Assets Liability Owners’ Equity

Current assets: Current liability: Retained earnings

Cash&cash equivalent Accounts payable Invested capital

Account receivable

Inventory

Long term assets: Long term liability:

Long term investment Lands

Intangibles Debt

PP&E Instrument

(property plant equipment) Bonus

DEAD:debit increase expense assets dividends Debit=receive or Value Received

CLIC:credit increase liability income capital Credit =give or Value Given.

Assets:Economic resources of the firm,include cash,AR,PPE

Liability:What firm owes eg.loans extensions of credit and other obligations
Owners’ equity:Firm’s retained income and investment from shareholders and
owners.Is the owners’ stake in the business

Financial Accounting: Transforming the general ledger into the financial statements
财务会计：将总账转化为财务报表
Managerial Accounting: Transforming key information into KPIs and decision tools
管理会计：将关键信息转化为 KPI 和决策工具
Auditing: Examining procedural quality. Financial statement fairness managerial
accounting soundness, and compliance with generally accepted accounting principles.
审计：检查程序质量。 财务报表公允，管理会计稳健，并符合公认会计原则。
Journal ： chronological listing of a company’s transaction and events.Serves to
document business activity as it occurs.公司交易和事件的时间顺序列表。用于记录
发生的业务活动。通过借记/贷记格式记录在日志中

General Ledger: assets liability equity income expense dividend

Bookkeeping: Gathering the transactional data

簿记：收集交易数据

Trial balance:A bookkeeping worksheet in which the balance of all ledgers are
compiled into debit and credit account column totals that are equal.
试算表：一个簿记工作表，其中所有分类账的余额被编译成相等的借方和贷方
帐户列总计。不是正式的财务报表 而是自我检查
 Capital items (C). Capital Expenditures are expenditures that are likely to provide
long-term benefits. Like acquisition of assets.可能带来长期利益的支出
Also includes fundings provided by the owners.包括业主提供的资金

 Revenue items (R). Revenue Expenditures are expenditures that are likely to
provide period-benefits. Like rent or salary expenses. Revenue income includes
income from sales, and dividends and rents received.可以带来期间收益的支出

 Distributions to owners (D). Dividends 分红

Income statement: revenue-expense=net income over quarter of year period

Report financial performance over a specific period of time
侧重于公司在特定时期内的收入、费用、收益和损失

Revenue items
Net Income is used to calculate the Statement of Retained Earnings.

Retained Earnings (also called Retained Profits) are used to calculate the balance
sheet.(Dividends go here)
Balance sheet Capital items

What the firm owns.

报告公司在特定时点的资产、负债和股东权益
为计算投资者的回报率和评估公司的资本结构提供了基础。
A = L+OE • Over quarter or year period • Snapshot in time. Year End.
Order of assets:Liquidity Cash - receivable - PPE
现金等价物 financial instruments 90days 不包括存款 未来支票等
Manage cash:External(issue shares,borrow funds)
Internal(加速收集推迟流出 授权问责)
Cash flow statement
• Operating Activities
provides information on the cash flows from the company's operations (buying and
selling of goods, providing services, etc.). Cash received from operations (sales).
Cash paid-out for operations (rent, wages).
With an indirect method, starting point is the company's net income. Adjustments to
convert Net Income to Net Cashflow from Operating Activities. Adjustments for non-
cash expenses, and changes in working capital.
提供有关公司经营活动（商品买卖、提供服务等）产生的现金流量的信息。 从经营（销

售）收到的现金。 支付给运营商的现金（租金、工资）。

使用间接方法，起点是公司的净收入。 将净收入从运营活动转换为净现金流的调整。 非现

金支出的调整和营运资金的变化。

• Investing Activities
associated with purchase and sale of long-term assets such as land, or property, plant
and equipment.与土地、不动产、厂房和设备等长期资产的买卖相关。

• Financing Activities
The issuance and repurchase of a corporation's bonds 公司债券的发行和回购
The issuance and repurchase of a corporation's capital stock 公司股本的发行和回购
The payment of dividends 股息支付
The borrowing and repayment of short-term and long-term loans. 短期和长期贷款的借
款和偿还

• Supplemental Disclosures
The following supplementary informaton must be disclosed..
 Interest paid,
 Income taxes paid,
 Signifcant noncash transactons such as the exchange of shares of common stock
for land.重大的非现金交易，例如用普通股换取土地。
• Over quarter or year period
Useful in assessing • amounts • timing • uncertainty of a firm’s incomes and
cashflow
outlines how specifically cash is generated and expended during a specific period of
time 现金流量表概述特定时间段内如何产生和支出现金（衡量公司运营期间进出的现金）
汇总进出公司的现金和现金等价物变动。
衡量公司管理其现金状况的能力，即公司产生现金以偿还债务和为其运营支出提供资金的

能力。

Managerial Accounting supports management decisions and drives value-

creation. Aims to provide information to firm- insiders
管理会计核算支持管理决策，并推动价值创造。旨在为公司内部人士提供信息
The practice of identifying,measuring,analyzing,interpreting,and communicating financial

information to managers for the pursuit of an organization’s goals.

识别、测量、分析、解释和传达财务信息给经理以实现组织目标的实践。

cost center:support the wider function of the firm, but do not directly generate
revenue for the firm. use KPI to minimize costs,make process more efficient
支持公司更广泛的功能，但不直接为公司创造收入。使用 KPI 来最小化成本使过程更高效

Impersonal cost center. Product cost center. Operation cost center.

Process cost center. Personal cost centers. Service cost center

profit center:client-facing, and/or direct sources of firm-revenues for the company.

面向客户的，和/或公司收入的直接来源。

Use KPI to maximize profits 使用 KPI 来实现利润最大化

Eg.specific business units of a firm

investment center:autonomous and independent business centers.

自主和独立的商业中心。

use KPI to efficiently allocate investment capital 利用 KPI 来有效地配置投资资本

Eg.subsidiary’ country division product line

RAROC risk adjusted return on capital

capital vaviliability time horizon risks returns
Know this in order to efficiently allocate capital 有效分配资本

Costing 成本核算
1. inventory and stock valuation
2. Planning and estimation of costs
3. Determination of selling price
Total absorption costing VS marginal costing
Fixed cost VS variable costs(与数量成比例变化)

Direct Costing
Direct Materials: The cost of all materials that are an integral part of a finished
product and that have a physical presence that is traced to the finished product.
raw materials and component parts
First-in-first-out (FIFO): Inventory used (or sold) is assigned the oldest cost in the
inventory. Might understate the costs.
Last-in-first-out (LIFO): Inventory used (or sold) is assigned the newest cost in the
inventory. Might overstate the costs.

Direct Labor: Gross wages paid to those who physically and directly work on the
goods produced.But not supporting personnel (i.e., maintenance, security guards).
Total hours worked on each unit X employees’hourly rates.每单位总工时 x 时薪

Indirect Costing
Overhead: All costs of manufacturing other than direct materials and direct labor.
Overhead is difficult to trace to specific finished units, but its cost is important and
must be allocated to those units.
If overhead relate to units of outputs,it might mean depreciation or maintenance costs.
1. Allocate costs to specific cost centers.将成本分配到特定的成本中心
product cost center/service cost center
2. Share and distribute the production center costs proportionately.
按比例分担和分配生产中心成本
Proportions are determined by quantitative factors.
❑ Number of staff ❑ Floor area or Facility Size ❑ Activity or output

3. Assign or absorb the production overhead (i.e. the support costs related to the
production and the production center).分配或吸收生产间接费用（即与生产和生产
中心相关的支持成本）。
Bank Reconciliation
最常见的现金控制程序之一 不参与现金收支的 independent Person
A control procedure to establish and verify the correct cash balance via identification
of errors, irregularities, and adjustments
通过识别错误、违规和调整来建立和验证正确现金余额的控制程序

Account Receivable
AR→Balance sheet
Sales revenue/bad debt expense→income statement
Debt Credit
Accounts Receivable 1000
Sales 1000
Collect AR may cause service charges
Refuse/unable to pay may happen

Write-offs
Direct write-off:最终确定无法收回时从会计记录删除

Allowance method:根据估计核销一定比例的应收账款

关于财务报表▪卖方应使用备抵法报告其估计信用损失。
预计无法收回的应收账款金额，将其记录在疑账准备金中，记入坏账费用。

出于所得税目的▪通过使用直接注销法在以后报告损失。

Long Term Assets

Current assets：一年内转换为现金
-cash and cash equivalents/temporary investments /AR /inventory/ supplies /prepaid
expenses......
Long-term assets:在流资和 PPE 之间
-investment in stocks and bonds,fund,real estate......

 Unrealized gain 持有已增值但尚未出售的资产的收益。

 Fair value 按市值计价 mark-to market 在市场参与者之间有序交易中出售资产所能收到的
价格

 Business combination:one company obtains a controlling ownership interest over

another.
 Goodwill=Cost to purchase the business-tangible assets-identified intangible
assets-liability

Investment
Dividends and interest payment(income) increased with credit

Depreciation
Necessary for measure net income
PPE and some inventory need depreciation
Depreciation expense → income statement
Accumulated depreciation→balance sheet(asset)
Method:straight-line/units-of -production/double-declining-balance

账面价值 book value *直线折旧率的 2 倍

Intangible assets
Eg.copyrights/patents/franchises/trademarks/goodwill...
Can make both the firm and its tangible assets more valuable

Capitalization(balance sheet asset):purchase of outside IA costs of 专利商标版权

每年因折旧和摊销 amortization 而减少
Expensing(income statement expense):research and development to IA

PP&E
List in order of longevity:Land-buildings-equipment
Capitalization(balance sheet):cost to build assets,as investment
acquisition&installation

Expensing(income statement)cost to operate,as cash outflow

Repair,train,depreciation

Financial Ratios
Liquidity ratios 偿还到期债务的能力 current/quick
Debt service ratios 公司与财务困境的距离 对监管机构很重要
Turnover ratios 衡量公司层面效率和运营活动 measure change in inventory/credit risk
Profitability ratios 企业将其资源转化为利润的能力 how to improve business

Marginal cost=∆total cost/∆quantity

销售额-可变成本=固定成本+利润