Study note: financial training 1-3
?The 3rd day!?
- To normalize accounting behavior, Accounting Principles is needed.
- GAAP = Generally Accepted Accounting Principles. 1973. by FASB.
- IAS = International Accounting Standard. 1973. by ISAC.
- PRC GAAP. 1993. by ministry of finance. Based on IAS.
- By income statement, we can know how the company runs, and if it gains income in the term.
- Structure of income statement:
Revenue - Cost = Gross Profit
Gross Profit - Operating expenses = Operating profit (EBIT)
Operating profit (EBIT) - Financial expenses = Earning before taxes (EBT)
Earning before taxes (EBT) - Taxes = Net profit - By cash flow statement, we can see the source and usage information of cash in a certain course. Because everything needs cash to run a company, the cash is very important. Enron was the largest energy company and its income statement kept in excellent condition, even till its burst-up.
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10月 6, 2006 | Filed Under Life
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very good!