Chapter 16 Intermediate Accounting

Outline  Main content  Focuses of every accounting factors  Financial statements  The definition of introductory accounting,intermediate accounting and advanced accounting

Main content  Accounting factors +financial statements  AF: recognition, measurement,record and disclosure  Increase,decrease, finial measurement  FS: types,functions,structure and preparation

Cash  Internal control over cash transactions  Cash management (cost and solvency)  Prepare a bank reconciliations  Describe the operation of a petty cash fund

Accounts and notes receivable  The allowance method and direct write off method  Prepare estimates of uncollectible account  Discounting note receivable

Inventories  Perpetual inventory system and periodic system  Methods of determining cost of gold sold  LCM and write-down of inventory

Investment  Purposes of investment  Classification of investment  Accounting method for long-term share investment: cost method and equity method

Fixed asset and intangible asset  Determine the cost of plant asset  Distinguish between capital expenditures and revenue expenditures  Depreciation : functions,methods  Impairment of long-lived assets

Liabilities  Benefit and risk from liabilities  Bond : premium and discount,

The owner’s equity  Types of organizational form  Capital and retained earnings  Invested capital (legal capital ),capital reserve,surplus reserve,undistributed reserve  The functions of OE

Financial statements  balance sheet  Income statement  Statement of cash flow

Common sense in accounting  Account set rules  Revenue,income,return  The concept system of expenses  The relationship among assets,expenses and profits  Accounting and tax  Professional judgment, fiduciary relationship, ethics

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