财经英语视频文本

Chapter 1 Bookkeeping:This lesson will reveal the secret of accounting language. In the previous lessons, we are shown how to tell the business story using the balance sheet and income statement. You are now going to be shown how to enhance the story telling by using the T account. Everything is done the same way as in the last lesson except now the accounts within the balance sheet and income statement will be replaced by drawing a T account for each account. When a transaction occurs, the change in the affected accounts is shown using the T account. Here is the procedure: There are 3 steps whenever a transaction occurs: Step 1 is to determine which accounts are going to be affected; Step 2 is to determine whether the affected accounts are going to increase or decrease as a result of the transaction; Step 3 is to use this specific T account to indicate the increase or decrease in each account. In the previous lessons, we were shown how to complete steps 1 and 2. Now it'll be shown how to complete step 3. In order to use T accounts, the following must be memorized. Imagine the balance sheet and its two halves: from the center moving outside towards the outsides means to increase. From the outside moving inward towards the center means to decrease. With these rules, T accounts can now be used to show how an account increases or decreases a particular T account. If we want to show that a T account on the assets side is going to increase by 10, we'll write 10 on the left side of the T account. It's written on the left side because the left side is on the increase side. If we want to show a T account on the liabilities side is going to increase by 10, we'll write 10 on the right side of the T account. It's written on the right side because the right side is on the increase side. Now if we want to show a specific asset account is to decrease by 5, we will write 5 on the right side of the T. It's written on the right side because the right side is on the decrease side. If we want to show an equity account is to decrease by 5, we will write 5 on the left side of the T. It's written on the left side because the left side is on the decrease side.Now what about the income statement? The income statement follows the same rules. Imagine the income statement is a part of the equity section of the balance sheet. Therefore, the income statement increases as you move from left to right just as the right side of the balance sheet does. Any number on the left side of the T account that is in the income statement will decrease net income. Any number on theright side of the T account on the income statement will increase income. If we want to show a revenue of 10 on the income statement, we will write 10 on the right side of the revenue T account. It's written on the right side because the right side is on the increase side. If we want to show an expense of 5, we will write 5 on the left side of the expense T account. It's written on the left side because the left side is on the decrease side.So as a review, the following must be memorized to use T accounts. From the center moving outward means increase; from outside of the balance sheet moving towards the middle means decrease. The income statement increases from left to right. To increase or decrease a T account, you must write a number on the left or right side of the T depending on where the account is on the balance sheet or the income statement.Once again, there are 3 steps to use the T account to tell the story of a business whenever a transaction occurs. Step 1 is to determine which accounts are going to be affected; Step 2 is to determine whether the affected accounts are going to increase or decrease as a result of the transaction; Step 3 is to use this specific T account to indicate the increase or decrease in each account.Finally here is the secret of accounting. Memorize the secret. Simply replace the word left with debit and right with credit. Forget everything you know about these words debit and credit and simply see them as meaning left and right. Notice the following examples. If we want to increase the asset account by 10, we put a debit of 10, debit means left, the left side means increase for this account. If we want to increase the liability account by 10, we put a credit of 10, credit means right, the right side means increase for this account. If we want to decrease the asset account by 10, we put a credit of 10, credit means right, the right side means decrease for this account. If we want to decrease the equity account by 10, we put a debit of 10, debit means left, the left side means decrease for this account. If we want to increase the revenue account by 10, we put a credit of 10, credit means right, the right side means increase for this account. If we want to decrease income by 5 by adding to an expense account, we put a debit of 5, debit means left, the left side means decreasing income. So to review this secret,left means debit, right means credit. You must not try to associate any other meanings to the words debit and credit. Don't thinkof debit cards at a bank or credit to your grade. Only think of them as meaning left and right. If you keep all the rules in mind, using T account to tell the story of a business becomes very simple. It just requires practice like any other language learning does.Chapter 2Let’s start to discuss financial accounting with a definition. Financial accounting is a process of three things: identifying, measuring, and communicating economic information to permit informed decisions by users of that information. Now I have italicized informed decision in that definition because I want to draw your attention to that. The purpose of accounting is not to confuse, not to obfuscate, not to mislead. The purpose of accounting, financial accounting is to permit informed decisions. Accounting is simply capturing and communicating economic activity that has occurred for an entity, whether that entity be a business, a governmental entity, any type of business. We want to inform you of that information. So we must do the three things in the definition. We must identify economic information that needs to be reported; we must measure that economic data or that economic phenomena or activity or transactions in order to capture it for disclosure; then we must communicate that information to interested parties. This can be very difficult.First of all, it can be difficult to identify transactions that occur within an entity. And then it can be very difficult to measure the impact or a transaction that has occurred. Again, the economic activity can be extremely complicated. And it can be difficult to measure accurately and well and meaningfully that economic transaction. Then it can be difficult to communicate that information in a manner that makes sense to those who have some accounting knowledge but are not trained as accountants. So we have to make sure that we communicate in a manner that allows users to become informed about an entity.In particular, financial accounting has three objectives. That is to identify, measure, and communicate information, accounting information, we want to make three objectives. The first objective is that we want to make that information to be useful in making investment and credit decisions. That makes sense if an entity wants to raise money by issuing stocks to investors. Then we need information to allow those investors to make decisions about their investment. Do you want to invest in a company? Well, you might want to look at their earnings. You might lookat their balance sheet. Perhaps you are interested in receiving dividends on your investment. You would look at their dividend payout over the last few years compared to their earnings. Whatever the investment decision is, you want to provide information useful in making that decision. Credit decision is the same way. Companies borrow money all the time. As we’ll see a little bit later, a company’s assets are either generated by investment or liabilities by creditors. So what do you want to know if you are making a credit decision? Well, can they pay the money back? So you might look at their earnings again. Or you might look at their current interest expense to see if they have a lot of interest expense that they may not be able to pay extra interest expense. You might look at their levels of liabilities in order to determine what interest you might charge—the riskier the company, the higher the interest rate. So the information from the accounting standpoint is supposed to help you make those investment and credit decisions in an entity.The second objective is that we want to have information that is useful in assessing the amount, timing, and uncertainty of future cash flows. Now, accounting is all about giving an indication about cash flows. Sometimes, accounting is criticized because those earnings are not in a cash basis, a lot of noncash items in a company’s net income. So, you can not equate net income with net cash inflow. That’s ok. The ultimate goal is, we’ll see this later in these foundations and in this accounting course. What accounting tries to do is to give an indication and understanding of the amount, timing, and uncertainty of future cash flows because ultimately if a company can not generate cash, then it can not stay in business regardless of what its accounting says. So we are trying to provide that information. As you begin to understand accounting, I believe you’ll begin to understand how we meet that objective in providing information for cash flows.Now a third objective of financial accounting is to provide information that you can use to assess a company’s resources, claims against those resources, and changes in them. Well, a company is no more than resources and claims against those resources. When we say we work for a public company like coke cola, what is coke cola other than what we call an academia, an nixes of contracts, a group of people that are working for a common cause for entities that own certain assets, well, the investors, the owners own those, but they use them and claim against those assets by the owners and the creditors. So a company is really nothing more than its resources and claims against those resources by the investors and creditors. So we certainly want to make sure thatyou can understand those resources and those claims against them and how they change over time. That is why you see in any financial statement at least two years of data so that you can calculate changes in a company’s resources and claims against them.Now in order to meet those three objectives, to provide information useful in investment and credit decisions, to help you understand cash flows, and to help you understand a company’s resources and claims against them, financial accounting or companies using financial accounting to produce full financial statements, these financial statements are as follows: balance sheet, income statement, statement of cash flows and statement of stockholders’ equity. those are the four major financial statements that all publicly traded companies and all companies in general that are owned by stockholders or owned by owners will have to get to their users or interested parties so that they can understand what happens or what has happened for a company. In addition to those four financial statements, you’ll also see for publicly traded companies footnotes to those statements and what we have here in MD&A, management discussion and analysis. The footnotes are additional explanations or additional disclosures beyond the financial statements. Management discussion and analysis is just what it sounds like, a discussion and analysis of the financial statements. So these four financial statements and MD&A and footnotes provide this information for investment, credit decisions, cash flows, and resources and claims against them. What we’ll do in this segment in the futu re in this material is look at each of these four financial statements. We won’t spend much time on footnotes and MD&A because they are beyond the scope of these foundation materials. But we’ll learn how to read each of those four financial statements.So financial accounting is the process of identifying, measuring, and communicating economic information through the four financial statements to permit investment, credit decisions, understanding of cash flows, and understanding of a company’s resources. Th at is what financial accounting is and hopefully you’ll see its benefits as we move through these materials. (Summary)Chapter 3 When financial statements lie(Focus on cash flows)Many people concentrate on growing sales and having good profits on the financial statements, because after all, profit is the numbereverybody was eyeing on, that is the number the analysts for publicly traded companies were looking. But a company could be growing too fast, and even though on the book … is showing some handso me profit, but the company could be forced [into] bankruptcy, if the sales that they made were on credit. They don’t collect money upfront. The accounting, financial statement will record that as sales as it occurs, whether the money has been collected fro m the customers; if it’s not, it will be account receivable on the balance sheet. So the accounts receivable, if they are not collected very quickly, for example, it takes you 60 days to collect that from your customers, but you have to pay your supplier in 30 days, you’ll have to your labor, you have to pay your production costs, everything sooner than you collect your money from your customers. At the same time, if there is a credit crunch, when banks are not going to lend you money to help you go through this transition period, you might be forced into bankruptcy even though your books can look very impressive and have some handsome profits.Chapter 4：Transcript to interview with Carson BlockI-Interviewer B-Carson BlockI: when you look at Chinese companies, what are the red flags?B: well, you can have different categories of red flags. Some companies, in a way, fake transparency. So their filings are chock full of information, but it is just the wrong kind of information, it’s information that…it’s n ot really what we call crunchy, that you can sink your teeth into. So, you have to look for key information. So if they don’t tell you who their customers are, if they don’t give you that much information on their suppliers, but it’s just a lot of general information about the way the industry works, and other places, that’s a red flag.I: now why should investors trust you, when you are shorting the stock, to be telling the truth about these companies?B: well, for one thing, I don’t know of any NGOs or charities that are doing equity research. Everybody has a stake in the game somehow. Now, the traditional model of equity research is investment banking married to equity research, the conflicts there are similar to my conflicts except the banks, are incentivized to be positive on those companies.I: why is it that some guy with a small team in China has caught fraud and problems with Chinese companies that the big-time auditors had missed?B: well, auditors are not historically looking for business frauds, they might be looking for aggressive accounting, maybe even looking foraccounting fraud, but they are not trained to look for situations in which 90% of the business actually does not exist. So they are looking at pieces of paper. And I think in a lot of cases, with China in particular, they are looking to make sure that the PRC GAAP is correctly translated in US or IFRS, as opposed to looking at the factory, making sure the factory production numbers are correctly translated into any financial statement.I: let’s talk for a second about the very very big picture for these companies you found problems with. Where does the blame really lie? Is it the company’s fault? Is it their auditor’s fault? Is it greedy stockholders in the US who are desperate to find good returns and are not doing their homework? Is it regulators? Who is really to blame for these problems? B: well, obviously, the person who is committing the fraud deserves the most blame. Secondarily, I think that there is a problem with the professional services sector that brings these companies to market—the bankers, the analysts, the lawyers, and the accountants, because right now the way it is set up is, …it’s like a hot potato of blame, they can all throw the hot potato to somebody else, and say “that company, or that role should have caught the fraud.” But at the end of the day, it seems like it is nobody’s responsibility.And that’s a problem.Chapter 5：Analysis: Media React to Facebook IPO Thinking about investing in Facebook? You may want to reconsider. The company has filed its IPO, but …It will still be a few months before Facebook stock hits the open market. And so far, many in the media don’t like what they see. CNET reports.“… how much growth potential is there in a company that already has 845 million users, per its filing? I don't doubt the company will be successful for a long time, but I suspect the days of hockey-stick growth are over. A wise man tells me often that you only make money by not doing what everyone else is doing.Even if I could invest in Facebook, something tells me it would only disappoint.”According to Facebook’s SEC filings, 85 percent of the company’s revenue comes from ad sales. On WebProNews, an analyst points out – some of those numbers are troubling investors.“They have 845 million average monthly average users. Of that, 450million are mobile users. The thing is –right now they don’t have any revenue from their mobile base and that base is increasing.”A former social media CEO explains to Al Jazeera –when start-ups go public – it is the end of true innovative risk-taking.“When you’re private you can get away with anything, you can build your business, you can make radical shifts. Mark has been adamant about making radical shifts and iterating and improving Facebook. I think once they’re public…” (FLASH :48-51) “If your stock dips at any point you may get burned and start taking fewer risks.”But CNBC’s Jim Cramer sees a lot of potential in Facebook stock, noting the company has big momentum right now.“Facebook at the right price could be the deal of the century. Now when I mention that, think of Google at the right price.”Still thinking about investing? Gizmodo explains, IPOs are not a democratic process and there’s a long, long line ahead o f you.“…in a big IPO, institutional investors(团体投资人) typically nab up to 90% of shares before Joe Investor can get involved. And chances are, there are plenty of Joe Investors with bigger wallets and better ins than you and I have. Shares will be available eventually, of course. Just as soon as the stock's risen enough that the big dogs feel comfortable cashing out.”Introduction to the final exam:There are 5 sections. About 30% of questions are from chapters 1-3, and the remaining from chapters 4-5.The sections include:1.T or F questions. There will be 10 statements and you shall decide ifthey are true or false. 20%2.Match the terms and concepts with their definition. There will be 10concepts and 10 definitions. 20%3.Choose appropriate words to fill in blanks. There will be 10 blanks and10 given words. 20%4.application of knowledge: this part is mainly related to chapters 3 and4. 20%5.reading: there will be one article and 10 questions based on thearticle. 20%Introduction to the final exam:There are 5 sections. About 30% of questions are from chapters 1-3, and the remaining from chapters 4-5.The sections include:6.T or F questions. There will be 10 statements and you shall decide ifthey are true or false. 20%7.Match the terms and concepts with their definition. There will be 10concepts and 10 definitions. 20%8.Choose appropriate words to fill in blanks. There will be 10 blanks and10 given words. 20%9.application of knowledge: this part is mainly related to chapters 3 and4. 20%10.r eading: there will be one article and 10 questions based on thearticle. 20%。