cfa一级cfa一级试题共18部分七investment tools financial statement analysis basic concepts.pdfVIP

最新CFAFRM备考资料 .CFAFRM.cn 七 InvestmentTools:FinancialStatementAnalysis:BasicConcepts 1.A:PreliminaryReadingMeasuringBusinessIn e a:Explainwhyfinancialstatementsarepreparedattheendoftheregularaccountingperiod,why accounts must be adjusted at the end of each period, and why the accrual basis of accounting producesmoreusefulin estatementsbalancesheetsthanthe cashbasis. Tobe relevant,informationmustbereliable.Thismeansinformationmustbe consistent and parable overtimeandbeprovidedona timely basis.Accordingtothe relevancyprinciple,afirmneedstoidentifyitsactivitiesinatimelyfashionwithinaspecific period,suchasaquarteroryear. Normalaccountingprocedureistorecordduringtheaccountingperiodthoseeconomicevents thatoccurredastheresultofexternaltransactions.Attheendoftheperiodafterallthe externaltransactionsh ebeenrecorded,severaloftheaccountsintheledgerneedtobe updatedbeforetheirbalancescanbepostedtothefinancialstatements. Theadjustingprocessisconsistentwithtwoimportantaccountingprinciples: 1. The revenuerecognitionprinciple,whichrequiresthatrevenuebereportedinthe in estatementonlywhenitis earned,notbeforeandnotafter. 2. The matchingprinciple reportsexpensesonthein estatementinthesame accountingperiodastherevenuesthatwereearnedasaresultoftheexpenses. Accrualbasisaccounting assignsrevenuestotheaccountingperiodinwhichtheyare earnedandmatchesexpenseswiththerevenuesgeneratedbythoseexpenses.Theobjective oftheaccrualbasisistoreporttheeconomiceffectsofrevenuesandexpenseswhentheyare earnedorincurred,notwhencashisreceivedorpaid. Cashbasisaccounting recognizesrevenueswhencashisreceivedandexpenseswhen cashispaid.Underthecashbasisnetin efortheperiodisthedifferencebetween revenuesreceivedincashandexpensespaidwi ash. Accrualaccountinggenerallyprovidesabetterindicationofperformancethaninformation basedonthereceiptanddisbursementofcash.A