€ Banking and Finance - Financial Vocabulary



Malena Erin

Malena Erin (37)

Malena Erin
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1. Accounting and Financial Statements

Companies have to produce  finacial information every year. Match the three common accounts or financial statements below with their descriptions:

1. Profit and Loss Account (UK) / Income Statement (USA)

2. Balance Sheet

3. Sources and Applications of Funds (UK) / Statement of Changes in Financial Position (USA)

a-This statement shows a company's financial situation on a specific date, usually at the end of the financial year. It calculates a company's liabilities, assets and share capital.

b-This statement shows the movement of cash in and out of a company. It includes entries such as trading profits, borrowing, the sale of assets, etc.

c-This statement shows a company's profit by calculating turnover and the total of costs and overheads.

JohannaT.

JohannaT. (38)

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1 C
2 A
3 B 

 

1. Profit and Loss Account (UK) / Income Statement (USA) 

c-This statement shows a company's profit by calculating turnover and the total of costs and overheads. 

 

2. Balance Sheet 

a-This statement shows a company's financial situation on a specific date, usually at the end of the financial year. It calculates a company's liabilities, assets and share capital. 

 

3. Sources and Applications of Funds (UK) / Statement of Changes in Financial Position (USA)b-This statement shows the movement of cash in and out of a company. It includes entries such as trading profits, borrowing, the sale of assets, etc.  

b-This statement shows the movement of cash in and out of a company. It includes entries such as trading profits, borrowing, the sale of assets, etc. 

Malena Erin

Malena Erin (37)

Malena Erin
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Well done! Your answer is correct Johanna :)

He MAn T

He MAn T (25)

He MAn T
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Perfect comment made by Johanna T.

Malena Erin

Malena Erin (37)

Malena Erin
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You're right!

Carol Ocell

Carol Ocell (38)

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1c

2a

3b

Malena Erin

Malena Erin (37)

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Well done Carol! Your answer is correct  :)

Malena Erin

Malena Erin (37)

Malena Erin
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2. Accounting Entries

Here are some entries which could appear in any of the financial statements in exercise 1. Decide whether they should be entered on the positive or the negative side of the balance sheet:

Example: turnover - positive

dividends

creditors

debtors

assets

liabilities

share capital

taxation

 

Carol Ocell

Carol Ocell (38)

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Hello Malena!

positive: turnover, debtors, assets, share capital

negative: dividends, creditors, assets, liabilities , taxation

Malena Erin

Malena Erin (37)

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Hi Carol!

Your answer is correct. Keep on writing!