Unit 1 Accounting
Lead-in
Match the following pictures with the words in the box.
Section A
Dialogue 1
George is going to be an undergraduate this fall, so he is discussing with his friend Maria about what to major in.
G=George M=Maria
M: Hey George, we are going to enter university pretty soon.I heard you are quite interested in accounting, have you made up your mind to take it as your major?
G: Yes, since both of my parents are accountants, I hope one day I could also become an excellent professional accountant.
M: Sounds good!
G: How about you, Maria?
M: I’ll probably study medicine, but we could also be schoolmates if we are lucky enough to be admitted by the same university.
New Words
Phrases and Expressions
be interested in 对……感兴趣
make up one’s mind to 下定决心要
sound good 听起来不错
Dialogue 2
George is now an accounting major at university.And Maria, his friend, also becomes a medical student in the same university.They always gather together to exchange experiences and feelings about their new life.
G=George M=Maria
G: How are you these days, Maria?
M: Not bad.Only got loads of medical materials to read and remember.They almost drive me crazy.
G: What a busy fulfilling life!
M: What about you? What do you learn in accounting classes?
G: We’ve just started.Accounting has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators.Accounting is a basic and vital element in every modern business.It records the past growth or decline of the business.Careful analysis of these results and trends may suggest the ways in which the business may grow in future.
M: That’s also quite complicated, isn’t it?
G: Yeah, hope I can do a good job!
New Words
Phrases and Expressions
loads of 大量；许多
drive sb.crazy 把某人逼疯
a variety of 各种各样的……
Exercise 1
Fill in the blanks with corresponding English of the following words and expressions.
会计学_______________ 会计师______________
货币_________________ 专业________________
注册会计师___________ 投资人_______________
监管人_______________ 债权人_______________
下定决心要___________ 各种各样的___________
Exercise 2
Suppose you are an accounting major.Give your response to the following situations.
1.What is your major?
2.What is CPA?
3.What is accounting called?
4.What is accounting about?
5.How can accountancy help a company?
Exercise 3
Practical activity：Work with your partner to create a dialogue based on the given situation.
Suppose you are an accounting student at university and your friend wants to get some information about your major.Create a dialogue with your classmates.
Section B
Accounting and Its Environment
Accounting is a process of recording, classifying, summarizing, and interpreting those business activities that can be expressed in monetary terms.A person who specializes in this field is known as an accountant.
As one of the oldest professions, accounting is as old as the civilization of human.It is essential to various phases of history, accountants participated in the development of nations, trade, finance, money and banking.Accounting is one of the fastest growing professions in the modern business world.Every new store, school, restaurant, or filling station–indeed, any new enterprise of any kind–increases the demand for accountants.Consequently, the demand for competent accountants is generally much greater than the supply.Government officials often have a legal background; similarly, the men or women in management often have a background on accounting.They are usually familiar with the methodology of finance and the fundamentals of fiscal and business administration.
1.Nature of Business
1.1 Types of Business Entity
A business can be organized in three different ways: manufacturing, merchandising and service business, as shown in Figure 1-1.
Figure 1-1 Types of Businesses
A manufacturing business converts materials into finished products through the use of machinery and labor.
A merchandising business must first purchase merchandises from other businesses (such as manufacturers or distributors) and then sell them to customers.
A service business provides services rather than products to customers.
1.2 Forms of Business
Three different forms of businesses are proprietorship (or sole trader), partnership and corporation, as shown in Figure 1-2.
Figure 1-2 Forms of Business
A proprietorship is owned and managed by one person, although there might be any number of employees.A proprietorship is fully and personally liable for any losses that the business might make.
A partnership is a business owned jointly by a number of partners.The partners are jointly liable for any losses that the business might make.
A company is owned by shareholders.Most companies are limited liability companies.For a limited liability company, the shareholders will not be personally liable for any losses the company incurs.The liability is limited to the nominal value of the shares they own.This limited liability is achieved by treating the company as a completely separate legal entity.
1.3 Types of Business Activities
Three different types of business activities are: financing activities, investing activities and operating activities, as shown in Figure 1-3.
Figure 1-3 Types of Business Activities
Financing activities involve obtaining funds to begin and operate a business.After funds are financed, a business must use investing activities to obtain the necessary resources to start and operate the business.Once resources have been acquired, a business uses the resources to implement its operating activities.
2.Objectives of Accounting
The objectives of accounting, are shown in Figure 1-4: ① recording the business transactions; ② summarizing the business transactions for a period in order to provide information about the company in the forms of financial statements, such as balance sheet, income statement, cash flow statement etc (see Figure 1-5 which briefly shows the information in each of the financial statements); ③ supporting decision making.
Figure 1-4 Objectives of Accounting
Figure 1-5 Summary of Information in the Financial Statement
3.Users of Accounting Information
In general, users of accounting information are divided into two major categories: internal information users and external information users.
As it is illustrated in Figure 1-6, financial accounting is concerned with the production of financial statements for external users.Management (or managerial) accounting provides much more detailed and up-to dated information for the management.
Figure 1-6 Users of Accounting Information
4.Types of Accounting (shown in Figure 1-7)
Figure 1-7 Types of Accounting
5.Accounting Regulatory System (shown in Figure 1-8)
Figure 1-8 Accounting Regulatory System
The IFRS Foundation, formerly known as the International Accounting Standards Committee Foundation (IASC), is the supervisory body for the IASB.
IASB is responsible for adopting existed International Accounting Standards (IASs), developing and issuing new accounting standards called International Financial Reporting Standards (IFRSs).The Logo of IASB is shown in Figure 1-9.
Figure 1-9 LOGO of IASB
The IFRIC issues rapid guidance on accounting matters where divergent interpretations of IFRSs have arisen.
IAC provides a forum for the IASB to consult a wider range of interested parties affected by the IASB’s work.
6.Professional Accounting Bodies
Accounting frequently offers the qualified person an opportunity to move ahead quickly in today’s business world.Indeed, many of the heads of large corporations throughout the world have advanced to their position from the accounting department.Accounting is a basic and vital element in every modern business.It records the past growth or decline of the business.Careful analysis of these results and trends may suggest the ways in which the business may grow in future.Expansion or reorganization should not be planned without proper analysis of the accounting information; and new products and the campaign to advertise and sell them should not be launched without the help of accounting expertise.
New Words
Phrases and Expressions
General Motors 美国通用汽车公司
financial statements 财务报表
decision makers 决策者
Balance Sheet 资产负债表(https://www.daowen.com)
Income Statement 利润表
Cash Flow Statement 现金流量表
government agencies 政府部门
managerial accounting 管理会计
tax bureau 税务局
financial accounting 财务会计
ACCA 英国特许公认会计师工会
ACCA成立于1904年，是目前世界上最大及最有影响力的专业会计师组织之一，也是在运作上通向国际化及发展最快的会计师专业团体。
IASB 国际会计准则理事会
International Accounting Standards Board （IASB） 国际会计准则理事会，前身是International Accounting Standards Committee （IASC） 国际会计准则委员会。于2000年全面重组，并在2001年初改为国际会计准则理事会，主要负责制定和发布国际会计准则，促进国际会计的协调。
Exercise 1
Choose the best answer to each of the following questions.
1.Which of the following statements is NOT true?
A.Accountant is someone who specializes in the field of accounting.
B.There are three different forms of business: proprietorship, partnership and corporation.
C.In general, users of accounting in formation are divided into two major categories: internal information users and external information users.
D.Accounting is the fastest growing professions in the modern business world.
2.Which of the following statements is NOT the objectives of accounting?
A.Accounting aims to record relations and trades.
B.Accounting may help a company save extra expenditure directly.
C.Accounting helps companies to collect information to complete financial statements.
D.Accounting is made to help make future decisions.
3.Which of the following statements about financial accounting and management accounting is true?
A.Management accounting only reflects the past performance of the company.
B.Financial accounting offers information in line with the company’s requirements.
C.Management accounting is usually prepared every year while financial accounting is prepared every month.
D.Financial accounting is normally required by the law while the management one is not mandatory.
4.Which of the following statements of accounting regulatory system is NOT true?
A.The function of IASB is not only to carry on the existed international accounting standards, but also issue new accounting standards.
B.IAC will hold a meeting for the IASB members to inquire a number of interest related parties influenced by the IASB’s work.
C.The IFRS foundation is responsible to supervise the IFRIC.
D.IASB should drafts standards under the supervision of the IFRS (international accounting standards committee).
5.What can you infer from the text?
A.Men or women with background of law and accounting will be more likely to work as government officials.
B.Without accounting analysis, a company will end in bankruptcy.
C.In modern society, the skilled accountants are still in short supply.
D.As one of the fastest growing professions, there will be more professional accounting bodies in the future.
Exercise 2
Fill in the blanks with the words given below.Change the form where necessary.
1.__________are interested in their potential profits and the security of their investment.
2.__________need detailed and up-to-dated information such as profitability of individual departments and products, in order to control their business and plan for the future.
3.__________need to know if an employer can offer secure employment and salaries.
4.__________need to know if they will be repaid, which will depend on the solvency of the company.
5.__________need to know the financial health of a business before agreeing to supply goods.
6.__________need to know that a company can continue to supply them into the future.
7.__________wish to compare their own performance against that of other companies and lean about their rivals.
8.__________needs to use accounting information to figure a company’s tax liabilities and watch over the company’s adherence on regulations.
Exercise 3
A.Translate the following sentences into Chinese.
1.As one of the oldest professions, accounting is as old as the civilization of human.It is essential to various phases of history, accountants participated in the development of nations, trade, finance, money and banking.
2.A proprietorship is owned and managed by one person, although there might be any number of employees.
3.In general, users of accounting information are divided into two major categories: internal information users and external information users.
4.Management (or managerial) accounting provides much more detailed and up-to-dated information for the management.
5.Accounting frequently offers the qualified person an opportunity to move ahead quickly in today’s business world.
B.Translate the following paragraph into English.
许多人选择会计师作为自己的职业是因为它有许多优势。会计行业的就业机会很多，这主要是由于会计教育和培训工作远远跟不上对会计服务的需要。一旦有了工作，私人或政府部门会计师就有了保障，而且，他们通常有机会在公司内部得到晋升，像我们提到的，有时可以升到公司的最高层。
课文译文
会计和行业环境
会计是一个以货币形式对经济活动进行记录、分类、汇总以及解释的过程。专门从事这方面工作的人员叫作会计师。
作为历史上最古老的职业之一，会计和人类文明的历史一样悠久。会计对于各个历史阶段都十分重要，会计师参与了国家、贸易、金融、货币和银行的发展。会计师是当今经济社会中发展最快的职业之一。每一个新商店、学校、饭店或加油站，事实上，任何种类的新企业的建立都增加了对会计师的需求，其结果是对有水平的会计师的需求通常要大大超过其供给。政府官员通常要有做过法律工作的背景。同样，从事管理工作的人，无论男女通常都有会计工作的经历，他们对理财方法和财务管理的基本原则一般都十分熟悉。
1.企业的性质
1.1 企业的三种类型：制造业、商业和服务企业。
图1-1 企业的类型
制造企业通过机器和工人将材料转换成产成品。
商业企业必须先从其他企业（如制造商或分销商）采购商品，并将这些商品销售给客户。
服务业企业向客户提供服务而不是提供产品。
1.2 企业的三种组织形式：独营、合伙和公司形式。
图1-2 企业的组织形式
个体独营企业由一人所有和管理，虽然可能拥有不同数量的员工。企业的所有损失将全部由个体独营者个人承担。
合伙企业由一些合伙人共同所有。企业的所有损失将由合伙人共同承担。
企业由股东所有。大部分的企业是有限责任公司。有限责任公司的股东无需个人承担企业的损失。他们的损失只局限于他们所拥有的股票的名义价值。有限责任是通过将企业看作与股东完全独立的法律主体而实现的。
1.3 企业的三种活动类型：筹资活动、投资活动和经营活动。
图1-3 企业的活动类型
筹资活动包括获取兴建和经营企业的资金。当企业筹集到资金后，通过投资活动获得启动和经营企业的必要物资。获得物资后，企业将运用物资实施其经营活动。
2.会计的目标
图1-4 会计的目标
根据图 1-4，会计的目标包括：① 记录商业交易；② 以财务报表的形式归纳商业交易的信息，如资产负债表、利润表、现金流量表等；③ 支持决策。
图1-5 商业交易信息的归纳
3.会计信息使用者
一般而言，会计信息使用者可分为两种：内部信息使用者和外部信息使用者。
图1-6 会计信息使用者
如图1-6所示，财务会计为外部的信息使用者提供财务报表；管理会计为管理层提供实时更新的详细信息。
4.会计的种类（见图1-7）
图1-7 会计的种类
5.会计的法规体系（见图1-8）
图1-8 会计的法规体系
国际会计准则理事会负责执行现有国际会计准则，开发与颁布新的会计准则，叫作国际财务报告准则。
国际会计准则委员会负责实行国际会计准则，开发和发布新的会计准则，新发布的国际会计准则叫国际财务报告准则。
国际财务报告解析委员会为国际会计准则提供会计问题方面的解析。
国际财务报告咨询委员会（IAC）为国际会计准则委员会（IASB）提供论坛，以便国际会计准则委员会（IASB）向受其工作影响的有关各方进行广泛咨询。
图1-9 IASB的标识
6.专业会计团体
会计这一职业在当今经济社会中给有能力的人提供了升迁的机会。事实上，世界上许多大公司的领导者都是从会计部门升到现有位置上的。会计是现代各类公司基本和重要的组成部分，它记录公司以往的兴衰，对这些记录结果和趋势进行认真的分析，有助于公司提出未来发展的方向。如果没有对会计资料的恰当分析，就无法计划公司的扩展和重组，没有会计专业人员的帮助，就无法组织生产新产品、开展促销活动。
Reference
孙坤，胡英坤.会计英语[M].大连：东北财经大学出版社，2000.
