Chapter 1 Overview of Accounting　1 Listening　Materials　1 Learning　Objectives　1 Chapter　Mind Map　1 Reading　Materials　2 1.1　Accounting and Accounting Profession　2 1.1.1　Ethics of Accounting　2 1.1.2　Functions of Accounting　3 1.1.3　Users of Accounting Information　3 1.1.4　Accounting Profession　4 1.2　Accounting Assumptions　4 1.2.1　Business Entity　4 1.2.2　Going-concern　5 1.2.3　Monetary Unit　5 1.2.4　Time Period　6 1.3　Accounting Principles　7 1.3.1　Accrual Basis　7 1.3.2　Historical Cost　8 1.3.3　Realization　9 1.3.4　Matching　9 1.3.5　Full Disclosure　9 1.4　Quality Characteristics of Accounting Information　10 1.4.1　Relevance　11 1.4.2　Reliability　11 1.4.3　Comparability　12 1.4.4　Materiality　12 Key　Terminologies　12 Review　and Discussion Questions　14 Exercises　14 參考譯文　16 Chapter　2 Accounting Cycle　24 Listening　Materials　24 Learning　Objectives　24 Chapter　Mind Map　24 Reading　Materials　25 2.1　Accounting Equation and Double-entry Accounting　25 2.1.1　Accounting Equation　25 2.1.2　Double-entry System　25 2.2　Definition of Accounting Cycle　26 2.3　Journals and Ledgers　27 2.3.1　Journals　27 2.3.2　Ledgers　27 2.4　Adjusting　28 2.4.1　Prepaid Expenses　28 2.4.2　Accrued Expenses　29 2.4.3　Accrued Revenues　29 2.4.4　Unearned Revenues　30 2.5　Closing Process　30 2.5.1　Temporary and Permanent Accounts　30 2.5.2　Posting Closing Entries　30 2.6　Trial Balance　31 2.6.1　Steps in Preparing a Trial Balance　31 2.6.2　Searching for and Correcting Errors　32 Key　Terminologies　33 Review　and Discussion Questions　34 Exercises　34 參考譯文　35 Chapter　3 Financial Statements　42 Listening　Materials　42 Learning　Objectives　42 Chapter　Mind Map　42 Reading　Materials　43 3.1　Balance Sheet　43 3.1.1　Components of Balance Sheet　43 3.1.2　Format of Balance Sheet　44 3.2　Income Statement　46 3.2.1　Components of Income Statement　47 3.2.2　Forms of Income Statement　48 3.3　Cash Flow Statement　49 3.3.1　Components of Cash Flow Statement　50 3.3.2　Preparation of Cash Flow Statement　50 3.4　Statement of Changes in Equity　53 3.4.1　Components of Statement of Changes in Equity　53 3.4.2　Preparation of Statement of Changes in Equity　53 3.5　Notes to Financial Statements　55 3.5.1　Accounting Policy　55 3.5.2　Financial Instruments　55 3.5.3　Related Party Transactions　55 3.5.4　Contingencies　56 3.5.5　Subsequent Events　56 Key　Terminologies　58 Review　and Discussion Questions　59 Exercises　60 參考譯文　61 Chapter　4 Current Assets　74 Listening　Materials　74 Learning　Objectives　74 Chapter　Mind Map　74 Reading　Materials　75 4.1　Monetary Capital　75 4.1.1　Cash　75 4.1.2　Bank Reconciliation　75 4.1.3　Internal Control Over Cash　76 4.1.4　Petty Cash Fund　77 4.1.5　Cash Surplus and Shortage　77 4.2　Receivables　78 4.2.1　Classification of Receivables　78 4.2.2　Bad Debts　78 4.2.3　Estimation of Bad Debts　79 4.3　Inventories　80 4.3.1　Inventory System　81 4.3.2　Cost of Inventory Acquired　81 4.3.3　Ending Inventory Valuation　82 Key　Terminologies　83 Review　and Discussion Questions　84 Exercises　84 參考譯文　85 Chapter　5 Non-current Assets　93 Listening　Materials　93 Learning　Objectives　93 Chapter　Mind Map　93 Reading　Materials　94 5.1　Fixed Assets　94 5.1.1　Definition and Characteristics of Fixed Assets　94 5.1.2　Classification of Fixed Assets　94 5.1.3　Costs of Fixed Assets　95 5.1.4　Post-acquisition Expenditures　96 5.1.5　Depreciation and Impairment　96 5.1.6　Disposals of Fixed Assets　97 5.2　Intangible Assets　98 5.2.1　Definition and Characteristics of Intangible Assets　98 5.2.2　Common Types of Intangible Assets　98 5.2.3　Recognition and Measurement of Intangible Assets　99 5.2.4　Post-acquisition Measurement　100 5.2.5　Disposals of Intangible Assets　100 5.3　Investments in Securities　101 5.3.1　Purposes of Investment in Securities　101 5.3.2　Types of Investment in Securities　101 Key　Terminologies　103 Review　and Discussion Questions　103 Exercises　104 參考譯文　105 Chapter　6 Liabilities　112 Listening　Materials　112 Learning　Objectives　112 Chapter　Mind Map　112 Reading　Materials　113 6.1　Current Liabilities　113 6.1.1　Definition of Current Liabilities　113 6.1.2　Accounts Payable　113 6.1.3　Short-term Notes Payable　114 6.1.4　Unearned Revenue　114 6.1.5　Short-term Borrowing　114 6.1.6　Accrued Liabilities　114 6.1.7　Dividend Payable　115 6.1.8　Current Portion of Long-term Obligation　115 6.2　Non-current Liabilities　116 6.2.1　Long-term Borrowing　116 6.2.2　Bonds Payable　116 6.2.3　Long-term Notes Payable　117 6.2.4　Pension Plans　117 Key　Terminologies　118 Review　and Discussion Questions　118 Exercises　119 參考譯文　119 Chapter　7 Owner’s Equity　124 Listening　Materials　124 Learning　Objectives　124 Chapter　Mind Map　124 Reading　Materials　124 7.1　Forms of Business Entity　125 7.1.1　Sole Proprietorship　125 7.1.2　Partnership　125 7.1.3　Corporation　125 7.2　Owner’s Equity of Corporations　126 7.2.1　Rights of Shareholders　126 7.2.2　Paid-in Capital　127 7.2.3　Retained Earnings　128 7.2.4　Dividends　128 Key　Terminologies　129 Review　and Discussion Questions　130 Exercises　130 參考譯文　131 Chapter　8 Revenue and Expense　135 Listening　Materials　135 Learning　Objectives　135 Chapter　Mind Map　135 Reading　Materials　135 8.1　Revenue　136 8.1.1　Definition of Revenue　136 8.1.2　The Earning Process of Revenue　136 8.1.3　Recognition of Revenue　137 8.2　Expense　138 8.2.1　Definition of Expense　138 8.2.2　Recognition of Expense　139 8.2.3　Main Expense Items　139 Key　Terminologies　141 Review　and Discussion Questions　141 Exercises　141 參考譯文　142 Chapter　9 Cost Accounting　147 Listening　Materials　147 Learning　Objectives　147 Chapter　Mind Map　147 Reading　Materials　148 9.1　Overview of Cost Accounting　148 9.1.1　Definition of Cost Accounting　148 9.1.2　Features of Cost Accounting　148 9.1.3　Comparison Between Cost Accounting and Financial Accounting　149 9.2　Cost Classification　149 9.2.1　Direct Cost and Indirect Cost　149 9.2.2　Product Costs and Period Costs　150 9.2.3　Variable Cost, Fixed Cost and Mixed Cost　151 9.2.4　Incremental Cost, Opportunity Cost, and Sunk Cost　151 9.3　Costing Method　152 9.3.1　Job-order Costing　153 9.3.2　Process Costing　153 9.3.3　Activity Based Costing　154 Key　Terminologies　156 Review　and Discussion Questions　157 Exercises　157 參考譯文　158 Chapter　10 Auditing　165 Listening　Materials　165 Learning　Objectives　165 Chapter　Mind Map　165 Reading　Materials　166 10.1　Introduction to Auditing　166 10.1.1　Definition of Auditing　166 10.1.2　Classification of Auditing　167 10.1.3　Types of Auditors　168 10.1.4　Auditing Report　169 10.2　Auditing Procedure　170 10.2.1　Management Assertions　170 10.2.2　Identify Auditing Objectives　171 10.2.3　Implementation of Auditing　172 10.3　Internal Control　175 10.3.1　Definition of Internal Control　175 10.3.2　Development History of Internal Control　175 10.3.3　Elements of Internal Control　176 Key　Terminologies　178 Review　and Discussion Questions　179 Exercises　179 參考譯文　180