Текст: THE FINANCIAL STATEMENTS AND THE ACCOUNTING PERIOD
Most people go to a doctor once a year to get a checkup to make sure everything is all right with their health. Similarly, companies are interested in their financial health. Where does the revenue of the company come from? Where does the company spend its money? How much profit it is making? Where is its cash coming from, and where is it going to?
Companies give answers to such questions in five documents, called financial statements: the balance sheet, income statement, statement of changes in shareholders equity, statement of cash flows and footnotes.
The balance sheet presents a snapshot of the resources of the company and claims against those resources at a specific point of time.
The income statement shows the profitability of a company over a specified period of time. A companyꞌs profit or net income is equal to its revenues and gains minus its expenses and losses.
The statement of changes in shareholdersꞌ equity analyzes the changes from year to year in the shareholdersꞌ equity.
The statement of cash flows reports the net cash (inflows minus outflows) from the three principal business activities-operating, investing and financing.
The footnotes provide more detailed information on the balance sheet and income statement.
These financial statements present the accounting information in formal reports that tell interested groups, such as managers, creditors, potential investors and government agencies, how the business is doing. These reports are prepared from accounting information obtained from the various business transactions.
Thus, transactions involving assets, liabilities and capital become the data used in the preparation of the financial statements.
Financial statements are prepared at least once a year. This is known as the accounting period. An accounting period may follow the calendar, in which case it begins on January 1 and ends on December 31 of the same year. This business then has a calendar year accounting period. Any business that has an accounting period consisting of 12 months other than a calendar year is generally known as a fiscal-year accounting.
Organizations may prepare financial statements for periods of time that are less that the accounting period; such statements are generally known as interim statements. An interim statement is prepared for a period of time other than a fiscal or calendar year. Examples of interim statements are statements prepared for 6-month, 3-month, or even monthly periods. Regardless of the periods of time covered by the individual financial statements, the kinds of information presented by the various statements do not change.
Сами задания
Ex.1 Выразите согласие или несогласие.
1) Companies are not interested in financial analysis.
2) The principal components of the financial statements are the balance sheet, income statement, statement of changes in shareholders equity, statement of cash flows and footnotes.
3) The income statement reports on the companyꞌs performance during the year.
4) The statement of changes in shareholdersꞌ equity reflects the activity in the equity section of the balance sheet.
5) The statement of cash flows does not report on the movement of cash by the company.
6) Financial statements are prepared on a regular basis.
7) Accounting periods may be different.
8) Interim statements may cover various time periods.
9) All the financial statements regardless of the period have the same kind of information.
10) The financial statements do not present detailed information on cash flows.
Ex.2 Заполните пропуски в предложениях словами, подходящими по смыслу: information, funding, companies, financial, profitable, gains, periods, sheet, statements, equity, documents.
1) Most … want to make sure that they are financially healthy.
2) Answers are found in five … .
3) The balance … gives an idea of the companyꞌs resources and sources of … at a certain point of time.
4) The income statement gives an idea how … the company is.
5) The statement of changes in shareholders … gives an analysis of the changes in the shareholders equity.
6) The statement of cash flows reports the … from the 3 principle business activities – operating, investing and financing.
7) … statements are prepared on a regular basis.
8) Accounting … periods may be different.
9) Interim … may cover various time periods.
10) All the financial statements regardless of the period have the same kind of … .
Объяснение:
1)I can't call my brother to play football now. He's studying. - Alright, we'll play without him.
2)This student is a good boy. He studies much and respects the teachers. They're proud him.
3)Whom did you see yesterday in the square?
4)When you give the present to him, what will he say? I think he won't forgive you yet.
5)I can't ask my father now. He hasn't come yet.
6)My brother has already woken up and had some jogging in the yard. Come and see him from the window! He wakes u[ early even in summer, when there is no school. He's a real sportsman!
7)Cut it out! You haven't let the cat out yet! You told him yesterday, didn't you?
8)I'm sorry, no cinema today. I really can't. I have to go with my parents to the restaurant. It's mt father birthday.
9)The train leaves every day at 10.26 sharp. If you come one minute too late, you will miss. By the way, when will you get up tomorrow?
10)Can't you see I'm so busy with me baby? I'll come when I finish with him. In 10 minutes, at most.
11)I really can't do the shopping today. I don't fell well. Will you do it for me? - Of course mum, I will go to the shop, don't worry.
12)It's eleven o'clock, and you still aren't sleeping! Where do you think you'll be? This is not a holiday hotel. Get yourself a job, do something, or I wouldn't cook for you anymore, and I wouldn't give you money for your entertainments!
1.What time do the shops open in Holland?
2. He usually plays football on the weekend.
3. How many years do kangarooms live? Up to 15 years.
4. Penguins have got wings but they can't fly.
5. How many legs has the tiger got?
6. She was born the 2nd August, 1991.
7. Do you usually watch TV in the evening?
8. He always has lunch at 2 o'clock.
9. He never wakes up early on Sundays.
10. He doesn't eat meet. he hates it.
11. How much does a sea lion weigh?
12. What does he do? He is a student.
13. Jane likes cats but she doesn't like dogs.
14. He likes reading, but he doesn't like fishing.
15. The plane arrives at a quarter to seven
16. Do you like your job?
17. She likes Sunday because she goes to the disco.
18. How old are you? I am thirty-nine.
19. What do you do in your free time?