武汉理工大学：《会计学》课程教学课件（英文）02 Balance Sheet Changes;Income Measurement

2ChapterBalance Sheet Changes;Income MeasurementWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Balance Sheet Changes; Income Measurement Chapter 2

Learning ObjectivesC1: Explain the meaning of the principal itemsreported on a balance sheet.C2: The major elements of income statement.C3: The relationship between balance sheet itemschanges and revenue/expenseWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Learning Objectives C1: Explain the meaning of the principal items reported on a balance sheet. C2: The major elements of income statement. C3: The relationship between balance sheet items changes and revenue/expense

1.OperatingCycleCashCollectionsPurchasesInventoriesReceivablesSalesWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Receivables Cash Inventories Collections Purchases Sales 1. Operating Cycle

2. Current AssetsCurrent assets are cash and other assets that areexpected to be converted into cash, sold, orconsumed within one year or the normaloperating cycle, whichever is longer. Cash and cash equivalentTemporary investments in marketablesecurities Accounts and notes receivableInventoriesPrepaid itemsWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Current assets are cash and other assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer. 2. Current Assets • Cash and cash equivalent • Temporary investments in marketable securities • Accounts and notes receivable • Inventories • Prepaid items

Cash includes cash on hand and readilyavailable in checking and savings accountsCash equivalents are risk-free securities, suchas money market funds and treasury bills thatwill mature in three months or less from thedate acquired by the holderWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Cash includes cash on hand and readily available in checking and savings accounts. Cash equivalents are risk-free securities, such as money market funds and treasury bills that will mature in three months or less from the date acquired by the holder

Cash and Cash EquivalentsMoneyChecksOrdersCashandCashEquivalentsBankDraftsCertificatesof DepositT-BillsWHUTAccountingdepartmentof managementschool

WHUT Accounting department of management school Cash and Cash Equivalents Cash and Cash Equivalents Checks Money Orders Bank Drafts Certificates of Deposit T-Bills

Temporary investments in marketablesecurities include debt and equity securitiesthat are classified as “trading securities" and“available-for-sale securities.""Receivables include accounts receivableandnotes receivable with short-term maturitydates.WHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Temporary investments in marketable securities include debt and equity securities that are classified as “trading securities” and “available-for-sale securities.” Receivables include accounts receivable and notes receivable with short-term maturity dates

Notes ReceivableTerm$1.200nuary5.2011Goleta, CAPayeeafter datpromiseto pay toSixtydaysPrincipalDeckersOutdoorCorporationtheOne thousand two hundredDollarsFiInterest RatenalBankPayable atMaker12%Value received with interest atnnumpeIvan GoodsonNo.10242_DueMarch6,2011Goodson Sporting GoodsDue DateWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school $1,200 Goleta, CA January 5, 2011 Sixty days after date I promise to pay to the order of Deckers Outdoor Corporation One thousand two hundred - Dollars Payable at First Goleta National Bank Value received with interest at per annum No. Due Goodson Sporting Goods 10242 March 6, 2011 12% Ivan Goodson Notes Receivable Due Date Maker Interest Rate Principal Term Payee

Inventories include goods held for resale in the normalcourse of business plus, in the case of a manufacturingcompany, raw materials and goods in process inventories.Merchandise inventory includes all goods thata company owns and holds for sale, regardlessof where the goods are located when inventoryis counted.Items specialGoods inGoods onTransitConsignmentWHUTAccountingdepartmentofmanagementschool

WHUT Accounting department of management school Inventories include goods held for resale in the normal course of business plus, in the case of a manufacturing company, raw materials and goods in process inventories. Merchandise inventory includes all goods that a company owns and holds for sale, regardless of where the goods are located when inventory is counted. Items special Goods in Transit Goods on Consignment

3.NoncurrentAssetsLong-termInvestmentsProperty, plant.and equipment·IntangibleAssetsWHUTAccountingdepartmentofmanagementschoo

WHUT Accounting department of management school • Long-term Investments • Property, plant, and equipment • Intangible Assets 3. Noncurrent Assets