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Extra resources for CIMA Learning System Fundamentals of Financial Accounting: New syllabus (Cima Learning Systems Certificate Level)
Other intangible assets might include patents and trademarks. You will learn more about intangible assets in Chapter 10. Receivables: A person owing money to an entity. These are assets to the business because they are eventually converted into cash, which is a resource that can be used by the business. Liability: An entity’s obligations to transfer economic beneﬁts as a result of past transactions or events. Thus a liability can be described as an amount owed by a business or organisation to an individual or other business organisation.
M. STUDY MATERIAL C2 (b) Charities. These exist to provide services to particular groups, for example people with special needs and to protect the environment. Although they are regarded as non-proﬁt-making, they too often carry out trading activities, such as running shops. (c) Local and central government. Government departments are ﬁnanced by members of society (including limited companies). Their ﬁnances are used to provide the infrastructure in which we live, and to redistribute wealth to other members of society.
G. goodwill, which represents the value of a business as a whole compared with the sum of the values of its individual assets and liabilities. ). Other intangible assets might include patents and trademarks. You will learn more about intangible assets in Chapter 10. Receivables: A person owing money to an entity. These are assets to the business because they are eventually converted into cash, which is a resource that can be used by the business. Liability: An entity’s obligations to transfer economic beneﬁts as a result of past transactions or events.