财务会计英语.ppt

1-,*,Chapter,Introduction to Financial Accounting,1,Main knowledge,Conversations with managers quickly reveal,contradictory,views of accounting.,相互矛盾的,To some,accounting is a dry exercise in“bean counting,.”,会计是一个类似“数豆子”式的枯燥无味的活动。,To others,accounting seems hopelessly subjective,.,会计看上去主观色彩更为浓厚。,2,Main knowledge,There is an old joke about a company president interviewing accountants.,The accountant who got the job had the following interview.,President:“,Whats two plus two,?”,Accountant:“,I dont know.What number did you have in mind,?”,3,Main knowledge,While there may not be a consensus as to whether accounting is more“bean counting”or more shady dealing,most will agree that accounting is extremely important in running an organization.,尽管人们对会计的行政是更加倾向于“数豆子”式的活动还是秘密的交易问题可能还没有取得一致看法,4,Main knowledge,We begin by defining accounting.,We then explore accounting by introducing its basic products:financial statements.,A real companys financial statements serve as a focal point for much of this introduction.,Several examples of decisions that can be improved by considering accounting information are presented and discussed.,6,Main knowledge,Finally,we present the foundation of the framework of economic concepts,accounting conventions,and institutional context on which we base future chapters.,7,Key Terms,1.Accounting conventions,会计惯例,2.Accounts payable,应付账款,3.Accounting valuation,会计估值,4.Accounts receivable,应收账款,8,Key Terms,9.Financial activities,筹资活动,10.Receivables,应收款,11.Balance sheet,资产负债表,12.General administrative expense,一般行政管理费用,10,Key Terms,13.Recognition,确认,14.Cash equivalents,现金等价物,15.Generally accepted accounting principles,GAAP,公认会计准则,16.Retained earnings,留存收益,11,Key Terms,21.Income tax expense,所得税费用,22.Sales revenue,销售收入,23.Disclosure,披露,24.Institutional context,制度背景,13,Key Terms,29.Economic income,经济利润,30.Investing activities,投资活动,31.Wealth,财富,32.Expenses,费用,15,Key Terms,33.Net income,净利润,34.Financial accounting standards board,FASB,财务会计准则委员会,35.Operating activities,经营活动,36.Product development expense,产品开发费用,16,1.1.1 Framework for understanding accounting information,Three things determine the information in accounting reports:,(1)Economic concepts,(2)Accounting conventions,(3)Institutional context,18,1.1.1 Framework for understanding accounting information,Economic concepts,are the ideas that guide the construction of accounting reports.,Accounting conventions,are the rules and customs of accounting that help apply those economic concepts to practical situations.,Institutional context,is the environment that shapes the consequences of adopting specific accounting conventions.,制度背景是指影响采用具体的会计惯例所产生的结果的环境。,19,Financial Statement Construction Process,Operates in its environment.Makes decisions and takes actions to make it economically better or worse,Economic,Concepts,Accounting,Conventions,Institutional,Context,Organization,(Entity),“,Filter”,Financial Reports,Balance Sheet,Income Statement,Cash Flow,Statement,20,What is a Filter?,The,“filters”,can be viewed as the financial process the organization goes through in producing the annual report,specifically the financial statements.,21,1.1.2 Financial Statements,Balance Sheet,Income Statement,Statement of Cash Flows,Statement of Changes in Shareholders Equity,Statement of Retained Earnings,22,Three Big Financial Statements,A,Cash Flow Statement,describes the flow of cash into and out of an organization over a period of time.,现金流量表描述了企业在会计期间现金流入和流出的情况。,24,1.3 Economic Concepts,There are three main economic concepts:,Financial value,Wealth,Economic income,25,1.3.1 Financial Value,Financial value,The amount of money an,item would bring if sold.,Accurate financial valuation depends on how well a market functions.,In a well-functioning market,goods and services will be properly valued.,26,1.3.2 Wealth,Wealth,The sum of the financial values of,all things an organization owns.,Defined by the balance sheet(i.e.,accounting,equation)description:,Assets=Liabilities+Shareholders Equity,SE=A-L,28,1.3.3 Economic income,Economic income,The change in an organizations,Wealth over a period,excluding capital,transactions with its owners.,29,1.4 Accounting Conventions,Accounting conventions arise from practical matters and will,inevitably encompass human judgments,human interactions,and compromises,.,不可避免地包含人类的判断、人们之间的相互影响以及折中处理,Generally Accepted Accounting Principles known as,GAAP,are the commonly understood and accepted conventions for gathering,organizing,and reporting the financial history of an organization in USA.,31,1.4.1 Nature of Accounting Conventions,Generally GAAP applies to one or more of,the following three broad areas:,Accounting Valuation,Recognition,Disclosure,32,Accounting Valuation,Accounting Valuation,-,It is the act of assigning an item a monetary value to be reported in the balance sheet.,会计估值是指对资产负债表上列报的项目赋予货币金额的行为。,33,Recognition,Recognition,It is the act of recording an item in the accounting records.,34,Disclosure,Disclosure,The act of providing information about the organization and construction of its accounting reports.,披露是提供企业信息以及编制会计报告的行为。,35,1.4.2 Factors Affecting GAAP,Market richness,市场的产品丰富程度,Complexity of the transactions,Form of the organization,36,Market richness,A rich market is a well-functioning one,in which many buyers and sellers compete for relatively uniform goods in a setting with low transaction costs.,在该市场中有许多买者和卖者，他们在交易成本较低的环境中争相购买相对而言基本相同的商品。,When markets are rich,GAAP tends to use market valuations to drive the accounting.,37,Complexity of the transactions,When transactions are simple,GAAP is simple.,When transactions are complex,GAAP will be complex.,38,Form of the organization,GAAP differs depending upon the type of business entity(e.g.,sole proprietor,partnership,corporation,not-for-profit,governmental).,39,Organizational Structures,Sole Proprietorship,-owned by one person,Partnership,-owned by more than one person,Corporation,-organized as a separate legal entity and owned by stockholders,40,1.5 Institutional Context,GAAP cannot dictate(guide)exact accounting treatments for all situations,since:,new transactions appear with novel,（新奇的）,items,“human element”in decision making process,Then,who determines GAAP?,41,Who determines GAAP?,Securities and Exchange Commission(SEC),The federal agency that has authority to determine GAAP.,Financial Accounting Standards Board(FASB),A private,not-for-profit organization.,42,Supplements,Other Elements of Annual Reports,Management Discussion and Analysis,Notes to Financial Statements,Auditors Report,43,Management Discussion and Analysis,Covers three aspects of a company:,liquidity,-ability to pay near-term obligations,capital resources,-ability to fund operations and expansions,results of operation,-profitability and efficiency,44,Notes to Financial Statements,Provide additional information not included in body of statements,Do not have to be numeric,45,Auditors Report,Auditor,a professional accountant who conducts an independent examination of the financial accounting data presented by a company.,Auditor gives an unqualified opinion if the financial statements present the financial position,results of operations,and cash flows in accordance with GAAP.,46,Lets do,Some exercises,Exercises,1.The balance sheet lists:(),a.Available resources only.,b.Resources committed only.,c.Available resources,resources committed,and the difference between the two.,d.Available resources,resources committed,and the sum of the two.,Answer:c,48,Exercises,2.Economic concepts are the:(),a.Ideas that guide preparation of accounting reports.,b.Rules that apply to the preparation of accounting reports.,c.Conventions used in the preparation of accounting reports.,d.Regulations enforced by the government in the preparation of accounting reports.,Answer:a,49,Exercises,3.GAAP apply to one or more of three broad areas.These include:(),a.Asset valuation,recognition,and disclosure.,b.Accounting valuation,recognition and disposal.,c.Asset valuation,recognition,and disposal.,d.Accounting valuation,recognition,and disclosure.,Answer:d,50,Exercises,4.The three main economic concepts at the heart of accounting are:(),a.Financial value,organization,and economic income.,b.Financial value,wealth,and economic income.,c.Wealth,leverage,and value.,d.Value,organization,and competition.,Answer:b,51,Exercises,5.Union Plaza Hotel and Casinos consolidated December 31,2001 balance sheet shows assets of$40,513 and liabilities of$39,885.Its shareholders equity is:(),a.$80,398 b.$628,c.$40,513 d.$39,885,Answer:b,52,Exercises,6.All of the following statement are true except one.Which is false?:(),a.Bookkeeping is only a part of accounting.,b.The organization that formulates GAAP is the FASB.,c.Professional accountants are held to a high standard of ethical conduct.,d.A proprietorship is a business with several owners,Answer:b,53,Exercises,7.Which financial statement covers a period of time?:(),a.Income statement b.Balance sheet,c.Statement of cash flows d.Both A and C,Answer:d,54,Exercises,8.The primary objective of financial reporting is to provide information (),a.to the federal government,b.about the profitability of the enterprise,c.on the cash flows of the company,d.useful for making investment and credit decisions,Answer:d,55,