财务会计英语unit1

– Cash – Accounts receivable – Merchandise inventory – Furniture – Land
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Claims to the Assets
• Liabilities – economic obligations payable to an individual or organization outside the business
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Reliability (Objectivity) Principle
• Accounting information is based on the most reliable data available
– Verifiable – Free from bias – Individuals would arrive at similar conclusions
– Formulated by Financial Accounting Standards Board (FASB)
Copyright © 2007 Prentice-Hall. All rights reserved
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GAAP
• Primary objective of financial accounting – provide information that is useful for making investment and lending decisions
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Information has predictive or feedback value
2. Reliable
Information is verifiable
Timely
Information must be objective
Can influence a decision
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Ethics in Accounting
Integrity is built in financial accounting as follows: Generally accepted accounting principles (GAAP)
Internal Control Structure Audits of financial statements
and the Cபைடு நூலகம்nadian Securities Administrators
✓Accounting Standards Board (AcSB) ✓ Public Sector Accounting Standards Board ✓ Emerging Issues Committee (EIC) ✓ International Accounting Standards Board (IASB)
The rules that govern accounting are called GAAP (generally accepted accounting principles).
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GAAP
CICA Handbook: official source of GAAP; sanctioned by federal and provincial governments

– Cash – Accounts receivable – Merchandise inventory – Furniture – Land
英文版财务会计PPT 1(1)
Claims to the Assets
• Liabilities – economic obligations payable to an individual or organization outside the business
Owner’s Equity
OWNER’S EQUITY
INCREASES
OWNER’S EQUITY DECREASES
Owner Investments
Owner Withdrawals
Owner’s Equity
Revenues
Expenses
英文版财务会计PPT 1(1)
Revenues
• Amounts earned by delivering goods or services to customers
英文版财务会计PPT 1(1)
Decision Makers
• Individuals • Businesses • Investors • Creditors • Taxing Authorities
英文版财务会计PPT 1(1)
Financial vs. Managerial Accounting
Entity Concept
• Accounting Entity – organization that stands apart as a separate economic unit
英文版财务会计PPT 1(1)
Reliability (Objectivity) Principle

Can influence a decision
Copyright © 2010 Pearson Education Canada
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Ethics in Accounting
Integrity is built in financial accounting as follows: Generally accepted accounting principles (GAAP)
Internal Control Structure
Audits of financial statements
Accounting Standards Board of the Canadian Institute of Chartered Accountants
Securities commissions
Learn accounting concepts
and principles.
Copyright © 2010 Pearson Education Canada
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Conceptual Framework
Information must be useful for decision makers
➢ meet GAAP standards for relevance and reliability
Copyright © 2010 Pearson Education Canada
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Management Accounting
Financial and operating data about an organization’s activities, processes, operating units products services and customers