会计学英语电子版课件02.ppt

Chapter 2A Further Look at Financial Statements Identify the sections of a classified balance sheet. Identify and compute ratios for analyzing a company‘s profitability盈利能力. Explain the relationship between a retained earnings statement and a statement of stockholders equity. Identify and compute ratios for analyzing a company‘s liquidity流动性 and solvency偿债能力 using a balance sheet. Chapter 2A Further Look at Financial Statements Explain the meaning of generally accepted accounting principles.（GAAP) Discuss financial reporting concepts. Identify the Sections of a Classified Balance Sheet Helps users see if company has enough assets to pay debts Can determine the short-term and long-term claims on total assets Classified Balance Sheet Generally contains the following standard classifications: Current Assets Long-Term Investments Property, Plant, and Equipment Intangible Assets Current Liabilities Long-Term Liabilities Stockholders Equity Current Assets Assets that are expected to be converted to cash or used up within one year. Current assets are listed in order of liquidity. Examples: Cash Short-term investments Receivables Inventories Supplies Prepaid expenses Long-Term Investments Investments of stocks and bonds of other corporations which are normally held for many years. Investments in long-term assets such as land or buildings that are not currently being used in the company’s operations Property, Plant, and Equipment Assets with relatively long useful lives. Assets used in operating the business. Examples: land buildings machinery delivery equipment furniture and fixtures Depreciation is... Practice of allocating an asset’s full purchase price to a number of years instead of expensing full cost in year of purchase. Accumulated Depreciation... Shows the total amount of depreciation that the company has expensed thus far in the asset’s life. Assets That A Company Depreciates... Should be shown at cost less accumulated deprec