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Presentation of 5 pages for the course Engels at Artevelde (90 seconds)
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Bank AccountsChecking It is a bank account where you can withdraw and deposit money for daily
account transactions. It comes with checks and a debit card.
Saving This account is used to save money. This account is not used for day-to-day
account expenses.
Trading It is an investment account that holds securities, cash and other holdings. With
account this account an investor can buy and sell assets.
Functions of a central bank
Bank to the The central bank performs the functions of a banker, agent and adviser to the
government government. It makes and receives payments on behalf of the government.
All commercial banks in a country keep a part of their cash balances as deposits
Keeper of
with the central bank. They draw during busy seasons and pay back during slack
Cash Reserves
seasons.
Controller of This is the most important function of a central bank. The bank controls the
credit deposits of commercial banks.
Financial instruments/ Types of investments/ Responsible investing
Companies sell shares to raise money for start-up or growth. So, the shareholder
Shares is therefore an owner of the company in proportion to the number of shares the
holder holds.
These are investment securities where an investor lends money to a company or
Bonds
government for a set period of time, in exchange for regular interest payments.
Cash It protects the original investment and gives access to the money. For example:
equivalent saving accounts, money market accounts. These different types of investments
investments generally deliver a more stable rate of return.
Insurance
In Belgium it is obligated to take a car insurance. It covers the damage that you
Car cause to persons and goods with the car, but also the costs for medical care and
loss of income.
This insurance is not required in Belgium by law, but it is definitely
Fire recommended. It protects against the financial risks of damage to houses and its
furniture caused by fire, water, storms…
Travel insurance are for a short or long period of time. It is an insurance against
Travel
material and physical damage that may incur during a trip or holiday.
Mergers
A more When two companies merge, there is a larger production. The production
efficient process will therefore cost less.
production
process
Creating Two companies may undertake a merger to increase the wealth of their
shareholder shareholders.
value
Entering new It is easier to enter new markets when two companies merge as a company that
markets just started. Because you merge with a company that is already running well.
Assets
Assets refer to all the possessions of a company. These are the items on the debit
What
side of the balance sheet. These can be divided into fixed and current assets.
Fixed assets are held by the company for more than one year. For examples:
Fixed assets
goodwill, buildings, machines and installations
Currents assets are held by the company for less than one year. For examples:
Current assets
company’s stocks of raw materials, bank accounts or cash.
, Liabilities
Liabilities finance the assets of the company. They are on the credit side of the
What
balance sheet. These can be divided into shareholder’s equity and liabilities.
Shareholder’s Shareholder’s equity is the debt of the company to its owners and
Equity shareholders. It consists of shares, reserves and profit transferred.
Liabilities are divided into two groups, namely the long- and short-term
Liabilities liabilities. Short-term is less than 1 year. For example: supplier’s debts. Long-
term liabilities are more than 1 year. For example: bank loan for a building.
Financial statements/ Financial analysis
These are written records that show the business activities and the financial
What performance of a company. Financial analysis is used to analyse when an entity
is stable, solvent, liquid or profitable enough to do an investment.
A balance sheet is a financial statement that reports a company’s assets,
Balance Sheet liabilities and shareholders’ equity at a specific point in time. So thus, what a
company owns, owes, as well as the amount invested by shareholders.
It reports income through a particular time period. Also known as the profit and
Income
loss statement. It focuses on the company’s revenues and expenses during a
Statement
particular period.
Tax Fraud
It is permitted by law. When people do tax avoidance, they want to pay as little
Tax avoidance
tax as possible
Also known as tax fraud, is not permitted by law. It is intentional breaking of
Tax evasion
legislation to pay less tax. It paints a false picture of reality.
It is a place that offers a low tax rate or even exemption from tax to individuals
Tax havens
and companies that have their assets in an account there. For example: Panama
Shareholders
It is a person or organization that has stocks in a company. A shareholder must
What own a minimum of one share to make them a partial owner. Afterwards when
the company does well, shareholders can receive dividends.
Common They own a company’s common stock, and they have the right to vote on
shareholders matters concerning the company.
Preferred On the other hand, they own a share of the company’s preferred stock but have
shareholders no voting rights.
Financial authorities
The European Central Bank is the central bank of the Economic and Monetary
ECB Union. The bank its main task is to maintain price stability in the euro zone so
that the euro’s purchasing power is sufficiently maintained.
The National Bank of Belgium is the central bank of Belgium, located in
NBB Brussels. Its tasks include the conduct of monetary policy in the euro area, the
holding of reserves and the distribution of banknotes and coins.
Financial Services and Markets Authority is an institution that has supervision
FSMA over the Belgium financial sector. FSMA supervises the financial markets and
listed companies. It strives for fair trade.
Good accountants
A good accountant must be able to work punctually. For example, the VAT
Punctual declaration needs to be submitted before the deadline. An agenda is essential
for a good accountant.
As an accountant, it is important to make the necessary calculations and
Analytical
analyse the figures. For presentations or reports, analytical skills are useful.
An accountant never works alone, so communication is key. It is also important
Communication
to communicate well with clients and explain things clearly.
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