Unit 2Accounting Elements &Accounting Equation
Unit 2 Accounting Elements & Accounting Equation
Accounting ElementsAccountingElementsDefinitionClassificationBased on economicItrefers to thebasiccontent,accountingclassification forelements canbeaccounting objectsdivided into assets,and the specificationliabilities, owner'sof accountingequity, revenues,calculation objectsexpenses, profit.2025
2025/12/3 2 Definition Classification Accounting Elements It refers to the basic classification for accounting objects and the specification of accounting calculation objects. Based on economic content, accounting elements can be divided into assets, liabilities, owner’s equity, revenues, expenses, profit. Accounting Elements
AssetsAssetsDefinitionClassificationAnyeconomic*Current assetsresources of＊ Property, Plantmonetary valueowned or controlledand Equipmentby a business that are* Intangible assetsexpected to benefitfuture operation.20
2025/12/3 3 Assets Definition Classification Assets Any economic resources of monetary value owned or controlled by a business that are expected to benefit future operation. ＊Current assets ＊ Property, Plant and Equipment ＊ Intangible assets
Franklin CorporationBalance sheetDecember 31.2009Current assetsCash700,000300,000Short-term investment550,000Accounts receivable5,500Notes receivable130.000Inventories50,000Prepaid expenses1,735,500Total current assetsNon-current assets1,000,000Property, Plant, and Equipment450,000Accumulateddepreciation550,000Total PPE50,000Intangible assets45,000Investment Property2.095,000Total Non-current assets3,830,500Total assets
2025/12/3 4 Franklin Corporation Balance sheet December 31, 2009 Current assets Cash 700,000 Short-term investment 300,000 Accounts receivable 550,000 Notes receivable 5,500 Inventories 130,000 Prepaid expenses 50,000 Total current assets 1,735,500 Non-current assets Property, Plant, and Equipment 1,000,000 Accumulated depreciation 450,000 Total PPE 550,000 Intangible assets 50,000 Investment Property 45,000 Total Non-current assets 2.095,000 Total assets 3,830,500
PPE:Land, Buildings, Machinery, Furniture andEquipmentIntangible assets:Patent, Copyrights, Franchises, Trademarks,Goodwill2025/12/35
2025/12/3 5 ◼ Intangible assets: Patent, Copyrights, Franchises, Trademarks, Goodwill ◼ PPE: Land, Buildings, Machinery, Furniture and Equipment