Домашнее задание: 3.5.7; 3.5.8

3.5.7

1. The purpose of (отчёт о прибылях и убытках) (sometimes called the earnings statement) is to report upon profitability of a business organization for a stated period of time. In accounting, profitability is measured by comparing the revenues generated in a period with the expenses incurred to produce those (доходы). Revenue is defined as inflow of assets resulting from the delivery of products or (предоставление услуг) to customers. Many firms earn their revenues by selling their customers (материальные товары), such as automobiles, office equipment, cameras, or paint. Others, called service firms or businesses, earn their revenues in the form of (взносы или комиссионные) by rendering various types of services to customers, such as the fees for the professional services rendered by accountants, architects, lawyers, or physicians or commissions from the sale of (страхование жизни, имущества от несчастного случая) or (недвижимость). Other types of services generate revenues for other firms – (заработанный процент)  by banks and small (заемные компании), the premiums received by (страховые компании), the admissions charged by theatres, or the rents collected by firms (владеющие) apartment buildings. The revenues earned are measured by (стоимость активов) customers are willing to surrender for the products or services received.

Expense is defined as the (жертва) made or the cost incurred (производить доходы). The expenses incurred can be classified into a number of categories that differ among firms. Common expense categories are (заработная плата и жалованье), (коммунальные услуги) (electricity, gas, oil, telephone, and water), insurance, taxes (both on property and on income or earnings), supplies used, (реклама), and interest. Expense is measured by the cost of the assets surrendered or consumed in serving customers. The process of comparing the revenues earned with the expenses incurred is referred to as matching. Expenses are matched against revenues (определить чистый доход). If revenues (превышать) expenses, net income results. If the reverse is true, the business is operating at a loss.

In a technical sense, the income statement is subordinate to the balance sheet. This is because it shows in some detail the items that collectively (объяснять) most of the period’s net change in only one balance sheet item, (нераспределенная прибыль). (“Most” excludes dividends as well as a few relatively unusual retained earnings changes). Nevertheless, the information on the income statement is regarded by many to be more important than information on the balance sheet. This is because the income statement reports the results of operations and indicates reasons for (прибыль организации) (or lack thereof).

The importance of the income statement is illustrated by this fact: in situations where accountants, in recording an event, must choose between a procedure that (искажать) the balance sheet or one that (искажать) the income statement, they usually choose not (искажать) the income statement.

In practice, there is (значительное разнообразие)  in the formats and degree of detail used in income statements. Less detailed income statements are published in (годовые отчеты корпораций) to their shareholders. Income statements prepared for the managers of an entity usually contain more detailed information.

The heading of a statement must show (1) the entity to which it relates, (2) the name of the statement, and (3) the time period covered. To provide the basis for comparison (Комиссия по ценным бумагам и биржам, США) requires that corporate annual reports contain income statements for the most recent years and balance sheets as of the end of the most recent two years.

Illustration 3.1.

PROFF COMPANY

Income Statement отчет о прибылях и убытках

For the Month of July 200X

Illustration 3.1 (содержать) the statement of the PROFF Company for the Month of July 20XX. It shows that revenues in the amount of $5,700 were generated by serving customers. Expenses for the month (достигать) $3,630, resulting in net income before taxes for the month of $2,070.

It is easy to determine from (балансовые отчет) and (отчет о прибылях и убытках) whether the issuing company was a merchandiser or a manufacturer.