Английский язык: Сборник текстов и упражнений. Бодргина Л.И - 76 стр.

     STOCK DIVIDEND = SCRIP DIVIDEND
     STOCK DIVIDEND a dividend paid not in cash, but in stock so that each
stockholder obtains a greater absolute number of shares but the same relative
number of shares.




                                 UNIT 20
                          FINANCIAL ACCOUNTING

      BALANCE SHEET
      The balance sheet is a statement of the financial status of the firm as recorded
by accountant. It gives a picture of the financial affairs of a firm at a particular
moment in time. It tells little of how the firm arrived at this situation, but it does
not tell where the firm is as of the date of the statement within the limitations of
the accounting records.
      STATEMENT OF FINANCIAL POSITION = POSITION STATEMENT =
STATEMENT OF CONDITION
      The financial statement referred to as the balance sheet is also known as a
statement of financial position or position statement. The terms refer to the same
report and are frequently used interchangeably. The use on the term position
statement to describe the statement places a burden on the accountant which the
term balance sheet does not. The title balance sheet merely implies that the state-
ment reports the current status or balance of each item in the accounting records.
The term position statement implies that the accountant is presenting a representa-
tion of the economic position on the company.
      ASSETS, EQUITIES, LIABILITIES
      The resources owned by a company are called assets, and the interests, of the
various claimants in the assets are called equities. The total assets must equal the
total equities. The equity section of the position statement is sometimes labeled
Liabilities and Owners’ Equities. This is also correct; it is somewhat longer than
the term Equities, but it is also more descriptive. The right-hand side of the posi-
tion statement consists of two basic types of claims, the claims (or rights) of the
owners and the claims of the creditors. The term equity or equities is commonly
used by business managers to refer to the claims of only the stockholders rather
than of stockholders plus creditors. This double usage of a term makes the com-
munication problem between accountants and nonaccountants more complex. As-
sets are the resources owned by a business entity, the value of which can be ob-
jectively determined. Included are any cost factors that have been incurred which
can reasonably be expected to benefit future period.
      REVENUE, INCOME
      Frequently there is confusion concerning the terms revenue and income
Revenue is a gross concept and is measured by the assets received (or reduction in
                                         76