Unit1 Accounting：Its Foundation1
Learning Objectives1
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
1.6Financial Statement10
Key Words and Expressions13
Exercises13
Extended Reading14

Unit2 The Recording Process15
Learning Objectives15
2.1Double Entry15
2.2The Account16
2.3Debits and Credits17
2.4Steps in the Recording Process21
2.5The Journal22
2.6The Ledger23
2.7Posting25
2.8The Trial Balance26
Key Words and Expressions28
Exercises29
Extended Reading30

Unit3 Adjusting the Accounts32
Learning Objectives32
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 Accruals39
3.6The Adjusted Trial Balance47
Key Words and Expressions48
Exercises49
Extended Reading50

Unit4 Completion of the Accounting Cycle52
Learning Objectives52
4.1Preparing Closing Entries53
4.2Preparing Post-closing Trial Balance55
4.3Correcting Entries—an Avoidable Step59
4.4Classified Balance Sheet61
Key Words and Expressions66
Exercises66
Extended Reading67

Unit5 Current Assets68
Learning Objectives68
5.1Cash and Cash Equivalents68
5.2Accounts Receivable72
5.3Inventory78
Key Words and Expressions85
Exercises86
Extended Reading88

Unit6 Long-Term Assets90
Learning Objectives90
6.1Plant and Equipment(Fixed Assets)90
6.2Intangible Assets96
Key Words and Expressions99
Exercises99
Extended Reading100

Unit7 Liabilities102
Learning Objectives102
7.1Current Liabilities102
7.2Long-term Liabilities106
Key Words and Expressions110
Exercises111
Extended Reading111

Unit8 Owner′s Equity113
Learning Objectives113
8.1Accounting for Single Proprietorship113
8.2Accounting for Corporation114
Key Words and Expressions119
Exercises120
Extended Reading121

Unit9 Measurement of Bussiness Income122
Learning Objectives122
9.1Revenue122
9.2Expense125
9.3Business Income127
Key Words and Expressions128
Exercises128
Extended Reading129

Unit10 Financial Statements130
Learning Objectives130
10.1Balance Sheet130
10.2Income Statement132
10.3The Statement of Owner′s Equity135
10.4The Statement of Cash Flows135
Key Words and Expressions137
Exercises137
Extended Reading138

List of Reference Books140