2024年2月17日发(作者：)

会计专业英语词汇

obligation

债项；责任；义obligation bond

债务债券

obligee

受惠人

occupational retirement scheme

职业退休计划

Occupational Retirement Schemes Division [Financial Services Bureau]

退休计划部〔财经事务局〕

odd lot

散股；碎股；零股

odd lot broker

散股经纪

OECD country

经济合作及发展组织国家；经济合作及发展组织的成员国

OECD stock market

经济合作及发展组织国家的证券市场

off-balance-sheet exposure

资产负债表外的风险

off-balance-sheet financing

帐外融资；资产负债表外的融资

off-balance-sheet item

资产负债表外的项目

off-balance-sheet transaction

帐外交易；资产负债表外的交易

offer

要约；建议；收购

offer by tender

招标发售

offer document

要约文件；建议文件

offer for sale

要约出售

offer for subscription

公开招股

offer mechanism

招股机制

offer of shares for public subscription

公开招股

offer period

要约期

offer price

要约价；发盘价

offer rate

拆出息率

offer to buy

要约买入

offer to lend

要约贷出

offer to sell

要约卖出

offeree

受要约人

offeree company

受要约公司

offeree shareholder

受要约公司的股东

offeror

要约人

offeror company

要约公司；提出要约公司

off-floor terminal

离场交易终端机

off-floor trading

离场交易

office of profit

有收益的职位

Office of the Commissioner for Securities and Commodities Trading

证券及商品交易监理专员办事处

Office of the Commissioner of Banking

银行业监理处

Office of the Commissioner of Insurance

保险业监理处

Office of the Exchange Fund

外汇基金管理局

Office of the Telecommunications Authority Trading Fund

电讯管理局营运基金

Official Administrator

遗产管理官

official emolument

官职薪酬

official listing

正式上市

official rate

法定汇率；官价

Official Receiver

破产管理署署长

Official Receiver's Office

破产管理署

official trustee

法定受托人

off-market dealing

场外买卖

offset

抵销；弥补；冲销

offsetting position

相抵持仓

offshore bank

离岸银行

offshore borrowing

海外借款

offshore borrowing transaction

海外借款交易

offshore business

海外业务

offshore currency deposit market

海外货币存款市场

offshore fund

离岸基金

offshore interest

海外利息

offshore reinsurance income

离岸再保险入息

Offshore Supervisors Group

离岸监理组织

off-site review

非实地审查

off-site scrutiny

非实地审核

Ogaki Kyoritsu Bank, Ltd.

大垣共立银行

omission of income

漏报入息

omission of profit

漏报利润

on account basis

记帐方式；赊帐方式

on-balance-sheet item

资产负债表内的项目

on-cost

间接成本；间接费用；附加行政费用

one board lot of securities

“一手”证券

"one building" condition

“一家分行”的规定

one day rolling currency futures

单日掉期外汇期货

one day rolling currency futures contract

单日掉期外汇期货合约

one price

单一价格；不二价

one-line vote

整笔拨款

one-off grant

一次过拨款

one-off item

非经常项目

one-off payment

一次过拨款；单一笔款项

one-off subsidy

一次过补贴

onerous tax

繁苛税项；繁重税率

on-floor order

场内买卖盘

on-lending

转借

on-site examination

实地审查

open a position

“做仓”；开仓

open account

未清帐户；记帐交易；往来帐户

open contract

未平仓合约

open economy

开放经济

open interest

未平仓合约数量

open market

公开市场

open market value

公开市场价值；市值

open offer [listing method]

公开售股〔上市方式〕

open order

开仓订单

open outcry

公开叫价；公开喊价

open position

未平仓交易

open price

开仓价格

open tender

公开投标

open-end fund

开端基金

open-ended investment corporation

股份不定的投资公司

opening balance

期初结余

opening price

开盘价格；开市价

opening quotation

开市价；开市行情

opening rate

开盘汇价

operating account

营业帐目；营业帐户；经营帐目

operating agreement

营运协议

operating cost

营运成本；运作成本；操作成本

operating deficit

营业亏损；经营赤字

operating expenditure

经营开支；营运开支；营业支出

operating expenses

营运开支；营业费用

operating income

营运收入；营业收入

operating loan

经营业务所需贷款

operating profit

营业利润

operating revenue

营运收入；营业收益

operating services account

营运服务帐目

operating statement

经营收支表；营业损益表

operating surplus

经营盈余；营业盈余

operation

经营；营运；投产

operational fund

经费

operative aggregate

现行总体数字

operator

经营者；营运者；营办商

opportunity cost

机会成本

optimist

“好友”

optimum rate of expenditure

最适当支出率

option

期权；认购权；选择权；选购权

option contract

期权合约

option money

期权费

option on a futures contract

期货合约期权；期货期权

option on commodities

商品期权

option position

期权持仓量

option premium

期权金；期权溢价

optional stipulation

选择性规定

Options Clearing Corporation [Chicago]

期权结算公司〔芝加哥〕

Options Clearing House Pty Limited [Sydney]

期权结算所有限公司〔悉尼〕

Options Clearing Rules

《期权结算规则》

options market

期权市场

options market maker

期权“庄家”

options pricing model

期权定价模式

options trading

期权交易

options trading member

期权交易会员

Options Trading Rules

《期权交易规则》

order

订单；命令；买卖盘

order cheque

记名支票；抬头支票

order for payment of money

付款指令票据

order for purchase

订购书

order for redirection

转寄令

order for sale

售卖令

order of discharge

破产解除令

order of foreclosure absolute

绝对止赎令

order of mail transfer

信汇委托书

order to pay admitted debt

偿付承认债项令

order-based system

以买卖盘为基础的制度

ordinary annual contribution

经常性每年捐款

ordinary course of business

通常业务运作

ordinary creditor

普通债权人

ordinary share

普通股

ordinary share capital

普通股股本

organization expenses

开办费

Organization for Economic Co-operation and Development [OECD]

经济合作及发展组织〔经合组织〕

Organization of Petroleum Exporting Countries [OPEC]

石油出口国组织

Orient First Capital Limited

建银财务（香港）有限公司

original estimates

原来预算

original executor

原遗嘱执行人

original issue price

原本发行价

original margin

原始保证金；基本按金

original mortgagee

原承按人

original mortgagor

原按揭人

original receipt

收据正本；收条正本

original securities

原有的证券

ORIX Asia Limited

欧力士（亚洲）有限公司

ornament gold

饰金

Osaka Securities Exchange

大阪证券交易所

Oslo Stock Exchange

奥斯陆证券交易所

O.T.B. Card Co. Ltd.

海外信用卡有限公司

ounce troy

金衡安士

outflow of capital

资本外流；资金外流

outflow of fund

资金外流

outflow of money

资金外流

outgoing partner

退出的合伙人

outgoings

支出

outgoings and expenses

支出及开支

outlay

费用；开支；支出

outlying business district

市区外商业区

out-of-hours trading

在正式交易时间以外的交易

out-of-pocket expenses

实付费用；付现费用

out-of-the-money option

无价期权；价外期权

outport collection

外埠代收款项

output

产出；产值；产量

outside dealing

场外买卖；场外交易

outstanding

未偿还；尚未支付

outstanding account

未清帐项；未清帐目

outstanding allocation

应拨未拨的款项

outstanding amount

未偿还的数额

outstanding balance

未清帐款；未清余额

outstanding bill

未偿付票据；未兑现票据

outstanding borrowing

未清偿债项

outstanding claim portfolio

未决申索组合

outstanding commitment

尚未支付的承担额

outstanding derivatives contract

尚未平仓的衍生工具合约

outstanding loan

尚未清还的贷款

outstanding negotiable certificate of deposit

未兑现的可转让存款证

outstanding tax

欠税

outstanding uncapitalized interest

尚未支付且未化作本金的利息

outturn

结算；结算数字

outward documentary bill

出口跟单汇票

outward remittance

汇出汇款

over and above inflation

减除通胀因素

overall average internal rate of return

平均总体内部回报率

overall Consumer Price Index

总体消费物价指数

overall domestic export

本地产品出口总额

overall growth rate

整体增长率；总增长率

overall investment

总投资额；总体投资

overall liquidity ratio

总体流动资金比率

overall price relative

全面相对价格

overall surplus

总盈余

overall tally

全面总计

overbuying

超买；买空

over-commitment

超额承担

overdraft

透支

overdraft by banks abroad

海外银行同业透支

overdraft by banks in foreign countries

外国银行同业透支

overdraft by local banks

本港银行同业透支

overdraft by outport banks

外埠银行同业透支

overdraft of an account

户口透支

overdraft on banks

向银行同业透支

overdraft on banks abroad

向海外银行同业透支

overdraft on banks in foreign countries

向外国银行同业透支

overdraft on local banks

向本港银行同业透支

overdraft on outport banks

向外埠银行同业透支

overdraft secured

抵押透支

overdue

逾期

overdue loan

过期贷款

over-employed economy

过度活跃的经济

overhang

剩余承担；未完成的承担额；过剩额

overhead

间接费用；间接成本

overhead cost

间接成本

overheated economy

过热的经济

overheated market

过热的市场

overnight Hong Kong interbank offered rate

香港银行同业隔夜拆息率

overnight liquidity assistance

隔夜流动资金贷款

overnight margin

隔夜保证金；隔夜按金

overnight money

隔夜拆借资金；隔夜钱

overnight position

隔夜头寸

overnight rate

隔夜利率

overpaid amount

多缴数额

overpayment of contribution

多缴供款

overrun

超支

overrun cost

超额费用

Oversea-Chinese Banking Corporation Ltd.

华侨银行有限公司

overseas bank

海外银行

overseas banking corporation

海外银行法团

overseas branch

海外分行

Overseas Companies Section [Companies Registry]

海外公司注册组〔公司注册处〕

overseas currency balance

海外货币结余

overseas financial institution

海外财务机构

overseas interest

海外利息

overseas investment

海外投资

overseas market

海外市场

overseas representative office

海外代表办事处

Overseas Trust Bank Ltd.

海外信托银行有限公司

Overseas Union Bank Ltd.

华联银行

overselling

超卖；卖空

oversight of markets

监察市场

over-spending

超额支出；超支

overtax

超额征税；征税过重

over-the-counter derivative

场外交易衍生工具

over-the-counter market

场外交易市场

over-the-counter trading

场外交易；柜台交易

over-the-counter transaction

场外交易；柜台交易

overtrading

过量交易

owner-occupier allowance

自住业主津贴

ownership

所有权；拥有权

ownership in common

分权共有权

会计专业英语

会计专业英语

Accounting

English

INTRODUCTION TO ACCOUNTING ENGLISH 5

CHAPTER 1 INTRODUCTION TO ACCOUNTING 6

§ 1.1 THE IMPORTANCE OF ACCOUNTING （会计的重要性） 6

§ 1.2．ACCOUNTING AS A PROFESSION （会计职业） 7

§ 1.3．ACCOUNTING KNOWLEDGE SYSTEM（会计学科体系） 7

§ 1.4．PROFESSIONAL ACCOUNTING BODIES（专业会计团体） 8

§ 1.5．ACCOUNTING POLICIES AND ACCOUNTING STANDARD 9

（会计的法规体系和基本会计准则） 9

§ 1.6．FUNDAMENTAL ACCOUNTING CONCEPTS (基本会计理念) 10

1.6. 1. FOUR BASIC ACCOUNTING ASSUMPTIONS 10

1.6.2. IMPORTANT BASIC ACCOUNTING PRINCIPLES 11

CHAPTER 2 THE ACCOUNTING ELEMENTS AND EQUATION 13

2.1．THE ACCOUNTING ELEMENTS 13

2.1.1 ASSETS 13

2.1.2 LIABILITIES 负债 14

2.1.3 OWNER’S EQUITY 所有者权益 14

2.1.4 REVENUE (INCOME) 收入 15

2.1.5 EXPENSE (OUTCOME) 费用 15

2.1.6 PROFIT/ LOSS 利润或亏损 15

2.2. THE ACCOUNTING EQUATION 16

2.2.1 THE ACCOUNTING EQUITATION（会计恒等式） 16

2.2.2 HOW THE BUSINESS TRANSACTIONS EFFECT ON THE ACCOUNTING

EQUITATION (经济业务与会计恒等式的关系) 16

2.2.3 CONCLUSION 18

EXERCISES 18

CHAPTER 3 DOUBLE ENTRY ACCOUNTING & LEDGER ACCOUNTS 19

3.1. THE DOUBLE ENTRY ACCOUNTING (复式记账) 19

3.2. APPLICATION OF DOUBLE-ENTRY ACCOUNTING PRINCIPLE (复式记账的应用) 21

3.3. THE LEDGER ACCOUNTS分类账户 22

3.3.1 THE LEDGER ACCOUNTS 22

3.3.2 PRACTICE: RECORD THE TRANSACTIONS ON THE RELEVANT LEDGER

ACCOUNTS (实训: 登T型账) 23

3.4 TRIAL BALANCE (试算平衡) 26

26

TABLE 3.4 :TRIAL BALANCE (试算平衡表) 27

CHAPTER 4 TRANSACTIONS & DOUBLE-ENTRY ACCOUNTING 31

4.1. INTRODUCTION OF BUSINESS OPERATIONS: 31

4.2. ACCOUNTING FOR MERCHANDISING BUSINESSES 33

4.2.1 ACCOUNTING FOR SUPPLYING TRANSACTIONS(供应过程的会计核算) 33

--- MERCHANDISES / INVENTORY（存货, 货物） 33

4.2.2 ACCOUNTING FOR SALES TRANSACTIONS（销售过程的会计核算） 37

4.3. MANUFACTURING BUSINESS 40

4.3.1 INTRODUCTION OF MANUFACTURING CYCLES 40

4.3.2 ACCOUNTING FOR MANUFACTURING PROCESSES (生产过程的会计核算) 41

4.4. REVISION CLASSES 43

CHAPTER 5 BASIC FINANCIAL STATEMENT 45

5.1. BALANCE SHEETS (资产负债表) 45

5.1.1 EXHIBITION5-1: BALANCE SHEET 46

5.1.2 PRACTICAL EXAMPLE OF BALANCE SHEET 48

-- PRACTICAL EXAMPLE 1(实例 1 ): BALANCE SHEET OF ABC CO. LTD 48

-- PRACTICAL EXAMPLE 2(实例 2 ): BALANCE SHEET OF TM CO. LTD 48

5.2. INCOME STATEMENT (OR PROFIT AND LOSS STATEMENT) (利润表) 51

5.2.1 EXHIBITION5-2: INCOME STATEMENT 52

-- PRACTICAL EXAMPLE 1(实例 1 ): INCOME STATEMENT OF XYZ CO. LTD 53

-- PRACTICAL EXAMPLE 2(实例 2 ): BALANCE SHEET OF TM CO. LTD 54

5.3. CASH FLOW STATEMENTS (现金流量表) 56

5.3.1 CLASSIFICATION OF CASH FLOWS 56

5.3.2 EXHIBITION5-3: CASH FLOW STATEMENT 57

-- PRACTICAL EXAMPLE 1(实例 1 ): STATEMENT OF CASH FLOW XYZ CO. LTD 59

CHAPTER 6 ACCOUNTING CYCLES 61

6.1. STEPS IN ACCOUNTING CYCLE 61

6.2. RECORDING JOURNAL ENTRIES AND POSTING TO LEDGER ACCOUNTS （编制日记账和登记总账） 62

6.2.1 WHAT SHOULD BE POSTED? 62

6.3. ADJUSTING ENTRIES （账户的调整） 64

6.3. CLOSING ENTRIES (临时账户的结转) 67

CHAPTER 7 SAMPLE DOCUMENTS 61

7.1. BILLS (票据) 69

7.1.1 汇票 69

7.1.1支票 70

7.2. INVOICES (单据) 72

7.2.1 合同 72

7.2.2海运提单 73

7.2.3装箱单 76

7.3. OTHER RELEVANT DOCUMENTS(其它凭证和文件) 78

CHAPTER 8 APPENDIXES 91

第一节：英语最常用口语118句 91

第二节：公司部门名称对照 94

第三节：常见职务中英对照 95

Introduction to Accounting English

会计英语概论

l Why do we learn it? （为什么要学《会计英语》?）

（1）跨国公司（2）国际业务（3）国际投资

l What are the Learning objectives? （《会计英语》的学习目标？）

1．快速掌握财会专业通用英语词汇，以提高专业英语能力。

2．快速掌握西方财务会计的基本知识，以提高专业素质。

3．熟练掌握制作基本的英语会计凭证、会计报表和财务报告的技能。

l How to learn it successfully? （如何学好《会计英语》？）

1. 兴趣培养 2. 巧记单词 3. 勤读、勤写和勤译

Example

ü Share - holders（股东） = Share（股票）+ holders（持有者）

ü Share - holder’s Equity = owner’s equity（所有者权益）

= share- holder’s (股东) + Equity（股票价值）

ü Assets (资产) ：

l Current assets (流动资产)：cash（现金），cash in the bank(银行存款)， short-term investments（短期投资）, account receivable(应收账款)

l Non-current assets（非流动资产）：long-term assets （固定资产），intangible assets(无形资产)，long-term investments(长期投资)

ü Liabilities(负债)：

l Current liabilities (流动负债)：account payable(应付账款)、short-term borrowings(短期借款)

l Non-current liabilities（非流动负债）：long-term loan （长期借款），mortgage(按揭贷款)

Chapter 1 Introduction to Accounting

第1章 会计英语概论

Learning Objectives（学习目标）：

After learning of this chapter, the students would have a general knowledge of the importance of

accounting，users of the accounting information，accounting knowledge system， accounting as

a profession，some important professional accounting bodies, the underlying accounting

assumptions and the basic accounting policies.

§ 1.1 The Importance of Accounting （会计的重要性）

2 What is accounting?

In general sense, accounting can be defined as a ―business information system‖ which

communicate the economic activities and condition of a business (in monetary terms) to the

business stakeholders, so that, they can make right decisions.

2 Who are the users of accounting information? - business stakeholders

(a) External business stakeholders（financial accounting information）:

ü Creditors债权人 (e.g. bankers), owners所有者, shareholders,

ü Customers客户, suppliers供应商,

ü governments (e.g. legislation法律, tax税),

ü other organizations (e.g. Trade Union商会, UNEP联合国环境规划署，WTO世界贸易组织)

(b) Internal business stakeholders (managerial accounting information):

ü Directors, CEOs（首席执行官）, managers, supervisors（主管）,

ü employees

§ 1.2．Accounting as a profession （会计职业）

A person who specializes in the accounting field is known as an accountant. But, what specifically

your careers will be?

For example：

Financial accountant (财务会计) / Cost accountant (成本会计)

Managerial accountant（管理会计）/ CFO (chief financial officer)（首席财务官）

Internal auditor （内部审计）/ tax accountant (税务会计)

CPA （注册会计师）/ External auditor (外部审计)

§ 1.3．Accounting knowledge system（会计学科体系）

会计学科体系 中文对照 职业对照

Accounting 会计学 Accountant

Financial Accounting 财务会计 Financial accountant

Cost Accounting 成本会计 Cost accountant

Managerial Accounting 管理会计 Managerial accountant

Tax Accounting 税务会计 Tax accountant

Auditing 审计学 Internal auditor /External auditor

Others:Accounting TheoryInternational AccountingComparative Accounting 会计理论国际会计比较会计

§ 1.4．Professional accounting bodies（专业会计团体）

(1) Examples of foreign professional accounting bodies:

ACCA 英国特许公认会计师公会

AICPA America 美国注册会计师协会

CGA Canada 加拿大注册会计师公会

CPA Australia 澳大利亚注册会计师公会

(2) The “Big Four” international accounting companies（全球规模最大的四个会计师事务所）

事务所名称 主要起源国 员工数（1999年数据）

KPMG（毕马威） 荷兰、英国、美国、德国 7万3千

Ernst & Young（E&Y） (安永) 美国、英国 6万8千

Pricewaterhouse Cooper（PWC）(普华 -- 永道） 英国、美国 11万3千

Deloitte Touche Tohmatsu (D&T)（德勤） 英国、美国、加拿大、日本 6万1千

Arthur Andersen (AA)(安达信) 美国（2002年因“安然破产事件”已停止营业） 5万1千

§ 1.5．Accounting policies and accounting standard

（会计的法规体系和基本会计准则）

Our country’s financial accounting regulations system is constituted by ‘Accounting Law’,

‘Corporate accounting standards’, ‘corporate accounting regulations’ (我国企业财务会计法规体系由会计法、企业会计准则、企业会计制度组成)。

Other important accounting regulations in the world include:

IAS 国际会计准则

FRS 英国财务报告准则

AASB 澳大利亚会计准则

FAS 美国财务会计准则

SEC 证券交易委员会的财务会计文件公告（e.g. SEC1，2，3，4）

GAAP 企业会计实务公认会计原则

§ 1.6．Fundamental accounting concepts (基本会计理念)

1.6. 1. Four Basic accounting assumptions (会计核算的基本假设)

l （1）Economic Entity Assumption （“会计主体”假设）

Economic Entity Assumption assumes that the business is a separate entity from its owners.

l （2）Going Concern Assumption （“持续经营”假设）

Going Concern Assumption assumes that the business will be in operation for an infinite time.

l （3）Monetary Unit Assumption （“货币计量”假设）

Monetary Unit Assumption Assumes a stable currency is going to be the unit of record. In our

country, the monetary unit is Chinese ￥

l （4）Periodicity Assumption （“会计期间”假设）

Periodicity Assumption assumes that the business operations can be recorded and separated into

different periods.

Our provides that our country’s accounting period is one year, which is from

every year’s 1st/01 to 31st/12 It is also called a financial year (财政年度)。For some countries, the

financial year starts from 1st/07and end to 30/06.

1.6.2. Important basic accounting principles (会计核算的基本原则)

(1) Principle of objectivity（“真实性”或“客观性”原则）

Information in the accounting records should be based on the most reliable data. If it is possible,

use the verifiable official market prices rather than obtained by personal judgment or estimation

(e.g. invoices 发票, receipts收据, price estimated by professional organizations 专业机构估价).

(2) Historical Cost principle (“历史成本”原则)

Assets acquired, services, sales and expenses are recorded at their acquisition (historical) costs and

the Costs are maintained in the records until a sale or disposal, despite fluctuations in the market

price.

(3) Revenue recognition principle

K Under the Accrual basis accounting(“权责发生制”或“应收应付制”原则): Revenues and

expenses are recognized as earned at the time of sale, regardless whether the cash for that is

actually received or expensed. The time that sale is made is the time when the legal ownership of

the products are transferred to the buyers. Our country’s corporate accounting standards require

companies to use the Accrual basis accounting.

K Cash basis accounting (“现金制”或“实收实付制”) is opposed(相反), which recognize

revenues when money is received or recognize expenses when money is expensed.

(4) Matching principle（“配比制”原则）

This principle requires companies to use the accrual basis of accounting. Expenses are the

resources consumed to generate revenue in a business. It requires expenses be matched with

revenues.

(5) Principle of conservatism （“谨慎性”原则）

Potential losses should be recognized in the accounting records as soon as they are foreseen.

Alternately, potential gains are not recognized until they occur; that is, until they are realized.

(6) Principle of full disclosure （“重要性”原则）

A company’s financial statements should report enough information for outsiders to make

informed decisions about the company. It can be reflected in the statement ( bad debts 坏账准备金/ depreciations 累计折旧) or explained by the footnotes（脚注或附注）. However, the company

should also consider the cost-benefits to obtain such a full disclosure.

(7) Principle of materiality （“决策重要性”原则）

If a transaction or a transaction amount affects a business decision, it is relevant and significant

(material重要). Such a transaction or amount requires strict adherence to proper accounting

procedures. Insignificant（不重要） transactions and amounts may be recorded as is most

convenient.

We as decision makers, also expect the information provided to be consistent along the periods

and to be comparable with other entities.

(8) Principle of consistency （“一致性”原则）

In order to compare financial performance from period to period, one business should employ the

same accounting procedures during each period, if it is not subject to specific policies.

(9) Principle of Comparability (“可比性”原则)

Financial information of one company can be compared to the financial information of another

company in the same industry. This means companies should follow some similar rules to conduct

accounting.

Chapter 2 The Accounting Elements and Equation

第2章 会计要素 与 会计恒等式

Learning Objectives（学习目标）：

After learning of this chapter, the students would master the required knowledge of accounting

elements and accounting equation, and the effects of business transactions on the accounting

equation.

2.1．The accounting elements (会计要素)

The accounting information is classified into 6 categories：Assets，liabilities, owners’ Equity,

Revenue, Expense and Net earnings(or Net loss). They are called the six accounting elements.

2.1.1 Assets 资产

l What are Assets?

They are future economic benefits(经济利益) owned or controlled（拥有或控制） by the entity as

a result of past transactions（交易） or other events（事件）.

l Assets are divided into two categories:

l Current Assets （< 1 year）

– Cash 现金/ cash in the bank银行存款

– Items of value that will be converted to cash within one year of the statement date (e.g.

6-months term deposit, account receivable)

– Items can be used up (consumed) within one year of the statement date (e.g. Prepaid Rent预付租金, )

l Non-current Assets ( > 1 year)

– Items of value that the firm intend to hold for longer than one year from the statement date.

(e.g. Equipment设备, Motor Vehicles车辆).

2.1.2 Liabilities 负债

l What are liabilities?

Liabilities are future sacrifices of economic benefits (未来经济利益的流出) that an entity is

presently obliged(现时的义务) to make to other entities as a result of past transactions or other

events .

l Liabilities are also divided into two categories:

l Current liabilities ( < one year) :

– Debts that are due to be repaid within one year (e.g. Account payable应收账款, Bank

overdraft银行透支款, 6 Months Bank Loan 6个月银行贷款)

l Non-current liabilities （ > one year）:

– Debts that are due for repayment after one year (e.g. 5 year loan 5年期银行贷款, mortgage按揭贷款)

2.1.3 Owner’s equity 所有者权益

l What is Owners’ Equity?

Owner’s equities are the owners’ claim on the entity’s net assets or residual value of assets(净

资产).

l Owner’s equity includes：

（1）Owner’s investment in the business (e.g. capital实收资本);

（2）Accumulated operating benefits from the beginning of the operation（e.g. retained profits未分配利润, Surplus reserves 盈余公积，dividends股利）。

2.1.4 Revenue (Income) 收入

l What is revenue?

Revenue is the inflow of the economic resources into the entity as a result of the activities (such as

providing goods or services to other economic entities, and so on). Increase in revenue will

increase the amount Owner’s Equity.

l The examples of revenue include: sales revenue, service revenue, and investment revenue, ect.

2.1.5 Expense (Outcome) 费用

l What is expense?

Expense are the outflow of a business’s economic resources resulting from the activities (such as

purchasing goods or receiving services from other economic entities，and so on). Increase in

expense will decrease owner’s equity.

l The examples of revenue include: Cost of goods sold(生产成本)，labors costs( 劳务费用)，administrative expenses（管理费用），manufactory costs(制造费用)，financial costs(财务费用)，sales costs(营业费用)， and so on。

2.1.6 Profit/ loss 利润或亏损

l What is profit (or loss)?

n Profit is the amount of incomes minuses(减去)expenses, if it is positive(正). It is also called net

income or net earnings.

n Net Loss is the amount of incomes minuses(减去)expenses, if it is negative （负）.

2.2. The accounting equation （会计恒等式）

2.2.1 The accounting equitation（会计恒等式）

Assets = Equities (所有权)

Creditors债权人 Owners（所有者）

Assets = liabilities + owner’s equity

资产 = 负债 + 所有者权益

2.2.2 How the business transactions effect on the accounting equitation (经济业务与会计恒等式

的关系)

Any activity of a business which affects the accounting equitation is a transaction. The effect of

any transaction on the accounting equation may be indicated by increasing or decreasing a specific

asset, liability or owner’s equity.

n Transaction (1): Andy is one owner of ABC company, he invested $30,000 cash in the company.

Solution: Assets = liabilities + owner’s Equity

Cash + $30,000 Andy, Capital +$30,000

In Balance : + $30，000 = + $30,000

Effect on accounting equation: an increase in asset offset by an increase in the owner’s equity

n Transaction (2): ABC company purchased office equipment from Kingdom company for $2 000

on credit (赊购)

Solution: Assets = liabilities + owner’s Equity

Office equipment + $2000 Account payable +$2000

In Balance: + $2000 = + $2000

Effect on accounting equation: an increase in an asset offset by an increase in a liability

n Transaction (3): ABC company purchased office supplies(办公用品) for $350 in cash

Solution: Assets = liabilities + owner’s Equity

Office supplies + $350

Cash - $350

In Balance

Effect on accounting equation: an increase in an asset offset by an decrease in another assets

n Transaction (4): ABC Co. pay the amount owed to Kingdom Co. use cash in its bank account

Solution: Assets = liabilities + owner’s Equity

Cash in the bank - $2000 Account payable - $2000

In Balance: - $2000 = - $2000

Effect on accounting equation: a decrease in an asset offset by a decrease in a liability

2.2.3 Conclusion

From the above analysis, it can be concludes that each business transaction produces at least two

effects on the accounting equation which always keeps balance after all the transaction (The total

amount of left-hand side equals that of the right-hand side). No matter what transactions occurred,

the balance of the accounting equation will never be broken up.

Exercises

Case案例1: Michael’s dental clinic incurred following transactions：

1) Initial Investment of $4000 started the business投资4000美元开业。

2) Bought office supplies by cash $300支付300美元现金买办公用品。

3) Bought office furniture from Brown Furniture Co. on credit $2000从布朗家具公司赊账购买

家具2000美元。

Case案例2: the business transaction for John. Watt Co. in Jan.

1) Received $1000 in cash for the service performed提供服务，收取现金1000美元.

2) Paid wages to an employee $500 for cash以现金支付雇员工资500美元

Chapter 3 Double entry accounting & ledger accounts

第3章 复式记账 和 账户设置

Learning Objectives（学习目标）：

After learning of this chapter, the student should have a solid knowledge of the double entry

accounting system, chart of accounts, nature of ledger accounts, and could eventually recording

business transactions within ledger accounts.

3.1. The double entry accounting (复式记账)

In Chapter 2, we saw how business transactions cause a change in one or more of the three basic

accounting elements. Every transaction affects at least two accounting elements. This forms the

basis of double-entry accounting. A T account is commonly used for instructional purpose.

Chart 图3. 1 : T account

The principle of double-entry accounting requires that each business transaction must be recorded

by an entry that has equal amount of debits and credits. Assets accounts are increased by debiting

and decreased by crediting, and usually have debit balances. While, Liability and owner’s equity

accounts are increased by crediting and decrease by debiting, and usually have credit balances.

Chart3.2： Summary 概括

3.2. Application of double-entry accounting principle (复式记账的应用)

The following were the business transactions for Andy’s dental clinic in Jan 20X6 下面是 Andy牙科诊所20X6，1月的经济业务：

1. The owner Andy invest $20 000 cash into business

DR Cash in bank A +

CR Capital OE +

2. Purchase a Motor Vehicle for $16,000 cash

DR Fixed asset (Motor Vehicle) A +

CR Cash in bank A -

3. Purchase an air conditioner on credit for $16,000

DR Fixed asset (air conditioner) A +

CR Account payable L +

4. Received Accounting service revenue $1500

DR Cash in bank A +

CR service revenue R +

5. Sold goods on credit for $1000 that originally cost $600

DR Account payable A + $1000

CR Sales revenues R + $1000

DR Cost of good sold E + $ 600

CR Inventory A - $ 600

6. Paid money owed to the transportation company $100

DR Account payable L -

CR cash in Bank A -

7. Received $150 from customer

DR cash in Bank A +

CR Account receivable A -

8. Owner withdrew $100 for personal use

DR Drawings OE -

CR Cash in Bank A -

9. Customer- Janson owing $100 has gone bankrupt (破产)

DR Bad debts E+

CR Account receivable A-

3.3. The ledger accounts分类账户

3.3.1 The ledger accounts

The business transactions will affect specific accounting items such as Cash, inventory 库存商品.

In order to make the accounting information understandable, standard name of accounts which

represents those specific accounting items should be established. A ledger account is a record of

changes (increase and decrease) and balance in the value of a specific accounting item.

There are two types of ledger account. They are general ledger accounts and subsidiary ledger

accounts.

The ledger account can be a printed format in a book or a visible encoding on a disk. In a

manually maintained bookkeeping手工记账 system, the “two-column二栏式” and

“three-column三栏式” account form are often used.

Account name(账户名): Account No(账户编号):

Date 日期dd/mm/yyyy Item description摘要 Post. Ref. 凭证号 Debit（借方） Credit（贷方）

Balance 余额(Dr or Cr)

Table表格3.3: Abstract of the General ledger accounts(总账账页摘录)

3.3.2 Practice: record the transactions on the relevant ledger accounts (实训: 登T型账)

1. The owner Andy invest $20 000 cash into business

DR Cash in bank A +

CR Capital OE +

Analysis分析：The asset (cash) and Andy’s Owner’s equity (Capital) in the business increased.

Since cash is an asset, the increase in asset will record by “Dr Cash ”; Capital is an owner’s

equity account, increase in owner’s equity will recorded as “Cr Capital‖.

2. Purchased a dental equipment(牙科设备) for $16,000 cash in bank

DR Fixed asset (dental equipment) A +

CR Cash in bank A -

Analysis 分析：Firstly，The asset (dental equipment) is increased, increase in asset will recorded

as “Dr Fixed asset-dental equipment”. At the same time, the other kind of assets （Cash in bank）is decreased, decrease in asset will recorded as “Cr cash in bank”.

3. Purchase an air conditioner 空调 on credit for $13,000

DR Fixed asset (air conditioner) A +

CR Account payable L +

Analysis 分析：There is an increasing in asset (air conditioner). Increasing in asset will be

recorded as “Dr fixed asset- air conditioner”. There is also an increasing in liability which will be

shown on the right hand side of the account payable account, and this will be recorded as ―Cr

account payable‖.

4. Received service revenue $1500

DR Cash in bank A +

CR service revenue R +

Analysis分析：The asset (cash in bank) and service revenue in the business increased. The

increase in asset will be shown on the left side of the Cash in Bank account, and we will record it

as “Dr Cash in bank ”. Increasing in revenue will be shown on the right side of the service

revenue account.

5. Sold goods on credit for $1000 that originally cost $600

DR Account payable A + $1000

CR Sales revenues R + $1000

DR Cost of good sold E + $ 600

CR Stock A - $ 600

6. Paid money owed to the transportation company $100

DR Account payable L -

CR Cash in Bank A -

7. Received $150 from customer

DR Bank A +

CR Account receivable A -

8. Owner withdrew $100 for personal use

DR Drawings OE -

CR Cash in bank A -

9. Customer- Jason owing $100 has gone bankrupt (破产)

DR Bad debts E+

CR Account receivable A-

3.4 Trial balance (试算平衡)

This report shows all of the ledger account balances so as to determine if the debit balances equal

the credit balances.

If so, then it is likely that the transactions have been recorded correctly. This allows the financial

statements to then be prepared. If not, then there is an error in the recording process and the error

needs to be corrected before financial statements can be prepared.

End balance

600

Table 3.4 :Trial Balance (试算平衡表)

Andy’s Dental Clinic

Trial Balance

Jan , 31, 20X6

Account Debit Credit

Cash in the bank 5,450

Fixed assets 29,000

Account receivable 250

Inventory 600

Account payable 11,900

Bad debts 100

Capital 20,000

Drawings 100

Revenue 2,500

Cost of goods sold 600

35,250 35,250

3.5 The chart of accounts (会计科目表)

一、资产类 Assets 二、负债类 Liability

流动资产 Current assets 短期负债 Current liability

1001 现金 Cash 2101 短期借款 Short-term borrowing

1002 银行存款 Cash in bank 2111 应付票据 Notes payable

1009 其他货币资金 Other cash and cash equivalents 2121 应付账款 Account payable

1101 短期投资 Short-term investments 2131 预收账款 Deposit received

1102 短期投资跌价准备 Short-term investmentsfalling price reserves 2141代销商品款 Proxy

sale goods revenue

应收账款 Account receivable 2151 应付工资 Accrued wages

1111 应收票据 Note receivable 2153 应付福利费 Accrued welfarism

1121 应收股利 Dividend receivable 2161 应付股利 Dividends payable

1122 应收利息 Interest receivable 2171 应交税金 Tax payable

1131 应收账款 Account receivable 2176 其他应交款 Other fund in conformity with paying

1133 其他应收款 Other receivable 2181 其他应付款 Other payables

1141 坏账准备 Bad debt reserves 2191 预提费用 Drawing expense in advance

1151 预付账款 Advanced payment 2301 长期借款 Long-term loans

1161 应收补贴款 Cover deficit by state subsidies of receivable 2311 应付债券 Bonds payable

库存资产 Inventories 2321 长期应付款 Long-term account payable

1201 物资采购 Supplies purchasing 2331 专项应付款 Special payable

1211 原材料 Raw materials 三、所有者权益类 Owners’equity

1221 包装物 Wrappage 3101 实收资本(或股本) Paid-up Capital(or stock)

1231 低值易耗品 Low-value consumption goods 3111 资本公积 Capital reserve

1232 材料成本差异 Materials cost variance 3121 盈余公积 Surplus reserves

1241 自制半成品 Work in process 3131 本年利润 Current year profits

1243 库存商品 Finished goods 3141 利润分配 Profit distribution

3145未分配利润 Retained earning

1251 委托加工物资 Work in process - outsourced 四、成本类 Cost

1261 委托代销商品 Trust to and sell the goods on a commission basis 4101 生产成本

Manufacturing costs

1271 受托代销商品 Commissioned and sell the goods on a commission basis 4105 制造费用

Manufacturing overhead

1281 存货跌价准备 Inventory falling price reserves 4107 劳务成本 labor costs

1291 分期收款发出商品 Collect money and send out the goods by stages 五、损益类 Profit

and loss

1301 待摊费用 Prepaid expenses 5101 主营业务收入 Core-business revenue

长期投资 Long-term investment 5102 其他业务收入 Other operating revenue

1401 长期股权投资 Long-term investment on stocks 5201 投资收益 Investment income

1402 长期债权投资 Long-term investment on bonds 5203 补贴收入 Subsidize revenue

1421 长期投资减值准备 Long-term investments depreciation reserves 5301 营业外收入

Non-operating income

1431 委托贷款 Entrust loans 5401 主营业务成本 Cost of goods sold

1501 固定资产 Fixed assets 5402 主营业务税金及附加 Taxes and associated charges

1502 累计折旧 Accumulated depreciation 5405 其他业务支出 Other business expense

1505 固定资产减值准备 Fixed assets depreciation reserves 5501 营业费用 Sales expenses

1601 工程物资 Project goods and material 5502 管理费用 Administrative expenses

1603 在建工程 Construction-in-process 5503 财务费用 Financial expenses

1605 在建工程减值准备 Construction-in-process depreciation reserves 5601 营业外支出

Non-business expenditure

1701 固定资产清理 Liquidation of fixed assets 5701 所得税 Income tax

1801 无形资产 Intangible assets

1805 无形资产减值准备 Intangible Assets depreciation reserves

1901 长期待摊费用 Long-term deferred and prepaid expenses

二、常见细分科目

房屋 Building 应交增值税 Value added tax payable

建筑物 Structure 应交营业税 Business tax payable

机器设备 Machinery equipment 应交消费税 Consumption tax payable

运输设备 Transportation facilities 应交资源税 Resources tax payable

工具器具 Instruments and implement 应交所得税 Income tax payable

专利权 Patents 应交土地增值税 Increment tax on land value payable

非专利技术 Non-Patents 应交城市维护建设税 Tax for maintaining and building cities payable

注册商标使用权 Trade marks

著作权 Copyrights 应交房产税 Housing property tax payable

土地使用权 Tenure 应交土地使用税 Tenure tax payable

商誉 Goodwill 应交车船使用税 Vehicle and vessel usage license plate tax(VVULPT) payable

外埠存款 Other city Cash in bank 应交个人所得税 Personal income tax payable

Chapter 4 Transactions & double-entry accounting

第四章 经济业务 和 复式记账

Learning Objectives（学习目标）：

After learning of this chapter, the students would be able to master the skills of journalizing and

posting the data in the general journal to the ledgers accounts; they will also master the knowledge

of basics business operations of merchandising operations and manufacturing operations,

accounting for supplying transaction, accounting for production transaction and accounting for

sales operation.

4.1. Introduction of business operations:

---- Merchandising（商业、贸易）& Manufacturing (制造业)

For a merchandising company, the major operational activities are purchases and sale of

merchandises (goods). A Merchandising company often begins its operations with purchase of

goods and used them for future resale, and is also called merchandise inventory. Such companies

are include, Metro from Germany (麦德隆), Wal-Mart（沃尔玛） from USA, ect.

Manufacturing business must first produce the produce the products and sell these products. It is

the process of converting materials（原材料）into finished product （产成品）through the use of

machinery（机器机械手段）and labor（劳动力）. Examples of manufacturing business include

Coca-Cola(可口可乐) General Motors(美国通用公司) Intel Corporation (英特尔公司)，Sony(索尼公司)，and so on.

4.2. Accounting for merchandising businesses

4.2.1 Accounting for supplying transactions(供应过程的会计核算)

--- merchandises / Inventory（存货, 货物）

(1) Purchase: When a purchase has taken place, the journal entry to record the purchase on the

basis of purchase invoice is:

Dr: inventory xxxx or, Dr: inventory xxxx

Cr: Cash (cash in bank) xxxx Cr: Account payable xxxx

n Purchase discounts: Seller can offer customers sales discounts for early payment of their bills.

Such discounts are referred to as purchase discounts to the buyer.

n Purchase returns or allowances: When there are defective (次品) or dissatisfied（不尽人意）

goods in the merchandises, the buyer can return merchandise to the seller and it is called purchase

returns, Or the buyer can receive a reduction in the initial price at which the merchandise was

purchased, which is referred to as purchase allowances.

n Effect: The effect of the purchase discount and purchase returns or allowances is a decrease in

the cost of goods purchased.

Dr: Cash (Cash in bank) xxxx or, Dr: account payable xxxx

Cr: inventory xxxx Cr: inventory xxxx

(2) Transportation: Does the buyer or seller pay transportation costs? It depends upon when the

ownership of the merchandise passes from the seller to the buyer. It also determines whether the

buyer or seller must pay other costs, such as the cost of insurance(保险费) while the merchandise

is in transit.

n F.O.B （free on board）shipment（起运地交货）: the ownership of the merchandise(商品) could

pass to the buyer when the seller deliver the merchandise to the transportation company or freight

carrier（运输公司）. This term means buyer is responsible for the transportation costs.

Dr: Cash (Cash in bank) xxxx or, Dr: account payable xxxx

Cr: inventory xxxx Cr: inventory xxxx

n F.O.B (free on board) destination (目的地交货): The ownership of the merchandise could pass

to the buyer when the buyer receives the merchandise. This term means seller delivers the

merchandise to the buyer’s final destination, buyer does not need to bear(承担) the transportation

fees (运输费).

n The term “prepaid” means seller is expected to remit（支付）the freight company, while

“Collect” means buyer is expected to remit the freight company.

(3) How to Calculate(计算) “Cost of goods sold”

Inventory at Beginning Balance (2006/01/01) 9,000

Add: Purchases 30,000

Less: purchase discounts (3,000)

Purchase returns and allowances (2,000)

Net purchase 25,000

Add: transportation cost 2,000

Cost of inventory purchased 27,000

Inventory available for sale 36,000

Less: inventory at closing Balance (2006/12/30) (6,000)

Cost of goods sold 30,000

(4) Practical exercise 4-1 ( 实训练习 )

On 2005/Mar/01, Max Trading Co. had $15,000 merchandises inventory in its warehouse.

On 2005/Mar/02, Max Trading Co. purchased merchandises (商品) from Stony Co. The price on

the purchase invoice is $10,000, allowed 5% discount if the payment was made before Mar/10.

FOB shipment, transportation of $500 was prepaid by Stony Co.

On Mar/05, $300 defective merchandises returned to Stony Co.

On Mar/09, Max Trading Co. sent a bank check to Stony Co., pay off the merchandise purchased.

Requires: - Record the transactions

- Calculate the ―cost of inventory purchased‖ and amount of ―inventory available for sale‖ for this

month

Answers to 4-1：

2005/Mar/02: (to record purchase on credit)

Dr: inventory $10,500

Cr: Account payable $10,500

2005/Mar/05：（to record purchase return）

Dr: Account payable $300

Cr: Inventory $300

2005/Mar/09: (to record payment within discount period)

Dr: Account payable 485*

Cr: inventory 485

Dr： Cash in bank $9,715**

Cr: account payable $9,715

* (10,000 – 300) x 5% = 485

** 10,500 – 300 – 485 = 9,715 or, 10500 (10,000 – 300) x (1- 5%) + 500 = 9715

Inventory at Beginning Balance (2005/Mar/01) 15,000

Add: Purchases 10,000

Less: Purchase returns and allowances (300)

Purchase discounts (485)

Net purchase 9,215

Add: transportation cost 500

Cost of inventory purchased 9,715

Inventory available for sale on March 24,715

4.2.2 Accounting for sales transactions（销售过程的会计核算）

(1) Sales

A merchandising company earns sales revenue through sales of merchandises. Sales can be

divided into cash sales and credit sales depending upon the terms of payment for the merchandises

sold.

n Cash sales: require immediate (立刻，立即) cash payment. It is usually abbreviated in short

forms as C.O.D (现销).

Dr: Cash (Cash in bank) xxxx

Cr: Sales revenue xxxx

Credit sales (赊购): Allow the purchasers（购买者）to make payment within a certain period of

time. This period is called credit period (信用期). Credit sales is usually abbreviated(缩写) in

short forms such as 2/10, n/30.

Dr: Account receivable xxxx

Cr: Sales revenue xxxx

n Sales returns or allowances: after the merchandise sales, part or all of the merchandise may be

returned to the seller due some factors, such as damaged, defective or dissatisfied ones.

Sales discounts: Seller can offer customers sales discounts for early payment of their bills. Such

discounts are referred to as sales discounts to the seller.

Dr: sales revenue xxxx

Cr: Account receivable xxxx

(2) Practical exercise 4-2

On 2006 July 5, Max Trading Co. paid $600 to the advertisement Co.

On 2006 July 10，Max Trading Co. sold goods to Won Co.. the price is $50,000, allowed 5%

discount if payment was made within 10 days,

On July 23, Max Co. Received a bank TT (电汇) from Won Co.

On July 28, 2% allowance was granted to Won Co. for the some of the defective merchandises.

Requires：Record the transactions

Answers to 4-2：

On July 5, (to record sales expense to the advertisement Co.)

Dr: Sales expense $600

Cr: cash in bank $600

On July 10, (to record sales revenue on sales invoice)

Dr: Account receivable $50,000

Cr: Sales revenue $50,000

On July 23, (to record bank TT (电汇) received from Won Co. after the discount period)

Dr: Cash in bank $50,000

Cr: Account receivable $50,000

On July 28, (to record 2% sales allowances granted to Won Co. for the defective merchandises)

Dr: Sales revenue $1,000*

Cr: Cash in bank $1,000

* 50,000 x 2% = 1,000

Sales revenue 50,000

Less: sales discounts —

Sales returns and allowance 1,000

Net sales revenue 49,000

4.3. Manufacturing business

Manufacturing companies and merchandising companies are alike in both depend upon the sale of

commodities or products for revenue. However, they differ in one important way. A merchandising

company buys the goods it sells in their finished ready-for-sale state while a manufacturing

company must produce what it sells from raw materials.

4.3.1 Introduction of manufacturing cycles (循环)

Flow chart 4.1 manufacturing cycles

4.3.2 Accounting for manufacturing processes (生产过程的会计核算)

Most of the accounting procedures which have been learned in previous lessons apply equally well

to manufacturing companies. But the accounting records of a manufacturing company must be

extended to include ledger accounts (总分类账户) for various manufacturing costs such as direct

materials, direct labor and factory overhead. A manufacturing company also needs three inventory

accounts: Raw materials inventory (原材料存货), Work in process inventory（在产品存货） and

Finished goods inventory（产成品存货）.

(1) Flow of costs through manufacturing company

(2) Statement of ―cost of goods manufactured‖

Beginning work in process inventory $3000

Add: direct raw materials used:

Beginning inventory 5000

Purchase of direct raw materials 58000

Available for use 63000

Ending inventory （9000）

Direct raw material used 54000

Direct labor 40000

Factory overhead:

Indirect raw materials 12000

Indirect labor 11000

Utilities 8000

Repairs and maintenance 4000

Rent on plant facilities 11000

Rent on furniture and fixture 4000

Factory supplies used 6000

Administrative salaries 7000

Insurance 1200

Depreciation on machinery and equipment 4000

Total factory overhead 37200

Total manufactory cost incurred in the year 131200

Total manufactory cost to account for 134 200

Less: ending work in process inventory 4 200

Cost of goods manufactured $130 000

4.4. Revision classes

业务一 ( 10.1)：约翰布朗以独资的形式投资100000美元创立一家JB服务公司。

业务二 (10.5)：赊购办公设备5000美元。

业务三 (10.12)：提供服务，收取手续费3000美元。

业务四 (10.18)：以现金2000美元支付应付账款。

业务五 (10.26)：以现金4000美元购入土地。

业务六 (10.29)：约翰布朗从该公司提款1000美元以备个人使用。

日期 账户名称与摘要 借方 贷方

10.1 现金 约翰布朗，资本约翰布朗投入的资本 100000 100000

10.5 办公设备应付账款赊购办公设备 5000 5000

10.12 现金服务收入获取服务收入的现金 3000 3000

10.18 应收账款现金用现金偿付应收账款 2000 2000

10.26 土地现金用现金购入土地 4000 4000

10.29 约翰布朗，撤资现金约翰布朗从公司提款以备个人使用 1000 1000

Date Accounting titles and explanation Debit Credit

10.1 Cash John Braun, capitalJohn Braun invested cash to open a JB Service Company 100000

100000

10.5 Office equipment Accounts payable Purchased office equipment on credit 5000 5000

10.12 CashService revenue Received in cash for the service performed 3000 3000

10.18 Account payable Cash Paid in cash on accounts payable 2000 2000

10.26 Land Cash Purchased land for cash 4000 4000

10.29 John Braun,WithdrawalsCash John Braun withdrawalscash from the company for personal

use 1000 1000

Chapter 5 Basic financial statement

第五章 基本财务报表

Learning Objectives（学习目标）：

After learning of this chapter, the students would be able to master the skills of reading and

making the basic financial statements: including Balance sheet, income statement, and statement

of cash flow

The basic purpose of financial statements is to assist decision makers in evaluating the financial

strength, profitability, and future prospects of a business. Thus, managers, investors, major

customers, and labor all have a direct interest in these reports. Every large corporation prepares

annual financial statements, which are distributed to all owners of the business. In addition, these

statements are filed with various governmental agencies and become a matter of public record.

5.1. Balance sheets (资产负债表)

The balance sheet is one of the basic financial statements. Financial statements are the main

source of financial information to persons outside the business organization and also are useful to

management. These statements are very concise, summarizing in three or four pages the activities

of a business for a specified period of time, such as a month or a year. They show the financial

position of the business at the end of the time period and also the operating results by which the

business arrived at this financial position.

The balance sheet is a financial statement, which shows the financial position of a business entity

by summarizing the assets, liabilities, and owner’s equity at a specific date. This statement is also

called a statement of financial position or statement of financial

condition.

Every business prepares a balance sheet at the end of the year, and most companies prepare one at

the end of each month. A balance sheet consists of a listing of the assets and liabilities of a

business and of the owners’ equity. In preparing the balance sheet, it is not necessary to make any

further analysis of the data.

5.1.1 Exhibition5-1: Balance sheet

Balance Sheet

资产 ASSETS 负债及所有者权益 LIABILITIES AND OWNERS’ EQUITY CURRENT

LIABILITIES

流动资产： CURRENT ASSETS 流动负债： CURRENT LIABILITIES

现金 Cash 短期借款 Short-term loans

银行存款 Cash in bank 应付票据 Notes payable

有价证券 Marketable securities 应付账款 Account payable

应收票据 Note receivable 应付工资 Accrued payroll

应收账款 Accounts receivable 应交税金 Taxes payable

减：坏账准备 Less: provision for bad debts 应付股利 Dividends payable

预付账款 Advances to suppliers 预收货款 Advances from customers

其他应收款 Other receivables 其他应付款 Other payables

待摊费用 Prepaid expenses 预提费用 Accrued expenses

存货 Inventories 预计负债 Provisions for foreseeable liabilities

减：存货变现损失准备 Less: provision for loss on realization of inventory 职工奖励及福利基金 Staff and workers’ bonus and welfare fund

一年内到期的长期投资 Long-term investment maturing within one year 一年内到期的长期负债 Portion of long-term liabilities due within one year

其他流动资产 Other current assets 其他流动负债 Other current liabilities

流动资产合计 Total current assets 流动负债合计 Total current liabilities

长期投资： LONG-TERM INVESTMENTS 长期负债 LONG-TERM LIABILITIES

长期投资 Long-term investments 长期借款 Long-term liabilities

一年以上的应收款项 Receivables after one year 应付公司债 Debentures payable

固定资产： FIXED ASSETS 应付公司债溢价/折价 Premium/discount on debentures payable

固定资产原价 Fixed assets-cost 一年以上的应付款项 Payables due after one year

减：累计折旧 Less: accumulated depreciation 长期负债合计： Total long-term liabilities

固定资产净值 Fixed assets-net book value 其他负债： OTHER LIABILITIES

固定资产清理 Fixed assets pending disposal 筹建期间汇兑收益 Exchange gains during

pre-operating period

在建工程： COSTRUCTION IN PROGRESS 递延投资收益 Deferred gains on investments

在建工程 Construction in progress 递延税款贷项 Deferred tax credits

无形资产： INTANGIBLE ASSETS 其他递延贷项 Other deferred credits

土地使用权 Land occupancy right 待转销汇兑收益 Deferred exchange gains

工业产权及专有技术 Proprietary technology and patents 其他负债合计 Total other liabilities

其他无形资产 Other intangible assets 负债合计 TOTAL LIABILITIES

无形资产合计 Total intangible assets 所有者权益： OWNERS’ EQUITY

其他资产： OTHER ASSETS 注册资本 Registered capital

开办费 Pre-operating expense 减：已归还投资 Less: investment returned

筹建期间汇兑损失 Exchange losses during pre-operating period 资本公积 Capital surplus

递延投资损失 Deferred losses on investment 储备基金 Reserve fund

递延税款借项 Deferred tax charges 企业发展基金 Enterprise expansion fund

其他递延支出 Other deferred expenses 利润归还投资 Profits capitalized on return of

investment

待转销汇兑损失 Deferred exchange losses 未分配利润/累计亏损 Undistributed

profits/accumulated losses

其他资产合计 Total other assets 所有者权益合计 Total owner’s equity

资产总计 TOTAL ASSETS 负债及所有者权益总计 TOTAL LIABILITIES AND OWNER’S

EQUITY

5.1.2 Practical example of Balance sheet(资产负债表实例)

-- Practical example 1(实例 1 ): Balance sheet of ABC Co. Ltd

ABC Co. Ltd

Balance Sheet

As at the year end December 31,2004

Assets Liabilities & owner’s equity

Cash 205000 Liabilities:

Accounts receivable 65000 Notes payable 26000

Supplies 1500 Accounts payable 36000

Land 68000 Income taxes payable 18000

Buildings 133500 Owner’s equity:

Cleaning equipment 39000 Capital stock 225000

Delivery equipment 22500 Retained earnings 45000

Total assets 350000 Total liabilities &owner’s equity 350000

-- Practical example 2(实例 2 ): Balance sheet of TM Co. Ltd

TM公司资产负债表

2004年12月31日 单位：美元

资产 2004 2003

流动资产现金有价证券账面价值 （市价：890000美元）应收账款 减：呆帐损失：2004年100000美元存货 流动资产合计 456000000

395660000

固定资产 （地产、设备）土地 厂房机器 办公设备固定资产原值减：累计折旧固定资产净值 4553500000

4535585000

预付和待摊费用 100000 100000

无形资产 100000 100000

资产合计 9700000 9345000

负债

流动负债应付账款应付票据应计费用应付所得税流动负债合计

13300000 94530000

长期负债第一抵押债券利息5％，2016年到期负债合计 27 27

股东权益

股本优先股：每股面值100美元5%累积优先股：额定发行并流通在外6000股普通股：每股面值5美元，额定发行并流通在外300000股 6 6

资本盈余 700000 700000

累积留存盈余 1700000 1315000

股东权益合计 4500000 4115000

负债与股东权益合计 9700000 9345000

Assets 2004 2003

Current assetsCashMarketable securities at cost (Market value$890000)Accounts receivableLess:

allowance for bad debt: 2004 $100000InventoriesTotal current assets

456000000 395660000

Fixed assets (Property, plant and equipment)Land Building MachineryOffice equipment Cost of

fixed assets Less: accumulated depreciationNet fixed assets

4553500000

4535585000

Prepayment and deferred charges 100000 100000

Intangible 100000 100000

Total assets 9700000 9345000

Liabilities

Current liabilities Accounts payable Note payableAccrued expenses payable Federal income tax

payable Total current liabilities 13300000

94530000

Long-term liabilities First mortgage bonds,5％interest , due 2016Total liabilities 27

27

Stockholders’ equity

Capital stock Preferred stock, 5% cumulative, $100par value each, authorized, issued, and

outstanding 6000 shares Common stock, $5par value each, authorized, issue, and outstanding

300000 shares 6 6

Capital surplus 700000 700000

Accumulated retained earnings 1700000 1315000

Total stock holders’ equity 4500000 4115000

Total liabilities and stockholders’ equity 9700000 9345000

5.2. Income statement (or Profit and loss statement) (利润表)

An income statement is a financial statement showing the results of operations for a business by

matching revenue and related expenses for a particular accounting period. It shows the net income

or net loss.

When we measure the net income earned by a business we are measuring its economic

performance—its success or failure as a business enterprise. Stockholders, prospective investors,

managers, bankers, and other creditors are anxious to see the latest available income statement and

thereby to judge how well the company is doing.

Alternative titles for the income statement include Earning Statement, Statement of Operations,

and Profit and Loss statement. However, income statement is by far the most popular term for this

important financial statement. In brief, we can say that an income statement is used to summarize

the operating results of a business by matching the revenue earned during a given time period with

the expenses incurred in obtaining that revenue.

Every business prepares an annual income statement, and most businesses prepare quarterly and

monthly income statements as well. The period of time covered by an income statement is termed

the company’s accounting period. This period may be a month, a quarter of a year, a year, or any

other specified period of time. A 12-month accounting period used by an entity is called its fiscal

year.

5.2.1 Exhibition5-2: Income statement

利润表 INCOME STATEMENT

产品销售收入 SALES REVENUE

其中:出口产品销售收入 Including: Export sales revenue

减:销售折扣与折让 Less: Sales discounts and allowances

产品销售净额 NET SALES

减:产品销售税金 Less: sales tax

产品销售成本 COST OF SALES

其中:出口产品销售成本 Including: Cost of export sales

产品销售毛利 GROSS PROFIT ON SALES

减:销售费用 Less：Selling expenses

一般管理费用 General and administrative expenses

加:财务费用/(财务收入)－净额 Add: Financial expenses/(income) －net

其中：净利息支出/净利息收入 Including: Net interest expenses/ (income)

净汇兑损失/净汇兑收益 Net exchange losses /(gains)

产品销售利润/亏损 PROFIT /(LOSS) ON SALES

加：其他业务利润 Add: Income from other operations

营业利润（亏损） Operating profit (loss)

加：投资收益 Add: Income from investment

营业外收入 Non-operating income

减：营业外支出 Less: Non-operating expenses

利润总额/亏损总额 TOTAL PROFIT/(LOSS)

减：所得税 Less：Income tax

净利润/净亏损 NET PROFIT/(LOSS) AFTER TAX

-- Practical example 1(实例 1 ): Income statement of XYZ Co. Ltd

XYZ Co. Ltd

Income statement

For the year ended December31, 2004 $

Revenue: Sales 506000 Less: Sales returns and allowances 4000 Sales discounts 2000 6000 Net

sales 500000

Cost of goods sold: Inventory, Jan,1 60000Purchases 300000Less: purchase returns and

allowances 2000 Purchase discounts 1000 3000Net purchases 297000Add: transportation-in

13000Cost of goods purchased 310000Cost of goods available for sale 370000Less: Inventory

Dec.31 70000 Cost of goods sold 300000Gross profit on sales 200000

Operating expenses:Selling expenses: Sales salaries 76000 Delivery service 4000 Advertising

16000 Depreciation 9000 Total selling expenses 105000General &administrative expenses: Office

salaries 60000 Telephone 2000 Depreciation 8000 Total general and administrative expenses

70000

Total operating expenses 175000

Income from operations 25000

Income tax expense 5000

Net income 20000

-- Practical example 2(实例 2 ): Balance sheet of TM Co. Ltd

TM

Income statement

As at the year end December 31, 2004 $

Consolidated income statement 2004 2003

Net sales 11000000 10200000

Cost of goods sold 8200000 7684000

Depreciation 300000 275000

Selling and administrating expenses 1400000 1325000

Operating profit 1100000 916000

Other income dividends and interest 50000 27000

Total income 1150000 943000

Less: interest on bonds 135000 135000

Income before provision for income tax 1015000 808000

Provision for income tax 480000 365000

Net profit for the year 535000 443000

Common shares outstandingNet earnings per share 3000001.68 3000001.68

Accumulated retained earning statement 2004 2003

Balance January 1Net profit for year Total net profit December 31Less: dividends paid on

Preferred stock Common stockBalance December 31

1315 000

TM公司利润

2004年12月31日

合并利润表 2004 2003

销售净额 11000000 10200000

销售成本 8200000 7684000

折旧 300000 275000

销售和管理费用 1400000 1325000

营业利润 1100000 916000

其他收入（股利，利息） 50000 27000

收益总额 1150000 943000

减：债券利息 135000 135000

所得税前收益 1015000 808000

应付所得税 480000 365000

当年净利润 535000 443000

流通在外普通股股数普通股每股收益 3000001.68 3000001.68

累积留存收益表 2004 2003

年初余额当年净利润年末净利合计减：优先股股利 普通股股利年末余额

1315 000

5.3. Cash flow statements (现金流量表)

The balance sheet and income statement are summary presentations of an enterprise’s financial

activities for a period. Generally speaking, these two statements reflect the goal of income

measurement. For example, cash paid out to acquire long-term assets is not reported directly, but

instead is capitalized and depreciate. The actual cash flow appears nowhere in the income

statement or balance sheet. It might be possible to figure out the amount by which long-lived

assets increased during the year, but it is virtually impossible to find out how much was paid in

cash and how much was financed by other means.

The cash flow statement reveals not only the operating cash flow of the company, but also enables

the user to reconcile the cash flows to net income. Users can thereby see just how a company can

have a cash flow that is different from the reported net income. Most users of financial statements

are interested in seeing the cash flows as well as the net income because in the long run they base

their own projections of cash flow on those of the company. For example, investors are interested

in the amount that is available to pay out in dividends, bankers need to know how a company

expects to generate cash to pay off its loans, employees need to know the company’s ―ability to

pay‖ when negotiating wages, salaries and fringe benefits, and so forth.

5.3.1 Classification of cash flows

n Cash flow from operating activities

n Cash flow from investment activities

n Cash flow from financing activities

5.3.2 Exhibition5-3: Cash flow statement

Statement of cash flows — direct method

(现金流量表----直接法)

Cash flows from operating activities 经营活动产生的现金流量

Cash receipts 现金流入

From customers 从客户中收到的现金

From interests and dividends 收到的利息和股利

Cash payments 现金流出

To suppliers 向供应商支付的现金

To employees 向雇员支付的现金

For interest payments 偿付利息支付的现金

For income taxes 交纳所得税支付的现金

Net cash flows from operating activities 经营活动产生的净现金流量

Cash flows from investing activities 投资活动产生的现金流量

Purchase of investments 购买投资支付的现金

Sale of investments 处置投资收到的现金

Sale of plant assets 处置厂房设备收到的现金

Purchase of intangible assets 购买无形资产支付的现金

Net cash flows from investing activities 投资活动产生的净现金流量

Cash flows from financing activities 筹资活动产生的现金流量

Repayment of bonds 清偿债券收到的现金

Issue of common stock 发行普通股收到的现金

Dividends paid 发放股利支付的现金

Net cash flows from financing activities 筹资活动产生的净现金流量

Net increase in cash 现金净增加额

Cash at beginning of period 现金期初余额

Cash at end of period 现金期末余额

Statement of cash flows—indirect method

现金流量表――间接法

Cash flows from operating activities 经营活动产生的现金流量

Net income 净收入

Adjustments to reconcile net income to net cash flows from operating activities 将净收益转换为经营活动现金流量的调整项目

Depreciation expenses 折旧费用

Gain on sale of plant assets 厂房设备处置收益

Loss on sale of plant assets 厂房设备处置损失

Decrease in accounts receivable 应收账款减少

Increase in inventory 存货增加

Decrease in prepaid expenses 预付费用减少

Increase in accounts payable 应付账款增加

Increase in accrued liabilities 应计负债增加

Decrease in income taxed payable 应交所得税减少

Net cash flows from operating activities 经营活动的净现金流量

Cash flows from investing activities 投资活动产生的现金流量

Purchase of investments 购买投资支付的现金

Sale of investments 处置投资收到的现金

Sale of plant assets 处置厂房设备收到的现金

Purchase of intangible assets 购买无形资产收到的现金

Net cash flows from investing activities 投资活动产生的净现金流量

Cash flows from financing activities 筹资活动产生的现金流量

Repayment of bonds 清偿债券收到的现金

Issues of common stock 发行普通股收到的现金

Dividends paid 发放股利支付的现金

Net cash flows from financing activities 筹资活动产生的净现金流量

Net increase in cash 现金净增加额

Cash at beginning of period 现金期初余额

Cash at end of period 现金期末余额

第二节: 现金流量表实例

-- Practical example 1(实例 1 ): Statement of Cash flow XYZ Co. Ltd

XYZ Co. Ltd

Cash flow statement

For the year ended December 31, 2002 $

Operating activities:Net income 330 Add (deduct) to reconcile net income to net operating cash

flows: Depreciation expense 200 Gain on sale of equipment (70)Decrease in accounts receivable

15Decrease in inventory 35Decrease in accounts payable (25) $485Investing Activities:Proceeds

from sale of equipment 130Purchase of new equipment (410) (280)Financing Activities:Increase

in current bank loan 15Dividends paid (225)Reduction of long-term notes payable (30)

(240)Increase (decrease) in cash (35)Cash, January 1 90Cash, December 55