Online Learning

Importance of knowing the current economy

2023-03-08T23:34:00.001+05:30

The global economy is constantly evolving and affected by a variety of factors. In order to stay informed about the current state of the global economy, it is important to be aware of some key economic indicators and trends.

One important indicator is Gross Domestic Product (GDP), which measures the total value of goods and services produced in a country. The GDP of major economies such as the United States, China, and the European Union can give an idea of the overall health of the global economy.

Another important trend is globalization, which has led to increased international trade and investment. However, the COVID-19 pandemic has disrupted supply chains and trade flows, causing uncertainty and volatility in the global economy.

Central bank policies also play a crucial role in the global economy. For example, the US Federal Reserve's decisions on interest rates can impact global markets and currencies. Similarly, the European Central Bank's monetary policy can affect the value of the Euro.

In addition, geopolitical tensions and conflicts can have significant impacts on the global economy. For instance, the ongoing trade war between the US and China has caused disruptions in international trade and investment, affecting businesses and consumers around the world.

Lastly, the rise of new technologies and innovations such as artificial intelligence and blockchain could significantly impact the global economy in the coming years, creating new opportunities and challenges.

In conclusion, understanding the key economic indicators, trends, and factors that affect the global economy is crucial for individuals and businesses alike. By staying informed and adapting to changes in the economy, we can better navigate and thrive in an ever-changing global marketplace.

Importance of Risk Management

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Risk management is an essential process for individuals, organizations, and businesses to identify, assess, and mitigate potential risks. The goal of risk management is to minimize the negative impact of uncertain events and increase the likelihood of achieving desired outcomes.

There are several steps involved in effective risk management. First, it is important to identify potential risks and their potential impact. This can be achieved through risk assessment techniques such as risk mapping, scenario analysis, and brainstorming.

Once risks have been identified, the next step is to evaluate and prioritize them based on their likelihood and potential impact. This can help organizations determine which risks require the most attention and resources.

After risks have been assessed and prioritized, it is important to develop and implement risk mitigation strategies. These strategies can include measures such as risk transfer, risk avoidance, risk reduction, and risk acceptance.

Risk management is not a one-time process but rather an ongoing effort. Regular monitoring and evaluation of risk management strategies can help organizations ensure that they are effective and up-to-date.

Effective risk management can bring several benefits, including increased efficiency, reduced costs, improved decision-making, and enhanced reputation. It can also help organizations respond quickly and effectively to unexpected events, minimizing their impact and reducing losses.

In conclusion, risk management is an important process for individuals and organizations to identify and manage potential risks. By following a structured and ongoing approach to risk management, organizations can increase their chances of success and minimize the negative impact of uncertain events.

Why we want to study well and how to effect it our future

2023-03-08T23:16:00.000+05:30

Studying well is important because it has a significant impact on our future. There are several reasons why we should aim to excel academically, and here are a few of them.

Firstly, studying well helps us gain knowledge and develop new skills that we can use to achieve our goals. Whether we want to pursue a specific career or start a business, having a good education and a strong academic foundation can help us achieve our aspirations.

Secondly, studying well also opens doors to more opportunities in life. Many careers require a certain level of education, and employers often look for individuals who have demonstrated academic excellence. Excelling academically can increase our chances of getting into good colleges, obtaining scholarships, and securing job opportunities.

Thirdly, studying well helps us develop critical thinking and problem-solving skills, which are valuable assets in any profession. By learning how to analyze complex issues and come up with innovative solutions, we can contribute to our work and make a positive impact on society.

To study well, it is important to create a conducive learning environment, set clear goals, and maintain a consistent study routine. Eliminating distractions, such as social media and television, can help increase focus and productivity. Additionally, setting specific study goals and breaking them down into manageable tasks can help us stay motivated and on track. Consistency is key, and dedicating a set amount of time each day to studying can help us make progress toward our goals.

In conclusion, studying well is essential for achieving our dreams and securing a successful future. By developing knowledge, skills, and critical thinking abilities, we can open up new opportunities and make valuable contributions to our chosen fields. With dedication and hard work, we can excel academically and reach our full potential.

AFTER THE COVID-19 PANDEMIC

2023-01-17T16:27:00.002+05:30

The COVID-19 pandemic has had a profound and far-reaching impact on the global economy. The sudden and widespread shutdowns of businesses and industries, combined with the restrictions on travel and movement, have led to a sharp decline in economic activity.

At the start of the pandemic, governments around the world quickly implemented measures to try and stabilize their economies. This included providing financial assistance to businesses and individuals, as well as implementing monetary policies such as interest rate cuts and quantitative easing. These measures have helped to mitigate the economic damage caused by the pandemic, but they have not been enough to prevent a deep recession.

As the pandemic continues, businesses have been forced to shut down, supply chains have been disrupted, and unemployment has risen. Many small businesses, particularly those in the service sector, have been particularly hard hit. In addition, the pandemic has also had a disproportionate impact on certain groups, such as women and low-income workers.

As economies start to reopen, there are signs of recovery. However, the road to full recovery is likely to be long and uncertain. Many businesses have permanently closed, and unemployment remains high. The ongoing crisis has also highlighted the economic inequalities that exist within societies, and the urgent need for a more inclusive economic system.

The pandemic has also exposed the fragility of the global economy and the importance of having a more robust and resilient economic system. This includes investing in industries that are less vulnerable to pandemics, such as technology and healthcare, and providing support to small businesses and workers.

Additionally, the pandemic has accelerated the shift towards digitalization and e-commerce, which has had a significant impact on the way businesses operate and consumers shop. This shift has also had a profound impact on the labor market, as more and more jobs are being done remotely.

The pandemic has also highlighted the importance of international cooperation in addressing global economic challenges. The economic recovery will require a coordinated effort from governments and international organizations to ensure that the most vulnerable are protected and that economic growth is inclusive and sustainable.

Overall, the economic impact of the COVID-19 pandemic has been severe, and the recovery is likely to be a slow process. However, as the world moves forward, it will be important to continue to support those who have been hit hard by the pandemic, while also addressing the structural issues that have been exposed. This may include investing in industries that are less vulnerable to pandemics and providing support to small businesses and workers. Furthermore, it is vital to address the inequalities that have been exacerbated by the pandemic and to build a more inclusive and sustainable economic system.

Useful Accounting words meaning part 2

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Financial statements - Balance sheet, income statement, cash flow statement, and statements of shareholders’ equity.

Financial transaction - An exchange between a business and one or more external parties to a business. It has a monetary impact on the financial statements of a business.

Fundamental accounting concepts - They are concepts governing the accounting system and include going concern, consistency, accruals, matching principle, and conservatism.

Fundamental accounting equation - Assets =

Liabilities + Stockholders’ Equity.

Going concerned - The assumption that the business will continue to operate for the foreseeable future.

Income statement - It is a financial statement that reports revenues, expenses, gains, and losses during a period.

Inventory - They are goods of a firm to be sold to customers to generate revenues.

Inventory impairment - It occurs when the net realizable value of an inventory is less than the cost. Inventory impairment requires a decrease in the value of the inventory account on the balance sheet, a corresponding expense on the income statement.

LIFO - It assumes that the last units purchased or manufactured are the first units sold. This method matches recent costs with revenues; earlier purchases remain in inventory.

Lower of the cost or the market - Valuation method used to value inventory on the balance sheet. It departs from the cost principle; it serves to recognize a loss when replacement cost or net realizable value of an inventory drops below cost.

Matching - Revenues earned by a business are matched with the expenses incurred in earning those revenues.

Net realizable value of receivables - Face value of receivables fewer cash discounts, sales returns, and bad debts.

Percentage of sales method - Provision for bad debts is equal to a certain percentage of credit sales. The percentage comes from either past experience or the bad debt rate of other firms in the same industry.

Prepaid expenses - It is an asset account that records the prepayment of future expenses.

Provision for doubtful accounts - It is the amount of estimated accounts receivables that firms do not expect to collect from customers.

Recording financial transactions - It involves the following steps:

Identify the accounts affected (at least two).

Classify each account as an asset, liability, or shareholders’ equity.

Determine the direction of the effect on each account.

Make sure that the fundamental accounting equation remains in balance.

Revenue recognition - The accounting principle governing when revenues need to be recognized in financial statements.

Sales returns - It is a provision account to record the estimated amount of sales returns by customers.

Shareholders - Ultimate owners of firms.

Unearned revenue - It is a liability account recording the firm’s promise to perform services or deliver goods in the future and is generated when customers pay in advance.

Non Trading Organizations Account

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Receipt and Payment Account

It is a real account. The basic rule of double entries is followed to prepare this account. It is prepared from a cash book at the end of the accounting period. Every transaction regarding the cash transactions is recorded in the Cash Book in chronological order. We may say that the Receipt and Payment account is a summary of cash payments and cash receipts during the current year. if rent and salary paid on monthly basis all over the accounting period, and donation or subscription received during the current year recorded in a cash book date wise but at the end of the accounting period, the Receipt and Payment account will contain the total amount of rent paid, salary paid, subscription received and donation received. All cash a receipt will be recorded on the debit side and all cash payment will be recorded on the credit side.

Income and Expenditure Account

Income and expenditure account is a nominal

account and as an equivalent to a Profit and Loss account.

The essential features of an income and expenditure account are as follows −

Expenses and losses are recorded on the debit side of it and all incomes and gains are recorded on the credit side.

Capital income and expenditure are excluded and revenue income and expenses are included in it.

It is based on a mercantile system of accounting, therefore, the income and expenses related to preceding years or subsequent years are excluded while preparing the income and expenditure account.

The credit balance of an income and expenditure account shows a surplus. Further, excess of income over the expenditure and the debit balance of it show deficit i.e. excess of the expenditure over income.

Only nominal accounts are considered in the preparation for this account.

Balance Sheet

On the date on which a balance sheet is prepared, particulars of all the assets and liabilities are recorded in the same manner as we do in any other profit-making firms. Its capital fund is made up of surplus income over expenditure and other incomes capitalized in the given period of time. Sometimes, two balance sheets need to be prepared At the beginning of the accounting, year to know the opening capital fund and At the end of the financial year to know the financial position of the organization.Conversion of Receipt and Payment Account into Income and Expenditure Account

Following are the steps required to convert receipt and payment account into income & expenditure account

Opening balance and closing balance of a receipt and payment account representing opening cash in hand, opening cash at bank, closing cash in hand, and closing cash at the bank need to be ignored.

Items of capital receipts and capital payment will be excluded while preparing an income and expenditure account.

Revenue items of an income and expenditure will be considered only at the time of preparation of an income & expenditure the account from the receipt and payment account.

All adjustments regarding the outstanding expenses, prepaid expenses, provision for bad debts, provision for depreciation, income received in advance, and income receivable will be done.

An income and expenditure relating to the preceding year or subsequent year will be ignored, and the items only related to the current year will be considered.

Non Trading Organizations

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Sole proprietorships, Limited companies, and partnership are business organizations which have been formed for the purpose of making profits. To ascertain whether they make profits or losses these organizations prepare

an account known as trading and profit and loss account periodically. Non-trading organizations have been formed to serve a section of the society or welfare of their membership. they maintain these organizations with the revenue derived from various sources such as membership fees donations, carnivals, festivals, etc, These organizations have to prepare accounts showing their incomes and expenses and their financial position to their membership at least once a year. Non-trading organizations prepare income and expenditure account, receipt and payment account, and balance sheet annually and submit the same to the members at the annual general meeting.

Some Organizations prepare receipt and expenditure accounts instead of income and expenditure accounts taking into account only cash receipts as a source of income and expenditure on an accrual basis.

Advantages of Non-Profit Organizations

Tax Exemption
Defined Debts
Government Grants
Enduring Existence
Inherent Compensation

Accounting for non-trading concerns

The accounting for a non-trading concern is generally as per the principles of a double-entry bookkeeping system. They generally only maintain a cash book to record receipts and payments made during the year. The cash book is converted into a receipt and payment account at the end of the year. The receipts and payments account is a summarized form of cash book and is considered a more useful source of information for preparing final accounts of the entity. By using information from receipt and payment account and from other sources, the entity prepares its income and expenditure account and balance sheet at the end of the period. The income and expenditure account shows a surplus or deficit for the year and the balance sheet shows the assets and liabilities of the entity at the end of the year.

Surplus or excess of income over expenditure ascertained by the income and expenditure account is never distributed among the people who support the organization but rather saved to be used by the organization in the future to improve the quality of services and to buy assets necessary to carry out operations of the organization.

Examples of non-trading concerns are as follows:

Sports clubs

Civil hospitals

Libraries

Charities

Government-owned educational institutions

Clubs

Colleges

Athletic Clubs

We can summarize these organizations in the following three types of categories

Clubs, associations, or society works for the welfare of their members.

Charitable institutions like hospitals, students’ hostels, and other educational institutions providing education to poor children as well as illiterate young and old groups.

Professional firms of lawyers, chartered accountants, architects, doctors, solicitors

Useful Accounting words meaning part 1

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Accounting - It is a system that collects, processes, analyzes, measures, and records financial information of a firm and reports that information to decision-makers.

Accounting fraud - It is the intentional misrepresentation and abuse of accounting information including sales, revenues, expenses, assets, or liabilities to inflate earnings, stock values, obtain more loans, or avoid debt commitments.

Accounts receivables - They are promises to receive

money from customers and are generally classified as current assets.

Accrual accounting/ Accruals - It is the accounting principle that recognizes revenue when earned and associated expenses when incurred, not when money is received/paid.

Annual report - It is a document used by most companies to disclose the corporate information to their shareholders. It includes an opening letter from the CEO, financial data, results of operations, market segment information, new product plans, subsidiary activities, and research and development activities on future programs.

Bad debt - Bad debts occur when debtors do not pay. Bad debts reduce the number of accounts receivable on the balance sheet and create a loss in the income statement.

Balance sheet - It reports the number of assets, liabilities, and stockholders’ equity of an accounting entity at a point in time.

Building financial statements - It is the process of recording transactions and sorting them to form a balance sheet, income statement, and cash flow statement.

Cash accounting - It is the accounting principle that recognizes revenue when cash is received and recognizes expenses when cash is paid.

Cash discounts - They are discounts given over sale price if the customer pays in a certain time period to encourage early payment.

Cash flows statement - It is the financial statement showing how the cash of a firm changes in a certain period.

Conservatism - Revenues/profits are recorded only when earned but provision is made for all known losses, even when the amount is only the best estimate on the basis of available information.

Consistency - Consistency of accounting treatment of like items within each accounting period and from one period to the next.

Contingent liability - A potential liability that has arisen as the result of a past event; it is not a liability until some future event occurs.

Creditors - Creditors lend money to a company for a specific length of time.

Deferrals - Receipts of assets/cash in advance before goods or services are delivered.

FIFO - It assumes that the first units purchased or manufactured are the first units sold. This means that early purchases are expensed against revenues and recent costs are included in the inventory.

Consignment Accounts

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Consignment accounts are petty trading and profit and loss account where we ascertain the profit or loss by sending goods to an agent known as a consignee. Consignment account goods sent on consignment account, consignees account, consignment debtors accounts are the accounts kept by the consignor while the consignee does not keep any accounts. He only prepares a document known as account sales describing the cash and credit sales,

expenses and commissions due, and remittance to the consignor. It is from this statement that the consignor prepares the accounts kept by him. Goods received by the agent belong to the consignor and not his. He sells other goods on cash and credit terms and collects money from debtors and sends them to the consignor after deduction his dues.

Consignees Account

This is a personal account. The debtor and creditor relationships are here. Debits will show how much is receivable from the consignee and credits will show how much is payable to the consignee.

Credits

Expenses met by the consignee.

Remittances sent to the consignor and the balance due to the consignor.

Commissions due to the consignor.

Debits

Bad debts applicable to consignees.

Cash sales amounts collected the consignment debtors by the consignee.

Consignment accounts

Credits

Cash and credit sales, Value of the closing stock.

Prepositional cost of the goods returned by the consignee.

Debits

Bad debts if shared by both parties or by him

profit or loss on the consignment

cost of the goods sent to the consignee

the consignee's expenses such as duty, advertising charges, Transport charges, Delling and distribution expenses, and his commission.

All expenses incurred in sending the goods to a consignee

The cost of goods sent to the consignee is debited to the consignment account and credited to goods sent on the consignment account. The cost of the goods sent to the consignee is credited to the general trading account and debited to goods sent on the consignment account.

Two Parties: Consignment accounting mainly involves two party’s consignor and consignees.

Transfer of Procession: Procession of goods transferred from consignor to consignee.

Agreement: There is a pre-agreement between the consignor and consignee for the terms and conditions of the consignment.

No Transfer of Ownership: The ownership of goods remains in the hands of the consignor until the consignee sells it. The only procession of goods is transferred to a consignee.

Re-Conciliation: At the end of the year or periodic intervals consignor sends a Pro-forma invoice while the consignee sends account sale details and both reconcile their accounts

Separate Accounting: There is independent accounting done of consignment account in the books of consignor and consignee. Both prepare consignment account and record the journal entries of goods through consignment account only.

Control Accounts

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There are only two control accounts in accounts. They are Debtors Control Account or Sales Ledger Control Account and Creditors Control account or Purchase ledger control account. They are independent accounts with no connection with double-entry. information is collected from various sources to prepare these two accounts. no cash sales or cash purchases and provision for bad debts included in them. some of the uses of preparing these two control accounts can be given as follows.

when the trial balance disagrees, we refer first to the control accounts to trace the errors.
for the preparation of the trial balance, you can copy the debtors' balance and creditors balance from them.
the opening and closing balances of control accounts should be equal to the total of the schedule of balances of debtors and creditors ledger account balances.
it is a part of internal control in operation.

Dishonoured cheques from the dishonoured cheque register or dishonoured cheques account found in the general ledger. Interest charged to debtors, Discount allowed bad debts, Sales returns from the general ledger. cheques or cash received from the cash book. sales returns form the sales return daybook. in case of contra, entries refer to the journal. purchases figure taken fro purchase day book and returns form the purchase returns day book. Cheques/cash paid to form cash book. discount received bill payable from the general ledger. make it a point cash sales and purchases or provision for bad debts should not be included in control accounts, it is a grave mistake if included. sometime debtor balances previously written off will be received later, such receipts are excluded from receipts from debtors as such receipts are not included as outstanding balance in the opening balance of the debtor's control account.

Advantages of Control Accounts

Why use the control accounts?

Provides a checking mechanism to detect errors and fraud at an early stage;

Removes bulky details from the general ledger;

Larger companies can set up accounting departments for specific areas;

Trial balance figures provide a summary of totals, rather than individual accounts;

Minimize the likelihood of fraud because different staff independently maintains control account records and subsidiary ledger.

Control Account and the Double Entry System

Businesses can use control accounts in two different ways:

They can be an integral part of a double-entry system. Businesses use General ledger to keep the debtors and creditors control accounts. They use personal accounts as subsidiary records for analysis only, and the Sales and Purchases Ledgers are memorandum books.

Businesses can also use control accounts to extract information from them. In this case, the subsidiary ledgers become a part of the double-entry system.

Measurement of the elements of financial statements

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The elements of financial statements are measured in different ways depending on their nature. Here are some common methods used for the measurement of each element:

Assets: Assets are typically measured at historical cost, which is the original cost of acquisition. Alternatively, assets can be measured at fair value, which is the estimated market value of the asset.

Liabilities: Liabilities are typically measured at the amount owed, which is the amount of the obligation to be paid in the future. This includes amounts owed to creditors, loans, and other financial obligations.

Equity: Equity is typically measured at historical cost, which is the original amount of investment made by the owner(s) of the business. Alternatively, equity can be measured at fair value, which is the estimated market value of the equity.

Revenues: Revenues are typically measured at the amount earned during a specific period, which is the sales price of goods or services sold.

Expenses: Expenses are typically measured at the amount incurred during a specific period, which is the cost of goods or services consumed or used.

Gains and losses: Gains and losses are typically measured at fair value, which is the estimated market value of the asset or liability at the time of sale or disposal.

In summary, the measurement of financial statement elements is typically based on either historical cost or fair value, depending on the nature of the element being measured.

Why Organizations Engage in International Business?

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Organizations engage in international business for a variety of reasons. One of the primary reasons is to expand their market reach and tap into new markets. By entering into international markets, businesses can access a larger customer base, increase their revenue, and diversify their income streams.

Another reason organizations engage in international business is to take advantage of lower production costs. For example, companies may move their manufacturing operations to countries where labor costs are lower, which can help reduce their production expenses and increase their profitability.

International business also allows organizations to access new technologies, knowledge, and resources. This can help businesses to improve their products and services, increase efficiency, and gain a competitive advantage in the marketplace.

Moreover, international business can also help organizations to reduce their risk and diversify their operations. By operating in multiple countries, companies can spread their risk across different markets and reduce their exposure to economic or political instability in any one country.

Finally, some organizations engage in international business to fulfill their social responsibility goals, such as supporting sustainable development, reducing poverty, or promoting human rights. These companies often see international business as a means to make a positive impact on society and contribute to global economic development.

Overall, engaging in international business can provide organizations with a range of benefits, including increased market reach, cost savings, access to new technologies and resources, risk reduction, and social responsibility fulfillment.

Sales Revenue

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Accounts Receivable-Debit

Product Sales Revenue-Credit

Cost of Goods Sold-debit

Inventory- Credit

Supplies Inventory-Debit

Accounts Payable -Credit

General Knowledge

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Which of the country was not part of the Soviet Union in 1991?Yugoslavia

Who is the first person to reach the North Pole? Robert Peary

Who is the first person to reach Mount Everest? Sherpa Tensing, Edmund Hillary

Where would you find the Itaipu Dam? Panama River, South America

In 2008, Online Survey, which of the following is not one of the New Seven Wonders Petronas Twin Towers

What is the capital of Estonia? Tallinn

What is the type of government of Denmark? Constitutional Democracy

Where is the official home of Santa Claus? Finland

The largest dam in the world is located in? South America

What is the largest country in the world in terms of land area? Russia

the country of Singapore is made up of how many islands? 6

Adding and subtracting with debits and credits

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Debits and credits affect the accounts differently. some accounts are increased by debits. while others are increased by credits. see how debits and credits affect accounts.

Asset

Increases - Debit Entry impact
Decreases-Credit Entry Impact

Equity

Decreases- Debit Entry impact
Increases- Credit Entry Impact

Liability

Decreases-Debit Entry impact
Increases- Credit Entry Impact

Revenue

Decreases-Debit Entry impact
Increases- Credit Entry Impact

Expense

Increases- Debit Entry impact
Decreases-Credit Entry Impact

Final Accounts

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Final Accounts include trading and profit and loss account or revenue account, balance sheet, statement of changes in equity, cash flow statement, and other statements and notes related to above. you should understand that the trial balance is prepared by copying balances from ledger accounts and it is from the ledger account balances we should prepare the trading and profit and loss account and balance sheet and nothing to do with books of prime entry. the purpose of preparing the trading and profit and loss account is to ascertain whether the business made a profit or loss after doing business for a certain period. here there is a tie period. you can prepare the above revenue account for
one, three, six, nine, or twelve months. The financial year is twelve months and the end date is known as the balance sheet date. traditionally we prepare accounts for twelve months period. the purpose of a balance sheet is to give the asset and liabilities of the business on the balance sheet date.
all the nominal account balances, incomes, expenses, losses, and gains should be transferred to the revenue account at the end of the financial year leaving out the asset and liability balances to copy them and prepare the balance sheet as we do when we prepare the trial balance. please note that the profit and loss account should include all incomes and expenses on an accrual basis to arrive at the correct net profit or loss for the period.

it is not the amount paid but the amount payable and not the amount received but the amount receivable that should be shown in the profit and loss account against expenses and incomes so that the correct figure will appear in the profit and loss account relevant to the period. the bill payable for the year should be credited in the relevant expenses account and the amount receivable should be debited in the income account when transferring balances to the profit and loss account. we should easily identify the nominal accounts and real accounts and do the transfers and copying them correctly when they prepare a revenue account and balance sheet. sometimes income and expenses account become asset or liability accounts at the end after transferring the correct balance to the revenue account. The trading account is the first section of the trading and profit and loss account where you arrive at the gross profit or loss by comparing the cost of sales with sales and the latter is the profit and loss account which gives the final result net profit or loss for the period.

(Note: financial reports are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyze the information diligently. some phenomena are inherently complex and cannot be made easy to understand. Excluding information on those phenomena might make the information easier to understand, but without it, those reports would be incomplete and therefore misleading. Therefore matters should not be left out of financial statements simply due to their difficulty, as even well-informed and diligent users may sometimes need the aid of an adviser to understand information about complex economic phenomena.)

Useful International Business Word

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Foreign Capital

Foreign Companies

Foreign Competitors

Foreign Consumers

Foreign Control

Foreign Customs

Foreign Debt Market

Foreign Direct

Foreign Exchange Dealers

Foreign Exchange

Foreign Exchange Market

Foreign Exchange Swaps

Foreign Properties

Foreign Resources

Forward Foreign Exchanges

Investments

Foreign Exchange

Controls

Instruments

Transaction

Forward Market

Forward Value

Free Trade

Free Trade Areas

Full Employment

Functional Division

Functional Strategies

Future Foreign Exchange

Users of the financial statements and annual reports.

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Though accounting records and reports a company’s transactions, many different parties benefit from this information. These individuals — called financial statement users

Shareholders of the company

The company owners, want to assess how well the management is performing. they want to know how profitable the company's operations are and so the potential for dividend payments as well as whether their investment is sound.

Managers of the company

Managers of the company appointed by company owners to supervise the financial situation of the company as it is currently and as it is expected to be in the future. this is to enable them to manage the business efficiently and to make effective decisions. they are particularly interested in detailed information such as the profitability of particular product lines or the age of receivables.

Employees of the company

employees should have a right to information about the company's financial situation because their future careers and the size of their wages and salaries depend on it.

Suppliers

Suppliers provide goods to the company on credit, they want to know about the ability of the company to pay its debts.

Competitors

If you were a manager at PepsiCo, would you be interested in knowing the relative profitability of Coca-Cola's operations in the United States, Brazil, Japan, and France? Of course, you would, because that information could help you identify strategic opportunities for marketing efforts where potential profits are high or where your competitor is weak. Similarly, Wal-Mart can use information in financial statements to track its competitors and identify new opportunities to grow and use its market share in retail to increase its revenues in other ventures.

Customers

They need to know that the company is a secure source of supply and is in no danger of having to close down.

Government and their agencies

These parties are interested in the allocation of resources and therefore in the activities of business entities. they also require information in order to provide a basis for national statistics.

Lenders

Lenders have an interest in both a company’s profit and cash flow. These users may have given loans to the business. Companies with an inability to repay the loans increase the lender’s risk. Lenders often require several months of financial statements for review before lending money. Periodic updates are also necessary to ensure borrowers still have the ability to repay loans.

Useful English words for international business part 2

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Consumer Associations

Consumer Price Index

Consumer Sovereignty

Control Methods

Conversion

Copyrights

Corporate Culture

Cost-Benefit Ratio

Cost Efficiency

Cost Fluctuations

Country Attractiveness

Country Position

Country Similarity

Books of Account

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Books of Prime Entry.

Books of prime entry are the initial accounting records where business transactions are first recorded before they are transferred to the general ledger. They are also known as "journals." The purpose of these books is to provide a chronological record of transactions, which makes it easier to later transfer the information into the general ledger.

Cash Book

‘T’ form cash book contains two sides: the left-hand side means the debit side and the right-hand side means the credit side. The primary book where transactions regarding cash receipts and payments are recorded in chronological order of dates with explanations and balance is drawn at the end of the day or a particular period is called cash book.

Sales Day Book (Sales Journal)

A book in which non-cash sales are recorded with details of a customer, invoice, amount, and date; these details are later posted to each customer's account in the sales ledger.

Purchase Day Book (Purchase Journal)

entry in which all the transactions relating to only credit purchases are recorded. Cash purchases do not find a place in the purchase day book as they are recorded in Cashbook. At the end of every month's purchase, the daybook is totaled.

Sales Returns Day Book

When a customer returns goods it has bought from a business a credit note is issued by the business and details are recorded in the sales return daybook.

Purchase Returns Day Book

When a business returns goods it has purchased on credit it receives a credit note from the supplier and records this in the purchases returns daybook.

Journal

A journal is a record of financial transactions in order by date. Traditionally, a journal has been defined as the book of original entry.

Ledgers

Cash Book

Debtors Ledger

This is known as customers ledger or Sales Ledger

Creditors Ledger

Is known as Suppliers ledger or Purchases Ledger

General Ledger

is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing each type of asset, liability, equity, revenue, and expense.

Cashbook is a book of prime entries as well as a ledger. all the other books are either books of prime entry or ledgers.

Basically, bookkeeping is the process of recording and organizing a business’s financial transactions, and a bookkeeper is a person responsible for that process. Bookkeeping is the primary way business owners can figure out if their business is profitable: keeping an eye on your numbers lets you identify financial challenges early on and address them before they blossom into full-fledged crises. Bookkeeping also helps you identify areas of profit expansion—areas you might not have noticed without clear financial reports you can interpret easily.

In general, a bookkeeper records transactions sends invoices, makes payments, manages accounts, and prepares financial statements. Bookkeeping and accounting are similar, but bookkeeping lays the basis for the accounting process accounting focuses more on analyzing the data that bookkeeping merely collects.

Other books of prime entry may include the payroll journal. The choice of books of prime entry used by a business depends on the size and nature of its operations.

Useful English words for international business part 1

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Alternative Raw-materials.
Asia Pacific Economic
Active Strategy
Ascribed Characteristics
CooperationFinancial Crisis
Balance Of Payments
Bid
Bilateral Trade Agreements
Brand Names
Business Opportunities
Business Process Strategies
Buying Rate
Citizens
Collaborative Strategies
Commodity Markets
Communication
Competitive Environment
Competitiveness
Conditions
Civil Disorders
Civil Law
Collective Bargaining
Collectivism
Commodity Markets
Common Currency
Common History
Common-Law
Common Markets
Communication Strategies
Communism
Communitarian Role
Company Strength
Comparative Advantage Theory
Compensation
Competitive Ability
Competitive Advantage Theory
Competitive Advantage
Competitive Capabilities
Competitive Differences
Competitive Risk
Competitive Strategies
Competitive Superiority
Conflicting Objectives
Consumer Associations
Consumer Price Index
Consumer Sovereignty
Control Methods
Conversion
Copyrights
Corporate Culture
Cost-Benefit Ratio
Cost Efficiency
Costs Fluctuations
Counseling
Countervailing
Country Attractiveness
Country Position
Country Similarity Theory
Country-Specific Factors
Court System
Criminal law
Cross Borders
Cultural Adaptation
Cultural Awareness

Orchids

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Orchids are one of the most beautiful and fascinating flowers in the world, known for their stunning and intricate blooms. Growing orchids may seem challenging, but with a little knowledge and effort, anyone can cultivate these stunning plants.

To grow orchids, it is important to choose the right location. Orchids need a bright but indirect light, as direct sunlight can harm their delicate leaves and flowers. They also prefer a warm and humid environment, so it's best to keep them in a well-ventilated area with a temperature between 60-80°F.

Orchids require good drainage, so choose a pot with drainage holes and use a well-draining potting mix. Watering should be done sparingly, as overwatering can lead to root rot. Instead, water orchids only when the potting mix is almost dry, and be sure to water thoroughly.

Fertilizing is important for healthy orchids. Use a balanced orchid fertilizer, and apply it every two weeks during the growing season. It's also important to repot orchids every two to three years, as they tend to outgrow their pots and need fresh potting mix.

Orchids are incredibly diverse, with thousands of different species and hybrids available. With a little care and patience, anyone can successfully grow orchids and enjoy their stunning beauty.

Accounting

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Accounting is the best profession among unlike most of the other professions. The word of account was derived from the French word. It was traced to ancient civilizations of thousands of years. Luca Pacioli was the father of accounting and bookkeeping in the past years. Accounting to the ancient Mesopotamia, they were closely related to developments in writing, counting and money auditing documents. We could be found in Mesopotamia,
show lists of expenditures and goods received and traded Details, they were produced some of the oldest known records of commerce.

But the view of accounting history that begins with Laca’s Pacioli’s contributions, He was introduced double-entry bookkeeping in 1494. Those were summa de Arithmetica, Geometria, Proportions et proportionality which included 27-page details of calculations and recordings. The Summa de Arithmetica, Pacioli introduced symbols for plus and minus for the first time in a printed book. It had a foundation for double-entry bookkeeping as it is practiced today.

Accounting records could be recognized back more than 7000 years in Mesopotamia. Merchants began relying too on bookkeeping to keep records of multiple transactions, this was a double-entry bookkeeping system was started in the 13^th century. Debit and Credit values were entered for each transaction by the accountant. Merchants got a decision making to grow their business according to the accounting records and constant about business information. The ledger has accounted for assets, liabilities, capital income, and expenses. He also demonstrated year-end closing entries and proposed a trial balance be used to prove a balanced ledger. Accounting is one of the key functions for almost any business. It may be handled accountant or finance manager and Finance controller. Accounting is the recording of financial transactions along with sorting, retrieving, analyzing, summarizing, and presenting data in various reports according to the organizations. Financial information is presenting for general purpose, balance sheet, trial balance and income statement, cash flow statements, etc. External reports are prepared in accordance with accounting principles. Cost accounting and management accounting are invaluable in helping management make informed business decisions. Based on double-entry is a method of expenses and income of revenue in two places on a company balance sheet.