Activity 6: The Balance Sheet

ESSENTIAL FINANCIAL ENGLISH

COACH: ROBERTO RENE BAEZ FUENTES

ALEJANDRO IRAGORRI OLAIZ

725312

JUNE 26, 2021

1. Which lines on the balance sheet do the definitions below it refer to?
(Two have been done as examples.)
1 All the money belonging to the company’s owners = Total Liabilities &
Shareholders’ Equity:
2 assets whose value can only be turned into cash with difficulty (e.g.
reputation, patents, trade mark, etc.) = Intangibles
3 capital that shareholders have contributed to the company above the
nominal par value of the stock = Additional Paid-In Capital
4 expenses such as wages, taxes and interest that have not yet been paid at
the date of the balance sheet = Accrued Expenses
5 money owed by costumers for good or services purchased on credit =
Total Receivables
6 money owed to suppliers for purchases made on credit = Accounts
payables
7 money paid in advance for goods and services = Prepaid expenses
8 profits that have not been distributed to shareholders = Retained
earnings
9 tangible assets such as offices, machines, etc. = Fix assets
10 the difference between the purchase price of acquired companies and
their net tangible assets = Goodwill, Net
11 the total amount of money owed that the company will have to pay out =
Total liabilities

2. Which two figures have to be the same (to balance), by definition?

Balance sheet
3. How much money had the company already paid in advance for goods
and services on the date of the 2008 balance sheet?
1,404.11
4. At the 2008 balance sheet date, which is greater, the amount of capital
the shareholders have paid into the company, or the amount of profit that
has not been spent?
The amount of profit that has not been spent
5. At the 2008 balance sheet date, which total is higher - the money
Google currently owes or the money it is owed?
The money Google currently owes