© the mcgraw-hill companies, inc., 1999 irwin/mcgraw-hill introduction accounting: the language of...
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© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
INTRODUCTION
Accounting: The Language of Business
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Question oneQuestion one
What kind of information is helpful for your decision making if you plan to run a restaurant near the campus?
How many employees are required?
How many tables and chairs are needed?
What is the expected profit?
Where do you get the funds?
What are all the economic activities?
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Question oneQuestion one
What kind of information is helpful for your decision making if you plan to run a restaurant near the campus?
accounting information
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Accounting is the language of business
Accounting is the language of business
Summarize and interpret information for decision
makers.
Classify similar
transactions into useful
reports.
Analyze business
transactions.
In financial or monetary terms
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An event that has a direct effect on the operations of an economic unit and can be expressed in monetary terms
BusinessTransaction=Accounting
Transaction
BusinessTransaction=Accounting
Transaction
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An outline of the history of Accounting
An outline of the history of Accounting
Prelude period: tying knots on ropes
结绳记事
Making marks on the w
all
Double-entry bookkeeping
复式记账法
Birth of Bookkeeping
single-entry bookkeeping
单式记账法
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Present status: four major schoolsPresent status: four major schools
British school
American school
Socialist school
International school
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Integrity of Accounting InformationIntegrity of Accounting Information
Generally Accepted Accounting Principles
（一般公认会计准则）
True and fair view （真实和公允原则）
Accounting Standards for Business Enterprises
（企业会计准则）
General Financial Rules for Business Enterprises
（企业财务通则）
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Accounting and BookkeepingAccounting and BookkeepingItem Bookkeeping( 簿记 ) Accounting( 会计 )
Scope The recording of transactions, only a small segment of accounting
Bookkeeping, tax work and financial forecast, designing the system of records, preparation and interpretation of reports
Definition The work can be handled by mechanical and
electronic equipment.
It is an art, which need much higher level of knowledge and analytical skills, and conceptual understanding.
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Classification of AccountingClassification of Accounting
Private accounting 企业会计 Public accounting 公众会计
Serving one single enterprise Serving the whole society
Chief controller
CFO
CPA 注册会计师
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“Big four” international CPA firms“Big four” international CPA firms
KPMG: WWW.KPMG.COM
( 毕马威会计师事务所 )
PWC: WWW.PRICEWC.COM
( 普华永道会计师事务所 )
Ernst&Yong: www.ey.com
( 安永会计师事务所 )
Deloitte&Touche: www.dt.com
( 德勤会计师事务所 )
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Professional Organizationsin the UK and the US
Professional Organizationsin the UK and the US
Association of Chartered Certified Accountants
英国特许公认会计师协会American Institute of Certified Public Accountants
美国注册会计师协会 Financial Accounting Standards Board
（美国）财务会计准则委员会International Accounting Standards Committee
国际会计准则委员会
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Financial accounting and managerial accounting
Financial accounting and managerial accounting
Financial accounting records the transactions of a business entity and summarizes them in accordance with accounting principles and company law.
Managerial accounting provides information that helps managers plan, evaluate company
activities and make business decisions.
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The primary financial
statements.
Objectives of External Financial Reporting
Objectives of External Financial Reporting
Income Statement
Balance Sheet
Statement of Cash Flows
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Accounting entityAccounting entity
A profit-seeking business entity
Sole proprietorship
Partnership
Corporation
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Typical S im ple O rganization C hart
PlantAccountant
PlantManager
PlantAccountant
PlantManager
Business UnitManager
V.P. HumanResources
V.P. InformationServices
Chief FinancialOfficer (CFO)
Chief ExecutiveOfficer(CEO)
Board ofDirectors(Owners)
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End of Introduction End of Introduction