Chapter 3 Accounting Equation and Illustration（课件）-《实用会计英语》同步教学（大连理工大学出版社）

Accounting Equation and Illustration CHAPTER 3 3-1 2 2 In this box, there are many chalks and the claim on these chalks. Accounting Equation Value of these chalks ＝ Value of the claims on chalks 3-1 Accounting Equation ＝ Business Economic resources Economic resources ＝ Equities ＝ Another term for claims is equities. 3-1 Accounting Equation Economic resources Owners Creditors Comes from ∥ ∥ Owner’s equity Creditors’ equity 3-1 Accounting Equation Economic resources ＝ Owner’s equity ＋ Creditor’s equity In accounting, the term for economic resources is assets and creditors’ equity is liabilities, the equation is described as follows: Assets ＝ Owner’s equity ＋ Liability 3-1 IASB defines assets as resources controlled by the enterprise as a result of past events and from which economic benefits are expected to flow to the enterprise. Assets 3-1 Assets Assets are the economic resources owned or controlled by a business that can benefit future operations for the business. ASSETS Current assets Long-term assets 3-1 Paycheck for Date Dept. of Treasurer Jane Doe The examples for assets are cash, inventory, notes receivable, accounts receivable, prepaid expenses, land, buildings, and equipment and so on. Assets 3-1 Liabilities IASB defines liabilities as present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. 3-1 Liabilities Liabilities are those debts arising from the past transactions and should be paid by providing goods or services in the future. Liabilities Short-term Liabilities (current liabilities) Long-term Liabilities 3-1 Liabilities Liabilities Amount owed to creditors for goods or services bought on credit Borrowed money Salaries and wages owed to employees Taxes owed to the government 3-1 Current liabilities are those amounts which are repayable within a period of less than