4. There are a number of essential business entries used on a balance sheet. Use the words listed below to decide which type of entry fits the definition.

dividend current assets liabilities intangible assents depreciation overdraft liquidity liquid assets

1. Any assets which can be used to make immediate payments.

2. Patents, ideas, trade marks, licenses.

3. Payments made to shareholders based on company profits.

4. Costs and money owed.

5. Investments, bank deposits, stock, etc. that can be easily converted into cash.

6. Total amount borrowed from a given bank.

7. Equipment and other assets which generally loses value over time.

8. Property, equipment currently owned and not intended for sale.

5. Fill in the missing words in the sentences below. Choose from the following: in, assets, tangible, depreciation, patents, from.

1.   Total assets as of December 31, 2003, increased by €184 million, or 32.7%,   ... December 31, 2002.

2.   The most common types of intangible assets are   ..., copyrights, franchises or licenses, trademarks or trade names, and goodwill.

3.   At December 31, 2003 and 2002, the Company had patents, trademarks and other identifiable intangible   ... with a value of $124.0 million and $128.6 million, respectively.

4.   The increase in current assets is largely due to increases   ... notes receivable and prepaid expenses.

5.   The   ... net assets of this company were appraised at €950,000 on December 31, 2002.

6.   Property, plant, and equipment includes buildings $2,525,000 less accumulated depreciation of $461,000; equipment $642,000 less accumulated   ... of $208,000; and land $856,000.

6. Look at the two simplified accounting statements. Find the terms which mean the following:

- what a company owns;

- the total amount of sales; what a company owes;

- the profit made by the normal activity of a business;

- the goods which a business intends to sell to its customers.

Complete the statements and ask each other for the missing information.

7. Which of the items below are Royce’s` fixed assets? Explain your choice.

Royces’ Executive is a coach company based in Eccles in the North West. It is owned by Joshua Nuttall who used £ 30 000 of his own money to set up the business in 2004. The company runs day trips to Blackpool & Derbyshire and weekend excursions to places such as Prestatyn, Conway and Cumbria. The following details also relate to his company:

• three coaches are owned by the company;

• £ 15 000 is owned to the bank – Royal bank of Scotland;

• £ 5 000 is owned to Joshua’s mother;

• there is £ 678 in Royces’ bank account;

• a customer owes Royces £ 15 for a trip;

• Royces own a computer worth £ 1000;

• Royces owe £ 250 to a local garage for diesel.

8. Complete the crossword matching the words given in the box to their definitions.

Across:

1. Materials and goods required in order to produce for, and supply to the customer.

3. ... represent the salary taken out of an unlimited liability firm by its proprietors.

4. Along with cash, this is the most liquid of assets.

5. ... is an abbreviation which means the same as sales revenue.

7. Along with bank, this is the most liquid of assets.

8. A debt that may have to be paid within 12 months (current), after 12 months (long-term), or at no specified time (shareholders' funds).

10. ... are costs that are not generated directly by the production process, often referred to as expenses.

Down:

2. ... are those to whom the organization owes money, perhaps through having purchased goods or services on credit so that payment is still outstanding.

3. ... are the people who owe you money.

6. A type of fixed asset.

9. The ability of a firm to meet its short-term debts. As bills can only be paid with cash, this term can also be understood as the availability of cash or near-cash resources.