrual basis. Revenue reported when earned Expense reported when incurred Properly matches revenues and expenses in determining net income Requires adjusting entries at end of period Nature of the Adjusting Process External transaction (Explicit) Events such as cash receipts and disbursement, credit purchases and credit sales that trigger really all day-to-day routine entries. Internal transaction (Implicit) Events such as the passage of time that do not generate source documents or visible evidence of the event and are not recognized in the accounting records until the end of the accounting period. Adjustments or Adjusting entries 调整分录 The journal entries that bring the accounts up to date at the end of accounting period Types of Adjustments Deferrals 递延: created by recording a transaction in a way that delays or defers the recognition of an expense or a revenue Deferred expenses / prepaid expenses Deferred revenues / unearned revenues Accruals 应计: created by an unrecorded expense that has not incurred or an unrecorded revenue that has been earned Accrued expenses / accrued liabilities Accrued revenues / accrued as