Financial Accounting

Unit 7 Financial Accounting

Text A

Introduction to Accounting

Basic Accounting Concepts

Accounting is the process of measuring and recording the financial value of the assets and liabilities of a business and monitoring these values as they change with the passage of time. A business could be referred to an individual, a company or any other entity for which accounting records are to be kept.

The assets of a business are those things that belong to the business that have a positive financial value i.e. items that could be sold by the business in exchange for money. Examples of assets include land, buildings, vehicles, stock, equipment, bank accounts with positive balances and money owed to the business by its debtors.

The liabilities of a business are those things that belong to the business but unlike assets have a negative financial value i.e. items that will require the payment of money by the business at some point in the future. Examples of liabilities include unpaid bills, unpaid taxes, unpaid wages, overdrawn bank accounts and money owed by the business to its creditors.

The equity of a business is defined as the value of the assets minus the value of the liabilities. In other words, the equity is the financial value that would be left if all the assets were sold and the money from the sale was used to pay off all the liabilities.

A balance sheet is a financial statement that summarizes a company’s assets, liabi lities and shareholders’ equity at a specific point in time. It’s called a balance sheet because the two sides balance out. A company has to pay for all the things it has (assets)by either borrowing money (liabilities) or getting it from shareholders (sha reholders’ equity).

The balance sheet must follow the following formula which is called the accounting equation: Assets = Liabilities + Equity.

Main Types of Accounting

Over the past few decades, accounting has branched out into specialized areas to cater for the different needs of the users. The main types of accounting are as follows:

第七单元财务会计

英语班级：4C1

专业班级：社会工作132

课文翻译：Text A 陈芳婷，学号132********

会计介绍

会计的基本内容

会计是测量和记录商业资产和债务的财物价值并且随着时间的流逝监控这些价值的变化的过程。商业可能是一个个体，一个公司或者其他保存会计记录的实体。

商业组织的资产是那些属于商业且具有积极的财物价值也就是可以被商业组织出售换取金钱的项目。资产的例子包括土地，建筑物，车辆，股票，设备，有积极结余的银行账户和债务人欠商业组织的资金。

商业组织的债务是那些属于商业但不像资产一般具有消极的财务价值也就是在将来的某个时间点需要由商业组织支付钱的项目。债务的例子包括未支付的账单，未支付的税务，未支付的工资，透支的银行账户和商业组织欠债权人的钱。

商业组织的权益被定义为资产总额减去负债后的资产。换句话说，净资产是如果所有的财产出售后，销售来的钱用来支付所有的债务后留下的那部分财物价值。

资产负债表是在某一特定时间总结一个公司的资产，债务和股东权益的财务报表。它之所以被称为资产负债表是因为两边达到平衡。一个公司必须支付所有的事务（资产），要么通过借钱（债务），要么从股东获取资金（股东权益）。

资产负债表必须遵守以下的公式，叫做会计等式：资产=负债+所有者权益。

会计的主要类型

在过去的几十年中，会计已经扩展到专业邻域以顾及到用户的不同需求。会计的主要类型如下：