.


:




:

































 

 

 

 


What does the ST consist of?




̲Ͳ ²

-

-

(- )

7050104 Գ, 7050106

 

 

, 2004 .

: ..,

 

(- ) 7050104 Գ, 7050106

 

" 12 " 02 2004 ., 6

 

 

: .., .

Ų, ,

..,

, ..

 

 

 

2 - , , .

24 , . , . , , (, ), , .

, , 7050104 (Գ) 7050106 ( ) . , , .

CONTENTS

p.5 State Treasury

p.7 Financial Institutions

p. 9 International Finance

p.13 Credit System

p.17 Taxes and Taxation

p.20 Securities

p.25 Bank Accounts

p.28 Financial Statements

p.30 Financial Statements at a Bank

p.32 Budget System

p.35 TheBanking System of Ukraine

p.37 The Bank of England

p.39 The Federal Reserve System

p.42 Bank Organization

p.44 Bank Services

p.47 Loans

p.50 Accounting (Parts & Systems)

p.53 Accounting (Categories & Areas)

p.56 Depositing Money with a Bank

p.59 Financial Accounting

p.60 Functions of Money

p.63 Financial Markets

p.66 Payment Methods in Foreign Trade

p.68 Managing Taxes

 

STATE TREASURY

 

The State Treasury (ST) is a system of the state executive power and acts under the Ministry of Finance.

The State Treasury consists of the Head Administration and its territorial organs in Autonomous Republic of Crimea, regions, cities of Kyiv and Sevastopol.

The ST is governed by the Constitution of Ukraine and Ukrainian legislation.

The ST maintains the fulfillment of the State Budget, and fulfills a lot of financial functions including managing funds, controlling them and using funds effectively. The functions that the State Treasury provides are:

managing funds available, including foreign currency as well as the state out-of-budget funds in the frames of the expenses fixed for the definite time period;

financing the expenses of the State Budget;

collecting funds, accounting (makes financial reports on the state and master budgets' fulfillment;

managing the state (home and foreign) debts according to the (valid) legislation in use;

controlling the receiving and use of the state

out-of-budget funds;

working out and adopting the forms of accounting and reporting documents, and the order of reporting on the fulfillment of the budgets of all levels.

The Head Administration is a managing body of the State Treasury. The Head Administration supervises territorial organs of the ST; manages revenues and expenses of the State Budget, deals in the budget funds available, including foreign currency. It forecasts cash flow, defines the amount of current use of funds in the frame of expenses fixed for a definite time period; shares total tax implications, fees and other charges between the state budget and the budgets of regions, cities and local state authorities; collects, summarizes, and analyses financial statements on the fulfillment of the state and master budgets, reports to Verkhovna Rada of Ukraine, the Government and the Ministry of Finance.

The State Treasury's organs have the right to open their accounts at any bank to control the revenues and expenses of the State Budget; to deal with transactions on placing the state securities (bonds), to clear them and paying profit.

The ST's organs have the right to check up accounting records as to the use of the state funds at any ministries, local organs of state administration, businesses and organizations.

 

Vocabulary:

executive power

to fulfill -

funds available

foreign currency

out-of-budget funds

budget -

home and foreign debt

revenue -

expense -

to forecast -

fee ,

to deal with sth

state securities

to check sth up

Questions:

What does the ST consist of?

2. What does the ST maintain?

3. What functions are provided by the ST?

4. What is managing body of the State Treasury? What functions does it perform?

5. Who does the Head Administration report to?

6. What rights have the State Treasury's organs?

 

FINANCIAL INSTITUTIONS

 

There are different types of financial institutions. They are mostly the same in all countries and act as financial intermediaries between savers and borrowers and present a payment mechanism. They perform two central functions: create different financial assets and liabilities, and provide specific financial services.

At the centre of the financial structure of any country is its central bank (in Ukraine it is the National bank of Ukraine, in the USA the Federal Reserve System, in Great Britain the Bank of England). The main function of a central bank is to accept responsibility for advising the government to make the country's financial policy, issue national currency, regulate money supply and supervise other financial institutions such as commercial and savings banks and non-bank financial institutions.

The Ukrainian banking system consists of 2 levels: central bank (the National bank of Ukraine), and commercial banks and the State Savings bank.

Commercial banks receive deposits from their customers and give different loans and other financial services to businesses and individuals: checking and savings accounts, ATM's, credit cards, travelers checks, and others; finance industry and commerce, sell and exchange foreign currencies, invest great amounts of money for the price known as interest rate.

The American banking system consists of 4 types of organizations: Federal Reserve System as the central bank of the country, commercial banks, savings and loan associations (home mortgages), and Credit Unions (the same services as commercial banks' ones).

Non-bank financial institutions are the same in all countries. They do not accept customer deposits, but they do offer many of the same services as regular banks. In business world there are 4 main types of non-bank financial institutions: life-insurance companies, credit unions, pension funds, brokerage firms, and commercial / consumer financial companies. All of them using their own or customers' funds make secured loans for business purposes charging high interest rate, invest money into conservative securities (bonds) or speculate securities (stocks and bonds) at the Exchange.

Most financial transactions take place by check through checking account, so most of money is in checking account balances. One-fourth of any country's money is in cash bills (notes-GB) and coins. People also use money substitutes: different credit cards, accepted by hotels, department stores and restaurants.

 

Vocabulary:

financial institution

intermediary -

assets

liabilities

to issue ( )

money supply ( )

deposit ,

ATM (automatic telling machine)

ommerce

interest rate

mortgage ,

insurance

secured loan

Questions:

1. What are the central functions of financial institutions?

2. What is at the centre of the financial structure of any country?

3. What are the levels of the Ukrainian banking system?

4. Speak about basic functions of commercial banks?

5. What organizations does the American banking system consist of?

6. What non-bank financial institutions do you know? What functions do they perform?

7. Enumerate all money substitutes you know.

 

THE INTERNATIONAL FINANCE

 

The history of the international financial system is a complex one. Throughout this century there has been an increase in international links through both trade flows and capital movements. This has led to a rise in the degree of interdependence between different countries. As a result, the form which the international financial system takes has become more important in influencing standards of living in all countries throughout the world.

Capital flows. The movements of capital between countries are classified either as current account movements or capital account movements. Current accounts movements mean paymentsfor imports and exports as well as the payment of interest and dividends. During any year a given country will have either surplus or a deficit of current account transactions. Capital account movements mean buying orselling of securities in one country by citizens of another country. Such transactions will also result in a net surplus or deficit for a given country. A net deficit of both current account and capital account transactions represents the net financial resources that have flowed out of the country; a net surplus represents the financial resources that have flowed into a country. Trading, nations have developed an accounting concept, called balance of payments, which records a country's trade and capital movement in relation to other countries. The part of the balance of payments which records imports and exports is called the trade balance. The 1998 USA balance of payments is said to be favorable, as it showed $72 billion surplus. Deficits, which are said to be unfavorable, have to be financed. Large deficits can have a disturbing effect on a country's national economy (as in Ukraine), and governments usually try to avoid them Deficits are financed by borrowing from international organizations or by shipping gold or foreign money to the surplus country abroad. If the deficit has been financed and the surplus lent, the balance of payment is said to be in balance. Countries with a deficit are called debtor nations. Countries with a surplus are called creditor nations.

Fluctuations in foreign currency exchange rates All financial and economic transactions between countries are measured in terms of money. But each country has its own currency (dollars, marks, francs, etc.) in which it will demand payment for net surpluses. The value of one currency relative to another depends on which country has a net deficit to the other. If Germany, for example, has a net surplus to Ukraine, the value of the German mark will rise relative to the hryvnia. This relative value is indicated by the exchange rate, which represents the cost of oneunit of a given currency in termsof another. Exchange rates fluctuate over time depending on changes in the net deficit and surpluses of different countries. These fluctuations influence future deficits and surpluses if, for example, Germany has a net deficit to Japan, the value of the mark will fall relative to the value of yen. It will take then more marksto buy yen and more marks for Germans to buy Japanese goods, causing German imports of Japanese goods to decline. The exchange rate is important because of its role in restoring a balance between deficit and surpluses. In different countries capital movementsare the field of exchange rate movements giving rise to interest rate (securities and currencies transactions at different stock exchanges). The next field of the international finance is methods of payment that are agreed between the buyer and the seller (a. payment in advance, b. different types of letters of credit, c. payment upon shipment of the goods, d. documentary collections, e. open account); and the instrument (where instructions are written) by which the payment is made that is the method of settlement (payment by check, bank transfer, SWIFT, draft, bank money order, TT (telegraphic transfer), MT (mail transfer), Bill of Exchange). And at last, financial institutions act as financial intermediaries between potential lenders (savers) and potential borrowers. These institutions may be classified in a number of different ways:

by nature of the business transacted (banking, insurance, stock broking);

by the source and use of funds (local, foreign, demand or savings deposits);

by ownership (private or public, that is state owned or local/foreign);

by the nature of the market and the end use (retail or wholesale).

 

Vocabulary:

trade flow

interdependence

standard of living

current account movements ()

capital account movements ()

net

surplus ,

(un)favorable ()

disturbing effect ()

shipping ,

to lend (lent; lent)

debtor ,

to restore

payment in advance ,

letter of credit (LC; L/C; LOC)

open account (, )

instrument ;

method of settlement ()

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

draft

Bill of Exchange

demand deposit ,

savings deposit

 

Questions:

1. What can you say about the history of the international financial system?

2. Speak about capital flows. How are they classified?

3. What accounting concept have nations developed?

4. How are the deficits financed?

5. What terms are economic and financial transactions measured in? Explain how it happens.

6. What are the fields of exchange rate movements?

7. What methods of payment do you know?

8. Enumerate all methods of settlement by which the payments are made.

9. How may financial institutions be classified?

CREDIT SYSTEM

 

The credit-financial system of a country performs two central functions: it creates different financial assets and liabilities and provides specific financial services. This system is a set of markets and institutions embracing: a payments mechanism; the borrowing and lending of funds; the creation of financial assets and liabilities with different characteristics with respect to marketability, maturity, liquidity, etc.; the provision of specific financial services such as insurance, pension arrangements; markets to enable wealth holders to adjust the volumes and structure of their portfolio of assets and liabilities. Credit-financial systems can perform these roles in various ways, and they are done differently as between different countries and within the same country at different times.

All banking operations and the methods of controlling them are part of the credit system of the country. Banks and other financial institutions fulfill the role of financial intermediation between the savers and investors. The state of business activities in any country greatly depends on the credit system.

Credit is trust in the borrower's promise to repay a loan; or transferring ownership from one party to another, or buying goods today but paying for them sometime in the future.

There are different classes of credit:

Commercial credit (businesses give to one another to finance production, trade and distribution). This class of credit is sometimes called trade credit. This means that a business is able to buy goods and services today and pay for them sometime in future. When a firm buys goods, it receives an invoice (proforma-invoice, bill). It often contains terms such as 2/10, net 30 This means that the buyer can take a 2 percent discount for paying within 10 days. The total invoice is due in 30 days if the discount is not taken. It is important for the finance manager to pay attention to such discounts, because the firm would lose 2 percent for every 20-day period if it doesn't pay its bills earlier (36 percent a year);

Investment credit (businesses use to finance their construction, equipment, bonds issue);

Bank credit (secured and unsecured loans, overdrafts, factoring, credit cards, so on);

Consumer or personal credit (buying goods and services for personal use). At present we notice a rapid growth in consumer credit that is lending to people so they can buy things if they promise to repay the money later. This is done now by plastic money, or credit card. With a credit card you receive credit from a number of shops and department stores, just by filling in some simple forms.

Real-estate credit (buying or building property mortgage). Mortgage is a loan for buying or building some property (e.g. a house) and the property itself is used as collateral for the lender. If the borrower fails to repay the loan the lender transfers the ownership for the property to itself;

Public or government credit (bonds issued by government). These bonds are considered to be the conservative ones, as they are backed (secured) by the government, their interest rate is stable and they are attractive to businesses;

International credit (is given by other governments or by international banks such as the International Bank for Reconstruction and Development).

Credit is made for a price, known as interest. Interest rate is changeable; it depends on the risk, demand and supply of credit.

Vocabulary:

assets and liabilities

to provide services

to embrace

to lend (lent; lent)

with respect to ...

marketability ,

maturity ,

to fulfill

intermediation

commercial credit ,

invoice -

discount

construction

secured/unsecured loan /

overdraft ,

factoring ,

rapid growth

mortgage

collateral , ,

bond

interest

interest rate

Questions:

1. What two central functions does the credit-financial system of a country perform?

2. What does this system embrace?

3. Who fulfills the role of financial intermediation between the savers and investors?

4. What is credit? What types/classes of credit do you know?

5. What are the peculiarities of commercial credit?

6. What is the difference between bank credit and real-estate credit?

7. What is interest? Is interest rate changeable?

 

TAXES & TAXATION

 

Taxation is a system of compulsory contributions levied by a government on persons (people), businesses, and property used as a source for government expenses and other public services.

For many years, the government tries to raise taxes to fund more and more social and defence programmes. Besides, government at every level is financed through the collection of taxes. Under state and local laws organizations and individuals are required to compute their tax liability, complete the necessary forms, and pay the taxes due. Many features of taxation, both in the imposition and collection of taxes, are the same in many countries. Governments expenses are growing, so, their need in money is big.

Under state and local laws, businesses and individuals pay many kinds of taxes: state and city income taxes (individuals pay graduated income taxes), social insurance and other payroll taxes, employment taxes, real-estate taxes. Businesses pay taxes on profits and capital, turnover taxes, export/import taxes, excise taxes and, of course, value-added taxes.

Managing taxes means tax implications of all financial transactions. Every business tries to minimize its taxes, so tax accounting has developed into one of the most important branches of accounting throughout the world. Many businesses pay over 50% of their net income to the state government in the form of income taxes, and the rest taxes cover the next 30-40%. So, careful planning designed to decrease the tax liability to the lowest level is thus a major concern of a business. On the other hand, tax computation is under strict scrutiny of Tax Administration.

The fiscal system of Ukraine includes taxes, other compulsory payments to the budget and state purpose oriented funds. The system of taxes includes general state and local taxes and duties. General state taxes: payments with the same mechanism of performance all over the territory of Ukraine (single dates of payment, benefits, and rates). They include value-added tax, excise duty, income tax of citizens, enterprise income tax, land tax, fiscal licence tax, tax on the owners of vehicles; compulsory state pension insurance, charges to state innovation fund, etc. Each council (Rada) possesses the right to independently determine benefits, rates and dates of local payments. The local taxes and duties include advertising tax, rates, hotel duties, parking tax, tax for issuing a release for location of trade and service objects, tax for the right to use local symbolism.

It has been announced by legislation that the fiscal system of Ukraine is based on the following principles: the promotion of production business activities; liability (act under state compulsion); equality; stability; principle of social justice; equivalence and proportionality; compensation. The value-added tax (VAT) is an indirect tax added to the price of goods, works, or services for sale on the territory of Ukraine, import or export.

Managing taxes is made possible by various provisions in the tax laws that offer alternative methods for handling particular transactions or accounting procedures. One alternative way thus has a significant tax advantage over another, resulting in a tax saving.

A well-known saying holds that nothing is certain but death and taxes. Unhappily, governments are often responsible for the former, but they are virtually always the source of the latter.

 

Vocabulary:

taxation

compulsory ,

to levy , ()

under the law

graduated tax

income tax

payroll tax

employment tax

real-estate tax /

excise tax

value-added tax (VAT) ( )

net income

tax liability

to be under strict scrutiny of

purpose oriented fund

duty

vehicle

legislation

to be responsible for sth ...

the former ( )

the latter ( )

 

Questions:

1. What is taxation?

2. Why does the government try to raise taxes?

3. What taxes do businesses and individuals pay?

4. What does managing taxes mean? Why is it important?

5. What taxes does the fiscal system of Ukraine include?

6. What general state taxes and local taxes and duties do you know?

7. What principles is the fiscal system of Ukraine based on?

8. How is managing taxes made possible?

SECURITIES

Security is an instrument that signifies (I) an ownership position in a corporation (a stock), (2) a creditor relationship with a corporation or governmental body (a bond), or (3) rights to ownership such as those represented by an option, subscription right, and subscription warrant.

People who own stocks and bonds are referred to as investors or stockholders (shareholders) and bondholders. In other words, a share of stock is share of a business. When you hold a stock in a business you are part owner of the business. As a proof of ownership you may ask for a certificate with your name and the number of shares you hold. By law, no one under 18 (in other countries under 21) can buy or sell stock, but they can own stock if kept in trust for them by an adult.

A bond represents a promise by the company or government to pay back a loan plus a certain amount of interest over a definite period of time.

Stocks are defined as common stocks and preferred stocks and are listed for trading on different stock, commodity, currency, and other exchanges.

Common stocks (GB ordinary share) are shares of ownership in a business (corporation). A business (corporation) is a separate legal entity that is responsible for its own debts and obligations. The individual owners of the business are not liable for the corporation's obligations. This concept, known as limited liability, has made possible the growth of giant corporations. It has allowed millions of stockholders to feel secure in their position as owners of a business. All that they have risked is what they paid for their shares. A stockholder has certain basic rights in proportion to the number of shares he or she owns. A stockholder has the right to vote for the election of directors, who control the company and appoint management. If the company makes profits a stockholder has a right to receive his proportionate share of dividends. And if the business is sold or liquidates, he has a right to his proportionate share of the proceeds. Many investors are looking for growth stocks (that are clearly growing).

A preferred stock (GB preference share) is a stock which is similar to a bond; but a preferred stockholder is entitled to dividends at a specific rate, and these dividends must be paid before any dividends can be paid on the company's common stock. In most cases the preferred dividend is cumulative, which means that if it isn't paid in a given year, it is owed by the company to the preferred stockholder. If the company is sold or liquidates, the preferred stockholders have a claim on a certain portion of the assets ahead of the common stockholders. But while a bond has a certain maturity date, a preferred stock is ordinarily a permanent part of the company's capital structure and is entitled to the fixed dividend and no more.

Bonds. Unlike a stock, a bond is evidence not of ownership, but of a loan to a company (or to a government). It is a debt obligation. When you buy a corporate bond, you have bought a portion of a large loan, and your rights are those of a lender. You are entitled to interest payments at a specified rate, and to repayment of the full "face amount" of the bond on a specific date. The fixed interest payments are usually made semiannually. The quality of a bond depends on the financial strength of the issuing corporation. In the USA the Government issues U.S. Treasury bonds (long-term), notes (intermediate-term) and bills (short-term), as well as obligations of the various U.S. government agencies.

Convertible bond (or convertible debenture) is a corporate bond that can be converted into the company's common stock under certain terms. These securities are intended to combine the reduced risk of a bond or a preferred stock with the advantage of conversion to common stock if the company is successful.

Options. An option is a piece of paper that gives you right to buy or sell a given security at a specified price for a specified period of time. A call is an option to buy; a put is an option to sell. In simplest form, it is an extremely popular way to speculate on the expectation that the price of a stock will go up or down.

Rights. When a company wants to sell new securities to raise additional capital, it often gives its stockholders rights to buy the new securities at an attractive price. The right is in the nature of an option to buy, with a very short life.

Warrants. A warrant resembles a right in that it is issued by a company and gives the holder the option of buying the stock (or other security) of the company from the company itself for a specified price. But a warrant has a longer life often several years, sometimes without limit. As with rights, warrants are negotiable (that is, they can be sold by the owner to smb else), and several warrants are traded on the major exchanges.

Commodities and Financial Futures. Futures are contracts for delivery of certain goods or for a payment at a specified future date. Like options, financial futures can be used for protective purposes as well as for speculation, which is the area for professionals and investors.

 

Vocabulary:

option ,

subscription warrant /

stockholder (shareholder)

bondholder

to keep sth in trust for sb

common stocks

to be listed for trading ,

stock / commodity / currency exchange / /

legal entity

to be liable for the corporation's obligations

proceeds ,

preferred stock (GB preference share)

to be entitled to sth ...

cumulative ,

claim ,

maturity date , ;

debt obligation

lender

face amount/value

US Treasury bonds (T-bonds) ( 10 ) ()

US Treasury notes (T-notes) ( 10 ) ()

US Treasury bills (T-bills) ( 13, 26 52 ) ()

convertible bond (or convertible debenture) ; , -

call ;

put ;

rights (. )

to raise capital ,

warrant , ,

to be negotiable

commodities and financial futures

Questions:

1. What is a security?

2. How are the people who own stocks and bonds

3. referred to? What are their rights?

4. What is the difference between bonds and stocks?

5. Speak about common stocks (GB ordinary share).

6. How does a preferred stock (GB preference share) differ from common stocks (GB ordinary share)?

7. What bonds does the US Treasury issue?

8. What is a convertible bond (or convertible debenture)?

9. What are the peculiarities of an option?

10. What is the difference between options, warrants and rights?

11. Explain what futures are.

 

BANK ACCOUNTS

 

There are two reasons for using bank accounts: convenience and safety in money use provided by a current account (US: checking account) at a bank; and small but regular interest that is provided by a deposit account (US: savings account) if you want to save your money for a long period of time.

The checking account is an account for receiving money from other people (wages and salaries paid into the account or different amounts of money received from the customers). It is money that a customer deposits in order to use that money to write checks, so it is the account for paying your bills, rent, subscriptions and other expenses. If you keep your money in your checking account you can go shopping without having to carry cash around with you. When you want to make a payment you simply fill in the amount on a check and hand it together with your check card to the cashier in the shop.

A checking account holder can use all banking services: send money abroad, buy and sell stocks, place standing orders or authorize direct debits, and of course, to apply for an overdraft or other loans. Checking account is called demand deposit, that is a customer can withdraw the money without waiting for any time.

The savings account is the account for money that you do not need for day-to-day expenses and want to save it and to receive some interest. When you open your savings account you receive a passbook or savings book. Every deposit or withdrawal is entered into it by a teller. So you have a complete written record of all transactions with your account. The interest that your money earns is also recorded.

Any money put into your savings account begins earning interest from the day it was deposited. The interest rate can vary from time to time according to the market rate. You can pay money into your savings account at any branch of the bank.

There is a variety of a deposit account time deposit (or certificate of deposit CD) which allows customers to deposit larger amounts of money for a definite fixed term and earns a higher rate of interest. If you withdraw your money beforehand you will lose your interest rate.

Savings account is free of charge; it earns interest to its holder, so that makes it profitable for customers.

But checking accountcharges different fees for bookkeeping of the account, service charges for different transactions. Every month a checking account holder receives a monthly statement telling him exactly what has been debited or credited to his account.

There are new accounts NOW and Super NOW accounts that offer their customers all the convenience of a checking account with the income advantages of a savings account.

Vocabulary:

convenience

current account (US: checking account)

deposit account (US: savings account)

wages (, , )

salary ( )

subscriptions

cash

standing order

direct debit , ()

demand deposit ,

day-to-day expenses

to withdraw (withdrew; withdrawn)

free of charge

fee

statement

NOW (negotiable order of withdrawal) account ( )

Questions:

1. What are the reasons for using bank accounts?

2. How do we call an account for receiving money from other people? What are its peculiarities?

3. What is the savings account? How do people make use of it?

4. What variety of deposit account do you know?

5. What new accounts do you know? How do they differ from other accounts?

 

FINANCIAL STATEMENTS

 

The final products of accounting are financial statements. Financial statements are means of communicating important accounting information to users: Management, banks, State Administration, Tax Authorities, suppliers, customers, investors. They show the business in financial terms.

Four major financial statements are used to communicate accounting information about a business: the Income Statement, the Statement of Owner's Equity, the Balance Sheet, and the Statement of Cash Flow. The Income Statement, the Statement of Owner's Equity and the Statement of Cash Flow give the time period (month, quarter, year), but the Balance Sheet gives the specific date to which it applies e.g. December 31.

The main financial statements are the Income Statement and the Balance Sheet.

The Income Statement shows financial position of a business over a definite period of time. It summarizes the revenues earned and expenses paid by a business over a period of time. Many people consider it the most important financial report because it shows whether a business received profit or lost money. So, its main formula is: Revenues Expenses = Gross Profit or Loss. Gross profit is profit before taxes. In Great Britain this statement is called Profit and Loss Account.

The Balance Sheet shows the financial position of a business on a certain date, usually the end of the month or year. For this reason, it often is called the statement of financial position and is dated as of a certain date. The Balance Sheet presents the quantity (in money measure) of business's assets, liabilities and owner's equity (capital). The accounting equation of the Balance Sheet is: Assets = Owner's equity + Liabilities

It can be seen that the two sides of the equation will have the same totals. This is because we are dealing with the same thing from two different points of view. The actual assets, liabilities and capital may change, but the equality of assets with that of the total of capital and liabilities will always hold true.

 

Vocabulary:

financial statement

Income Statement ( )

Statement of Owner's Equity ()

Balance Sheet

Statement of Cash Flow ( )

revenue

expenses ,

gross profit

equation

point of view

Questions:

  1. What are the final products of accounting?
  2. Who are the users of accounting information?
  3. How many major financial statements are used in business? Enumerate them.
  4. What does the Income Statement show? What is its main formula?
  5. The Balance Sheet is often called the statement of financial position. Why?
  6. What is the accounting equation of the Balance Sheet?




:


: 2016-10-06; !; : 390 |


:

:

: , .
==> ...

1322 - | 933 -


© 2015-2024 lektsii.org - -

: 0.311 .