Sei sulla pagina 1di 4

9.

ACCOUNTING

I. Match the terms below with their definitions:


1. turnover a. amount deducted each year from the profits to allow for the fact
that assets (e.g. equipment) lose their value as they get older
2. operating costs b. total sales during a trading period
3. operating profit c. people the company owes money to, e.g. suppliers
4. depreciation d. past profits not paid out as dividends but retained in the business
5. fixed assets e. short-term assets used in operations, e.g. cash, items held in
stock
6. dividend f. money which shareholders have put into the business
7. current assets g. statement produced by an organization at the end of the
accounting period, in which the financial situation of the
organization is shown
8. creditors h. expenses of running a business including salaries, rent etc., but
not including the direct costs of manufacturing
9. current liabilities i. result of deducting the operating expenses from turnover
10. share capital j. part of a companys profits paid to shareholders
11. reserves k. debts that must be paid within one year
12. balance sheet l. long-term assets owned by the company, e.g. buildings,
machines.

II. Read the financial data produced by British Airways and mark the following statements T
(true) or F (false) according to the information given.

1. The total Group turnover increased slightly on the previous year.


2. Salaries paid to employees are part of the operating costs.
3. Interest payable on loans is deducted from the profit after tax.
4. British Airways sold off some of its assets in 1998.
5. All the profit is distributed to shareholders.
6. Earnings per share were lower than in the previous year.
7. The airlines fixed assets include aircraft.
8. The company had acquired new aircraft since the previous year.
9. The amount of current assets was greater than the amount of current liabilities.
10. Net current liabilities are calculated by deducting current liabilities from total assets.
11. British Airways had issued more than a billion shares at the time of publishing these accounts.
12. British Airways had increased its reserves since the previous year.

SUMMARY GROUP PROFIT AND LOSS ACCOUNT


Audited for the year to March 31, 1998
million 1998 1997
Most of our revenue was earned from our main business, airline 7,881 7,608
operations:
Income from other activities earned: 761 751
This gave us total Group turnover of: 8,642 8,359
Our expenses comprised:
Pay and other employee costs 2,211 2,248
Depreciation of fixed assets: 551 506
Selling costs: 1,217 1,187
Other operating costs: 4,159 3,872
In, total, therefore, our overall Group operating costs were: 8,138 7,813
Deducting this from our Group turnover left a Group operating profit 504 546
of:
Other income and charges amounted to: 80 256
The net profit on sale of fixed assets during the year was: 164 20
Net interest payable amounted to: (168) (182)
This produced a Group profit before tax of: 580 640
Then we provided for tax totalling: (133) (90)
This produced a Group profit after tax of: 447 550
Profit or loss from subsidiaries in which we have a minority interest: 13 3
This left a Group profit attributable to shareholders of: 460 553
From this we allowed for dividends representing a total of : (176) (154)
Finally, this left a profit retained in the business of: 284 399
Earnings per share
The standard measure of a companys profitability is calculated by 44.7p 55.7p
dividing profit attributable to shareholders by the average number of
shares. On this basis, our earnings per share were:

SUMMARY GROUP BALANCE SHEET


AUDITED for the year to March 31, 1998
million 1998 1997
The Groups fixed assets comprised:
Our fleet: 7,227 6,337
Property: 1,181 988
Computers, ground and other equipment: 259 263
Investments in other businesses: 388 684
Added together, these represented total fixed assets of: 9,055 8,272
Our current assets, mainly money we were owed, our cash-in-hand 2,245 2,164
and stock, represented:
Most passengers book and pay for tickets in advance. this money and (2,821) (3,160)
amounts owing to creditors that are payable within one year, totalled:
Deducting this gave us net current liabilities of: (576) (996)
Adding this to the total fixed assets left us with total assets less 8,479 7,276
current liabilities of:
In addition, we owed to creditors amounts due after more than a year
including:
Long-term borrowings of: (4,978) (4,034)
We have also made provision for other liabilities and charges: (180) (284)
We also had contributions from a minority shareholder in one of our - 26
subsidiaries of:
Thus or assets less liabilities represented: 3,321 2,984
The money invested in the British Group comprised:
Our share capital, some 1,038.9 million 25p shares: 260 251
Our reserves: 3,061 2,733
from www.british-airways.com
III. Which word or phrase from the documents above fits each of these definitions?
1. a standard measure of how profitable the company is;
2. the total amount of profit which is given out to the shareholders in dividends;
3. money which the company has available to spend immediately;
4. goods and supplies which the company has bought but not yet used;
5. money which is set aside for possible future expenses;
6. a document which shows how much a company makes or loses over a given period;
7. the surplus remaining after total costs are deducted from total revenue and represents the basis on
which tax is computed and dividend is paid;
8. ability of a firm to generate net income on a consistent basis. It is often measured by price to
earnings ratio.

IV. Fill in the gaps with suitable words from the list given:

resources tax accountancy certified economics overheads


statements public accounting allocation chartered accountants

Accounting is a branch of 1. whose purpose is to supply information in financial terms


on the .2. of the organization, on how past managerial decisions have influenced these resources and
consequently it can be a useful instrument for decision-making concerning the ..3.. of resources
for the future.
.4. is the name of the profession and is used only in the UK.
.5are professionals in the field of ..6... . They usually belong to specialized
bodies. Thus, ...7accountants are members of the Association of Certified Accountants (U.K.).
They are recognized by the Department of Trade as qualified to handle the accounts of limited companies.
..8.accountants are members of one of the Institutes of Chartered Accountants (in England, Wales,
Scotland and Ireland). In the USA, the correspondent is certified ..9.accountant, a member of
the American Institute of Certified Public Accountants. Accountants produce financial ..10.., draw
up flow forecasts, prepare .11...returns and calculate production costs as well as ..12.... .

V. Use the word in capital letters to form a word which fits in the blank space:
1. Wages are earnings which are calculated and paid . WEEK
2. The contains details of all the employees who work for the company. PAY
3. The employer makes a for tax from the workers gross salary. DEDUCT
4. They receive an increase each year as they are paid an .salary. INCREMENT
5. Its not always possible to calculate product costs . ACCURATE
6. Management may want to expand the sales of more products. PROFIT
7. Operating costing is the way of calculating the cost of the .of services. PROVIDE
8. The disposal of waste might incur .. . EXPEND
9. Some costs may be by the sale of scrap. RECOVER
10. ..may be possible on some products which fail quality control. RECTIFY

VI. Choose the correct answer:


1. is the money a person has to pay to the government, such as income tax.
a. value-added tax; b. indirect tax; c. direct tax; d. government tax.
2. A profit .. is the difference between the amount of money that a company receives for a
product and the amount which it has spent on it.
a. plus; b. margin; c. interest; d. gain.
3. Petty .. is a small amount of money kept in the company's office for buying cheap items.
a. money; b. dollar; c. coins; d. cash.
4. .. accounting refers to changing or destroying records to obtain money.
a. wrong; b. bad; c. authorized; d. dirty.
5. A account (US checking account) is a bank account which usually earns low interest and to
which you have quick access.
a. black; b. profit; c. current; d. credit.
6. Creative .. is finding ways of explaining how money has been spent while hiding what has
really happened to it.
a. bookmaking; b. accounting; c. audit; d. booking.
7. In a company, the forecasts useful for future decision-making are the province of
accounting.
a. management; b. gestion; c. credit; d. branch.
8. Capital . are profits made by selling buildings or machines.
a. losses; b. gains; c. profits; d. wins.
9. Capital . are the buildings and machines owned by a business.
a. shares; b. actives; c. expenditure; d. assets.
10. The collective word for all the company's property is called . .
a. shares; b. liabilities; c. assets; d. goods.

VII. Match the following phrases with the corresponding meaning:

1. How do you account for the sudden fall in the stock value? a. people say;
2. Agents buy and sell goods on their own account. b. report;
3. They gave the solicitor a detailed account of the customers business c. under no
deals in the last year. circumstances;
4. The draft accounts had to be adjusted on account of the discovery that a d. consider;
major debtor had gone bankrupt.
5. Raw materials account for 30% of the manufacturing costs. e. explain;
6. They are regular customers in this shop and are now able to buy on f. big customers;
account.
7. On no account should these figures be released before the board g. for themselves;
meeting.
8. When making decisions for the future, managers have to take this years h. because of;
poor performance into account.
9. By all accounts, they will benefit greatly if the deal goes through. i. on credit;

10. The advertising company has won two new accounts in South Africa. j. represent.

VIII. Translate into English:


O activitate economica poate fi condusa corect cand luarea deciziei, aplicarea si controlul executarii ei
sunt legate de informatii operative, corecte si complete. Poate fi vorba, astfel, de un management al
contabilitatii, dar si de o contabilitate a managementului.
In sustinerea acestei idei este necesara cunoasterea modului de gandire manageriala, pentru abordarea
aspectelor necesare inchiderii favorabile a contului de rezultate, precum si inregistrarea in contablitate a
tuturor operatiilor economice ce au avut loc astfel incat sad ea posibilitatea cunoasterii reale a situatiei de
fapt. Reusita afacerii in intreprindere este esentiala printr-un management al contabilitatii si o contabilitate a
managementului si, paralel, suprapunandu-se de multe ori cu acestea, contabilitatea propriu-zisa, prin cele
doua laturi ale sale: financiara si de gestiune.
Daca prin contabliattea generala se ofera informatii prelucrate unitar, realizand legatura intreprinderii cu
mediul, luarea deciziilor la nivel managerial este posibila numai in urma primirii informatiilor necesare, ori
aceste informatii sunt furnizate de contabilitatea de gestiune sau manageriala, care primeste, inregistreaza si
analizeaza datele contabile interne.