THE AVENGERS MOVIE!!!

Marvel's The Avengers (classified in the UK and Ireland under the title Marvel Avengers Assemble^[1][4]) is a 2012 American superhero film produced by Marvel Studios and distributed by Walt Disney Pictures,¹ based on the Marvel Comics superhero team of the same name. It is the sixth installment in the Marvel Cinematic Universe.^[5] The film is written and directed by Joss Whedon and features an ensemble cast that includes Robert Downey, Jr., Chris Evans, Mark Ruffalo, Chris Hemsworth, Scarlett Johansson, Jeremy Renner, Tom Hiddleston, Clark Gregg, Cobie Smulders, Stellan Skarsgård and Samuel L. Jackson. In The Avengers, Nick Fury, director of the peacekeeping organization S.H.I.E.L.D., recruits Iron Man, Captain America, the Hulk and Thor to form a team that must stop Thor's brother Loki from enslaving the human race.
Development of The Avengers began when Marvel Studios received a loan from Merrill Lynch in April 2005. After the success of the film Iron Man in May 2008, Marvel announced that The Avengers would be released in July 2011. With the signing of Johansson in March 2009, the film was pushed back for a 2012 release. Whedon was brought on board in April 2010 and rewrote the screenplay originally written by Zak Penn. Production began in April 2011 in Albuquerque, New Mexico, before moving to Cleveland, Ohio, in August and New York City in September. The film was converted to 3D in post-production.
The Avengers premiered on April 11, 2012, at the El Capitan Theatre in Hollywood, California, and has received mostly positive reviews from film critics. Released internationally April 29, 2012, it earned $441.5 million^[6] in its first week, covering the $220 million production cost and making the film profitable before its wide domestic release.^[7] Released domestically May 4, 2012, it set the record for the biggest opening debut in North American cinematic history with a weekend gross of $200.3 million.^[8]

WESTLIFE

Westlife are an Irish boy band formed in 1998. They are to disband in 2012 after their farewell tour. The group's line-up was Shane Filan, Mark Feehily, Nicky Byrne, Kian Egan, and Brian McFadden (left the band in 2004). Westlife have sold over 45 million records worldwide which includes studio albums, singles, video release, and compilation albums.^[1] Despite the group's worldwide success, they only have one hit single in the United States, "Swear It Again", which peaked in 2000 on the Billboard Hot 100 at number 20. The band were originally signed by Simon Cowell and are managed by Louis Walsh. The group have accumulated 14 number-one singles in the United Kingdom, the third-highest in UK history, tying with Cliff Richard. The group had also broken a few records, including "Music artist with most consecutive number 1's in the UK", which consists of their first seven singles and only behind The Beatles and Elvis Presley. The Official Charts Company credited Westlife as the second biggest-selling artist and biggest-selling band of the decade.^[2] The band have 14 UK number ones and 25 top ten singles, consisting of 20.2 million records and videos in the UK across their 14-year career - 6.8 million singles, 11.9 million albums and 1.5 million videos.^[3]
On 1 June 2008, Westlife marked their tenth anniversary with a concert in Croke Park, Dublin which had more than 83,000 fans attending the special occasion. Music Week revealed on their website that Westlife are the official third top touring act within the years 2005–2008, while they were seventh top touring act of 2008.^[4] Also in 2008, they were declared Ireland's ninth-richest celebrities under 30 years old and thirteenth in general with 36 million euros as a group. In 2009, they dropped as sixteenth richest Irish with estimated 8 million euros each. They were named as the fourth most hard-working music artist in UK by PRS in 2010.^[5] In August 2011, it was reported in the Irish Examiner that the profits of the band's firm grew five-fold in 2010.^[6] On 19 October 2011, Westlife announced they were to split after their Greatest Hits was released on 21 November 2011 it debuted in Ireland at number1 for 1 week and debuted and peaked at number 4 in the UK and a farewell tour in Spring 2012.^[7] The band recently won the coveted poll of MTV.com Battle of the Boybands. After five rounds and competing with 32 group, Westlife won over 74% at the final round. It trended on Twitter worldwide as 'Westlife WON' and #Westlifeforever.^[8]

MODERN BANKING

MODERN BANKING

The goldsmith bankers were an early example of financial intermediary. A financial intermediary is an institution that specializes in bringing lenders and borrowers together. A commercial bank borrows money from the public, crediting them with a deposit. The deposit is a liability of bank. It is money owed to depositiors. In turn the bank lends money to firm, households or governments woshing to borrow.
Banks are not only financial intermediaries. Insurance companies, pension funds and building societies also take in money in order to relend it. The crucial feature of bank is the some of their liabilities are used as a means of payment and therefore part of the money stock. Commercial bank are financial intermediaries with a government licence to make loans and issued deposits, including deposits against which cheques can be written.
We begin by looking at the present day UK banking system. Although the details vary from country to country, the general principle is much the same everywhere. In the UK, the commercial banking system comprises about 600 registered bank, the National GiroBank operating through post offices and about a dozen trustee saving banks. Much the most important single group is the London clearing banks. The clearing banks are so named because they have a central clearing house for handling payments by cheque.
A clearing system is a set of arrangements is which debts between banks are settled by adding up all the transactions in a given period an paying only the net amount needed to balance inter-bank accounts.
Altought in both cases the cheque writer`s account is debited and the cheque recipient`s account is credited, it does not make sense for the two banks to make separate inert-bank transactions between themselves. The clearing system calculates the net flows between the member clearing banks and these settlements that they make between themselves. Thus system of clearing cheques represents another way society reduces the cost of making transactions.
( Taken from Economics : English for Academic Purpose Series by C. St. J. Yates )

MONEY AND ITS FUNCTION

Main article: History of money

The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.^[9] Instead, non-monetary societies operated largely along the principles of gift economics and debt.^[10][11] When barter did in fact occur, it was usually between either complete strangers or potential enemies.^[12]

Many cultures around the world eventually developed the use of commodity money. The shekel was originally a unit of weight, and referred to a specific weight of barley, which was used as currency.^[13] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, the shells of the money cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.^[14] It is thought by modern scholars that these first stamped coins were minted around 650–600 BC.^[15]

Song Dynasty Jiaozi, the world's earliest paper money

The system of commodity money eventually evolved into a system of representative money.^{[citation needed]} This occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins. Banknotes were first issued in Europe by Stockholms Banco in 1661, and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold.

After World War II, at the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold. In 1971 the US government suspended the convertibility of the US dollar to gold. After this many countries de-pegged their currencies from the US dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment.

Etymology

The word "money" is believed to originate from a temple of Hera, located on Capitoline, one of Rome's seven hills. In the ancient world Hera was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.^[16] The name "Juno" may derive from the Etruscan goddess Uni (which means "the one", "unique", "unit", "union", "united") and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique).

In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning 'in kind'.^[17]

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In the past, money was generally considered to have the following four main functions, which are summed up in a rhyme found in older economics textbooks: "Money is a matter of functions four, a medium, a measure, a standard, a store." That is, money functions as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value.^[5] However, modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.^[4][18][19]

There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.^[5] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time.^[20] The term 'financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender.

Medium of exchange

Main article: Medium of exchange

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the 'double coincidence of wants' problem.

Unit of account

Main article: Unit of account

A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. To function as a 'unit of account', whatever is being used as money must be:

• Divisible into smaller units without loss of value; precious metals can be coined from bars, or melted down into bars again.
• Fungible: that is, one unit or piece must be perceived as equivalent to any other, which is why diamonds, works of art or real estate are not suitable as money.
• A specific weight, or measure, or size to be verifiably countable. For instance, coins are often milled with a reeded edge, so that any removal of material from the coin (lowering its commodity value) will be easy to detect.

Store of value

Main article: Store of value

To act as a store of value, a money must be able to be reliably saved, stored, and retrieved – and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.^[4]

Standard of deferred payment

Main article: Standard of deferred payment

While standard of deferred payment is distinguished by some texts,^[5] particularly older ones, other texts subsume this under other functions.^[4][18][19] A "standard of deferred payment" is an accepted way to settle a debt – a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation.

Measure of Value

Money, essentially acts as a standard measure and common denomination of trade. it is thus a basis for quoting and bargaining of prices. It has significantly in developing efficient accounting systems. But the most important usage is that it provides a method to compare the values of dissimilar objects.

Money supply

Main article: Money supply

In economics, money is a broad term that refers to any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the amount of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate.

Modern monetary theory distinguishes among different ways to measure the money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2 and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; and M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments.

Another measure of money, M0, is also used; unlike the other measures, it does not represent actual purchasing power by firms and households in the economy. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks.

Market liquidity

Main article: Market liquidity

Market liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter.

Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money.

Types of money

Currently, most modern monetary systems are based on fiat money. However, for most of history, almost all money was commodity money, such as gold and silver coins. As economies developed, commodity money was eventually replaced by representative money, such as the gold standard, as traders found the physical transportation of gold and silver burdensome. Fiat currencies gradually took over in the last hundred years, especially since the breakup of the Bretton Woods system in the early 1970s.

Commodity money

Main article: Commodity money

A 1914 British Gold sovereign

Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.^[21] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction to one another, in various commodity valuation or Price System economies. Use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.^[22] American Eagles are imprinted with their gold content and legal tender face value.^[23]

Representative money

Main article: Representative money

In 1875 economist William Stanley Jevons described what he called "representative money," i.e., money that consists of token coins, or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.^[24]

Fiat money

Main article: Fiat money

Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful to not accept the fiat currency as a means of repayment for all debts, public and private.^[25][26]

Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).^[23][27]

Fiat money, if physically represented in the form of currency (paper or coins) can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.^[28] By contrast, commodity money which has been lost or destroyed cannot be recovered.

Currency

Main article: currency

Currency refers to physical objects generally accepted as a medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply. The other part of a nation's money supply consists of bank deposits (sometimes called deposit money), ownership of which can be transferred by means of cheques, debit cards, or other forms of money transfer. Deposit money and currency are money in the sense that both are acceptable as a means of payment.^[29]

Money in the form of currency has predominated throughout most of history. Usually (gold or silver) coins of intrinsic value (commodity money) have been the norm. However, nearly all contemporary money systems are based on fiat money – modern currency has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins issued by the central bank) to be legal tender, making it unlawful to not accept the fiat currency as a means of repayment for all debts, public and private.^[25][26]

Commercial bank money

Main article: Demand deposit

Demand deposit in cheque form.

Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.^[30]

Commercial bank money is created through fractional-reserve banking, the banking practice where banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all these deposits upon demand.^[31][32] Commercial bank money differs from commodity and fiat money in two ways, firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The process of fractional-reserve banking has a cumulative effect of money creation by commercial banks, as it expands money supply (cash and demand deposits) beyond what it would otherwise be. Because of the prevalence of fractional reserve banking, the broad money supply of most countries is a multiple larger than the amount of base money created by the country's central bank. That multiple (called the money multiplier) is determined by the reserve requirement or other financial ratio requirements imposed by financial regulators.

The money supply of a country is usually held to be the total amount of currency in circulation plus the total amount of checking and savings deposits in the commercial banks in the country. In modern economies, relatively little of the money supply is in physical currency. For example, in December 2010 in the U.S., of the $8853.4 billion in broad money supply (M2), only $915.7 billion (about 10%) consisted of physical coins and paper money.^[33]

Digital money

Digital currencies gained momentum in before the 2000 tech bubble. Flooz and Beenz were particularly advertised as an alternative form of money. While the tech bubble caused them to be short lived, many new digital currencies have reached some, albeit generally small userbases.

Most digital currencies are simply fiat currencies parleyed across a digital medium. However, protocols like Bitcoin allow money to only exist in cyberspace which allows for some classic limitations to be lifted. Never in the history of time has the sending of money across a geographical divide not required the trust of a 3rd party which of course then is susceptible to regulatory capture. Analogous to the printing press having allowed the free exchange knowledge which was highly regulated by the Christian church (who unsuccessfully tried to impose the death penalty for publishing after the printing press came to Europe), new forms of currency coming to fruition this very day allow for the free exchange of wealth across distances.

Monetary policy

Main article: Monetary policy

When gold and silver are used as money, the money supply can grow only if the supply of these metals is increased by mining. This rate of increase will accelerate during periods of gold rushes and discoveries, such as when Columbus discovered the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This causes inflation, as the value of gold goes down. However, if the rate of gold mining cannot keep up with the growth of the economy, gold becomes relatively more valuable, and prices (denominated in gold) will drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries.

Modern day monetary systems are based on fiat money and are no longer tied to the value of gold. The control of the amount of money in the economy is known as monetary policy. Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals. Usually the goal of monetary policy is to accommodate economic growth in an environment of stable prices. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”^[34]

A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union.

Governments and central banks have taken both regulatory and free market approaches to monetary policy. Some of the tools used to control the money supply include:

• changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks
• currency purchases or sales
• increasing or lowering government borrowing
• increasing or lowering government spending
• manipulation of exchange rates
• raising or lowering bank reserve requirements
• regulation or prohibition of private currencies
• taxation or tax breaks on imports or exports of capital into a country

In the US, the Federal Reserve is responsible for controlling the money supply, while in the Euro area the respective institution is the European Central Bank. Other central banks with significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England.

For many years much of monetary policy was influenced by an economic theory known as monetarism. Monetarism is an economic theory which argues that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz^[35] supported by the work of David Laidler,^[36] and many others. The nature of the demand for money changed during the 1980s owing to technical, institutional, and legal factors^{[clarification needed]} and the influence of monetarism has since decreased.

WHY FINACE ??

Why finance ?
One of the primary considerations when going into business is money. Without sufficient funds a company cannot begin operations. The money needed to start and continue operating a business is known as capital. A new business needs capital not only for on going expenses but also for purchasing necessary assets. These assets-inventories, equipment, building, and property represent an investment of capital in the new business.
How this new company obtains and uses money will, in large measure, determine its success. The process of managing this acquired capital is known as financial management. In general finances securing and utilizing capital to start up, operate and expand a company.
To start up begin business, a company needs funds to purchase essential assets, support research and development, and buy materials for production. Capital is also needed for salaries, credit extension to customers, advertising, insurance, and many other day-to-day operations. In addition, financing is essential for growth and expansion for a company. Because of competition In the market, capital needs to be invested in developing new product lines and production tecnigues and in acquiring assets forduct lines and production technigues and in acquiring assets for future expansion.
In financing business operations and expansion, a business uses both short-therm and long-term capital. A company, much like an individual, utilizes short-term capital to pay for items that last a relatively short period of time. An individual uses credit cards or charge accounts for items such as clothing or food, while a company seeks short-term financing for salaries and office expenses. On the other hand, an individual uses long-term capital such as a bank loan to pay for home or car goods that will lasy a long time. Similary, a company seeks long term financing to pay for new assets that are expected to last many years.
Whwn a company obtains capital ffrom external sources, the financing can be either on a short-term or long-term arrangement. Generally, short-term financing must be repaid in less than one year, while long-term financing can be repaid over a longer period of time.
Finances involves the securing of funds for all phases of business operations. In obtaining and using this capital, the decisions made by managers affect the overall financial success of a company.

THE BALANCE SHEET

THE BALANCE SHEET
Financial statements are the final product of the accounting process. They provide information on the financial condition of a company. The balance sheet, one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.
Assets represent everything of value that is owned by a business, such as property, equipment, and accounts receivable. On the other hand, liabilities are the debts that a company owes-for example, to suppliers and banks. If liabilities are subtracted from assets (assets-liabilities) the amount remaining is the owners share of a business. This is known as owners’ or stockholders equity.
One key to understanding the accounting transactions of a business is to understand the relationship of its assets, liabilities, and owners’ equity. This is often represented by the fundamental accounting equation: assets equal liabilities plus owners’ equity.
ASSETS = LIABILITIES + OWNERS’ EQUITY
These three factors are expressed in monetary terms and therefore are limited to items that can be given a monetary value. The accounting equation always remains in balance; in other words, one side must equal the other.
The balance sheet expands the accounting equation by providing more informa- tion about the assets, liabilities, and owners’ equity of a company at a specific time (for example, on December 31, 1993). It is made up of two parts. The first part lists the company assets, andmthe second part details liabilities and owners’ equity. Assets are divided into current and fixed assets. Cash, accounts receivable and inventories are all current assets. Property, buildings, and equipment make up the fixed assets of a company. The liabilities section of the balance sheet is often divided into current liabilities
(such as bonds and long-term notes).
The balance sheet provides a financial picture of a company on a particular date, and for this reason it is useful in two important areas. Internally, the balance sheet provides managers with financial information for company decisionmaking. Externally, it gives potential investors data for evaluating the company’s financial position.
Comprehension
A.Answer the following questions about the balance sheet. Questions with asterisks (*) cannot be answered directly from the text.
1.What is the final product of the accounting process?
2.What is a balance sheet?
3.Does the balance sheet provide financial information for a long period of time (for example, January to June 1993) or does it provide information for a specific point in time (for example, on June 30, 1993)?
4.What is the difference between assets and liabilities?
5.How is owners’ or stockholders’ equity determined?
6.How can the relationship between assets, liabilities, and owners’ equity be repre- sented?
7.Does the accounting equation always remain in balance? *Why or why not?
8.How can business use a balance sheet? *As a manager, how would you find a balance sheet useful?
Answer:
1.The final product of the accounting process is the balance sheet.
2.A balance sheet is a final statement that provides a summary of what a company owns and what it owes on one particular day.
3.It provides information for a specific point in time, for example, on Jun 30, 1993.
4.Assets represent everything of value that is owned by a business, liabilities are the debts that is a company owes.
5.Owners’ or stockholders’ equity is determined by subtracting liabilities from assets.
6.It can be represented by the fundamental accounting equation assets equal liabilities plus owners’ equity.
7.Yes, it does. Because one side must equal the other. If not, it must be wrong with the recording.
8. A balance is useful for a business, because it provides a financial picture of a compa- ny on a particular day. It provides managers with financilal information for company decision making.
B.Complete the balance sheet by writing in the correct terms from the list bellow.
assets current liabilities long-term liabilities
liabilities fixed assets current assets
stockholders’ equity
International Manufacturing, Inc
Balance Sheet
December 31, 1993
Assets
Liabilities
Current assets
Current liabilities
Cash
$ 49,400
Accounts payable
$ 30,000
Accounts receivable
1,600
Income texes payable
19,000
Inventories
53,000
Total
$ 49,000
Total
$104,000
Long-term liabilities
Fixed assets
Bonds
$ 20,000
Property
$ 15,000
long-term liabilities
40,000
Buildings
50,000
Total
$ 60,000
Equipment
10,000
Total
$ 75,000
Total liabilities
$109,000
Stockholders’ equity
Total assets
$179,000
Common stock
$ 47,000
Retained earnings
23,000
Total
$ 70,000
Total liabilities and
stockholders’ equity
$179,000
Vocabulary Exercises
A. Write down any term that you did understand in the reading. Find each term in the reading, look at its context, and try to figure out the meaning. Discuss these terms with your classmates.
B. Look at the terms in the left-hand column and find the correct synonyms or definition in the right-hand column. Copy the corresponding letters in the blanks.
1. G property (line 6) a. assets equal liabilities plus owners’ equity
2. D equal (line 12) b. provide information item by item
3. F condition (line 2) c. indicate by words or symbols
4. B detail (line 21) d. have the same value as
5. A accounting equation (line 12) e. a series of transactions, changes, or functi-ons that bring about a particular result
6. H monetary (line 15) f. the existing circumstance
7. E process (line 1) g. anything owned by a person
8. C express (line 15) h. of or pertaining to money
C. Discuss the following questions with a partner. In giving your answers, try to use the italicized terms.
1.What is the difference between accounts receivable and accounts payable?
2.Why are accounts receivable and cash considered current assets while property and equipment are considered fixed assets? What do you think the difference between current and fixed assets?
3.The owners’ equity in a company equals assets minus liabilities. What is meant by owners’ (or stockholders’) equity?
4.If you were a manager, how would you use the balance sheet to evaluate you company’s financial condition?
5.What do you consider your personal assets? Do you have any liabilities? What are they?
Answer:
1.Accounts receivable is assets and accounts payable is liabilities.
2.Because they are easly changed into money.
3.Nett owning.
4.The manager know were the company is financial healthy.
5.Mobile.
Text Analysis
Look at the reading to answer these questions.
1.What does each of the following refer to?
LINES WORDS REFERENTS
1 they financial statement
9 this the owners’ share if a business
11 this the relationship of its assets
15 these three factors assets, liabilities and owners’ equity
2.In line 6, what are property, equipment, and accounts receivable examples of?
Assets
3.In line 7, what do suppliers and banks refer to?
To whom the company has depts..
4.In lines 5-7. two different phrases are used to incorporate example in the reading. What are these phrases?
a. Assets
b. Liabilities
5.Another method of clarification by example is the use of mathematical representations. From the reading, copy examples that use mathematical symbols.
a. The fundamental accounting equation.
b. Assets equal to liabilities plus owners’ equity.
6.In lines 28-31, two uses of the balance sheet are given. What are the key words that show each of these uses is in a different area? What uses does each word introduce?
KEYWORDS USES
Classification
Categories of the balance sheet can be classified to show the relationship between them. Fill in the following blanks based on the information provided in the reading and in Figure 1 (page 79).
Class: Assets Class: Liabilities
Members: Current assets Members: Current liabilities
Fixed assets Long-term liabilities
Class: Current assets Class: Current liabilities
Members: Cash Members: Accounts payable
Accounts receivable Income taxes payable
Inventories
Class: Fixed assets Class: Long-term liabilities
Members: Property Members: Bonds
Buildings Long-term notes
Equipment
Application
Using the information in the reading, answer the following questions. Give reasons to support your answers.
1.Which of the following is not a fixed assets: office equipment, machinery, marketable securities, land, and buildings? Why?
Marketable securities. Because its easy to change into money.
2.Are the following liabilities current or long-term: bank loans payable, accounts payable, mortgage bonds payable, taxes payable, and long-term notes payable? List each under the correct heading

THE ROLE OF COMPUTER IN BUSNISESS

Tesco Functional Areas

All businesses need to be well organised to achieve their aims and
objectives. Certain tasks, or functions, must be done regularly and
these are usually grouped into specific types of activities. In a
large organisation like Tesco PLC, people work together in functional
areas. Each functional area has a specific purpose. Below are the main
functional areas:

Finance

The main activities of the finance department are:

* To record all the business transactions

This means that they record in their schedule all the expenses that
have been paid and all incomings. They also make sure that each
department does not spend more than it has been allocated.

* Measure the financial performance of Tesco

This means the finance department look at how well or badly Tesco is
doing financially.

* To control the finances and cash flow so Tesco stays reliable.

This means that they make sure that there is enough money in the
business to pay off debts, bills and the employees. They also make
sure that there is enough money to survive for the company.

* To take timely financial decisions by comparing the predicted
performance with actual performance.

This means that if the company wants to invest more in Tesco, then it
would be up to the finance department to make the decision on whether
there are enough funds to do. They would do this by looking and
comparing the financial situation in previous years with the financial
situation of the present year. By this they can see the expense will
leave them with enough money at the end. They also prepare all the
accounts each year so that the company comply with their legal
responsibilities to the Inland Revenue and complete VAT returns which
they send to HM Customs and Excise.

The finance department in Tesco is there to make sure that the company
stay's afloat. They do this by checking the financial status of the
company; when I say...