Lesson-2-Accounting-Elements-and-Accounting-Equati

AnEnglishTextbookforAccountantsLessonTwoAccountingElementsandAccountingEquationLearningobjectives:1.Definetheaccountingelements.2.UsetheaccountingequationtoanalyzebusinesstransactionsAnEnglishTextbookforAccountantsAccountingelements会计要素，即财务报表要素：Assets(资产)、Liabilities(负债)、Owner’sEquity(所有者权益)、Revenue(收入)、Expenses(费用)和NetEarnings(利润)。六要素是根据国际会计准则委员会（InternationalAccountingStandardCommittee,缩写IASC）的划分。AnEnglishTextbookforAccountantsAssetsAssetsaretheeconomicresourcesthataremeasurablebymonetaryvalue,ownedorcontrolledbyanenterprise,andexpectedtobenefitfutureoperations.资产是企业拥有或控制的、未来预计能给企业经营带来利益的、能以货币计量的经济资源。AnEnglishTextbookforAccountantsAssetscanbeclassifiedintocurrentassetsandnon-currentassets.Currentassetsarethosethatareexpectedtobeconvertedtocash,sold,orconsumedwithinoneyearoronebusiness’normaloperatingcycleiflongerthanayear.Examplesofcurrentassetsincludecash,marketablesecurities,receivable,prepaymentsandinventory.AnEnglishTextbookforAccountantsNon-currentassetsrefertothoseassetsthatwillberealizedorconsumedafteroneyearoroneoperatingcycle(iflonger).Examplesofthistypeassetincludeland,buildings,intangibleassetsanddeferredassets.AnEnglishTextbookforAccountantsLiabilitiesLiabilitiesrefertoobligationsthatlegallybindanindividualorcompanytosettleadebt.Theyrepresentcreditors’claimorequityinabusiness.Liabilitiesfallintocurrentsliabilitiesandlong-termliabilities.AnEnglishTextbookforAccountantsCurrentsliabilitiesarethedebtsthatareduewithinoneyearorthenormaloperatingcycle,whicheverislonger.Examplesofcurrentsliabilitiesincludenotespayable,accountspayable,accruedexpenses,taxespayable,andsoon.Long-termliabilitiesarethedebtswhosematurityperiodislongerthanoneyear.AnEnglishTextbookforAccountantsExamplesoflong-termliabilitiesincludebondspayable,long-termnotespayable,permanentcustomerdeposit,mortgagespayable,certaintypesofleaseobligations,deferredincometaxes,etc.长期负债的例子包括应付债券、长期应付票据、客户永久性定金、抵押借款、某些类别的租赁债务、递延所得税负债等。AnEnglishTextbookforAccountantsOwner’sEquityOwner’sEquityisdefinedastheexcessoftotalassetsovertotalliabilities.Itisaresidualamountthatrepresentsthebookvalueoftheowners’interestinthebusiness.Owner’sEquityincludesowners’investmentinabusinessandaccumulatedoperatingresultssincethebeginningoftheoperation.AnEnglishTextbookforAccountantsRevenueRevenuesareincreasesineconomicbenefitsduringtheaccountingperiodfromdeliveringgoodsorservicestocustomers.ExamplesofRevenueincludesalesrevenue,servicerevenue,rentrevenueandinterestrevenue.Increaseinrevenueswillincreaseowner’sequity.AnEnglishTextbookforAccountantsExpensesExpensesarethecostsofassetsconsumedorservicesusedintheprocessofearningrevenue.Theyaredecreasesinowner’sequitythatresultfromoperatingactivities.Examplesofexpenseincludecostofgoodssold,administrativeexpenses,sellingexpenses,andfinancialexpenses.费用的例子有销货成本、管理费用、销售费用、以及财务费用。AnEnglishTextbookforAccountantsNetEarnings(orNetLoss)利润（或亏损）NetEarnings(orNetLoss)aretheresultofmatchingrevenueswithexpenses.Whenrevenuesexceedexpenses,netincomeoccurs.Conversely,anetlossoccurswhenexpensesexceedrevenues.AnEnglishTextbookforAccountantsBasicAccountingEquationTherelationshipofassets,liabilitiesandowner’sequitycanbeexpressedasanequationshownbelow:Assets=Liabilities+Owner’sEquity+Revenues-expensesThisequationisknownasthebasicaccountingequation.AnEnglishTextbookforAccountantsInthisequation,revenuesandexpensesareshownassubdivisionsofowner’sequity,becauserevenuesresultinincreaseofowner’sequity,andexpensesaredecreasesofowner’sequity.AnEnglishTextbookforAccountantsTheEffectsofBusinessTransactionsontheAccountingElements经济业务对会计要素的影响Toillustratetheeffectsofbusinesstransactionsontheaccountingelements,let’slookatthefirstseventransactionscompletedbyG.HopesSoftwareCompanyduringJuly,2008,thefirstmonthofitsoperation.AnEnglishTextbookforAccountantsTransaction(1):July1,G.Louiseinvested$12,000cashinbusiness.Thistransactionresultsin$12,000increaseofanassetcash,andanequalincreaseofG.Louise,Capital,anowner’sequityitem.AnEnglishTextbookforAccountantsTransaction(2):July1,Purchasedequipmentfor$5000cash.Theeffectsofthistransactionareshownbelow,followingtransaction(1).AnEnglishTextbookforAccountantsTransaction(3):July2,$720ispaidforaone-yearinsurancepolicythatwillexpirenextyearonJune30.Oneassetcashisdecreased,anotherasset,prepaidinsurance,isincreasedby$720.AnEnglishTextbookforAccountantsTransaction(4):July4,paidofficerentforJulyincash$1200.Cashisdecreased,anexpenseitem—RentExpenseisincreased,whichresultsindecreaseofG.Louise,Capitalby$1,200.AnEnglishTextbookforAccountantsTransaction(5):July5,a$1800cashadvanceisreceivedfromS.Paul,aclient,forsoftwaredevelopmentprojectexpectedtobecompletedbyAugust31.Cashisincreased,aliabilityitem,UnearnedRevenueisincreasedby$1800.AnEnglishTextbookforAccountantsTransaction(6):July6,anestimatedthree-month’sofficesupplyispurchasedonaccountfromBullinSupplyfor$180.OfficeSupply,anassetitemisincreased,andAccountsPayable,aliabilityitemisequallyincreased.AnEnglishTextbookforAccountantsTransaction(7):July7,G.Louisewithdraws