unit1accounting:its foundation1 1.1what is accounting?1 1.2who uses accounting data1 1.3accounting conventions or assumptions3 1.4basic accounting equation4 1.5effects of changes in the economic business on the accounting equation5 1.6finan statement10 key words and expressions13 exercises13 extended rea14 unit2the recor process15 2.1double entry15 2.2the account16 2.3debits and credits17 2.4ste in the recor process21 2.5the journal21 2.6the ledger23 2.7ting24 2.8the trial balance26 key words and expressions28 exercises29 extended rea29 unit3adjusting the accounts32 3.1accrual.basis vs.cash.basis accounting32 3.2the basics of adjusting entries33 3.3types of adjusting entries34 3.4adjusting entries for prepayments35 3.5adjusting entries for accurals39 3.6the adjusted trial balance47 key words and expressions48 exercises49 extended rea50 unit4pletion of the accounting cycle52 4.1preparing closing entries53 4.2preparing t.closing trial balance55 4.3correcting entries―an avoidable step59 4.4classed balance sheet61 key words and expressions66 exercises66 extended rea67 unit5current assets68 5.1cash and cash equivalents68 5.2accounts receivable72 5.3inventory77 key words and expressions85 exercises86 extended rea88 unit6long.term assets89 6.1piant and equipment(fixed assets)89 6.2intangible assets95 key words and expressions98 exercises98 extended rea99 unit7liabilities101 7.1current liabilities101 7.2long.term liabilities105 key words and expressions109 exercises110 extended rea110 unit8owner’s equity112 8.1accounting for single proprietorship112 8.2accounting for corporation113 key words and expressions118 exercises119 extended rea120 unit9measurement of bussiness ine121 9.1revenue121 9.2expense124 9.3business ine126 key words and expressions127 exercises127 extended rea128 unit10finan statements130 10.1balance sheet130 10.2ine statement132 10.3the statement of owner’s equity135 10.4the statement of cash flows135 key words and expressions137 exercises137 extended rea138 a list of reference book140
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