Chapter 1 Overview of
Accounting　1
Listening Materials　1
Learning Objectives　1
Chapter Mind Map　1
Reading Materials　2
1.1 Accounting and Accounting Profession　2
1.1.1 Ethics of Accounting　2
1.1.2 Functions of Accounting　3
1.1.3 Users of Accounting Information　3
1.1.4 Accounting Profession　4
1.2 Accounting Assumptions　4
1.2.1 Business Entity　4
1.2.2 Going-concern　5
1.2.3 Monetary Unit　5
1.2.4 Time Period　6
1.3 Accounting Principles　7
1.3.1 Accrual Basis　7
1.3.2 Historical Cost　8
1.3.3 Realization　9
1.3.4 Matching　9
1.3.5 Full Disclosure　9
1.4 Quality Characteristics of Accounting Information　10
1.4.1 Relevance　11
1.4.2 Reliability　11
1.4.3 Comparability　12
1.4.4 Materiality　12
Key Terminologies　12
Review and Discussion Questions　14
Exercises　14
参考译文　16
Chapter 2 Accounting Cycle　24
Listening Materials　24
Learning Objectives　24
Chapter Mind Map　24
Reading Materials　25
2.1 Accounting Equation and Double-entry Accounting　25
2.1.1 Accounting Equation　25
2.1.2 Double-entry System　25
2.2 Definition of Accounting Cycle　26
2.3 Journals and Ledgers　27
2.3.1 Journals　27
2.3.2 Ledgers　27
2.4 Adjusting　28
2.4.1 Prepaid Expenses　28
2.4.2 Accrued Expenses　29
2.4.3 Accrued Revenues　29
2.4.4 Unearned Revenues　30
2.5 Closing Process　30
2.5.1 Temporary and Permanent Accounts　30
2.5.2 Posting Closing Entries　30
2.6 Trial Balance　31
2.6.1 Steps in Preparing a Trial Balance　31
2.6.2 Searching for and Correcting Errors　32
Key Terminologies　33
Review and Discussion Questions　34
Exercises　34
参考译文　35
Chapter 3 Financial Statements　42
Listening Materials　42
Learning Objectives　42
Chapter Mind Map　42
Reading Materials　43
3.1 Balance Sheet　43
3.1.1 Components of Balance Sheet　43
3.1.2 Format of Balance Sheet　44
3.2 Income Statement　46
3.2.1 Components of Income Statement　47
3.2.2 Forms of Income Statement　48
3.3 Cash Flow Statement　49
3.3.1 Components of Cash Flow Statement　50
3.3.2 Preparation of Cash Flow Statement　50
3.4 Statement of Changes in Equity　53
3.4.1 Components of Statement of Changes in Equity　53
3.4.2 Preparation of Statement of Changes in Equity　53
3.5 Notes to Financial Statements　55
3.5.1 Accounting Policy　55
3.5.2 Financial Instruments　55
3.5.3 Related Party Transactions　55
3.5.4 Contingencies　56
3.5.5 Subsequent Events　56
Key Terminologies　58
Review and Discussion Questions　59
Exercises　60
参考译文　61
Chapter 4 Current Assets　74
Listening Materials　74
Learning Objectives　74
Chapter Mind Map　74
Reading Materials　75
4.1 Monetary Capital　75
4.1.1 Cash　75
4.1.2　Bank Reconciliation　75
4.1.3 Internal Control Over Cash　76
4.1.4 Petty Cash Fund　77
4.1.5 Cash Surplus and Shortage　77
4.2 Receivables　78
4.2.1 Classification of Receivables　78
4.2.2 Bad Debts　78
4.2.3 Estimation of Bad Debts　79
4.3 Inventories　80
4.3.1 Inventory System　81
4.3.2 Cost of Inventory Acquired　81
4.3.3 Ending Inventory Valuation　82
Key Terminologies　83
Review and Discussion Questions　84
Exercises　84
参考译文　85
Chapter 5 Non-current Assets　93
Listening Materials　93
Learning Objectives　93
Chapter Mind Map　93
Reading Materials　94
5.1 Fixed Assets　94
5.1.1 Definition and Characteristics of Fixed Assets　94
5.1.2 Classification of Fixed Assets　94
5.1.3 Costs of Fixed Assets　95
5.1.4 Post-acquisition Expenditures　96
5.1.5 Depreciation and Impairment　96
5.1.6 Disposals of Fixed Assets　97
5.2 Intangible Assets　98
5.2.1 Definition and Characteristics of Intangible Assets　98
5.2.2 Common Types of Intangible Assets　98
5.2.3 Recognition and Measurement of Intangible Assets　99
5.2.4 Post-acquisition Measurement　100
5.2.5 Disposals of Intangible Assets　100
5.3 Investments in Securities　101
5.3.1 Purposes of Investment in Securities　101
5.3.2 Types of Investment in Securities　101
Key Terminologies　103
Review and Discussion Questions　103
Exercises　104
参考译文　105
Chapter 6 Liabilities　112
Listening Materials　112
Learning Objectives　112
Chapter Mind Map　112
Reading Materials　113
6.1 Current Liabilities　113
6.1.1 Definition of Current Liabilities　113
6.1.2 Accounts Payable　113
6.1.3 Short-term Notes Payable　114
6.1.4 Unearned Revenue　114
6.1.5 Short-term Borrowing　114
6.1.6 Accrued Liabilities　114
6.1.7 Dividend Payable　115
6.1.8 Current Portion of Long-term Obligation　115
6.2 Non-current Liabilities　116
6.2.1 Long-term Borrowing　116
6.2.2 Bonds Payable　116
6.2.3 Long-term Notes Payable　117
6.2.4 Pension Plans　117
Key Terminologies　118
Review and Discussion Questions　118
Exercises　119
参考译文　119
Chapter 7 Owner’s Equity　124
Listening Materials　124
Learning Objectives　124
Chapter Mind Map　124
Reading Materials　124
7.1 Forms of Business Entity　125
7.1.1 Sole Proprietorship　125
7.1.2 Partnership　125
7.1.3 Corporation　125
7.2 Owner’s Equity of Corporations　126
7.2.1 Rights of Shareholders　126
7.2.2 Paid-in Capital　127
7.2.3 Retained Earnings　128
7.2.4 Dividends　128
Key Terminologies　129
Review and Discussion Questions　130
Exercises　130
参考译文　131
Chapter 8 Revenue and
Expense　135
Listening Materials　135
Learning Objectives　135
Chapter Mind Map　135
Reading Materials　135
8.1 Revenue　136
8.1.1 Definition of Revenue　136
8.1.2 The Earning Process of Revenue　136
8.1.3 Recognition of Revenue　137
8.2 Expense　138
8.2.1 Definition of Expense　138
8.2.2 Recognition of Expense　139
8.2.3 Main Expense Items　139
Key Terminologies　141
Review and Discussion Questions　141
Exercises　141
参考译文　142
Chapter 9 Cost Accounting　147
Listening Materials　147
Learning Objectives　147
Chapter Mind Map　147
Reading Materials　148
9.1 Overview of Cost Accounting　148
9.1.1 Definition of Cost Accounting　148
9.1.2 Features of Cost Accounting　148
9.1.3 Comparison Between Cost Accounting and Financial Accounting　149
9.2 Cost Classification　149
9.2.1 Direct Cost and Indirect Cost　149
9.2.2　Product Costs and Period Costs　150
9.2.3 Variable Cost, Fixed Cost and Mixed Cost　151
9.2.4 Incremental Cost, Opportunity Cost, and Sunk Cost　151
9.3 Costing Method　152
9.3.1 Job-order Costing　153
9.3.2 Process Costing　153
9.3.3 Activity Based Costing　154
Key Terminologies　156
Review and Discussion Questions　157
Exercises　157
参考译文　158
Chapter 10 Auditing　165
Listening Materials　165
Learning Objectives　165
Chapter Mind Map　165
Reading Materials　166
10.1 Introduction to Auditing　166
10.1.1 Definition of Auditing　166
10.1.2 Classification of Auditing　167
10.1.3 Types of Auditors　168
10.1.4　Auditing Report　169
10.2 Auditing Procedure　170
10.2.1 Management Assertions　170
10.2.2 Identify Auditing Objectives　171
10.2.3 Implementation of Auditing　172
10.3 Internal Control　175
10.3.1 Definition of Internal Control　175
10.3.2 Development History of Internal Control　175
10.3.3 Elements of Internal Control　176
Key Terminologies　178
Review and Discussion Questions　179
Exercises　179
参考译文　180