Principles and Practices of Financial Accounting

Author: Shi Xianwang
Publisher:
Publish Date: 2004-09-01
Features: The main features of this book are as follows: , propose the "Accounting Flat Model" hypothesis to simulate the entire capital movement of enterprises throughout the process. The proposal of this model transforms the conceptual capital movement of enterprises into tangible entity movement, making accounting objects, elements, and accounts all become visible and tangible entities, ultimately making capital movement accounting theory operational. Second, it fundamentally reveals the structure of accounts, the concept of double-entry bookkeeping, and the recording rules of the debit-credit bookkeeping method, unraveling "Littleton's puzzle." With the help of the "Accounting Flat Model" hypothesis, it directly analyzes the structure of accounts, the concept of double-entry bookkeeping, and the recording rules of the debit-credit bookkeeping method from the perspective of accounting objects—capital movement, revealing the essence hidden behind these three core concepts, thereby enhancing the scientificity of the accounting discipline. Third, it changes the current teaching system that arranges materials according to accounting statement items, establishing a new capital movement accounting theory system based on five business cycles of supply, production, sales, investment, and financing. To explore the laws of enterprise capital movement, this book proposes the concepts of "Ultimate Income" and "Losses." On this basis, it divides the entire capital movement of enterprises into five basic capital movements: supply, production, sales, investment, and financing, and constructs a new financial accounting teaching system, teaching system, and entire accounting theory system based on these five business cycles and the fundamental theory of capital movement. Fourth, it emphasizes the economic transactions themselves and de-emphasizes accounting entries. Throughout the book, the focus is on analyzing the capital movement of enterprises, while accounting entries are merely a natural byproduct in the process of analyzing capital movement. This is a corrective measure that de-emphasizes accounting entries while emphasizing the economic transactions themselves, with the hope of influencing accounting education philosophy. Fifth, it emphasizes that the essence of accounting is a management control activity. In this book, the concept that "accounting is a management control activity" runs through every economic transaction, every capital movement, and every accounting entry of the enterprise. Sixth, it reveals the relationship between property rights, capital movement, and accounting. Economic transactions are a surface phenomenon, with the underlying reality being the capital movement of the enterprise, and behind the capital movement lies the property rights relationships of the enterprise. Accounting is meant to reflect, control, and supervise the property rights relationships of the enterprise, as well as the changes in these property rights relationships in terms of value. Seventh, in terms of teaching methods, it perfectly integrates accounting calculation teaching with modern multimedia teaching methods. Through multimedia teaching methods, even the most complex capital movement flowcharts can be presented perfectly, continuously, clearly, and in an easily understandable manner to students. The perfect combination of accounting calculation and multimedia not only greatly improves teaching effectiveness and efficiency but also greatly enhances students' overall grasp and control of the entire capital movement of the enterprise, as well as the overall grasp and control of the entire economic activities and business operations, rather than being limited to scattered and trivial economic transactions. This book is divided into two parts: the first part is the basic principles of financial accounting, which is equivalent to the content of accounting principles; the second part is the practical application of financial accounting, which is equivalent to the content of intermediate accounting. The reason for combining accounting principles with intermediate financial accounting into one book is that, from the perspective of capital movement, the capital movement of enterprises is a complete and unified whole. If a separate book on accounting principles were written, it might sever the overall capital flowchart of the enterprise, resulting in poor effectiveness.