中山大学：《基础会计学》（英文版）Lesson 2 Business Transactions and Accounting Equation

m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 2 Business Transactions and Accounting Equation Task eam of PUJADAMIEAML ACCOUNYAVA School of business. sun yat-sen niversity

Lesson 2 Business Transactions and Accounting Equation Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University

Outline ◆ Enterprises Q Accounting transactions, Accounting Events, and accounting circumstances Q Economic Activities and Accounting Elements ◆ Accounting equation Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

2 Outline ⧫Enterprises ⧫Accounting Transactions, Accounting Events, and Accounting Circumstances ⧫Economic Activities and Accounting Elements ⧫ Accounting Equation

Opening Story Q Funding and Spending at College D Assets of a college student Cash CD player Computer n Funding these assets Sponsored by parents Sponsored by relatives 一→ Borrowed from relatives and acquaintance Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3

3 Opening Story ⧫Funding and Spending at College  Assets of a college student →Cash →CD player →Computer  Funding these assets →Sponsored by parents →Sponsored by relatives →Borrowed from relatives and acquaintance

Opening Story(continued Q We could deal with the above-mentioned financial issues from the following perspectives: n How do we fund our daily expenditures and possessions n How do we spend the"funds which we have sourced? n What about the relationship between the "funds which we have sourced and our daily expenditures and possessions? Task Team of FUNDAMEntALaCCOUNtING Business Sehool. Sun )af sen University

4 Opening Story (continued） ⧫ We could deal with the above-mentioned financial issues from the following perspectives：  How do we fund our daily expenditures and possessions？  How do we spend the “funds” which we have sourced？  What about the relationship between the “funds”which we have sourced and our daily expenditures and possessions？

Enterprises Q Concept of Enterprise Definition of“ enterprise” n Functions of an enterprise n Characteristics of an enterprise Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5

5 Enterprises ⧫Concept of Enterprise  Definition of “enterprise”  Functions of an enterprise  Characteristics of an enterprise

Forms of Enterprise C There are three major forms of enterprise I Sole-proprietorship D Partnership D Corporations Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

6 Forms of Enterprise ⧫There are three major forms of enterprise:  Sole-proprietorship  Partnership  Corporations

Sole proprietorships Q Single person owns the business Q Not separate from its owner in terms of responsibility and liability C The business is the owner and the owner is the business Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7

7 Sole proprietorships ⧫Single person owns the business ⧫Not separate from its owner in terms of responsibility and liability ⧫The business is the owner and the owner is the business

Partnership Q Owned by two or more people 9 Similar to a sole proprietorship Q Not separate from the owners in terms of responsibility and liability Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

8 Partnership ⧫Owned by two or more people ⧫Similar to a sole proprietorship ⧫Not separate from the owners in terms of responsibility and liability

Corporations Q Legally separate and financially separate from the owners Q Ownership in a corporation is divided into units called shares of capital stock Q Owners are called shareholders or stockholders Q Corporations are separate legal entities Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

9 Corporations ⧫Legally separate and financially separate from the owners ⧫Ownership in a corporation is divided into units called shares of capital stock ⧫Owners are called shareholders or stockholders ⧫Corporations are separate legal entities

Characteristics of Enterprise Characteristics Proprietorship partnership Corporation Business entity yes yes Legal entity ves Limited liability no no no no yes Business taxed no One owner allowed yes Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 0

10 Characteristics of Enterprise Characteristics Proprietorship Partnership Corporation Business entity yes yes yes Legal entity no no yes Limited liability no no yes Unlimited life no no yes Business taxed no no yes One owner allowed yes no yes