Unit 3. Basic financial statements

Exercise 1. Expand on the statements:

1. Business is business. Anonymous

2. False friends are worse than open enemies. Proverb

Exercise 2. Read the following international words and try to guess their meaning:

firm

basic

financial

balance

period

convert

investing

section

to signal

Exercise 3. Choose from the text the words with the following suffixes, place them in the alphabetical order and translate them.

- ment – суффикс существительного

- tion – суффикс существительного

- al – суффикс прилагательного

Exercise 4. Read the following words and word combinations. Use them in sentences of your own.

to get a clear picture – получить ясную картину

balance sheet – балансовый отчет

income statement – отчет о доходах

statement of cash flows – отчет о движении наличности

firm’s profitability – прибыльность фирмы

revenues, expenses and income – выручка, издержки и доход

short statement of retained earnings – краткий отчет о нераспределенной прибыли (чистая прибыль компании, не распределенная среди акционеров, а направленная в резервы или на другие цели (реинвестированная в бизнес))

assets, liabilities and equity – активы, пассивы и акции без фиксированного дивиденда

long-term securities – долгосрочные ценные бумаги

cash inflow – приток наличности

cash outflow – отток наличности

Exercise 5. Read the title of the text and predict the main ideas of the text.

Exercise 6. Read the text and find out:

1. How can a person get a clear picture of the firm’s financial condition?

2. What are the three basic financial statements?

3. What is the income statement?

4. What do many companies prepare in addition to the income statement?

5. What does the balance sheet show?

6. How is the statement of cash flows constructed?

7. What activities does the statement of cash flows reflect?