- •Пензенский государственный университет economics
- •Пенза 2005
- •Glossary
- •Introduction
- •Exercises
- •Text 2 Entrepreneurs
- •Exercises
- •Text 3 The Elements of Risks
- •Exercises
- •Discussion
- •Unit II. Small-scale business Glossary
- •1. Translate the following derivatives paying attention to the suffixes:
- •Text 1 The Sole Proprietorship
- •Exercises
- •Text 2 Limitations to the Size of Proprietorship (1)
- •Exercises
- •Text 3 Limitations to the Size of Proprietorship (2)
- •Exercises
- •Text 4 The Partnership
- •Exercises
- •Discussion
- •Unit III. Large-Scale Business Glossary
- •1. Choose several principles to arrange the words into groups.Translate the words:
- •Text 1 The Corporation
- •Exercises
- •3. Give derivatives of the following words and translate them:
- •Text 2. Organization of the Corporation
- •Exercises
- •3. Give derivatives of the following words and translate them:
- •Text 3. Organization of the Corporation II
- •Exercises
- •Unit IV. Securities and the Organization of the Corporation Glossary
- •Text 1. Organization of the Corporation III
- •Exercises
- •Text 2. Bonds
- •Exercises
- •Text 3. Leverage
- •Discussion
- •Unit V. Financial Aspects of Corporation Glossary
- •Text 1. Corporate Finance
- •Exercises
- •Text 2. The Securities and Exchange Commission
- •Exercises
- •Text 3. Concentration of Control
- •Exercises
- •Text 4. Management Control
- •Exercises
- •Discussion
- •Unit VI. Evaluating Performance of the Firm Glossary
- •Text 1 The Balance Sheet
- •Exercises
- •Text 2 The Income Statement
- •Exercises
- •Discussion
- •Unit VII. The Importance of the Corporation Glossary
- •Text 1 The Number of Corporations
- •The Size of Corporations
- •Exercises
- •Text 2 Size of Firm Vs. Size of Plant
- •Exercises
- •Text 3 Specialized Management
- •Exercises
- •Text 4 Other Reasons for Larger Firms
- •Exercises
- •Discussion
- •Review tasks
- •Literature
- •Contents
Text 2 The Income Statement
As the balance sheet summarizes the financial position of the firm on a given date, so the income statement summarizes the firm’s productive operations during a given period of time, usually a fiscal year.
The income statement is a systematic summary of revenues and costs, organized to enable owners to see how the firm has operated.
Although accountants differ in the exact arrangement of items and in the amount of detail given, the essence of the income statement is to show the year’s total receipts, total costs, and profit. The statement also shows the allocation of profit between dividends and retained earnings, and the distribution of the dividends among the different classes of shareholders.
In fact, the income statement can be reorganized to show the value added by the firm’s operations and the distribution of this value among the different participants in production.
Exercises
1. Find the English equivalents in the text:
декларация о доходах, производственные операции, финансовый год, доходы и расходы, сводка, бухгалтер, статья (дохода), общие поступления, общий расход, прибыль, распределение прибыли, нераспределенная прибыль, акционеры, добавленная стоимость.
2. Find the synonyms of the following words in the text:
receipts, quantity, to preserve, allocation, owner, value, action, member, total, group.
3. Give derivatives of the following words and translate them:
to summarize, to state, to produce, to operate, to arrange, to earn, to distribute, to participate.
4. Give possible translations of the words:
operation, summary, cost, arrangement, item, profit, value, production, receipt.
5. Write definitions for the following notions:
financial position of the firm, income statement, production operation, fiscal year, summary of revenues and costs, accountant, item, the year’s total receipts, allocation of profit, distribution of dividends, participant in production.
7. Answer the questions:
1. What does the balance sheet summarize?
2. What does the income statement summarize?
3. What is the income statement?
4. What is the essence of the income statement?
5. What else does the income statement show?
5. In what way can the income statement be reorganized?
Discussion
Memorize the word-combination to use them in the discussion:
to keep records, to convert smth. into money, to list according to permanence, to subtract liabilities, to summarize financial position, to pay bills, to issue new shares, to distribute dividends.
Have you taken accounting classes? Did you enjoy them?
Do you enjoy such type of work?
3. Did you ever have to keep detailed records of anything? Did you enjoy doing so?
4. What end users need the information compiled by accounting system?
5. What are the functions of the financial statements of a firm?
6. If' you were a would-be investor, how could you use the balance sheet and income statement of the firm before investing in it?