1 An Introduction to Accounting 
1.1 Accounting is an Information System 
1.2 Forms of Organization 
1.3 The Framework for the Preparation and Presentation of Financial Statements 
Introducing componen，ts of the Framework 
1.4 Understanding of Financial Statements 
Statement of Financial Position，（Balan，ce Sheet） 
Statement of Comprehensive Income（Income Statement） 
Statement of Changes in， Owner's Equity／Statement of Retained Earnings 
Statement of Cash Flows 
1.5 Accounting and its Profession 
1.6 Accounting Elements and Using the Accounting Equation 
What is Accounting Equation？ 
Effects of Transactions on the Accounting Equation 
1.7 Ethics in Accounting 
Some Basic Ethical Standards 
Demonstration Problem 
Vocabulary 
Self—Test Questions 
Discussion Questions 
Exercises 
Problems 
Mini—Case 
2 Recording Transactions 
2.1 Economic Events and Business Documents 
2.2 T Accounts and Debit & Credit 
Types of Accounts 
Chart of Accounts and Ledger 
The Accoun，tin，g Equation and the Rules of Debits and Credits 
Normal Balances 
2.3 Journalizing and Posting Transactions 
Journalizing Transactions 
Posting Transactions 
2.4 Preparing a Trial Balance 
Trial Balance 
Locating and Correcting Errors 
Formatting Conventions 
2.5 Practices in China 
Receipt Vouchers 
Payment Vouchers 
Transfer Vouchers 
2.6 Using the Information—the Debt Ratio 
Demonstration Problem 
Vocabulary 
Self—Test Questions 
Discussion Questions 
Exercises 
Problems 
Mini—Case 
3 Adjusting the Accounts， Preparing the Statements， and Completing the Accounting Cycle 
3.1 The Need for Adjustments 
Time Period Principle 
Need for Adjustments at the End of an Accounting Period 
Accrual and Cash Basis of Accounting 
3.2 Adjusting the Accounts 
Prepaid Expenses 
Depreciation 
Unearned Revenues 
Accrued Expenses 
Accrued Revenues 
3.3 Adjusted Trial Balance and Preparation of Financial Statements 
3.4 Using the Worksheet 
Purpose of the Worksheet 
Preparing Worksheets 
3.5 Closing Entries 
Purpose of Closing Entries 
Preparing the Closing Entries 
3.6 Post—closing Trial Balance 
3.7.The Accounting Cycle 
3.8 Practices in China 
3.9 Classification of Balance Sheetltems 
Assets 
Liabilities 
Owner's Equity 
3.10 Using the Information—the Current Ratio 
Demonstration Problem 
Vocabulary 
Self—Test Questions 
Discussion Questions 
Exercises 
Problems 
Mini—Case 
4 Accounting for Cash， Trading Securities and Receivables 
4.1 Cash， Cash Equivalents， and Liquidity 
4.2 Internal Control over Cash 
Purposes and Broad Principles of Internal Control Procedures 
The Characteristics of an Effective System of Internal Control 
Internal Control for Cash 
4.3 The Petty Cash Fund 
Establishing the Fund 
Making Petty Cash Payments 
Reimbursing the Fund 
4.4 Reconciling the Bank Balance 
Bank Statement 
Need for Reconciling the Bank Balance 
Steps in， Reconciling the Bank Balance 
4.5 Trading Securities 
Accounting for Trading Securities 
Balance Sheet Presentation 
4.6 Credit Sales and Bad Debts 
Design， Internal Controls for Receivables 
Allowance Method of Accounting for Bad Debts 
Writing off a Bad Debt 
Bad Debt Recoveries 
Estimating the Amount of Bad Debt Expense 
Direct Write—Off Method of Accounting for Bad Debts 
Credit Card Sales 
4.7 Promissory Notes 
Recording Receipt and Collection， of a Note 
Dishonored Notes Receivable 
Discounting Notes Receivable 
Recording the Discounting of Notes Receivable 
Contingent Liability and the Full Disclosure Principle 
4.8 Converting Receivable into Cash 
Selting Accounts Receivable 
Pledging Accounts Receivable 
4.9 Using the Information—Accounts Receivable Turnover 
Demonstration Problem 
Vocabulary 
Self—Test Questions 
Discussion Questions 
Exercises 
Problems 
Mini—Case 
5 Inventories and Cost of Goods Sold 
5.1 Cost to Be Included in Inventories 
What Is Inventory 
Who Owns the Inventory 
5.2 Inventory Systems 
5.3 Purchase，Discount，Return & Allowance 
Merchandise Purchases—Perpetual Inventory System 
Purchase Retums and Allowances 
Trade Discounts 
Purchase Discounts 
5.4 Inventory Cost Flow Assumptions 
Periodic Inventory System 
Perpetual Inventory System 
Consistency in the Application of Inventory Valuation Procedures 
5.5 Revenue from Sales and Cost of Goods Sold—Perpetual Inventory System 
Sales Retums and Allowances 
Sales Discounts 
Shrinkage 
5.6 Inventory Errors 
5.7 Valuation Using Lower of Cost or Market （LCM） Method 
5.8 Inventory Estimation Method 
5.9 Disclose Information of Inventory in Financial Statements 
5.10 Analysis the Information—Merchandise Turnover 
Demonstration Problem 
Vocabulary 
Self—Test Questions 
Discussion Questions 
Exercises 
Problems 
Mini—Case 
…… 
6 Long—Term Assets： Investments， Fixed Assets， Natural Resources and Intangible Assets 
7 Current and Long—Term Liabilities 
8 Owner's Equity 
9 Statement of Cash Flows 
Appendix 1：Balance Sheet 
Appendix 2：Profit and Loss Account 
Appendix 3：Future Value of $ 1 
Appendix 4：Present Value of $ 1 
Appendix 5：Present Value of Annuity of $ 1 
Appendix 6：Future Value of Annuity of $ 1 
Appendix 7：Solution of Exercises and Problems