The document provides information about financial statements, including:
- There are four main financial statements: balance sheets, income statements, cash flow statements, and statements of shareholders' equity.
- Balance sheets show a company's assets, liabilities, and shareholders' equity at a point in time. Income statements show revenue and expenses over a period of time. Cash flow statements show cash inflows and outflows over a period of time.
- The document then discusses each financial statement in more detail.
Financial statement analysis is the process of reviewing and evaluating a company's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. Financial statements record financial data; however, this information must be evaluated through financial statement analysis to become more useful to investors, shareholders, managers and other interested parties.
Learn to analyse the financial statement of the company, get a deep understanding of balance sheet, cashflow statement and other financial elements. This course will give you a deep view of various financial ratios.
https://quest.finology.in/courses/financial-statement-analysis
Financial Statements :Nature, uses and limitations. Analysis and interpretations – meaning, procedure, objectives, and importance. Comparative statement, Common Size Statements and Trend Analysis - practical problems. Comparative financial statements are prepared by arranging financial data of two or more financial years in two side by side column.
Any financial statement that reports and comparison of data of two or more consecutive accounting periods are known as comparative financial statements.
Income statement or profit and loss account.
Тролли, интернет-тролли, или тролли в интернете, появляются всякий раз на вебинарах, в чатах, в группах, отвлекают внимание аудитории, и по-моему, "отсасывают"
энергию. Однако, тролли зарабатывают в интернете!Приходят они от недобросовестной конкуренции.Предлагаю дружно ставить им заслон. Как? Врага надо знать в лицо. Думаю, этот короткий дайджест поможет в этом.
Желаю Всем Радостных мыслей, быстрых клиентов из YouTube, увеличения трафика.
Валерий Жарков, продвижение в YouTube
Link Capacity Estimation in Wireless Software Defined NetworksFarzaneh Pakzad
Farzaneh Pakzad, Marius Portmanny and Jared Hayward
School of ITEE, The University of Queensland, Brisbane, Australia
Email: farzaneh.pakzad@uq.net.au, marius@ieee.org, jared.hayward@uqconnect.edu.au
25th International Telecommunication Networks and Applications Conference
November 18-20, 2015 UNSW, Sydney, Australia
DOI: 10.1109/ATNAC.2015.7366814
SDN is a new approach to manage networks with a centralised, global view and control of the network, and a more fine grained and flexible approach to routing and forwarding of
data packets. This has shown to achieve significantly increased network efficiency in a range of wired networks. SDN also has a great potential for wireless networks. One of the unique challenges of applying the SDN approach to wireless networks, in contrast to wired networks, is the dynamic nature of wireless links and the uncertainty about their capacity. In order to be able to do optimal routing and traffic engineering with SDN in a wireless network, it is critical to know the capacity of the available wireless links. This paper presents a link capacity estimation mechanism that can be implemented on any OpenFlow SDN controller. For this, we adapted the well-known technique of packet pair/train probing, and developed a method that allows the correction of estimation errors induced by cross traffic. We have implemented a prototype for the Ryu SDN controller, and our emulation-based experimental results show a promising accuracy of our proposed approach.
Financial statement analysis is the process of reviewing and evaluating a company's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. Financial statements record financial data; however, this information must be evaluated through financial statement analysis to become more useful to investors, shareholders, managers and other interested parties.
Learn to analyse the financial statement of the company, get a deep understanding of balance sheet, cashflow statement and other financial elements. This course will give you a deep view of various financial ratios.
https://quest.finology.in/courses/financial-statement-analysis
Financial Statements :Nature, uses and limitations. Analysis and interpretations – meaning, procedure, objectives, and importance. Comparative statement, Common Size Statements and Trend Analysis - practical problems. Comparative financial statements are prepared by arranging financial data of two or more financial years in two side by side column.
Any financial statement that reports and comparison of data of two or more consecutive accounting periods are known as comparative financial statements.
Income statement or profit and loss account.
Тролли, интернет-тролли, или тролли в интернете, появляются всякий раз на вебинарах, в чатах, в группах, отвлекают внимание аудитории, и по-моему, "отсасывают"
энергию. Однако, тролли зарабатывают в интернете!Приходят они от недобросовестной конкуренции.Предлагаю дружно ставить им заслон. Как? Врага надо знать в лицо. Думаю, этот короткий дайджест поможет в этом.
Желаю Всем Радостных мыслей, быстрых клиентов из YouTube, увеличения трафика.
Валерий Жарков, продвижение в YouTube
Link Capacity Estimation in Wireless Software Defined NetworksFarzaneh Pakzad
Farzaneh Pakzad, Marius Portmanny and Jared Hayward
School of ITEE, The University of Queensland, Brisbane, Australia
Email: farzaneh.pakzad@uq.net.au, marius@ieee.org, jared.hayward@uqconnect.edu.au
25th International Telecommunication Networks and Applications Conference
November 18-20, 2015 UNSW, Sydney, Australia
DOI: 10.1109/ATNAC.2015.7366814
SDN is a new approach to manage networks with a centralised, global view and control of the network, and a more fine grained and flexible approach to routing and forwarding of
data packets. This has shown to achieve significantly increased network efficiency in a range of wired networks. SDN also has a great potential for wireless networks. One of the unique challenges of applying the SDN approach to wireless networks, in contrast to wired networks, is the dynamic nature of wireless links and the uncertainty about their capacity. In order to be able to do optimal routing and traffic engineering with SDN in a wireless network, it is critical to know the capacity of the available wireless links. This paper presents a link capacity estimation mechanism that can be implemented on any OpenFlow SDN controller. For this, we adapted the well-known technique of packet pair/train probing, and developed a method that allows the correction of estimation errors induced by cross traffic. We have implemented a prototype for the Ryu SDN controller, and our emulation-based experimental results show a promising accuracy of our proposed approach.
Module 2 - BackgroundPrinciples of AccountingConsider that acc.docxroushhsiu
Module 2 - Background
Principles of Accounting
Consider that accounting terms are not always obvious in their meanings. If you are learning terminology or need to clarify a vocabulary item, a good reference for accounting terms is:
New York Society of Certified Public Accountants (2017) Accounting Terminology Guide - Over 1,000 Accounting and Finance Terms. Retrieved from: http://www.nysscpa.org/professional-resources/accounting-terminology-guide#sthash.UMS3kGjf.dpbs
For a glossary of general business terms:
Berry, T. (n.d.) Business terms glossary. BPlans. Retrieved from http://articles.bplans.com/business-term-glossary/
The Annual Report
The annual report is the way a firm summarizes its performance over the past year and where it sets a vision for the future. Publicly held companies (traded on the stock exchange) must prepare annual reports, and annual reports are usually public documents. Investors and the general public use annual reports as sources of information about the financial health of a company. We will be learning about reading annual reports to learn general accounting principles in the context of learning about a company and the industry in which it operates. Although we will not discuss all sections of an annual report, we will touch on the sections that have the most relevance to providing the HRM professional with the most helpful insights into the operations of the firm.
Front matter
This is largely text material that sets the stage for the quantitative data that follows.
The Opening letter to the Shareholders
The opening letter is generally the first section of the annual report and is a statement by the chairman of the board. The letter sets the stage for how the firm’s management wants you to view the report and the previous year’s performance, and so in this sense sets the “strategic intent” of the report. A careful reading of the letter can give context to the numbers that follow by giving you clues of what to look for in terms of goals met – or problems that prevented goal attainment. The firm may be on the verge of explosive growth, or a meltdown.
Sales and Marketing
This section covers the company’s product/service line. Typically, it also contains descriptions of key departments or groups and the work they do. By reading this section, you can deduce what products or services are most important to the firm and which divisions are seen as most critical to its success. This section can also give you clues as to what the future may hold.
The Auditor’s Letter
You might be tempted to skip this section, because it probably seems superfluous (like the terms and conditions acknowledgment on software updates. You know you don’t read those!). However, you should know that by law, a publicly traded firm needs to be independently audited every year. This is to protect the investor, and the auditors will state whether or not the data the company presents is accurate and if they have sufficient controls in place to prevent frau ...
Meaning of Financial statements class 11
Financial statement is the last step or end product of the accounting process. Financial statements mean such documents or statements in which the related financial information is described. Mainly two details are included under financial statements: (1) Income Statement, (2) Balance Sheet.
In the word of Jon N Myer. “The financial statement summarises the accounts of the business concerns and the income statement reflects the activities of a given period of time.” Financial statements can be prepared quarterly, half-yearly or annually
In the case of a sole proprietorship, the following are included in the financial statements:
1. Trading Account — It shows the gross profit or gross loss of a business enterprise for a particular period.
2. Profit and Loss Account — It shows the net profit or net loss of the business activities of the business enterprise for the accounting period.
3. Balance sheet — The balance sheet shows the financial position of the business (i.e. assets and liability) shows.
Thus these details are also called the final accounts of the business.
The following are included in the financial statements of the company
(1) Statement of Profit-Loss or Profit-Loss Account (Profit & Loss Statement or Profit & Loss Account) It is also called Income Statement.
(2) Balance Sheet and if required
(3) Cash Flow Statement, if required, with supporting comments.
What are the four 4 major financial statements.pdfsarikabangimatam
Financial statements summarize a company's business activities, financial performance, financial position, and cash flows through a series of written reports. All reports should be structured to convey relevant data in an easily digestible manner. Specifically, a cliff note on the financial performance of the Business Accountants. These reports typically provide a snapshot of a specific period of time and typically represent activity over a specific month, year, or specific time period. These financial statements are critical to understanding your business and performance.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
What are the 3 types of financial statements.pdfsarikabangimatam
Financial statements demonstrate the value of operations and show that tax laws and other requirements are being complied with. Document and communicate the company's financial position and growth over time. By being compliant and generating regular financial reports, Business Accountant leaders and managers can spot unique opportunities, proactively mitigate risks, and efficiently prioritize projects to achieve larger goals.
FINANCIAL STATEMENT ANALYSIS - BASICS OF BALANCE SHEET AND PROFIT AND LOSS AC...ShreyaGangakhedkar
: Financial statements are plain statements based on historical records, facts and figures. They are uncompromising in their objectives, nature and truthfulness. They reflect a judicious combination of recorded facts, accounting principles, concepts and conventions, personal judgments and sometimes estimates.
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)Financial Poise
A balance sheet provides a snapshot of a company’s assets, liabilities, and equity. It is one of several major financial statements used to manage a business, and is a critical due diligence item used by lenders and investors in deciding whether to provide capital to a business. This webinar explains the basics of understanding a balance sheet and puts it in context by also touching on the other key financial statements.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/how-to-read-a-balance-sheet-and-why-you-care-2021/
Statement Analysis (LO3) You are evaluating your companys recent opera.docxgentomega
Statement Analysis (LO3)
You are evaluating your company’s recent operating performance and are trying to decide on the
relative weights you should put on the income statement, the balance sheet, and the statement of cash
flows. Discuss the information each of these statements provides and its role in evaluating operating
performance.
Solution
Answer:
The four basic financial statements are:
1. The balance sheet reports a firm’s assets, liabilities, and equity at a particular point in time.
Assets = Liabilities + Owners Equity, or A=L+OE
2.Income statement: The income statement (also known as the profit and loss statement or P&L) tells you both the earnings and profitability of a business. The P&L is always for a specific period of time, such as a month, a quarter or a year.
The format of the income statement has been determined by a series of accounting pronouncements; some of these are decades old, others released in the past few years. Like the balance sheet, the income statement is broken into several parts:
3. Statement of Cash Flows shows the firm’s cash flows over a given period of time. This statement reports the amounts of cash that the firm generated and distributed during a particular time period. The bottom line on the statement of cash flowsthe difference between cash sources and usesequals the change in cash on the firm’s balance sheet from the previous year’s cash account balance.
4.The statement of retained earnings provides additional details about changes in retained earnings during a reporting period. This financial statement reconciles net income earned during a given period and any cash dividends paid within that period on one side with the change in retained earnings between the beginning and ending of the period on the other side.
.
Statement Analysis (LO3) You are evaluating your companys recent opera.docxrennaknapp
Statement Analysis (LO3)
You are evaluating your company’s recent operating performance and are trying to decide on the
relative weights you should put on the income statement, the balance sheet, and the statement of cash
flows. Discuss the information each of these statements provides and its role in evaluating operating
performance.
Solution
Answer:
The four basic financial statements are:
1. The balance sheet reports a firm’s assets, liabilities, and equity at a particular point in time.
Assets = Liabilities + Owners Equity, or A=L+OE
2.Income statement: The income statement (also known as the profit and loss statement or P&L) tells you both the earnings and profitability of a business. The P&L is always for a specific period of time, such as a month, a quarter or a year.
The format of the income statement has been determined by a series of accounting pronouncements; some of these are decades old, others released in the past few years. Like the balance sheet, the income statement is broken into several parts:
3. Statement of Cash Flows shows the firm’s cash flows over a given period of time. This statement reports the amounts of cash that the firm generated and distributed during a particular time period. The bottom line on the statement of cash flowsthe difference between cash sources and usesequals the change in cash on the firm’s balance sheet from the previous year’s cash account balance.
4.The statement of retained earnings provides additional details about changes in retained earnings during a reporting period. This financial statement reconciles net income earned during a given period and any cash dividends paid within that period on one side with the change in retained earnings between the beginning and ending of the period on the other side.
.
Overview of Financial Statements(I need help explaining the follow.pdfakopticals
Overview of Financial Statements
(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone
could help me comprehend the concepts I would greatly appreciate it!!)
Describe and interpret the balance sheet, income statement, and statement of stockholder’s equity
Describe the relationship between current assets and current liabilities
Describe the difference between interest-bearing and non-interest-bearing liabilities
Explain the components of change on a statement of stockholder’s equity
Solution
Answer 1:
Balance Sheet:
Balance sheet is a financial statement that summarizes a company\'s assets, liabilities and
shareholders\' equity at a specific point in time. It is a Position Statement which give investors an
idea as to what the company owns and owes as well as the amount invested by shareholders. The
balance sheet adheres to the following formula: Assets = Liabilities + Shareholders\' Equity
Interpreting a Balance Sheet
The balance sheet is a snapshot, representing the state of a company\'s finances at a moment in
time. By itself, it cannot give a sense of the trends that are playing out over a longer period. For
this reason, the balance sheet should be compared with those of previous periods. A number of
ratios can be derived from the balance sheet, helping investors get a sense of how healthy a
company is. These include the debt-to-equity ratio and the acid-test ratio, along with many
others.
Income Statement:
An income statement also known as the \"profit and loss statement\" or \"statement of revenue
and expense\" is a financial statement that measures a company\'s financial performance over a
specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities. It
also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal
quarter or year.
Interpreting Income Statement
The income statement is divided into two parts: the operating and non-operating sections. The
portion of the income statement that deals with operating items is interesting to investors and
analysts alike because this section discloses information about revenues and expenses that are a
direct result of the regular business operations. The non-operating items section discloses
revenue and expense information about activities that are not tied directly to a company\'s
regular operations.
Stateent of Stockholders\' equity
Stockholders\' equity is the money attributable to a business\' owners, often referred to as
shareholders. It is also known as \"net assets,\" since it is equivalent to the total assets of a
company minus its liabilities, that is, the debt it owes to non-shareholders. The statement of
shareholders\' equity details the changes within the equity section of the balance sheet over a
designated period of time. In other words, the statement of stockholder\'s equity is a b.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Home assignment II on Spectroscopy 2024 Answers.pdf
07 eng104-bai 3-v1.0
1. FINANCIAL STATEMENTS
31
Unit 3: Financial statements
UNIT OBJECTIVES - MỤC TIÊU
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)
• Provide students with the language and knowledge related to main types of financial
statements.
Cung cấp cho sinh viên vốn ngôn ngữ và kiến thức liên quan đến các loại báo cáo tài chính
cơ bản.
• Provide students with the language of describing a graph.
Cung cấp cho sinh viên ngôn ngữ dùng để mô tả biểu đồ.
• At the end of this unit, students will be able to tell and write about main types of financial
statements, the main characters of each type and the importance of studying them.
Sau khi kết thúc bài học này, sinh viên có thể nói và viết về các loại báo cáo tài chính cơ bản,
những đặc điểm của từng loại. và tầm quan trọng của việc nghiên cứu các báo cáo tài chính.
In this unit, we will learn the language and knowledge
related to main types of financial statements and their main
characteristics.
Trong bài học này chúng ta sẽ học về những kiến thức ngôn
ngữ và kế toán liên quan đến các loại báo cáo tài chính cơ
bản và các đặc điểm chính của từng loại báo cáo tài chính.
v1.0
2. 32
Unit 3: Financial statements
Match the words or expressions in column A with their definitions in column B.
The suggested time to do this exercise is 10 minutes.
Column A Column B
1 Profit and loss account A A description of the ways a new business hopes
to make money, showing possible income and
expenditure
2 Balance sheet B Financial statement which shows a company’s
financial condition (amount of debits and credits) on
the last day of an accounting period
3 Share certificate C The net profit or net income line on a profit and loss
account or income statement
4 Capital expenditure D Items of value which are not easily changed into
cash but which the business needs
5 Bottom line E Cash and other liquid assets in excess of current
liabilities; the ease with which an asset can be spent
or sold
6 Business plan F Financial statement which shows the profit or loss
made by a company during the accounting period
7 Liquidity G Adocument which represents a part of the total stock
value of a company and which shows who owns it
8 Dividend H A share in the annual profits of a limited company,
paid to shareholders
9 Fixed assets I Those whose value can only be quantified or turned
into cash with difficulty (e.g. copyrights, trade
marks)
10 Intangible assets J Major spending on large items necessary for the
business, such as property or equipment
v1.0
3. 33
Unit 3: Financial statements
Text A: Read text A below and do exercise 2.1. The suggested time for reading
the text and completing the exercise is 30 minutes
FINANCIAL STATEMENTS
Financial statements
I
f you can read a nutrition
label or a baseball box
score, you can learn to read
basic financial statements. If
you can follow a recipe or
apply for a loan, you can learn
basic accounting. The basics
aren’t difficult and they aren’t
science.
There are four main financial
statements. They are: (1) balance
sheets; (2) income statements;
(3) cash flow statements; and
(4) statements of shareholders’
equity. Balance sheets show
what a company owns and
what it owes at a fixed point in
time. Income statements show
how much money a company
made and spent over a period
of time. Cash flow statements
show the exchange of money
between a company and the
outside world also over a
period of time. The fourth
financial statement, called
a “statement of shareholders’
equity,” shows changes in the
interests of the company’s
shareholders over time.
The followings will look
into details of the first three
financial statements.
Balance Sheets
Abalance sheet provides
detailed information about
a company’s assets, liabilities
and shareholders’ equity.
Assets are things that a com-
pany owns that have value.
This typically means they can
either be sold or used by the
company to make products or
provide services that can be
sold. Assets include physical
property, such as plants, trucks,
equipment and inventory. It
also includes things that can’t
be touched but nevertheless
exist and have value, such as
trademarks and patents. And
cash itself is an asset. So are
investments a company makes.
Liabilities are amounts of
money that a company owes to
others. This can include all
kinds of obligations, like
money borrowed from a bank
to launch a new product, rent
for use of a building, money
owed to suppliers for materials,
payroll a company owes to
its employees, environmental
cleanup costs, or taxes owed to
the government. Liabilities also
include obligations to provide
goods or services to customers
in the future.
Shareholders’ equity is some-
times called capital or net
worth. It’s the money that
would be left if a company sold
all of its assets and paid off all
of its liabilities.
This leftover money belongs to
the shareholders, or the owners,
of the company.
A company’s balance sheet is
set up like the basic accounting
equation. On the left side of the
balance sheet, companies list
their assets. On the right side,
they list their liabilities and
shareholders’ equity. Some-
times balance sheets show
assets at the top, followed by
liabilities, with shareholders’
equity at the bottom.
A balance sheet shows a snap-
shot of a company’s assets,
liabilities and shareholders’
equity at the end of the report-
ing period. It does not show the
flows into and out of the
accounts during the period.
v1.0
4. 34
Unit 3: Financial statements
Income Statements
A
n income statement is a
report that shows how
much revenue a company
earned over a specific time
period (usually for a year or
some portion of a year).
An income statement also
shows the costs and expenses
associated with earning that
revenue. The literal “bottom
line” of the statement usually
shows the company’s net
earnings or losses. This tells
you how much the company
earned or lost over the period.
Income statements also report
earnings per share (or “EPS”).
This calculation tells you how
much money shareholders
would receive if the company
decided to distribute all of the
net earnings for the period.
(Companies almost never dis-
tribute all of their earnings.
Usually they reinvest them in
the business.)
To understand how income
statements are set up, think of
them as a set of stairs. You start
at the top with the total amount
of sales made during the
accounting period. Then you
go down, one step at a time.
At each step, you make a
deduction for certain costs
or other operating expenses
associated with earning the
revenue. At the bottom of the
stairs, after deducting all of the
expenses, you learn how much
the company actually earned or
lost during the accounting
period. People often call this
“the bottom line.”
Cash Flow Statements
C
ash flow statements report
a company’s inflows and
outflows of cash. This is im-
portant because a company
needs to have enough cash on
hand to pay its expenses and
purchase assets. While an in-
come statement can tell you
whether a company made a
profit, a cash flow statement
can tell you whether the com-
pany generated cash.
A cash flow statement shows
changes over time rather than
absolute dollar amounts at a
point in time. It uses and re-
orders the information from a
company’s balance sheet and
income statement.
The bottom line of the cash
flow statement shows the net
increase or decrease in cash for
the period. Generally, cash
flow statements are divided
into three main parts. Each part
reviews the cash flow from one
of three types of activities: (1)
operating activities analyzes a
company’s cash flow from net
income or losses; (2) investing
activities shows the cash flow
from all investing activities,
which generally include pur-
chases or sales of long-term
assets; and (3) financing activ-
ities statement shows the
cash flow from all financing
activities.
Although this article discusses
each financial statement sepa-
rately, keep in mind that they
are all related. The changes in
assets and liabilities that you
see on the balance sheet are
also reflected in the revenues
and expenses that you see on
the income statement, which
result in the company’s gains or
losses. Cash flows provide
more information about cash
assets listed on a balance
sheet and are related, but not
equivalent, to net income shown
on the income statement. And
so on. No financial statement
tells the complete story. But
combined, they provide very
powerful information for
investors. And information is
the investor’s best tool when it
comes to investing wisely.
Source: Text A: From Beginners' Guide to Financial Statements, US Securities and Exchange Commission,
http://www.sec.gov/investor/pubs/begfinstmtguide.htm
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5. 35
Unit 3: Financial statements
According to text A, which of the following sentences are true (T) or false (F)
In which kind of financial statements can you find the information about the
followings? Put them in the correct box
assets expenses inflows of cash
liabilities outflows of cash revenue cost
shareholders’ equity investing activities ESP
Below you will find answers to five different questions. Read the text again and
try to supply the missing questions
Example: What are the four main financial statements?
They are balance sheets, income statements, cash flow statements, and
statements of shareholders’equity.
1. ………………………………………………………………………………?
They can either sell or use them to make products or provide services for profit.
2.1
2.2
2.3
Questions T/F
1. Financial statements show financial information of a company from the
establishment to the present
2. Assets includes visible and invisible valuable things that a company owns.
3. Liabilities are amount of money that a company owns from others.
4. A balance sheet gives an overview of accounting equation.
5. Looking at the income statement, investors can estimate how much money
they might receive
6. The income statements are set up from the bottom to the top.
7. A cash flow statement shows how the company generates cash.
8. A cash flow statement is set up separately from the balance sheet and the
income statement.
9. A cash flow statement often analyzes the cash flow from three angles.
10. The financial statement, balance sheet and cash flow statement have no
relationship with each other.
Balance sheet Income statement Cash flow statement
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6. 2. ………………………………………………………………………………?
Trademarks are intangible assets.
3. ………………………………………………………………………………?
It shows information about a company’s assets, liabilities and shareholders’ equity at the
end of the reporting period.
4. ………………………………………………………………………………?
The “bottom line”.
5. ………………………………………………………………………………?
To know whether it has enough cash on hand to pay its expenses and purchase asset.
Text B: Read text B and do exercices 2.4 and 2.5 below. The suggested time for
reading the text and completing the exercise is 30 minutes
THE INS AND OUTS OF CASH FLOW STATEMENTS
U
nderstanding your cash flow statement is key to
tracking your business's financial health.
Cash is what keeps your business functioning.You obviously
need profit, but equally as critical is your cash flow.
It's important to know the financial health of your
business, which is why you need to understand the
purposes of your different financial statements. Your
traditional financial statements include a balance sheet,
profit and loss statement, and cash flow statement. What
does the cash flow statement tell you that the others don't?
There's a difference between profitability and cash flow. You may be profitable and still have
a negative cash flow, which is a difficult concept to understand for most business owners.
Why? There are things that take cash out of the business that don't classify as expenses and
therefore don't appear on your profit and loss statement. These include:
• Payment of loan principal • Payment of credit card principal • Owner's draws
These transactions take cash out of the business and therefore show up on your cash flow
statement, but not on your profit and loss statement. When you borrow money from a lender
or credit card vendor, you don't count it as income. Therefore, when you pay it back, you
don't count it as an expense. The interest or finance charges you incur on borrowing that
money are an expense and will appear as an expense and use of cash. Similarly, when you
invest money in your own business as an owner's investment, it's not counted as income.
So when you take money out as an owner's draw, it doesn't count as an expense. Owner's
transactions affect your equity, not your revenue or expense accounts.
When looking at a cash flow statement, you have three main breakdowns that show where
cash is coming from and going to:
• Operations • Investing • Financing
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Unit 3: Financial statements
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7. Operating activities include your day-to-day operations.
Increases and decreases in receivables and payables are
accounted for on your cash flow statement, as are other
activities from operating your business and selling your
products and services. The operating section is where your
main cash flow should be generated. Long-term business
health comes from having a good net profit and positive
cash flow from your operating activities.
Investing activities include the purchase and sale of your
long-term fixed assets, such as property, plant and equipment.
Financing activities include the borrowing and repayment of long-term liabilities.
Understanding what your cash flow statement is telling you about your business is critical.
All three of your main financial statements - balance sheet, profit and loss statement,
and cash flow statement - relay a different view of your business, and each is critical to the
overall health of your business.
Source: From The Ins and Outs of Cash Flow Statements, By Pam Newman, May 15, 2007 http://entrepreneur.com
Match the column A with column B to make meaningful statements
Fill in the blanks with the following words
assets and debts business plans expenses in the middle
movement on the left on the right
records revenue whether or not
Financial statements are ___(1)_____ that provide an indication of an individual’s,
organization’s, or business’ financial status. There are three basic types of financial
statements: balance sheet, income statement, and cash-flow statement. Typically, financial
statements are used in relation to business endeavors.
Balance sheet are used to provide insight into a company’s ____(2)____ at a particular
point in time. Information about the company’s shareholder equity is included as well.
Typically, a company lists its assets ____(3)____ side of the balance sheet and its debts
37
Unit 3: Financial statements
2.4
2.5
1 Although investors are making profit A but they are not classified as
expenses.
2 There are some transactions that take cash
out of the business,
B nor is it counted as expense when
paid back.
3 Money borrowed from a lender is not
considered income,
C and each is important to the
overall health of the business.
4 Interest paid for loans is counted as
expense,
D they may still have a negative cash
flow.
5 All the three main financial statements
give different angles of the business,
E and it will appear as an expense
and use of cash.
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8. 38
Unit 3: Financial statements
and liabilities____(4)____. Sometimes, however, a balance sheet has assets listed at the top,
debts ___(5)_____, and shareholders’ equity at the bottom.
Income statement present information concerning the __(6)______ earned by a company
in a specified time period. Income statements also show the company’s __(7)______ in
attaining the income and shareholder earnings per share. At the bottom of the income
statement, a total of the amount earned or lost is included. Often, income statements provide
a record of revenue over a year’s time.
Cash-flow statements provide a look at the ___(8)_____ of cash in and out of a com-
pany. These financial statements include information from operating, investing, and
financing activities. The cash-flow statement can be important in determining ___(9)_____
a company has enough cash to pay its bills, handle expenses, and acquire assets. At the
bottom of a cash-flow statement, the net cash increase or decrease can be found.
The average individual does not typically have a use for financial statements. However,
sole proprietors may use them in the same manner as other businesses. High-net-worth
individuals may also use them for obtaining loans, participating in investment deals, and de-
veloping financial, tax, and ____(10)____. In some cases, personal financial statements may
be used when running for a government office.
Listening 1
Listen to a lecture about the Financial statements TWICE and decide if the
statements below are TRUE (T) or FALSE (F)
Listening 2
Listen to a lecture ONCE again and fill ONE word into each blank below
Now, let’s move on to the income statement. Income statement present (1) _________
concerning the (2) _________ earned by a company in a (3) _________ time
period. Income statement also show the company’s (4) _________ in attaining the income and
shareholder (5) _________ per share. At the bottom of the income statement, a total of
3.1
3.2
Questions T/F
1. The users of financial statements are quite various.
2. In order to use financial statements, users must know everything about
accounting.
3. Financial statements are classified into four main types.
4. The balance sheet shows assets and liabilities of a company.
5. In a typical balance sheet, assets are listed on the right, and liabilities on
the left.
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9. 39
Unit 3: Financial statements
the amount (6) _________ or lost is included. Often, income statements provide a record of
revenue over a year’s time.
Ok, right. And next is the cash flow statement. Cash-flow statement provide the
(7) _______ of cash in and out of a company. These financial statements include information
from (8) _________, investing, and financing activities. The cash-flow statement can be
important in determining whether or not a company has enough cash to pay its bills, handle
(9) _________, and acquire assets. At the (10) _________ of a cash-flow statement, the net
cash increase or decrease can be found.
And finally, I will give you the overview of the last
basic type of financial statement. Shareholders’ equity show
(11) _________ in a company's or organization’s retained
earnings over a specific period of time. These statements
show the beginning and final balance of retained earnings,
as well as any adjustments to the (12) _________ that occur
during the reporting period. This information is sometimes
included as part of the balance sheet, or it may be (13)
_________ with an income statement. However, it is
frequently provided as a completely separate statement.
The average individual does not typically have a use for financial statements. However,
sole proprietors may use them in the same manner as other businesses. High-net-worth
individuals may also use them for the purpose of obtaining loans, participating in (14)
_________ deals, and developing financial, tax, and business plans. In some cases, personal
financial statements may be used when running for a (15) ______ office.
Select the correct choice to complete each sentence. The suggested time
for completing the exercise is 5 minutes
1. The income received by someone who lends money is called _____.
a. dividends b. interest c. loan
2. Last year we issued bonus shares and ______ $2 million.
a. raised b. rose c. arose
3. Assets are what you _____, liabilities are what you _____.
a. owe – own b. own – owe c. own - owl
4. A preference share receives a dividend _____ the other classes of share.
a. before b. when c. after
5. ESP is a company’s distributable profit divided by the number of _____.
a. shareholders b. dividends c. shares
4.1
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Unit 3: Financial statements
4.2
Fill in each gap with ONE word from the word list below. The suggested time for
doing this exercise is 5 minutes
balance sheet earning per share payroll cash flow statement
profit and loss account accounting period business plan dividend
1. A ............................... shows a company’s financial condition at the end of an accounting
period.
2. You can know how much the profit or loss of a company during a given period by looking
at the ...........................
3. A......................... reports a company’s inflows and outflows of cash.
4. The ............................ is caculated by dividing a company’s distributable profit by the num-
ber of shares.
5. The payments to a company’s employees are listed in a........................
6. The period of time reflected in financial statements, usually either the calendar year or a
quarter is called an ................................
7. Before setting up a company, the entrepreneur is expected to make a .................... which
shows the company’s possible income and expenditure.
8.All shareholders look forward to a high ................... as a return of their investment in shares.
Based on the information in the two texts above, answer the following questions
with your own words
1. What does a balance sheet provide?
……...............................................................………….
2. What does an income statement show?
……...............................................................………….
3. What are reported in a cash flow statement? Why?
……...............................................................………….
4. How do the financial statements relate to each other?
……...............................................................………….
Case study
Foward Investments (FI) has headquarter in Singapore.
It is run by a group of rich people who invest money in
companies. It is willing to take risks by buying shares
of start-up or small companies, but also puts money into
larger companies which have good prospects for growth.
5.1
5.1
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11. 41
Unit 3: Financial statements
At present, it has $10 million to spend and it has chosen three companies as potential
investments.
1. TECHNOPRINT
Technoprint is a manufacture of office equipment, based in Warsaw, Poland. Its main
products are inkjet and laser printers.
Present share price: $4.14 High (last year): $5.42 Low (last year): $3.59
2. UNIBRAND
Unibrand is a fashion retailer based in Amsterdam selling a variety of international brands.
Present share price: $5.72 High (last year): $8.58 Low (last year): $3.88
3. ONLINE FASHIONS
OLF is based on its website www.OLF.com. Its target audience is fashion-concious
women aged between 30 and 45 who want to keep up with the lastest trends in clothing
and accessories.
Present share price: $5.73 High (last year): $8.96 Low (last year): $2.71
And here are the comments of the three companies’ CEOs to investors.
Turnover
($ million)
Pre-tax profit
($ million)
Earning per
share (cents)
Dividend per
share (cents)
Last year 90.8 10.9 51 5.7
2 years ago 88.3 9.9 42 3.9
3 years ago 69.4 4.8 24 0.6
Turnover for the first 6 months of this year: $64.5 million
Turnover
($ million)
Pre-tax profit
($ million)
Earning per
share (cents)
Dividend per
share (cents)
Last year 370 52.7 19.5 2.2
2 years ago 208 30.1 12.9 1.8
3 years ago 283 27.86 11.14 1.65
Turnover for the first 6 months of this year: $ 204 million
Turnover
($ million)
Pre-tax profit
($ million)
Earning per
share (cents)
Dividend per
share (cents)
Last year 19.3 2.1 0.38 nil
2 years ago 9.1 -2.561 3.8 nil
3 years ago 4.9 -2.862 -5.6 nil
Turnover for the first 6 months of this year: $ 204 million
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Unit 3: Financial statements
It’s been another excellent year for our inkjet sales. They increased
fourteen percent worldwide, even though prices generally for inkjets
have fallen because of competition. Our sales of cartridges increased
by over twelve percent. Our sales of laser printers remained steady.
Our new laser printer has great potential. We expect it to dominate the
market as it has several unique features. We will continue to
reduce costs by sourcing components from low cost countries.
Technoprint
I am delighted to report another outstanding performance. Visits to
our website have increased to 82,000 daily. We now have over
400,000 regular users. We are launching a multimedia advertising
campaign to promote our new ranges of jewellery and travel
accessories. We expect to increase our sales target by at least fifty
percent and become the leading online designer clothing company.
Olf
We plan to increase sales by at least ten percent this year. We have
excellent sales opportunities in South America and Asia. We are
opening twenty new sales offices in those areas and increasing our
marketing effort. We have already launched a new perfume and we
expect it to be very successful.
Unibrand
You are a financial executive of FI. Study all the statistics in the
reports above and make a short presentation to your Director about
which company/ companies FI should invest in and/or what
proportion of $10 million FI will invest in each company.
Task
Compare your decisions with your partner(s).
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13. 43
Unit 3: Financial statements
6.1 Describing a Graph
1. Overview of a graph
A graph is a diagram, usually a line or curve, which shows
how two or more sets of numbers or measurements are
related.
The names of the axes on a graph are the vertical axis and
the horizontal axis. The vertical axis is sometimes called the
y axis, and the horizontal axis is sometimes called the x axis.
There are some types of lines used to present information on a graph.
_________________: solid line
……………………….: dotted line
- - - - - - - - - - - - - - - -: broken line
2. Language of writing
Here are some useful expressions for you to describe the graph
Expressing movement: verbs and nouns
Verbs (past tense)
Rose (to)
increased to
went up to
climbed to
boomed
fell (to)
declined (to)
decreased (to)
decreased to zero
dipped (to)
dropped (to)
went down (to)
reduced (to)
Nouns
a rise
an increase
growth
an upward trend
a boom (a dramatic rise)
a fall
a decline
a decrease
a drop
a slump (a dramatic fall)
a reduction
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14. * stood at (use this phrase to focus on a particular point, before we mention the movement,
for example: In the first year, unemployment stood at...)
Describing the speed of change
44
Unit 3: Financial statements
Describing the movement
dramatic
dramatically
huge
steep
steeply
considerable
considerably
marked
markedly
slight
slighty
minimal
minimally
Adjectives and adverbs
sharp
sharply
enormous
enormously
substantial
substantially
significant
significantly
moderate
moderately
small
Adjective
rapid
quick
swift
sudden
steady
gradual
slow
Adverbs
rapidly
quickly
swiftly
suddenly
steadily
gradually
slowly
Verbs (past tense)
levelled out (at)
did not change
remained stable (at)
remained steady (at)
stayed (at)
stayed constant (at)
maintained the same level
fluctuated (around)
peaked (at)
stood (at)*
Nouns
a levelling out
no change
a fluctuation
reached a peak (of)
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15. 45
Writing Practice
Write a report for a university lecturer describing the information in the graph
below. The suggested time for completing the exercise is 40 minutes
PROFITS OF AFC FROM 1990 TO 2005
Unit: billion dollars
6.2
Unit 3: Financial statements
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16. 46
Unit 3: Financial statements
English temps Vietnamese equivalents
A
- Accounting period
B
- Balance sheet
C
- Cash flow statement
- Cleanup cost
E
- Equation
- Earnings per share
F
- Financial statement
I
- Income statement
- Intangble asset
P
- Physical property
- Payroll
S
- Shareholders’ equity
- Kỳ kế toán
- Bảng cân đối kế toán
- Báo cáo lưu chuyển tiền tệ
- Chi phí thanh lý
- Phương trình, công thức
- Lãi trên mỗi cổ phần
- Báo cáo tài chính
- Báo cáo thu nhập
- Tài sản vô hình
- Tài sản hữu hình
- Bảng lương, tổng quỹ lương
- Vốn chủ sở hữu
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