Unit1Introduction of Accounting/1 ��1.1What is Accounting��1 ��1.2Financial Accounting Introduction2 ��1.3Professional Fields of Accounting and Professional Ethics4 1.3.1Professional Fields of Accounting4 1.3.2Professional Ethics in Accounting5 Unit2Basic Concepts of Financial Accounting/13 ��2.1Objectives of Financial Accounting13 ��2.2Basic Assumptions and Principles of Accounting14 2.2.1Basic Assumptions of Accounting14 2.2.2Basic Principles of Accounting16 ��2.3Qualitative Characteristics of Accounting Information17 ��2.4The Elements of Financial Accounting 18 ��2.5Accounting Equation and Effects of Transactions on the Accounting Equation19 2.5.1Accounting Equation19 2.5.2The Effects of Transactions on the Accounting Equation19 ��2.6The Harmonization of Accounting Standards 22 Unit 3Accounting Cycle I �� Recording Transactions/30 ��3.1Introduction of Accounting Cycle30 ��3.2The Account and the Chart of Accounts31 3.2.1The Account31 3.2.2Categories of Accounts31 3.2.3The Chart of Accounts32 ��3.3Double��Entry System35 3.3.1Debit and Credit Entries35 3.3.2Double��Entry Accounting35 ��3.4Accounting Vouchers: Source Documents36 3.4.1The Conception of Source Documents36 3.4.2Categories of Source Documents37 3.4.3The Contents of Source Documents37 ��3.5Journals and Journalizing38 3.5.1Journals38 3.5.2Journalizing40 ��3.6Ledgers and Posting40 3.6.1The Conception of General Ledger and Subsidiary Ledger41 3.6.2Posting to General Ledger and Subsidiary Ledger43 ��3.7Trial Balance44 3.7.1The Definition of Trial Balance44 3.7.2Preparing a Trial Balance45 Unit 4Accounting Cycle II �� Adjusting and Closing Accounts/57 ��4.1The Accounting Period57 ��4.2Accrual Basis Versus Cash Basis58 ��4.3Adjusting Procedures58 4.3.1Recognizing Revenue and Expenses58 4.3.2Adjusting Accounts59 ��4.4Adjusted Trial Balance65 ��4.5Closing the Accounts66 4.5.1Temporary and Permanent Accounts66 4.5.2Purpose of Closing Accounts66 4.5.3Recording Closing Entries67 ��4.6Post��Closing Trail Balance68 ��4.7Preparing Financial Statements69 Unit 5Current Assets/77 ��5.1Definition of Cash and Internal Control77 5.1.1Definition of Cash77 5.1.2Internal Control of Cash78 5.1.3The Petty Cash Fund79 5.1.4Bank Reconciliation79 ��5.2Accounting for Receivables80 5.2.1Accounting for Accounts Receivable81 5.2.2Accounting for Notes Receivable85 ��5.3Inventory87 5.3.1Two Inventory Systems87 5.3.2Inventory Costing Methods88 5.3.3Lower of Cost or Market (LCM) Rule91 Unit 6 Long��Term Assets/101 ��6.1Long��Term Investment101 6.1.1The Definition and Characteristics of Long��Term Investment101 6.1.2Long��Term Stock Investments101 6.1.3Long��Term Bond Investments102 ��6.2Plant Assets103 6.2.1Acquisition of Plant Assets103 6.2.2Depreciation104 6.2.3Disposal of Plant Assets107 ��6.3Intangible Assets109 6.3.1Goodwill109 6.3.2Patents110 6.3.3Trademarks and Trade Names111 6.3.4Franchises111 6.3.5Copyrights111 ��6.4Natural Resources111 Unit 7Liabilities/121 ��7.1Current Liabilities121 7.1.1Accounts Payable121 7.1.2Notes Payable121 7.1.3Accrued Liabilities122 7.1.4Unearned Revenues123 7.1.5The Current Portion of Long��Term Debt123 ��7.2Long��Term Liabilities123 7.2.1Bonds Payable124 7.2.2Long��Term Loans132 Unit 8 Owner��s Equity/142 ��8.1Forms of Business Entity142 8.1.1Sole Proprietorship142 8.1.2Partnerships142 8.1.3Corporation143 ��8.2Corporate Organization143 8.2.1Rights of Stockholders143 8.2.2Functions of the Board of Directors144 ��8.3Corporate Capital144 8.3.1Types of Stocks144 8.3.2Authorized Stock145 8.3.3Issuing Stock145 ��8.4Treasury Stock147 8.4.1Purchasing Treasury Stock147 8.4.2Reissuing Treasury Stock148 8.4.3Retiring Stock148 ��8.5Dividends149 8.5.1Cash Dividend149 8.5.2Stock Dividend150 ��8.6Stock Split150 ��8.7Retained Earnings151 Unit 9Basic Financial Statement (��)/160 ��9.1Income Statement160 9.1.1Income Statement Items160 9.1.2Sample of an Income Statement161 ��9.2Statement of Owners�� Equity163 ��9.3Balance Sheet164 9.3.1Balance Sheet Items164 9.3.2Sample of a Balance Sheet166 Unit 10Basic Financial Statement ����/178 ��10.1Statement of Cash Flows Items178 10.1.1Cash Flows from Operating Activities178 10.1.2Cash Flows from Investing Activities179 10.1.3Cash Flows from Financing Activities179 ��10.2Preparing Statement of Cash Flows179 10.2.1Preparing the Statement of Cash Flows��Direct Method180 10��2.2Preparing the Statement of Cash Flows��Indirect Method183 10.2.3Determining Cash Follows from Investing Activities184 10��2.4Determining Cash Follows from Financing Activities184 10.2.5Presenting the Information in the Form of the Statement of Cash Follows185 ��10.3The Relationship of Four Accounting Statements186 ��䛳���ؔ���~�R����Ӣ�h����/196 �����īI/237