The Objective of today’s Class今天课的目的.pptVIP

The Objective of today’s Class 1. Understand the difference and relation between the Balance Sheet and Income Statement, and what they mean for the company. 2.Can explain What’s the Balance Sheet, and its subsections and the meaning of each of the subsection. 3. Can understand the Income Statement and calculate the net profit step by step. Difference between the Balance Sheet Income Statement Income Statement: 1. The company’s performance over a range of time , for example: a year or month. 2. Revenue-Expenses=Profits Balance Sheet: 1.The company’s position in just one given moment of time. 2.Everything the company owns, owes and worth. 3.Asset = Liabilities + Equity Before we go to the Balance Sheet, do you know what’s the State of the Union国情咨文? Let’s examine the Balance Sheet first. What’s Dividend? Dividends are payments made by a corporation to its shareholder members When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Key words for a joint stock company Stock 股票 Shareholder’s equity 股东权益 Common Stock 普通股 Dividend 股息/股利/红利/债息 Retained earnings 留存收益 Assets 资产 Liability 负债 Stockholders Equity is often referred to as the book value of the company, and it comes from two main sources. The first and original source is the money that was originally invested in the company, along with any additional investments made thereafter. The second comes from retained earnings that the company is able to accumulate over time through its operations. In most cases, especially when dealing with older companies that have been in business for many years, the retained earnings portion is the largest component. Equity = Common Stock + Retained Earnings Retained Earnings = Net profit - Dividend Key words for a joint stock company What’s the relations betwe