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:reportsthecashrecei

2、ptsandcashoutflowsclassifiedaccordingtooperating,investmentandfinancingactivities.·Thestatementofstockholder'sequity:reportstheamountsandsourcesofchangesinequityfromtransactionswithowners.·Thefootnotesofthefinancialstatements:allowusestoimproveassessmentoftheamount,timinganduncertaintyoftheest

3、imatesreportedinthefinancialstatements.Themostaccuratewaytomeasuretheresultsofenterpriseactivitywouldbetomeasurethematthetimeoftheenterprise'seventualliquidation.Business,government,investors,andvariousotherusergroups,however,cannotwaitindefinitelyforsuchinformation.Ifaccountantsdidnotprovidef

4、inancialinformationperiodically,someoneelsewould.Theperiodicityortimeperiodassumptionsimplyimpliesthattheeconomicactivitiesofanenterprisecanbedividedintoartificialtimeperiods.Thesetimeperiodsvary,butthemostcommonaremonthly,quarterly,andyearly.Theinformationmustbereliableandrelevant.Thisrequire

5、sthatinformationmustbeconsistentandcomparableovertimeandalsobeprovidedonatimelybasis.Theshorterthetimeperiod,themoredifficultitbecomestodeterminethepropernetincomefortheperiod.Amonth'sresultsareusuallylessreliablethanaquarter'sresults,andaquarter'sresultsarelikelytobelessreliablethanayear'sres

6、ults.Investorsdesireanddemandthatinformationbequicklyprocessedanddisseminated;yetthequickertheinformationisreleased,themoreitissubjecttoerror.Thisphenomenonprovidesaninterestingexampleofthetrade-offbetweenrelevanceandreliabilityinpreparingfinancialdata.·Inpractice,financialreportingisdoneatthe

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