- •Unit 1 Why start a business?
- •Vocabulary
- •Why start a business?
- •What is planning?
- •2) What information do you think a business plan must represent? Reading
- •Contents of a business plan
- •What should be in the plan?
- •Business plan
- •Vocabulary
- •Text 4 Starting a new business
- •Vocabulary
- •Financial activities and their management
- •Vice – President for Finance
- •Vocabulary
- •Specify the subject of the piece of writing:
- •Point out the purpose of the piece of writing:
- •Present the main points of the piece of writing:
- •Give your opinion of the piece of writing:
- •Vocabulary
- •Forms of business in the United Kingdom.
- •Sole trader
- •The public sector of the economy.
- •Vocabulary
- •Can you answer the following questions?
- •Introduction to accounting
- •Vocabulary
- •Assets and liabilities
- •Current Fixed assets
- •Vehicles
- •Investments
- •Balance sheet
- •Financial statements
- •Value added statement
- •Vocabulary
- •Valuation of assets
- •Vocabulary
- •Valuation of stock
- •Vocabulary
- •Variable costs
- •Indirect costs
- •Imputed costs
- •Costing and decision making
- •Vocabulary
- •Costing methods
- •Vocabulary
- •The use of funds
- •Vocabulary
- •Sources of finance
- •Borrowing
- •Other sources of funds
- •Management of working capital
- •Vocabulary
- •Money and its functions
- •Nebraska
- •Florida
- •Vocabulary
- •Banks and banking
- •Bank credit
- •Why are companies referred to as ltd., inc., gmbh, or s.A.?
- •The strategy of a company
- •Financial forecasting
- •Careers in finance
- •What is accounting?
- •Financial accounting
- •Business documents
- •Main streets store, inc
- •Main street store, inc Statement of Cash Flows For the Year Ended August 31, 20 XX
- •The ассоunt
- •Title of account Debit | Credit
- •Types of account
- •Classical economics
- •Keynesian economics (Part I)
- •Keynesian economics (Part II)
- •The importance of the rate of monetary growth
- •The basic propositions of monetarism (Part I)
- •The basic propositions of monetarism (Part II)
- •The monetary rule
- •The decline of monetarism
- •Supply-side economics (Part I)
- •(Part II) The Saving and Investment Effect
- •Supply - side economics (Part III) The Elimination of Productive Market Exchanges
- •Rational expectations theory
- •Government finance
- •Government Growth: Purchases and Transfers
- •Tax rates
- •Taxation
- •Types of taxes
- •Sources of federal revenue
- •Sources of State and Local Revenue
- •Tapescripts
- •Glossary
- •Indirect costs
- •Investment
Main street store, inc Statement of Cash Flows For the Year Ended August 31, 20 XX
Cash flow operating activities:
Net income. . 18,000
Add (deduct) items not affecting cash:
Depreciation expense 4,000
Increase in accounts receivable 80,000
Increase in merchandise inventory (170,000)
Increase in current liabilities 67,000
Net cash used by operating activities 161,000
Cash flow investing activities:
Cash paid for equipment 40,000
Cash flows from financing activities:
Cash received from issue of long-term debt 50,000
Cash received from sale of common stock 190,000
Payment of cash dividend on common stock 5,000
Net cash provided by financing activities 235,000
Net increase in cash for the year 34,000
Good record keeping by a business is not only wise but is required by law. Legal and financial questions may be raised by various agencies, banks, and employees. The questions may be accurately answered when written records of business proceedings are kept. By recording daily transactions, the owner can learn from mistakes and avoid errors in the future. Even if profits are not distributed to shareholders, any organization needs a P&L to account for its activities to see whether it is being efficiently and honestly run.
8.2. Find in the text and write down English equivalents of the following words and phrases:
фінансовий звіт за певний період
баланс, балансовий звіт
звіт про доходи
звіт про власний акціонерний капітал
звіт про приплив грошових надходжень
знімок
маркіровані активи
претензія, зазіхання на
оборотний капітал
рахунки на утримання
список товарів
акумульовані списання
рахунки до сплати
накопичені зобов’язання, нараховані зобов’язання
звіт про прибутки та збитки
продуктивність, ефективність
чистий доход, чистий прибуток
відбуватися, траплятися
виникати, з’являтися
впливати, діяти
виключати, вилучати
амортизаційні відрахування
звичайна акція
плата готівкою без знижки
робота, справи
звітувати про щось
8.3. Answer the questions:
What is a financial statement?
What are the main financial statements?
What do they show?
8.4. Write the definitions of the following terms:
financial statement
balance sheet
income statement
statement of owner's equity
statement of cash flow
8.5. Translate the specimen Balance Sheet and Statement of Cash Flows (p. 101 - 102) in written form.
9.1. Read text 9
TEXT 9
The ассоunt
The raw data of accounting are the business transactions. A business may be engaged in thousands of transactions during a period of time. The data in these transactions must be classified and summarized before becoming useful information. Making the accountant's task somewhat easier is the fact that most business transactions are repetitive in nature and can be classified into groups having common characteristics.
An account is an element in an accounting system that is used to classify and summarize money measurements of business activities of a similar nature. An account is set up whenever it is necessary to provide useful information about a particular business item. The number of accounts in a company's accounting system depends on the information needed by those interested in the business.
Accountants may differ on the account title (or name) they give for the same item. The account title should be logical to help the accountant group similar transactions into the same account. Once an account is given a title, that same title must be used throughout the accounting records.
Accounts may take on a variety of formats. Some accounts are printed, and entries are written in by hand; others are on magnetic tape, and "invisible" entries are encoded by a computer. Every account format must provide for increases and decreases in the item for which the account was established. Once a business even is recognized as a business transaction, it is analyzed to determine its increase or decrease effect on the assets, liabilities, owner's equity, revenues, or expenses of the business. These increase or decrease effects are then translated into debits and credits. Then the account balance (the difference between the increases and decreases) can be determined.
In each business transaction is the activity that is recorded. The total dollar amount of debits must equal the total dollars amount of credits. The accounting requirement that each transaction must be recorded by an entry that has equal debits and credits is called duality. This double entry procedure keeps the accounting equation Assets=Liabilities - Owner's equity - in balance.
To understand how the increases and decreases in an account are recorded, accountants use the T-account, which derives its name from the fact that it looks like the letter T. The title (name) of the item accounted for, such as cash, is written across the top of the T. Increases are recorded on one side of the vertical line of the T, and decreases on the other side, depending on the type of account. A T-account appears as follows: