- •Accounting and Finance
- •080114 «Экономика и бухгалтерский учет» очной и заочной формы обучения по дисциплине «Английский язык»
- •Accounting Money
- •In groups ask and answer the following questions
- •Interpreting
- •Company
- •In the box below, make a list of all your own assets.
- •In a group discuss the different sources from which a business could borrow money and write them in the box below.
- •The Accounting Equation
- •Company
- •Financial Statements
Company
The owner puts money into
the company.
The company has an obligation to pay money back to the owner
Proprietorship or Owner's Equity
Proprietorship Proprietorship is the amount of the owner's interest or investment in the business."
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When an owner or a group of owners want to start a business they often use some of their own money to do this. This money is called Proprietorship. Proprietorship can also be called Owner's Equity or Stockholder's Equity. As
mentioned above this money must be paid back to the owners one day. It is money the company owes to the owners. Owners can also contribute other assets such as vehicles, buildings and land to the company
Assets
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Assets
Assets represent everything of value that a business owns
In order to know how well an organization is doing financially, accountants examine the value of the things it owns. Even though a company may not have much cash, it may still be a strong business if it owns a lot of things that can be sold for money.
Company
Make a list of the assets a regional branch of a soft drink factory might own
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Assets
In the box below, make a list of all your own assets.
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My Assets
Match the following assets with their definitions.
Assets |
Definition | |||
1 |
Cash at bank |
|
a |
Furniture items and equipment that a company has bought |
2 |
Motor vehicles |
|
b |
Goods that a company has that are waiting to be used or sold |
3 |
Buildings/Premises
|
|
c |
Money owed to the company for such things as credit sales |
4 |
Inventories |
|
d |
Land a company has bought |
5 |
Furniture and equipment |
|
e |
Money that a company has deposited in a bank |
6 |
Land |
|
f |
Buildings such as offices, factories or warehouses that a company has bought |
7 |
Accounts receivable
|
|
g |
Cars, trucks and buses that a company has bought |
Classification of Assets
Assets can be divided into two types. Current assets and fixed assets
Current Assets Current assets are cash or items that can be converted into cash in a short period. Fixed Assets Fixed assets are large items that are not easily converted into cash and which are used by accompany over a long period. |
Current Assets (CA) Fixed Assets (FA)
___________________
__________________
___________________
__________________
___________________
__________________
Liabilities
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Liabilities
Liabilities represent all the money (debts) that a business owes at a particular time.
Even if a company has a lot of cash and other assets, it may not be in a good financial position if it has borrowed a large amount of money from other people or organizations. Accountants therefore pay careful attention to how much a business owes or what its liabilities are.