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25 views

key-to-unit-19-key-eou

Uploaded by

Giang Hoang
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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KEY TO UNIT 19 - KEY EOU

Tiếng Anh HP4 (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)

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KEY TO UNIT 19
Look at the balance and answer these questions
Question 1: Which lines on the balance sheet do the definitions below it refer to? (Two have been
done as examples.)
1. all the money belonging to the company’s owners
= shareholders’ equity
2. assets whose value can only be turned into cash with difficulty (e.g. reputation,
patents, trade marks, etc.)
= intangibles
3. capital that shareholders have contributed to the company above the nominal or par value
of the stock
= additional paid-in capital
4. expenses such as wages, taxes and interest that have not yet been paid at the date of the
balance sheet
= Accrued Expenses
5. money owed by customers for goods or services purchased on credit
= Total Receivables
6. money owed to suppliers for purchases made on credit
= Accounts Payable
7. money paid in advance for goods and services
= Prepaid Expenses
8. profits that have not been distributed to shareholders
= Retained earnings
9. tangible assets such as offices, machines, etc.
= Property / Plant/ Equipment
10. the difference between the purchase price of acquired companies and their net
tangible assets
= Goodwill
11. the total amount of money owed that the company will have to pay out
= Total liabilities
Question 2: Which two figures have to be the same (to balance) by definition?
Total Assets and Total Liabilities & Shareholders’ Equity
☞ Assets = Equity + Liabilities

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Question 3: How much money had the company already paid in advance for goods and services, on
the date of the 2008 balance sheet?
⇨ $1,404.11 million (the Prepaid
Expenses) (☞Notice: In Millions of $)
Question 4: At the 2008 balance sheet date, which is greater, the amount of capital the shareholders
have paid into the company, or the amount of profit that has not been spent?
The capital the shareholders have paid into the company

☞ The capital the share holders have paid into the company (Common Stock + Additional
Paid-in Capital + Other Equity) = $14,677.24 million , which is greater than the
Retained Earnings ($13,561.63 million)
Question 5: At the 2008 balance sheet date, which total is higher – the money Google currently
owes, or the money that it is owed?

☞ The money that it is owed

☞ The money Google owed at the balance sheet date was $2,302.09 million (Total Current
Liabilities), which is less than what it was owed: $2,642.19 million (Total Receivables, net)
Look at Google Inc.’s income statement and fill in the gaps
1. Gross profit equals minus . (total revenue – cost revenue)
2. Total operating expense equals cost of revenue plus plus
plus . (administrative expenses - research
and development - unusual expense)
3. Net income before tax equals plus income net plus
. (operating income - interest – other)
POST READING TASK – VOCABULARY REVIEW
1. The distribution of part of the earnings of a company to its shareholders is
………… (dividend)
2..............................is the process of treating as an expense the annual amount deemed to waste
away from a fixed asset. (amortization)
3. A...........................is a financial plan setting targets for the revenues, expenditures of an
organization for a specified period. (budget)
4. The employees record the ……………….. in an expense account. (expenditure)
5............................is an intangible asset and also considered as a saleable asset when a business
is sold and is sometimes shown in the balance sheet. (Good will)
6. The total of............................throughout an individual’s life, minus expenditure, is equal to
that person’s wealth. (income)

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7. Profits earned to date but not yet distributed to shareholders by way of dividends are
…......................(retained earnings)
8. Assets that can be touched, i.e. physical objects are............................assets. (tangible)
9. An asset that can neither be seen nor touched is an............................asset. (intangible)
10............................refers to an entry on the left-hand side of an account in double-entry
book-keeping, showing an amount owed by the organization. (Debit)

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