会计专业英语-Financial-Statements

3.1BalanceSheetBalancesheetisthefundamentalandbackboneofthewholeaccountingandreportingsystem.Itpresentsacompany’sfinancialpositionattheendofaspecifieddate.Sometimes,itisalsoreferredtoasthestatementoffinancialposition.Thebalancesheetmainlyincludesthreesegments:assets,liabilities,andowner’sequity.Accordingtotheliquidityofaccounts,itemsinbalancesheetaresubcategorizedandlistedseparately.Balancesheetcouldprovideinformationtousersaboutwhatthecompanyownsandowes,andhowmuchisinvestedbyshareholdersorcreditors.Assetsareresourcesthathavebeenacquiredthroughtransactions,ownedorcontrolledbyabusiness,andhavefutureeconomicvalue.Assetsareusuallysubdividedintocurrentassetsandnon-currentassets.Currentassetsareassetsthatareexpectedtobeconvertedintocashorsoldoutorusedupwithinoneyearoronebusinessoperatingcycle.Currentassetsusuallyinclude:◦①cashandcashequivalents,suchastreasurybillsandmoneymarketfunds;◦②receivables,suchasaccountsreceivable,notesreceivable,andotherreceivables;◦③inventories,inmanufacturingbusinesses,therearethreemajortypesofinventories:rawmaterials,workinprocess,andfinishedgoods;◦④marketablesecuritiesintendedtobeholdinashorttime;◦⑤prepaidexpenses,suchasprepaidinsurance,interests,rents,taxes,andotherprepaiditems.Onabalancesheet,currentassetitemsaredisplayedinorderofliquidityortheeasetobeconvertedintocash.Theassetsthatcannotfeasiblybeturnedintocashwithinoneyear,oronebusinessoperatingcycle.Non-currentassetsusuallyinclude:◦①Fixedassets,suchasland,equipment,andbuilding.Theyarenormallyreportedatcostlessaccumulateddepreciation;◦②Intangibleassets,suchaspatents,trademarks,copyrights,franchisesandintellectualproperty.Theyarenormallyreportedatcostminustheamountpreviouslyamortized.Liabilitiesareobligationsofonebusiness.Theyareasourceofassetsandalsoaclaimagainstassets.Liabilitiesarepresentedonthebalancesheetbycashequivalentordiscountedpresentvalue.Liabilitiesareusuallysubdividedintocurrentliabilitiesandnon-currentliabilities.Currentliabilitiesareadebtsorobligationsthatareduewithinoneyear.Thefollowingitemsareallcurrentliabilities:◦1)shorttermdebt;◦2)payables,suchasaccountspayable,notespayable,interestpayable,salariespayable,taxpayable,etc.;◦3)unearnedrevenues;◦4)long-termdebtsduewithinoneyear.Non-currentliabilitiesarelong-termfinancialobligationsthatwillnotduewithinthecurrentaccountingyear.Non-currentliabilitiesusuallyinclude:◦1)Long-termborrowings;◦2)bondspayable;◦3)longtermnotespayable.Owner’sequityisthemoneyattributabletoabusiness’owners,alsoknownas“netassets”.Owner’sEquity=totalassets-liabilities.representedonthebalancesheetwithtwoaccounts.◦(1)ContributedCapital◦(2)RetainedEarningBalancesheetisbuiltontheframeworkoftheaccountingequation:Assets=Liabilities+Owner’sEquity.Usuallybuiltintwodifferentforms◦accountform◦reportform.Thebalancesheetinaccountformisdividedintotwosides.Allassetaccountsarelistedontheleftsideandallliabilityandowner’sequityaccountslistedontherightside.Thetotalamountofthesetwosidesmustbeequal.续表Aone-columnstatement◦Theitemsofassetsarelistedonthetopofthestatement.◦Itemsfollowingthemareliabilitiesandowner’sequity.Nomatterwhatistheform,thebalancesheetcanalwayspresentthefinancialconditionofabusinessbalancesheetcanalsorevealthechangeofacompany’sfinancialstructureanditsdevelopingtrendbycomparingwithformerstatements.Asummaryoftheoperatingresultsofabusinessduringanaccountingperiod.Itmeasuresacompany’sfinancialperformanceaboutrevenuesgeneratedandexpensesincurred.Italsoshowsthenetprofitorlossincurredoveraspecificaccountingperiod,typicallyoverafiscalquarteroryear.◦Theexcessofrevenuesoverexpensesiscallednetincomeornetprofit.◦Anetincomeforaperiodincreasestheowner’sequity(capital)fortheperiod,whileanetlossdecreasesitsowner’sequity(capital).Incomestatementisimportant◦itcouldshowtheprofitabilityofacompanyduringthetimeintervalspecifiedinitsheading◦itcanfacilitatedecision-makingbycomparingandanalyzingtheincomestatementIncomestatementshowsrevenues,expenses,gainsandlosses,ratherthancashreceipts(moneyreceived)andcashdisbursements(moneypaidout).Thecomponentsofincomestatementwillvaryaccordingtothecomplexityofbusinessactivities.Mostcompanieswillhaverevenues,expensesandincome(1)RevenuesfromPrimaryActivitiesRevenuesfromprimaryactivitiesarereferredtoasoperatingrevenue.Differenttypeofcompanieshasdifferentprimaryactivities.Accordingly,revenuesfromtheprimaryactivitiesofretailers,manufacturers,wholesalers,ordistributorsarecalledsalesrevenuesorsales;thoseofaservicefirmiscalledservicerevenuesorfeesearned.Revenuesfromsecondaryactivitiesareoftenreferredtoasnon-operatingrevenues.Thesearetheamountsabusinessearnsoutsideofsellinggoodsandprovidingservices.Gainsincludegainsfromthesaleofnon-currentassets,gainsfromnon-monetaryassetsexchange,andgainsfromgovernmentgrants,andsoon.(1)ExpensesInvolvedinPrimaryActivities◦Expensesinvolvedinprimaryactivitiesareexpendituresthatincursoastoearnrevenuesfromoperatingactivities.◦Merchandisersandmanufacturerswillusuallyreporttheircostofgoodssoldseparatelyintheincomestatemen