Реферат: Financial Planing

Unit 4

Financial planning (like allplanning) begins with the establishment of goals and objectives. Next, planners must assign costs to these goals and objectives. Thatis, they must determine how much money is needed to accomplish each one. Finally, financial planners must identify availablesources of financing and decide which to use. In the process, they must make sure that financing needs are realistic and thatsufficient funding is available to meet those needs.

THREE STEPS OFFINANCIAL PLANNING

1. EstablishingOrganizational Goals and Objectives. Establishing goals and objectives is an important management task. A goalis an end state that the organization wants to achieve. Objectives are specific statements detailing what the organization intends to accomplish within acertain period of time. If goals and objectives are not specific and measurable, they cannot be translated into costs, and financialplanning cannot proceed. They must also be realistic. Otherwise, it may be impossible to finance or achieve them.

2. Budgeting forFinancial Needs. A budget is a financial statement that projects incomeand/or expenditures over a specified future period of time. Once planners know what the firm's goals and objectives are for aspecific period of time — say, the next calendar year- they can estimate thevarious costs the firm will incur and the revenues it will receive. By combining these items into a companywidebudget, financial planners can determine whether they must seek additional funding from sources outside the firm.

Usually the budgeting processbegins with the construction of individual budgets for sales and for each of the various types of expenses: production, humanresources, promotion, administration, and so on. Budgeting accuracy is improved when budgets are first constructed for individualdepartments and for shorter periods of time. These budgets can easily be combined into a com-

panywidecash budget. In addition, departmental budgets can help managers monitor andevaluate financial performance throughout the period covered by the overall cash budget.

Most firms today use one of twoapproaches to budgeting. In the traditional approach, each new budget is based on the dollar amounts contained in the budgetfor the preceding year. These amounts are modified to reflect any revised goals, and managers must justify only newexpenditures. The problem with this approach is that it leaves room for themanipulation of budget items to protect the (sometimes selfish) interests of the budgeter or his or her department.

This problem is essentiallyeliminated through zero-base budgeting.

Zero-base budgeting is a budgeting approach in which every expense must be justified in every budget. Itcan dramatically reduceunnecessary spending. However, some managers feel that zero-base budgetingrequires too much time-consuming paperwork.

3. Identifying Sourcesof Funds. The fourprimary sources of funds are sales revenue, equity capital, debt capital,and the sale of assets. Future sales generally provide the greatest part of a firm's financing.

Sales revenue is the first type of funding.

The second type of funding isequity capital, which is money received from the sale of shares of ownership in the business. Equity capital is used almostexclusively for long-term financing. Thus it might be used to start a business and to fund expansions or mergers. It would not beconsidered for short-term financing needs.

The third type of funding is debtcapital, which is money obtained through loans. Debt capital may be borrowed for either short- or long-term use.

The fourth type of funding is the sale of assets. A firm generally acquires assets because itneeds them for its business operations. Therefore, selling assets is a drastic step. However, it may

be a reasonable last resort when neither equitycapital nor debt capital can befound. Assets may also be sold when they are no longer needed.

MONITORING ANDEVALUATING FINANCIAL PERFORMANCE

It is important to ensure thatfinancial plans are being implemented and to catch minor problems before theybecome major problems.Accordingly, the financial manager should establish a means of monitoring and evaluating financialperformance. Interim budgets(weekly, monthly, or quarterly) may be prepared for comparison purposes. These comparisons point upareas that requireadditional or revised planning.

Exercises

I. Translate into Russian.

Basis of financialmanagement; goal; objective; sources of fi
nancing; funding; step; important task;financial performance;
budgeting; expenditure; revenue; sales revenue; equity capital;
debt capital;specific period; profit; assets; short-term borrowing;
long-term borrowing;merger; companywide budget; cash budget;
zero-base budgeting;income; source; share of ownership; assign
a cost; justify; meet needs; obtain; implement; modify; establish;
reduce; determine;evaluate. !:

II. Find the English equivalents.

Финансовый план; бюджет; составление бюджета; наличный бюджет; бюджет всей компании; промежуточный бюджет; доход (годовой); доход; доход от продаж; заемный капитал; работа фирмы; активы; бюджетная статья; расход; источник денежных средств; доля собственности; акционерный капитал; средство; последнее спасительное средство; радикальный шаг; финансовая деятельность; определять стоимость; решать; оценивать; оправдывать; осуществлять; удовлетворять потребности; нести издержки; финансировать; занимать (брать в долг).

III. Fill in the blanks.

1. Financialplanning begins with the establishment of ...and

2. A budget is a financial statementthat projects … and/or … over a specified future period of time.

3. Usually the budgeting processbegins with the construction of individual budgets for each of the various types of ....

4. Budgeting accuracy is improvedwhen budgets are first constructed for individual ...for shorter periods of time.

5. Departmental budgets can helpmanagers … . and financial performancethroughout the period covered by the overall cash budget.

6. In the traditional approach,each new budget is based on the ... contained in the budget for the … . year.

7. This approach leaves room for the manipulationof ......

to protect theinterests of separate departments.

8. Zero-basebudgeting is a budgeting approach in which every … must be justified in everybudget.

9. ... ... are the first type of funding.

10. The second type of funding is .......

11. The third type of funding is .......

12. The fourth type of funding is the ... of ....

13. Selling assets is a ... ... .

14. The financialmanager should establish a ...of monitoring and … financial performance.

IV. Translate into English in a written form.

1. Финансовый план—это план получения и использованияденег, необходимых для осуществленияцелей организации.

2. Финансовое планирование начинается с установленияконечных целей и поэтапных целей.

3. Бюджет предусматривает доход и расходы за конкретный период времени.

4. Процесс составления бюджета (budgeting) начинается ссоставления отдельных бюджетов по продажам и по каждомувиду расходов.

5. Эти бюджеты легко объединяются в наличный бюджет всей компании.

6. Многие фирмы используют один из двух подходов к построению бюджетов.

7. При традиционном подходе новый бюджет основывается на бюджете за предыдущий год и руководители обосновывают только новые расходы.

8. Это оставляет место для манипуляции бюджетными статьями.

9. Эта проблема в основном ликвидируется через бюдже
тированиенуля. -;••;

10. Четырьмя основными источниками финансирования являются: доход от продаж, акционерный капитал, заемный капитал и продажа активов.

11. Продажа активов — это последнее спасительное средство.

12. Финансовый руководитель должен обеспечить (establish) средство контроляи оценки финансовой деятельности.

V. Questions and assignments.

1. What is a plan?

2. What is a financial plan?

3. What does financial planning begin with?

4. State the difference between goals and objectives.

5. List the three steps involved in financialplanning.

6. In what case financial planning cannot proceed?

7. State the meaning of the word«budget».

8. Give theexamples of various types of expenses which must be considered (учтены) in budgeting process?

9. How can budgeting accuracy be improved?

10. What is the peculiarity (особенность) of the traditional approach to budgeting?

11. What is theproblem with this approach?

12. What is the difference betweenthe traditional budgeting approach and zero-base budgeting?

13. What is theproblem with zero-base budgeting?

14. List the fourprimary sources of funding.

15. For what purpose (цель) is equity capital used?

16. Is sellingassets a normal step?

17. In what caseselling assets may be a reasonable last resort?

18. For whatpurpose may interim budgets be prepared?

VI. Make up a written abstract (краткое изложение) of the text.

VII. Retell the prepared abstract.

Unit 5

Outside Sources of Financing

Financialmanagement consist of all those activities that are concerned with obtainingmoney and using it effectively. Effective financial management involvescareful planning. It begins with a determination of the firm's financial needs.

Money isneeded to start a business. Then the income from sales could be used tofinance the firm's continuing operations and to provide a profit.

But salesrevenue does not generally flow evenly. Income and expenses may very fromseason to season or from year to year. Temporary financing may beneeded when expenses are high or income is low. Then, the need to purchase a newfacility or expand an existing facility may require more money than is available within afirm. In these cases the firm must look for outside sources of financing.Usually it is short- or long-term financing.

1. Short-term financing is money that will be usedfor one year or less and then repaid.

There aremany short-term financing needs. Two deservespecialattention. First, certain necessary business practices may affect a firm's cashflow and create a need for short-term financing.

Cashflowis the movement of money into and out of an organization. Theideal is to have sufficient money coming into the firm, in any period, to coverthe firm's expenses during that period. But the ideal is not alwaysachieved. For example, a firm that offers credit to its customers may find an imbalancein its cash flow. Such credit purchases are generally not paid until thirty or sixty days (ormore) after the transaction. Short-term financing is then

needed to pay the firm's bills until customershave paid their bills. Unanticipated expenses may also cause a cash-flow problem.

A second major need forshort-term financing that is related to a firm's cash-flow problem is inventory.

Inventory requires considerable investment for most manufactures, wholesalers, and retailers. Moreover,most goods are manufacturedfour to nine months before they are sold to the ultimate customer. As a result, manufacturers oftenneed short-term financing.The borrowed money is used to buy materials and supplies, to pay wages and rent, and to coverinventory costs until the goods are sold. Then, the money is repaid out of sales revenue. Additionally, wholesalers andretailers may need short-term financing to build up their inventories before peak selling periods. Again, the money is repaid whenthe merchandise is sold.

2. Long-term financing is money that will be used forlonger period than one year.Long-term financing is needed to start a new business. It is also needed for executingbusiness expansions and mergers, for developing and marketing new products, and for replacing equipment thatbecomes obsolete or inefficient.

The amounts of long-termfinancing needed by large firms can be very great.

Exercises

I. Translate into Russian.

Income; profit; facility; salesrevenue; expense; source; term; short-term financing; long-term financing; cash; cash flow; expand; provide; obtain; purchase;affect; be available; repay; borrow; transaction; supplies; marketing; equipment; merger; retailer;wholesaler; manufacturer; imbalance; merchandise; inventory; rent; sales revenue.

II. Find the English equivalents.

Финансовые потребности; арендная плата; стоимость; изготовитель; оптовый торговец; розничный торговец; (торговая) сделка; доход от продажи; припасы; товары; слияние (предприятий); определение; товарные запасы; оборудование; продажа; доход; прибыль; расход; срок; краткосрочноефинансирование; долгосрочное финансирование; денежная наличность; движение наличности; обеспечивать; изменяться; покупать; быть в наличии; предлагать; заменять; влиять (на);конечный; устарелый; неэффективный; непредвиденный;тщательный.

III. Fill in the blanks.

1. Financial management begins with a determination of the firm's… .

2. Temporary financing may be needed when ...are high and ... is low.

3. In these cases the firm must look for outside … of financing.

4. Short-term financing is … that will beused for one year or less and then ....

5.Cashflow is the movement of ...intoand out of an organization.

6. A firm thatoffers credit to its customers may find an imbalance in its ....

7. A second majorneed for … financing that is related to a firm's cash-flow problem is ....

8. The borrowedmoney is used to buy … and ..., to pay … and to cover … until the goods are sold.

IV. Translate into English.

1. Финансовый менеджмент состоит из тех видов деятельности (activities),которые относятся к получению денег и эффективному их использованию.

2. Краткосрочное финансирование — это деньги, которые будут использоваться в течение одного года или менее (less).

3. Существуют (there are) многие потребности краткосрочного финансирования, но движение наличности и товарные запасы представляют (are) две основные проблемы.

4. Товарные запасы требуют значительного инвестирования для большинства производителей, оптовых торговцев и розничных торговцев.

5. Занятые деньги возвращаются (is repaid) из дохода от продаж.

V… Answer the questions.

1. Is money needed to start a business?

2. When may temporary financing be needed?

3. What kinds (виды) of financing do you know?

4. What is short-term financing?

5. What is cash flow?

6. What is the ideal cash flow?

7. What can cause a cash flow problem?

8. Doesinventory require considerable investment for most manufacturers, wholesalers and retailers?

9. Why do manufacturers often need short-term financing?

10. For what purpose (цель) is theborrowed money often used by the manufacturers?

11. When is the borrowed money usually repaid?

12. What is long-term financing? , .:

13. For what purpose is long-term financing needed?

14. Are the amounts of long-termfinancing greater than those of short-term financing?

VI. Make up a written abstract of the abovetext.

VII. Retell the prepared abstract.

Unit

6

Sources of Unsecured Financing

Unsecured financing is financingfor which collateral is not required. Most short-term financing is unsecured. Sources of unsecured short-term financinginclude trade credits, promissory notes, bank loans, commercial papers, and commercial drafts.

1. TRADE CREDIT

Wholesalers may provide financialaid to retailers by allowing them thirty to sixty days (or more) in which to pay for merchandise. This delayed payment,which may also be granted by manufacturers, is a form of credit known as trade credit or the open account. Morespecifically, trade credit is apayment delay that a supplier grants to its customers.

Between 80 and 90 percent of alltransactions between businesses involve some trade credit. Typically, the purchased goods are delivered along with a bill(or invoice) that states the credit terms. If the amount is paid on time, no interest is generally charged. In fact, the seller mayoffer a cash discount to encour-. age promptpayment. The terms of a cash discount are specified on the invoice.

2. PROMISSORY NOTES ISSUED TOSUPPLIERS

A promissory note is a written pledge by a borrower to pay a certain sum of money to acreditor at a specified future date. Unlike trade credit, however, promissory notesusually require the borrower topay interest. Although repayment periods may extend to one year, most promissory notes specify 60 to 180 days. The customer buying on credit iscalled the maker and is the partythat

issues the note. The business selling themerchandise on credit is called the payee.

A promissory note offers twoimportant advantages to the firm extending the credit. First, a promissory note are negotiable instruments that can be sold when themoney is needed immediately.

3. UNSECURED BANK LOANS

Commercial banks offer unsecuredshort-term loans to their customers at interest rates that vary with eachborrower's credit rating. The prime interest rate (sometimescalled the preference rate) is the lowestrate charged by a bank for a short-term loan. This lowest rate is generally reserved for largecorporations with excellentcredit ratings. Organizations with good to high credit ratings may have to pay the primerate plus 4 percent. Of course, if the banker feels loan repayment may be a problem, the borrower's loanapplication may be rejected.

Banks generally offer short-termloans through promissory notes. Promissory notes that are written to banks aresimilar to thosediscussed in the last section.

4. COMMERCIAL PAPER

A commercial paper is a short-term promissory note issued by a large corporations. A commercial paper issecured only by the reputationof the issuing firm; no collateral is involved. It is usually issued in large denominations, rangingfrom $5,000 to $100,000. Corporations issuing commercial papers payinterest rates slightlybelow those charged by commercial banks. Thus, issuing a commercial paper is cheaper thangetting short-term financing from a bank.

Large firms with excellentcredit reputations can quickly raise large sums of money. They may issuecommercial paper totaling millions of dollars. However, a commercial paper is not without risks. If the issuingcorporation later has severe financing problems, it may not be able to repay the promisedamounts.

5.COMMERCIAL DRAFTS

A commercial draft is a written order requiring a customer (the drawee) to pay aspecified sum of money to a supplier (the drawer) for goods or services. It isoften used when the supplier is insure about the customer's credit standing.

In this case, the draft issimilar to an ordinary check with one exception: The draft is filled out by the seller and not the buyer. A sight draft is a commercial draft that is payable on demand -whenever thedrawer wishes to collect. A time draft isa commercial draft onwhich a payment date is specified. Like promissory notes, drafts are negotiable instrumentsthat can be discounted or used as collateral for a loan.

Exercises

I. Translate into Russian.

Source; unsecured financing;promissory note; commercial draft; trade credit; loan; commercial paper; transaction; delayed payment; credit terms; payinterest; interest rate; invoice; amount; prompt payment; written pledge; sum of money;borrower; repayment period;buy on credit; deliver; provide aid; maker; payee; offer loans; credit rating; prime interestrate; questionable credit rating; large denomination; raise large sums ofmoney; drawee; drawer; credit standing; sight draft; timedraft; collateral; commercial draft.

II. Find the English equivalents.

Ссуда; даватьссуду; процент; процентная ставка; необеспеченноефинансирование; покупать в кредит; условия кредита; счет-фактура; основнаясумма; деловая операция; торговый кредит; долговое обязательство; коммерческаябумага; тратта (переводнойвексель); условия; обеспечение (залог); заемщик; трассат (лицо, на котороевыставлена тратта); трассант (лицо,выписавшее переводной вексель-тратту) ; кредитоспособность; тратта (вексель) на предъявителя; срочная тратта.

III. Fill in each blank with a suitable word orword combination.

1. Trade creditis a payment… that a supplier grants to its customers.

2. The invoice that's ....

3. A promissorynote is a written … by a borrower to pay a certain sum of money at a specified date.

. 4. The customer buying on credit iscalled … and is the party that issues the promissory note.

5. The business selling the merchandise on creditis called ....

6. Mostpromissory notes are… that can be sold when money is needed immediately.

7. The primeinterest rate is the lowest rate charged by a bank for… loan.

8. A commercial paper is … issued by alarge corporation.

9. A commercial paper is securedonly by the … of the issuing . firm.

10. Issuing acommercial paper is … than getting short-term financing from a bank.

11. A commercialdraft is a written… requiring a drawee topay a specified sum of money to the … for goods or services.

12. A sight draft is a commercial draft that ispayable on ....

13. A … is a commercial draft on which apayment date is specified. 14. Like promissory notes drafts can be used as … for a loan.

IV. Translate into English.

1. Источники необеспеченного краткосрочного финансирования включают торговые кредиты, долговые обязательства, банковские ссуды, краткосрочные долговые обязательства (кредитно-денежныедокументы) и тратты (переводные векселя).

2. Торговыйкредит — это отсрочка платежа, которую поставщик предоставляет своим клиентам.

3. Долговое обязательство — это письменное обязательство заемщика уплатить определенную сумму денег кредитору.

4. В отличие от торгового кредита долговые обязательства требуют, чтобы заемщик платил проценты.

5. Коммерческие банки предоставляют необеспеченные краткосрочные ссуды своим клиентам, которые меняются в зависимости от (with) кредитоспособности каждого заемщика.

6. Коммерческая бумага — это краткосрочное долговое обязательство, выпускаемое крупными корпорациями. .

7. Коммерческая бумага не имеет специального (special) обеспечения.

8. Тратта (переводной вексель) —этописьменный приказ, требующий, чтобы трассат (лицо, на которое выставлена тратта) уплатил конкретную сумму денег поставщику за товары или услуги.

9. Тратта часто используется, когда поставщик не уверен в кредитоспособности клиента.

V. Answer the questions.

1. What is unsecured financing?

2. What are the sources of unsecured short-termfinancing?

3. What is a trade credit?

4. What is thedifference between a promissory note and trade credit?

5. In what case a loan application may be rejectedby a bank?

6. What is a commercial paper secured by?

7. Why issuing acommercial paper is cheaper than getting short-term financing from a bank?

8. What is a commercial draft?

9. Can commercial drafts be used as collaterals for loans?

VI. Make up a written abstract of the abovetext.

VII. Retell the prepared abstract.

Unit7

Accounting

1. GENERAL DEFINITION OFACCOUNTING

Today, it is impossible to managea business operation without accurate and timely accounting information. Managers and employees,lenders, suppliers, stockholders, and government agencies all rely on the information contained intwo financial statements. Thesetwo reports — the balance sheet and the income statement — are summaries of a firm'sactivities during a specific time period. They represent the results of perhaps tens of thousands of transactions that haveoccurred during the accounting period.

Accounting is the process of systematically collecting, analyzing, and reporting financial information. The basic product that an accounting firm sellsis information needed for the clients.

Many people confuse accounting with bookkeeping. Bookkeeping is a necessary part of accounting. Bookkeepers are responsible for recording (orkeeping) the financial data that the accounting system processes.

The primary users of accountinginformation are managers. The firm's accounting system provides the informationdealing withrevenues, costs, accounts receivables, amounts borrowed and owed, profits, return oninvestment, and the like. This information can be compiled for the entirefirm; for each product; for each sales territory, store, or individual salesperson; for each division or department; andgenerally in any way that will help those who manage the organization. Accountinginformation helps man-

agersplan and set goals, organize, motivate,and control. Lenders and suppliers need this accounting information to evaluate credit risks. Stockholders and potentialinvestors need the information to evaluate soundness of investments, and government agencies need it to confirm tax liabilities,confirm payroll deductions, and approve new issues of stocks and bonds. The firm's accounting system must be able to provideall this information, in the required form.

2. THE BASIS FOR THEACCOUNTING PROCESS

The basis forthe accounting process is the accounting equation.It shows therelationship among the firm's assets, liabilities, and owner's equity.

Assets are the items of value that afirm owns — cash, inventories, land,equipment, buildings, patents, and the like.

Liabilities are the firm's debts andobligations — what it owes to others.

Owner's equity is the difference between afirm's assets and itsliabilities — what would be left over for the firm's owners if its assets were used to pay off itsliabilities.

Therelationship among these three terms is the following:

Owners'equity = assets — liabilities

(The owners'equity is equal to the assets minus theliabilities)

For a sole proprietorship orpartnership, the owners' equity is shown as the difference between assets andliabilities. In a partnership, each partner's share of the ownership is reported separately by each owner's name. Fora corporation, the owners' equity is usually referred to as stockholders' equity or shareholders'equity. It is shown asthe total value of its stock, plus retained earnings that have accumulated todate.

By moving the above three termsalgebraically, we obtain the standard form of the accountingequation:

Assets = liabilities + owners' equity

(The assetsare equal to the liabilities plus theowners' equity)

3. A BALANCE SHEET

A balance sheet (or statement offinancial position), is a summary of a firm's assets, liabilities, and owners' equity accounts at a particular time, showing the various moneyamounts that enterinto the accounting equation. The balance sheet must demonstrate that the accounting equation doesindeed balance. That is, itmust show that the firm's assets are equal to its liabilities plus its owners' equity. Thebalance sheet is prepared at least once a year. Most firms also have balance sheets prepared semi-annually, quarterly, or monthly.

4. AN INCOME STATEMENT

An income statement is a summaryof a firm's revenues and expenses during a specified accounting period. The income statement is sometimes called the statement of income and expenses. It may be prepared monthly, quarterly, semiannually, or annually. An income statementcovering the previous year must be included in a corporation's annual report to its stockholders.

5. THE IMPORTANCE OF THE ABOVE TWO STATEMENTS

The information contained inthese two financial statements becomes more important when it is compared with correspondinginformation for previous years, for competitors, and for the industry in which the firm operates. Anumber of financial ratios can also be computed from this information. Theseratios provide a picture ofthe firm's profitability, its short-term financial position, its activity in the area ofaccounts receivables and inventory, and its long-term debt financing. Like theinformation on the firm's financial statements, the ratios can and should be compared with those of past accounting periods,those of competitors, and those representing the average of the industry as a whole.

Exercises

I. Translate into Russian.

Accounting; bookkeeping; accountinginformation; lender; stock; stockholder; financial statement; balance sheet; income statement; assets; liabilities;owners' equity; bond; debt; annual report; profitability; accounting period; return on investment; soundness of investment; issue ofstocks and bonds; revenue; profit; account receivable; transaction; amount; own; owner; relay on; report; borrow; dealwith; confirm; approve; provide; compare.

II. Find the English equivalents.

Бухгалтерский учет (бухучет); точнаяи своевременная информация; акционер; кредитор;ведомство (агентство); отчет

(доклад); балансовый отчет;отчет о доходах; отчетный период; счетоводство (бухгалтерия); финансовая информация;прибыль (доход); выгода (прибыль); прибыль на инвестированный капитал; дебиторская задолженность; обязательство; денежное обязательство (пассив); платежнаяведомость; акция (ценнаябумага); активы; долг; счет прибылей (иубытков); ежегодныйотчет; доходность; собственный акционерный капитал; одобрять; сравнивать;подтверждать; занимать (брать взаймы); обрабатывать (информацию).

III. Fill in the blanks.

1. Managers, lenders, suppliers andgovernment agencies relay on the information contained in two ....

2. These two reports — the balancesheet and … — are summaries of a firm's activities during a specifictime period.

3. The basis for the accounting process is ....

4. Assets are the … that a firm owns.

5. Liabilities are the firm's debts and ....

6. Owners' equity is the differencebetween a firm's … and its liabilities.

7. A balance sheet is … of a firm'sassets, liabilities, and owners' equity accounts at a particular time.

8. A balance sheet must demonstratethat the accounting … does indeed balance.

9. An income statement is a summary of a firm'srevenues and

… during a specific accountingperiod. >
10. The information inthese two financial statements becomes
more important whenit is… with corresponding information
for previous yearsor past… periods.

IV. Translate into English.

1. Бухгалтерскийучет — это процесс систематического сбора и сообщенияфинансовой информации.

2.Балансовый отчет и отчет о доходах являются (are) основой процесса бухучета.

3. Балансовый отчет (или отчет о финансовом положении) — это (is) обобщенный отчет об активах фирмы, пассивах исобственном акционерном капитале.

4. Отчет о доходах — это обобщенный отчет о доходах и расходах за (during) конкретный отчетный период.

5. Основой процесса бухгалтерского учета является буху-четноеуравнение.

6. Согласно (according to)бухучетномууравнению активы равны пассивам (денежным обязательствам) плюс собственныйакционерный капитал.

7. Собственный акционерный капитал—это разность между активами и пассивами.

8. Балансовый отчет должен показывать, что бухучетноеуравнение балансируется.

9. Результаты (results) балансового отчета должны сравниваться (be compared)с результатами за (for) прошлый отчетный период.

10. Эта информация дает картину доходности фирмы, ее финансового положения и ее деятельности в области (area) дебиторскойзадолженности, товарных запасов и долговогофинансирования.

V. Questions and assignments.

1. What is accounting? Give a short definition.

2. Is itpossible to manage a business operation without accurate and timely accountinginformation?

3. Who needs accounting information? Explain why.

4. What is the basis for accounting process?

5. State (изложите) the standard form of theaccounting equation.

6. What is a balance sheet? Give a shortdefinition.

7. What must a balance sheet show?

8. What is an income statement?

9. What can becomputed from the information contained in a balance sheet and an income statement?

10. Do the ratios computed from thisinformation provide a picture of a firm's profitability and its financialposition?

11. Is this information for competitors?