《实用会计英语》（第四版）教学课件 PPT chapter3.ppt

3.5 Financial Statements Natures of Financial Statements A central feature of accounting. The primary means of communicating important accounting information to users． Attempting to show the business in financial terms． Three major financial statements The balance sheet; The income statement; The Cash Flow Statement 高等教育出版社 * 3.5 Financial Statements 3.5.1 The Balance Sheet to show the financial position of a business on a certain date． to be often called the statement of financial position． to present a view of the business: a collection of resources or assets belonging to the company is equal to claims against those assets. 高等教育出版社 * 3.5 Financial Statements 高等教育出版社 * 3.5 Financial Statements 3.5.2 The Income Statement to show the amount of income earned by a business over a period of time; to measure whether or not the business achieved its primary objective of earning an acceptable income; 高等教育出版社 * 3.5 Financial Statements to hold the most important single piece of information about a business - its net income, which is revenues minus expenses. If expenses exceed revenues, the result is a net loss for the period. 高等教育出版社 * 3.5 Financial Statements 高等教育出版社 * 3.5 Financial Statements 3.5.3 The Cash Flow Statement It shows the relationship of net income to changes in cash balances. The cash flows statement reports all the cash activities—both receipts and payments—of a company in the specified period of their occurrence, classified as to operating, investing, and financing activities 高等教育出版社 * 3.5 Financial Statements 3.5.3 The Cash Flow Statement 高等教育出版社 * 1. Describe the accounting cycle. 2. Identify the types of source documents. 3. Explain difference between general ledgers and subsidiary ledgers. 4. Identify the types of journals. 5. Explain three major financial statements. 高等教育出版社 * Next Unit 4.1 Cash 4.2 The Bank Account: a Control Device 4.3 Accounts Receivable 4.4 Notes Receivable 4.5 Accounting for Bad Debts * * “ ” “ ” Unit