Chapter_4-5basicfinancialstatement解说.ppt

Accounting English Accounting English BASIC FINANCIAL STATEMENTS Accounting English Financial statements, provide information about profitability(收益性 ) and financial position(财务状况)of a business to the management and the interested outsider. Accounting English Balance Sheet The balance sheet reports a company’s financial position as of (at) a point in time. Accounting English BALANCE SHEET The balance sheet (statement of financial position) reports the company’s assets, liabilities, and owners’ equity Accounting English Balance sheet’s three major categories Assets the economic resources of the firm Liabilities the debts of the firm Owners’ equity the owners’ interest in the firm Accounting English report form: the balance sheet displays(显示 ) the assets on the top, and below it are liabilities and owner’s equity in that order. Accounting English account form: the balance sheet presents assets on the left column and liabilities and owner’s equity on the right column. Accounting English An Example of Balance Sheet (account form) Assets Cash $ 20,000 Accounts receivable 2,000 Supplies 500 Land 11,000 Total assets $ 33,500 Liabilities and Stockholder’s Equity Liabilities Accounts payable $ 200 Stockholder’s equity Capital stock 20,000 Retained earnings 13,300 Total liabilities and owner’s equity $33,500 Accounting English Income Statement Accounting English Components of Income Statement Revenue – increases in net assets resulting from an entity’s operation over a period of time. Expenses - decreases in net assets resulting from an entity’s operation over a period of time. Accounting English Income Statement Gross Profit Net Profit Net Sales Gross Sales — Sales Returns销货退回 — Sales Discount销售折扣 Net Sales — Cost of Goods Sold Gross Profit — Operating Expenses Accounting English Income Statement Sales Sales