Lecture 4 Ch 7 Income Statement

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Income Statement

Income Statement:Reports a snapshot of a company’s business performance over a period of time. This statement indicates how much revenue (sales) is generated by a business, and also accounts for direct product costs, general expenses, Interest on Debt, Taxes, and other expense items. The purpose of this statement is to show the company’s level of profitability, which is equal to a company’s Revenue net of its expenses.Balance Sheet Statement:Reports a snapshot of a company’s outstanding balances in various accounts at a specific point in time. The purpose of this statement is to demonstrate a business’s financial heath at any given time, by enumerating it assets as well as the claims against them (liabilities and equity).Balance SheetThe Balance Sheet provides a snapshot of a company’s financial position at the end of a period (either quarterly or annually). The balance sheet lists company Assets, Liabilities, and Shareholders’ Equity as of a specific point in time. An important rule is that the Balance Sheet for a company must balance. In other words:BALANCE SHEET GOLDEN RULE: ASSETS = LIABILITIES + SHAREHOLDERS’ EQUITYThis may seem like an obvious statement, but in producing financial models it is easy to make an error wherein the balance sheet does not properly balance, which will lead to serious problems with financial projection. Always make sure your balance sheet balances!As demonstrated above, the difference between Assets and Liabilities isShareholders’Equity. In other words, the value of a company’s equity is equal to the value of its assets net of the outstanding obligations it has to other entities. This is, from an accounting (or “book”) perspective, what the value of a company’s shareholders positions “should be.” As we have seen, there are many reasons why a company’s equity will trade at a different valuation in the market than that derived from the Balance Sheet (usually, and hopefully, at a higher valuation than Book Value).ImportanceIncome statements report operating results, such as sales and expenses, and so allow investors to evaluate the company’s performance and consider how future cash flows might look. Most investors start by looking at recent income statements when analyzing investment potential. Income statements show profitability on three levels: gross profit, operating profit, and net income, and how profit is being driven (by driving sales, or reducing expenses, for example).Balance sheets present important information about the financial strength of the company. They allow investors to calculate days of Working Capital, which shows how easily a company can handle changesin revenue while staying afloat. Companies should have at least 30 days of Working Capital, and financially strong companies have more than 180 days. Balance sheets can also identify other trends, such as how the receivables cycle works, how net profits are being used, and how often equipment is replaced.RelationshipAccounting is a “double-entry” system; i.e., every accounting entry has two sides to it, a debit and a credit. For example, a sale recorded on an income statement will increase an asset (such as cash or accounts receivables) on the balance sheet, and an expense decreases an asset (e.g. cash) or increase a liability (e.g. debt). Sales revenue on an income statement will affect cash and accounts receivable, while cost of goods sold will affect inventory and accounts payable. An income statement for a specific time period can be used to "connect the dots" between the balance sheet at the beginning and end of the period. This video explains how:explain with suitable examples or illustrations the following accounting terms Capital and Revenue expendturedifference between capital and revenue expenditure where a capital expenditure results in an addition to an asset account whereas a revenue expenditure results in an addition to an expense account. Capital expenditures are payments for asset alterations, additions and replacements where revenue expenditures benefit a current period and are made for maintaining assets with routine repairs or replacment of a minor part. A capital expenditure will benefit two or more acounting periods through depreciation process and expenses for future accounting periods. A capital expenditure recorded as a revenue expenditure will cause an understatement of net income in that year. When expensing an item, it goes into the expense side of the income statement whereas capitilizing an item will be processed on the balance sheet.。

商务英语1000必备单词 Unit 18： Income Statements 收益表

商务英语1000必备单词 Unit 18： Income Statements 收益表学习英语中词汇是一个基本的入门，针对不同阶段的人群，需要学习词汇也是不同的，而在商务交往中对于词汇量有着更高的要求，而收益表是商务中的重点，代表着盈利的多少，那么关于商务交往中关于收益表都有必备的哪些词汇呢 ?以下是小编给大家整理的商务英语1000必备单词 Unit 18 Income Statements 收益表，希望可以帮到大家Unit 18 Income Statements第18单元收益表allowanceWe want a promotion allowance of 15% of our total annual payment to La Fountaine.折让我们想在每年支付给拉芳丹系列的费用里享有15%的促销折让。

beginning inventoryThere was no beginning inventory.期初存货没有期初存货。

cost of goods soldDifferent sectors have different calculations for their cost of goods sold.销货成本不同的产业对销货成本有不同的计算方式。

depreciationDepreciation of machinery cost the company a lot of money last year.折旧去年该公司因机器折旧花了不了钱。

distributionI think we need to find ways of upgrading our distribution network.配销我想我们必须想办法改进我们的配销网。

freightThe basic model is listed for $8500 plus $250 freight.运费基础售价为8500美元外加250美元运费。

会计英语Lesson 4

Exercises
Use the given information of pany, prepare an Income Statement for the current year ending Dec. 31. Sale 40,000 Rent expense 2,000 Cost of goods sold 15,000 Sales returns and allowances 2,000 Ad. Expense 3,000 Sales salaries expense 5,000 Insurance expense 500 Office salaries expense 8,500
例如accounts receivable（应收帐款）、 accounts payable （应付帐款）、notes receivable（应收票据）、notes payable （应付票据）。下面举出几个句子来操练一下这几个会计词汇：
Accounts and notes are typical example of current liabilities. A promissory note（本票） is regarded as notes for the payee and notes for the maker. Accounts are often classified as current assets.
Prepaid（预付的）这个词和前面的Pay 关系非常密切,实际上就是在pay 的过去分词paid 前加上一个前缀pre-，这个前缀表示“前、预先”之意，合起来就是 “预付的”。例如：
Assume that a business paid a $1200 premium on April 1 for one year’s insurance in advance. This represents an increase in one asset ( expense) and a decrease in another asset (cash).

Income Statement

会计英语
1
Section Income Statement
Part 1 Workplace Spoken English
1. Follow the Samples
A：What is the income statement? B：It is also sometimes referred to as profit and loss statement. The
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3. Why don’t some businesses select to use a fiscal year which ends December, 31?
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9. subtotal ['sʌbtəʊtl]
n.
10. significant [sɪg'nɪfɪkənt]
a.
11. allowance [ə'laʊəns] n.
12. retail ['riːteɪl]
v.
13. complex ['kɒmpleks] a.
一致，符合清淡的，不忙碌的减去，扣掉小计
重要的，有含义的销售折让零售复杂的
Section Income Statement
7
Part 2 Intensive Reading
Income Statement
New Words and Special Terms
14. raw [rɔː]
a.
15. material [mətɪrɪəl]
大概经营业绩经营成果

利润表INCOMESTATEMENT

利润表INCOMESTATEMENT利润表INCOME STATEMENT项目ITEMS产品销售收入Sales of products其中：出口产品销售收入Including：Export sales减：销售折扣与折让Less：Sales discount and allowances产品销售净额Net sales of products减：产品销售税金Less：Sales tax产品销售成本Cost of sales其中：出口产品销售成本Including：Cost of export sales产品销售毛利Gross profit on sales减：销售费用Less：Selling expenses管理费用General and administrative expenses财务费用Financial expenses其中：利息支出(减利息收入) Including：Interest expenses (minusinterest ihcome)汇兑损失(减汇兑收益)Exchange losses(minus exchange gains) 产品销售利润Profit on sales加：其他业务利润Add：profit from other operations营业利润Operating profit加：投资收益Add：Income on investment加：营业外收入Add：Non-operating income减：营业外支出Less：Non-operating expenses加：以前年度损益调整Add：adjustment of loss and gain for previous years 利润总额T otal profit减：所得税Less：Income tax净利润Net profit资产负债表BALANCE SHEET资产ASSETS流动资产：CURRENT ASSETS现金Cash on hand备用金Pretty cash银行存款Cash in banks有价证券Marketable receivable应收票据Notes receivable应收帐款Accounts receivable减：坏帐准备Less：allowance for bad debts预付货款Prepayments-supplies内部往来Inter-company accounts其他应收款Other receivables待摊费用Prepaid and deferred expenses存货Inventories减：存货变现损失准备：Less：allowance on inventory reduction to market已转未完工生产成本Transferred in production cost transforming一年内到期的长期投资Matured long time investments within a year流动资产合计Total current assets|长期投资：LONG TERM INVESTMENT长期投资Long term investments拨付所属资金Funds to burnchs一年以上的应收款项Accounts receivable over a year固定资产：FIXED ASSETS固定资产原价Fixed assets-cost减：累计折旧Less:amumulated depreciation固定资产净值Fixed assets-net value固定资产清理Disposal of fixed assets融资租入固定资产原价：Fixed assets-cost on financial lease减：融资租入固定资产折旧Less：amumulated depreciation融资租入固定资产净值：Fixed assets-net value on financial lease 在建工程：CONSTRUCTION WORK IN PROCESS 在建工程Construction work in process☆无形资产INTANGIBLE ASSETS场地使用权Right to the use of a site工业产权及专有技术Industrial property right anf patents其他无形资产Other intangibles无形资产合计Total intangible assets其它资产OTHER ASSETS开办费Organization espenses筹建期间汇兑损失Exchange losses during organization period 递延投资损失Deferred investment losses递延税款借项Debit side of deferred tax其他递延支出Other deferred expuditures待转销汇兑损益Prepaid and deferred exchange loss其他递延借款Debit side of other deferred其他资产合计Total other Assets资产总计TOTAL ASSETS负债及所有者权LIABILITIES AND CAPITAL流动负债：CURRENT LIABILITIES短期借款Short term loans应付票据Notes payable应付帐款Accounts payable内部往来Inter-company accounts预收货款Items received in advance-supplies应付工资Accured payroll应交税金Taxes payable应付股利Dividendes payable其他应付款Other payables预提费用Accrued expenses职工奖励及福利费用Bonus and welfare funds一年内到期的长期负债Matured long term liabilities within a year 其他流动负债Other current liabilities流动负债合计Total current liabilities长期负债：LONG TREM LIABILITIES长期借款long term loans应付公司债Bouds payable应公司债溢价（折价）Premium on bonds payable（discount）一年以上的应付款项Accounts payable over a year长期负债合计：T otal long term liabilities其他负债：OTHER LIABILITIES筹建期间汇兑收益Exchange gains during organization period 递延投资收益Deferred investment gains递延税款贷项Credit side of deferred tax其他递延贷项Credit side of other tax待转销汇兑收益Prepaid and deferred exchange profit其他负债合计Total other liabilities负债合计Total liabilities所有者权益Investor’s equity资本总额（货币名称及金额）Authorized capital(*___________)实收资本（外币金额期末数）Paid in capital(☆__________)其中Including中方投资（外币金额期末数）Chinese investments(☆__________)外方投资（外币金额期末数Foreign investments(☆__________)减：已归还投资Less: Returned investments资本公积Accumulation of capital公司拨入资金Funds from head office储备基金Reserve funds企业发展基金Expansion funds利润归还投资Investment returned with profit本年利润Current profit未分配利润Retained earnings货币换算差额Currency translation difference所有者权益合计T otal investor’s equity负债及所有者权益合计TOTAL LIABILITIES AND INVESTORS EQUITY附注：1.委托加工材料元; 2.受托代销商品元; 3.代管商品物资元;4.由企业负责的应收票据贴现元;5.租入固定资产元;6.本年支付的进口环节税金。

PPT07 Revenue and Expense Recognition and Income Statement Presentation

-Performance -Measurability -Collectability
Accounting English @2011
2
Revenue Recognition time

Revenue Recognition at Delivery Revenue Recognition before Delivery Revenue Recognition after Delivery
Accounting English @2011 7

Revenue Recognition for Service Sales

Four common methods:
-specific performance method -percentage-of-completion method -completed performance method -collection method
-consignment sales -returned goods -instalment sales
Accounting English @2011 3
Consignment Sales

Revenue recognition by the manufacturer should occur at the time of sale by the agent, not at the time of delivery of the consigned goods to the agent. Profit is affected only when the agent sells the goods on consignment.

Income_Statement(1)

– Cost of goods used in making the sale
Trading Section Cost of Sales and Gross Profit
Accruals Concept
• Expenses are resources used during the period and not the same as cash paid during the period • Expenses and revenues are matched by the period – Show revenue in 2011 in the P/L – Then show resources used in 2011 as expenses in the P/L • Cash may be – Prepaid in 2010 – Paid in 2011 or – Paid in arrears in 2012 (Accrued expenses) • Expenses are not the same as cash paid
• All impact on the level of reported profit
Role of income statements
• Measure financial performance • Shows how and where profits might be increased • Financial conxpenses in published accounts
• Cost of sales (opening stock + purchases – closing stock) • Distribution costs • Administrative expenses (salaries, training, telephone) • Finance expenses (interest charges)

中级财务会计(英文)课件Chapter 4 The Income Statement and Income Recognition

Revenues are inflows of assets of a company or settlement of its liabilities during a period from delivering or producing goods, rendering services, or other activities that are the company’s ongoing major or central operations.
4 The Income Statement and Income Recognition
I
ntermediate Accounting
中级会计学
Accounting School ·Zhongnan University of Economics & Law
Intermediate Accounting 4 The Income Statement and Income Recognition
Revenues Expenses Gains Losses
Intermediate Accounting 4 The Income Statement and Income Recognition
Elements of the Income Statement — Revenues
Ending net assets The corporation could pay Less: Additional investment $40,000 to stockholders Ending net assets out excluding investment and still be as well off at Less: Beginning net assets Total income for the year year-end. $90,000 0 $90,000 (50,000) $40,000

Income Statement (损益表)

Income Statement (损益表）Revenues (销售收入）-Cost of goods sold (COGS) （产品销售成本）= Gross Profit （毛利润）-Expenses （费用）= Earnings Before Tax （税前收益）-Tax （所得税）= Net Income （净收益）The purpose of firm is to earn income for investors through selling goods or providing services to customers. Income statement measures how muchincome is earned during a specific period, such as a year, a quarter, or a month.Outline of today’s lecture1. A typical income statement2.Definition of accounting period(会计期间）, Revenues, Expenses,Cost of Goods Sold, Earnings, and Net Income3.Cash accounting（收付实现制）and its inadequacies（不足）4.Accrual Accounting（权责发生制）and its strengths4.1 Revenue recognition, matching principle and expenserecognition（收入确认、配比原则和费用确认）4.2 Adjusting journal entries（调整会计分录）5.Expensing（费用化）versus capitalization （资产化）of expenditures6.Relations between income statement and balance sheet7.Time series and cross section analysis of income statement8.Earnings management examples9.P/E ratio（市盈率）and earnings-based market anomaliesCash AccountingRevenues: recognized at the time that cash is received Expenses: recognized at the time that cash is disbursedNote: Cash received from and disbursed （分发）to shareholders and creditors（债权人）is neither revenues nor expenses, and does not enter income statement under cash accountingAn example: A toy retailer starts business on November 1, 19x0, He pays two months rent on his store, $2,000, on that day, and also purchases and pay for $35,000 toys. However, he sells nothing in November. In December, he sells all the toys with a sales price of $40,000 and collects $5,000 in cashProblems with Cash Accounting1.Mismatch the cost of efforts (expenses) with theoutput of the efforts (revenues)2.Delay recognition of revenues3.Provide opportunities to manage earningsAccrual AccountingRevenue recognition: follow realization principle (实现原则）1) A firm has performed all, or most of, the services it expects to provide2) The firm has received cash or some other assets capable of reasonably precise measurement, such as account receivablesAccrual AccountingExpense recognition:a)When an asset is used directly to generate revenues, the usedasset becomes expense. E.g., sold books, the cost to purchase the sold books become COGS, a part of expenses.This is called matching principle（配比原则）of accounting. b)When an used asset is indirectly related to the current, and onlythe current, period revenues, we treat the used asset as expense.E.g., cash to pay for advertisement, salary for the CEO.c)When an asset is used to benefit both the current and the futureperiod, the benefit, nevertheless, not matter current or future,is hard to identify and measure, we treat the used asset as expense.E.g., cash used to pay research and development forpharmaceutical companies. This is conservative principle（稳健原则）of accounting.Adjusting Journal Entries Under Accrual Accounting Under accrual accounting, some journal entries are not explicitly related to a transaction. We makethese entries, adjusting journal entries, mostlikely at the end of an accounting period.There are four types of adjusting entries:1.Unearned revenue (客户预付款）2.Accrued Revenue（应计收入）3.Prepaid expense（预付费用）4.Accrued expense（应计费用）Unearned RevenueOn Sep. 1, 2002, although Guanghua received the cash, to it, the cash received is unearned revenue. That is,Guanghua has not provided you educational service yet.Guanghua’s journal entry:Dr. Cash $80,000Cr. Unearned Revenue (liability) $80,000On Dec. 31, 2002, after you have spent half a year at Guanghua to enjoy its superb service,Guanghua has earned one-fourth of the tuitions. Journal entry:Dr. Unearned Revenue $20,000Cr. Revenue $20,000Prepaid expenseOn Sep. 1, 2002, your account:Dr. Prepaid tuitions $80,000Cr. Cash $80,000On Dec. 31, 2002, youDr. Tuition expense $20,000Cr. Prepaid expense $20,000If you quit school on this day, you get $60,000 back from the school.The Final Stages of the Accounting Process (refer toa premier on accounting handout)On Dec. 31 of the year, the accountants finished all journal entries, posted to ledger (T-accounts), calculated thebalance （余额）of every ledger account, and did a trialbalance. Now she/he does adjusted journal entries, andthen posts to ledger again, and does an adjusted trialbalance.What she/he has in hands now is a list of accounts. Next:1)Prepare income statement2)Close income statement accounts to retained earningsaccount3)Prepare balance sheetQ.E.DExpensing vs. Capitalization of Expenditures1. A firm pays employeesalaries, we say the firmexpense employee salary 2.Expensed expenditures go toincome statement3.Expensed expenditures helpgenerate revenues in currentperiod4.If a firm expenses theexpenditure, currentearnings will be lower bythat amount 1. A firm buy a building, wesay the firm capitalize thebuilding as asset.2.Capitalized expenditures goto balance sheet3.Capitalized expenditureshelp generate revenues incurrent and future periods 4.If a firm capitalizes theexpenditure, currentearnings will not be loweredby that amountExpensing vs. Capitalization of ExpendituresBut life is not so simple and straightforward. Sometimes it is difficult to determine whether the expenditures benefitfuture periods, and if it benefits future periods, it isdifficult to determine which future period will benefit.Therefore, firms expense some expenditures that mayotherwise be capitalized. This is a conservative treatment of the expenditures by GAAP.1.Marketing expenditures2.Research and Development3.Stock optionsThe Worldcom scandalJune 26, 2002, Worldcom reports it overstated earnings by $3.8 billion in the past few years. It quickly asked forchapter 11 protectionWhat did they do? Capitalize expenditures that should have been expensed. That is, $3.8 billion should not be onbalance sheet, but go through income statement as expense. In 2001, the company reports earnings of 1.4 billion, which should have been a loss year.The relation between balance sheet and incomestatement1.Assets = Liabilities + Equity2.Equity = Contributed capital（股本）+ Retained Earnings(RE)3.Ending（期末余额）RE = Beginning （期初余额）RE + NetIncome –Dividends Income = Revenues –ExpensesA = L + Contributed capital + Beginning RE + (Revenues –Expenses) –DividendsTherefore, revenues increase assets and equityexpenses decreases assets and equityTime Series analysis of common-size incomestatementGrowth analysis of income statementA few items on I/S explained1.Cost of revenues = Cost of goods sold (COGS)2.Sales and Marketing3.Selling, general and administrative4.Product development5.Depreciation and amortization6.Operating income or income from operation7.Extraordinary item: unusual and infrequent Income9.Earnings per share-primary10.Earnings per share-diluted11.Earnings per share-end of year number of shares, or averagenumber of shares?12.Pro Forma earnings = As if earningsAOL 2000AOL 2000Earnings Management-WhyFor managers: earnings-based bonusFor shareholders: earnings-based bond covenant For the company:Better IPO price（新股上市发行价）Avoid government regulationAvoid paying employee high salariesEarnings Management-How Accelerate or delay revenues Accelerate or delay expensesTake one-time gains or charges: big bathEarnings management –Who gain, who lose? Enron caseWorldcom casePrice-to-earnings ratio –P/EP/E is a ready yardstick for valuationUse comparable firms’P/E to price IPO stocksP/E is a rough indicator of relative over-valuation or under-valuationAverage P/E ratio of all stocks on a market indicates the level of valuation of the marketCaveats（提醒）in using P/E in valuation1.Negative earnings can not be used in computingP/E2.Earnings contain transitory (临时的）items, or one-time items that drive P/E up or downtemporarily3.P/E ratio is meaningful only when earningscome from normal, repetitive operation4.In investing community, people use differentearnings to compute P/E, lag earnings, leadearnings, average earnings…Investing Motto “Financial Statement is like bikini, what it reveals is interesting, but what it conceals it vital.”Burton G. Malkiel <A random walk down wall strett>。

Lesson4(110907)

occurs (not at the time cash is received)
Revenue
▪ Revenue Types ▪ Rooms ▪ Food ▪ Beverage ▪ Miscellaes
▪ Production and rendering of goods and services resulting in: ▪ Outflow of assets ▪ Increase of liabilities
▪ Calculate the value of ending inventory and net cost of sales.
▪ Explain the various methods to calculate inventory value
▪ Discuss the concept of responsibility accounting.
Less:
Revenue Cost of Sales Payroll & Related Expenses Other Expenses . Department Profit
▪ Measures department manager’s effectiveness
Expenses
▪ Operating Expenses by departments ▪ Cost of Sales
-
Ending inventory
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Gross cost of sales (Cost of goods used)
+/- Transfers of inventory
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Lecture_4

Interview
Ensure the interviewer is impartial and fair in the actual interview process to have a standard question set for them to use (and with marks). A lot of weight is placed traditionally on the appearance of an interviewee but bear in mind what the person has to offer rather than their appearance
Women’s Changing Role
After World War II Women continued to contribute to ‘women’s work’: nursing, teaching, social works Move to greater occupation variety: architecture, accountancy (male dominant areas)
Job description: 1. major responsibilities 2. related duties under these headings 3. working conditions 4. equipment and materials used 5. contact with other people 6. performance standards
Recruitment
a process of filling a prospective vacant position with a competent and willing candidate an organizational behaviour influencing the number of applicants, their nature and their willingness to accept the job related to organizational development the very first contact between potential employee and the org.

商务英语词汇分类

商务英语词汇财务与会计：损益表beginning inventory :期初存货cost of goods sold :销货成本depreciation :n.折旧distribution :n.配销freight :n.运费gross margin :毛利income statement :损益表net income :净损益，净收入net sales :销货净额operating expense :营业费用sales revenue :销货收入商务英语词汇财务与会计：资产负债表accumulated depreciation :备抵折旧asset :n.资产balance sheet :资产负债表contributed capital :实缴股本fixed asset :固定资产liability :n.负债notes payable :应付票据prepaid expense :预付款项retained earnings :保留盈余stockholders' equity :股东权益商务英语词汇产业：品管batch :n.一批glitch :n.缺失inspection :n.检查leave out :遗漏QC history :品管记录QC procedure :品管流程quality standard :质量标准random sampling :随机抽样recall :v.回收reject :v.拒收；退回simulation test :模拟测试商务英语词汇产业：生产制造assembly line :装配线automated :a.自动化的breakthrough :n.突破capacity utilization :产能利用component :n.零件electronics :n.电子产品farm produce :农业产品global warming :全球暖化high-tech industry :高科技产业labor-intensive :a.劳力密集的manufacturing :n.制造mass production :大量制造offshoring :n.产业外移outsource :v.外包power failure :停电production capacity :产能production process :生产流程recycling :n.回收；再生semiconductor :n.半导体service industry :服务业waste disposal :废弃物处理商务英语词汇国际贸易：货运cash on delivery :货到付款delay :v.延迟free on board :船上交货ground delivery :海陆运输letter of credit :信用状lump sum :一次付清Net 30 :货到后三十日付款net weight :净重pallet :n.(装卸、搬运货物用的)货板rush order :紧急订单；急件shipment :n.货运物；货运商务英语词汇国际贸易：进出口customs duty :关税duty-free :a.免税的export :n.出口import ban :进口禁令import restriction :进口限制import substitution :进口替代non-tariff barrier :非关税壁垒quarantine :n.检疫；隔离quota :n.配额smuggling :n.走私商务英语词汇国际贸易：贸易barrier :n.障碍boycott :v.抵制dumping :n.倾销free trade :自由贸易Normal Trade Relations :正常贸易关系protectionism :n.保护主义trade agreement :贸易协议trade friction :贸易磨擦trade imbalance :贸易不均衡trade surplus :贸易出超trade talk :贸易会谈商务英语词汇国际贸易：外汇currency :n.货币，通货devalue :v.贬值downward :a.下降的，向下的exchange rate :汇率float :v.浮动fluctuation :n.变动，波动foreign exchange :外汇foreign exchange loss :汇兑损失in dollar terms :以美元换算intervention :n.干预；介入peg :n.连动；紧盯(某货币) purchasing power parity :购买力平价selling pressure :卖压volatile :a.不稳定的；易波动的商务英语词汇会议：会后consensus :n.(意见等的〉一致；共识decision :n.决定；裁决get down to business :开始办正事implement :v.实施；执行minutes :n.会议记录postpone :v.延期tie up loose ends :处理枝节问题unresolved :a.未解决的商务英语词汇会议：会前announce :v.宣布chairman :n.主席conference room :会议室document :n.文件equipment :n.设备location :n.地点meeting notice :会议通知participate :v.参加reschedule :v.重新安排商务英语词汇会议：会中brainstorm :v.脑力激荡clarify :v.澄清debate :n.辩论disagree :v.不同意elaborate :v.详述；详加说明finalize :v.完成；敲定fire away :尽管说；尽管问吧floor :n.发言权input :n.(建设性的)意见、评论interrupt :v.打断；插嘴motion :n.临时动议nominate :v.提名objective :n.目的pick someone’s brain :听取意见或建议point fingers :(轻蔑地)指责pros and cons :利弊得失reconvene :v.再召开；再召集resolution :n.(会议等的)决议summarize :v.摘要；扼要说明table :v.搁置unanimous :a.一致同意的；无异议的you’re up :该你了；轮到你了商务英语词汇简报：使用图表attention :n.注意compared to :与……相比erratic :a.不稳定的；无规律的figure :n.数字fluctuate :v.波动；震荡level out :持平make up :占了；凑足pick up :(销售等)开始好转、增加plateau :n.(上升后的)稳定水平(或时期) share :n.占有率sliver :n.薄片transparency :n.投影片商务英语词汇简报：作简报come down to :最重要的是conclude :v.作总结condition :v.影响；调整divide :v.分成；分开forecast :n.预测fruits of (one’s) labor :努力的成果goal :n.目标；目的handout :n.讲稿；讲义keep up the good work :好好继续保持make it big :大获成功overview :n.概观；大要reverse :v.反转；逆转revolutionary :a.革命性的running :adv.连续地selling point :卖点team up with :与……合作total sales :总销售额video :n.影片wrap up :完成；结束商务英语词汇经济：国际经济bailout :n.紧急援助creditor nation :债权国developed country :已开发国家emerging market :新兴市场European Union :欧盟G10 :十大工业国globalization :n.全球化IMF :国际货币基金sanction :n.制裁summit :n.高峰会World Bank :世界银行WTO :世贸组织商务英语词汇经济：国内经济budget bill :预算案budget deficit :预算赤字economic policy :经济政策economic reform :经济改革electricity :n.电力infrastructure :n.基础建设investment environment :投资环境monetary policy :货币政策real estate :房地产subsidy :n.补助，补贴unemployment rate :失业率商务英语词汇经济：经济趋势economic fluctuation :经济波动inflation :n.通货膨胀lagging indicator :落后指标optimistic :a.乐观的outlook :n.展望recession :n.景气衰退recovery :n.复苏stagnant :a.停滞的turnaround :n.(营业、经济等的)突然好转商务英语词汇经济：经济学用语bubble economy :泡沫经济current account :经常帐deficit :n.赤字；逆差domestic demand :国内需求economic growth :经济成长economic statistics :经济统计export-oriented economy :出口导向经济foreign exchange reserve :外汇存底GDP :n.国内生产毛额index :n.指数indicator :n.指标liberalization :n.自由化macroeconomics :n.总体经济学market economy :市场经济standard of living :生活水平undersupply :n.供给不足商务英语词汇客服：客户投诉break down :故障claim :n.(保险)理赔；费用申请complaint :n.抱怨；不满criticism :n.批评defective :a.瑕疵的；有缺陷的feedback :n.意见反映improve :v.改进；改善invalid :a.无效的price list :价目表product quality :产品质量purchase :n.购买refund :n.退费replacement :n.更换warranty :n.保固商务英语词汇客服：售后服务assemble :v.聚集，组装customer satisfaction :客户满意(度) customer service hotline :客服热线defer payment :延后付款delivery :n.递送installation :n.安装long-standing :a.长期的manual :n.使用手册membership :n.会员身分，会员资格model number :型号part missing :缺零件place order :下订单receipt :n.收据subscribe :v.订购商务英语词汇企业经营：办公室流程coworker :n.同事dress code :服装规订escort :v.陪同inventory :n.库存meeting room :会议室punch in :上班打卡receptionist :n.柜台人员；接待人员requisition form :需求单security guard :保全人员security system :保全系统shredder :n.碎纸机stockroom :n.储藏室swipe card :刷卡商务英语词汇企业经营：经营管理assignment :n.分派；任务audit :n.稽查；稽核authority :n.权限bankruptcy :n.破产corner the market :垄断市场corporate culture :企业文化development :n.发展；开发diversify :v.多角化;多样化downsize :v.缩编innovation :n.创新merger :n.合并；并购operation :n.营运risk :n.危机；风险strategy :n.策略subordinate :n.下属track record :绩效纪录商务英语词汇企业组织：企业简介branch office :分公司company profile :公司概况core business :核心事业corporation :n.公司，企业found :v.创立headquarters :n.总公司joint venture :合资企业limited liability :有限责任listed company :上市公司market capitalization :市价总值merger :n.合并nonprofit :a.非营利的state-run enterprise :国营企业subsidiary :n.子公司商务英语词汇企业组织：组织架构CEO :n.执行长chief of staff :人事总务主管counselor :n.顾问division :n.事业部entrepreneur :n.企业家executive :n.高阶主管human resources :人力资源jurisdiction :n.管辖范围leadership :n.领导sales representative :业务代表，业务员商务英语词汇人资：面试annual leave :年假background :n.背景；经历career :n.职业；生涯compensation :n.报酬；津贴；薪水competent :a.能干的；有能力的describe :v.描述employee number :员工编号evaluate :v.考核experience :n.经验full-time :a.全职的hardworking :a.工作勤奋的health insurance :健康保险hire :v.雇用hiring criteria :录取标准interviewee :n.面试者；受访者overtime :n.加班performance :n.表现picture :v.描绘；想象position :n.职务；职位probationary period :试用期proficient :a.精通的qualified :a.有资格的；能胜任的report to :直属responsible :a.有责任的；应负责任的resume :n.履历表skill :n.技能；技术strong point :优点supervisor :n.主管title :n.职称travel :n.出差；出外营销working hours :工作时间商务英语词汇人资：人事管理break :n.(短暂)休息时间bulletin board :公布栏company policy :公司政策effective :a.生效的；有效力的incentive program :奖励制度leave of absence :事假on-the-job training :在职训练seniority :n.资历；资深sexual harassment :性骚扰sick day :有给薪病假take over :接替；接管temp :n.临时雇员商务英语词汇人资：人事异动business trip :出差glass ceiling :玻璃天花板；女性升迁障碍headhunter :n.猎人头公司job-hopping :n.跳槽lay off :解雇；裁员promotion :n.升职relocate :v.调职reshuffle :v.改组；改革；洗牌resignation :n.辞职retirement :n.退休sex discrimination :性别歧视successor :n.继任者；继承人suspension :n.停职turnover rate :流动率；离职率商务英语词汇社交：接待访客briefing :n.简报business card :名片comfortable :a.舒适的；自在的demonstration :n.展示expect :v.等待impress :v.使……留下深刻印象interpreter :n.翻译员introduce :v.介绍overseas visitor :外宾pick up :接送reception desk :接待处；柜台see off :送机tour :n.参观；游览welcoming party :欢迎派对商务英语词汇社交：谈工作department :n.部门freelance :a.无契约限制的immediate boss :直属上司in charge :负责in line for :很有可能得到lecture :n.责备；训斥line of work :行业nine to five :朝九晚五orientation :n.新进员工训练pressure :n.压力quit :v.辞职raise :n.加薪retirement :n.退休rush hour :尖峰时间specialize :v.专攻work for :在……上班；为……工作商务英语词汇社交：谈休闲badminton :n.羽毛球belly dance :肚皮舞bowl :v.打保龄球ceramics :n.陶艺Chinese checkers :n.跳棋concert :n.音乐会；演奏会couch potato :老是坐在沙发上看电视的懒骨头craft :n.手工艺DIY (Do It Yourself) :自己动手作flea market :跳蚤市场foot massage :脚底按摩free time :休闲时间golf :n.高尔夫球green thumb :擅长园艺gym :n.健身房hobby :n.嗜好jigsaw puzzle :拼图游戏jog :v.慢跑knitting :n.编织leisure activity :休闲活动movie theater :电影院night market :夜市outdoor :a.户外的；喜欢户外活动的outing :n.远足，郊游pastime :n.消遣，娱乐photography :n.摄影pool :n.撞球resort :n.度假村，旅游胜地rock climbing :攀岩sauna :n.蒸汽浴snorkeling :n.浮潜soccer :n.足球sports :n.运动sunbathe :v.作日光浴suntan :n.晒黑surf the Internet :上网surfing :n.冲浪table tennis :桌球tai chi :太极tap dance :踢踏舞tennis :n.网球theme park :主题乐园valet service :泊车服务商务英语词汇社交：闲谈alumni reunion :同学会ballad :n.抒情歌曲bargain :n.廉售品，特价品bathing suit :泳衣box office :票房，售票亭check-up :n.健康检查clear up :放晴college :n.大学comedy :n.喜剧compare :v.比较divorce :v.离婚domestic car :国产车economic :a.经济的fitness :n.健康；健美flu :n.流行性感冒haircut :n.理发hangover :n.宿醉horror movie :恐怖片humid :a.潮湿的illness :n.疾病in shape :身体健康injury :n.伤害insomnia :n.失眠jazz :n.爵士乐keep fit :保持健康kilometer :n.公里lifestyle :n.生活方式low-fat :a.低脂的married :a.已婚的MSN :实时通讯on a diet :节食on a roll :大为成功，连番上涨overcast :a.阴暗的，阴天的pop :a.流行的romance movie :浪漫爱情片sci-fi (science fiction) :科幻小说single :a.单身的sky-high :a.极高的Skype :n.网络电话sober colors :素色splitting headache :偏头痛stick shift :(车子的)排档stomachache :n.胃痛suffocating :闷热的tension :n.紧张twin :n.双胞胎typhoon :n.台风under the weather :不舒服used car :二手车vacation :n.假期vegetarian :n.素食者work out :运动商务英语词汇税务：报税charitable donation :慈善捐款deduction :n.扣除；扣除额dependent :n.被抚养人e-filing :n.网络报税exemption :n.免税额filing status :报税身分head of household :户长married filing separately :已婚分报return :n.退税；收益tax arrears :欠税，滞纳税金tax credit :税款扣抵额tax evasion :逃(漏)税tax return :报税单tax saving :节税unearned income :非劳动收入商务英语词汇税务：税务事宜alimony :n.赡养费corporate tax :企业税direct tax :直接税excluding tax :不含税gift tax :赠与税income tax :所得税inheritance tax :遗产税IRS (Internal Revenue Service) :美国国税局progressive taxation :累进课税tax break :减税优惠tax increase :增税tax reform :税务改革tax revenue :税收taxation :n.课税；征税taxpayer :n.纳税人商务英语词汇谈判：代理权allowance :n.折让；备抵distribute :v.经销；代理distribution network :经销网distributorship :n.代理权；经销权exclusive :a.独家的hammer out :敲定minimum :a.最低的normally :adv.通常；一般情形null and void :(法律上)无效的third party :第三方written consent :书面同意书商务英语词汇谈判：合约alliance :n.结盟；联盟amend :v.修改；修订attorney :n.律师beneficial :a.受益的；有利的breach :n.违反；侵害clause :n.条款commit :v.承诺；保证compromise :v.妥协；让步contract :n.合约deadlock :n.僵局dotted line :(尤指文件签名处之)点线；虚线draft :n.草稿；草案negotiator :n.谈判者；磋商者party :n.(契约)当事人；一方resume :v.重新开始terminate :v.终止；终结terms and conditions :交易条款timetable :n.时间表商务英语词汇谈判：议价affordable :a.负担得起的bargain :v.议价discount :n.折扣going rate :现行价格；现在行情in bulk :大量outrageous :a.荒唐的；骇人听闻的preferential price :优惠价格price war :价格战；削价竞争profit margin :毛利(率)profitable :a.有利润的；有赚头的quantity :n.数量；数额quote :n.报价reflect :v.反映throw in :外加；额外赠送商务英语词汇通讯：传真cover sheet :封面页face down :正面朝下fax machine :传真机incoming :a.传进来的paper jam :卡纸refill :v.再装填resolution :n.分辨率scan :v.扫描商务英语词汇通讯：电话英语call waiting :电话插拨caller ID :来电显示器cell phone :手机cold call :陌生电访；主动以电话推销商品cordless :a.无线的dial tone :拨号音directory assistance :查号服务extension :n.分机号码long-distance call :长途电话payphone :n.公共电话receiver :n.电话筒reception :n.收讯；接收telemarketing :n.电话营销text message :简讯toll-free :a.免付费的touch-tone phone :按键式电话transfer :v.转接voicemail :n.语音信箱wrong number :打错电话商务英语词汇通讯：电子邮件attachment :n.附加檔capacity :n.容量CC (carbon copy) :副件抄送delete :v.删除download :v.下载e-mail :v.寄电子邮件forward :v.转寄junk mail :垃圾邮件mailbox :n.邮件信箱recipient :n.收件者reply :n.回复salutation :n.称谓subject :n.主旨商务英语词汇通讯：邮件fragile :a.易碎的mail order :邮政划拨mailman :n.邮差parcel :n.包裹postage :n.邮资postmark :v.邮戳printed matter :印刷品registered letter :挂号信return address :寄件人地址sender :n.寄件者zip code :邮政编码商务英语词汇投资：股市investor:n.投资人，投资方analyst :n.分析师anticipation :n.预期asking price :卖价bear market :熊市bellwether :n.指标证券；指标股blue-chip :a.蓝筹股的bottom out :止跌回稳decline :v.下跌dividend :n.股利EPS (earnings per share) :每股盈余individual investor :散户insider trading :内线交易IPO (initial public offering) :首次公开发行jump :v.快速大幅上涨limit up :涨停板make a profit :获利margin trading :信用交易mixed :a.涨跌互见的online trading account :在线交易账户OTC market :店头市场peak :n.顶点；高点plunge :v.快速大幅下跌portfolio :n.投资组合pullback :n.拉回quarterly report :季报rally :v.扬升rebound :n.反弹record high :历史新高run up :走高SEC (Securities and Exchange Commission) :证券管理委员会share price :股价sink :v.向下探底soar :v.飙涨stay on the sidelines :退场观望stock market :股市stock split :股票分割stockbroker :n.股票经纪人TAIEX (Taiwan Stock Exchange Stock Index) :台湾证券交易股价指数trading volume :交易量undervalue :v.低估商务英语词汇投资：基金与其他bond fund :债券型基金closed-end fund :封闭型derivative :n.衍生商品equity fund :股票型基金fund manager :基金经理人futures :n.期货hedge fund :避险基金index fund :指数型基金leverage :n.杠杆management fee :管理费mutual fund :共同基金offshore fund :海外基金option :n.选择权REIT (Real Estate Investment Trust) :不动产投资信托基金trust :n.信托warrant :n.认股凭证商务英语词汇投资：债券bond rating :债券评等convertible bond :可转换债券government bond :政府债券junk bond :垃圾债券medium-term note :中期债券par value :面值premium :n.溢价redeem :v.赎回T-Note (Treasury note) :中期国库券underwriter :n.(股票、债券等的)承销公司；承销商yield :n.收益商务英语词汇行销：促销coupon :n.折价券feature :n.特性flier :n.传单free sample :免费样品giveaway :n.赠品like gangbusters :狂销；热卖poster :n.海报promotional campaign :促销活动sachet :n.试用包sales promotion :促销sport :v.展现；夸示target :v.锁定商务英语词汇行销：广告宣传billboard :n.广告广告牌come on the market :上市commercial :n.电视广告exposure :n.曝光(率)eye-catching :a.引人注目的Internet ad :网络广告media :n.媒体print ad :平面广告slogan :n.标语；口号theme :n.主题trademark :n.商标user-friendly :a.使用方便的商务英语词汇行销：商展bottom line :结余；结算bundle :n.搭售商品convention :n.(专业)展览会demonstration :n.展示entrance :n.入口go with :选择；决定采用high traffic :a.高流量的marketing material :营销材料;宣传品sign :n.标志trade show :商展turnout :n.出席者；参观人数visible :a.显眼的商务英语词汇行销：行销企划competition :n.竞争；竞争对手customer base :顾客群distribution :n.经销；配销market research :市场研究market survey :市场调查marketing budget :营销预算marketing plan :营销计划marketing strategy :营销策略potential client :潜在客户pricing strategy :定价策略respondent :n.受访者retailer :n.零售商sposorship :n.赞助supplier :n.供货商target market :目标市场商务英语词汇业务：出差baggage claim :行李提领处baggage handler :行李搬运员boarding pass :登机证business suite :商务套房carry-on luggage :随身行李Immigration :n.入境管理处；移民itinerary :n.行程表jet lag :时差不适on business :出差；洽公R&R (rest and relaxation) :休息放松reconfirm :v.再确认reservation :n.订位room service :客房服务stipend :n.津贴switch flights :转机travel agent :旅行代办员；旅行社业务商务英语词汇业务：电子商务buy-it-now price :直接购买价community :n.社群consumer base :消费群e-commerce :n.电子商务feedback :n.意见回馈fraud :n.骗局；诈骗max out :刷爆online auction :网络拍卖place a bid :投标；出价platform :n.平台product catalog :产品目录reserve price :底价transaction :n.交易vendor profile :卖家简介商务英语词汇业务：付款条件cash discount :现金折扣consignment :n.寄售(货品卖出才付款) direct deposit :直接汇款extend :v.展延open account :记帐交易payment in advance :预先付款refundable :a.可退还的shipment :n.装运；装载的货物wire transfer :电汇转帐商务英语词汇业务：交货Carriage Paid To (CPT) :运费付至……consignee :n.收件人delayed delivery :延期交货Delivered Duty Paid (DDP) :完税后交货Delivered Ex Ship (DES) :目的港船上交货delivery date :交货日期delivery order (D/O) :到港通知express mail :快递Free On Board (FOB) :船上交货packing list :装箱单；送货明细weight (WT) :n.重量Ex Works (EXW) :工厂交货价商务英语词汇业务：洽谈业务bulk order :大量订购commission :n.佣金competitive edge :竞争优势deal :n.交易hot seller :畅销品；热卖商品in stock :库存lead time :交货期(从订货到取货所需的时间) market share :市场占有率product line :产品线proceeds :n.净收入；净所得(此义恒作复数) quantity discount :大量订购折扣quotation :n.报价单sales pitch :营销辞令；营销手法specs (specifications) :n.规格swear by :保证；强力推荐商务英语词汇业务：商务餐会business dinner :商业晚餐dessert :n.甜点discussion :n.讨论etiquette :n.礼仪follow up :后续追踪hospitality :n.殷情招待host :v.主持invitation :n.邀请luncheon :n.午餐宴pick up the tab :付帐rain check :改期reception :n.招待会；欢迎会schedule :v.安排；预定toast :v.提议为……干杯商务英语词汇银行业务：票据cashier's check:本票check:n.支票clearing house:票据交换所；清算所endorse:v.背书financial institution:金融机构mature:v.(定存、票据等)到期money order:汇票paycheck:n.薪资支票stop payment:止付postdated check:远期支票traveler's check:旅行支票商务英语词汇银行业务：消费金融cancel:v.停(卡)cash card:现金卡collateral:n.抵押品；担保品credit card:信用卡credit limit:信用额度credit rating:信用评等debit card:签帐卡debt consolidation:负债整合default:n.违约freeze:v.冻结(账户)installment:n.分期付款loan:n.贷款minimum finance charge:每月最低应缴金额mortgage:n.房贷；抵押借款statement:n.账单明细outstanding:a.未清偿的；未付清的refinance:v.重新贷款商务英语词汇银行业务：一般业务ATM:n.自动柜员机automatic bill payment:自动转帐服务balance:n.余额；差额bank account:银行账户bank holiday:银行公休日；国定假日banking:n.银行业务banknote:n.纸币；钞票certificate of deposit:定期存款checking account:支票存款账户deposit:n.存款discount rate:重贴现率Individual Retirement Account:个人退休账户interest:n.利息safe-deposit box:(银行)保险箱savings account:储蓄存款账户signature:n.签名teller:n.(银行)出纳员transfer:v.转帐wire:v.汇款withdraw:v.提款商务英语词汇财务与会计：企业资源规划big bang approach :全面导入法cash flow :现金流量custom-made :a.客制的ERP :企业资源规划(EnterpriseResourcePlanning)financial statement :财务报表franchising strategy :分点推广法GAAP(generally accepted accounting principles) :公认会计原则integrated :a.整合的slam dunk approach :强力置入法商务英语词汇财务与会计：会计流程invoice :n.发票ledger :n.分类帐non-payment :n.未付，未缴outstanding :a.未偿付的overcharge :v.索价过高，溢收费用overdue :a.逾期的payment terms :付款条件receipt :n.收据reimbursement request :请款单remittance :n.汇款商务英语词汇保险：保险给付coinsurance :n.共同保险(金)compensation :n.赔偿co-payment :n.定额手续费deductible :n.自负额escape clause :免责条款exclusion :n.排除给付out-of-pocket :a.自掏腰包的payout :n.保险给付额validity :n.正当性；有效性商务英语词汇保险：保单compulsory :a.强制性的coverage :n.承保范围expiration :n.期满；截止insurance :n.保险insurer :n.保险公司personal liability :个人责任险policy :n. 保单policyholder :n.投保人premium :n.保险费renew :v.更新；续(约)rider :n.附加条款waiver :n.免责险商务英语词汇办公室：整理文件drawer :n.抽屉filing cabinet :档案柜flip through :以指头轻触搜寻label :v.贴上标签paper clip :回形针paper punch :钉孔机sleeve :n.(透明)档案夹staple :v.用订书机装钉staple remover :钉书针移除器商务英语词汇办公室：影印enlarge :v.放大jam :v.卡纸lighten :v.变淡make a copy of :影印一份……original :n.原稿percentage :n.百分比reset :n.重新设定scroll down :向下卷动size :n.大小；尺寸smudge :n.脏污streak :n.刮痕toner :n.碳粉two-sided :a.双面的warm-up time :热机时间商务英语词汇办公室：使用电脑back up :备份bookmark :v.加入书签browser :n.浏览器crash :v.当机defragment :v.磁盘重整down :a.挂了；无法运作filename :n.檔名folder :n.档案夹graphics file :图档hard drive :硬盘input method :输入法install :v.安装key combination :组合功能键log on :登入memory :n.内存offline :a.离线的online :a.联机的pop up :突然出现；跳出来power button :电源按钮；电源键restart :v.重新开机search :n.搜寻update :v.更新virus :n.病毒wizard :n.高手；奇才。

IncomeStatement

Income StatementIncome StatementDr Jennifer Mao While a balance sheet is a stock-based static statement that presents a company's financial position at a point in time， an income statement is a flow-based dynamic statement that describes a company's operating performance over a period of time. The period covered by an income statement must be clearly specified. The phrase "Income Statement(1) of 30 June 1997" is meaningless unless it is intended to show the revenues and expenses for the single day 30 June 1997. Historically， the income statement used to be a supporting statement to the balance sheet. Without the income statement， we would record revenue as an increase， and expense as a decrease， of the equity account Retained Earnings. Such transactions are numerous. To simplify the bookkeeping， as well as to provide more useful information， the income statement was born. Depending on how revenues and expenses are presented， there are roughly two formats of the income statement， the traditional multi-step format and the relatively newtwo-step format. The former has a few steps: Sales - Cos of Goods Sold = Gross Profit; Gross Profit - Operating Expenses = Operating Income; Operating Income ± Non-Operating Items = EBT (Earnings Before Tax); EBT - Income Tax = Net Income. Of course whether an item is operating or not depends on the nature of the business. For instance， while Interest Expense may be a non-operating expense for many companies， it is the most important operating expense for banks. When a company has losses rather than earnings， it doesnot have to pay income tax. It may also be allowed to carry the loss backward and/or forward， depending on the tax environment the company is in. Different users of financial statements often have different needs. The multi-step format of the income statement is unlikely to suit all needs. Some American companies took the lead to use the two-step format. In this format， the income statement contains basically two parts. The first part lists all sources of revenues while the second lists all kinds of expenses. A reader can prepare the income statement in any form to suit his purpose. It must be pointed out that the net income shown in the income statement is an accounting profit， not cash flow. In the computation of accounting profit， cash receipts from selling farecards are not recognised as revenue. Rather， they are "Unearned Revenue" classified under Current Liabilities. Revenue is considered realised only after the bus serviceis provided and consumed. Similarly， insurance premium paid for any part of the next financial year will not go to the expense in the income statement. Rather， it will appear as Prepaid Expense， an item under Current Assets. In accounting terminology， the income statement is prepared using the "accrual basis"， not the outdated "cash basis". When China in 1994 proclaimed the adoption of the Western accounting system， the switch from the cash basis to the accrual basis was the heart of the change.损益表资产负债表是个“静态”的报表，描述公司在特定时刻的财务状况。