Definition (1) FINANCIAL ANALYSIS

(
Financial analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in
investment and financial decision-making.

Sources of data (2) Purposes of financial analysis How to analyze financial data
(for making decisions)
Primary source (financial data in Different groups of users (7) Methods of analysis
financial statements: balance sheets, need financial analysis for different 2 types of analysis (16)
income statements and cash flow purposes: + Vertical analysis (17)
statement and annual reports) (3) The top management To compare every line item with revenue as
Secondary sources (3): To make any managerial decisions (8) percentages
+ market data (4) data found in the Such as: (9) + Horizontal analysis (18)
financial press and the electronic media + allocation of resources To evaluate the YoY change in each line
such as prices of the company shares/ + improving quality of products item
products, etc. + expanding the business Classification of financial ratios
+ economic data (5) The shareholders(1 + To analyze the liquidity, leverage,
Such as GDP, CPI, consumer spending, etc. They used F.A to decide whether to keep operational efficiency (19)
Provided by government or private sources their shares or to sell them to others in  Liquidity (20)
+ events (6) financial markets or to buy more the Ratios used: quick ratio/ current ratio/ net
Show what are happening currently company’s shares. working capital
Such as acquiring another company/ The creditors(11)  Leverage (21)
developing new products/ etc. Creditors such as banks need F.A to evaluate Ratios used: debt to equity/ debt to capital/
Help to explain the company’s present the credit-worthiness –uy tín tín dụng - of debt to EBIDA/ interest coverage/ fixed
condition and future prospects the company, or to decide how much money charge coverage ratio
they can lend to the company.  Operational efficiency (22)
Others Ratios used: inventory turnover/ account
Including: (12) receivable days/ accounts payable days/
+ tax offices: to determine tax liabilities (13) total asset turnover/ net asset turnover
+ auditors: to review and evaluate the Cash flow statement analysis
financial data (14) Rates of return and profitability
 + functional agencies for the whole industry analysis
management purposes (15)  Profitability

TOPIC QUESTIONS
1. What are different sources of data needed for financial analysis?
2. What is financial analysis? For what purposes do the management of the company need financial analysis?
3. What is financial analysis? For what purposes do the shareholders need financial analysis?
4. What is financial analysis? For what purposes do the creditors need financial analysis?
5. What are different groups of financial ratios for six aspects of operating performance and financial condition?
 Definition of accounting (1) ACCOUNTING
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating the
financial transactions and events

Accounting books Accounting process Methods of Financial Accounting

bookkeeping statements (19) information
(the products of the
accounting process)
Source documents Single entry Balance sheets Financial
bookkeeping (16) 19.1 – things listed? accounting
(2)
19.2. – information? Management
(2.1- definition: Represent Transactions are Double entry 19. 3 – assets accounting
all documents in business recorded in a journal daily bookkeeping (currents + fixed Tax accounting
(8) (Recording)  Definition (17)is the assets)
which contains financial
only scientific system Income
records and act as evidence of accounting. every statements
of the transactions which transaction has two- Cash flow
have taken place. Periodically, data are fold aspects – debit and statements
2.2 – examples) transferred in a ledger (9) credit and both the
(Classifying) aspects are to be
Books of original recorded in the books
(Journals) (3) of accounts
Act as preliminary check  Advantages (18)
3.1 – definitionThese are on accounts before
books which are used in producing final accounts 1.By the use of this system the
(10) accuracy of the accounting
recording the
work can be established,
transactions for the first through the device of the trial
(Summarizing)
time
 3.2 - examples At the end of the fiscal balance.
year, financial statements 2. The profit earned or loss
Purchase day book: record
(final accounts) are suffered during a period can
credit purchases of a firm prepared (11)
be ascertained together with
/ Cash book: record all the details.
cash and book receipt and (Interpreting) 3. The financial position of the
Balance sheets (13)show firm or the institution
payments
financial position on a concerned can be ascertained
/ Sales day book: record the particular date, usually the
last day of financial year. it at the end of each period,
money company receive
list asset, liability, owner’s through preparation of the
from the goods it sell each equity balance sheet.
Income statements (14)is a 4.The system permits accounts
day
report shows how much to be kept in as much details
/ Purchase return day book: revenue a company earn
as necessary and, therefore
over specific time period
record return of goods affords significant information
and costs and expenses
purchased to supplier associated with earning that for the purposes of control etc.
revenue 5. Result of one year may be
3. 3 – purposeThe books are
Cash flow statements (15) compared with those of
maintained for show the flow of cash in
previous years and reasons for
and cash out of business.
memorandum purpose only
The inflow of cash: tarding the change may be
and will not form part of the profits, sales of assets,.. ascertained.
cash out purchases of fixed
double entry system
assets, repayment for loans,
Ledgers Accounts(5) …
These form part of double
entry system and used to
record the transactions for
the period: asset, liability,
equity
Trial balance (6) Contains
the totals from various
ledger accounts and act as a
preliminary check on
accounts before producing
final accounts.
(7)Financial Statements are
produced to show the
financial performance and
financial position of a
business entity.

Accounting books:
What do accounting books include? = What are considered accounting books?
3.1 – definition of journals
3.2 – examples
3.3 – purposes of keeping these books
8. Transactions are recorded in a journal daily
8.1. What do accountants have to do daily? – They have to record all economic activities in a journal.
8.2. Which accounting book are daily transactions recorded?
ACCOUNTING INFORMATION
https://courses.lumenlearning.com/boundless-business/chapter/accounting-information/
https://accounting-simplified.com/financial/introduction/types-of-accounting/
The financial accounting information must be correct, complete, and logical and compliable (compliant)
19. What are some common financial statements?
19.1. What items are listed in a balance sheet? It lists assets, liabilities and shareholders’ equity.
19.2 What information does a balance sheet provide/ show/ indicate/ reflect?
A balance sheet reflects the financial situation of a company at a specified time (on December 31 of the fiscal year).
19.3 What are assets classified into? / What are 2 main types of assets?
19.4. What do current assets include? / What items are included in current assets?

TOPIC QUESTIONS:
1. What are responsibilities of accountants, in general?
2. What are advantages of double-entry bookkeeping?
3. What are differences between financial accounting and management accounting information?
4. What are differences between financial accounting and tax accounting information?
5. What are 3 common financial statements? What information do they provide?

6.
 Definition of taxation (1) TAXATION

Types of taxes Functions of taxation Tax avoidance Tax evasion

Based on what imposed Primary function: to raise money Definition (19)Reducing the amount Definition (28)Making false or no
taxes: for the government spending (14) of tax you pay to a legal minimum declarations to tax authorities
+ corporate income tax (2) Different types of taxes have Tax avoidance by individuals
Tax evasion by individuals(29):
is a tax levied on the profit different functions: + Employees(20)
of corporation + Functions of income taxes (15) some employers give highly paid freelancers and self employed
+ personal income tax (3) - Redistribution of income employees lots of perks instead of whose income is more difficult to
the tax paid by people on - Encouraging capital taxable money, such as free health control. Moreover, undeclared
the money they earn investment insurance,subsidized launches
part time jobs with small or
+ customs duty(4) + Functions of excise tax (16) Known as loopholes in the tax law
a tax paid on goods that - To restrict the consumption (21) medium sized family firms, on
are imported of some special G &S + Investing a part of income on which no one pays any tax
+ excise tax (5) a tax
+ Functions of customs duty (17) pension plans/ insurance policies/ Tax evasion by firms
levied on some specific
- To protect the domestic other investments – (22)
goods such as fuel, + some firms protect their income
production and ensure jobs Known as tax shelters (23)Life
tobacco,… from domestic taxes by opening
for local people insurance policies, pension plans and
+ payroll tax (6) is based
+ Function of payroll tax (18) other investments by which offshore accounts in tax havens
on employee’s pay or paid
- To ensure social security individuals can postpone the payment + adjusting the numbers of
by employers taken from
and medicare of tax equipments, supplies, raw
employee’earn
+ doing charity (24)
+ inheritance tax (capital materials per unit product and
Tax deductibles (25)
transfer tax) (7)A tax allocated costs is way for
Tax avoidance by companies
levied on gifts and businesses circumvent tax laws as
Reducing the tax bills to a legal
inheritances over a certain minimum (26) well as raise prices
value + , businesses can bring forward
+ capital gain tax (8):A tax capital expenditure so that at the end
liable to profits made from of the year all the profits have been
the sale of assets used u
+ VAT (9)A tax collected + applying LIFO methods to define
at each stage of COGS
production, excluding the
already-taxed costs from
previous stages
Based on tax rates
+ progressive taxes (10)G.
A tax that is levied at a
higher rate on higher
incomes
+ Regressive taxes (11)a
tax in which poor people
pay a higher percentage of
their income than rich
people.

Based on paying tax

manner
+ direct taxes (12)
+ indirect taxes (13).
Property taxes, sales taxes,
customs duties on imports,
and excise duties on
tobacco, alcoholic drinks,
petrol, etc

TOPIC QUESTIONS:
1. What are different functions of taxation?
2. What is tax avoidance? How do individuals avoid paying taxes?
3. What is tax avoidance? How do firms avoid paying taxes?
4. What is tax evasion? How do individuals evade taxes?
 INTERNATIONAL BUSINESS

Advantages & Theories of absolute Trade barriers Measurements of international trade

Disadvantages advantage & of
comparative advantage
Advantages to Theory of absolute Trade barriers (7) Balance of payments: (13) measures
exporting countries advantage (5) - tariffs: (8) taxes on imports inflows and outflows of a country
(1) + of Adam Smith - quotas: (9) quantity + capital & financial account (15)
- money accrues to exporting + produce what is of the restrictions the amount of money in investments and loans that
countries greatest advantage - subsidy: (10) a sum of comes into and leaves a country:
- increased production + there is international money provided by a + current account (16)a bank account that you can
- more employment specialization government or public fund to take money from at any time and that
- increased market share for a person or organization for usually earns little or no interest
exporting companies Theory of a specific purpose + balance of trade (17)the difference between
Gs encourage exports by: comparative - embargo: (11) an order by the money that
(2) advantage (6) a government or a country receives from exports and
- Providing marketing + of David Ricardo international body the money it spends on imports:
information + produce & export what prohibiting trade with a
- Establishing trade missions can be produced more country
- Subsidizing exports efficiently Justifications (12)
- Providing tax incentives + mutually beneficial - to protect domestic
Advantages to trade arises when one employment
importing countries country has a - to protect relatively young
(3) comparative advantage domestic industries
- revenue by imposing tariffs - to protect firms and
- more choice of goods industries that produce goods
- lower prices due to more and services vital to the
competition social security and national
Disadvantages to defense
importing countries - to prevent the country from
(4) depending on imports
- declined domestic - to allow greater reliance on
production domestic production.
- more competition from
foreign producers
OUTLINE OF UNIT 10 INTERNATIONAL BUSINESS (WORLD TRADE)
I> Benefits of international business (world trade) for trading nations
1.1. For the exporting nations
+ expand the markets and increase incomes for exporting companies (Lấy ví dụ cho công ty cụ thể - bao nhiêu % doanh thu từ bán xuất
khẩu)
+ create more jobs in exporting nations (Có bao nhiêu công ty xuất khẩu, tạo ra bao nhiêu việc làm)
+ increase prosperity of exporting nations (Lấy ví dụ cho từng nước cụ thể: hoạt động xuất khẩu đóng góp bao nhiêu % / GDP)
1.2. For the importing nations
+ Governments can raise revenue by imposing tariffs on imports. (Lấy ví dụ cho thuế nhập khẩu đánh vào hàng nhập khẩu của Việt
Nam, thu được bao nhiêu tiền/ chiếm tỷ trọng bao nhiêu % trên tổng thu từ thuế - của năm nào cụ thể)
+ Customers of importing nations can enjoy more choice of goods to purchase at more reasonable prices. (Cho ví dụ cụ thể về loại
hàng hóa nào đó – mobile phones, laptop (needs of life is easier to fulfill)
+ benefits for importing companies
+ importing can help importing nations to save money if they don’t have comparative advantage in producing a particular type of good.
For trading nations in general
+ create good relations bet different countries

https://www.uschamber.com/international/trade-agreements/the-benefits-of-international-trade
http://manajemen.uma.ac.id/2021/04/understanding-and-benefits-of-international-trade/

Paragraph writing
Topic sentence:
International business has brought a lot of benefits for both trading nations from both exporting and importing.
II> Disadvantages as well as challenges of international business to the importing nations
- Dependence of imports
- Home industries have to face more competition
-
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/6-disadvantages-of-international-trade-and-tips-that-may-help-
solve-them/

III> Theories of absolute advantage & of comparative advantage

3.1 Theory of absolute advantage (whose? What is the theory about?)
3.1 Theory of comparative advantage (whose? What is the theory about?)
https://www.investopedia.com/ask/answers/033115/what-difference-between-comparative-advantage-and-absolute-advantage.asp
https://opentextbc.ca/principlesofeconomics/chapter/33-1-absolute-and-comparative-advantage/
(Yêu cầu: giải thích khái niệm, phân biệt sự khác nhau, lấy ví dụ cụ thể về lợi thế tuyệt đối hay lợi thế tương đối của một số nước cụ thể)

IV> What are particular comparative advantages of different countries?

4.1. natural resources
4.2 human resources
4.3 technology
(nêu cụ thể nước nào có những lợi thế (phân tích theo từng loại lợi thê, những lợi thế ấy mang lại những thành quả gì?)

V> Trade barriers (Rào cản thương mại) & their justifications
(Justifications – reasons why it is necessary to impose the trade barriers)
5.1 tariffs – thuế hải quan (customs duty)
5.2 quotas – hạn ngạnh
5.3 subsidy – trợ giá
5.4 embargo – cấm vận
(Nêu khái niệm, mục đích của việc sử dụng từng loại rào cản, phân tích cụ thể các rào cản được áp dụng thế nào tại một số nước cụ thể)
VI> Measurements of international trade
- Balance of trade
- Current account balance – cán cân thanh toán vãng lại
- Capital account balance
- Balance of payments
(Nêu khái niệm, mỗi cán cân đo lường giá trị gì?, lấy ví dụ cụ thể cho từng loại cán cân của một số nước cụ thể, thặng dư hay thâm hụt.)
-
 BANKING & CENTRAL BANKING

THE CENTRAL BANK COMMERCIAL BANKS OTHER FINANCIAL MONEY

INSTITURIONS
Functions of the central Seven main functions of Savings institutions Definition
bank (1) commercial banks: Personal trusts Four functions:
+ To serve as the government’s 1. Accepting deposits Insurance company + medium of exchange is
banker (2) 2. Giving loans anything that widely accepted
+ To act as the banker of the 3. Overdraft in payments for goods and
banking system 4. Discounting of Bills of services and in settlemnet of
+ To regulate the monetary system Exchange debt
for both domestic and international 5. Investment of Funds + measure of value í a unit in
policy goals 6. Agency Functions which prices are quoted and
+ To issue the nation’s currency. 7. Miscellaneous Functions account are kept
Monetary policy + store of value is anything that
 Tools of monetary policy used to make purchases in the
+ reserve requirement future
+ discount rate + standard of deferred payment
+ open market operations money is used to make
regulated repayments for thing
in installment bying or make
settle for debt in the future
Difference between:
 Commodity money
+ Examples of gold coins or
silver coins
+ the purchasing power (the
monetary value is equal the
intrinsic material value
  Token money
+ Examples of metal coins,
paper notes, …
+ the purchasing power exceeds
greatly the intrinsic material
value.

1. What are 4 main functions of the central bank? / a central bank in general?
4 main functions of the central bank are to ….
2. As the government’s bank, what does the central bank do?

TOPIC QUESTIONS:
1. What are different functions of the central bank?
2. What are differences between demand deposits and time deposits?
3. How does the Central bank function as the government’s banker?
4. How does the Central bank function as the banker in the banking systmen?
5. What are three main tools of monetary policy?
6. What should the Central bank do to increase the money supply? For what purposes?
7. What should the Central bank do to reduce the money supply? For what purposes?
8. What are different functions of commercial banks?
9. What are 4 functions of money?
10. What is the most important function of money? Why?
11. What are differences between commodity money and token?