Lesson Notes Lesson 6Accounting for Merchandising Activities Learning Objectives 1. Describe merchandising activities and identify business types. 2. Identify and explain the important components of income for a merchandising company

Outline The nature of firm; The value of accounting; The Evolution of accounting; Accounting: bird view Task Team of FUNDAMENTALACCOUNTING, Business School, Yat-sen University

Outline Describe the preparation of adjusted trial balance Describe and prepare a worksheet and describe its usefulness. Describe the closing process and explain why temporary accounts are closed each period. Prepare closing entries

Outlines A General View of Financial statements Income statement Balance sheet Statement of owners'equity’ Simple Illustration

What is managerial accounting? Comparison between managerial accounting and financial accounting Cost classifications in different ways Flow of manufacturing activities Job order cost accounting systems and process cost accounting systems

Outline Segmented Reporting and Responsibility Accounting System Cost- Volume-Profit- Analysis Budgeting and Budgetary Control Standard Costs and Variance Analysis Managerial Decision Making

Outline The Fundamental Principles of Internal Control Internal Control to Cash Explain and Record Petty Cash Fund Transactions. Prepare a Bank Reconciliation Exploring the Concept of Accounting Ethics Accounting Ethics and Social Responsibilities Accounting Ethics and Decision Making

Outlines Accounting standards: a tool for trusting Introduction of Accounting Standards Accounting Standards in China ABrief of Accounting Theory

Outline Demand and supply of financial analysis Basic analytical procedures Analysis methods Comprehensive analysis of financial ratios The limitations of financial analysis

Outline Fundamental Principles of Accounting Information system diagram of the accounting process Accounting System Components General Journal Transactions Computerized Accounting Information System