Unit 1 Introduction of Accounting 1
1.1　The Role of Accounting in Business　1
1.1.1　The Nature and Function of
Accounting　2
1.1.2　The Division of Accounting　3
1.2　Accounting Ethics　5
Important　Words and Special Terms　6
Exercise　7
Unit　2 Some of Generally Accepted
Accounting　Principles　8
2.1　The Monetary Convention　9
2.2　Accrual Basis of Accounting　9
2.2.1　The Cash Basis of
Accounting　10
2.2.2　The Accrual Basis of Accounting　10
2.3　Going Concern　10
2.4　Matching Principle and Revenue
Recognition　11
Important　Words and Special Terms　11
Exercise　13
Unit　3 Accounting Equation and
Double-Entry　system　15
3.1　Accounting equation　15
3.2　Accounting elements　15
3.3　Accounting elements in the accounting equation　17
3.4　T account　18
3.5　Double-entry System　18
Important　Words and Special Terms　18
Exercise　19
Unit　4 Accounting Cycle　21
4.1　Identify transactions to be recorded　21
4.2　Journalizing　30
4.3　Posting from Journal to
Ledger　35
4.4　Preparing Unadjusted Trial Balance　38
5.4.1　Accounting Basis　39
5.4.2　Adjusting entries　39
4.5　The Adjusted Trial Balance　45
4.6　Closing　50
Important　Words and Special Terms　54
Exercises　55
Unit　5 Assets　60
5.1　Current Asset　61
5.1.1　Cash　61
5.1.2　Account Receivable　62
5.1.3　Inventory　65
5.2　Fixed Assets　67
5.2.1　Measuring the cost of Property, Plant and Equipment　67
5.2.2　Depreciable　67
5.3　Intangible Assets　70
Important　Words and Special Terms　70
Exercises　71
Unit　6 Liabilities　74
6.1　Current liabilities　74
6.1.1　Short –term Bills(notes) and
Accounts　payable　75
6.1.2　Accrued expenses　75
6.1.3　Unearned revenues　76
6.1.4　Current maturities of Long-term debts　76
6.1.5　Contingent liabilities　76
7.2　Long-term liabilities　76
6.2.1　Long-term loans payable　76
6.2.2　Long-term accounts payable　77
6.2.3　Bonds (debenture) payable　77
Important　Words and Special Terms　79
Exercises　79
Unit　7 Owner’s equity　81
7.1　Paid-up capital　82
7.1.1　Ordinary shares
（common　stock）　82
7.1.2　Preference shares
(preferred　stock)　83
7.2　Retained profits are earned from
the　customers　83
Important　Words and Special Terms　84
Exercises　84
Unit　8Revenue,expense,profit　90
8.1　revenue
　8.1.1 The concept of revenue
8.1.2　The characteristics of the revenue.
8.1.3　TRADE AND CASH DISCOUNTS
8.1.4　SALES FOR CASH.
8.1.5　SALES ON CREDIT.
8.2　expense
8.2.1　The concept of expense
8.2.2　The characteristics of the expense
8.2.3　The classification of expense
8.3　profit
8.3.1　The concept of profit
8.3.2　The composition of profit
8.3.3　The formation of the profits
8.3.4　Accounting content of profit


distribution
Exercises
Unit　9 Balance Sheet,Income Statement and cash flows Statement　86
9.1　Balance Sheet　86
9.1.1　Purpose of Balance Sheet　86
9.1.2　Format of Balance Sheet　87
9.1.3　Advantages and Limitation
of　the Balance Sheet　91
9.2　Income statement　92
9.2.1　The function of income statement　92
9.2.2　Single-step Income
Statement　93
9.2.3　Multiple-step Income Statement　95
Important　Words and Special Terms　97
9.3　The Role of Cash Flow Statement　99
9.3.1　Meaning of “Cash Flows”　99
9.3.2　Importance of Cash Flow
Statement　100
9.4　Categories of Cash Flow　101
9.4.1　Operating Activities　101
9.4.2　Investing Activities　104
9.4.3　Financing Activities　105
94.5　Direct and Indirect
Exercises
Unit　10 Financial statement analysis
10.1　Debt paying ability analysis
10.1.1　Short-term debt paying ability index
10.1.2　Long-term solvency indicators
10.2　Operation capability index


analysis
10.2.1　The current assets turnover
situation
10.2.2　Fixed assets turnover
10.2.3　The total asset turnover
10.3　Profitability analysis
10.4　case analysis
Exercises　112
Appendix　I 参考答案　117
Appendix　II 课文参考译文　127
第 1单元　会计概论　127
第 2单元　公认会计原则　130
第3单元　会计等式和复式记账　132
第4单元　会计循环　139
第5单元　资产　158
第6单元　负债　166
第7单元　所有者权益　170
第8单元　收入费用和利润
第9单元　资产负债表和损益表、现金流量表　172
第 10单元　财务报表分析　181
参考文献　192