King Saud University

ADA 2413

Unit 3: Accounting

By: Hussain Saeed Al-ghawi

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 King Saud University

ADA 2413

Unit Three
 Chapter One

Chapter 1: An accounting overview

Warm-up
What is the definition of accounting?

What are the most common types of accounting jobs?

What is general knowledge of accounting?

What are the common mistakes in accounting?

What is debit and credit in accounting?

What is the difference between ‘accounts payable (AP)’ and ‘accounts

receivable (AR)’?

Accounts Payable Accounts Receivable

The amount a company owes because The amount a company has the right
it purchased goods or services on to collect because it sold goods or
credit from a vendor or supplier. services on credit to a customer.

Accounts payable are liabilities. Accounts receivable are assets.

Vocabulary

N Meaning/Definition

Financial A summary of the major financial activities of an organization,

1 statement issued on periodic basis.

2 Party A person or group of persons with a common interest.

3 Agency
A type of organization that usually acts for others and that
provides a service.

4 Process To go through a series of steps or prescribed procedures.

Stored amounts or raw materials, components, or finished

5 Inventory
products not yet used or sold.

6 Balance a state where things are of equal weight or force.

7 Earn To acquire something because of one’s behavior.

8 Fulfill To satisfy.

9 Hire To employ.

10 Owe To be required to pay.

11 Represent To express; to symbolize.

12 Equal To have the same value.

Reading
page. 70
Comprehension pages. 70-71

A: Answer the following questions about marketing. Questions with asterisks (*)
cannot be answered directly from the text.

1. Why accounting called the language of business?

Accounting is called the “language of business” because of its ability to communicate financial
information about an organization.
.................................................................................................................................................................................................................................................................

2. How is a standardized accounting system achieved?

In order to achieve a standardized accounting system the accounting process follows

accounting principles and rules.

...........................................................................................................................................................................................................................................................

3. What are revenues and expenditures?

Revenues are incoming money and expenditures are outgoing money.

....................................................................................................................................................................................................................................................................

4.What do the balance sheet and income statement have in common? How are the

different?

The balance sheet and the income statement are two common financial statements. They are

different, the first shows the financial position of a company of one point of time, while the

second shows the financial performance of a company over a period of time.

...................................................................................................................................................................................................................................................................

5. *How might the information contained in financial statements be useful to managers?

*How might creditors use this information?

The information contained in financial statements might be useful to manager in helping them

to make informed financial decisions. to creditors in helping them to find out whether the

company will be able to repay the credit on time or not.

...................................................................................................................................................................................................................................
6. How are accounting classified in the United States?
In United States, accountants are classified as public, private, and governmental.
............................................................................................................................................................................................
7. What kinds of services do public accountants provide?
Public accountant provide accounting services such as auditing and tax computation to
companies and individuals.
....................................................................................................................................................................................................................................................................

8. What is a CPA? *Do you have a similar type of position in your country? *Explain.
A CPA is a Certified Public Accountant. Yes, we had. In some company financial decision
making might be based on accounting information. For example, the management want to
expands its business to build a bigger factory to introduce new variety of goods.
..........................................................................................................................................................................................................................................................................

B. Circle the letter of the answer that best completes each of the sentences
below.
1- Accounting information is used by ________to help them make financial decisions.

A. managers

B. potential investors

C. creditors

D. all of the above

2- Regardless of the type of business or the amount of money involved:

A. all companies use identical accounting systems

B. balance sheets are more important than income statements

C. common procedures are used in handling financial information

D. no standardized accounting system is employed

3- Business monetary transactions are summarized in:

a. bank books
b. financial statements
c. computers
d. cash registers
 4- Public accountants may earn the title of CPA by:
a. becoming governmental accountants
b. paying a fee
c. fulfilling rigorous requirements
d. obtaining a Bachelor of arts degree in accounting

4- Private and governmental accountants are paid on a ___________basis.

a. salary
b. monthly
c. fee
d. weekly

page. 72-73

Vocabulary Exercises

A. Substitute appropriate terms for the italicized words or phrases in the sentences
below.

status agencies monitored maintain independently

procedure fee hire rigorous solely

1. Many accounting departments have strict entrance requirements; only the most
rigorous
qualified applicants are allowed to enter these programs. _____________________________

2. The particular method used to process employee insurance claims may vary from
procedure
_____________________________
company to company.

3. The stock market is closely watched every day. monitored

_____________________________

4. Rather than expand into foreign lines, the dress shop manager chose to deal only
with domestic fashion designers. solely
____________________________

5. Although the consultant’s charge for services was high, his guidance and advice
fee
_____________________________________________
were well worth the money.

6. The financial condition of a company is reflected in its financial statements. status

_____________________________________________
 7. When the business began to expand, a second bookkeeper was brought in to help
maintain
keep the books. _____________________________________________

8. In the United States there are numerous organizations that provide services at the
local, state, and national levels. agencies
_____________________________________________

B. Complete the sentences with the noun, verb, and adjective forms provided.

1. Communication/to communicate/communicative
a. Supervisor should strive for two-way __communication____with their employees.
b. By using an overhead projector, the guest speaker was able __to communicate__ his
statistical information clearly.
c. Because of the clerk’s highly developed ___communicative___skills, she was given
a position that required her to deal directly with customers.

2. Information/informed/informative
a. The owner _informed__ his employees that they would all receive a 5 percent pay
increase.
b. Getting Acquainted with Accounting, by John L. Carey, is very __informative_book.
c. Financial __information_is essential for organizational decision making.

3. Allowance/allowed/allowable
a. The supervisor lost control of his staff members after he _allowed_ them to override
his decisions.
b. When the factory was built 50 years ago, little _allowance_ was made for remodeling
and expansion.
c. Although __allowable__, smoking was discouraged in the lunch room.

4. Fulfillment/fulfill/fulfilling
a. At times the assembly line worker felt a lack of professional _fulfillment__.
b. When he was promoted to production supervisor, however, his job became much more
__fulfilling__.
c. Before the accountant could became a CPA, she had to __fulfill__a number of
requirements.
5. Standards/has standardized/standard
a. The __standard__ paper size in United States for business letters and memoranda
is 8,5 x 11 inches.
b. The computer department _has standardized_ its procedures for storing and retrieving
data.
c. Nowadays rigorous _standards__ are enforced in the area of food processing and
packaging

C. Fill in the blanks below with the most appropriate terms from the list.

financial
parties reflected standardized allows
statement

whereas interpretations informed communicates rigorous

financial statement
An income statement is one example of __________________________; communicates
it __________________________financial
standardized
information about a company over a period of time. A _______________________ format Is used to present
allows
the financial information. This _______________ parties
interested __________________________to compare one income
informed
statement to another in order to make __________________financial decisions. But there is still a great
reflected
deal of risk involved in financial decision making because the information _____________________ in an
interpretations
income statement is object to variety of ________________________
 Chapter Two

Page. 76

Chapter 2: The balance sheet

Warm-up
What is balance sheet?
Why is a balance sheet important?
What is included in the balance sheet?
What are examples of company assets?
What are examples of company liabilities?

What Is a Balance Sheet?

The term balance sheet refers to a financial statement that reports a company's assets,
liabilities, and shareholder equity at a specific point in time. Balance sheets provide the
basis for computing rates of return for investors and evaluating a company's capital
structure. In short, the balance sheet is a financial statement that provides a snapshot of
what a company owns and owes, as well as the amount invested by shareholders. Balance
sheets can be used with other important financial statements to conduct fundamental
analysis or calculating financial ratios.
Vocabulary

N Vocab meaning/Definition

1 Payable Needing to paid; due

2 Long-term over a period of year

3 Procedure The particular method by which something is processed

4 Internally Relating to an inner part; not external

5 Externally Relating to an outer part; not internal

Anything of value that a person or business owns that can

6 Asset
be given a monetary value.

7 Liability A debt owed or an obligation incurred by an organization

8 Condition The existing circumstance

9 Monitor To watch closely and systematically

10 Informed Knowledgeable

11 Independently Not guided or directed by others

12 Rigorous Difficult to fulfill or complete; strict; strenuous

Reading
page. 78
Comprehension Pages: 78-79

A: Answer the following questions about the meaning of business.

1. What is the final product of the accounting process?

The final product of the accounting process is the balance sheet.

..........................................................................................................................................................................
2. What is a balance sheet?

A balance sheet is a final product that provides a summary of what a company

own’s and what it owes on one particular day.

..........................................................................................................................................................................
3. Does the balance sheet provide financial information for a long period of time

or does it provides information for a specific point in time?

It provides information for a specific point in time for example, on Jan 30,1993.

..........................................................................................................................................................................
4. What is the difference between assets and liabilities?

Assets represent of value that is owned by a business.

liabilities are the debts that is a company owes.

..........................................................................................................................................................................
5. How is owner’s or stockholders’ equity determined?

Owners’ or stockholders’ equity is determined by subtracting liabilities from

assets.

..........................................................................................................................................................................

6. How can the relationship between asset, liabilities and owners’ equity be represented?

It can be represented by the fundamental accounting equation: assets equal liabilities

plus, owners’ equity.

.............................................................................................................................................................................................................................................................
7. Does the accounting equation always remain in balance? +why or why not?

Yes, it does. Because one side must equal the other. If not, it must be wrong with the
recording.
.............................................................................................................................................................................................................................................................

8. How can the business use a balance sheet? *as a manager, how would you find a balance
sheet useful?

A balance is useful for a business, because it provides a financial picture of a company on

a particular day. It provides manager with financial information for company decision making.
.........................................................................................................................................................................................................................................

B. Complete the balance sheet by writing in the correct terms from the list below.

Current Long-term
Assets Fixed assets
liabilities liabilities

Current Stockholders’ ----------------

Liabilities
assets equity

International Manufacturing, Inc.

Balance Sheet
December 31, 1993

Assets Liabilities
Current assets Current liabilities

Account payable $ 30,000

Cash $ 49,400 Income tax payable 19,000
Account receivable 1,600 Total $ 49,000
Inventories 53,000
Total $ 104,000 Long-term liabilities
Fixed assets Bonds $ 20,000
Long-term notes 40,000
Property $ 15,000 Total $ 60,000
Buildings 50,000 Total liabilities $ 109,000
Equipment 10,000
Stockholders’ equity
Total $ 75,000
Common stock $ 47,000
Retained earnings 23,000
Total assets $ 179,000
Total $ 70,000

Total liabilities and

stockholders’ equity $ 179,000
 Page. 80
Vocabulary Exercise
B: Look at the terms in the left-hand column and find the correct synonyms or definitions in the right-hand column.
Copy the corresponding letters in the blanks.

Answer Word Definition

(line 6)

G property A. assets equal liabilities plus owners equity

(line 12)
D equal B. provide information item by item

(line 2)

F condition C. indicate by words or symbols

(line 21)
D. have the same value as
B detail

(line 12)
accounting E. a series of transactions, changes, or functions that bring
A equation about a particular result

(line 15)

monetary F. the existing circumstance.

H

(line 1)
E process G. anything owned by a person

(line 15)
C express H. of or pertaining to money

C. Discuss the following question with a partner. In giving your answers, try to use the italicized terms.

1. What is the difference between accounts receivable and accounts payable?

Accounts receivable is assets and account payable is liabilities.

2. Why are accounts receivable and cash considered current assets while property and equipment are
considered fixed assets? What do you think the difference is between current and fixed assets?

Because they are easy changed into money. Current assets are short-term assets that
are typically used up in less than one year. Fixed assets are long-term, physical assets
have a useful life of more than one year.
3. The owners’ equity in a company equals assets minus liabilities. What is meant by owners’ (or
stockholders’) equity?

Net owning
 4. If you were a manager, how would you use the balance sheet to evaluate your company’s financial
condition?

Using data from balance sheet, we can calculate liquidity and leverage ratios

5. What do you consider your personal assets? Do you have any liabilities? What are they?

Mobile is one of my assets. Car loan is one of my liabilities.

page. 80

Text Analysis
Look at the reading passage to answer these questions.
1. What does each of the following refer to?

Lines Words Referents

a. 1 they
......................................
Financial statements
......................................................................................................................................................................................................................................................
......................................

b. 9
......................................
this
......................................
stockholders’ equity
......................................................................................................................................................................................................................................................

11 this accounting transactions

c. ......................................
......................................
......................................................................................................................................................................................................................................................

d. 15
......................................
these three factors
......................................
Assets = Liabilities + Owners’ Equity
......................................................................................................................................................................................................................................................
 Unit Three Tasks
Q 1. What is accounting?
........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 2. What are the two common financial statements?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 3. What are the differences between the balance sheet and income statement?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 4: How are accounting classified in the Unites States?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 5: What is financial statement?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 6. What are the differences between assets and liabilities?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 7. Write the definitions for these words below:

1. Inventory: ..............................................................................................................................................................................................................................................

2. Payable: ..............................................................................................................................................................................................................................................

3. Agency: ..............................................................................................................................................................................................................................................

4. Property: ..............................................................................................................................................................................................................................................

5. Balance: ..............................................................................................................................................................................................................................................
 King Saud University

ADA 2413

Unit 4: Finance

By: Hussain Saeed Al-ghawi

 King Saud University

ADA 2413

Unit Four
 Chapter One

Chapter 1: Why Finance?

Warm-up
What is finance and its importance?

What is the role of finance?

How does a company use its money or capital?

How does finance help a business?

What are the 5 principles of finance?

What do you mean by finance?

Finance, of financing, is the process of raising funds or capital for any kind of expenditure. It is the process

of channeling various funds in the form of credit, loans, or invested capital to those economic entities that

most need them or can put them to the most productive use.

What is the study of finance?

Finance is the specialized study of how an individual or a company manages its funds. Often

combined or overlapped with accounting/business, a finance degree gives you a broad understanding

of the way that money influences people and places.

What is the role of finance?

Finance involves managing the firm's money. The financial manager must decide how much money is

needed and when, how best to use the available funds, and how to get the required financing. The

financial manager's responsibilities include financial planning, investing (spending money), and financing

(raising money).
Vocabulary

N Meaning/Definition

An area of business that concentrates on securing and utilizing

1 Finance
capital and other assets to start up, operate, or expand a company.

The action or process of investing money for profit or material

2 Investment
result.

3 Capital The money needed to start and continue operating a business.

4 Purchase To buy; to obtain something in exchange for money.

5 Acquire To obtain; to gain possession of.

6 obtain To get; to succeed in acquiring.

7 Source A place from which something can be gotten or received.

8 Repay To pay back.

9 Deadline A time limit for completing something.

10 Stock Investment made by the owners of business.

Interest
11 payment
An amount paid on a regular basis for borrowing money.

12 Valuation The established value or price of something.

Reading
page. 90
Comprehension pages. 90-91

A: Answer the following questions about marketing. Questions with asterisks (*)
cannot be answered directly from the text.

1. What does a company need in order to begin operations?

To start up begin business, a company needs funds to purchase essential assets, support

research and development, and buy materials for production.

.................................................................................................................................................................................................................................................................................................................................................

2.What is capital? *Where can capital be acquired?

The money needed to start and continue operating a business is known as capital.it can be
acquired from the financial market.

..............................................................................................................................................................................................................................................................................................................................................

3. Why does a new business need capital? *What are some example of ongoing expenses

that a company encounters?

A new business needs capital not only for ongoing expenses but also for purchasing necessary
assets. example of ongoing expenses that a company encounters salaries, credit extension to
customers, advertising, insurance.

............................................................................................................................................................................................................................................................................................................................................

4.What is finance?
In general finance is securing and utilizing capital to start up, operate and expand a company
............................................................................................................................................................................................................................................................................................................................................

5. *Why does a company use both short-term and long-term capital?

To finance business operations and expansion.
.......................................................................................................................................................................................................................................................................................................................................................

A.........................................................................................................................................................................................................................................................................................................................................................
company utilizes short-term capital to pay for items that last a relatively short period of time.

6. How might a business utilize the short-term capital that it has borrowed?
.........................................................................................................................................................................................................................................................................................................................................................

7. What is the repayment period for short-term financing? For long-term financing?

Generally, short-term financing must be repaid in less than one year, while long-term financing can be

repaid over a longer period of time.

.........................................................................................................................................................................................................................................................................................................................................................
8. Have you ever financed anything on a short-term or long-term arrangement? *Explain?

Answers may vary

...................................................................................................................................................................................................................................................................................................................................

9. What are some items for which a company might seek short-term financing?
A company seeks short-term financing for salaries and office expenses.

..............................................................................................................................................................................................................................................................................................................................

B. Determine which of the following statements are true and which are false, then

put (T) or (F) in the blanks.

Long term financing is used by a company to purchase new equipment

1 and to construct additional facilities. T

2 A new business only needs capital to meet day-to-day expenses F

In financing business operation, a company relies almost entirely on

3 short-term financing.
F

Long-term and short-term financing may be acquired from outside

4 sources.
T

How well a company manage its finances affects the overall success of
5 the business venture.
T
 page. 91-92

Vocabulary Exercises
A. Substitute appropriate terms for the italicized words or phrases in the sentences
below.

Acquire Utilize Primary Arrangement Last

External Consideration Repaid Expect Capital

1. Although Ms. Robinson and her partners had already defined their new product line,
Capital
they were still searching for the money needed to purchase equipment and materials. _____________________________

2. In general, a business that is able to manage its finances successfully will continue to
Last
_____________________________
exit.
3. One of the chief element in financial planning is achieving the correct balance
Primary
_____________________________

between long-term and short-term capital.

4. A company needs sufficient funds to obtain necessary assets, such as property,

Acquire
____________________________
building, and inventories.

5. When a company wants to expand, one factor that always affects this decision is cost. Consideration
____________________________

6. In making investment, a financial manager uses a wide variety of information provided by

all departments of the company. Utilize
____________________________

7. When an individual or a company borrows money from a bank, this money must be
paid back by a specific date. Repaid
____________________________

8. Owners anticipate that the company will use fixed assets for many years. Expect
____________________________
 C. Fill in the blanks with the most appropriate terms from the list.

Similarly Capital Primary Short-term Support

Consideration Purchase Start up Arrangements Finance

start up
The Cunhas were planning to .................................................. a small retail business. Before
capital
making the final decision, they looked at the amount of personal ............................... they had
finance
to invest. The remaining funds they would have to .................................................................... through
Short-term arrangements consideration
various ........................................ and long-term ............................................... . Another ...................................... was
purchase
the type of equipment they would have to ................................................... similarly
initially. ...................................,

the Cunhas evaluated the costs of inventory, employee salaries and benefits, and

other general expenses. After reviewing all these factors, the Cunhas decided to open

their business.
 Chapter Two

Page. 96

Chapter 2: Acquisition of Capital

Warm-up
What is capital asset acquisition?
What is an example of acquisition of funds?
What is the difference between capital and
financial capital?
What is an example of acquisition of funds?

What is capital asset acquisition?

Asset acquisitions result from purchases (capital or controlled), donations, received as

state surplus/excess property, or transfers from another institution.

What is the difference between capital and financial

capital?
Capital refers to assets that are used for producing goods or services. All items,
like machinery, tools, and buildings, that are directly used for manufacturing
goods or services are called capital goods. Financial capital is the money used for
purchasing capital goods.
Vocabulary

N Vocab Meaning/Definition

1 Obligation A regally binding debt than an individual or an organization has

agreed to repay at some future date.

To solicit and obtain funds for a specific period with promise

2 Borrow
to repay.

3 Entitle To give one a right; to allow or allot.

4 Issue To offer or make available for sale or distribution.

5 Meet To satisfy the requirements of.

To make a person or thing do something.

6 Force

7 Proportional Relating to a part or amount that is considered in relation to

the whole.

8 Initial First; occurring at the very beginning.

9 Quarterly Relating to something that is done four times a year.

10 Exemplify To illustrate, or show, by the use of an example.

11 Turn to To go to.

12 Severe Extreme; critical.

 Reading
page. 98

10

15

20

25

28
Comprehension Pages: 98-99

A: Answer the following questions about the meaning of business.

1. Why does a corporation need capital?

A corporation needs capital in order to start up, operate, and expand its business.

.........................................................................................................................................................................................

2. What are the two basic types of financing used by a corporation?

A corporation uses two basic types of financing: equity financing and debt financing.
..........................................................................................................................................................................
3. From whom are funds acquired for each type of financing?
Equity financing refers to funds that are invested by owners of the corporation and debt financing

on the other hand refers to funds that are borrowed from sources outside the corporation

.........................................................................................................................................................................................

4. What does one share of stock entitle the purchases to?

Each share entitles the purchaser to a certain amount of ownership.

............................................................................................................................................................................................................

5. Why do the initial sales of stock involve some risk?

The initial sales involve some risk on the part of the buyers because the corporation has no record

of performance.

......................................................................................................................................................................................

6. How might a stockholder benefit from his or her stock?

If the corporation is successful, the stockholder may profit through increased valuation of the shares of stock,

as well as by receiving dividends.

.............................................................................................................................................................................................................................................................

7. If the corporation is not successful, how might the stockholder be affected?

If the corporation is not successful, the stockholder may take a severe loss on the initial stock investment.
.............................................................................................................................................................................................................................................................
8. How does the corporation benefit from selling bonds? How does the bondholder benefit
from purchasing bonds?
The corporation borrows money from an investor in return for a bond.

The bondholder benefit from periodic interest payments

.............................................................................................................................................................................................................................................................

B. Circle the letter of the answer that best completes each of the sentences below.

1- The process of acquiring capital is known as:

A. Accounting

B. Capitalizing

C. Financing

D. Incorporating

2- The unit of ownership in a corporation is a:

A. Bond

B. Share

C. Certificate

D. stock

3- All corporations receive their starting capital by:

A. Selling bonds

B. Purchasing stock

C. Purchasing shares

D. Selling stock

4- The sale of corporate bonds is an example of .......................... financing.

A. Debt

B. Bond

C. Equity

D. Corporate
5- A corporation may be forced to sell its assets if it does not:

A. Pay dividends

B. Share its profits with stockholders

C. Make the required payments to bondholders

D. sell bonds

Page. 100
Vocabulary Exercise
B: Look at the terms in the left-hand column and find the correct synonyms or definitions in the right-hand column.
Copy the corresponding letters in the blanks.

Answer Word Definition

(line 23)

G Interest payment A. Satisfy

(line 17)
D Severe B. Give one right

(line 24)

F C. Occurring at regular times

Obligation

(line 5)

H Source D. Extreme

(line 8)

B Entitle E. First

(line 23)
F. The contract or promise that compels one to follow
C Periodic a certain course of action

(line 12)
J Issue G. A sum paid for borrowing money

(line 23)
I deadline H. Anything or place from which something is obtained

(line 26)
A Meet I. A time limit for finishing something

(line 13)
E initial J. Print for sale or distribution
 Vocabulary Page. 100-101

C. Complete the sentences with the noun, verb, and adjective forms provided.

1. consideration / considered / considerable

consideration by the board of directors, a decision was made to issue
a. After careful ………………............................
more shares of stock.
considerable
b. A corporation must raise a ………………................................ amount of capital in order to purchase
essential assets.
considered the price, the size, and the mileage.
C. Before buying her new car Nancy ….................................

2. Initiation / has initiated / Initial

initial
a. My …….............................. impression of the applicant was not accurate.
has initiated
b. Ms. Marovitz is an aggressive and competent manager, she ……...................................a number
of new programs since joining the firm.
initiation
C. With the ....................................... of sick-leave benefits, employees could miss a certain
amount of work due to illness without loss of pay.

3. investment / to invest / invested

to invest
a. Mr. Lee decided ………………................................... $5.000 in Lyman Product, Inc
investment
b. Although he had researched the market carefully, he took a loss on his ………………....................
invested
C. A stockholders ………………................................... funds are usually not tax deductible.

4. acquisition / to acquire / acquired

to acquire
a. There are numerous ways for business ………………................................... capital

b. The ………………...................................
acquisition of funds is an important aspect of financial management.

C. The ability to type accurately and quickly is an ………………...................................

acquired skill.

5. finance / are financed / Financial

Financial
a. ………………................................... information is provided by income statements and balance sheets.
are financed
b. Some students ……………….................................... by their parents until they graduate from college.

C. There are many job opportunities for individuals who major in the field of
finance
………….....................................……..
 Unit Four Tasks
Q 1. What is finance?
........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 2. Why new business needs capital?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 3. What are the differences between long-term and short-term arrangement?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 4: A corporation uses two basic types of financing. What are they?

........................................................................................................................................................................................................................................................................

........................................................................................................................................................................................................................................................................

..........................................................................................................................................................................................................................................................................

Q 5: All corporations receive their starting capital from:

1..........................................................................................

2. ........................................................................................

3. ........................................................................................

Q 6. Write the definitions for these words below:

1. Finance: .......................................................................................................................................................................................................................................

2. Capital: ............................................................................................................................................................................................................................................

3. Investment: .....................................................................................................................................................................................................................................

4. Funds: .................................................................................................................................................................................................................................................

5. Interest payment: ...........................................................................................................................................................................................................................

6. Stock: .................................................................................................................................................................................................................................................