英语班级： 2A1专业班级：税务 121课文翻译： 张帅颖，学号 12253040138　　　　　　张昕怡，学号 12253040139　　　　　　袁璐， 学号 12253040133　　　　　　潘诗怡 , 学号 12253040120　　　　　　许琳 , 学号 12253040132 朱韵 , 学号 12221040241

Unit 7

Financial Accounting

Introduction to accounti

ngCash flow

Internal control

Accounting

Financial accounting

Management accounting

Tax Accounting

※Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated; for public companies, this information is generally publicly-accessible.※By contrast management accounting information is used within an organization and is usually confidential and accessible only to a small group, mostly decision-makers. ※Tax Accounting is the accounting needed to comply with jurisdictional tax regulations.

Positive cash flow Stable cash

flow

Negative cash flow

Introduction

Cash flow is one of the most important aspects of any business. Cash flow should not be confused with profit - they are different concepts! Cash flow shows the money flowing into a business from sales, interest payments received, and any borrowings and the amount of money flowing out of a business through paying for wages, rent, interest owing, paying back loans, buying raw materials and so on.

Positive cash flow

This shows that the amount of funds flowing into the business is greater than the amount going out - the amount of cash in the tank is referred to as a 'stock'. The stock in this case gets bigger as more money comes in than goes out. Firms in this position are likely to have healthy prospects for the future!

Stable cash flow

This shows that the funds coming into the business are the same as the amount going out. The stock of cash in this case remains stable. Firms in this position may also have a degree of optimism for the future assuming that the stock of cash in the first place is adequate!

Negative cash flow

In this scenario, the cash coming into the business is less than that going out. You can see that if this continues the stock of cash gets less and less and over a period of time will lead to serious problems for the business.

A true story:

On February 26, 1995, one fresh-faced 28-year-old trader 1brought a venerable 233-year-old British bank to its knees. Nick Leeson, a trader for 2 Barings Bank, had bought $27 billion worth of securities on Japan’s Nikkei stock market. When the Nikkei plunged, Barings lost $27 billion and collapsed. All fingers pointed to Leeson. How could a conservative bank allow this to happen? It soon became clear that nobody was supervising Leeson’s trades.…………

　 Internal control is the organizational plan and all the related measures that an entity adopts to ：♣ Safeguard the assets the business uses in its operations

♣ Encourage adherence to company policies

♣ Promote operational efficiency (obtain the best outcome at the lowest cost)

♣ Ensure accurate and reliable accounting records

　 Internal controls are most effective when employees at all levels adopt the organization’s goals and ethical standards. Top managers need to communicate these goals and standards to workers. 6Lee Iacocca, former president of Chrysler Corporation, instilled goals in Chrysler employees by spending time with assembly-line workers. (Japanese firms pioneered this style of 8participative management.) The result? Defects decreased, and Chrysler products became more competitive.