Exercise 1. Have a look at the structure.

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Exercise 1. Have a look at the structure.

Can you turn in the report in time?

No, I can’t turn in the report but I could when I worked in the other department.

1. Can they check the assets and liabilities?

2. Can you keep the investors and creditors happy?

3. Can you explain the difference between gross pay and net take-home pay?

4. Can he compute the taxes?

5. Can we prepare profit and loss statement?

6. Can the company pay the salaries in time?

7. Can I operate the computer?

Exercise 2. Imagine that you work as an accountant in a big enterprise. Answer the following questions.

1. Do you total the accounts at the end of the fiscal year?

2. What are your usual activities at the end of the fiscal year?

3. When do you prepare a financial statement?

4. Why should you have more assets than liabilities?

5. Does the accounting department work on taxes?

6. What is the difference between your gross salary and net salary?

7. Is the difference between gross salary and net salary big in this country? What does this difference depend on?

Exercise 3. Make up the dialogue about accounting:

a) between an experienced accountant and a university graduate who has just begun to work as an accountant;

b) you are an employer and you want to hire an accountant, find out, if he (she) is experienced enough in accounting.

Exercise 4. Translate from Ukrainian into English.

1. Бухгалтерський облік надає дані кредиторам і тим, хто вкладає гроші.

2. Вони готують звіт про прибутки та фінансовий звіт наприкінці фінансового року.

3. Ми визначаємо ефективність виробництва за допомогою аналізу коефіцієнтів.

4. Нерухомість є власністю корпорацій.

5. Ми перевіримо актив і пасив, визначимо вартість майна без урахування зобов'язань.

6. Ми сплачуємо великі податки.

7. Скільки ти отримуєш без вирахувань?

Grammar Exercises

Exercise 1. Make the sentences negative.

Model: I worked as an accountant in a big corporation.

I didn't work as an accountant in a big corporation.

1. An accounting department reported on the effects of the transactions.

2. They studied carefully income statement and balance sheet.

3. We used ratio analysis to determine the firms operating efficiency.

4. The accountants checked the assets and liabilities.

5. The accounting department provided data for the management.


Exercise 2. Put up for questions of different types to each sentence (general, special, disjunctive, alternative).

Model: The accounting department regularly prepared the income statement and

balance sheet.

1. Did the accounting department regularly prepare the income statement and balance sheet?

2. What did the accounting department regularly prepare?

3. The accounting department regularly prepared the income statement and balance sheet, didn't it?

4. Did the accounting department prepare the income statement or a financial statement?

1. The board of directors checked out assets, liabilities and net worth.

2. He worked as a Comptroller of the company for two years.

3. The applicants sent their resumes and letters of interest.

4. She used to do books in a big company.

5. Some governmental corporations issued stock certificate.






Corporations need financing for the purchase of assets and the payment of expenses. The corporations can issue shares in exchange for money or property. Sometimes it is called as equity funding. The holders of the shares form the ownership of the company. Each share is represented by a stock certificate, which is negotiable. It means that one can buy and sell it. The value of a share is determined by the net assets divided by the total number of shares outstanding. The value of the share also depends on the success of the company. The greater the success, the more value the shares have.

A corporation can also get capital by borrowing. It is called debt funding. If a corporation borrows money, they give notes or bonds. They are also negotiable. But the interest has to be paid out whether business is profitable or not.

When running the corporation, management must consider both the outflow and inflow of capital. The outflow is formed by the purchase of inventory and supplies, payment of salaries. The inflow is formed by the sale of goods and services. In the long run the inflow must be greater than the outflow. It results in a profit. In addition, a company must deduct its costs, expenses, losses on bad debts, interest on borrowed capital and other items. It helps to determine if the financial management has been profitable. The amount of risk involved is also an important factor. It determines the fund raising and it shows if a particular corporation is a good investment.

Active Vocabulary

purchase покупка, купівля, придбання

payment of expenses сплата видатків

property власність, майно

equity funding акціонерний (пайовий) спосіб утворення

грошового фонду підприємства

debt funding утворення грошового фонду підприємства за

допомогою позики

holders of the shares акціонери

stock certificate сертифікат акцій

negotiable обіговий, той, який можна купити, продати

net assets вартість майна не враховуючи зобов’язань

bond боргове зобов'язання, облігація

note боргова розписка

interest частка, фіксований процент

to pay out виплачувати

to run a corporation керувати корпорацією

inflow приплив (грошей)

outflow витік (грошей)

inventory матеріально-виробничі запаси, інвентар

supplies ресурси

debt борг

goods товари

Comprehension Questions

1. Why do all corporations need financing?

2. What does equity funding mean?

3. What does debt funding mean?

4. How is the value of a share determined?

5. What activities produce an inflow and outflow of capital?

6. What can happen if an enterprise has a greater outflow of capital than an inflow?

7. Why is the risk involved an important factor in determining fund raising?

Vocabulary Practice

Choose the necessary word and put it in the sentence.

1.... funding is a financing formed by borrowing. 1 equity

2. They have borrowed much money and they have to pay a big.... 2 negotiable

3. Financing by shares is called... funding. 3 interest

4. That is a very profitable deal, for that purpose we need extra .... 4 inventory

5. You can sell your shares and ……. 5 funding

They are.….… 6 inflow

6. The current assets of a company usually include cash and.... 7 bond

7. As a result of this deal we' 11 have greater... than outflow. 8 debt


Mary It' s so nice to see you, Frank. Sorry, I couldn't come to your office today.

FrankNever mind. Have a seat. Let' s start by having some coffee. Later.

Mary So Frank. I guess it might be right time for me to invest in that computer

company.As my stockbroker, what can you suggest?

Frank I am sure they are doing extremely well and they would welcome your investment.

Mary But why do they need my investment if they are doing so well?

Frank O.K. I think I should explain you a little about a corporate finance.

Mary Go ahead. If it concerns my money I am always interested.

Frank If a corporate enterprise wants to expand it needs financing.

Mary You are right. Frank So there are two basic types of financing: equity and debt.

Mary What's the difference between them?

Frank If the money is supplied by the owners of a business it is called equity funding.

And the use of money supplied by loans is called debt funding.

Mary So as investor, what am I?

Frank Well, as an investor you become a partial owner of a business and receive equity.

You get shares or certificates of common stock which represent your portion of


Mary You did right buying the stock for me. By the way, are there any documents which show the financial state of the company?

FrankOh yes. You've just reminded me. I’ve brought a copy of the company's Annual

Report for you to look over. You should read it very carefully. And if you have

something to ask do it, please.

Mary Thanks a lot, Frank. I will. Does this company pay dividends on its stock?

Frank Yes. In fact, I studied their Annual Report and I can tell that they have good

management. Their business is doing very well, the value of their stock has been

rising. It can be an excellent long-term investment, I am sure.

MaryBut if I want to sell my shares very soon?

Frank No problem. Undoubtedly you can make a profit on the sale. But it seems to me

you'll want to keep this company in your portfolio.

Mary Thank you for your advice. You are wise as usual.

Frank Well, my advice now is to study the company's Annual Report. You need several

days for that. Then we'll meet and talk again.

Active Vocabulary

a stockbroker біржовий маклер

if it concerns smth якщо мова йдеться про

loan позика

partial owner співвласник

Annual Report річний звіт

to pay dividends платити дивіденди

long-term investment довгостроковий внесок

to make a profit on the sale отримувати прибуток з продажу

Vocabulary Exercises

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