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Chapter 1 1

General Introduction 1

Part Ⅰ.Accounting And Its Classification 1

Part Ⅱ.Accounting Functions 1

Part Ⅲ.Users Of Accounting 2

Part Ⅳ.Accounting Profession 2

Part Ⅴ.Accounting Assumptions And The Major Accounting Principles 3

Part Ⅵ.Accounting Standard Formulating Organizations 5

Chapter 2 11

Accounting Elements And Accounting Equation 11

Part Ⅰ.Accounting Object And Accounting Elements 11

PartⅡ.Static Accounting Elements And Quatitative Relation 11

Part Ⅲ.Dynamic Accounting Elements And The Quantitative Relation 12

Part Ⅳ.Accounting Equation 12

Part Ⅴ.Transactions And The Accounting Equation 12

Chapter 3 20

Accounting Cycle(Ⅰ) 20

Part Ⅰ.Establishment Of Accounting Chart 20

Part Ⅱ.Establishment Of Accounts 22

Part Ⅲ.Double-entry System 24

Part Ⅳ.Journals And Journalizing 25

Part Ⅴ.General Ledger And Posting 26

Part Ⅵ.Trial Balance 28

Part Ⅶ.Special Journals And Subsidiary Ledgers 29

Chapter 4 44

Accounting Cycle(Ⅱ) 44

Part Ⅰ.Filling In And Auditing The Accounting Documents 44

Part Ⅱ.Adjustments 45

Part Ⅲ.Worksheet 49

Part Ⅳ.Closing Entries 52

Part Ⅴ.Preparation of Financial Statements 54

Chapter 5 65

Monetary Assets:Cash&Marketable Securities 65

Part Ⅰ.Cash And Its Control 65

Part Ⅱ.The Petty Cash 67

Part Ⅲ.Cash In Bank 69

Part Ⅳ.Bank Reconciliation 71

Part Ⅴ.Other Monetary Currency 74

Part Ⅵ.Marketable Securities 75

Chapter 6 82

Receivable Items 82

Part Ⅰ.Accounts Receivable 82

Part Ⅱ.Notes Receivable 86

Chapter 7 96

Inventory 96

Part Ⅰ.Brief Introduction of Inventory 96

Part Ⅱ.Two Inventory Systems 98

Part Ⅲ.Methods of Inventory Measurement 100

Part Ⅳ.Ending Inventory Measurement 104

Part Ⅴ.Counting Inventory 108

Chapter 8 116

Fixed Assets Intangible Assets And Other Long-term Assets 116

Part Ⅰ.Fixed Assets 116

Part Ⅱ.Intangible Assets 127

Part Ⅲ.Deferred Assets And Other Assets 129

Chapter 9 137

Long-term Investment 137

Part Ⅰ.Brief Introduction 137

Part Ⅱ.Long Term Eguity Investments 137

Part Ⅲ.Calculation For Long-term Bond Investments 141

Part Ⅳ.Other Long Term Investments 147

Chapter 10 152

Liabilities 152

Part Ⅰ.Introduction Of Liabilities 152

Part Ⅱ.Calculation Of Current Liabilities 152

Part Ⅲ.Calculation Of Long Term Liabilities 156

Chapter 11 165

Owner's Equity 165

Part Ⅰ.Paid-in Capital 165

Part Ⅱ.Capital Reserve 175

Part Ⅲ.Retained Earnings 178

Chapter 12 183

Revenue Expenses and Profits 183

Part Ⅰ.Recognition Of Revenue 183

Part Ⅱ.Recognition Of Expenses 185

Part Ⅲ.Manufacturing Cost 188

Part Ⅳ.Formation and Distribution of Profits 196

Chapter 13 206

Financial Reports 206

Part Ⅰ.Preparation of Financial Reports 206

Part Ⅱ.Balance Sheet 207

Part Ⅲ.An Income Statement 212

Part Ⅳ.A Cash Flows Statement 215