会计英语课件-1补充.ppt

CHAPTER 1 The Financial Statements ACCOUNTING - THE BASIS OF DECISION MAKING ? Accounting is the “ language of business ”? Accounting is the information system that – Measures business activities – Processes that information into reports – Communicates the results to decision makers THE ACCOUNTING SYSTEM: THE FLOW OF INFORMATION 1. People make decisions 2. Business transactions occur 3. Businesses prepare reports to show the results of their operations ACCOUNTING VS. BOOKKEEPING ? Bookkeeping is the procedural element of accounting that processes the accounting data ? Individuals ? Businesses ? Investors and Creditors ? Government Regulatory Agencies ? Taxing Authorities ? anizations DECISION MAKERS WHO USE ACCOUNTING INFORMATION ? Financial accounting provides information to managers and people outside the firm – Financial accounting information must meet certain standards of relevance and reliability ? Management accounting generates confidential information for internal decision makers, ., – Top executives – Department heads FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING ETHICAL CONSIDERATIONS ? Ethical standards in accounting are designed to produce accurate information for decision making ? The result of ethical behavior by accountants is information that people can rely on for decision making TYPES OF BUSINESS ORGANIZATIONS ? Proprietorships – Have a single owner who is generally the manager – Are business entities, but not legal entities – Have debt for which the proprietor is personally liable TYPES OF BUSINESS ORGANIZATIONS ? Partnerships – Join two or more persons together as co- owners – Are business entities, but not legal entities – Have debt for which each partner is personally liable TYPES OF BUSINESS ORGANIZATIONS ? Corporations – Are owned by stockholders or shareholders – Are business entities and legal entities – Are liable for all debts ? Stockholders have no personal obligation for corporation debts