2015-08-21
562
1. ______ are anything that can quickly be turned into cash.
2. ______ are the excess of current assets (such as cash, inventories, debtors) over current liabilities (creditors, overdrafts, etc.).
3. ______ are those which are gradually exhausted (used up) in production and cannot be replaced.
4. ______ are those which will be consumed or turned into cash in the ordinary course of business.
5. ______ are those whose value can only be quantified or turned into cash with difficulty, such as goodwill, patents, copyrights and trade marks.
6. ______, or shareholders’ equity, on a business’s balance sheet, is assets minus liabilities (which is generally equal to fixed assets plus the difference between current assets and current liabilities).
7. ______, such as land, buildings and machines, cannot be sold or turned into cash, as they are required for making and selling the firm’s product.
VI. Fill in the missing entries in the Balance Sheet below. Choose from the following.
| Amounts owed by related companies; Called up share capital; Creditors: amounts falling due after one year; Development costs; Fixtures and fittings; General reserve; Net current assets; Profit and loss account; Stock; Tangible assets. |
| £ | £ | £ | |
| Fixed Assets | |||
| Intangible assets | |||
| (1) Development costs | |||
| GOODWILL | 40 | ||
| (2)___________________ | |||
| Land and buildings | |||
| (3) ___________________ | 20 | ||
| Investments | |||
| Shares in related companies | 4,100 | ||
| Loans to related companies | 59 | 4,159 | 4,999 |
| Current Assets | |||
| (4) __________________ | |||
| Raw materials | |||
| Finished goods | 800 | ||
| Debtors | |||
| Trade debtors | 1,200 | ||
| (5) _________________ | |||
| Called up share capital not paid | |||
| Prepayments | 2,500 | ||
| Creditors: amounts falling due within one year | |||
| Debentures | |||
| Bank overdrafts | |||
| Bills of exchange payable | 50 | 700 | |
| (6) _________________ | 3,200 | ||
| Total assets less current liabilities | 8,199 | ||
| (7) __________________ | |||
| Debentures | |||
| Bank loans | 100 | ||
| 7,999 | |||
| Capital and reserves | |||
| (8) _________________ | 6,000 | ||
| Other reserves | |||
| Capital redemption reserve | |||
| (9) __________________ | 599 | ||
| (10) _________________ | 1,100 | ||
| 7,999 | |||
VII. Goodwill may be treated in different ways in the accounts. Fill in the missing words in the sentences below and translate them into Ukrainian. Choose from the following.
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| Acquired; amortized; balance sheet; brought; created; eliminated; reserves; useful. |
In the company’s books:
Purchased goodwill should normally be (1) ____________ immediately as an asset from the books when it is (2) ______________. In some companies, it may be appropriate for purchased goodwill to be (3) ___________ year by year over its (4) __________ economic life. Goodwill which has been (5) __________ within the company and not bought, should never be (6) __________ into the books at all. When there is negative goodwill, it should be added to the (7) __________ in the (8) ____________ of the firm.
