《实用会计英语》（第四版）教学课件 PPT chapter7.ppt

7.5 Shareholders’ Equity Accounting for Retained Earnings: The amount of Retained Earnings represents the cumulative net income of the firm since its beginning, less the total dividends that have been distributed to shareholders. It is important to note that Retained Earnings are not the assets themselves, but the existence of Retained Earnings means that net assets generated by profitable operations have been kept in the company to help it grow or to meet other business needs. Corporations earnings are accumulated separately from its paid-in equity capital. Net income is recorded in Retained Earnings by a closing entry in which Income Summary is debited and Retained Earnings is credited. 高等教育出版社 * 7.5 Shareholders’ Equity Accounting for Retained Earnings: 高等教育出版社 * 1. Describe the types of liabilities 2. Identify two kinds of current liabilities 3. Understand how to record non- current liabilities 4. Understand the concept of share capital 5. Understand the concept of shareholders’ equity 高等教育出版社 * Next Unit 8.1 Revenues and Expenses 8.2 Business Income 8.3 Some Generally Accepted Accounting Principles 8.4 Adjustment to the Accounts 8.5 Adjusted Trial Balance 8.6 Preparing the Financial Statements from the Adjusted Trial Balance * * “ ” “ ” Unit 7 Liabilities and Shareholders’ Equity 葛军 吴晓华 高等教育出版社 * Outline of Unit 7 7.1 Types of Liabilities 7.2 Current Liabilities 7.3 Non-current Liabilities 7.4 Share Capital 7.5 Shareholders’ Equity 高等教育出版社 * Accounting Equation 高等教育出版社 * 7.1 Types of Liabilities Definition: A liability is something which a firm owes to a person or another firm. It may be in the form of creditors - people or firms who have sold you goods which you have not yet paid for, or it may be money borrowed from a financial institution - loans or overdrafts. Liabilities are amounts owed by a business to external parties. Liabilities may be defined as debts or obligations arising from past transactions or events that require settlement at