No.5 Money and finance

   Understanding financial statements
   (Financial statements are a picture of a company's financial health for a given period of time)

String of words：

1. port of call: a place where you stop for a short time, especially on a journey.

          e.g. Knowing when to buy and when to sell depends not only on understanding the market in general but also the financial health of the company. Your first port of call: the annual report.

2. a snapshot of

          e.g. The balance sheet is a snapshot of a company's financial position at a given moment.

3. set sth (off) against sth: to use or record one thing, especially the cost of something, in order to reduce or remove the effect of another.

          e.g. Set your assets against your liabilities.

4. proverbially, : 常言道，

          e.g. Proverbially, we can't change who we are, the sooner you accept that, the better off your game and your life will be.

PS：

• pairs of financial terms

          ✔variable cost(变动成本) <-> fixed cost(固定成本) /fixed expense/standby cost

          ✔assets <-> liabilities(债务)/debts

                   fixed assets/capital assets = buildings and equipment

                   current assets：流动资产 the stock and the accounts receivable

          ✔dividends(股息) <-> retained profit(earnings)(保留盈余)

          ✔creditor(债权人) <-> debtor(债务人)

          ✔accounts payable(应付账款) <-> accounts receivable(应收账款)

                简单理解一下：

                accounts payable：资产类科目，一般将欠公司款的往来单位记入该科目

                accounts receivable：负债类科目，一般将公司欠款的往来单位记入该科目

• annual report: 年度报告即公司整个会计年度的财务报告及其他相关文件

          financial statements：财务报表

          ✔balance sheet: 资产负债表 show the assets and debts 

                反映企业资产、负债及资本的期未状况。长期偿债能力，短期偿债能力和利润分配能力等。

          ✔income statement: 损益表 earnings report/profit-and-loss account 

                反映本期企业收入、费用和应该记入当期利润的利得和损失的金额和结构情况。

          ✔cash folw statement: 现金流量表

                反映企业现金流量的来龙去脉，当中分为经营活动、投资活动及筹资活动三部份。

• shareholders' equity：股东权益 net assets

          assets = liabilities + shareholders' equity

• if the amount of stock is growing fast, then it could be that stock isn't moving.

          如果股票数量迅速增加，它可能使这些股票不再流动。

          解释：一般来说，在资金不变的情况下，股票数量快速增加，会导致没有足够的钱去购买股票，会导致一部分股票不再流动，供大于求，价格就会下降。所以，如果只看这句话，说的应该是数量不会流动，而不是价值。

• notes to accounts: 帐目附注 information added to a company's accounts that explains something in them.

          bottom line: [收益表的]底行 the profit or the amount of money that a business makes or loses.

          profit margin: 边际利润 the difference between the total cost of making and selling something(变动成本) and the price it is sold for(销售收入) 

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