Английский язык = English. Учебное пособие-1

3.Внешние операции (transaction, foreign states, to conclude)

4.Ссуда (money, to lend, bank)

Exercise 5. Replace the words in italics by synonyms.

Model: I suspect they’d only be interested in the vehicles. I believe they’d only be interested in the vehicles.

1.Our machinery wouldn’t realise much on a cash sale.

2.The borrowings of our company have soared.

3.The bankers won’t lend any more money.

4.The vehicles are mainly customised trucks.

5. They’re asking for a parent company guarantee.

6.They’re asking for a parent company guarantee.

7.The Accounting Standard has required them to be reported in the UK statutory accounts.

Exercise 6. Make direct questions according to the model.

Model: He asked her for a quotation CIF.

Could you give me a quotation CIF?

1.He asked what the latest problem Primrose Group had.

2.She asked why the bankers would not lend them money.

3.He asked her if the borrowings of Primrose Group had soared.

4.She asked why the bankers were interested in the vehicles.

5.He asked what the policy of the Treasury Department was.

Exercise 7. Complete these sentences using the dialogue.

1.At present the group policy is…

2.They want…

3.The Group Directors are…

4.We rent…

5.We are having…

6.I really need to…

7.They prefer…

Exercise 8. Fill in the missing remarks.

1.A. Do you think they would accept a Letter of Comfort? B …

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2.A. We are having a difficult time this year and our borrowings have soared.

B …

3.A. What collateral have you got? B …

Exercise 9. Make up sentences and translate them into Russian.

Exercise 10. Respond to the situations using either … or.

Situation: The company is not doing well. They need the loans but the bankers want security.

Response: They ask for either collateral or a parent company guarantee.

The bankers have not accepted a Letter of Comfort from Primrose Group.

They rent the factory and produce only machinery and vehicles. I suspect they’d only be interested in the vehicles.

Exercise 11. Act out the following situation.

Коллега сообщает вам, что у компании проблемы c получением кредита. Спросите у него, почему банк не выдает кредит. Он говорит, что не знает всех подробностей, но слышал, что банку нужны гарантийные обязательства. Вы делаете вывод, что это будет сделать трудно, так как компания специализируется на выпуске спецоборудования, которое в большинстве случаев реализуется по бартеру.

Exercise 12. Say what problems the Financial Controller of Primrose and the Manager of the Treasury Department have discussed.

UNIT 4

THE ELEMENTS OF FINANCIAL

STATEMENTS (PART II)

1.Equity. Expenses.

2.Gains and Losses.

Grammar: Functions of the ending “s”. Noun as an Attribute.

PHONETIC AND LEXICAL EXERCISES

Exercise 1. Read and translate the following words.

Independently, consequently, partly, badly, firstly, freely, attentively, carefully.

Exercise 2. Form adverbs with the help of the suffix -ly. Translate them into Russian.

Quick, strong, week, silent, rapid, wide, kind, happy, extreme, equal.

Exercise 3. Read the words of the active vocabulary.

1)absorption costing – калькуляция (себестоимости) c полным распределением затрат

2)amount – количество, сумма

3)decrease – уменьшение

4)delivery – доставка

5)direct costing – калькуляция (себестоимости) по переменным издержкам

6)distribution – распределение

7)earnings – поступления

8)equipment – оборудование

9)incur – принимать на себя (напр. расходы)

10)increase – увеличение

11)peripheral transactions – второстепенные сделки

12)primary operating activity – основная хозяйственная деятельность

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13)property – собственность

14)provide – обеспечивать

15)sale – продажа

16)value – стоимость

Exercise 4. Arrange the words in pairs of antonyms.

Increase, losses, gains, inflow, decrease, outflow.

Exercise 5. Match the equivalents from two columns.

Exercise 6. Choose the correct words from those given in brackets.

Translate the sentences.

1. Expenses are the using of assets during a period as a result of the (delivery / costing) of goods.

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2.Gains are (increases / losses) in equity.

3.Losses are (decreases / assets) in equity.

4.Losses arise from transactions that do not result in (distribution / activity) to owners.

5.Revenues and expenses refer to (total / gross) inflows and outflows.

6.Sales revenue represents a gross inflow of (changes / resources) resulting from its sales activity.

7.To determine profit from sales, it is necessary to subtract (price / cost) of goods sold from sales revenue.

8.A gain on a sale of a company’s (property / operating activities) is the difference between the book value of the property that is sold and the cash.

Exercise 7. Translate the following word combinations into Russian using a dictionary. Remember them.

The residual interest in the assets; the using of assets; the incurring of liabilities; the delivery of goods; the production of goods; the rendering of services.

Exercise 8. Use the following key terms in sentences of your own.

1)capital transactions – основные сделки

2)equity transactions – сделки по акциям

3)gross inflow – валовой приток

4)gross outflow – валовой отток

5)investment – инвестиция

6)net assets – нетто-активы (стоимость капитала по рыночной цене)

7)net inflows – нетто-притоки

8)net outflows – нетто-убыль

9)net amount – сумма-нетто

10)owners’ equity – акционерный капитал, собственный капитал

11)stockholders’ equity – собственный (акционерный) ка-

питал

12)the book value – нетто-капитал, остаточная стоимость основного капитала, балансовая стоимость активов

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Exercise 9. Give the English equivalents of the following words.

Поставка товара, стоимость, инвестиция, балансовая стоимость активов, наличные деньги, использование активов, валовой приток, акционерный капитал, сделки по акциям, сумма-нетто.

GRAMMAR EXERCISES

Exercise 1. Analyse the functions of the ending -s in the words in bold.

1.Investments by owners and distributions to owners are called equity transactions.

2.Equity usually is described as stockholders’ equity or owners’ equity.

3.Sales revenue represents a gross inflow of resources.

Exercise 2. Form the plural of the following nouns.

Sheet, expense, investment, maturity, accountant, debt, owner, company, city, transaction, sale, man, stockholder, liability, tax.

Exercise 3. Change the sentences using the Possessive Case.

Model: His brother has a large firm. His brother’s firm is large.

1.What is the name of the bank?

2.The debt of the enterprise is rather small.

3.The working capital of industrial companies increases.

4.These measures of Liorbank are not linked with the financial situation.

5.The total assets of “Alfa-Eco” decreased by 20 %.

6.The credit portfolio of the bank was 7 %.

7.The profession of my mother is a book-keeper.

8.A primary operating activity of a company is associated with revenues.

9.Do expenses constitute primary operations of an entity?

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Exercise 4. Give the correct form of the Present Indefinite of the verb in brackets.

1.Foreign companies ... two goals in the U.S.: Sell to Americans, and take advantage of lower U.S. costs (have).

2.Europeans ... why Americans export so little (not understand).

3.They ... if currencies shift (not quit).

4.“General Motors” ... a new team-production system (have).

5.American firms ... some $30 billion a year on worker training (spend).

6.C. Smith ... a 45 % debt ratio ... “Carbide” to sustain an earnings growth rate of 7 % (say, allow).

Exercise 5. Find examples of using the ending -s in different functions in Text A and in Text B.

Exercise 6. Read and translate word combinations paying attention to the nouns as an attribute.

Moscow museums, other earnings activities, different cash flow signals, sales revenue, major revenue item, sales activity, market value.

READING SECTION

I. Read Text A and do post-text exercises.

TEXT A

Equity. Expenses

Equity, or net assets, is the residual interest in the assets of an entity after its liabilities have been deducted. Because equity is a residual interest, it cannot be measured independently of assets and liabilities. The relationship between assets, liabilities, and equity is the basis for the accounting equation:

Assets = Liabilities + Equity

or, rearranging the equation to emphasize equity: Equity = Assets – Liabilities

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Equity usually is described as stockholders’ equity or owners’ equity.

Investments by owners and distributions to owners are called equity transactions or capital transactions.

Expenses are the using of assets or the incurring of liabilities, or both, during a period as a result of the delivery or production of goods, the rendering of services, or other earnings activities that constitute an entity’s major or primary operations. The essential characteristic of expenses is that they are incurred to the process of generating revenue [15, p. 39].

Exercise 1. Choose the correct statement.

1.Equity is the …

a)company’s activity;

b)entity’s primary operations;

c)residual interest;

d)distribution.

2.Equity is described as …

a)entity’s sale operation;

b)rendering of services;

c)stock holders’ equity;

d)owners’ equity.

3.Investments by owners are called …

a)assets;

b)net income;

c)profit;

d)capital transactions.

4.Expenses are the using of …

a)statements;

b)resources;

c)value;

d)assets.

5.Expenses are a result of the …

a)liabilities;

b)increases;

c)delivery of goods;

d)primary operations.

6.The delivery or production of goods, the rendering of services, or other earnings activities constitute an entity’s …

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a)revenues;

b)losses;

c)major operations;

d)profit.

Exercise 2. Find the correct answer to the questions.

1.What is the relationship between assets, liabilities, and equity?

2.Can equity be measured independently of assets and liabilities? Why?

3.What is the main characteristic of expenses?

II. Read Text B. Translate it into Russian.

TEXT B

Gains and Losses

Gains are increases in equity or net assets that result from peripheral or incidental transactions of an entity. Gains arise from transactions and economic events that do not result in either revenues or owner investments. Losses are decreases in equity or net assets arising from peripheral or incidental transactions of an entity. Losses arise from transactions and economic events that do not result in either expenses or distributions to owners.

There are some important distinctions between revenues and gains and between expenses and losses. First, revenues and expenses relate to the major or primary operating activities of a company, whereas gains and losses relate to peripheral activities. Consequently, revenues and expenses provide different cash flow signals from those provided by gains and losses. To illustrate, because revenues are ongoing and are associated with a company’s primary operating activity, users of financial statements should assess and predict cash flows associated with revenues and make predictions of future revenues differently than they would assess and predict cash flows associated with gains.

Second, revenues and expenses refer to gross inflows and outflows, whereas gains and losses refer to net inflows and outflows. For example, sales revenue is a major revenue item

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for a merchandising company and represents a gross inflow of resources resulting from its sales activity. To determine profit (a net amount) from sales, it is necessary to subtract cost of goods sold from sales revenue. In contrast, a gain on a sale of a company’s plant, property, or equipment is the difference (a net amount) between the book value of the plant, property, or equipment that is sold and the cash or other resources received from the sale [15, p. 39].

Exercise 1. Find sentences which give the definition of gains and losses in the text.

Exercise 2. Name the resources of gains and losses.

Exercise 3. Answer the following questions.

1.Are there any distinctions between revenues and gains and between expenses and losses?

2.What are they?

3.Do revenues and expenses, gains and losses provide different cash flow signals?

4.What does it mean that revenues and expenses, gains and losses provide different cash flow signals?

5.What is sales revenue?

6.What does sales revenue represent?

7.What is necessary to subtract cost of goods sold from sales revenue for?

8.What is a gain on a sale?

Exercise 4. Translate the sentences from Russian into English.

1.Прибыль – это увеличение капитала.

2.Существуют различия между доходами и прибылью, между расходами и убытками.

3.Доходы и расходы связаны с первичными операциями компании.

4.Доходы и расходы связаны с суммарными притоками

исуммарной убылью.

5.Прибыль и потери взаимосвязаны с нетто-притоками

инетто-убылью.

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