《会计学原理》课程教学课件（英文讲稿）Chapter 4 Accounting Cycle（Ⅲ）

Chapter4Accounting Cycle(Il)Preparing the Financial Statements from theAdjusted Trial BalanceClosing the AccountsClassification of Assets and LiabilitiesTwoAccountingRatios

Chapter 4 Accounting Cycle(Ⅲ)  Preparing the Financial Statements from the Adjusted Trial Balance  Closing the Accounts  Classification of Assets and Liabilities  Two Accounting Ratios

Preparing the FinancialStatements

Preparing the Financial Statements

The Financial StatementsThe financial statements are a pictureofthe company in financial terms.Each financial statement relates to a specificdate or covers aparticular peniod

Information Reported on theFinancial StatementsFinanciadStatementAnswerOuestionl.How well did theRevenuesIncomecompany perform-Expenses(oroperate)duringstatementNet income(Net bss)theperiod?Statement2.Whydid the comp any'sBeg retained earingsofretaimed earrings+Netincome(or-Netloss)retainedchange during theEnding retained earningsPeriod?earnings

Information Reported on theFinancial StatementsFinanciadStatementAnswerOuestionAssets3.Whatisthe company'sBalance=Liabilitiesfinancialposition at thesheet+ Ow ners' equityend of theperiod?4.How much cashdidStatementOperating cashflowsofthe company generate± Investing cash flowscash+Financing cash flowsand spend duringfhwsthe period?ncreaseordecreaseincash

The Income Statement:Measuringg Operating PerformanceThe income statement, statement ofoperations, or statement of earningsreports the company's revenues,expenses, and netincomeor net loss for the periodComprehensive income includes netincome from the income statementplus additional items which

INCOMESTATEMENTRevenuesare-Increasesinretained earningsfromdelivering goods or services to customersor clientsExpensesare- Decreases in retained earnings that resultfrom operations

INCOME STATEMENT  Revenues are – Increases in retained earnings from delivering goods or services to customers or clients  Expenses are – Decreases in retained earnings that result from operations

INCOMESTATEMENTExpensesincludeCost of goods sold (cost of sales). The cost of the goods that a company sold toitscustomersOperatingexpensesThe costs of operating the business

INCOME STATEMENT  Expenses include – Cost of goods sold (cost of sales)  The cost of the goods that a company sold to its customers – Operating expenses  The costs of operating the business

INCOMESTATEMENTOperatingexpenses-Advertising.The cost to promote the company's products-Depreciation.The expense of using company-ownedbuildings,equipment,andfurnitureOtheroperatingexpenses.The costs of salaries, utilities, rent, andsupplies-Interestexpense.Thecostofborrowedmoney

INCOME STATEMENT  Operating expenses – Advertising  The cost to promote the company’s products – Depreciation  The expense of using company-owned buildings, equipment, and furniture – Other operating expenses  The costs of salaries, utilities, rent, and supplies – Interest expense  The cost of borrowed money

BALANCESHEETThe balance sheet (statement of financiaposition) reports the company's assetsliabilities, and owners equity

BALANCE SHEET  The balance sheet (statement of financial position) reports the company’s assets, liabilities, and owners’ equity