m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 2 Business Transactions and Accounting Equation ask team of PUADAMIEAML ACCOUJNYAA School of business. sun yat-sen niversity
Lesson 2 Business Transactions and Accounting Equation Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University
Outline ◆ Enterprises Q Accounting transactions, Accounting Events, and Accounting circumstances Q Economic Activities and Accounting Elements ◆ Accounting equation Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
2 Outline ⧫Enterprises ⧫Accounting Transactions, Accounting Events, and Accounting Circumstances ⧫Economic Activities and Accounting Elements ⧫ Accounting Equation
Opening Story Q Funding and Spending at College D Assets of a college student Cash CD player Computer o Funding these assets -Sponsored by parents Sponsored by relatives Borrowed from relatives and acquaintance Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3
3 Opening Story ⧫Funding and Spending at College Assets of a college student →Cash →CD player →Computer Funding these assets →Sponsored by parents →Sponsored by relatives →Borrowed from relatives and acquaintance
Opening Story(continued Q We could deal with the above-mentioned financial issues from the following perspectives: a How do we spend the“ funds” which we have source n How do we fund our daily expenditures and possession n What about the relationship between the "funds which we have sourced and our daily expenditures and possessions? Task Team of FUNDAMEntALaCCOUNtING Business Sehool. Sun )af sen University
4 Opening Story (continued） ⧫ We could deal with the above-mentioned financial issues from the following perspectives： How do we fund our daily expenditures and possessions？ How do we spend the “funds” which we have sourced？ What about the relationship between the “funds”which we have sourced and our daily expenditures and possessions？
Enterprises Q Concept of Enterprise Definition of“ enterprise” n Functions of an enterprise n Characteristics of an enterprise Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5
5 Enterprises ⧫Concept of Enterprise Definition of “enterprise” Functions of an enterprise Characteristics of an enterprise
Forms of Enterprise Q There are three major forms of enterprise: Sole-proprietorship D Partnership D Corporations Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
6 Forms of Enterprise ⧫There are three major forms of enterprise: Sole-proprietorship Partnership Corporations
Sole proprietorships Q Single person owns the business Q Not separate from its owner in terms of responsibility and liability The business is the owner and the owner is the business Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7
7 Sole proprietorships ⧫Single person owns the business ⧫Not separate from its owner in terms of responsibility and liability ⧫The business is the owner and the owner is the business
Partnership Q Owned by two or more people 9 Similar to a sole proprietorship Q Not separate from the owners in terms of responsibility and lia bility Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
8 Partnership ⧫Owned by two or more people ⧫Similar to a sole proprietorship ⧫Not separate from the owners in terms of responsibility and liability
Corporations Q Legally separate and financially separate from the owners Q Ownership in a corporation is divided into units called shares of capital stock Q Owners are called shareholders or stockholders Q Corporations are separate legal entities Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
9 Corporations ⧫Legally separate and financially separate from the owners ⧫Ownership in a corporation is divided into units called shares of capital stock ⧫Owners are called shareholders or stockholders ⧫Corporations are separate legal entities
Characteristics of Enterprise Characteristics Proprietorship partnership Corporation Business entity yes yes Legal entity ves Limited liability no no no no yes Business taxed no One owner allowed yes Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 10
10 Characteristics of Enterprise Characteristics Proprietorship Partnership Corporation Business entity yes yes yes Legal entity no no yes Limited liability no no yes Unlimited life no no yes Business taxed no no yes One owner allowed yes no yes