Студопедия

КАТЕГОРИИ:

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника



Financial Statements




Читайте также:
  1. A. Say whether the following statements are false or true.
  2. B) Comment on the given information and speak about the financial aspect of getting a higher education in the US A.
  3. B. Say whether the following statements are true, false or there is no information on the subject of the text.
  4. Change the statements into negative sentences and questions.
  5. D. Say if the statements are false, right or there is no information on the subject.
  6. E. Read the text again and decide whether these statements are true or false.
  7. Financial Management
  8. Look at the statements below and decide which function each statement describes.
  9. Major categories of financial ratios.

3.5.3 a. Fill in the gaps with the suitable expressions from the box:

A) accruals principle B) balance sheet C) reserves
D) bottom line E) sales revenue F) bank loans
G) gross profit H) share prices I) pre-tax profit

 

Each year a company produces an annual report with three key sets of figures: profit and loss account, ___ (1)____ and cashflow statement. These are three key financial statements in financial reporting. They give the basic information about a company’s financial results. The results a company publishes can affect____(2)___: good results cause prices to rise, if the market believes the company is undervalued. However, poor results often cause a drop in share price, as investors feel the company is overvalued.

The profit and loss (P&L) account (the income statementin theUSA) records the money a company makes or loses during a particular reporting period, using the accruals principle. The ____(3)______ means that events in a particular reporting period, for example sales of goods or purchases of supplies, are recorded in that period, rather that when money is actually received or paid out: this may happen in a later period. Accounts record money received from sales (____(4)_____, referred to as turnover on BrE), minus the labour and cost of materials used to produce them, which is called the cost of goods sold (COGS). The difference between the sales revenue and the cost of sales is ___(5)______ .

Then selling and general expenses – the cost related to making these sales – employees’ salaries, rent for buildings, etc. - are taken away. These other costs and expenses are often grouped together as selling, general and administrative expenses (SG&A). There is also cost of depreciation – this is not an actual sum of money paid out, but is shown in the account to allow for the way that machinery wears out and declines in value over time and will have to be replaced. This leaves a company with its operating profit.

Then we subtract the interest payable on money borrowed in the form of bonds and ___(6)_____. This gives the profit before tax or ____(7)_____. Sometimes there are exceptional items to report, for example the cost of closing a particular operation. A company pays tax on its profit, which in the UK is called corporation tax (corporate income tax in the USA). So, the statement also shows EBITDA (earnings before interest, tax, depreciation and amortization) and EBIT (earnings before interest and tax). After all the expenses and deductions there is the net profit, often called the ___(8)______.



Dividends to shareholders (dividends per share) are usually paid to shareholders from profit after tax, also referred to as earnings. However dividends may be omitted, passed or skipped when business is bad. Not all profit is paid out in dividends. Some is kept to invest in future activities - these are retained earnings, or __(9)_______.

Non-profit organizations such as charities, public universities and museums produce an income and expenditure account. If they have more income than expenditure this is called a surplus rather than a profit.

 

b. Test your knowledge by answering the following questions:

1. What is the name of the accounting report that may show either a net profit or a net loss for an accounting period?



2. If total revenue exceeds total expenses for an accounting period, what is the difference called?

3. What expenses are grouped together as SG&A?

4. What is bigger net profit or pre-tax income?

5. Which is less EBIT or EBITDA and why?

c. Give the English equivalents for the following:

 

· принцип начисления

· выручка от продаж

· себестоимость проданных товаров

· валовая прибыль

· коммерческие, общехозяйственные и административные расходы

· операционная прибыль

· стоимость прекращения конкретной операции

· износ оборудования и амортизация основных фондов

· прибыль до вычета процентов, налогов и амортизационных отчислений


Дата добавления: 2014-11-13; просмотров: 43; Нарушение авторских прав







lektsii.com - Лекции.Ком - 2014-2022 год. (0.017 сек.) Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав
Главная страница Случайная страница Контакты