Ea Contents INTRODUCTION BASIC TERMS GD Money and income A Currey B Pecsonal une Business finance A Capital B Revenue © Financial statements ACCOUNTING Accounting and accountancy I Gecommegs B Audiring © Laws, rules and standards Bookkeeping ‘A Double entry bookkeeping B Day books and ledgers © Balancing the hooks Company law 1 18 Parmeships 8 Limite bili © Founding companies Company law 2 ‘A Pnvate and pubhie companies 8 ACM. Accounting policies and standards A Valuation and measurement Historical cost snl inflation acc EB Accounting assumptions and principles A Assumptions 8 Principles " 10 14 16 18 20 22 BD Depreciati A Fixed assets B Valuation © Depreciation systems Auditing 1A Internal auditing 8 External auditing © rregularites BD the balance sheet 1 A Awe B Sharcholders’ equity n and amortization 24 26 8 Siabiiiee and capital BD Tre balance sheet 2: assets [A Prxed and current assets 30 B Valuation C Tanwible and ineansible assets ® Ihe balance sheet 3: liabilities A Lisbiltes B Accrued expenses © Sharcholders’ equity on the bakince sheet The other financial statements 34 A. The profi and loss account The cashflow statement Financial ratios 1 A Types of financial ratio Liquidity and solvency ratios lividende 36 GG Financial ratios 2 38 A Profitability B Leverage 40 Cost accounting A Direct and indirect costs B Fixed and variable costs © Beeakeven analysis @ Pricing actives’ peicing wranigiee ul pricing steateies Professional English in Use FinanceBANKING ®) Personal banking A Current accounts B Ba © F-banking Commercial and retail banking ing peexiuces and services A Commercial ann retail hanks 8 Credic © Loans and risks Financial institutions A Types of naneial institution 8 eregulavins © Specialized hanks B® bovestment banking ‘N Raising capial 8 c A ° c Mergers and acquisitions Consulting and research Central banking The functions of central banks ‘The central Bank and the con Central banks and exchange Interest rates A faterest cates and monetary policy B Different interest rates Moncy markets A ‘the money markers 8 Common money marker instruments © Repos Islamic banking A Interes-free banking 8 lypes of accounts © Leasing and shor-term loane Money supply and control A. Measuring money 8 Changing the money supply © Monetarisi Professional Engish in Use Finance 46 48 50 56 60 CORPORATE FINANCE Venture eapital 62 & Raising capital 8 Return un capiral EB) Stocks and shares 1 64 A Stocks, shares a 8 Going publi © Ordinary and preference shares Stocks and shares 2 66 A Buying and selling shares d equities B New share issues © Categories of stocks anil shares Shareholders ce Ives B Dividers © Speculacors ud capital gains Share prices 70 A Iniluences on share prices B Predicting prices © Types of risks Bonds 72 A Government and corporate bonds B Prices and yields © Other types of bonds Futures 74 Commodiry futures Financial forures, Derivatives 76 A Options © lirthe-money and ont-of-the-money © Warrants and swans o> Asset management 18 Allocating and diversifying assets B Types of investor © Active and passive investment Hedge funds and structured products tledge funds BL overage, chortwelling and arbitrage © Structured products ADescribing charts and graphs 82 A Increase a dostease 8 ate of chan © High points, low points, and staying the @D Mergers and takeovers 84 ‘A. Mergers, takeovers and joint ventures B Hostile or friendly? © Integration GD Leveraged buyouts 86 A Conglomerates B Raiders Financial planning 88 A Financing new investinents B Discounted cash flows C Comparing investment reruns @B Financial reguiation and supervision 90 A Government regulation & tntemal controls © Sarbanes-Osley ECONOMICS AND TRADE EBD International trade 92 A Trade B Balance of payments © Protestionism Exchange rates 94 ‘A Why exchange rates change B Fixed and floating rates © Government ineerve Financing international trade 96 ‘A Documentary credits B Bills of exchange © Export documents @B Incoterms 98 A. Transport and additional costs B the E and F te © The Cand Di Insurance 100 A Tnsoring against cis B Life insurance and saving, © Insurance companies The business cycle 102 ‘A. Expansion and contraction B Fiscal policy © Monetary policy Taxation 104 A Dicer taxes B. Indiroce tans © Non-payment af tax Business plans 106 A Marker oppornunities B The company, the product and the marker © The financial analysis Language reference 108 Marker idioms Numbers Word stress British and American vocabulary Answer key 4 Index 132 Acknowledgements 140 Profesionol English in Use Finance