会计英语第3章.pptx

会计英语;3.1 Balance Sheet Balance sheet is the fundamental and backbone of the whole accounting and reporting system. It presents a company’s financial position at the end of a specified date. Sometimes, it is also referred to as the statement of financial position.;The balance sheet mainly includes three segments: assets, liabilities, and owner’s equity. According to the liquidity of accounts, items in balance sheet are subcategorized and listed separately. Balance sheet could provide information to users about what the company owns and owes, and how much is invested by shareholders or creditors. ;Assets are resources that have been acquired through transactions, owned or controlled by a business, and have future economic value. Assets are usually subdivided into current assets and non-current assets.;Current assets are assets that are expected to be converted into cash or sold out or used up within one year or one business operating cycle. Current assets usually include: ①cash and cash equivalents, such as treasury bills and money market funds; ②receivables, such as accounts receivable, notes receivable, and other receivables; ③inventories, in manufacturing businesses, there are three major types of inventories: raw materials, work in process, and finished goods; ④marketable securities intended to be hold in a short time; ⑤prepaid expenses, such as prepaid insurance, interests, rents, taxes, and other prepaid items. On a balance sheet, current asset items are displayed in order of liquidity or the ease to be converted into cash. ;The assets that cannot feasibly be turned into cash within one year, or one business operating cycle. Non-current assets usually include: ①Fixed assets, such as land, equipment, and building. They are normally reported at cost less accumulated depreciation; ②Intangible assets, such as patents, trade marks, copyrights, franchises and intellectual property. They are normally reported at cost minus the amount previously amortized.