管理学2015chapter13.ppt

Also called “owner’s equity”. It is what’s left of the assets after liabilities have been deducted. the insider - owner’s claim on the entity’s assets Exercise 1-16 determines missing amounts in the accounting equation for three corporations. * The eighth learning objective is to use the accounting equation to analyze transactions. * Analyze, and then we can record. Affect the items in accounting equation. Answer phone? Pay salary? A+ L+ E+ A- Since now, change your thinking:dual effect. Accounting is based on actual transactions, not opinions or desires. A transaction is any event that affects the financial position of the business and can be measured reliably. Transactions affect what the company owns, owes, or its net worth. An accountant records only those events that have dollar amounts that can be measured reliably, such as the purchase of a building, a sale of merchandise, and the payment of rent. * 1.Items effected 2.Specific type in Accounting equation 3.increase/decrease Original accounting equation at the start, might be changed by the following transactions. * Supplies Cash？NO。 产生/增加 A/P ordinary business with suppliers Asset claims * Increase in revenue lead to increase in net profit, then capital ,then equity Analyze transaction, record it under capital * Cash? No Not now,but will be received in the future, economic resource future benefit. AR versus AP Note the difference and relation between transaction 4 and 5. Revenue recogition by events CH3 * Consumed economic resouces * Entity concept * Exercise 1-21 shows you how to use the accounting equation to analyze transactions. * The exercise continues on this slide. * The exercise continues on this slide. * The ninth learning objective is to prepare financial statements. * Financial statements are business documents that report on a business in monetary terms. People use financial statements to make business decisions. After analyzing transactions, we want to see the