1、Chapter3 Basic accounting terminology,一、Introduction Managers need to have a basic understandingof finance and accounting to make full use of financial information. (page 65-66) Almost all reasons for business failure involve finance. ( page 66 ),3. Accounting is requested to keep up with changing c
2、ondition and demands of business.4. Basic accounting information and knowledge must be mastered to make decisions. 二、Management by objective ( MBO )（目标管理）Managerss objectives must match with authority,Management buyout (MBO)( 管理层收购 ） 四、Management by exception（MBE） Areas that exhibit major variations
3、 to budgets are paid much more attentions by managements。,五Accounting entityBusiness and personal transactions shall be kept apart.,Sole trader partnership,personal,drawings,capital,company,personal,Capital Share capital 股本,Dividends 红利,六What is accounting ？ Accounting is a systematic number record
4、of the affairs of a business. step1 source documents 原始凭证,Source documents,step2 journals,step4,journals,Ledger accounts,Financial statement,日 志,分 类 帐,总 帐,Report,step3,七Three major accounting statements Balance sheet (平衡表）a statement of assets and liabilities（ 资产负债表）b statement of net worth （净值表）c statement of owners equity （所有者权益表）,资产负债表 BALANCE SHEET NAME OF ENTERPRISE: xxxx AS OF ( MONTH/ DATE ),
