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19.02.2021 20:18 •  Английский язык

Текст: THE FINANCIAL STATEMENTS AND THE ACCOUNTING PERIOD
Most people go to a doctor once a year to get a checkup to make sure everything is all right with their health. Similarly, companies are interested in their financial health. Where does the revenue of the company come from? Where does the company spend its money? How much profit it is making? Where is its cash coming from, and where is it going to?
Companies give answers to such questions in five documents, called financial statements: the balance sheet, income statement, statement of changes in shareholders equity, statement of cash flows and footnotes.
The balance sheet presents a snapshot of the resources of the company and claims against those resources at a specific point of time.
The income statement shows the profitability of a company over a specified period of time. A companyꞌs profit or net income is equal to its revenues and gains minus its expenses and losses.
The statement of changes in shareholdersꞌ equity analyzes the changes from year to year in the shareholdersꞌ equity.
The statement of cash flows reports the net cash (inflows minus outflows) from the three principal business activities-operating, investing and financing.
The footnotes provide more detailed information on the balance sheet and income statement.
These financial statements present the accounting information in formal reports that tell interested groups, such as managers, creditors, potential investors and government agencies, how the business is doing. These reports are prepared from accounting information obtained from the various business transactions.
Thus, transactions involving assets, liabilities and capital become the data used in the preparation of the financial statements.
Financial statements are prepared at least once a year. This is known as the accounting period. An accounting period may follow the calendar, in which case it begins on January 1 and ends on December 31 of the same year. This business then has a calendar year accounting period. Any business that has an accounting period consisting of 12 months other than a calendar year is generally known as a fiscal-year accounting.
Organizations may prepare financial statements for periods of time that are less that the accounting period; such statements are generally known as interim statements. An interim statement is prepared for a period of time other than a fiscal or calendar year. Examples of interim statements are statements prepared for 6-month, 3-month, or even monthly periods. Regardless of the periods of time covered by the individual financial statements, the kinds of information presented by the various statements do not change.

Сами задания
Ex.1 Выразите согласие или несогласие.
1) Companies are not interested in financial analysis.
2) The principal components of the financial statements are the balance sheet, income statement, statement of changes in shareholders equity, statement of cash flows and footnotes.
3) The income statement reports on the companyꞌs performance during the year.
4) The statement of changes in shareholdersꞌ equity reflects the activity in the equity section of the balance sheet.
5) The statement of cash flows does not report on the movement of cash by the company.
6) Financial statements are prepared on a regular basis.
7) Accounting periods may be different.
8) Interim statements may cover various time periods.
9) All the financial statements regardless of the period have the same kind of information.
10) The financial statements do not present detailed information on cash flows.

Ex.2 Заполните пропуски в предложениях словами, подходящими по смыслу: information, funding, companies, financial, profitable, gains, periods, sheet, statements, equity, documents.
1) Most … want to make sure that they are financially healthy.
2) Answers are found in five … .
3) The balance … gives an idea of the companyꞌs resources and sources of … at a certain point of time.
4) The income statement gives an idea how … the company is.
5) The statement of changes in shareholders … gives an analysis of the changes in the shareholders equity.
6) The statement of cash flows reports the … from the 3 principle business activities – operating, investing and financing.
7) … statements are prepared on a regular basis.
8) Accounting … periods may be different.
9) Interim … may cover various time periods.
10) All the financial statements regardless of the period have the same kind of … .