note 001 Basic ConceptsAccounting Equation Financial account 财务会计 知识讲稿.ppt

;Introduction;Identifies; Identifying Business Activities;Users of Accounting Information;Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP).;Accounting Assumption;Separate Business Entity;Going Concern;Monetary Unit;Time Period;Consistency;Accounting Principles;The Historical Cost Principle;Objectivity Principle;Matching Principle;Full Disclosure Principles;Accounting Constraint;Conservatism Concept;Materiality Concept;Assets;Land;Taxes Payable;Owner’s claims on assets;Liabilities;The accounting equation must remain in balance after each transaction.;The accounting equation must remain in balance after each transaction.;;b. Teguh Sdn. Bhd. buys land for $20,000.;ASSETS;ASSETS;ASSETS;ASSETS;ASSETS;ASSETS;ASSETS; The accounts involved are: (1) Cash (asset) (2) J. Scott, Capital (equity);Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) Supplies (asset);Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) Equipment (asset) ;Transaction Analysis; The accounts involved are: (1) Supplies (asset) (2) Equipment (asset) (3) Accounts Payable (liability);Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) Notes payable (liability);Transaction Analysis;Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) Revenues (equity) ;Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) Salaries expense (equity);Transaction Analysis; The accounts involved are: (1) Cash (asset) (2) J. Scott, Withdrawals (equity);Transaction Analysis;Liabilities;Financial Statements;Profit for the period is the difference between Revenues and Expenses.;The profit for the period of $2,200 increases Scott’s capital by $2,200.;The Balance Sheet describes a company’s financial position at a point in time.;The Statement of Cash Flows identifies cash inflows and cash outflows over a period of time.;End of Lecture