I.

Read the following passage and decide T or F:

Financial Resources
Conversion agents need financial resources (money) to establish and operate their
businesses. The investors and creditors are two primary types of financial resource
providers. Investors accept ownership interests in a business. As such, they share in the
distribution of income. If the business prospers, they are rewarded handsomely. If it fails,
they risk losing the resources they invested in the business. Investors allocate their
resources to businesses according to the investor’s assessment of the likelihood of
profitability versus the risk of failure. Creditors lend financial resources to businesses.
Instead of receiving ownership interests in a business, creditors expect businesses to
return the borrowed resources at some future date.
In the event of a business failure, any resources (assets) that remain in the business are
returned to the resource providers (creditors and investors). The process of dividing the
assets and returning them to the resource providers is called business liquidation.
Creditors normally receive first priority in business liquidation. In other words, assets are
distributed to creditors first. After creditor claims have been satisfied, the remaining
assets are distributed to the investors (owners).
1. Two main types of financial resource suppliers are investors and creditors. True
2. If a business goes bankrupt, all assets are returned to shareholders. False
3. Investors share in the distribution of income. True
4. Creditors always receive first priority in business liquidations. True
5. Investors expect business to receive ownership interests in a business. False
II. Read the following passage and choose the best answer:
An entity whose income exceeds its expenditure can lend or invest the excess income. On
the other hand, an entity whose income is less than its expenditure can raise capital by
borrowing or selling equity claims, decreasing its expenses, or increasing its income. The
lender can find a borrower, a financial intermediary such as a bank, or buy notes or bonds
in the bond market. The lender receives interest, the borrower pays a higher interest than
the lender receives, and the financial intermediary pockets the difference.
A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits
from lenders, on which it pays the interest. The bank then lends these deposits to
borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their
activity. Banks are thus compensators of money flows in space.
Banks also carry out many other financial activities. For example banks are important
players in financial markets and offer financial services such as investment funds. In
some countries such as Germany, banks are the primary owners of industrial corporations
while in other countries such as the United States banks are prohibited from owning non-
financial companies. In Japan, banks are usually the nexus of cross share holding entity
known as zaibatsu. In France "Bancassurance" is highly present, as most banks offer
insurance services (and now real estate services) to their clients.
1. Those who spend more than what they earn can ………
A. decrease their expenses or increase their income.
B. lend or invest the income.
C. borrow or sell equity claims.
2. Banks make profit by…….
A. charging the borrower at a higher interest rate than it pays to the lender.
B. charging the lender at a higher interest rate than it pays to the borrower.
C. finding a borrower for the lender.
3. Companies can mobilize funds by…….
A. buying notes or bonds in the bond market.
B. finding a financial intermediary.
C. selling equity claims.
4. All of the following statements are true EXCEPT
A. In the US banks can own non-financial businesses.
B. In Germany, banks can own industrial companies.
C. In Japan, banks can be engaged in share holding corporations.
5. Banks can take all these activities EXCEPT
A. offering financial services.
B. lending deposits to lenders.
C. offering insurance services.
III. Translate the following passage into Vietnamese:

Medium of exchange

Money is used as an intermediary for trade, in order to avoid the inefficiencies of a barter
system, which are sometimes referred to as the 'double coincidence of wants problem'.
Such usage is termed a medium of exchange.
Translate passage:

Phương tiện trao đổi

Tiền được sử dụng như một phương tiện trung gian cho thương mại, nhằm tránh sự kém
hiệu quả của hệ thống hàng đổi hàng, đôi khi được gọi là 'sự trùng hợp kép của vấn đề
mong muốn'. Việc sử dụng như vậy được gọi là một phương tiện trao đổi.

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.

Translate passage:

Đơn vị tài khoản

Đơn vị tài khoản là một đơn vị số tiêu chuẩn đo lường giá trị thị trường của hàng hóa,
dịch vụ và các giao dịch khác. Còn được gọi là "thước đo" hoặc "tiêu chuẩn" về giá trị
tương đối và khoản thanh toán trả chậm, đơn vị tài khoản là điều kiện tiên quyết cần thiết
để hình thành các thỏa thuận thương mại liên quan đến nợ.

Store of value

To act as a store of value, a commodity, a form of money, or financial capital must be

able to be reliably saved, stored, and retrieved — and be predictably useful when it is so
retrieved. Fiat currency like paper or electronic currency no longer backed by gold in
most countries is not considered by some economists to be a store of value.

Translate passage:

Lưu trữ giá trị

Để hoạt động như một kho lưu trữ giá trị, một hàng hóa, một dạng tiền hoặc vốn tài chính
phải có khả năng được lưu trữ, lưu trữ và truy xuất một cách đáng tin cậy - và hữu ích có
thể dự đoán được khi nó được truy xuất như vậy. Tiền Fiat như tiền giấy hoặc tiền điện tử
không còn được hỗ trợ bởi vàng ở hầu hết các quốc gia không được một số nhà kinh tế
coi là vật lưu trữ giá trị.

IV. Translate the following sentences into English:

1. Chi phí cố định là những chi phí không thay đổi khi doanh nghiệp thay đổi sản lượng
đầu ra của mình.
2. Chi phí cố định bao gồm những khoản như lãi suất nợ của công ty, các khoản thanh
toán tiền thuê, phí bảo hiểm, thuế bất động sản, khấu hao trang thiết bị và lương cho
nhân công.
3. Khi công ty tăng sản lượng đầu ra của mình, công ty đó cần phải có thêm những
nguồn lực sản xuất như nhân công và nguyên vật liệu thô bổ sung.
4. Các chính phủ cũng có thể vay tiền và các cá nhân có thể thực hiện việc cho
vay với niềm tin gần như tuyệt đối rằng họ sẽ nhận được lợi nhuận và số tiền
của họ sẽ được đảm bảo an toàn.
5. Trong giai đoạn phát triển, tỷ suất mắc nợ cao sẽ mang lại cho chủ sở hữu lợi
nhuận lớn hơn do lợi nhuận ròng chiếm tỷ lệ lớn hơn trong vốn cổ phần sau khi
trả lãi suất nợ dài hạn.

Translate into English:

1. Fixed costs are costs that do not change when the enterprise changes its output.
2. Fixed costs include things like interest on the company's debt, rent payments, insurance
premiums, property taxes, depreciation on equipment, and wages for workers.
3. As a company increases its output, it needs to acquire production resources such as
labor and additional raw materials.
4. Governments can also borrow money and individuals can make loans with almost
absolute confidence that they will receive a return and that their funds will be safe.
5. In the growth phase, a high debt ratio will result in greater profits for owners as net
profit accounts for a larger percentage of equity after paying interest on long-term debt.
 I. Read the following passage and decide T or F:
Elements of Financial Statements
The items reported in financial statements are organized into classes or categories known
as elements. The Financial Accounting Standards Board (FASB) has identified 10
elements of financial statements: assets, liabilities, equity, common stock, revenue,
expenses, distributions, net income, gains and losses. In practice, many different titles are
used to identify the elements of financial statements. For example, net income, net
earnings, and net profits are used interchangeably to describe the same element.
Similarly, common stock can be called contributed capital, owner’s capital, and
partners’ equity. Furthermore, distributions, withdrawals, and dividends all describe the
transfer of assets from a business to its owners. Think of accounting as a language. Be
prepared for the fact that different terms can be used to describe the same business event.
The elements represent broad classifications as opposed to specific items. In other words,
cash, equipment, buildings, and land are particular economic resources and should not be
identified as elements. Rather, they represent specific items or sub-classifications of the
element known as assets. The sub-classifications of the elements are frequently called
accounts. The accounts appear in the financial statements under the broader
classifications that have been identified as elements. For example, the balance sheet
contains the element assets, which includes accounts that describe specific items such as
cash, inventory, equipment, and land.
1. There are 10 elements of financial statements. True
2. Net income, net earnings and net profit are used to describe the same element.True
3. Cash, equipment, building and land are identified as elements. False
4. Elements assets belong to the balance sheet, not financial statements. False
5. Common stock can be called contributed capital, owner’s capital, and partners’
equity. True
II. Read the following passage and choose the best answer:
 Modern accounting
Accounting is the process of identifying, measuring and communicating economic
information so a user of the information may make informed economic judgments and
decisions based on it.
Accounting is the degree of measurement of financial transactions which are transfers of
legal property rights made under contractual relationships. Non-financial transactions are
specifically excluded due to conservatism and materiality principles.
At the heart of modern financial accounting is the double-entry bookkeeping system. This
system involves making at least two entries for every transaction: a debit in one account,
and a corresponding credit in another account. The sum of all debits should always equal
the sum of all credits, providing a simple way to check for errors. This system was first
used in medieval Europe, although claims have been made that the system dates back to
Ancient Rome or Greece.
According to critics of standard accounting practices, it has changed little since.
Accounting reform measures of some kind have been taken in each generation to attempt
to keep bookkeeping relevant to capital assets or production capacity. However, these
have not changed the basic principles, which are supposed to be independent of
economics as such. In recent times, the divergence of accounting from economic
principles has resulted in controversial reforms to make financial reports more indicative
of economic reality.
Critical approaches such as Social accounting challenge conventional accounting, in
particular financial accounting, for giving a narrow image of the interaction between
society and organisations, and thus artificially constraining the subject of accounting.
Social accounting in particular argues that organisations ought to account for the social
and environmental effects of their economic actions. Accounting should thus not only
embrace descriptions of purely economic events, not be exclusively expressed in
financial terms, aim at a broader group of stakeholders and broaden its purpose beyond
reporting financial success.
1. Accounting is a crucial tool in business management since managers may use it as a
foundation for …….
A. identifying and communicating economic information.
B. making economic judgments and decisions.
C. measuring and transferring legal property.
2. Accounting merely keeps track of ……..
A. contractual transactions.
B. materiality principles.
C. non-financial transactions
3. In the double-entry bookkeeping system, the bookkeepers must ……
A. make two entries for every transactions.
B. provide a simply way to check for errors.
C. Both A and B.
4. Social accounting believes that companies should …….
A. describe all the economic events and no more.
B. account for the social and environmental effects of their economic actions and no
more.
C. consider both economic and social effects.
5. Which of the following statements is NOT true?
A. Companies should take responsibility for environment protection.
B. Companies should care about the benefits of their stakeholders.
C. Give a narrow image of the interaction between society and organizations.

III. Translate the following passage into Vietnamese:

Types of money

In economics, money is a broad term that refers to any financial instrument that can fulfill the
functions of money. Modern monetary theory distinguishes among different types of monetary
aggregates, using a categorization system that focuses on the liquidity of the financial
instrument used as money.

Translate into Vietnamese:

Trong kinh tế học, tiền là một thuật ngữ rộng dùng để chỉ bất kỳ công cụ tài chính nào có thể đáp
ứng các chức năng của tiền. Lý thuyết tiền tệ hiện đại phân biệt giữa các loại tổng hợp tiền tệ
khác nhau, sử dụng hệ thống phân loại tập trung vào tính thanh khoản của công cụ tài chính được
sử dụng như tiền.

Commodity money

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. Examples of
commodities that have been used as mediums of exchange include gold, silver, copper,
rice, etc.
Translate into Vietnamese:
Tiền hàng hóa

Giá trị tiền của hàng hóa xuất phát từ hàng hóa mà nó được tạo ra. Hàng hoá tự nó cấu
thành tiền, và tiền là hàng hoá. Ví dụ về hàng hóa được sử dụng làm phương tiện trao đổi
bao gồm vàng, bạc, đồng, gạo, v.v.
Representative money
Representative money is money that consists of token coins, other physical tokens such
as certificates, and even non-physical "digital certificates"
Translate into Vietnamese:
Tiền đại diện

Tiền đại diện là tiền bao gồm tiền mã hóa, các mã thông báo vật lý khác như chứng chỉ và
thậm chí cả "chứng chỉ kỹ thuật số" phi vật lý
Credit money
Credit money is any claim against a physical or legal person that can be used for the
purchase of goods and services.
Translate into Vietnamese:
Tiền tín dụng

Tiền tín dụng là bất kỳ khiếu nại nào chống lại một cá nhân hoặc pháp nhân có thể được
sử dụng để mua hàng hóa và dịch vụ.
Fiat money
Fiat money is any money whose value is determined by legal means, rather than the
strict availability of goods and services which are named on the representative note.
Translate into Vietnamese:
Tiền Fiat

Tiền Fiat là bất kỳ loại tiền nào có giá trị được xác định bằng các phương tiện pháp lý,
chứ không phải là sự sẵn có nghiêm ngặt của hàng hóa và dịch vụ được nêu tên trên tờ
tiền đại diện.
IV. Translate the following sentences into English:
1. Hiểu rõ về chi phí biên có vai trò cực kì quan trọng đối với công ty do nó giúp công
ty quyết định có nên tăng hay giảm sản lượng đầu ra hay không.
2. Nhu cầu tăng chưa chắc đã khiến giá cả tăng lên trong một thị trường cạnh tranh do
một công ty có thể mở rộng sản lượng để đáp ứng nhu cầu lớn hơn mà không phải
chịu chi phí đơn vị lớn hơn.
3. Huy động vốn từ thị trường chứng khoán chưa niêm yết có lợi ích là cho phép công
ty huy động vốn từ những nhà đầu tư bên ngoài mà không mất quá nhiều quyền quản
lý công ty.
4. Khoản chênh lệch giữa doanh thu và chi phí kinh tế cũng như các khoản thực thu và
thực chi cũng khiến khái niệm dòng tiền mặt trở nên quan trọng.
5. Trong khi các kế toán viên phần lớn chỉ tập trung mô tả các khoản thu chi thực của
công ty thì các nhà kinh tế lại chủ yếu quan tâm đến vai trò nhân tố quyết định của
chi phí và lợi nhuận đối với các quyết định của công ty.

Translate into English:

1. Understanding marginal cost is extremely important for the company because it helps
the company decide whether to increase or decrease output.

2. Increased demand is unlikely to drive prices up in a competitive market because a

company can expand output to meet larger demand without incurring larger unit costs.

3. Raising capital from the unlisted stock market has the benefit of allowing a company to
raise capital from outside investors without losing too much control over the company.

4. The difference between economic revenues and expenses as well as actual receipts and
payments also makes the concept of cash flow important.

5. While accountants mostly focus on describing the real income and expenditure of a
company, economists are mainly interested in the determinant role of costs and profits in
decisions. company's determination.