Accounting English(part2)

Types of assets
Examples: Cash short term investment短期投资 (marketable securities有价证券) notes receivable 应收票据 accounts receivable 应收账款 Supplies 物料用品
Types of assets
Business entity concept
So far we have spoken of assets of a business. You may have wondered whether an intangible entity, such as a business, can own assets or have liabilities in its own name. There are two aspects to this question: the strict legal position and the convention adopted by accountants.
Answer 3
Investment --mortgage 抵押 notes receivables (due in 6 years) Plant Asset --store equipment --building ---furniture & fixtures ---office machine ---office equipment Intangible Asset ---goodwill 商誉 ---patents 专利
Answer 3
Current Asset ---Cash in bank --First National City Bonds ---accounts receivables --- notes receivables (due in 90 days) ---petty cash ---merchandise --factory supplies
More examples
Office furniture Cash
Question 2:
Test your ability to assign specific to various categories.
traveler’s check, tables, truck, computer, adding machine, lamp, pencils, type paper, chairs, stationery, wrapping paper, automobiles, coins, money in bank, desk blotters, light bulbs, desk, pens, currency, and showcases.
Notes receivable 应收票据
In some cases, promisory notes may be received from the credit customers in exchange for the merchandise soled or the serviced performed. A promisory note is a written promise to pay a certain sum of money on demand or at a fixed and determinable future time.
For example
Suppose that C sells goods on credit to D for $6,000 on terms that the debt must be settled within two months of the invoice date 1 October. If D does not pay the $6,000 until 30 November, D will be a debtor of C for $6,000 from 1 October until 30 November.
Accounts receivable 应收账款
Amounts owed by debtors are called trade accounts receivable, sometimes abbreviated to “accounts receivable” or “receivables”.
Accounting English (2)
College of Foreign Studies Jinan University
Accounting elements
Assets 资产 Liabilities 负债 Owner’s equity 所有者权益 Revenues 收入 Expenses 费用 Net earnings ( or Net loss) 净收益/净损
Question 3:
Place each of these assets in the appropriate column of the following form: Cash in bank, office equipment, First National City bonds, patents, accounts receivables, Office supplies, notes receivables (due in 90 days), building, office machines, furniture and fixtures, mortgage notes receivables (due in 6 years), store equipment, petty cash, good will, factory supplies, and merchandise. Current Asset Investment Plant Asset Intangible Asset
Notes receivable 应收票据
An interest bearing note is the note on which an annual interest rate is specified explicitly.
Determining the money value of assets Cost principle: The cost assigned to the asset includes not only the purchase price, but also transportation charges, installation charges, and any other costs associated with placing the asset into use by the organization. Business entity concept 企业实体概念 企业实体概念: The assets that the business owns are separate and apart from the assets that the owner may personally own.
Inventories 存货
Types of assets
Note: any money, regardless of its actual form, would be known and categorized as cash.
Types of assets
Non-current assets 固定资产 --long-term investment --those economic resources that are held for operational purposes 经营目的
Cash Furniture & Fixtures Delivery Equipment Office Supplies Office Equipment
Answer 2
Cash ---Traveler’s check, coins, money in bank, currency Furniture & Fixtures ---tables, chairs, desk, showcase Delivery Equipment -truck, automobile Office Supplies ---type paper, stationery, wrapping paper desk blotters, pens, pencils Office Equipment -type writer, adding machine, lamp, light bulbs
Types of assets
Examples: plant and equipment 厂房设备 natural resources 自然资源 intangible assets 无形资产
More examples
Factories Office buildings Warehouses Delivery vans Lorries Computer equipment
Accounting elements
A good understanding of these accounting elements will be a good start in learning financial accounting.
What Are Assets?
The economic resources that are owned or controlled by any business organization and can be expressed in monetary units are known as assets. Two requirements:
Business entity concept