会计学原理英文课件1.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Statement of Cash Flows Because revenues reported do not always equal cash collected. . . . . . and expenses reported do not always equal cash paid . . . net income is usually not equal to the change in cash for the period. 1. Name of entity 2. Title of statement 3. Specific period of time (Like the income statement, this statement covers a specified period of time.) 4. Unit of measure The Statement of Cash Flows reports the inflows and outflows of cash during the period in the categories of operating, investing, and financing. Cash flows directly related to earning income are shown in the operating section. Cash flows related to the acquisition or sale of productive assets are shown in the investing section. Cash flows from or to investors or creditors are shown in the financing section. The statement ends with a reconciliation of Cash. Relationship Among the Financial Statements Net income from the income statement increases ending retained earnings on the statement of retained earnings. Relationship Among the Financial Statements Ending retained earnings from the statement of retained earnings is one of the components of stockholders’ equity on the balance sheet. Relationship Among the Financial Statements The change in cash on the statement of cash flows added to the beginning of the year balance in cash equals the ending balance in cash on the balance sheet. Notes Notes provide supplemental information about the financial condition of a company. Three basic types of notes: Description of accounting rules applied. Presentation of additional detail about an item on the financial statements. Provide additional information about an item not on the financial statements. Price/Earnings Ratio Price/Earnings Ratio = Market Price (of the Company) Net Income This ratio is one method for estimating the value of a company. Learning