THE BALANCE SHEET 3 PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 13. THE BALANCE SHEET 3

 

A Liabilities Liabilities are amounts of money that a company owes, and are generally divided into two types – long term and current. Long-term liabilities or non-current liabilities include bonds. B Accrued expenses Because of the matching principle, under which transactions and other events are reported in the perios to which they relate and not when cash is received or paid, balance sheets C Shareholders’ equity on the balance sheet Shareholders’ equity is recorded on the same part of the balance sheet as liabilities, because it is money belonging to the shareholders and not the company. shareholders’ equity includes:   EXERCISES 13.1 Are the following statements true or false? Find reasons for your answers in A, B, and C. 1 A current liability will be paid before the date of the balance sheet. 2 A liability that must be paid in 13 months time is classified as long-term. 13.2 Find words in A, B and C opposite with the following meanings 1 money that will be paid in less than 12 months from the balance sheet date 2 the money that investors have paid to buy newly issued shares, minus the shares’ face value 13.3 Start the following into assets and liabilities. Look at A and B opposite to help you. You may need to look at Unit 12.

ANSWER KEY