Accounting
Semester 2, 2025/2026
Course Outline
Li Wen
Course Instructions
Before the class
• Join the Wechat course group, and be alert to reminders and
announcements there.
• I’ll also upload course materials in the
Wechat group.
Course Instructions
During the class
• Please attend classes on time.
• Actively participate in the class discussions.
After the class
• Review the lecture notes.
• Finish the assignment before the deadline.
Introduction
• What is accounting?
Introduction
• What is accounting?
Introduction
• What is accounting?
Sales revenue Expenses
Net income Cash flow
Introduction
• Why accounting? --- from the macro perspective
Financial
Market
Accounting
Information
Capital
……
Firm 1 Firm 2 Firm 3 Firm N
Introduction
• Why accounting? --- from the micro perspective
• Decision --- Buy or Sell or Hold?
• Stock price v.s. Intrinsic value of stock
• Accounting provides the information to make decisions!
Introduction
• Why accounting? Tesla Inc (TSLA)
Introduction
• Common misconception of accounting
Accounting = Bookkeeping
Introduction
Bookkeeping is the clerical side of accounting—the
recording of routine transactions and day-to-day record
keeping.
Professional accountants are involved more with the
interpretation and use of accounting information than with
its actual preparation.
Introduction
• Common misconception of accounting
I’m not an Accounting major
=>
I don’t need accounting
Introduction
Accounting is the language of business, and
trying to run a business without understanding
accounting information is analogous to trying to
play sports without understanding the rules.
Start your own business…
Finance / Econ students …
Management students …
Marketing students …
Other majors …
Introduction
• Learning objectives of the course
What are the roles of accounting in business
context?
How to record business transactions?
How to prepare financial statements?
How to analyze financial statements?
How to use financial information for decision
making, planning and control?
Introduction
• Textbook
Fundamental Accounting Principles, by John Wild, Ken
Shaw and Barbara Chiappetta (25e)
会计学原理（英文版·第25版），中国人民大学出版社
Introduction
• Assessment criteria
Assessment %
Class Participation & 20
Assignment
Mid-term exam 30
Final exam 50
Total 100
Introduction
• Communication
Office hour:
13:00-16:00, Tuesday (By appointment), Room 330,
College of Business Administration, Fengxian Campus
Email: wenli@[Link]
Wechat Group
Introduction
Schedule
Introduction
Chapter 1 Accounting in business
Chapter 2 Analyzing and Recording Transactions
Chapter 3 Adjusting Accounts for Financial
Statements
Chapter 4 Completing the Accounting Cycle
Chapter 5 Accounting for Merchandising
Operations
Chapter 6 Inventories and Cost of Sales