1 / 25

Accounting English

Accounting English. Unit 7 Liabilities and owner’s equity. Questions. 1 、 What is meant by “Liabilities ” ? 2 、 Explain the terms:current liabilities,payroll accounting,Long-term liabilities. 3 、 Tell the Characteristics of the partnership.

nmucha
Download Presentation

Accounting English

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Accounting English

  2. Unit 7 Liabilities and owner’s equity

  3. Questions 1、What is meant by “Liabilities ” ? 2、Explain the terms:current liabilities,payroll accounting,Long-term liabilities. 3、Tell the Characteristics of the partnership. 4、What is the distribution of partnership profits and losses? 5、Talk about the Liquidation of a partnership.

  4. Current liabilities (1) Current liabilities are debts or obligations that will be paid within one year or the operating cycle，whichever is longer. Including： trade accounts payable, notes payable, dividends payable, sale and excise taxes payable, current portions of long-term debt, accrued liabilities, payroll liabilities, and deferred revenues.

  5. Current liabilities (2) Typical current liabilities include the following. 1．Known liabilities of a definite amount： a． Accounts payable b． Short—term notes payable c． Cash dividends payable d． Advances and funds held as short-term deposits e． Accrued liabilities f． Deferred revenues(revenues collected in advance) g． Long—term debt due within one year 2．Known liabilities, amount dependent on operation：． h． Taxes(income，sales，and social security) i． Bonus obligations j． Accrued liabilities for expenses incurred but not yet paid 3．Known liabilities of an estimated amount： k． Guarantee and warranty obligations l． Premium obligations m．Contingent liabilities Text

  6. Payroll accounting • The three general types of liabilities associated with payroll accounting are： • liabilities for employee compensation, • (2)liabilities for employee payroll withholdings, • (3) liabilities for employer payroll taxes.

  7. Long-term liabilities Liabilities that do not require the use of funds within one year (or the next operating cycle， whichever is longer) for their liquidation are designated long-term debts． Including：bonds，notes，equipment purchase obligations，permanent customer deposits，some obligations under pension and deferred compensation plans，certain types of lease obligations，deferred income taxes，and some deferred revenue items.

  8. The computation of bond price is as follows： Bond Price =Present value of the bond’s face amount + Present value of the future cash interest Payments

  9. Partnerships According to Uniform Partnership Act, a partnership is an association of two or more persons to carry on as co-owners of a business for profit. The partnership has the following characteristics: 1、Voluntary Association 2、Partnership Agreement 3、Limited Life 4、Unlimited Liability 5、Co-ownership of Partnership Property 6、Participation in Profits and Losses

  10. Execises 1 Give a brief explanation for the following terms. (1) imprest system (2) bank reconciliation statement (3) Matching principle (4) Working capital (5) Revenue expenditure

  11. Execises 2 Translate the following statements into Chinese. (1) Accounting principles are not like physical laws; they do not exist in nature, awaiting discovery man. Rather, they are developed by man, in light of what we consider to be the most important objectives of financial reporting. In many ways generally accepted accounting principles are similar to the rules established for an organized sport shuch as football or basketball. (2) Accounting have devised procedures whereby the flows of cash receipts and payments are spread over a period of time in a certain way to derive income, which is representative of the economic performance of the firm for the given period. The income concept as applied in the real world involves numerous decisions and judgmenmts.

  12. Question(3d) Unit 8 The corporation

  13. The definition of corporation What is a “Corporation”？ A corporation is a legal "entity" created separately from those who own and operate it. Like an “artificial person”the entity separates a corporation's debts and taxes from its owners (shareholders) thereby offering the greatest personal liability protection of all business entities.

  14. Advantages of a Corporation ①、Limited Liability of Stockholders ②、Ready Transfer of Ownership ③、Continuous existence ④、Separate Legal Entity ⑤、Ease of Raising Capital

  15. Disadvantages of a Corporation Federal and state income taxes，which normally exceed 50 percent of a corporation’s income，constitute the greatest disadvantage of the corporate form asfollows： ①、Federal Income Tax ②、 State Income Tax ③、Right to do Business ④、Franchise Tax ⑤、Taxes on Dividends

  16. Corporate terminology 1、The stockholders 2、The board Of directors 3、A share of stockincludes (1)、Authorized shares (2)、Unissued shares (3)、Subscribed shares 4、Treasury stock 5、Outstanding stock

  17. Stock 1、Typical stocks include the following： (1)Common stock and preferred stock (2)Capital stock and treasury stock 2、Corporations’ earnings are accumulated separately from their paid-in equity capital．Some of the major terms related to retained earnings are： (1)Cash dividends (2)Stock dividends (3)Appropriations 3、Stock valueincludes： (1)Book Value (2)Market Value

  18. Exercise 1 Translate the following Chinese statements into English. (1) 财务报表反映一个企业的财务状况和经营成果，是 根据公认会计准则编制的。这些报表是为许多不同的决策者，许多不同的目的而提供的。纳税申报单则反映应税收益的计算，是由税法和税则规定的概念。在许多情况下，税法和公认会计准则相似，但两者却存在实质上的不同。 (2) 审计师不保证财务报表的准确性，他们仅就财务报表的公允性发表专家意见。然而注册会计师事务所的声誉来自于他们对审计工作的一丝不苟和审计报告的可靠性。

  19. Unit 9 Cost accounting and banking accounting

  20. Cost accounting Manufacturing cost elements include： 1、Direct Material costs 2、Direct Labor Costs：machine operators ,maintenance people ,managers and supervisors ,support personnel ,and other people performing the material handling ,inspection ,and storage functions . 3、Indirect labor costs:life truck driver’s wages, maintenance and inspection labor, engineering labor, machine helpers. 4、Indirect materials and supplies:Nails, rivers, small tools. 5、Other indirect factory costs:building maintenance,machinery and tool maintenance, property taxes, property insurance, pension costs， depreciation on plant and equipment.

  21. Brief introduction to banking accounting 1、A bank is a government-licensed financial institution(citation needed) whose primary activity is to lend in order to increase economic growth. 2、The first state deposit bank, Banco di San Giorgio (Bank of St.George), was founded in 1407 at Genoa, Italy. 3、The economic functions of banks include: (1)issue of money (2)netting and settlement of payments (3) credit intermediation (4) credit quality improvement (5) maturity transformation 4、 The requirements for the issue of a bank license vary between jurisdictions but typically include: (1)Minimum capital (2)Minimum capital ratio

  22. Exercises 1、Bonds payable issue and recording interest expenses.The ABC Company sold $600000 of its 9.5%, 12 years bonds on April 1, 2000, at 106. The semi-annual interest payment dates are April 1 and October 1. The effective interest rate is approximately 8.9%. The company’s fiscal year ends December 31. Required:Prepare journal entries to record: (1) The issue of the bonds on April 1,2000 (2) The first interest payment on October 1, 2000 (3) The Amortization of premium or discount and interest expenses on December 31, 2001.

  23. 2、Statement of Cash Flows. The net income of the ZY Company for 1999 was $260000. Additional data available relative to activities for the year are given below: A. Depreciation expenses for the year, $90000; B. Loss on sale of machinery used in operations was $2400; C. Accounts receivable increased by $2000; D. Accounts payable increased by $8400; E. Patent amortization for the year was $14800; F. Amortization of premium on bonds payable for the year was $4600. Required Prepare the cash flows from operating activities section of a statement of cash flows under the indirect method.

  24. 3、Determining Revenue and Capital Expenditures. The controller for XYZ Co. asks you to review the Repair and Maintenance Expenses account to determine if all of the charges are appropriate. The account contains many transactions totaling $215,540. All of the transactions are considered material. Required:You examine three of the transactions. Indicate whether each transaction is properly charged to the reqair and maintenance account and, if not, indicate why not and to which account the transaction should be charged. The three transactions as follows: Item Date Amount Decription (1)、 01/03/2008 $10000 Two-year service contract on office equipment (2)、 05/18/2008 $38500 Sealing roof leaks over entire production plant (3)、 10/20/2008 $48500 Purchase a crane for the assembly departement

  25. Thank You!

More Related