武汉理工大学：《会计学》课程教学课件（英文）01 Accounting in Business

Essentialsof AccountingH会计学基础Essentialsol Avccounting8R4E品PTARYONWHUITAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Essentials of Accounting

Chapter 1Accounting in BusinessIntroduction to Accountingand BusinessWHUITAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Chapter 1 Accounting in Business Introduction to Accounting and Business

Conceptual Chapter ObjectivesC1: Purpose and importance of accountingC2: Identify users and uses of accountingC3:Revolution of AccountingC4 : Several key accounting conceptsC5:Elements ofbalancesheetC6: Accounting equation and each of itscomponentsC7: Analyze business transactions using theaccounting equationWHUITAccounting departmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Conceptual Chapter Objectives C1: Purpose and importance of accounting C2: Identify users and uses of accounting C3: Revolution of Accounting C4 : Several key accounting concepts C5: Elements of balance sheet C6: Accounting equation and each of its components C7: Analyze business transactions using the accounting equation

1Importance of AccountingisaIdentifiesAccountingsystem thatRecordsinformationCommunicatesRelevantthat isReliabletohelpusersmakebetterdecisionsComparableWHUTAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Identifies Records Relevant Communicates Reliable Comparable Importance of Accounting Accounting is a system that information that is to help users make better decisions

Definition for AccountingAccounting is a service activity. Itsfunction is to provide quantitativeinformation,primarily financial innature,about economic entities that isintended to be useful in makingeconomic decisions--in making reasonedchoices among alternative courses ofaction."5WHUTAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school 5 Definition for Accounting “Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions-in making reasoned choices among alternative courses of action

1Accounting Activities10Identifying@RecordingBusinessBusinessActivitiesActivitiesCommunicatingBusinessActivities正WHUITAccounting departmentofmanagementschoo

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school  Identifying Business Activities  Recording Business Activities  Communicating Business Activities Accounting Activities

Users of AccountingInformationTwo major classifications of stakeholdersInternal usersExternalusers,who makewho makedecisionsdecisionsdirectlyaffectingconcerningtheirtheinternalrelationship tooperations ofthethe enterprise.enterprise.WHUTAccounting department of managementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school 7 Users of Accounting Information Internal users, who make decisions directly affecting the internal operations of the enterprise. External users, who make decisions concerning their relationship to the enterprise. Two major classifications of stakeholders

MajorInternalandExternalStakeholderGroupsInvestorsGovernmentCommunityBoardofDirectorsAnalystsManagementEmployeesSuppliersCustomersCreditorsWHUITAccounting departmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school 8 Investors Community Board of Directors Management Employees Suppliers Creditors Customers Analysts Government Major Internal and External Stakeholder Groups

The Accounting ProfessionTPrivateaccountingPublic60%accounting25%Government.not-for-profit.&education15%WHUTAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school The Accounting Profession Government, not-for-profit, & education 15% Public accounting 25% Private accounting 60%

The Evolution of AccountingThe birth of double-entrybookkeeping,An Italian monk wrote a bookto recorda method used by some business men ;AnotherstoryItalian commodity economy, developed bankbusiness;DEB:the symbol ofaccounting science;10WHUTAccounting departmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school 10 The Evolution of Accounting  The birth of double-entry bookkeeping;  An Italian monk wrote a book to record a method used by some business men ;  Another story  Italian commodity economy, developed bank business;  DEB: the symbol of accounting science;