中级财务会计英文版.pptx

;;;Resources (Assets);A = L + OE;Assets Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.;Basic Definitions - SFAC No. 6;Owners’ Equity The residual interest in the assets of an entity that remains after its liabilities are deducted.;Asset Classifications;Asset Classifications;Liability Classifications; Current assets Less: Current liabilities Equals: Working Capital Current assets Current liabilities;Liability Classifications;Equity Classifications;;FASB Statement of Concepts No. 6 defined investments by owners and distributions to owners, as follows:;Balance, Jan. 1, 2007 $65,000 $143,400 $ 64,900 $10,000 $283,300 Unrealized increase in value of available- for-sale securities 2,000 2,000 Net income 62,500 62,500 Cash dividends paid (11,200) (11,200) Common stock issued 6,500 30,500 37,000 Balance, Dec. 31, 2007 $71,500 $173,900 $116,200 $12,000 $373,600 ; Offsetting assets and liabilities Loss and gain contingencies Valuations reported in the Balance Sheet Terminology Comparative Statements;Loss;Current value amounts generally are not shown on the Balance Sheet. Contains many estimates. Certain assets and liabilities are not shown on the Balance Sheet, e.g., human resources.;Economic Income;Capital Maintenance Concept;Assume a corporation has net assets of $45,000 at the beginning and $80,000 at the end of the year, and that no additional investments or withdrawals were made.;Assume a corporation has net assets of $45,000 at the beginning and $80,000 at the end of the year. Stockholders made additional capital investments of $10,000.;Transactional Approach;Transactional Approach;Transactional Approach;Revenues are inflows (or increases) of assets of a company or settlement of its liabilities during a period from delivering or producing goods, rendering services, or other activities that are the company’s ongoing major or central operations.;;;;Cause a