FE in Accounting- Financial Statements.ppt

Words and Expressions 财务报表结构 Financial Statement Structure 资产负债表 Balance Sheet 资产 Assets 负债 Liabilities 权益 Equity 利润表 Income Statement 现金流量表 Cash Flow Statement Introduction What are financial statements? Financial statements provide an overview of a business‘ financial condition in a period of time. Financial statements (or financial reports) are formal records of a business financial activities. Four Major Steps: Step one: Capital supplied. In this step, investors and lenders supply funds to the company by investments (stocks) and debts. Step two: Balance sheet which is an updated record of the capital invested in the business. Step three: Cash flow which is created by assets in the current year.? Step four: Retain and repay. After??paying costs, the company can do three things with its cash profits: pay interest, pay dividends, and retain or re-invest the remaining profits. Balance Sheet Capital Supplied CASH FLOW Retain profits or “repay” debt-holders (with interest) and stock-holders (with dividends) Four Basic Types: Balance sheet Income statement Statement of retained earnings Cas