THE BALANCE SHEET 1 PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 11. THE BALANCE SHEET 1

 

A Assets, liabilities and capital Company law in Britain, and Securities and Exchange Commission in the US, require companies to publish annual balance sheets: statements for shareholders and creditors. The balance sheet is a document which has two halves. The totals of both halves are always the same, so they balance. One half shows a business’s assets, which are things B Shareholders’ equity Shareholders’ equity consists of all the money belonging to shareholders. Part of this is share capital – the money the company raised by selling its shares. But shareholders’ equity also includes retained earnings: profits from previous years that have not been.   EXERCISES 11.1 Are the following statements true or false? Find reasons for your answers in A and B opposite. 1 British and American balance sheets show the same information, but arranged differently. 2 The revenue of the company in the past year is shown on the balance sheet. 11.2 Complete the sentences. Look at A and B opposite to help you. 1 __________________ are companies that provide other companies with materials, components, etc. 2 __________________ are profits that the company has not distributed to shareholders. 11.3 Make word combinations using a word from each box. Then use the word combinations to complete the sentences below. Look at A and B opposite to help you. 1 We ____________ a lot of our ____________ because we don’t ____________ any of our ____________ to the shareholders. 2 Most businesses have customers who ____________ ____________, because they ____________ them 30 or 60 days’ ____________.

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