中央财经university会计专业英语的教程Chapter1.ppt

English in Accounting ProfessionSeptember, 2009;Part Ⅰ Financial Accounting; Chapter 1. Financial Accounting Conceptual Framework ;What is Accounting?;Chapter Skeleton;1.1 The purpose of Accounting and Financial Reporting; There are many types of accounting information: Financial Accounting Managerial Accounting Tax Accounting ;Financial Accounting refers to information describing the financial resources, obligations, and activities of an economic entity(either an organization or an individual). Financial Accounting information is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources. A business is an organzation in which basic resources(inputs). The objective of most business is to maximize profits.; What is the role of financial accounting in business? The simplest answer is that financial accounting provides information for managers to use in operating the business. In addition, financial accounting provides information to other stakeholders to use in assessing the economic performance and the condition of the business.;Identify stakeholders (Internal: Owners, managers, employees, etc. External: Customers, creditors, government, etc.);Financial Reporting: supplying general-purpose financial information about a business to people outside the organization. Financial Statement: the principal means of reporting general-purpose financial information to the persons outside a business organization is a set of accounting reports. The users of the Financial Statement: the persons receiving these reports.;A complete set of financial statements includes: A balance sheet, showing at a particular point of time(a specific date) the financial position of the company by indicating the resources that it owns, the debts that it owes, and the amount of the owners’ equity(investment) in the business. An income statement, including the profitability of the business over the preceding