Introduction to the accounting powerpoint.pptx

this ppt contains the content that introduce students to the basis of accounting.

1. Accounting Ying Hu Building 8. 3 rd Floor

2. INTRODUCTION TO ACCOUNTING

3. ACCOUNTING Accounting is important because it helps us understand how much money we have, how much we owe, and how much we are spending. It is a language of the business 会计是一门商业语言 To communicate the matters relating to business operations Communicate to whom? To various individuals and institutions who are directly or indirectly interested in the activities of business 和对公司商业活动感兴趣的人沟通

4. Meaning of Accounting In simple words, ‘accounting’ merely means ‘recounting’. 重新计算 The American Institute of Certified Public Accountants defines accounting as “the art of recording , classifying and summarizing in terms of money transactions and events which are, in part at least, of a financial character, and interpreting the results thereof”.

5. Features of Accounting 1. Recording : of all cash and credit transaction Done in recounting and other subsidiary books 日记账和明细账目 2. Classifying : grouping of entries of like nature. 相似特性科目分成一类 分类账簿 All transactions from journal and subsidiary books are posted into a book of final entry called Ledger 3. Summarizing : the balances or totals of all accounts are shown in a statement called Trial Balance used to prepare profit and loss and Balance sheet 4 . Interpreting : used to make judgment of the profitability , liquidity and solvency of the business

6. Different types of accounting Financial accounting is concerned with the preparation of fnancial statements, covering the whole of the activities of the business, for use by external users . This area of accounting is normally regulated by law. Management accounting concerns itself with parts of the business, as well as the whole, and is used to help decision making by internal users , such as those in management. The main objective is planning and control.

7. Different types of accounting

8. Users of Financial Statements Creditors/Lenders

9. TERMS IN ACCOUNTING Transaction : activity which involves transfer of money or money’s worth Debtor: person who owes money to the business Debt: amount due from a person or business Creditor : Person to whom money is payable Capital: amount invested by the owner in the business Assets: Things you own that have value Liabilities: The money you owe to others.

10. TERMS IN ACCOUNTING

11. Creditors/Lenders

12. TERMS IN ACCOUNTING

13. 8. Equities 权益 : The difference between your assets and liabilities. 9. Expense 费用 : The money you spend on things you need to run your business. 10. Loss 损失 : Amount lost without any benefit. 11. Income 收入 : The money you earn from doing work or selling something. 12. Drawing 个人独资老板从该企业取走的一切资产 : It is the amount or goods withdrawn by proprietor for personal use 13. Account 账户 : Summary of various business transactions relating to a particular person

14. The Varied Career Paths Open to Individuals with an Accounting Education Characteristics of accounting professionals: Personal attributes G oal oriented P roblem solver O rganized and analytical Good interpersonal skills Pays attention to detail Good time-management skills O utgoing Education Entry-level positions: usually require a minimum of a bachelor’s degree Advanced positions: may consider factors such as years of experience, professional development, certifications, and advanced degrees, such as a master’s or doctorate Related careers An accounting degree is a valuable tool for other professions such as financial analysts, personal financial planners, and business executives.

15. Auditing Taxation Financial accounting Consulting Accounting information services Cost and managerial accounting Financial planning Entrepreneurship Major Categories of Accounting Functions

16. Figure 1.1 Career Paths. There are many career paths open to students of accounting.

17. Ledgers 在簿记上是分类帐的意思，可以和其他词汇搭配，构成许多会计词汇。如 ledger accounts( 分类帐户 ) 、 general ledger( 总分类帐 ) 、 subsidiary ledger( 明细分类帐 ) 等。例如： Ledger accounts are used to record business transactions' effect on an accounting entity. 分类帐户被用来记录交易对会计主体的影响。 A ledger account is simply a record of changes (increase and decrease) and balances in value of a specific accounting item. 　 分类帐户不过是特定会计项目价值的变动 ( 增加与减少 ) 和结余的记录。 The general ledger is the book used to list all the accounts established by an organization. 总分类帐是一本列出一个单位所设立的全部帐户的帐本。 Further simplification of the general ledger is brought about by the use of subsidiary ledger. 使用明细分类帐使总分类帐更加简化明了。

18. The advantages of subsidiary ledger are as following reduces ledger detail permits better division of labor permits a different sequence of accounts permits better internal control