會計英語課件-全英文(已修改)

　

【正文】 CHAPTER 1 The Financial Statements ACCOUNTING THE BASIS OF DECISION MAKING ? Accounting is the “language of business” ? Accounting is the information system that – Measures business activities – Processes that information into reports – Communicates the results to decision makers THE ACCOUNTING SYSTEM: THE FLOW OF INFORMATION 1. People make decisions 2. Business transactions occur 3. Businesses prepare reports to show the results of their operations ACCOUNTING VS. BOOKKEEPING ? Bookkeeping is the procedural element of accounting that processes the accounting data ? Individuals ? Businesses ? Investors and Creditors ? Government Regulatory Agencies ? Taxing Authorities ? Nonprofit Organizations DECISION MAKERS WHO USE ACCOUNTING INFORMATION ? Financial accounting provides information to managers and people outside the firm – Financial accounting information must meet certain standards of relevance and reliability ? Management accounting generates confidential information for internal decision makers, ., – Top executives – Department heads FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING ETHICAL CONSIDERATIONS ? Ethical standards in accounting are designed to produce accurate information for decision making ? The result of ethical behavior by accountants is information that people can rely on for decision making TYPES OF BUSINESS ORGANIZATIONS ? Proprietorships – Have a single owner who is generally the manager – Are business entities, but not legal entities – Have debt for which the proprietor is personally liable TYPES OF BUSINESS ORGANIZATIONS ? Partnerships – Join two or more persons together as coowners – Are business entities, but not legal entities – Have debt for which each partner is personally liable TYPES OF BUSINESS ORGANIZATIONS ? Corporations – Are owned by stockholders or shareholders – Are business entities and legal entities – Are liable for all debts ? Stockholders have no personal obligation for corporation debts ACCOUNTING PRINCIPLES AND CONCEPTS ? Generally accepted accounting principles (GAAP) are – The rules that govern how accountants operate – Based upon a conceptual framework written by the Financial Accounting Standards Board (FASB) ACCOUNTING PRINCIPLES AND CONCEPTS ? The FASB works with the SEC (Securities and Exchange Commission) and the AICPA (American Institute of Certified Public Accountants) KEY ACCOUNTING ORGANIZATIONS Private Sector The FASB determines generally accepted accounting principles Public Sector Law creates the SEC to regulate the stock and bond market in the . GAAP governs accounting information Private Sector Accountants apply GAAP through the AICPA ACCOUNTING PRINCIPLES AND CONCEPTS ? The entity concept –States that an organization is an econo