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Chapter 1 General View of Accounting

Chapter 1 General View of Accounting. Main Points: 1. Definition of Accounting 2. The Users of Accounting Information 1) Users with Direct Financial Interest 2) Users with Indirect Financial Interest 3. Accounting Profession 1) Public Accounting

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Chapter 1 General View of Accounting

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  1. Chapter 1General View of Accounting Main Points: 1.Definition of Accounting 2. The Users of Accounting Information 1) Users with Direct Financial Interest 2) Users with Indirect Financial Interest 3. Accounting Profession 1) Public Accounting 2) Government Accounting 3) Management Accounting 4) Internal Auditing

  2. LearningObjectives The students are required to -- understand the definition of accounting. know the users of accounting information. get more information about accounting profession. grasp some important words, phrases, and definitions. Time Allocated: 4 Periods

  3. How? Warm-up Discussion: 1. Are you interested in accounting? 2. How do you know about accounting? 3. Do you think English for Accounting is important? Why? 4. Do you think English for Accounting is difficult? 5. How do you improve your English study?

  4. Presentation As one of the oldest professions, accounting is as old as the civilization of human. It is essential to the phases of history. Accountants participated in the development of nations, trade, finance, money and banking, and they invented double-entry bookkeeping that fueled the Renaissance. They made many Industrial Revolution investors and businessmen survive the bankruptcy. They play an important role in the information revolution that is improving the global economy.

  5. 1. Definitionof Accounting (1) Questions: 1. What is bookkeeping? 2. What is the major goal of accounting? 3. How do you understand the definition of accounting? 4. What does the modern accountant focus on? 5. Why is accounting regarded as a service activity? Why? How? What?

  6. 1. Definitionof Accounting (2) Questions and Answers: 1. What is bookkeeping? -- a process of accounting, the means of recording transactions and bookkeeping records. 2. What is the major goal of accounting? -- analysis, interpretation, and use of information.

  7. 1. Definitionof Accounting (3) Questions and Answers: 3. How do you understand the definition of accounting? 1) an information system that measures, processes, and communicates financial information about an identifiable economic entity; 2) the process of maintaining, auditing, and processing financial information for business purposes.

  8. 1. Definitionof Accounting (4) Questions and Answers: 4. What does the modern accountant focus on? 1) record-keeping; 2) a whole range of activities involving planning, problem solving, evaluation, review, and auditing; 3) the ultimate needs of those who use accounting information.

  9. 1. Definitionof Accounting (5) Questions and Answers: 5. Why is accounting regarded as a service activity? -- Accounting is a link between business activities and decision makers. It measures business activities by recording data about them for future use. Then, through data processing, the data are stored and processed to become useful information. Last, the information is communicated, through reports, to those who can use it in making decisions.

  10. 2. The Usersof Accounting Information (1) Questions: 1. What are the two groups who use accounting information? 2. Who are the users with direct financial interest? 3. Who are the users with indirect financial interest? What? Who?

  11. 2. The Usersof Accounting Information (2) Questions and Answers: 1. What are the two groups who use accounting information? 1) those who have direct financial interest 2)those who have indirect financial interest 2. Who are the users with direct financial interest? 1) present and potential investors 2) present and potential creditors 3) management

  12. 2. The Usersof Accounting Information (3) Questions and Answers: 3. Who are the users with indirect financial interest? 1) tax authorities 2) other groups -- financial analysts and advisers, brokers, lawyers, economists, and the financial press; -- customers and the general public.

  13. 2. The Usersof Accounting Information (4) Practice: Exercise One at Page 6. The users of accounting information can be divided roughly into two groups: those who have direct financial interest in the business (D) and those who have indirect financial interest in the business (I). Write the correct letter D or I in the brackets.

  14. 2. The Usersof Accounting Information (4) Answers for Exercise One: (D) management (D) creditors (D) investors (I) lawyers (I) brokers (I) tax authorities (I) financial press

  15. 3. Accounting Profession (1) Questions: 1. How do you understand the work of accountants? 2. What does accounting profession include? How? What?

  16. 3. Accounting Profession (2) Questions and Answers: 1. How do you understand the work of accountants? 1) design and maintain accounting systems and prepare financial statements and reports for individuals, departments and organizations; 2) develop internal control systems for businesses and prepare income tax return; 3) analyze financial data; 4) assist in the management of financial records and financial planning.

  17. 3. Accounting Profession (3) Questions and Answers: 2. What does accounting profession include? 1) public accounting 2) government accounting 3) management accounting 4) internal auditing

  18. 3. Accounting Profession (4) In-class Activities and Practice: 1. Do further reading at Page 3- 4 and get more information about accounting profession. 2. Do Exercise Three at Page 7. Match the professions in column A with the jobs in column B and write the numbers on the line.

  19. 3. Accounting Profession (4) Answers for Exercise Three: public accountants: 8/10 government accountants: 1/9/11 management accountants: 3/5/7 internal auditor: 2/4/6

  20. Further Practice 1. Exercise Two at Page 6. Write the missing words in the blanks. Choose words from the text. 2. Exercise Four at Page 8. Discuss the following questions with your partners. 1) What are the differences between accounting and bookkeeping? 2) Why are investors and creditors interested in accounting information?

  21. Further Practice Answers for Exercise Two: • civilization • double-entry • global • recording, classifying, summarizing, money • measures, processes, communicates, economic entity • maintaining, auditing • service

  22. Homework 1. Revise Chapter 1 to get further understanding. 2. Further discuss the two questions in Exercise Four at Page 8 with your partners after class. 3. Preview Chapter 2.

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