《会计学原理》课程教学课件（英文讲稿）Chapter 2 Accounting Cycle（Ⅰ）

Chapter 2Accounting Cycle（I)AccountingEquationThe Account and Double-Entry AccountingAnalyzing the TransactionsJournalizingtheTransactionsPostingPreparing the Unadjusted Trial Balance

Chapter 2 Accounting Cycle (Ⅰ)  Accounting Equation  The Account and Double-Entry Accounting  Analyzing the Transactions  Journalizing the Transactions  Posting  Preparing the Unadjusted Trial Balance

Accounting equationsEconomicResourcesClaims to EconomicResourcesAssetsLiabilities + Owner'sEquityNetIncomeRevenues-expensesLiabilities +Owner'sAssets + expensesEquity +Revenues

Accounting equations Economic Resources Claims to Economic Resources Assets = Liabilities + Owner’s Equity Revenues- expenses = Net Income Assets + expenses = Liabilities + Owner’s Equity + Revenues

The Accounting EquationLiabilitiesAssetsOwnersEquityTahitiesmersEaut4ssets

AssetstheAssetsofarearesourceseconomicbusinessthat are expected to be of benefit inthe futureTheofmosttypesassetsarecommoncash,receivables,investments,officesuppliesmerchandise, furniture, land, and buildings

Assets Assets are the economic resources of a business that are expected to be of benefit in the future. The most common types of assets are cash,receivables, investments,office supplies, merchandise, furniture, land, and buildings

LiabilitiesLiabilitieswhichoutsiderclaimsarearepayabletoobligations-debtseconomicoutsidersThese outsider parties are called creditorsForpayable,example,notesaccountsliabilities(payable, accruedforexpensesincurred but not paid), long-term liabilities

Liabilities Liabilities are “outsider claims”, which are economic obligations-debts payable to outsiders. These outsider parties are called creditors. For example, notes payable, accounts payable, accrued liabilities( for expenses incurred but not paid), long-term liabilities

Owner's Equity“insider claims held by theOwner's equity areowners of the business, also called capitalOwner'smeasuredequitysubtracting1Sliabilities from assets

Owner’s Equity Owner’s equity are “insider claims” held by the owners of the business, also called capital. Owner’s equity is measured by subtracting liabilities from assets

RevenueRevenuethe1Sincreaseinowner's equitygoodscreatedbydeliveringor services tocustomers or clientsRevenuesalescomprisesservicerevenue,interest revenue, and etcrevenue

Revenue Revenue is the increase in owner’s equity created by delivering goods or services to customers or clients. Revenue comprises service revenue, sales revenue, interest revenue, and etc

ExpenseExpense is the cost of operating a businesseffect ofExpenseshave theoppositerevenues, so they decrease owner's equityTheincludeofcommontypesexpensessellingsalaryrentexpenses,expense,expenses,administrativeexpense, financingexpenses,and etc

Expense Expense is the cost of operating a business. Expenses have the opposite effect of revenues, so they decrease owner’s equity. The common types of expenses include selling expenses, salary expense, rent expense, financing expenses, administrative expenses, and etc

Net Income(or Loss)Net income is the difference betweenrevenues and expenses during a givenperiodRevenue-ExpenseNet Income(R> E)三Revenue- ExpenseNet Loss (R<E)三

Net Income( or Loss) Net income is the difference between revenues and expenses during a given period. Revenue – Expense = Net Income( R > E) Revenue - Expense = Net Loss ( R < E)

CaseoneYou start a business and place $10,000in a bank account. The $10,000 in thebank is considered to be an asset. Theequity (financial value) of the businessis equal to its assets

Case one  You start a business and place $10,000 in a bank account. The $10,000 in the bank is considered to be an asset. The equity (financial value) of the business is equal to its assets