Financial Reporting Mechanics (财务报告机制)

Business Transactions can be classified for financial reporting as operating activities, investing activities, or financing activities.

Financial statement elements are the major classifications of assets, liabilities, owners' equity, revenues, and expenses.

Accounts are the specific records within each element where various transactions are entered.

Classifying Accounts Into he Financial Statement Elements

Assets：

Cash and cash equivalents. 现金和现金等价物，一般为高流动性的在90天内期满的证券

Accounts Receivable. 应付账款

Inventory. 存货

Financial Assets. 如市场证券

Prepaid Expenses. 预付费用，将来被体现在损益表中花费的费用的条目

Property, plant and equipment. 所有权，公司和设备，包括贷销帐或的累计折旧 (Accumulative depreciation)

Investment in affiliates. 隶属公司的投资

Deferred tax assets. 递延税资产，运用不同的折旧方法造成所得税不等，并与未来几年进行摊销

Intangible Assets. 如专利，商业标识，执照和商誉 (patents, trademarks, licenses, and goodwill)

Liabilities:

Accounts payable/trade payable. 应付账款

Financial liabilities. 如短期应付票据 (short-term notes payable)

Unearned revenue. 未实现收入，将来被体现在损益表中的收入条目

Income tax payable. 应付收入税

Long-term debt 长期负债，如应付债券 (bond payable)

Deferred tax liabilities 递延税收负债

Owners' Equity:

Capital. 资本，公司发行股票

Additional paid-in capital. 资本公积：普通股超出面值的溢价收入，回收的股份计入对销账户--库存股 (treasury stock)

retained earnings. 未分配红利

other comprehensive income. 其他综合收益：外汇交易费用，最低养老金负债的调整或者未实现投资收益或损失

Revenue:

Sales. 主营业务收入

Gains. 企业主营业务收入外附加的其他收入

Investment income. 如利息和股利分红

Expenses:

Costs of Goods Sold (COGS). 生产成本

Selling, general, and administrative expense. 营业费用和管理费用：营业费用包括广告费，保险费，展览费等；管理费用包括企业董事会和行政管理部门所发生的管理人员的工资，福利费，咨询费，差旅费，邮电费等

Tax expense. 税金

Interest expense. 利息费用

Loss. 主营业务以外的其他业务带来的资产或者权益的减少
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Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Revenue - Expense - Dividends

Double-entry accounting is a transaction has to be recorded in at least two accounts.

The principle of accrual accounting requires that revenue is recorded when the firm earns it and expenses are recorded as the firm incurs them regardless of whether cash has actually been paid.

Unearned revenue: 未实现收入 属于负债
Accrued revenue: 应计收入 属于资产
Prepaid expense: 预付费用 属于资产
Accrued expense: 应计收入 属于负债

Journal Entries - 日记账分录
General Journal - 普通日记账
General Ledger - 普通日记总帐
Initial trail balance - 初期试算平衡表
Adjusted trial balance - 调整试算平衡表

Management may attempt to manipulate or misrepresent the company's financial performance.