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Chapter One General Introduction
Analysis of the situation in this chapter
The content of this chapter is the basic criterion in the accounting standards, which has a controlling effect on the subsequent chapters of the book. The score is not high and belongs to the unimportant chapter. The test sites in the past 3 years are shown in the following table:
| Test site | Year/question type |
|---|---|
| Accounting information quality requirements | 2020 multiple choice questions, 2018 multiple choice questions |
Issues that should be paid attention to in this chapter:
- Master the basic concepts;
- Because part of the content of the exercises in this chapter is related to the subsequent chapters, it is recommended that beginners study all the content in this book before delving into these topics.
main content
Section 1 Accounting Overview
Section 2 Financial Reporting Objectives, Basic Accounting Assumptions and Accounting Basis
Section 3 Accounting Information Quality Requirements
Section 4 Accounting Elements and Their Recognition and Measurement Principles
Section 5 Financial Reports
Section One Accounting Overview
1. The definition of accounting
It is an economic management work that uses currency as the main unit of measurement to reflect and supervise the economic activities of a unit .
2. The role of accounting
3. The formulation of corporate accounting standards and the system of corporate accounting standards
China's current corporate accounting standards system consists of basic standards, specific standards, application guidelines and explanations.
Section 2 Financial Reporting Objectives, Basic Accounting Assumptions and Accounting Basis
1. Financial reporting goals
The goal of financial reports is to provide users of financial reports with accounting information related to corporate financial status, operating results, and cash flows, reflect the performance of corporate management’s entrusted responsibilities, and help users of financial reports make economic decisions.
China's definition of financial reporting goals takes into account both the usefulness of decision-making and the view of fiduciary responsibility.
2. Basic accounting assumptions
- Accounting entity
Accounting entity refers to the spatial scope of corporate accounting confirmation, measurement and reporting.
The accounting subject is different from the legal subject . Generally speaking, the legal subject is the accounting subject, but the accounting subject is not necessarily the legal subject.
The accounting entity defines the spatial scope of accounting. - Continued operation
Continued operation means that in the foreseeable future, an enterprise will continue to operate at its current scale and status, without suspending business, or reducing its business on a large scale.
Continuous operation is the prerequisite for accounting installments. - Accounting installment
Accounting installment refers to the division of the production and operation period of an enterprise's continuous operation into a number of consecutive periods of the same length.
Because of the accounting period, the difference between the current period and the previous period and the following period has occurred, and different types of accounting entities have the basis of bookkeeping, and then there are accounting treatment methods such as depreciation and amortization. The
accounting period is divided into annual and interim periods. The year and mid-term are determined according to the beginning and ending dates of the Gregorian calendar. Interim refers to the reporting period that is shorter than a complete fiscal year. - Monetary measurement
refers to the accounting entity's monetary measurement in financial accounting confirmation, measurement and reporting, reflecting the accounting entity's financial status, operating results and cash flow.
[Sample Questions and Multiple Choice Questions]
Company A signs a merchandise sales contract with Company B on December 20, 2×20. The contract stipulates: Company A shall deliver the contracted goods to Company B before May 20, 2×21, and receive experience. Company A shall bear the risks of loss, damage, and value changes before the goods reach Company B. The goods sold by Company A in this contract are inventory W goods. On December 30, 2×20, Company A issued a special value-added tax invoice to Company B in accordance with the contract and confirmed the sales income of the goods on the same day. The W product was delivered on May 10, 2×21 and arrived at Company B on May 15 for acceptance. Regarding the appropriateness of company A's 2×20 year W product sales revenue recognition, in addition to considering compliance with the revenue recognition conditions specified in the accounting standards, it should also consider the basic accounting assumption that may be violated is ().
A. Accounting entity
B. Accounting installment
C. Continuous operation
D. Currency measurement
[Answer] B
[Analysis] Under the assumption of accounting installment, an enterprise should divide accounting periods, settle accounts in installments and prepare financial statements.
Three, accounting basis
The confirmation, measurement and reporting of corporate accounting shall be based on the accrual system.
| project | concept | Concerns |
|---|---|---|
| Accrual | All income and expenses that have been realized in the current period and expenses that have been incurred or should be borne, regardless of whether the money is collected or paid, should be included in the income and expenses of the current period and included in the income statement; all income and expenses that do not belong to the current period, even if the money has been received in the current period Should not be used as income and expenses for the current period | The confirmation, measurement and reporting of corporate accounting should be based on the accrual system; the financial accounting in government accounting and the accounting of private non-profit organizations adopt the accrual system |
| Payment realization system | Use cash received or paid as the basis for confirming income and expenses, etc. | The budget accounting in government accounting adopts the realization system of receipt and payment |