会计专业英语教学课件-chapter-3-Assets.pptxVIP

Chapter 3 Assets 1 Learning Objectives Explain the nature of current assets and non-current assets Understand internal control over cash Compute cost of goods sold and ending inventory by using different methods Understand the depreciation process of plant assets Account for the disposal of plant assets Understand measurement and report of long-term investment 2 Mini Case The following is an excerpt from a conversation between John, the warehouse manager for Leo Wholesale Co., and its accountant, Mike. Leo Wholesale operates a large regional warehouse that supplies produce and other grocery products to grocery stores in smaller communities. John: Mike, can you explain what’s going on here with these monthly statements? Mike: Sure, john. How can I help you? John: I dont understand this last-in, first-out inventory procedure. It just doesn’t make sense. Mike: Well, what it means is that we assume that the last goods we receive are the first ones sold. So the inventory is made up of the items we purchased first. John: Yes, but thats my problem. It doesnt work that way! We always distribute the oldest produce first. Some of that produce is perishable! We cant keep any of it very long or it’ll spoil Mike: John, you don’t understand. We only assume that the products we distribute are the last ones received. We don’t actually have to distribute the goods in this way. John: I always thought that accounting was supposed to show what really happened, it all sounds like “make believe” to me! Why not report what really happens? Identify: (1) What’s wrong with John’s understanding to last-in, first-out inventory procedure? (2) How do you respond to John if you were Mike? Outline of The Chapter Topic 1: Current assets Topic 2: Non-Current Assets 4 Topic 1: Current assets 1. Cash Definition Cash includes currency and coins, balance in checking accounts, and items acceptable for deposit in these accounts, such as checks and money orders received from customers. In