Week 1

Assessment

• Tutorial 5%
• LearnSmart 5%
• CONNECT quiz 5%
• Midterm 25% (Oct-18, c1-c3)
• Case Study 10%
• Final 50%

Part A: Acounting as a Measurement/Communication Process

• LO1: Accounting 的两个功能
  • to measure business activities of a company
  • to communicate those measurements to external parties for decision-making purposes
    • Communicate 的对象: investors, creditors, other outside users
    • Communicate 的目的:for decision-making
• LO2: Business Activites
  • Financing activities: transactions the company has with investors and creditors (怎么拿到钱)
  • Investing activities: transactions involving the purchase and sale of resources that are expected to benefit the company for several years (buying resources to support company)
  • Operating activities: transactions that relate to the primary operations of the company (公司主要业务收入)
• Types of Business Organizations
  • corporation
    • a company that is legally separate from its owners
    • 好处: stockholders have limited liability
    • 例子: 苹果, 谷歌, 微软, 可口可乐
  • sole proprietorship
    • 一人公司, 自己承担所有损失
    • 例子: 水果摊
  • partnership
    • 多人拥有公司, 至少一人承担无上限的风险
    • 例子: 四大, 很多律师事务所
• The Accounting Equation:
  • Assets = Liablities + Stockholder's Equity
  • Assets = total resources of the company
  • Liabilities = amounts owed to creditors
  • Stockholders’ equity = owners’ claims to resources
• Revenues, Expenses, and Dividends
  • Revenues (收入) are the amounts recognized when the company sells products or provides services to customers
  • Expenses (支出) are the costs of providing products and services and other business activities during the current period
  • Net income (净利润) is the difference between revenues and expenses. Other common names for net income include earnings or profit
  • Dividends (分红) are cash payments to stockholders.
    • Dividends are not expenses
• LO3: Financial Statements
  • Income statement
    • 表现一个公司赚取 profit 的能力
    • 包含: Revenues, Expense, Net Income
  • Statement of stockholders’ equity (Statement of changes in equity)
    • 包含:
      • 列名: Common Stock, Retained Earnings, Total Stockholders’ Equity
      • 行名: Net Income, Dividends, Beginning/Ending balance
  • Balance sheet (Statement of financial position)
    • 表示 Financial Position, Resources(A) = Claims to Resources(L+S)
    • Assets: 现金, receivables, 土地, 设备, 物资
    • Liabilities: 各种 payable
    • Stockholders’ Equity: Common Stock, Retained Earnings
  • Statement of cash flows

Part B: Financial Accounting Information

• GAAP(generally accepted accounting principles)
• Standard:
  • 美国: FASB (Financial Accounting Standard Board)
  • 全球: IASB (International Accounting Standard Board)
  • 财务会计规则称为公认会计原则 (GAAP)
  • 财务会计准则委员会 (FASB) 是一个独立的私人机构，主要负责在美国制定 GAAP。
• Role of auditors
  • Help ensure that management has in fact appropriately applied GAAP in preparing the company’s financial statements
  • Play a major role in investors’ and creditors’ decisions by adding credibility to the financial statements

Part C: Careers In Accounting