财务会计英语.讲解.pptVIP

Section 1Definition of Profit 1.1 Profit (利润) Profit is the overall measurement of a business’ performance. 1.2 Net income (净利润) If revenues exceed expenses, net income is produced, which is shown in the equation “Net Income=Revenues-Expenses”. 1.3 Gross profit (毛利) Gross profit is the margin for products that are sold before deducting the operating expenses, or it is the difference between the revenues and the cost of goods sold. Section 1Definition of Profit 1.4 Calculations of net income in businesses of different types (不同企业净利润的计算方式) For a service business, net income is revenues from the sale of service minus operating expenses. For a business that sells products, the calculation of net income is a two-step process: first subtracting the cost of goods sold from revenues generated from sales to arrive at gross profit and then subtracting operating expenses from gross profit to determine net income. Section 1Definition of Profit Section 1Definition of Profit 1.5 Retained earnings (留存收益) Retained earnings are the amount that is increased each year in the form of net income decreased by dividend distributions or by losses in operation. 1.6 Retained earnings statement (留存收益表) In addition to an income statement, corporations sometimes prepare a retained earnings statement. This statement shows the changes in retained earnings from one accounting period to another. Section 1Definition of Profit Exercises 7.1 The word “____” is often used as an accounting term in China, while the word “____________” is often used in international accounting. 7.2 If revenues exceed expenses, the result is net income or _____. 7.3 Profit measures the business’ operational _________. Exercises 7.4 When products are sold and before the ____________ are deducted, the amount is called gross profit. 7.5 To calculate net income of a business that sells products, first subtract the cost of goods sold and then _____________. 7.6 For a corporation, retained earning