In accounting, it is always assumed

In accounting, it is always assumed that a business is a going concern, i.e. that it will continue indefinitely into the future, which means that the current market value of its fixed assets is irrelevant, as they are not for sale. Consequently, the most common accounting system is historical cost accounting, which records assets at their original purchase price, minus accumulated depreciation charges. In times of inflation, this understates the value of appreciating assets such as land, but overstates profits as it does not record the replacement cost of plant or stock (GB) or inventory (US). The value of a business's assets under historical cost accounting – purchase price minus depreciation - is known as its net book value. Countries with persistently high inflation often prefer to use current cost or replacement cost accounting, which values assets (and related expenses like depreciation) at the price that would have to be paid to replace them (or to buy a more modern equivalent) today.

Company law specifies that shareholders (GB) or stockholders (US) must be given certain financial information. Companies generally include three financial statements in their annual reports.

The profit and loss account (GB) or income statement (US) shows revenue or earnings or income and expenditure. It usually gives figures for total sales or turnover, and costs and overheads (GB) or overhead (US). The first figure should obviously be higher than the second, i.e. there should be a profit. Part of the profit goes to the government in taxation, part is usually distributed to shareholders (stockholders) as a dividend, and part is retained by the company.

The balance sheet shows a company's financial situation on a particular date, generally the last day of the financial year. It lists the company's assets, its liabilities, and shareholders' (stockholders') funds. A business's assets include debtors (GB) or accounts receivable (US) as it is assumed that these will be paid. Liabilities include creditors (GB) or accounts payable (US), as these will have to be paid. Negative items on financial statements, such as creditors, taxation, and dividends paid, are usually enclosed in brackets.

In accordance with the principle of double-entry bookkeeping (that all transactions are entered as a credit in one account and as a debit in another), the basic accounting equation is Assets = Liabilities + Owners' (or Shareholders') Equity. This can be rewritten as Assets - Liabilities = Owners' Equity or Net Assets. This includes share capital (money received from the issue of shares), share premium (GB) or paid-in surplus (US) (any money realized by selling shares at above their nominal value), and the company's reserves, including the year's retained profits. Shareholders' equity or net assets are generally less than a company’s market capitalization (the total value of its shares at any given moment, i.e. the number of shares times their market price), because net assets do not record items such as goodwill.

The third financial statement has various names, including the source and application of funds statement, and the statement of changes in financial-position. This shows the flow of cash in and out of the business between balance sheet dates. Sources of funds include trading profits, depreciation provisions, sales of assets, borrowing, and the issuing of shares.

Applications of funds include purchases of fixed or financial assets, payment of dividends, repayment of loans, and - in a bad year - trading losses.

Kết quả (Việt) 1:

Trong kế toán, nó luôn luôn giả định rằng một doanh nghiệp là mối quan tâm đi, tức là nó sẽ tiếp tục vô hạn định trong tương lai, có nghĩa là giá trị thị trường hiện tại của tài sản cố định của nó là không thích hợp, vì họ không bán. Do đó, Hệ thống kế toán phổ biến nhất là lịch sử chi phí kế toán, Hồ sơ tài sản của họ giá mua hàng ban đầu, trừ chi phí khấu hao tích lũy. Trong thời đại của lạm phát, điều này understates giá trị của tài sản như đất đánh giá đúng, nhưng overstates lợi nhuận như không ghi lại các chi phí thay thế thực vật hoặc các chứng khoán (GB) hoặc hàng tồn kho (chúng tôi). Giá trị của tài sản của doanh nghiệp theo lịch sử chi phí kế toán-giá bán trừ đi chi phí khấu hao - được gọi là cuốn sách giá trị ròng của nó. Quốc gia có lạm phát liên tục cao thường thích sử dụng chi phí hiện tại hay kế toán chi phí thay thế, mà giá trị tài sản (và các chi phí liên quan như chi phí khấu hao) ở mức giá đó sẽ phải được trả tiền để thay thế cho họ (hoặc để mua một tương đương hiện đại hơn) vào ngày hôm nay.Công ty luật chỉ định rằng cổ đông (GB) hoặc cổ đông (US) phải được cung cấp thông tin tài chính nhất định. Công ty thường bao gồm ba báo cáo tài chính trong báo cáo hàng năm của họ.The profit and loss account (GB) or income statement (US) shows revenue or earnings or income and expenditure. It usually gives figures for total sales or turnover, and costs and overheads (GB) or overhead (US). The first figure should obviously be higher than the second, i.e. there should be a profit. Part of the profit goes to the government in taxation, part is usually distributed to shareholders (stockholders) as a dividend, and part is retained by the company.The balance sheet shows a company's financial situation on a particular date, generally the last day of the financial year. It lists the company's assets, its liabilities, and shareholders' (stockholders') funds. A business's assets include debtors (GB) or accounts receivable (US) as it is assumed that these will be paid. Liabilities include creditors (GB) or accounts payable (US), as these will have to be paid. Negative items on financial statements, such as creditors, taxation, and dividends paid, are usually enclosed in brackets.In accordance with the principle of double-entry bookkeeping (that all transactions are entered as a credit in one account and as a debit in another), the basic accounting equation is Assets = Liabilities + Owners' (or Shareholders') Equity. This can be rewritten as Assets - Liabilities = Owners' Equity or Net Assets. This includes share capital (money received from the issue of shares), share premium (GB) or paid-in surplus (US) (any money realized by selling shares at above their nominal value), and the company's reserves, including the year's retained profits. Shareholders' equity or net assets are generally less than a company’s market capitalization (the total value of its shares at any given moment, i.e. the number of shares times their market price), because net assets do not record items such as goodwill.The third financial statement has various names, including the source and application of funds statement, and the statement of changes in financial-position. This shows the flow of cash in and out of the business between balance sheet dates. Sources of funds include trading profits, depreciation provisions, sales of assets, borrowing, and the issuing of shares.Applications of funds include purchases of fixed or financial assets, payment of dividends, repayment of loans, and - in a bad year - trading losses.