1. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill INTRODUCTION Accounting: The Language of Business

2. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Question one What kind of information is helpful for your decision making if you plan to run a restaurant near the campus? How many employees are required? How many tables and chairs are needed? What is the expected profit? Where do you get the funds? What are all the economic activities?

3. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Question one What kind of information is helpful for your decision making if you plan to run a restaurant near the campus? accounting information

4. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Accounting is the language of business  Summarize and interpret information for decision makers.  Classify similar transactions into useful reports.  Analyze business transactions. In financial or monetary terms

5. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill An event that has a direct effect on the operations of an economic unit and can be expressed in monetary terms Business Transaction=Accounting Transaction

6. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill An outline of the history of Accounting Prelude period: tying knots on ropes 结绳记事 Making marks on the wall Double-entry bookkeeping 复式记账法 Birth of Bookkeeping single-entry bookkeeping 单式记账法

7. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Present status: four major schools British school American school Socialist school International school

8. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Integrity of Accounting Information Generally Accepted Accounting Principles （一般公认会计准则） True and fair view （真实和公允原则） Accounting Standards for Business Enterprises （企业会计准则） General Financial Rules for Business Enterprises （企业财务通则）

9. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Accounting and Bookkeeping Item Bookkeeping( 簿记 )Accounting( 会计 ) ScopeThe recording of transactions, only a small segment of accounting Bookkeeping, tax work and financial forecast, designing the system of records, preparation and interpretation of reports DefinitionThe work can be handled by mechanical and electronic equipment. It is an art, which need much higher level of knowledge and analytical skills, and conceptual understanding.

10. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Classification of Accounting Private accounting 企业会计 Public accounting 公众会计 Serving one single enterpriseServing the whole society Chief controller CFO CPA 注册会计师

11. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill “Big four” international CPA firms KPMG: WWW.KPMG.COMWWW.KPMG.COM ( 毕马威会计师事务所 ) PWC: WWW.PRICEWC.COMWWW.PRICEWC.COM ( 普华永道会计师事务所 ) Ernst&Yong: www.ey.comwww.ey.com ( 安永会计师事务所 ) Deloitte&Touche: www.dt.comwww.dt.com ( 德勤会计师事务所 )

12. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Professional Organizations in the UK and the US  Association of Chartered Certified Accountants 英国特许公认会计师协会  American Institute of Certified Public Accountants 美国注册会计师协会  Financial Accounting Standards Board （美国）财务会计准则委员会  International Accounting Standards Committee 国际会计准则委员会

13. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Financial accounting and managerial accounting Financial accounting records the transactions of a business entity and summarizes them in accordance with accounting principles and company law. Managerial accounting provides information that helps managers plan, evaluate company activities and make business decisions.

14. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The primary financial statements. Objectives of External Financial Reporting Income Statement Balance Sheet Statement of Cash Flows

15. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Accounting entity A profit-seeking business entity Sole proprietorship Partnership Corporation

16. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill

17. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill End of Introduction