会计英语SummryofaccountingEnglish.ppt

* Explain that chartered * All professions have regulations. Accounting is no different. The major organizations that influence the profession are shown here. In the public sector, the Securities and Exchange Commission (SEC) requires companies to have their financial statements audited by independent accountants. In the private sector, the FASB determines how accounting is practiced in the United States, which is put forth in generally accepted accounting principles, called GAAP. The American Institute of Certified Public Accountants and the Institute of Management Accountants in the private sector work closely with both the SEC and the FASB. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * what is the disposing of plant asset? selling, exchanging, discarding Gain/loss is reported on the income statement and closed to Income Summary Disposing by Discarding Example Accumulated Depreciation Loss on disposal Equipment To record discarding of equipment 2. Cash Accumulated Depreciation Loss on Sale of Equipment Equipment To record sale of equipment 3. Equipment (new) Accumulated Depreciation (old) Equipment (old) Cash To record exchange of equipment Accounting for Natural Resources The accounting for natural resources is similar to that of plant asset (Cost – Residual value) ÷ Estimated units of natural resources = Depletion per unit Jan 1 Trade in motor-carrier equipment with accumulated depreciation of $90,000 (cost of $130,000) for similar new equipment with a cash cost of $176,000. lewis received a trade-in allowance of $70,000 on the old equipment and paid the remainder in cash. July 1 sold a building that cost $550,000 and that had accumulated depreciation of $250,000 through december 31 of the preceding year. depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $50,000. lewis received $100,000 cash and a $