会计英语unit_11_Financial_Statements教材教学课件.pptVIP

Unit 11;Financial Statements;;Purpose of financial statements ;;;;Case ;2.Format of Balance Sheet; Assets, Liabilities and owner’s equity are listed on a balance sheet, and according to their liquidity, the items are subcategorized and listed separately.;;;;;;;Ⅱ.Income Statement;Profit = Revenues - Expenses;(1) Evaluating the profitability of a business From income statement, we can know whether the company is profitable in this period and by comparing them in different periods, we can know whether the company has better profitability. (2) Evaluating the solvency of a business Solvency is also determined by profitability. (3) Facilitating decision-making Management gets a clear idea of revenues, expenses and profits and the relationship among them, and then can make better decision. (4) Evaluating management performance Income statement indicates the operating efficiency, which finally reflects the management performance of a business.;2.Format of income statement;;;;Ⅲ.Cash Flow Statement;;1.Functions of Cash flow statement;2. Content of cash flow statement;The cash flow statement has to contain: Name of the business Name of the financial statement Period of the report The financial items it reflects;;;;;;;;Relationship of financial statements;Summary