財務(wù)報表分析(英文版)

1、精品A. MeasuringBusinessIncomea. explainwhyfinancialstatementsarepreparedattheendoftheregularaccountingperiod.MajorFinancialStatements: Thebalancesheet:providesa"snapshot"ofthefirm'sfinancialcondition.,Theincomestatement:reportsonthe"performance"ofthefirm. Thestatementofcashflo

2、ws:reportsthecashreceiptsandcashoutflowsclassifiedaccordingtooperating,investmentandfinancingactivities. Thestatementofstockholder'sequity:reportstheamountsandsourcesofchangesinequityfromtransactionswithowners. Thefootnotesofthefinancialstatements:allowusestoimproveassessmentoftheamount,timingan

3、duncertaintyoftheestimatesreportedinthefinancialstatements.Themostaccuratewaytomeasuretheresultsofenterpriseactivitywouldbetomeasurethematthetimeoftheenterprise'seventualliquidation.Business,government,investors,andvariousotherusergroups,however,cannotwaitindefinitelyforsuchinformation.Ifaccount

4、antsdidnotprovidefinancialinformationperiodically,someoneelsewould.Theperiodicityortimeperiodassumptionsimplyimpliesthattheeconomicactivitiesofanenterprisecanbedividedintoartificialtimeperiods.Thesetimeperiodsvary,butthemostcommonaremonthly,quarterly,andyearly.Theinformationmustbereliableandrelevant

5、.Thisrequiresthatinformationmustbeconsistentandcomparableovertimeandalsobeprovidedonatimelybasis.Theshorterthetimeperiod,themoredifficultitbecomestodeterminethepropernetincomefortheperiod.Amonth'sresultsareusuallylessreliablethanaquarter'sresults,andaquarter'sresultsarelikelytobelessreli

6、ablethanayear'sresults.Investorsdesireanddemandthatinformationbequicklyprocessedanddisseminated;yetthequickertheinformationisreleased,themoreitissubjecttoerror.Thisphenomenonprovidesaninterestingexampleofthetrade-offbetweenrelevanceandreliabilityinpreparingfinancialdata. Inpractice,financialrepo

7、rtingisdoneattheendoftheaccountingperiod.Accountingperiodscanbeanylengthintime.Firmstypicallyusetheyearastheprimaryaccountingperiod.The12-monthaccountingperiodisreferredtoasthefiscalyear.Firmsalsoreportforperiodslessthanayear(e.g.quarterly)onaninterimbasis. Accountingperiodmustbeofequallength.Financ

8、ialstatementsarepreparedattheendoftheregularaccountingperiodtoallowcomparisonacrosstime.UserCommentsPostedbyJeanette2003-10-2514:15:45.sameperiod-allowcomparisionbasicassumptioninpreparingfinancialstatementsis-thefirmwillcontinueinoperation,-goingconcern,'assigningrevenue-expenses-baseonmatching

9、principlePostedbyGiGi2004-01-2906:25:01.rememberthatthereare4typesoffinancialstatementsb. explainwhytheaccountsmustbeadjustedattheendofeachperiod.Why?1. Mostexternaltransactionsarerecordedwhentheyoccur.Theemploymentofanaccrualsystemmeansthatnumerousadjustmentsarenecessarybeforefinancialstatementsare

10、preparedbecausecertainaccountsarenotaccuratelystated.2. Someexternaltransactionsmightnotevenseemliketransactionsandarerecognizedonlyattheendoftheaccountingperiod.Examplesincludeunrecordedrevenuesandcreditpurchase.3. Someeconomicactivitiesdonotoccurastheresultofexternaltransactions.Examplesincludedep

11、reciationandtheexpirationofprepaidexpenses.,Timing:Oftenatransactionaffectstherevenueorexpensesoftwoormoreaccountingperiods.Therelatedcashinfloworoutflowdoesnotalwayscoincidewiththeperiodinwhichtheserevenueorexpenseitemsarerecorded.Thus,theneedforadjustingentriesresultsfromtimingdifferencesbetweenth

12、ereceiptordisbursementofcashandtherecordingofrevenueorexpenses.Forexample,ifwehandletransactionsonacashbasis,onlycashtransactionsduringtheyeararerecorded.Consequently,ifacompany'semployeesarepaideverytwoweeksandtheendofanaccountingperiodoccursinthemiddleofthesetwoweeks,neitherliabilitynorexpense

13、hasbeenrecordedforthelastweek.Tobringtheaccountsuptodateforthepreparationoffinancialstatements,boththewageexpenseandthewageliabilityaccountsneedtobeincreased.Anecessarystepintheaccountingprocess,then,istheadjustmentofallaccountstoanaccrualbasisandtheirsubsequentpostingtothegeneralledger.Adjustingent

14、riesarethereforenecessarytoachieveapropermatchingofrevenuesandexpensesinthedeterminationofnetincomeforthecurrentperiodandtoachieveanaccuratestatementoftheassetsandequitiesexistingattheendoftheperiod.Adjustmentprinciples,Therevenuerecognitionprinciple4. ThematchingprincipleWhattoadjust?Eachadjustinge

15、ntryaffectsbotharealaccount(assets,liability,orowner'sequity)andanominalorincomestatementaccount(revenueorexpense).Thefourbasictypesofadjustingentriesare:5. deferredexpensesthatbenefitsmorethanoneperiod:forexample,prepaidexpenses(e.g.prepaidinsurance,rent)areexpensespaidinadvanceandrecordedasass

16、etsbeforetheyareusedorconsumed.Whentheseassetsareconsumed,expensesshouldberecognized:adebittoanexpenseaccountandacredittoanassetaccount.Anotherexampleisdepreciation.Thecostofalong-termassetisallocatedasanexpenseoveritsusefullife.Attheendofeachperioddepreciationexpenseisrecordedthroughanadjustingentr

17、y:adebittoadepreciationexpenseaccountandacredittoanaccumulateddepreciationaccount(acontraaccountusedtototalthepastdepreciationexpensesonspecificlong-termassets).6. accruedexpensesthatincurredbutnotyetpaidorrecorded:examplesareemployeesalariesandinterestonborrowedmoney.Attheendoftheaccountingperiod,t

18、heaccruedexpenseisrecordedthroughanadjustingentry:adebittoanexpenseaccount(i.e.SalariesExpense)andacredittoaliabilityaccount(i.e.SalariesPayable).7. accruedrevenuesthatearnedbutnotyetreceivedorrecorded:alsocalledunrecordedrevenues.Examplesincludeinterestrevenues,rentrevenues,etc.Suchrevenuesaccumula

19、tewiththepassingoftime,butthefirmmayhavenotreceivedthepaymentorbilledtheclient.Anadjustingentryshouldbe:adebittoanassetaccount(i.e.AccountsReceivable)andacredittoarevenueaccount(i.e.InterestRevenue).8. unearnedrevenuesthatarerevenuesreceivedincashbeforedeliveryofgoods/services:examplesaremagazinesub

20、scriptionfees,customerdepositsforservices.These"revenues"arenotearnedyetandthusshouldberecordedasliabilities.Anadjustingentryshouldbe:adebittoaliabilityaccount(i.e.UnearnedRevenue)andacredittoarevenueaccount(i.e.Revenue).UserCommentsPostedbyGiGi2004-01-2906:26:22.accrualsystem!definitionPo

21、stedbyGina2004-02-0322:17:33.accrualbasedaccountingrecognizestheimpactofabusinesseventasitoccurs,regardlessofwhethertransactionaffectedcashPostedbyGina2004-02-0322:20:20.RevenuePrinciple:basisforrecordingrevenues(ietellswhentorecordrevenueandtheamounts).MatchingPrinciple:basisforrecordingexpensis(ie

22、directiontoIDallexpensesduringtheperiod,measurethem,andmatchthemagainsttherevenuesearnedinthatperiod).c. explainwhytheaccrualbasisofaccountingproducesmoreusefulincomestatementsandbalancesheetsthanthecashbasis.Revenueissomethingearnedthroughthesaleofgoodsorservices.Notallcashreceiptsarerevenues;forex

23、ample,cashreceivedthroughaloanisnotrevenue.Expensesarethecostofgoodsorservicesusedtogeneraterevenues.Notallcashpaymentsareexpenses;forexample,cashdividendspaidtostockholdersarenotexpenses.Netincomeisthedifferencebetweenrevenuesandexpenses.Itisreportedontheincomestatement,andisthefocusinevaluatingafi

24、rm'sprofitability.Mostcompaniesusetheaccrualbasisaccounting,recognizingrevenuewhenitisearned(thegoodsaresoldortheservicesperformed)andrecognizingexpensesintheperiodincurred,withoutregardtothetimeofreceiptorpaymentofcash.Netincomeisrevenueearnedminusexpensesincurred.Underthestrictcashbasisaccount

25、ing,revenueisrecordedonlywhenthecashisreceivedandexpensesarerecordedonlywhenthecashispaid.Netincomeiscashrevenueminuscashexpenses.Thematchingprincipleisignoredhere,resultinginconformitywithgenerallyacceptedaccountingprinciples.Today'seconomyisconsiderablymorelubricatedbycreditthanbycash.Andtheac

26、crualbasis,notthecashbasis,recognizesallaspectsofthecreditphenomenon.Investors,creditors,andotherdecisionmakersseektimelyinformationaboutanenterprise'sfuturecashflows.Accrualbasisaccountingprovidesthisinformationbyreportingthecashinflowsandoutflowsassociatedwithearningsactivitiesassoonasthesecas

27、hflowscanbeestimatedwithanacceptabledegreeofcertainty.Receivablesandpayablesareforecastersoffuturecashinflowsandoutflows.Inotherwords,accrualbasisaccountingaidsinpredictingfuturecashflowsbyreportingtransactionsandothereventswithcashconsequencesatthetimethetransactionsandeventsoccur,ratherthanwhenthe

28、cashisreceivedandpaid.Accrualaccountinggenerallyprovidesabetterindicationofperformancethancashbasisofaccountingsinceitincreasesthecomparabilityofincomestatementsandbalancesheetsacrossperiods.B. FinancialReportingandAnalysisa.defineeachassetandliabilitycategoryonthebalancesheetandprepareaclassifiedba

29、lancesheet.Thinkofthebalancesheetasaphotoofthebusinessataspecificpointintime.Itpresentstheassets,liabilities,andtheequityownershipofabusinessentityasofaspecificdate. Assetsaretheeconomicresourcescontrolledbythefirm. Liabilitiesarethefinancialobligationsthatthefirmmustfulf川inthefuture.Liabilitiesaret

30、ypicallyfulfilledbypaymentofcash.Theyrepresentthesourceoffinancingprovidedtothefirmbythecreditors.EquityOwnershipistheowner'sinvestmentsandthetotalearningsretainedfromthecommencementofthefirm.Equityrepresentsthesourceoffinancingprovidedtothefirmbytheowners.Balancesheetaccountsareclassifiedsothat

31、similaritemsaregroupedtogethertoarriveatsignificantsubtotals.Furthermore,thematerialisarrangedsothatimportantrelationshipsareshown.Thetablebelowindicatesthegeneralformatofbalancesheetpresentation:感謝下載載Balance Sheet ClassificationsAssetsCurrent AssetsLong-term investmentsProperty, plan and equipmentI

32、ntangible assetsOther assetsLiabilitiesandOwner'sEquityCurrentliabilitiesLong-termdebtOwner'sequityCapitalstockAdditionalpaid-incapitalRetainedearningsCurrentAssets:Theyarecashandotherassetsexpectedtobeconvertedintocash,sold,orconsumedeitherinoneyearorintheoperatingcycle,whicheverislonger.Th

33、eoperatingcycleistheaveragetimebetweentheacquisitionofmaterialsandsuppliesandtherealizationofcashthroughsalesoftheproductforwhichthematerialsandsupplieswereacquired.Thecycleoperatesfromcashthroughinventory,production,andreceivablesbacktocash.Wherethereareseveraloperatingcycleswithinoneyear,theone-ye

34、arperiodisused.Iftheoperatingcycleismorethanoneyear,thelongerperiodisused.Currentassetsarepresentedinthebalancesheetinorderofliquidity.Thefivemajoritemsfoundinthecurrentassetsectionare:Cash:valuedatitsstatedvalue.Cashrestrictedforpurposeotherthanpaymentofcurrentobligationsorforuseincurrentoperations

35、shouldbeexcludedfromthecurrentassetsection.,Marketablesecurities:Alsoreferredtoasmarketablesecurities.Valuedatcostorlowerofcostandmarket. Accountsreceivables:amountsowedtothefirmbyitscustomersforgoodsandservicesdelivered.Valuedattheestimatedamountcollectible. Inventories:Productsthatwillbesoldinthen

36、ormalcourseofbusiness. Prepaidexpenses:theyareexpendituresalreadymadeforbenefits(usuallyservices)tobereceivedwithinoneyearortheoperatingcycle,whicheverislonger.Typicalexamplesareprepaidrent,advertising,taxes,insurancepolicy,andofficeoroperatingsupplies.Theyarereportedattheamountofun-expiredorunconsu

37、medcost.Long-TermInvestments:Oftenreferredtosimplyasinvestments,theyaretobeheldformanyyears,andarenotacquiredwiththeintentionofdisposingoftheminthenearfuture. Investmentsinsecuritiessuchasbonds,commonstock,orlongtermnotesthatmanagementdoesnotintendtosellwithinoneyear. Investmentsintangiblefixedasset

38、snotcurrentlyusedinoperations,suchaslandheldforspeculation. Investmentssetasideinspecialfundssuchasasinkingfund,pensionfund,orplantexpansionfund.Thecashsurrendervalueoflifeinsuranceisincludedhere. Investmentsinnon-consolidatedsubsidiariesoraffiliatedcompanies.Property,Plant,andEquipment:Theyareprope

39、rtiesofadurablenatureusedintheregularoperationsofthebusiness.Withtheexceptionofland,mostassetsareeitherdepreciable(suchasbuilding)orconsumable.IntangibleAssets:Theylackphysicalsubstanceandusuallyhaveahighdegreeofuncertaintyconcerningtheirfuturebenefits.Theyincludepatents,copyrights,franchises,goodwi

40、ll,trademarks,tradenames,secretprocesses,andorganizationcosts.Generally,alloftheseintangiblesarewrittenoff(amortized)toexpenseover5to40years.OtherAssets:Theyvarywidelyinpractice.Examplesincludedeferredcharges(long-termprepaidexpenses),non-currentreceivables,intangibleassets,assetsinspecialfunds,anda

41、dvancestosubsidiaries.CurrentLiabilities:Theyareobligationsthatarereasonablyexpectedtobeliquidatedeitherthroughtheuseofcurrentassetsorthecreationofothercurrentliabilitieswithinoneyearorwithintheoperatingcycle,whicheve門slonger.Theyarenotreportedinanyconsistentorder.Atypicalorderis:Notespayable,accoun

42、tspayable,accrueditems(e.g.accruedwarrantycosts,compensationandbenefits)incometaxespayable,currentmaturitiesoflong-termdebt,etc.Theexcessoftotalcurrentassetsovertotalcurrentliabilitiesisreferredtoasworkingcapital.Itrepresentsthenetamountofacompany'srelativelyliquidresources;thatis,itistheliquidb

43、uffer,ormarginofsafety,availabletomeetthefinancialdemandsoftheoperatingcycle.Long-TermLiabilitiesTheyareobligationsthatarenotreasonablyexpectedtobeliquidatedwithinthenormaloperatingcyclebut,instead,atsomedatebeyondthattime.Bondspayable,notespayable,deferredincometaxes,leaseobligations,andpensionobli

44、gationsarethemostcommonlong-termliabilities.Generallytheyareofthreetypes: Obligationsarisingfromspecificfinancingsituations,suchasissuanceofbonds,long-termleaseobligations,andlong-termnotespayable. Obligationsarisingfromtheordinaryoperationsoftheenterprisesuchaspensionobligationsanddeferredincometax

45、liabilities. Obligationsthataredependentupontheoccurrenceornonoccurrenceofoneormorefutureeventstoconfirmtheamountpayable,orthepayee,orthedatepayable,suchasserviceorproductwarrantiesandothercontingencies.Owner'sEquity:Thecomplexityofcapitalstockagreementsandthevariousrestrictionsonresidualequityi

46、mposedbystatecorporationlaws,liabilityagreements,andboardsofdirectorsmaketheowner'sequitysectiononeofthemostdifficultsectionstoprepareandunderstand.Thesectionisusuallydividedintothreeparts: Capitalstock:theparorstatedvalueofthesharesissued. Additionalpaid-incapital:theexcessofamountspaidinoverth

47、eparorstatedvalue. Retainedearnings:thecorporation'sundistributedearnings.b.defineeachcomponentofamulti-stepincomestatementandprepareamulti-stepincomestatement.Theincomestatementmeasuresthesuccessofbusinessoperationsforagivenperiodoftime.Asingle-stepincomestatementgroupsrevenuestogetherandexpens

48、estogether,withoutfurtherclassifyingeachofthegroups.Amulti-stepincomestatementmakesfurtherclassificationstoprovideadditionalimportantrevenueandexpensedata.Theseclassificationsmaketheincomestatementmoreinformativeanduseful.Itisrecommendedbecause: itrecognizesaseparationofoperatingtransactionsfromnono

49、peratingtransactions;,itmatchescostsandexpenseswithrelatedrevenues; ithighlightscertainintermediatecomponentsofincomethatareusedforthecomputationofratiosusedtoassesstheperformanceoftheenterprise.Components: Operatingsection:areportoftherevenuesandexpensesofthecompany'sprincipaloperations.oSaleso

50、rrevenuesection:asubsectionpresentingsales,discounts,allowances,returns,andotherrelatedinformation,andtoarriveatthenetamountofsalesrevenue.oCostofgoodssoldsection:asubsectionthatshowsthecostofgoodsthatweresoldtoproductthesales.oSellingexpense:asubsectionthatlistsexpensesresultingfromthecompany's

51、effortstomakesales.oAdministrativeorgeneralexpenses:asubsectionreportingexpensesofgeneraladministration. Non-operatingsection:areportofrevenuesandexpensesresultingfromsecondaryorauxiliaryactivitiesofthecompany.Inaddition,specialgainsandlossesthatareinfrequentorunusual,butnotboth,arenormallyreportedi

52、nthissection.Generallytheseitemsbreakdownintotwomainsubsections:oOtherrevenuesandgains:Alistoftherevenuesearnedorgainsincurred,generallynetofrelatedexpenses,fromnonoperatingtransactions.oOtherexpensesandlosses:Alistoftheexpensesorlossesincurred,generallynetofanyrelatedincomes,fromnonoperatingtransac

53、tions. Incometaxes:Ashortsectionreportingfederalandstatetaxesleviedonincomefromcontinuingoperations. Discontinuedoperations:materialgainsorlossesresultingfromthedispositionofasegmentofthebusiness.,Extraordinaryitems:UnusualANDinfrequentmaterialgainsandlosses. Cumulativeeffectofachangeinaccountingpri

54、nciple. Earningspershare.C.Short-TermLiquidAssetsa.describehowtochoosetheappropriateaccountingmethodforinvestmentsecuritiesandexplainhowfair(market)valuegainsandlossesonsuchinvestmentsarereported.Short-terminvestments,alsocalledmarketablesecurities,ordinarilyconsistofshort-termpaper(certificatesofde

55、posit,treasurybills,andcommercialpaper),marketabledebtsecurities(governmentandcorporatebonds),andmarketableequitysecurities(preferredandcommonstock)acquiredwithcashnotimmediatelyneededinoperations.Theymustbe:readilymarketable:canbesoldquiteeasily.,intendedtobeconvertedintocashasneededwithinoneyearor

56、theoperatingcycle,whicheverislonger.Securitiesthatareintendedtobeheldformorethanoneyeararecalledlong-terminvestments.Therearetwotypesofgainsandlosses: Realizedgainsandlosses:thedifferencebetweenthefairmarketvalueandthecostofthesecuritieswhentheyaresold. Unrealizedholdinggainsandlosses:thedifferenceb

57、etweenthefairmarketvalueandthecostofthesecuritieswhentheyarestillheldbythefirm.Thegainsandlossesareunrealizedbecausesecuritieshavenotbeensold.Ingeneral: Whensecuritiesarepurchased,theyarerecordedatcost.Thecostofthesecuritiesincludespurchasepriceandanybroker'sfeesorfeespaidtoacquiresecurities. In

58、terestanddividendsgenerallyarerecognizedasrevenuewhentheyarereceived. Whensecuritiesaresold,thecostiscomparedtothesalesprice,andthedifferenceisrecordedasagainoraloss. Attheendofeachaccountingperiod,thebalanceofthecontrollingaccountisadjustedtoreflectthecurrentmarketvalueofthesecuritiesowned.However,differentcategoriesofinvestmentsecuritieshavedifferenttreatmentonunrealizedholdinggainsandlosses. Held-to-maturitysecurities:Debtsecuritiesthatmanagementintendstoholdtotheirmaturitydate.Atyearend,theyarereportedatcostadjustedfortheeffectofinterest(debitthesecuritiesaccountandc