财务会计assets-liabilities-and-equityppt课件

later for costs that have been incurred to earn revenue. – salaries and wages – electricity and gas – supplies used – advertising
Accounting for Business Transactions
Economic Resources
Claims to Economic Resources
Assets
What is an asset? It is something a company owns or controls which has
future economic value. – land – building – equipment – goodwill
effect on the accounting equation. Define and understand all the steps in the complete accounting cycle. Explain the rules of debit and credit and how to apply these rules in
Module 2: Business Elements and Transactions
OBJECTIVES Define assets, liabilities and owners’ equity and understand the
relationship of revenues and expenses to owners’ equity Describe the accounting concepts and terms that help record the
customers for sales of products or services. – sales – performance of services – rent received – interest received
Expenses
What are expenses? They are amounts that have been paid or will be paid
The T-Account
What is a transaction? It is any event that both affects the financial position
of the business and can be reliably recorded.
Accounting for Business Transactions
some affect both sides.
Double-Entry Accounting
Double entry bookkeeping means to record the dual effects of each business transaction.
Assets = Liabilities + Owners’ Equity Assets are on the left (debit) side. Liabilities and Equity are on the right (credit) side.
activities of a business Understand that the accounting equation provides the basis for recording
business transactions Describe and understand the nature of business transactions and their
analysing transactions. Prepare general journal entries to record common business transactions
Ths = Liabilities + Owners’ Equity
Owner Investments in the Business
Owner Drawings from the Business
Owners’ Equity
Revenues
Expenses
Revenues
What are revenues? They are amounts received or to be received from
The equation always stays in balance. Each transaction affects at least two accounts,
sometimes more. Some transactions affect only one side of the equation;
Liability
What is a liability? It is something a company owes. – money – service – legal retainers – product – magazines
Owners’ Equity
What is owners’ equity? It is what’s left of the assets after liabilities have been
deducted. – the same as net assets – the owner’s claim on the entity’s assets
Transactions that Affect Owners’ Equity
OWNERS’ EQUITY INCREASES
OWNERS’ EQUITY DECREASES