20. Profit and loss accounts CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

20. Profit and loss accounts

Parker Publishing Group Plc Summary Profit and Loss Account Audited for the year to March 31st 2007 A. Match the words from the account summary with the definitions. 1 audited revenue turnover fixed asset depreciation net shareholder dividend a reduction in value of an asset over time money paid to shareholders asset purchased for long-term use, such as land, buildings and equipment after any deductions accounts checked by an independent examiner a person who has invested in the company through buying shares income total income 2 b 3 c 4 d 5 e 6 f 7 g 8 h B. Look at the account summary, and answer true or false. 1 Turnover is income after outgoings have been deducted. TRUE / FALSE Salaries and wages were the only major operating cost. TRUE / FALSE Depreciation of fixed assets seriously reduced operating profits. TRUE / FALSE Parker Publishing spent a lot on sales and marketing. TRUE / FALSE The company sold some assets. TRUE / FALSE Nearly all the profits went to the shareholders. TRUE / FALSE Dividends were only 17.4p per shareholder. TRUE / FALSE It was a very bad year for Parker Publishing. TRUE / FALSE 2 3 4 5 6 7 8 C. Choose the best words to fill the spaces. 1 The year to March 31st can also be called the year __________ March 31st. A finishing B ending C terminating 2 Another term for "main business" is __________ business. A central B first C core 3 A company which makes a profit can be described as profitable or __________. A profit-getting B profit-making C profit-having 4 A company which makes a loss can be described as __________. A loss-getting B loss-making C loss-having 5 "Profit before tax" can also be called __________. A pre-tax profit B without-tax profit C non-tax profit 6 Another word for shareholders (especially in American English) is __________. A ticket-holders B stockholders C paper-holder 7 Another word for "operating costs" is __________. A overheads B headings C heads 8 A company which makes neither a profit or a loss is said to __________. A fall even B drop even C break even

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