中南财经政法大学：《中级会计学 Intermediate Accounting》课程电子教案（PPT课件讲稿，英文版）Chapter 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

3 The Balance sheet and Statement of Changes in Stockholders'Equity ntermediate Accounting Accounting School. Zhongnan

3 The Balance Sheet and Statement of Changes in Stockholders’ Equity Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学

1.Interrelationship of financial statements Statement of Cash Flows Cash From Op s 973,000 Cash From Inv (1, 188,000) Cash From Fin 245000 Net Increase 30.000 Beg. Ca 80.000 End. Cash S 110.000 Balance sheet 12/31/XO Balance sheet 12/31/X1 Income statement Cash $80,000 450.000 Revenues $12443 000 Cash $110,000 4,630,000 Expenses 11, 578400 Other 4975000 Net Income 864_600 Total $5,085000 Liabilities $2.970.000 Stock 900.000 Liabilities $2.860.400 Statement of R/E Stock 1,000,000 Retained earnings R/E Total $4630.000 1224600 R/E12/31/X0$760,000 $5,085000 Net Income 864.600 Dividends (400000) R/E12/31/X1$1,224.600

Balance Sheet 12/31/X0 Cash $ 80,000 Other 4,550,000 Total $4,630,000 Liabilities $2,970,000 Stock 900,000 R/E 760,000 Total $4,630,000 Statement of Cash Flows Cash From Op $ 973,000 Cash From Inv (1,188,000) Cash From Fin 245,000 Net Increase $ 30,000 Beg. Cash 80,000 End. Cash $ 110,000 Statement of Retained Earnings R/E 12/31/X0 $ 760,000 Net Income 864,600 Dividends (400,000) R/E 12/31/X1 $1,224,600 Revenues $12,443,000 Expenses 11,578,400 Net Income $ 864,600 Income Statement Cash $ 110,000 Other 4,975,000 Total $5,085,000 Liabilities $2,860,400 Stock 1,000,000 R/E 1,224,600 Total $5,085,000 Balance Sheet 12/31/X1 1. Interrelationship of financial statements Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders Equi 2 Elements of the Balance sheet An item of information to be recognized as an element (i.e. formally recorded and reported in the body of the financial statements), an item must (a)meet the definition of an element as specified in FASb Statement of Concepts no 6 v(b) be measurable (c)be relevant, and ( d)be reliable

2. Elements of the Balance Sheet ➢ An item of information to be recognized as an element (i.e. formally recorded and reported in the body of the financial statements), an item must ✓ (a) meet the definition of an element as specified in FASB Statement of Concepts No. 6 ✓ (b) be measurable ✓ (c) be relevant, and ✓ (d) be reliable. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Elements of the Balance sheet-Assets The inclusion of Assets probabl acknowledges Probable future that accounting economic benefit obtained or controlled s not an exact science by a particular entity as a result of past transactions or events

Elements of the Balance Sheet — Assets Assets Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events The inclusion of “probable” acknowledges that accounting is not an exact science. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders Equi Elements of the Balance sheet-Assets Assets The primary purpose of the Probable futurre balance sheet is economic benefit to help forecast obtained or controlled the future by a particular entity as a result of past transactions or events

Elements of the Balance Sheet — Assets Assets Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events The primary purpose of the balance sheet is to help forecast the future. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders Equi Elements of the Balance sheet-Assets Assets Probable future Substance economic benefit over form obtained or controlled by a particular entity as a result of past transactions or events

Elements of the Balance Sheet — Assets Assets Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events Substance over form. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders Equi Elements of the Balance sheet-Assets Assets may be natural or man-made tangible or intangible, and exchangeable or useful only in the companys activities

Elements of the Balance Sheet — Assets Assets may be natural or man-made, tangible or intangible, and exchangeable or useful only in the company’s activities. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Elements of the Balance sheet Liabilities Obligation Liability Includes legal Probable future sacrifice of moral. soclal economical benefit arising and imp died from a present obligation commitments of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events

Elements of the Balance Sheet — Liabilities Liability Probable future sacrifice of economical benefit arising from a present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. “Obligation” includes legal, moral, social, and implied commitments. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Elements of the Balance sheet Liabilities An obligation Liability to provide Probable future sacrifice services is a liability of economical benefit arising from a present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events

Elements of the Balance Sheet — Liabilities Liability Probable future sacrifice of economical benefit arising from a present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. An obligation to provide services is a liability. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity

Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders Equi Elements of the Balance sheet Stockholders Equity Equity is residual interest in the assets of a company that remain after deducting liabilities

Elements of the Balance Sheet — Stockholders’ Equity Equity is residual interest in the assets of a company that remain after deducting liabilities. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity