In accounting, it is always asumed

In accounting, it is always asumed that a business is a “going concern” i.e. that it will continue endefinitely 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 shareholders at their original purchase price, minus accumulated depreciation charges. In times of inflation, this understates the value of appreciating assets such as (and, but overstates profits as it does not record the replaycement cost of plant or revenue). The value of a business’s assets under historical cost accounting- purchase price minus liabilities- 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 relates 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 speccifies that turnover must begiven certain financial information. Companies generally include three financial statements in their annual reports.
The profit and loss account (GB) or in come statement (US) shows assets and expenditure. It usually gives figures for total sales or depreciation and costs and debtors. The first figures 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 usualyy 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, gennerally the last day of the financial year. It lists the company’s assets , its creditor, and shareholders’ (stockholder’s) funds. A business’s assets include stock as it is assumed that these will be paid. Liabilities include overheads, as these will have to be paid. Negative items in 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 + Owner’s (or shareholders’) Equity. This can be rewriten 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 obove their nomial 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. Source of funds include trading profits depreciation provisions , sales of assets, borrowing, and the issuing of shares.
Applications if funds include purchase of fixed or financial assets, payments of dividends, repayment of loans, and-in a bad year trading losses.
1. How many financial statements do companies include in their annual reports? What are they?
2. What does in come statement (US) shows?
3. What does the balance sheet show?
4. How do you understand the principle of double-entry bookkeeping?
5. What is the synonym of the source and application of funds satement?

a/ Turnover includes taxation, profits and dividends
b/ We can use the word net asset insteas of shareholders’ equity
c/ Limited companies can’t make a loss because assets are always equal shareholders’ equity
d/ A company’s shares are often worth more than its assets
e/ The two sides of a fund flow statement show trading profits and losses
f/ A consolidated account is a combination of profit and loss account and the balance sheet
g/ In the third paragraph the word the first and the second refer to turnover and overhead
h/ Net assets are generally higher thana compnay’s market capitalization

Kết quả (Việt) 1:

Trong kế toán, nó luôn luôn là một doanh nghiệp là một "mối quan tâm sẽ" tức là asumed rằng nó sẽ tiếp tục endefinitely trong tương lai, có nghĩa là giá trị thị trường hiện tại của tài sản cố định của nó là không thích hợp, chúng không phải là để bán. Do đó, Hệ thống kế toán phổ biến nhất là lịch sử chi phí kế toán, ghi lại các cổ đông của 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 đánh giá đúng như (và, nhưng overstates lợi nhuận vì nó không ghi lại chi phí replaycement nhà máy hoặc doanh thu). Giá trị của tài sản của doanh nghiệp một lịch sử chi phí kế toán-giá mua trừ trách nhiệm pháp lý - 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 chi phí có 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 speccifies doanh thu đó phải begiven thông tin tài chính nhất định. Công ty thường bao gồm ba báo cáo tài chính trong báo cáo hàng năm của họ.Lợi nhuận và mất tài khoản (GB) hoặc ở đến tuyên bố (Mỹ) cho thấy tài sản và chi tiêu. Nó thường mang lại cho các con số tổng doanh thu hoặc chi phí khấu hao và chi phí và người mắc nợ. Con số đầu tiên rõ ràng là có phải cao hơn so với lần thứ hai, tức là nên có một lợi nhuận. Một phần lợi nhuận đi đến chính phủ trong thuế, một phần là usualyy phân phối cho các cổ đông (cổ đông) như là một cổ tức và một phần được giữ lại của công ty.The balance sheet shows a company’s financial situation on a particular date, gennerally the last day of the financial year. It lists the company’s assets , its creditor, and shareholders’ (stockholder’s) funds. A business’s assets include stock as it is assumed that these will be paid. Liabilities include overheads, as these will have to be paid. Negative items in 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 + Owner’s (or shareholders’) Equity. This can be rewriten 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 obove their nomial 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. Source of funds include trading profits depreciation provisions , sales of assets, borrowing, and the issuing of shares.Applications if funds include purchase of fixed or financial assets, payments of dividends, repayment of loans, and-in a bad year trading losses.1. How many financial statements do companies include in their annual reports? What are they?2. What does in come statement (US) shows?3. What does the balance sheet show?4. How do you understand the principle of double-entry bookkeeping?5. What is the synonym of the source and application of funds satement?a/ Turnover includes taxation, profits and dividendsb/ We can use the word net asset insteas of shareholders’ equityc/ Limited companies can’t make a loss because assets are always equal shareholders’ equityd/ A company’s shares are often worth more than its assetse/ The two sides of a fund flow statement show trading profits and lossesf/ A consolidated account is a combination of profit and loss account and the balance sheetg/ In the third paragraph the word the first and the second refer to turnover and overheadh/ Net assets are generally higher thana compnay’s market capitalization