2012 Economics of enterprise KROK University Spring 2012 Instructor Tetiana

test
Prepare presentations which are left (it was due to 23.01)
Make

sure to have written homework for the first seminar (I’ll check it)
Revise the second lecture (1-4 questions)
Types of capital by Marx (definitions and examples)
Production assets (funds) (definitions and structure)

assets: Classification, Structure, and Valuation
Ageing, Depreciation and Improvement of

Fixed Assets
Efficiency of Fixed Assets

Lecture 2
Capital and Fixed assets (funds)

bring economic benefits in the future as the result of

their utilization
indicated in the balance sheet
divided by the purpose of use
received as the result of their acquisition or production

in progress
long-term financial investments
long-term accounts receivable
future revenue derived from taxes
other

non-negotiable assets

are to be sold or used during next 12 months

Supplies (запаси)
Manufacturing stocks
Semi-finished goods
Animals
Non-finished production
Finished goods
Products

goods and services; budget; prepayment; calculated revenues; internal accounts; other)
Current

(short-term) financial investments
Cash and its equivalents
Other circulating assets
Future spending

capable of being employed in the production of more wealth
sum

of money necessary to start and run a business

with the purpose of profit making

a business raises by taking out a loan or through

the issuance of bonds
Equity capital
is defined as the amount of capital provided by the company's owner (s)

losses
Solvency
Financing of risky projects
Independence and power
Distribution of profits

labour/work
production assets (funds)

capital (fixed) assets


inventory
* means of production -

the material, tools, and equipment that are used in the production of goods

(funds) in the form of objects of labor that are

completely used (consumed) in every production cycle, change or completely lose natural form and transfer all the value on final goods

labor that have value and functioning in manufacturing for a

long time in unchanged consumer form.
Their value is transferred on final goods by parts.
They are used for more then 1 year or one production cycle if it is more than 1 year

#7:
Land (not agricultural land)
Capital spending to land improvement
Buildings, installations and

transmitting terminals
Machines and equipment
Vehicles
Instruments, appliances and implements (Household electric, optic, electromechanic appliances and instruments)
Working and productive animals (horses, cows etc. but not animals that are kept for meat)
Perennial plants
Others (Library funds, Furniture, office equipment )


* Transmitting terminals - land improvement, designed to perform special functions in the transmission of energy, materials, signal information, etc. of any origin and type of distance (transmission lines, pipelines, water pipelines, power and gas networks, lines, etc.).

of utilization
Production
Non-production
Form of property
Own
Leasehold

aptitude (suitability )
Can be used
Need major repairs

overall value

Manufacturing (functional, technological)
Active and passive
Age

facto (historical) costs of purchasing (production)
includes the

following costs:
amounts paid to suppliers and contractors for the assets of construction works (excluding indirect taxes);
registration fees, government fees and similar payments made ​​in connection with the purchase rights to the object of fixed assets;
amount of import (customs) duty;
amount of indirect taxes in connection with the acquisition (creation) of fixed assets (if they are not reimbursed by the company);
Insurance
Costs of assembling and tooling
Other costs needed to make the capital assets usable

(production)

Depreciated or balance (book) value – initial value minus depreciation

Salvage

(liquidating) value – value that can be received after sale (or liquidation) of capital assets after the expiration of the term of their effective use minus costs of sale (or liquidation)