Тема 24.2.: Отчет о доходах. Отчет оборотных средств.

Study the words and the word-combinations.

income statement — отчет о доходах;

assets ['æsets] — активы;

net income — чистый доход;

sales revenue — доходы от продаж;

obtain — получать;

consume — расходовать;

cost of merchandise cost — стоимость реализованных товаров;

depreciation — амортизация;

net gain / income — чистая прибыль;

net loss — чистый убыток;

interest revenues — доходы от процентов;

expenses — расходы.

І. Read and translate the text.

Income statement

The company uses its assets to produce goods and services. The company’s success depends on whether it is wise or lucky in the assets it chooses to hold and in the ways it uses these assets to produce goods and services. The company’s success is measured by the amount of profit it earns. Net income is the accountant’s term for the amount of profit that is reported for a particular time period. The company’s income statement for a period of time shows how the net income for that period was derived. The first line in the company’s income statement shows the company’s net sales revenues for the period: the assets obtained from customers in exchange for the goods and services. The second line summarizes the company’s revenues from other sources. The income statement next shows the expenses of the period: the assets that were consumed while the revenues were being created. The expenses are usually broken down into several categories (cost of merchandise sold, salaries of employees, depreciation, and etc.) indicating what the assets were used for. The income statement shows only a single number, the net gain on the sale. If net income is negative, it is referred to as a net loss.

II. Restore the word order in the questions and answer them.

1) What the company’s income statement does show? 2) What the first line in the company’s income statement show does? 3) What the second line in the does company’s income statement summarizes? 4) What does expenses the income statement show? 5) What does number the income statement show? 6) What is to as a net loss referred?

III. Translate the following questions from Russian into English and answer them.

1) Чистый доход – это доход после уплаты всех налогов? 2) Чистый убыток – это когда расходы превышают доходы? 3) Что включает в себя понятие «стоимость»? 4) Что включает в себя понятие «издержки»? 5) Зарплата работающих по найму отражена в отчете о доходах? 6) Амортизация – это постепенное снижение ценности основных фондов вследствие их изнашивания? 7) Амортизация – это постепенное перенесение стоимости основных фондов на вырабатываемую продукцию с целью накопления средств для их обновления?

IV. Complete the statements.

1) The company uses … 2) The company’s success depends on … 3) The company’s success is measured by … 4) Net income is … 5) The company’s income statement shows … 6) The first line in the company’s income statement shows … 7) The second line in the company’s income statement summarizes … 8) The income statement next shows … 9) The expenses are broken down into … and indicate … 10) The income statement shows only …

V. Read the text.

Cash flow statement

Companies also prepare a third financial statement, the statement of cash flows. Cash flows result from three major groups of activities: (1) operating activities, (2) investing activities, and (3) financing activities.

VI. Translate the following words and phrases from Russian into English and vice versa rapidly (covering them in turn). Check each other up.

Баланс оборотных средств; прибыль от торговли инвестициями; инвестиционная деятельность; покупка оборудования; финансовая деятельность; выпуск облигаций; облигация; денежный дивиденд; остаток кассы; движение наличных средств; денежная наличность; текущая (эксплуатационная) деятельность; чистый доход; амортизация; отсроченные налоги; валютные активы.

Cash balance; cash flow statement; investing activities; purchase of equipment; financing activities; issuance of bonds; bond; cash flow; cash; operating activities; net income; depreciation; deferred taxes; monetary assets; gain on sale of investment; cash dividend.

VII. Translate the following statements from English into Russian.

1) Cash is money in the form of coins or notes rather than cheques, credit cards etc. 2) Cash flow is the movement of money coming into a business as income and going out as wages, materials etc. 3) A net amount of money is the amount that remains after everything has been taken away from it. 4) A gross amount of money is the total amount before any tax or costs have been taken away. 5) Income is the amount of money (usually annual) accruing as payment, profit, interest, etc., from labour, business, professions or property. 6) Net income is a person’s total income after deduction of income tax. 7) Depreciation is the measure of wearing out of a fixed asset arising from use, effluxion of time or obsolescence through technological or market changes. 8) To defer means to delay something until a later date. 9) Tax is a compulsory levy on individuals and companies by the state to meet the expenses of the government. 10) Assets are the things that a company owns, that can be sold to pay debts. 11) Gain is the increase of resources, due to profitable trading. 12) Sale is the act of giving property, food, or other goods to someone in exchange for money. 13) Investment is the money that people or organizations have put into a company, business, or bank in order to get a profit, or to make a business activity successful. 14) Equipment is all the special tools, machines, clothes etc that you need for a particular activity. 15) Bond is an official document promising that a government or company will pay back money that it has borrowed, often with interest. 16) Dividend is a part of a company’s profit that is divided among the people who have shares in the company.

VIII. Complete the following statements.

1) Deferred taxes are … 2) Monetary assets are … 3) Cash dividends are … 4) Cash balance is … 5) Cash from operating activities includes … 6) Cash for investing activities consists of … 7) Cash from financing activities comprises …