中山大学：《基础会计学》英文版 Lesson 9-en

m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 9 Financial statements I ask team of FJADAW/EAMIL ACOJANAVA School of Business, Sun Yat-sen University

Lesson 9 Financial Statements Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University

Outlines C A General view of Financial statements ◆ Income statement ◆ Balance sheet Q Statement of owners'equity ◆ A Simple lllustration Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

2 Outlines ⧫A General View of Financial statements ⧫Income statement ⧫Balance sheet ⧫Statement of owners’ equity ⧫ A Simple Illustration

Opening Story Show me the money! Cuba Gooding Jr uttered an immortal line in the movie Jerry Maguire, "Show me the money! Well, that is what financial statements do. They show you the money. ◆ The questions are: n Do they show you where a company's money came from? o Do they show you where it went, and where it is now. o How accountants make all these ends satisfied? Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3

3 Opening Story Show me the money! Cuba Gooding Jr. uttered an immortal line in the movie Jerry Maguire, “Show me the money!” Well, that is what financial statements do. They show you the money. ⧫The questions are:  Do they show you where a company’s money came from?  Do they show you where it went, and where it is now.  How accountants make all these ends satisfied?

General view of financial statements GAAP Statement of Financial Position Balance Sheet). ◆ Income statement Statement of Cash Flows Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

4 General View of Financial statements: GAAP ⧫Statement of Financial Position (Balance Sheet). ⧫Income Statement. ⧫Statement of Cash Flows

General view of financial statements: Stock vs. Flow Q Stock/ resources and obligations at a point in time. d Balance sheet Q Flow/activity over a period of time: D ncome statement n Statement of cash flows Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5

5 General View of Financial statements: Stock vs. Flow ⧫Stock/ resources and obligations at a point in time:  Balance sheet. ⧫Flow/activity over a period of time:  Income statement.  Statement of cash flows

Financial Statement objectives Q Useful for investment decisionS.(All financial statements) Q Comprehensible.(All financial statements) about economic resources and claims on resources (Balance sheet). Q About financial performance during a period (Income Statement). Q About cash flows(Statement of Cash Flows e Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

6 Financial Statement Objectives ⧫ Useful for investment decisions. (All financial statements) ⧫ Comprehensible. (All financial statements) ⧫ About economic resources and claims on resources (Balance Sheet). ⧫ About financial performance during a period (Income Statement). ⧫ About cash flows (Statement of Cash Flows)

General view of financial statements: a Comparison Income Statement Beginning Statement of Ending Balance Balance Sheet Owners Equity Sheet Statement of Cash Flows ■■■■ ■■■■■■■■■■■■ Period of time Point in Point in time time Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7

7 General View of Financial statements: a Comparison Point in time Point in time Period of time Income Statement Statement of Owner’s Equity Statement of Cash Flows Beginning Balance Sheet Ending Balance Sheet

General view of financial statements: Brief Comments The financial statements are a picture of the company in financial terms. Each financial statement relates to a specific date or covers a particular period. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

8 General View of Financial statements: Brief Comments The financial statements are a picture of the company in financial terms. Each financial statement relates to a specific date or covers a particular period

Information disclosed on Financial statements Financial Question Answer Statement How well did the Revenues Income company perform Expenses statement (or operate) during Net income(Net loss) the period? 2. Why did the company's Beg, retained earnings Statement of retained earnings t Net income (or Net loss) Retained earnings change during the Ending retained earnings period? Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 9

9 Information Disclosed on Financial Statements Question Answer Financial Statement 1. How well did the company perform (or operate) during the period? Revenues – Expenses Net income (Net loss) Income statement 2. Why did the company’s retained earnings change during the period? Beg. retained earnings + Net income (or – Net loss) Ending retained earnings Statement of Retained earnings

Information disclosed on Financial Statements(cont) Financial Question Answer Statement 3. What is the companys Assets Balance financial position at the Liabilities sheet end of the period? t Owners equity 4. How much cash did Operating cash flows Statement the company generate 士 Investing cash flows and spend during 土 Financing cash flows cash the period? Increase or decrease in cash flows Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 10

10 Information Disclosed on Financial Statements (cont) 3. What is the company’s financial position at the end of the period? Assets = Liabilities + Owners’ equity Balance sheet Question Answer Financial Statement 4. How much cash did the company generate and spend during the period? Operating cash flows ± Investing cash flows ± Financing cash flows Increase or decrease in cash Statement of cash flows