Ok, let’s take a look at what a balance sheet is. So there is a fundamental equation in accounting, it’s the basis for everything we do, which says the follow, assets are equal to liabilities plus owners’ equity, owners’ equity. Now, that’s more definitional than an origin break equation. We set up a system so that must be true. If we were to play games, and I ask you to define the number two, anyone want to take a chance? What’s the definition of the number two? So I think if you look in a dictionary, you’ll find that there is no definition for two. It’s what we call one plus one. If I called one plus one is seven and seven plus one was three, we have a perfectly good system. They are just labels. Well the same thing is true here. This equation is true because I make it true, there is nothing inherit about it that makes it true. It’s part of this closed system. Ok. So let’s say what’s the intuitive definition for an asset? What do you think an asset is? Anyone, ok, so one that must be something you own. What else? Your name please? Last name? Thank you. Good. Has a future benefit. Ok. And that’s the 3rd condition which I would now expect you to know, which is that has to be the result of the past transaction. And we will come back to this.
assets are equal to liabilities plus owners’ equity:
assets = Liabilities + Owners’ (or shareholders’) Equity 资产=负债+所有者权益
此段Professor Hazel Cohen讲解了会计学的基本等式，及其成立的假设。他先从学生对资产的感性认识上入手，通过让学生列举自己所了解的资产的具体存在形式来认识并定义资产。

So how about an example of an asset? Anyone? Sure. You seem asleep. Answer! A house. Sounds good. Such as? Car. Ok. Probably not. Not that education doesn’t have, we assume, a significant benefit, but it is a very tricky item and we were very hard-pressed to quantify it. And people would argue about that amount a great deal. Now there was a movement to try and put that on the books of an asset in terms of human capital. It didn’t go very far. Ok. And it might be a very important aspect of a company. But it won’t be in the accounting records. Ok. So it really might be what we might normally think of it is an asset. But it’s not an accounting asset. Ok. So it’s not it, it’s a bad idea, but it won’t fit a definition and we can't deal with it very easily.
accounting records：会计帐目

What else? Yes, madam, I’m sorry. Land. Good. What else? Cash. I like that one sure. Good. What else? Securities that we’ve invested in. Sure. That’s not what we call supplies. Ok. So supplies are things like rubber bands and pads and pencils. So what is this, what we call the stuff that we might have, that we would call it if, suppose we’re a manufacturing company. Ok. So inventory. So in this course, there are no manufacturing companies .Ok. Cause that’s a wholly different poll of assets in terms of accounting. But we still have inventory. Inventory is the stuff that you have, that you’re going to resell with the expectation of making a profit. So if I’m a real estate company I might have inventory of houses. But if I’m a retail merchant that I might have my, you know space in which I sell my stuff. So that’s not inventory, they both are assets but we call them different things. So what would be my office space or my sales room or whatever. But if I’m a real estate agent that I have houses that I’m going to sell, that would be inventory.
Inventory：存货
real estate：房地产
So if I’m a real estate company I might have inventory of houses. But if I’m a retail merchant that I might have my, you know space in which I sell my stuff. So that’s not inventory, they both are assets but we call them different things. 如果我有间房地产公司，那我的存货就是房屋。但是如果我是个零售商，那么我可能有，你们知道，我卖东西的空间。但那(指零售商的商店等固定资产)不是存货，他们都是资产，但却是不同的。
Inventory is the stuff that you have, that you’re going to resell with the expectation of making a profit. 虽然房地产商和零售商的房屋都是资产，但后者的不具有带来未来收益的功能，所以不属于存货。

Good. What else? Sure, computer systems, hardware, software. What else? Good. Explain. Excuse me? We can sell stock. Is that what you said? Like we would issue it. Then the answer is no. No. That’s not an asset. Ok. We'll come back to that, that’s part of the owner’s equity. Sure. We have investment in bonds and that was covered maybe in securities. And so for this one, big one. That I’m hoping you will say but if not, I’ll say it.
Cover:购买，购得
Securities：有价证券