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Part 2 The Balance Sheet

Words to remember

balance sheet (n) – a document showing a company’s financial position and wealth at a particular time, often the last day of its financial year

to own (v) – to possess; to have

to owe (v) – to have to pay, for something already done or given

assets (n) – money or property of a person or a company that have value or the power to earn money

property (n) – all things that someone owns accounts receivable (n) – money to be received accounts payable (n) – money to be paid

liability (n) – an amount of money owed by a business to a supplier, lender etc.; debt share (n) – 1.the part belonging to, owned by

2.one of the parts into which ownership of a company is divided; equity equity (n) – 1. a share

2.the capital that a company has from shares rather than from loans (займы) stockholder (n) – a person or organization that owns shares in a particular company;

shareholder

equation (n) – a statement that two quantities are equal

item (n) – 1. a single thing, especially something that is for sale

2.a piece of information written in a set of accounts

to expand (v) – to increase in size, volume, number specific (adj.) – particular, fixed

to list (v) – to include in a list

to detail (v) – to give a full list of

current assets (n) – money that a business has or is owed, or something that could easily be turned into money, for example raw materials and goods that have been produced but not sold

fixed assets (n) – something that a business owns and that it uses in order to produce goods, for example a piece of land, a building, or a piece of machinery cash (n) – money in the form of notes and coins, rather than cheques, credit cards etc.

inventories (n) – stock; raw materials, supplies and finished goods that a company has at a particular time

make up (v) – (here) to form as a whole

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long-term liabilities (n) – long term liabilities are related to a long time or take a long time to be paid

income tax (n) – an amount of money you must pay to the government according to your income

bond (n) – an official paper promising to pay a sum of money to the person who holds it; the document by which a government or company borrows money from the public with the promise of paying it back with interest at a fixed time

long-term note (n) – a piece of printed paper showing that you are owed money data (n) – information or facts

Tasks to perform

1. Give English equivalents of the words and word partnerships used in the text.

Финансовый отчёт; предоставлять информацию по; финансовое состояние компании; баланс (балансовый отчёт); предоставлять сводку, чем компания владеет и какую сумму она должна; активы (имущество, средства, капитал, фонды); собственность; дебиторская задолженность (счета

(содержать); представлять подробный список пассивов (денежных обязательств, задолженностей); товарно-материальные запасы (материалы,

2. Circle the word which does not belong in each horizontal group.

3. Match the following general headings to the groups of five words that you

4.Company Performance

Complete the passage below using the appropriate words given below.

Companies need to know how they are performing in order to make plans for the future and to analyze and find solutions to the problems that they may be facing. To do this successfully, businesses require information not only about their own activities but also about the (1)…… they operate in.

(2)…… provide a company with key (3)….. about operational efficiency, whereas (4)….. give information about financial performance. This allows companies to know not only how much they are selling or how much (5) ….. they are receiving but also what their (6) …… are or how much they have to pay for the different things that they need to operate their businesses. With this information companies can then calculate their (7) …., i.e. how much money they have made, or their (8) …… , i.e. how much money they have lost during a specific period.

Annual accounts for listed (or officially registered) companies, whose shares are sold on the Stock Exchange, have to be presented to the public in the form of an

(9) ….. which gives detailed financial and other information about companies.

5. Translate the following text into English

Баланс – это двусторонняя таблица, левая сторона которой (актив) отражает всю собственность фирмы, а правая сторона (пассив) отражает все обязательства.

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Активы фирмы включают основной и оборотный (текущий) капитал, а пассивы включают вложенный акционерный капитал, долгосрочные займы и текущие обязательства.

Основной капитал или активы – это земля, здания, оборудование приобретаемые фирмой для длительного пользования, а не для продажи.

Текущие активы – это материально-производственные запасы, дебиторская задолженность и наличные средства. Фирма держит их для текущих нужд, пока идёт процесс приобретения сырья, производство товаров, реализация готовой продукции и пока фирма получает платежи за продажу.

Текущие обязательства или пассивы включают кредиторскую задолженность, налоговые обязательства, банковские кредиты, овердрафты, подлежащие оплате фирмой в течение года.

Основополагающее уравнение баланса объясняет взаимоотношения между активами фирмы, её пассивами и акционерным капиталом.

Обыкновенная акция (ordinary share or equity) – это финансовая ценная бумага, выпускаемая для продажи. Владельцы акций имеют право на часть прибыли компании в виде дивидендов.

Акционерный капитал представляет собой обыкновенные и привилегированные акции (preference or preferential shares), являющиеся постоянным источником финансирования компании на всё время её существования.

Привилегированные акции дают право их владельцу получать дивиденды, даже если компания находится в затруднительном положении и выплаты по обыкновенным акциям приостанавливаются.

Words to remember primary (adj.) – chief; main

consideration (n) – a fact to be considered when making a decision sufficient (adj.) – enough; as much as is needed for a purpose

fund (n) – an amount of money that is obtained and used for a particular purpose property (n) – all the things someone owns

capital (n) – money or property to produce wealth

to operate (v) – 1. to work; to function 2. to manage

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ongoing (adj.) – continuing; current expenses (n) – costs; expenditures to purchase (v) – to buy

to obtain (v) – to become the owner of; to get; to gain in large measure = mostly

to determine (v) – (here) to have a controlling influence on; have a direct and important effect on

to acquire (v) – to gain or come to possess; to get

to secure (v) – to get something you need after a lot of efforts to utilize (v) – to use something effectively

to support (v) – to provide enough money for something to begin or continue to extend (v) – (here) to make credit available to someone

extension (n) – the act of giving credit credit (n) – loan

to loan money, to lend money - to give money loan (n) – a form of debt;

to borrow (v) – to receive money from a person or organization which you must pay back later

borrower (n) – someone who has borrowed money, especially from a bank essential (adj.) – most important; completely necessary

short term (adj.) – continuing for only a short time, or concerned only with the period of time that is not very far into the future, e.g. in the short term = in the immediate future

long term (adj.) – long term plans, credit etc. are related to a long period of time into the future

charge account (n) – an account you have with a shop or a supplier that allows you to pay for goods at the end of a particular period of time in the future rather than when you buy them

to seek (v) – (here) to ask for something

to last (v) – to remain in good condition for a long time similarly (adv.) – in a similar way; in the same way generally (adv.) – usually

to repay (v) – to pay back money that has been borrowed; to return to expect (v) – to think likely to happen; to anticipate

arrangement (n) – something that has been settled or agreed on; agreement overall (adj.) – including everything; whole