会计专业英语教案一

1CHAPTER1:INTRODUCTION1．TYPESOFBUSINESSOWNERSHIPAswithtypesofbusinesses,thewayinwhichtheaccountinginformationisreportedwilldependonthetypeofownership.Themaintypesofownershipare:SoleproprietorThisisonepersoninbusinessonhisorherown.Theownergetstomakeallthedecisionsbuthasnootherownerofthebusinesstoconsultifneeded.Theowneralsogetstokeepalltheprofitsbut,ifthebusinessshouldfail,theownernotonlylosesthebusinessbutallhisorherpersonalpossessionsaswelluntilthedebtsaresatisfied.Asoleproprietorhasunlimitedliability.Itisalsomoredifficulttoobtainfinanceforasoleproprietorbusiness.Nevertheless,mostbusinessesbeginlifeundersoleproprietorownership.PartnershipUnderthistypeofownership,twoormorepeopledecidetopooltheirskillsandresourcesandgointobusinesstogether.Apartnership,likeasoleproprietorship,hasunlimitedliability.Indeed,onepartnermayberesponsibleforgettingthepartnershipintodebtbutanotherpartnermayhavetopaythosedebtsoutoftheirpersonalfunds.Apartnershiptypeofownershipiscommonamonglawyersanddoctorsastheyareboundbytheethicsoftheirprofessiontosufferunlimitedliability.Accountantscannowformcompanies,withtheexceptionofAuditors.CompanyAnimportantfeatureofacompanyisthatitisaseparatelegalentityfromitsowners(shareholders).Sincethecompanyisalegalentityinitsownright,itisresponsibleforitsowndebtsandlosses.Thismeansthatoncetheshareholdershavepaidwhattheyagreedtopayfortheshares,theirobligationtothecompanyandthecompany’screditorsissatisfied.Thisisofgreatimportancetotheshareholderssincetheyknowtheirliabilityislimited.Anotherfeatureofacompanyisthatitslifeisnotlimitedbythelifeoftheshareholders.Sharesmaybesoldbyanexistingshareholdertoanotherpersonwhowishestobecomeashareholder.Whenashareholderdies,thatperson’ssharespasstothebeneficiaryofhisorherestate.2COMPARISONOFOWNERSHIPSoleProprietorPartnershipCompanyLegalStatusofNotaseparateNotaseparateSeparatelegalBusinessEntitylegalentitylegalentityentityRiskofOwner’spersonalPartners’personalLimitedliabilityOwnershipassetsatriskassetsatriskDurationExpiresbyowner’sExpiresbychoicePerpetualofLifechoiceordeathoforwithdrawalofsuccessionownerpartnerTransferabilityIfproprietorsellsPartnershipshareUsuallyofOwnershiphisinterest,thecannotbesoldtransferableInterestsbusinessiswithoutagreementreconstitutedofotherpartners:undernewnewpartnershipownershipformedSourcesofOwner’sfundsandPartners’fundsShares,Financeloansandloansdebentures,loansProfitAllaccruetoSharedaccordingDividendsSharingownertopartnershipdeclaredbyagreementordirectorsPartnershipAct1908OwnershipOneownerTwoormoreOneormoreCapitalProvidedbyPartnerscontributeDividedintoowneraccordingtosharespartnershipagreementLiabilityforUnlimitedUnlimitedLimitedtofirm’sdebtstheamountoutstandingonsharecapitalManagementOwnerEachpartnerAppointedbyshareholders32.USERSOFFINANCIALINFORMATIONInternalUsersManagerswhoplan,organizeandrunabusinessMarketingmanagersProductionsupervisorsFinancedirectorsCompanyofficersExternalInvestorsCreditorsOthersRegulatoryagenciesTaxauthoritiesCustomersLaborUnionsEconomicplanners3.TYPESOFBUSINESSACTIVITYFinancingActivitiesBorrowingcreatesliabilitiesBankloansDebtsecuritiesGoodsoncreditorpayablesSellingstockcreatesstockholders’equityInvestingActivitiesObtainingresourcesorassetstooperatethebusinessLandBuildingsVehiclesComputers4FurnitureEquipmentOperatingActivitiesPrimaryactivityofbusinessSellinggoodsProvidingservicesManufacturingCostofSalesAdvertisingPayingemployeesPayingutilitiesOperatingActivitiesRevenuesaretheincreasesinassetsresultingfromthesaleofaproductorserviceExpensesarethecostofassetsconsumedorservicesusedingeneratingrevenue.Ifrevenueexpense=NetIncomeIfrevenueexpense=NetLoss!4.CONTENTANDPURPOSEOFFINANCIALSTATEMENTSAccountantscommunicatewithusersthroughfourfinancialstatementsTheObjectiveofFinancialStatementsTheobjectiveoffinancialstatementsistoprovideinformationaboutthefinancialposition,performanceandchangesinfinancialpositionofanenterprisethatisusefultoawiderangeofusersinmakingeconomicdecisions.FourFinancialStatementsIncomeStatementRetainedEarningsStatementBalanceSheetStatementofCashFlows5THEINCOMESTATEMENTPURPOSEOFTHEINCOMESTATEMENTThepurposeoftheIncomeStatementistoreporttheresultsofthebusinessoperationsforagivenperiodoftime,calledtheAccountingPeriod.ItmeasuresProfit(orLoss)fortheperiodbydeductingExpensesfromIncome,usingtheformulaINCOME–EXPENSES=PROFIT(LOSS)FORTHEPERIODUSESOFTHEINCOMESTATEMENTManagersallocateresourcesbasedontheperformanceofthebusinessItcanbeusedtodiscoverifthebusinessismaintaininganadequatemarginonsalesTheInlandRevenueDepartment(IRD)usesittoassesstaxationliabilityUnionsmayexamineitaspartofsalarydiscussionsInvestorsareinterestedinjudgingtheperformanceofthebusinesstoassessthemanagementperformance,andtojudgebothfuturebusinesssuccessandreturnoninvestmentItcanbesubmittedtobanksinsupportofaloanapplication,toassistbankstojudgeincomepotential(torepaytheloan!)Externalusers,inparticular,canassessoInvestmentvalue(isthereagoodreturnonassets?)oCreditworthiness(isthebusinessearningenoughtopaysuppliers?