Finance and financial system

The requirements include:

         excellent English

         degree in accounting

knowledge of the local accounting system

proper computer skills

ability to work independently

Ex 6. Problem Solving.

Answer the questions after studying. 

The two parts of accounting system are outlined in Exhibit 1-1.

1.     Briefly distinguish financial accounting from managerial accounting

2.     Define accounting

3.     The accounting process generates financial reports for both internal and external users. Identify some of the groups of users.

4.     Briefly distinguish investors from creditors.


Ex 7. Read the passage and pay special attention to the meanings of                    the italicized words and comment on each separately.

         Business people need financial information to make rational economic decisions. Investors and creditors need financial information before they provide cash to a business a primary source of financial information is the organization’s financial statements. Accounting is a system that collects and processes financial information to decision makers.

The four basic financial statements are the balance sheet, the income state­ment, the statement of cash flows, and the statement of retained earnings.

The balance sheet is a statement of financial position that reports dollar amounts for the assets, liabilities, and stockholders' equity at a specific point in time.

The income statement is a statement of operations that reports revenues, ex­penses, and net income for a stated period of time.

The statement of cash flows reports inflows and outflows of cash for a specific period of time.

The statement of retained earnings explains changes to the retained earnings balance that occurred during the reporting period.

The financial statements and the parties to the accounting communication process were illustrated in the context of the purchase of a disk drive company