会计专业英语（第2版）课件Chapter 8.ppt

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter 8Financial Statements and Financial Statement Analysis,8.1 Financial statements,8.2 Financial statement analysis,2,8.1 Financial Statements,Financial statements are the principal means through which a company,communicates its,financial information to,stakeholders.,This,chapter introduces,four primary,financial statements:,(,1)the Statement of Financial Position(,often referred to,as the Balance Sheet,),(,2)the Income,Statement,;,(,3)the,Statement of,Cash,Flows,;,and,(,4)the Statement of Changes in,Owners Equity.,Note disclosures are,an integral part of each financial statement.,3,8.1.1 Balance Sheet,1,.The,Purpose of a Balance,Sheet,The Balance Sheet is also called the Statement of Financial,Position.The purpose,of this financial statement is to demonstrate where the company,stands,in,financial terms,at,a specific point,in time,.,It reports,the,assets,liabilities,and owners equity,of a business enterprise at the end of a,specific date,.,The user of the Balance Sheet can assess a,companys,liquidity,solvency,and,financial flexibility,through the information on assets,liabilities,and,Owners equity,.,4,2,.The,Elements of a Balance Sheet,A Balance Sheet includes three general classes of items,assets,liabilities,and,owners equity,.,Assets,can be divided into,current assets,and,non-current assets,.,Current assets,usually,include cash,short-term,investments,receivables,and,prepaid,expenses;converting,themselves into cash in,one year or less,.,Non-current assets,require,more than one year,to realize their full value to the company,such as long-term,investments,property,plant,and equipment,and,intangible assets.,L,iabilities,can be divided into,current liabilities,and,long-term liabilities,.,Owners equity,includes,capital stock,additional,paid-in,capital,and,retained,earnings,.,5,3,.The,Format of a Balance Sheet,Normally there are two presentation formats of a Balance Sheet,.,H,orizontal,presentation.,This,presentation format lists,assets,by,sections,on the left,side,and,liabilities and,owners equity,by,sections,on,the right,side.,With,this format,a,sufficiently wide space is needed to present the items side,by side.It,visualizes the fact that assets equal liabilities plus,owners equity,.,V,ertical,presentation,.,This,presentation format lists the,sections one,above the,other,on,the same,page.,Please refer to the Illustration 8-1 shows the Balance Sheet of ABC Wine Company as of end-of day,December 31,2018,.,6,8.1.2 Income,Statement,1,.The,Purpose of an Income Statement,An Income Statement is a financial statement that summarizes the,profitability,of,a business entity for a specified period of time,.,The,primary purpose,is,to help users of,financial statements,:,(,1)evaluate the past performance of the company,(,2)predict,future performance,and,(,3)assess the risk or uncertainty of achieving future,cash flows.,Information,in the Income,Statement not,only helps users evaluate,past performance,but,also,pro,vides insights into the likelihood of achieving a particular level of cash flows,in the,future,.,7,2,.The,Elements of an Income,Statement,The,Income Statement classifies amounts into,gross profit on,sales,income,from operations,income,before taxes,and,net income,.,Net income results from,revenue,expense,and,gain and loss,transactions.,Revenues,expenses,gains,and,losses are the major elements of the Income Statement.,Revenues,take many forms,such,as sales,interests,dividends,and,rents.,Expenses,also take many,forms,such,as cost of goods sold,depreciation,expenses,interests,salaries and wages,and taxes.,Gains,and losses,are also,of many,types,resulting,from events that are not in the normal course of,business,such,as the sale of investments or plant assets,settlement,of liabilities,write-offs of,assets due to impairments or casualties.,8,3.The Format of,an Income Statement,A,single-step Income Statement,It consists,of just,two groups,:,revenue and expenses.Expenses,are deducted from revenues to arrive at net income or,net loss.,The primary,advantage,lies in its simple,presentation and,the absence of any implication that one type of revenue or expense,item has,priority over another,.,A Multiple-step,income,statement,This,format,of statement separates operating transactions from non-operating,transactions,and,matches costs and expenses with related revenues,.,It covers,some or all of the following sections or,subsections:,(1,)Operating section;(2)Non-operating section;(3),I,ncome,tax,section;,(4),D,iscontinued,operations,section;(,5,)Extraordinary,items,section;,and(6)Earnings,per share.,9,8.1.3 Statement of Cash,Flows,1,.The,Purpose of a Statement of Cash Flows,The primary purpose,is,to provide,information about,cash receipts,and,cash payments,for a business entity during the,accounting period.,The,term,cash flows,includes both,cash receipts,and,cash payments,.,I,nformation,about cash receipts and cash payments,is classified,in terms of the,companys,operating,activitie。