Task Team of FUNDAMENTAL ACCOUNTING School of Business. Sun Yat-sen University Beauty Photo Store case is reviewed here. from cash to equipment;, using equipment to produce photos; from photos to cash Circulation of funds: Uses of funds and assets, and payoff of funds for the Beauty Photo Store: Cost of equipment, cost of supplies, human costs?(What are the operating purposes for Beauty Photo Store?)Cash receptions and revenues by Beauty Photo Store, net increase of fund and profit, difference between uses and payoff of cash?(Nature of profit?) Accounting Transactions between two different Mutual exchange: A purchases an asset, paying cash or bearing the responsibility of paying cash in future, B sells the asset, earning the rights of receiving or collecting cash; One-way transaction Investments or donations to another accounting entity Accounting Events: Accounting events-internal transferring of resources among departments of a same entity; allotments of raw materials for plants; Damages caused by earthquakes. External versus internal events: Between different entities or within a same entity Accounting C ces: Accounting circumstances-usually an outcome of collaboration of multiple events. Circumstances and their impacts: Changes in prices, exchange rates; How to determine these changes? E.g. uncollectability of receivables due to the liquidation of the debtor Unpredictability Elaboration on Accounting elements Assets-Liabilities-Owner's equity-Revenues-Expenses-Profits Assets: Assets are economic resources owned by a business that are expected to be of benefit in the future. Further Thoughts on Assets: Human resources as an asset for example, value and labor of Manager of Beauty Photo Store? Cameramen and shop assistants? Natural resources as asset? Liabilities: Liabilities are creditor s claims to the assets. Liabilities are obligations to outsiders Owner's Equity: Owner's Equity is the owners claim to the assets. It is the amount of assets that remains after subtracting the liabilities. Changes in Owner's Equity; Investments by owners and revenues, amounts earned by delivering goods or services to customers, increase owner's equity. Withdrawals of assets from the business by owners and expenses decrease owners quity. Expenses occur when assets are used or liabilities increase as a result of earning revenues Revenue: Revenues(sales) are increases in owners equity arising from increases in assets received in exchange for the delivery of goods or services to customers. Revenues are increases inTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Beauty Photo Store case is reviewed here. from cash to equipment; using equipment to produce photos; from photos to cash. Circulation of funds: Uses of funds and assets, and payoff of funds for the Beauty Photo Store: Cost of equipment, cost of supplies, human costs？(What are the operating purposes for Beauty Photo Store？) Cash receptions and revenues by Beauty Photo Store, net increase of funds and profit, difference between uses and payoff of cash？(Nature of profit?) Accounting Transactions Accounting transactions-Economic exchange between two different accounting entities: Mutual exchange: A purchases an asset, paying cash or bearing the responsibility of paying cash in future; B sells the asset, earning the rights of receiving or collecting cash; One-way transaction: Investments or donations to another accounting entity Accounting Events: Accounting events-internal transferring of resources among departments of a same entity; allotments of raw materials for plants; Damages caused by earthquakes. External versus internal events: Between different entities or within a same entity Accounting Circumstances: Accounting circumstances-usually an outcome of collaboration of multiple events. Circumstances and their impacts: Changes in prices, exchange rates; How to determine these changes？E.g. uncollectability of receivables due to the liquidation of the debtor; Unpredictability Elaboration on Accounting Elements Assets-Liabilities-Owner’s equity-Revenues-Expenses-Profits Assets: Assets are economic resources owned by a business that are expected to be of benefit in the future. Further Thoughts on Assets: Human resources as an asset？for example, value and labor of Manager of Beauty Photo Store？Cameramen and shop assistants？Natural resources as an asset? Liabilities: Liabilities are creditor¡¯s claims to the assets. Liabilities are obligations to outsiders Owner’s Equity: Owner’s Equity is the owner’s claim to the assets. It is the amount of assets that remains after subtracting the liabilities. Changes in Owner’s Equity; Investments by owners and revenues, amounts earned by delivering goods or services to customers, increase owner’s equity. Withdrawals of assets from the business by owners and expenses decrease owner’s equity. Expenses occur when assets are used or liabilities increase as a result of earning revenues. Revenue: Revenues (sales) are increases in owners' equity arising from increases in assets received in exchange for the delivery of goods or services to customers. Revenues are increases in