Financial English Terminology for Balance Sheet and Income Statement?

The balance sheet is: Balance Sheet

The balance sheet, also known as the statement of financial position, is the main accounting statement that represents the financial position (i.e., the status of assets, liabilities and owners' equity) of a business at a certain date (usually at the end of each accounting period).

The balance sheet uses the principle of accounting balance to divide the trading accounts such as assets, liabilities and shareholders' equity that comply with accounting principles into two major blocks: "assets" and "liabilities and shareholders' equity".

In addition to the internal error removal, business direction, and prevention of malpractice, its report function can also allow all readers to understand the business status of the enterprise in the shortest time.

In terms of procedures, the balance sheet is the end of the bookkeeping process and is the result and report of the roll-over after the entry entries, postings and trial adjustments. In terms of nature, the balance sheet of Ziwei Tong's assets is to show the comparative relationship between the assets and liabilities of the enterprise or the company, and the shareholders' equity, and accurately reflect the company's operating conditions.

As far as the basic composition of the statement is concerned, the balance sheet mainly contains the assets part of the left side of the statement, and the liabilities and shareholders' equity part of the right side of the statement.

On the other hand, if the front-end of the operation is recorded in full accordance with the accounting principles and after the correct entry or transfer trial calculation process, the total amount of the left and right sides of the balance sheet will inevitably be exactly the same. In the end, this calculation is the total amount of assets = the total amount of liabilities + the total amount of shareholders' equity.

Income statement in English.

China's Accounting Standards for Business Enterprises - Profit and Loss Statement is divided into three parts: introduction, main text and supplementary provisions. Among them, the introduction explains the scope of the standard, that is, to regulate the information that should be provided in the income statement submitted by the enterprise to the outside world. The body part is divided into five paragraphs: definition, basic requirements, report items, report structure, and report notes.

The definition paragraph gives 19 concepts that define the items in profit and loss, lay the foundation for the preparation of the income statement, and also provide a basis for understanding and applying the guidelines correctly. The basic requirements specify the time requirements for the preparation of the profit and loss statement, the unit of currency, as well as the indication of the name of the enterprise, the accounting period for calculating the profit and loss, the statement number and the requirements for the preparation of the comparative profit and loss statement.

The statement items first explain that the profit and loss statement is classified according to gross operating profit, operating net profit, total profit, net profit and distributable profit, and lists the composition of total profit and net profit after tax and profit distribution of the enterprise. Then, the contents of operating income and operating costs are defined in detail, and the profit calculation procedure is described.

The structure of the report explains that the format of the income statement is generally multi-step. Report notes describe what should be included in the statement notes. The supplementary provisions explain the ownership of the right to interpret the standard, the handling method and the effective date in case of conflict with other laws and regulations.

What it does:

1. The profit and loss statement can be used as the basis for the distribution of business results. The profit and loss statement reflects the operating income, operating costs, operating expenses, business taxes, various period expenses and non-operating income and expenditure of the enterprise in a certain period, and finally calculates the comprehensive profit index. The data on the income statement directly affects the interests of many related groups, such as the tax revenue of the state, the bonuses of managers, the salaries and other remuneration of employees, and the dividends of shareholders.

2. The profit and loss statement can comprehensively reflect all aspects of production and business activities, and can help to assess the work performance of enterprise management personnel. The management efficiency and effectiveness of enterprises in production, operation, investment, fund-raising and other guessing activities can be comprehensively expressed from the increase or decrease of profits.

<> accounting statement is a report document that summarizes and comprehensively reflects the daily accounting information in a certain form. Because the daily accounting data are scattered, scattered, and large, in order to facilitate the management personnel at all levels to grasp at a glance the economic activities of enterprises and units and their benefits in a certain period, it is necessary to summarize and synthesize the daily accounting data in accordance with the format and caliber prescribed in a unified manner.

Accounting reportThe current accounting report is a systematic report file prepared by the accounting personnel of an enterprise according to the accounting records of a certain period (such as month, quarter, year) in accordance with the established format and type. With the expansion of business activities, the users of accounting statements have an increasing demand for accounting information, and the information provided by only a few accounting statements can no longer meet or directly meet their needs, so it is necessary to provide more information through notes and explanations other than the statements.

<> Balance Sheet is an accounting statement that summarizes all the assets, liabilities and owners' equity information of the company at a certain date, which indicates the economic resources owned by the company at a specific date, the economic obligations assumed and the claims of the owners of the company to the net assets.

The balance sheet basically reflects the distribution of the company's assets on a specific date, but it is impossible to reveal the property status before and after this date, and the investment bank can clearly see the various assets and liabilities owned by the company and the rights and interests that the company's owners can have from the balance sheet.

1.A balance sheet is a statement that reflects the financial status of a business in a certain period. It is based on the accounting equation of assets = liabilities + owners' equity, and reflects the basic status of assets, liabilities and owners' equity of an enterprise at a certain point in time according to certain classification standards and sequences.

The balance sheet is presented on the left and right, with assets on the left and liabilities and owners' equity on the right. The assets are listed in descending order of liquidity.

The balance sheet provides financial information such as the company's asset structure, asset liquidity, asset status, debt level and liability structure. By analyzing the balance sheet, we can understand the financial status of the company, such as its solvency and capital operation ability, and provide information for managers.

2.The profit and loss statement, also known as the income statement, is a financial statement that shows the production and operation results of an enterprise in a certain period. The income statement is prepared using the accounting equation of "profit = income - expenses".

Through the profit and loss statement, you can assess the completion of the company's profit plan, analyze the profitability of the enterprise and the reasons for the increase or decrease of profits, the development trend of enterprise profits, and provide financial information for managers.

Through the balance sheet, the total assets, total liabilities and structure can be reflected on a certain date, indicating the economic resources owned and controlled by the enterprise and how many assets or services will be used to pay off debts in the future; It can reflect the situation of the owner's equity, indicate the investor's share in the assets of the enterprise, and understand the composition of the owner's equity; It can also provide basic information for financial analysis, such as calculating the current ratio and quick ratio from the balance sheet, and understanding the short-term solvency of the company.

The role of the income statement is mainly in the following four aspects: it helps them to explain, evaluate and improve the operating results and profitability of the enterprise; Contribute to the explanation, evaluation and solvency of the enterprise; Contribute to business managers in decision-making; It helps to evaluate the performance of enterprise managers.

A financial report is a written document that reflects the financial status and operating conditions of an enterprise in a certain period. It is a specialized method of accounting, and it is also the result and final link of accounting. Although the daily accounting of enterprise accounting has been processed into accounting vouchers through the original vouchers, and then registered in the account books according to the nature and category of business, it has been able to continuously and systematically reflect the general situation of the economic business of the enterprise, but it is still relatively scattered, and it is impossible for the competent departments, investors, creditors, and employees of the enterprise to go through the vouchers or account books to understand the operation or financial status of the enterprise.

Therefore, on the basis of daily accounting, the accounting information scattered in the account books must be summarized and reflected in the form of financial reports. This is very helpful for all aspects to understand the financial health and operating status of the enterprise.

The purpose of preparing financial reports is to provide investment and decision-making information for the users of the financial reports. Investors need to understand the risks and rewards of investing by reading financial reports. When preparing financial reports, enterprises should also focus on providing asset capital structure, profitability and profit distribution policies.

By reading the financial report, creditors can understand the company's debt ratio, the use of credit funds and its ability to repay debts. When preparing financial reports, enterprises should also focus on providing data that reflects the solvency of the enterprise.

State administrative organs, such as the Administration for Industry and Commerce, the State Administration of Taxation (institutes), local taxation bureaus (institutes), and statistical bureaus (institutes) can understand the business conditions, financial conditions, and tax payments of enterprises by reading financial reports. The financial report of the enterprise should also provide these departments with relevant information on the use and allocation of enterprise funds, the operation of assets, and provide decision-making information for the national macroeconomy. By reading the financial report, the management personnel of the enterprise can understand the business results and deficiencies of the enterprise, check the implementation of the financial plan and production and operation plan of the enterprise, find out the problems, summarize the achievements, and predict the future development of the enterprise.

Through financial reports, employees of enterprises can understand the welfare and future development of the enterprise, and understand the stability and development possibilities of the enterprise through the debt structure and profitability of the enterprise.