Financial Management – Balance Sheet Předmět Tematická oblast Autor Škola Anglický jazyk Odborná angličtina - obchodní, ekonomická a ICT Ing. Stanislav Kindl, MBA Hotelová škola, Obchodní akademie a Střední průmyslová škola, Teplice, Benešovo náměstí 1, příspěvková organizace Kód VY_32_INOVACE_JAA_848 Datum 21.01.2013 Zadání: Pracujte s textem a připravenými úkoly či otázkami. Podtrhněte si neznámé pojmy. Financial Management Course III 1 Financial Management III – Financial Statements, Balance Sheet TASK 1 – Can you remember all financial statements? List them again. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Take a look at the picture, please. Do you understand all the processes? Will you be able to describe all four stages including an example? Financial Management Course III 2 TASK 2 – Balance Sheet Study slides 9 -15 and give details about the elements of balance sheet. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Put down the key equation. Do you really understand all three areas? The following exercise will explore the left side of the balance sheet in detail. Let’s see what it takes to work with assets. Financial Management Course III 3 TASK 3 – Balance Sheet : ASSETS Find the right definition for (A) Current Assets and (B) Fixed [Long-Term] Assets. CA (Current Assets) FA (Fixed Assets) 1. A balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. 2. Buildings, real estate, equipment and furniture are good examples of fixed assets. 3. A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time. Fixed assets are sometimes collectively referred to as "plant". 4. In personal finance, current assets are all assets that a person can readily convert to cash to pay outstanding debts and cover liabilities without having to sell fixed assets. In the United Kingdom, current assets are also known as "current accounts". 5. In personal finance, current assets include cash on hand and in the bank, and marketable securities that are not tied up in long-term investments. In other words, current assets are anything of value that is highly liquid. 6. Generally, intangible long-term assets such as trademarks and patents are not categorized as fixed assets but are more specifically referred to as "fixed intangible assets". 7. Current assets are important to businesses because they are the assets that are used to fund day-to-day operations and pay ongoing expenses. Depending on the nature of the business, current assets can range from barrels of crude oil, to baked goods, to foreign currency. Financial Management Course III 4 Have a look at the balance sheet below. What contains this financial statements beyond the consideration of the key elements? And what belongs under Current Assets & Fixed Assets? Financial Management Course III 5 TASK 4 – Balance Sheet : ASSETS Evaluation Find any balance sheet of your choice and preference of an existing company. GAAP is required for now. Give details to the asset structure. TASK 5 – Balance Sheet : Liquidity of ASSETS Use Wikipedia for additional reading. In particular, the Liquid Assets chapter is highly recommended : http://en.wikipedia.org/wiki/Asset . Is there any link between the liquidity of assets and the chronology of assets within the balance sheet? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ TASK 6 – News : Please, do not forget. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Notes / Questions Financial Management Course III 6