基礎(chǔ)會計英語chapter 6 Financial Statements

1、Chapter 6 Financial Statements1. To command the components and their relationship of financial statements; 2. To learn to prepare basic financial statements.Brainstorming1. Try to say these accounting terms in English .資產(chǎn)負(fù)債表利潤表現(xiàn)金流量表凈利潤現(xiàn)金等價物總會計師公允價值水平式Brainstorming1) In an enterprise, what kinds of f

2、inancial statements are needed? 2) Can you simple describe the functions of three major financial statements?3) What are links among operating profit, total profit and net profit? 2. Discuss and answer the following questions.Accounting statements (also called financial statements) are structural re

3、ports on the financial status, business performance and cash flow of an enterprise. They shall at least include a balance sheet, an income statement, a cash flow statement, a statement of changes in the owners equities (or shareholders equities) and the notes. IntroductionIn Accounting Law of the Pe

4、oples Republic of China, the units that use a currency other than Renminbi as chief currency in their business receipts and expenditures may select one specific currency as their basic accounting currency, but the accounts to be reported in their financial statements shall still be converted to and

5、expressed in Renminbi. An enterprise publishes these statements regularly so that it can convey the profitability and financial position to its management and the interestedIntroduction6.1 Balance Sheet2) Sample of Balance Sheet 1) Items in Balance SheetA balance sheet is an accounting statement tha

6、t reflects the financial position of an enterprise at a specific date (e.g. the end of a month, a quarter, half a year or a year, etc. Sometimes it is also called the statement of financial position. A balance sheet appears in two forms: account form (also called horizontal format) and report form (

7、also called vertical format). In China, the account form is acceptable, which is stipulated in Accounting Standard for Business Enterprises. outsider局外人, 圈外人, 門外漢uniform ju:nif:m n.制服adj.全都相同的, 一律清一色的accountant in charge會計機(jī)構(gòu)負(fù)責(zé)人（會計主管人員）accountant-general總會計師formulatef:mjuleit vt.構(gòu)想出, 規(guī)劃, 確切地闡述aggrega

8、te riit rieit n.數(shù), 總計vt.總計達(dá)horizontal format水平式vertical format垂直式New Words and Expressions6.2 Income Statement2) Sample of Income Statement 1) Items in Income StatementAn income statement is an accounting statement that reflects the operating results of an enterprise for a certain accounting period.

9、 Sometimes it is also called Profit & Loss Statement. Its purpose is to measure whether or not a business achieves the acceptable income in a certain period, and to present the most important information, net profit of the business, so many people consider it as the most important financial statemen

10、t. An income statement is prepared on the accrual basis instead of the cash basis. Any loss in the statement shall be marked with “-”. The income statement appears in two forms: single-step format and multiple-step format. In China, the multiple-step format is acceptable, which is stipulated in Acco

11、unting Standard for Business Enterprises. profit & loss statement損益表impairment mpemnt n. 損害，損傷disposal dspzl n.（事情的）處置; （自由）處置權(quán)New Words and Expressions6.3 Cash Flow Statement1) Items in Cash Flow Statement2) Sample of Cash Flow Statement(1) Cash Flows Arising from Operating Activities(2) Cash Flows

12、 Arising from Investing Activities (3) Cash Flows Arising from Financing ActivitiesA cash flow statement is prepared on the cash basis rather than the accrual basis. In its heading, the cash flow statement lists three items: the name of the enterprise, the name of the financial statement (i.e. Cash

13、Flow Statement) and the date of its preparation. Below the heading is the body of the cash flow statement. 6.3 Cash Flow Statement(1) Cash Flows Arising from Operating ActivitiesCash received from the sale of goods and the rendering of services;Tax refunds received;Cash received relating to other op

14、erating activities;Cash paid for goods purchased and labor services received;Cash paid to employee and for employee;Payments of all types of taxes;Cash payments relating to other operating activities.6.3 Cash Flow StatementCash received from returns of investments;Cash received from returns on inves

15、tments;Net cash received from the disposal of fixed assets, intangible assets and other long term assets;Net cash received from the disposal of subsidiaries and other business entities;(2) Cash Flows Arising from Investing Activities 6.3 Cash Flow StatementOther cash received relating to investing a

16、ctivities;Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets;Cash paid for investments;Net cash paid for the acquisition of subsidiaries and other business entities; Other cash payments relating to investing activities.(2) Cash Flows Arising from Investing Activities 6.3 Cash Flow StatementCash received by absorbing investments;Cash received from debts;Cash received relating to other financing activities.Cash paid for repayments of debts;Cash paid for distribution of div