公司理财第五版高等院校双语教材·金融系列-chapter 3(PPT 25页).ppt

Chapter 3
Accounting and finance
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Objectives
Interpret the information contained in the balance sheet, e statement, and statement of cash flows
Distinguish between market and book values
Explain why e differs from cash flow
Understand the essential features of the taxation of corporate and personal e
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Content
The balance sheet
The e statement
The statement of cash flows
Accounting practice and malpractice
Taxes
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The balance sheet presents a snapshot of the firm’s assets and liabilities at one particular moment
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Assets
The assets represent the uses of cash raised
There are two classes of assets
Current assets: assets that will soon be used or turned into cash, . accounts receivables, inventories
Long-term or fixed assets
Tangible assets . buildings, equipment
Intangible assets . brand, goodwill
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Liabilities
The liabilities represent the sources of the cash
There are two classes of liability
Current liabilities: liabilities that are due for payment shortly, . accounts payable
Long-term liabilities . bond payable
Net current working capital = current assets – current liabilities
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Shareholder’s equity
The difference between the assets and the liabilities represents the amount of the shareholders’ equity
Shareholders’ equity are called ‘residual claimants’, which means that shareholders’ equity is what left over when the liabilities of the firm are subtracted from its assets
Shareholders’ equity = total assets – total liabilities
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Book values and market values
Items in the balance sheet are valued according to generally accepted accounting principles (GAAP)
Book values are “backward-looking” measures of value
Market values of assets and liabilities do not generally equal to the book value
Book values are based on historical or original values
Market values measure curr