财务报表分析（英文版）

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1、A.MeasuringBusinessIncomea.explainwhyfinancialstatementsarepreparedattheendoftheregularaccountingperiod.MajorFinancialStatements:·Thebalancesheet:providesa"snapshot"ofthefirm'sfinancialcondition.·Theincomestatement:reportsonthe"performance"ofthefirm.·Thestatementofcashflows:reportsthecashreceipt

2、sandcashoutflowsclassifiedaccordingtooperating,investmentandfinancingactivities.·Thestatementofstockholder'sequity:reportstheamountsandsourcesofchangesinequityfromtransactionswithowners.·Thefootnotesofthefinancialstatements:allowusestoimproveassessmentoftheamount,timinganduncertaintyoftheestimat

3、esreportedinthefinancialstatements.Themostaccuratewaytomeasuretheresultsofenterpriseactivitywouldbetomeasurethematthetimeoftheenterprise'seventualliquidation.Business,government,investors,andvariousotherusergroups,however,cannotwaitindefinitelyforsuchinformation.Ifaccountantsdidnotprovidefinanci

4、alinformationperiodically,someoneelsewould.Theperiodicityortimeperiodassumptionsimplyimpliesthattheeconomicactivitiesofanenterprisecanbedividedintoartificialtimeperiods.Thesetimeperiodsvary,butthemostcommonaremonthly,quarterly,andyearly.Theinformationmustbereliableandrelevant.Thisrequiresthatinf

5、ormationmustbeconsistentandcomparableovertimeandalsobeprovidedonatimelybasis.Theshorterthetimeperiod,themoredifficultitbecomestodeterminethepropernetincomefortheperiod.Amonth'sresultsareusuallylessreliablethanaquarter'sresults,andaquarter'sresultsarelikelytobelessreliablethanayear'sresults.Inves

6、torsdesireanddemandthatinformationbequicklyprocessedanddisseminated;yetthequickertheinformationisreleased,themoreitissubjecttoerror.Thisphenomenonprovidesaninterestingexampleofthetrade-offbetweenrelevanceandreliabilityinpreparingfinancialdata.·Inpractice,financialreportingisdoneattheendoftheacco

7、untingperiod.Accountingperiodscanbeanylengthintime.Firmstypicallyusetheyearastheprimaryaccountingperiod.The12-monthaccountingperiodisreferredtoasthefiscalyear.Firmsalsoreportforperiodslessthanayear(e.g.quarterly)onaninterimb