AnOverviewofFinancialAccounting.pptVIP

Today’s topics What’s accounting? Why is accounting important? Why can accounting numbers be manipulated? Opening Story Everyone here is supposed to know the Outlaws of the Marsh; Question I: Who plays the role of “CFO” of the Marsh Mountain Liang? There are two; Opening Story Some other positions related to accounting; Opening Story Question II: Why does the Marsh Mountaion Liang need such positions as CFO and Chief Controller? The Nature of Man Ethic Man; Human Nature: Virtue vs. Evil; Confucis vs. Hsun Tzu Economic Man; There is no ethics concept in Economists’ dictionary; It is not from the benevolence of the butcher, the brewer, or the baker that expect our dinner, but from their regards their own interest. (Adam Smith); The Nature of Man We need a compound analytical tool; Maslow and the Hierarchy of Needs: the most common tool; The Value of Accounting Without trust, we could not have even a family, let alone a firm; We have to find efficient ways to develop and maintain trust. The Value of Accounting Accounting is a system that provides information on: Amounts of resources. How resources were financed. Results achieved by using resources. What’s accounting? A hot debate ever occurred in history Management activity Approach（管理活动论） Information system Approach（信息系统论） Information input, processing and output The latter is accepted by most people nowadays. The final result of accounting is financial statements. Financial statements can provide information that reflect the economic transactions of a specific entity over a particular period. What’s accounting? The basic financial statements are The Balance sheet(资产负债表) It reflect the financial condition of an entity at a specific date. Assets = Liability + Stockholder’s Equity The Income Statement(利润表) It measures operating performance of an entity over a particular period. Revenue – Expenses = Net Income The Cash Flow statement(现金流量表) It is a summary of a company’s cash flow over a period of time and