商务知识导读课件u7aAccounting.ppt

商务知识导读 Unit 7 Finance Learning goals Describe the meanings of accounting. Introduce some important terms related to accounting. Understand the implications of accounting through reading a case story. Structure Lead-in Professional reading Case story Further reading 1. Lead in words explanation cash flow fiscal year (or financial year) financial statement balance sheet income statement owner’s equity profit margin current asset fixed asset liabilities Debtor creditor 2. Professional reading Easy Way to Understand Accounting Terms by K.A. Francis, Demand Media Assets = Liabilities + Owner’s Equity is the principal equation for accounting. Many business owners understand the importance of the words, but not what they mean. Throw in debits, credits, ledgers and journals and a business owner’s head might start spinning. Accounting terms are foreign to most people who have not studied accounting, but for a business to run successfully, a certain amount of accounting understanding is required. A business owner does not have to be an accountant, but it means understanding some of the terms. Step 1 Divide accounts into assets and liabilities. An asset is an item the business owns and has a cash value. Cash, office equipment, vehicles, buildings, inventory and investments are examples of business assets. Liabilities are dollar amounts a business owes to creditors. Examples of liabilities include money owed on accounts to other businesses, credit card balances, wages owed to employees, and vehicle loans and building mortgages. Step 2 Understand the difference between debits and credits. Debits and credits are used to represent money that comes in and goes out of a business. When an asset is increased, it is debited; when an asset is decreased, it is credited. For example, if a customer makes a $100 purchase on account, the asset accounts receivable is debited. When that customer comes back and pays off his account, the asset accou