What are some financial facts that people without financial literacy wouldn t believe?

People with no financial knowledge will not believe that the reimbursement invoice needs to be written off in the current year, and always think that as long as all the expenses are spent, they can be reimbursed whenever they are spent.

In fact, we really don't make fake accounts, because even real accounts are difficult to settle, so don't imagine that making fake accounts is so simple.

For accountants, it is easier to falsify profits, but it is difficult to falsify cash flows, and it is easy to manipulate profits for one or two years if the business cooperates, and it is difficult to verify even if the audit finds problems.

If the after-tax profit is actually larger than the pre-tax profit, and the enterprise profit is negative, that is to say, the enterprise incurs a loss, and it is expected that the enterprise will have enough taxable income to cover the loss in the future, and the enterprise can accrue deferred income tax.

Financial reports are used to exclude enterprises, not to select enterprises, and good financial statements can only show that the company has no major problems at present, and does not mean that the company is very good.

Accounting and auditing are not opposites, on the contrary, the relationship may not be bad, accounting only has the role of records, so auditing is to check the entire company, and accounting is just to help do some work.

This job is really a high-risk profession for CFOs, and if you do a good job, you will enter the hospital, and if you don't do well, you will end up in the court, so it is really not as simple as everyone thinks.

As far as I know, there are a few of them, for example, revenue can be recognized without issuing an invoice, and there is a financial account that does not care about money, etc.

Financial knowledge is quite professional, especially those terms that laymen do not understand, and invoices need to be written off in the current year.

Outsiders think that people who manage finances are casually greedy for millions, but that is really not there, it is just people's imagination.

There is also the concept of profit in accounting and the concept of profit in tax law are not the same thing, the latter is usually a bit larger than the former.

In my opinion, more assets are not better, and in the same way, less liabilities are not better, and I don't understand this very well. _x000d_

Let's talk about what everyone agrees on and often encounters! (Isn't finance just busy with the days at the end of the month?) It's not just the days at the end of the month, but I also work overtime at other times, and I don't have overtime pay yet.

Many people think that it is easy for accountants to make money, and once a person said to me in person: "It's not easy for you to make money?" As soon as the tip of the pen turns, the money will go to the pocket.

People who don't do accounting think that accounting does addition, subtraction, multiplication and division every day, and it is good to be able to do calculations, and it belongs to the kind that has nothing to do all day long, but in fact, laymen can't even understand the excitement of the finance department!

Finance is very professional, and there are many laymen who don't understand it.

I have just entered the finance for 2 months, and I can't pay a penny! That's right! I was approached for two years by saving 1 cent!!

We all think that finances are fake, but we are actually very real.

The data you are asking is based on the numbers on the balance sheet, e.g. Question 1Total Assets = Current Assets + Non-Manifold Assets (Non-Current Assets = Fixed Assets).

Liabilities = Current Liabilities + Non-current Loads.

These are on the balance sheet.

190 is the total assets on the balance sheet - current liabilities quick ratio = liquid assets current liabilities = (current assets - inventories - prepaid accounts - amortized expenses) current liabilities.

Inventory turnover rate (times) = cost of goods sold Average inventory balance (there is also inventory turnover rate (times) = operating income Average inventory balance, this formula is mainly used for profitability analysis) Wherein: average inventory balance = (opening inventory + ending inventory) 2 Inventory turnover calculation formula.

Number of days of inventory turnover = number of days in the calculation period Inventory turnover rate (times).

That's right, all five ratios need to be calculated using data from the balance sheet, which is impossible without a balance sheet.

The two tables are not mutually reputable, and only one "undistributed profit" links the two.

There are more than 5 million undistributed profits on the company's statement, but at present, we only have more than 2 million in our bank account, is there a problem?

It depends. China's accounting principle is accrual accounting, and it is normal for the statement profit to match the cash inflow, but these must be true and not bad debts.

How did it happen?

There are many reasons for this, roughly as follows:

1) There are too many accounts receivable, and the payment is not collected in time after the sale on credit, so that the book profit is larger and the monetary funds are less;

2) There are large amounts of loans, such as inter-enterprise lending, shareholder borrowing (in essence, evading registered capital), etc., so that the book assets cannot be costed or expensed, and the profits do not match the name, or long-term accounting, which reduces monetary funds;

3) False assets and false profits, for example, the "production cost" in the inventory is the "reservoir" of profits, and less carry-over or no carry-over will increase profits without cash inflow;

4) false liabilities, which will also increase assets without cash inflows;

5) A large number of bad debts are not handled, which will also inflate profits.

Except for 1), all of the above are abnormal phenomena.

The company's capital is always flowing, and if the company's profits are not distributed, then it may be converted into assets that exist in the continuing operation of the enterprise, which may be in the form of cash, fixed assets, or inventory.

For example, if you invest 100,000 yuan in a small shop, you will have 100,000 yuan, of which 50,000 yuan will be used to purchase fixed assets and necessary working expenses, and 50,000 yuan will be used to purchase inventory for **. If you earn 30,000 yuan in the first year, the profits you earn need to continue to invest in the operation, if you never expand the operation, on the inventory of 50,000 yuan, do not add new fixed assets, and do not incur unnecessary expenses, then the 30,000 yuan earned may exist in the form of cash, if you want to expand the operation, the profits earned continue to be invested, you can expand the scale of inventory, or purchase new assets, then the profit you earn 30,000 yuan will definitely not exist in cash. If you don't allocate 30,000, then your total assets are 130,000, which is more than the 100,000 you invested at the beginning.

There is no direct correlation between undistributed profits and monetary funds on the statement, so that's all there is to it.

How it was caused cannot be explained, it is only the result of the accounting reaction at the time of production and operation.