The final two items on the asset side of the balance sheet show lending in foreign currencies and miscellaneous bank assets. Total assets of the London clearing banks were ?200,1 billion. We now shall examine how the equivalent liabilities were made up.
Deposits are chiefly of two kinds: sight deposits and time deposits. Whereas sight deposits can be withdrawn on sight whenever the depositor wishes, a minimum period of notification must be given before time deposits can be withdrawn. Sight deposits are the bank accounts against, which we write cheques, thereby running down our deposits without giving the bank any prior warning. Whereas most banks do not pay interest on sight deposits or cheque (checking) accounts, they can afford to pay interest on time deposits. Since they have notification of any withdrawals, they have plenty of time to sell off some of their high- interest investments or call in some of their high-interest loans in order to have the money to pay out deposits.
Certificates of deposit (CDs) are an extreme form of time deposit where the bank borrows from the public for a specified period of time and knows exactly when the loan must be repaid. The final liability items in Таbl. 7 show deposits in foreign currencies, miscellaneous liabilities, such as cheques, in the process of clearing.
a financial intermediary - финансовый посредник
to bring together - соединять, сводить вместе
insurance companies - страховые компании
pension lands - пенсионные фонды
the money stock - денежная масса, деньги в обращении
to issue deposits - открывать вклады
the National Girobank - англ. Национальный жиробанк
trustee saving banks - доверительные сберегательные банки
London clearing banks - лондонские клиринговые банки (банки - члены расчетной палаты)
a central clearing house - центральная расчетная палата
inter-bank accounts - межбанковские счета
Barclays - Барклайз банк (Великобритания)
Lloyds - Ллойдз банк (Великобритания)
to credit - кредитовать
to debit - дебетовать
cheque recipient - получатель чека
cash assets - денежные активы
the Bank of England - Банк Англии, Английский банк
interest-earning (syn. interest-bearing) assets - активы, приносящие про-центный доход
bills and market loans - векселя и рыночные займы
short-term lending - краткосрочное кредитование
liquid (ant. illiquid) assets - ликвидные активы
liquidity - ликвидность
advances - ссуда в вида аванса
a sticky period - трудный период
securities - ценные бумаги
interest-bearing long-term financial assets - долгосрочные финансовые активы, приносящие процентный доход
government bonds - государственные облигации
industrial shares - промышленные акции
the stock exchange - фондовая биржа
niscellaneous bank assets - прочее имущество банка
sight deposit - депозит до востребования; бессрочный вклад
time deposit - срочный вклад
to withdraw - отзывать (вклад)
to run down a deposit - уменьшать вклад
cheque (checking) accounts - текущий (чековый) счет
to sell off - распродавать
cad in high-interest loans - требовать возврата займов (требовать уплаты процентов)
certificates of deposit - депозитные сертификаты
miscellaneous liabilities ' прочие (другие) пассивы
1. GENERAL DEFINITION OF ACCOUNTING
Today, it is impossible to manage a business operation without accurate and timely accounting information. Managers and employees, lenders, suppliers, stockholders, and government agencies all rely on the information contained in two financial statements. These two reports - the balance sheet and the income statement - are summaries of a firm's activities during a specific time period. They represent the results of perhaps tens of thousands of transactions that have occurred during the accounting period.
Accounting is the process of systematically collecting, analyzing, and reporting financial information. The basic product that an accounting firm sells is information needed for the clients.
Many people confuse accounting with bookkeeping. Bookkeeping is a necessary part of accounting. Bookkeepers are responsible for recording (or keeping) the financial data that the accounting system processes.
The primary users of accounting information are managers. The firm's accounting system provides the information dealing with revenues, costs, accounts receivables, amounts borrowed and owed, profits, return on investment, and the like. This information can be compiled for the entire firm; for each product; for . each sales territory, store, or individual salesperson; for each division or department; and generally in any way that will help those who manage the organization. Accounting information helps managers plan and set goals, organize, motivate, and control. Lenders and suppliers need this accounting information to evaluate credit risks. Stockholders and potential investors need the information to evaluate soundness of investments, and government agencies need it to confirm tax liabilities, confirm payroll deductions, and approve new issues of stocks and bonds. The firm's accounting system must be able to provide all this information, in the required form.
2. THE BASIS FOR THE ACCOUNTING PROCESS
The basis for the accounting process is the accounting equation. It shows the relationship among the firm's assets, liabilities, and owner's equity.
Assets are the items of value that a firm owns -'cash, inventories, land, equipment, buildings, patents, and the like.
Liabilities are the firm's debts and obligations - what it owes to others.
Owner's equity is the difference between a firm's assets and its liabilities - what would be left over for the firm's owners if its assets were used to pay off its liabilities.
The relationship among these three terms is the following:
Owners' equity = assets - liabilities
(The owners' equity is equal to the assets minus the liabilities)
For a sole proprietorship or partnership, the owners' equity is shown as the difference between assets and liabilities. In a