ΕΛΛΗΝΙΚΗ ΔΗΜΟΚΡΑΤΙΑ Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα Business English Ενότητα # 8: Financial Statements Ευαγγελία Κουτσογιάννη Τμήμα Διοίκησης Επιχειρήσεων
Άδειες Χρήσης Το παρόν εκπαιδευτικό υλικό υπόκειται σε άδειες χρήσης Creative Commons. Για εκπαιδευτικό υλικό, όπως εικόνες, που υπόκειται σε άλλου τύπου άδειας χρήσης, η άδεια χρήσης αναφέρεται ρητώς. 2
Χρηματοδότηση Το παρόν εκπαιδευτικό υλικό έχει αναπτυχθεί στα πλαίσια του εκπαιδευτικού έργου του διδάσκοντα. Το έργο «Ανοικτά Ακαδημαϊκά Μαθήματα στο Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα» έχει χρηματοδοτήσει μόνο την αναδιαμόρφωση του εκπαιδευτικού υλικού. Το έργο υλοποιείται στο πλαίσιο του Επιχειρησιακού Προγράμματος «Εκπαίδευση και Δια Βίου Μάθηση» και συγχρηματοδοτείται από την Ευρωπαϊκή Ένωση (Ευρωπαϊκό Κοινωνικό Ταμείο) και από εθνικούς πόρους. 3
Σκοποί ενότητας In this section you will acquire specific vocabulary associated with financial statements and depreciation revise verb tenses learn how to describe a process 4
Financial Statements
The Balance Sheet The balance sheet is a summary of a firm s assets, liabilities, and owner s equity accounts at a particular time. This financial statement must demonstrate that the accounting equation is in balance. On the balance sheet, assets are categorized as current, fixed, or intangible. Similarly, the firm s liabilities are divided into two groups: current and long-term liabilities. For a sole proprietorship or partnership, the owner s equity is shown as the difference between assets and liabilities; it is reported by the owner s name in the last section of the balance sheet. For a corporation, the value of common stock, preferred stock, and retained earnings is reported in the stockholder s equity section.
Sample Balance Sheet Source: Accounting Coach (2013)
Balance Sheet Glossary balance sheet: statement of financial position/ισολογισμός owners equity: the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses)/ ίδια κεφάλαια, καθαρή θέση επιχειρηματία current assets: cash and other assets that can be easily liquidated (converted into cash)/κυκλοφορούν ενεργητικό fixed assets: assets that will be held or used for a period longer that a year/πάγιο ενεργητικό intangible assets: they do not exist physically but have a value based on legal rights; they include patents, copyrights, trademark, and goodwill/ ασώματο ενεργητικό
Balance Sheet Glossary current liabilities: debts that will be paid in one year or less/βραχυπρόθεσμες υποχρεώσεις long-term liabilities: debts that need not be repaid for at least one year/μακροπρόθεσμες υποχρεώσεις retained earnings: the portion of a business s profits not distributed to stockholders / αδιανέμητα κέρδη common stock (or ordinary shares): owners claims on profits and assets are subordinate to the claims of others/ κοινές μετοχές preferred stock (or preference shares): stock whose owners usually do not have voting rights, but whose claims on dividends and assets precede those of common-stock owners/ προνομιούχες μετοχές 9
The Income Statement An income statement is a summary of a firm s revenues and expenses during a specified accounting period. Income statement consists of four sections: Revenues includes gross income from the sales of products or services. The gross amount is reduced by sales returns, sales allowances and sales discounts. Cost of goods sold are the cost of the goods a firm has sold during an accounting period. A firm s operating expenses are those costs that do not result directly from the purchase or manufacture of the products it sells. Net income is the profit earned (or the loss suffered) by a firm during an accounting period, after all expenses have been deducted from revenues.
The Income statement Glossary income statement: the statement of profit and loss/κατάσταση εσόδων και εξόδων, λογαριασμός αποτελεσμάτων χρήσης gross income: the total earnings of all goods and services sold/μικτό, ακαθάριστο εισόδημα net income: the actual earnings received by a firm for the goods and services it has sold, after adjustment for returns, allowances, and discounts/καθαρό εισόδημα, κέρδος sales allowances: price reductions offered to customers who accept slightly damaged merchandise/ επιχορήγηση, έκπτωση sales returns: merchandise returned to the firm by its customers/επιστροφή εμπορευμάτων sales discounts: price reductions offered by manufacturers and suppliers to customers who pay their bills promptly/ έκπτωση operating expenses: selling expenses related to a firm s marketing activities and administrative expenses, such as salaries and the cost of maintaining offices/ λειτουργικά έξοδα
Depreciation
Depreciation is the process of apportioning the cost of a fixed asset over the period during which it will be used. The portion being used up is reported as depreciation expense on the income statement. In effect, depreciation is the transfer of a portion of an asset s cost from the balance sheet to the income statement during each year of the asset s life. To compute depreciation expense, accountants consider three major factors: Cost of an asset: the amount that a company paid to purchase the asset. Estimated salvage value: the amount of money the company expects to recover on the date a plant asset is sold, or traded in. Estimated useful life of the asset: the time the company owing the asset intends to use it.
Depreciation Glossary depreciation: lessening of value or estimation/απόσβεση depreciation expense: The portion of a tangible asset that has been consumed or expired, and has thus become an expense/ποσοστό απόσβεσης transfer : changing position/μεταφορά recover: get back/ ανακτώ, ξανακερδίζω salvage value: the estimated value of an asset at the end of its useful life/υπολλειματική αξία
The Statement of Cash Flows The statement of cash flows illustrates the effect on cash of the operating, investing, and financing activities of a company for an accounting period.
The Cash Flow Statement The statement classifies cash receipts and disbursements as operating, investing, and financing. Operating activities include the cash flows of transactions that determine net income, e.g. cash received from sales of goods and services, or payments to acquire inventory. Investing activities include transactions involving the acquisition of non-current assets, e.g. sale or purchase of property or securities. Financing activities include cash inflows and outflows of transactions involving creditors and owners, e.g. cash received from issuing stocks and bonds, or payments of dividends.
Cash Flow Statement Glossary cash flow: money that moves in and out of a business/χρηματική ροή cash flow statement: it provides information concerning a company s cash receipts and cash payments / κατάσταση ταμειακών ροών cash receipts: money actually received, not just earned (revenues)/ εισπράξεις χρημάτων disbursements: payments /πληρωμή, δαπάνη operate: perform a function; work / λειτουργώ invest (in): to lay out (money or capital in an enterprise with the expectation of profit/ επενδύω finance: provide or obtain funds, capital or credit/ χρηματοδοτώ transactions: business deals/ εμπορικές συναλλαγές
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