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Chapter 1 An Overview Of Accounting 1

Key Words,Phrases and Special Terms 2

1-1 What is Accounting 3

1-2 Generally Accepted Accounting Principle 5

1-3 Accounting Elements 8

1-4 Accounting Equation 9

1-5 Effect of Business Transactions upon the Accounting Equation 9

1-6 Forms of Business Organizations 10

Assignments: 11

Chapter 2 Accounting Cycle and Basic Financial Statements 12

Key Words,Phrases and Special Terms 13

2-1 The Complete Accounting Cycle 15

2-2 Debit and Credit Entries 16

2-3 The Ledger 17

2-4 Double-entry Accounting 17

2-5 The Journal 18

2-6 Adjusting Entries 19

2-7 Closing the Accounts 21

2-8 The Basic Financial Statements 23

2-9 The Relationships among the Financial Statements 27

Assignments: 29

Chapter 3 Current assets and Current Liabilities 32

Key Words,Phrases and Special Terms 33

3-1 Cash 35

3-2 Accounts Receivable 40

3-3 Inventory 42

3-4 Current Liabilities 48

Assignments: 51

Chapter 4 Long-lived Assets 53

Key Words,Phrases and Special Terms 54

4-1 Understanding Plant Assets 55

4-2 Acquisition of Plant Assets 56

4-3 Disposal of Plant and Equipment 60

4-4 Intangible Assets 61

Assignments: 63

Chapter5 Long-Term Liabilities,Long-Investment and Owner's Equity-Corporation 65

Key Words,Phrases and Special Terms 66

5-1 Long-Term Liabilities 67

5-2 Long-Term Investments 74

5-3 Owner's Equity-Corporation 78

Assignments: 85

Chapter 6 Financial Statement Analysis 87

Key Words,Phrases and Special Terms 88

6-1 Objectives of Financial Statement Analysis 90

6-2 Source of Financial Statements Analysis 91

6-3 Horizontal Analysis 93

6-4 Vertical Analysis 93

6-5 Ratio Analysis 94

Assignments: 104

Chapter 7 Accounting practical writings in English 105

7-1 Letter of Application for a Position 105

7-2 Note and Bill 107

7-3 Announcement 109

References 111