- •Levon Gzokyan ● Business & English ● Unit 4
- •Financial statements
- •Balance sheet
- •Transaction 2, Loan from bank.
- •Transaction 3, Acquire store equipment for cash.
- •Transaction 4, Purchase inventory for cash
- •Transaction 5, Purchase inventory on credit
- •Transaction 6, Purchase inventory for cash plus credit
- •Transaction 7, Sale of asset for cash
- •Transaction 8, Return of inventory to supplier
- •Transaction 9, Payment to creditor
- •Transaction 10, Purchase car (to be analyzed entirely by you)
- •Transaction 11, Sales on open account, January 17
- •Transaction 12, Collection of accounts receivable, February 3
- •Cash flow statement
- •Which of the following investing activities increase/decrease cash:
- •See ‘Battle Point’ in unit 3 for instructions.
Which of the following investing activities increase/decrease cash:
Purchase fixed assets by issuing debt
Sell fixed assets for cash
Collect a loan
Purchase equipment for cash
‘TRANSLATION-2’ POINT
►Translate the cash flow statement below into Russian:
Operating activities |
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Net earnings |
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Xxx |
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Adjustments to reconcile to cash provided by operations |
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Depreciation and amortization |
Xxx |
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Net decrease in accounts receivable |
Xxx |
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Net decrease in inventory |
Xxx |
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Prepaid expenses |
Xxx |
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Accounts payable |
Xxx |
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Taxes and other liabilities |
Xxx |
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Net cash provided by operating activities |
Xxx |
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Investing activities |
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Purchase of fixed assets |
Xxx |
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Acquisitions of businesses |
Xxx |
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Sales of businesses and property |
Xxx |
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Net cash used for investing activities |
Xxx |
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Financing activities |
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Reductions of notes payable |
Xxx |
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Issuances of notes payable |
Xxx |
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Reductions of long-term debt |
Xxx |
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Net issuances of common stock |
Xxx |
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Cash dividends |
Xxx |
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Net cash used in financing activities |
Xxx |
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Net increase (decrease) in cash |
Xxx |
‘PUZZLE-5’ POINT
►Classify each term from the box under the appropriate heading:
land accounts receivable accounts payable
owners’ investment cash merchandise inventory
prepaid rent retained earnings plant and property
long-term debt intangible assets paid-in capital
depreciation loans receivable prepaid advertising
premium on common stock goodwill common stock bank overdraft income tax payable
Assets |
Liabilities |
Capital |
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‘PUZZLE-6’ POINT
►Fill in the blanks with the accounting terms from the box:
assets (4) liabilities (2) liability (2) capital (5) income (2) expense year or period balance sheet merchandise inventory note payable or promissory note |
The accounting equation is ________________=_________________+__________________.
Items owned by a business that have monetary value are ______________________________________________________.
_______________________________ is the interest of the owners in a business.
Money owed to an outsider is a(n) __________________________.
The difference between assets and liabilities is ________________ ______________________________________________________.
An investment in the business increases _____________________ _________________________ and_________________________.
To purchase ‘on open account’ is to create a (an) ______________ ______________________________________________________.
The statement that shows net income for the period is known as the ______________________________________________ statement.
Two groups of items that make up the income statement are ______ ________________________ and __________________________.
Assets must equal _______________________________________.
Expense and income must be matched in the same _____________ ______________________________________________________.
Merchandise inventory appears as a(n) ______________________ in the ________________________________________________.
The only account figure that appears on both the income statement and balance sheet is _____________________________________.
A written promise to pay a creditor an amount of money in the future is known as ______________________________________.
‘SUMMARY’ POINT
►Translate the phrases below into Russian and make them stick in your mind:
fixed costs
variable costs
current/noncurrent assets or liabilities
start-up costs
running costs
breakeven point
calculate costs
contribution
financial statement
balance sheet
income statement
cash flow statement
accounts receivable/payable
owners’/shareholders’ equity
paid-in capital
retained earnings
cash and cash equivalents
inventory
long-lived assets
tangible/intangible assets
trademark
goodwill
a promissory note
notes payable
net revenue\earnings
deduct expenses
deduct expenses from revenue
fall/be due
convert to/into cash
buy/sell on open account
‘BATTLE’ POINT
►Team up with your classmate and start to develop your arguments about the following statements:
Financial accounting – that is what really does count. Management accounting is a waste of time.
What is cash flow statement for? Balance sheet and income statement are more than enough for accounting purposes.