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Read the financial data produced by British Airways and mark the following statements T (true) or F (false) according to the information given.
1. The total Group turnover increased slightly on the previous year. 2. Salaries paid to employees are part of the operating costs. 3. Interest payable on loans is deducted from the profit after tax. 4. British Airways sold off some of its assets in 1998. 5. All the profit is distributed to shareholders. 6. Earnings per share were lower than in the previous year. 7. The airline’s fixed assets include aircraft. 8. The company had acquired new aircraft since the previous year. 9. The amount of current assets was greater than the amount of current liabilities. 10. Net current liabilities are calculated by deducting current liabilities from total assets. 11. British Airways had issued more than a billion shares at the time of publishing these accounts. 12. British Airways had increased its reserves since the previous year. SUMMARY GROUP PROFIT AND LOSS ACCOUNT Audited for the year to March 31, 1998 £ million 1998 1997 Most of our revenue was earned from our main business, airline 7,881 7,608 operations: Income from other activities earned: 761 751 This gave us total Group turnover of: 8,642 8,359 Our expenses comprised: Pay and other employee costs 2,211 2,248 Depreciation of fixed assets: 551 506 Selling costs: 1,217 1,187 Other operating costs: 4,159 3,872 In, total, therefore, our overall Group operating costs were: 8,138 7,813 Deducting this from our Group turnover left a Group operating profit 504 546 of: Other income and charges amounted to: 80 256 The net profit on sale of fixed assets during the year was: 164 20 Net interest payable amounted to: (168) (182) This produced a Group profit before tax of: 580 640 Then we provided for tax totalling: (133) (90) This produced a Group profit after tax of: 447 550 Profit or loss from subsidiaries in which we have a minority interest: 13 3 This left a Group profit attributable to shareholders of: 460 553 From this we allowed for dividends representing a total of : (176) (154) Finally, this left a profit retained in the business of: 284 399 Earnings per share The standard measure of a company’s profitability is calculated by 44.7p 55.7p dividing profit attributable to shareholders by the average number of shares. On this basis, our earnings per share were:
we owed to creditors amounts due after more than a year including: Long-term borrowings of: (4.164 and stock. e.061 2. ground and other equipment: 259 263 Investments in other businesses: 388 684 Added together. our ‘cash-in-hand’ 2. some 1. balance sheet l. statement produced by an organization at the end of the accounting period.055 8.g. creditors h. operating profit c.. totalled: Deducting this gave us net current liabilities of: (576) (996) Adding this to the total fixed assets left us with total assets less 8. current assets g. dividend f. these represented total fixed assets of: 9.g.337 Property: 1. machines.321 2. operating costs b. 1998 £ million 1998 1997 The Group’s fixed assets comprised: Our fleet: 7. in which the financial situation of the organization is shown 8. people the company owes money to. represented: Most passengers book and pay for tickets in advance. but not including the direct costs of manufacturing 9.181 988 Computers.245 2. reserves k.SUMMARY GROUP BALANCE SHEET AUDITED for the year to March 31. Match the terms below with their definitions: 1.227 6. cash. suppliers 4. amount deducted each year from the profits to allow for the fact that assets (e.g.160) amounts owing to creditors that are payable within one year.9 million 25p shares: 260 251 Our reserves: 3.479 7. buildings. rent etc. debts that must be paid within one year 12. mainly money we were owed.british-airways. money which shareholders have put into the business 7. long-term assets owned by the company. this money and (2.978) (4.276 current liabilities of: In addition.821) (3.038. items held in stock 6. result of deducting the operating expenses from turnover 10. current liabilities i.034) We have also made provision for other liabilities and charges: (180) (284) We also had contributions from a minority shareholder in one of our 26 subsidiaries of: Thus or assets less liabilities represented: 3. e. part of a company’s profits paid to shareholders 11.984 The money invested in the British Group comprised: Our share capital. short-term assets used in operations. past profits not paid out as dividends but retained in the business 5. equipment) lose their value as they get older 2. fixed assets e.com II. turnover a.g. . expenses of running a business including salaries.272 Our current assets. share capital j. total sales during a trading period 3.733 from www. depreciation d. e.
b. RECOVER ……. c. 8.…5……are professionals in the field of ……. ACCURATE Management may want to expand the sales of more ………products. d. A profit …….. 6.. They usually belong to specialized bodies.4…. a member of the American Institute of Certified Public Accountants. Thus. ..K. Use the word in capital letters to form a word which fits in the blank space: Wages are earnings which are calculated and paid ……… . It is often measured by price to earnings ratio. Petty ……. cash. draw up flow forecasts. on how past managerial decisions have influenced these resources and consequently it can be a useful instrument for decision-making concerning the ……. value-added tax. a. 8. government tax.. 2. Choose the correct answer: 1.…12. 5. Wales.accountants are members of one of the Institutes of Chartered Accountants (in England.III...returns and calculate production costs as well as …. dollar...….. prepare ……. ……is the money a person has to pay to the government. 4.salary.11. PROFIT Operating costing is the way of calculating the cost of the ……. is the difference between the amount of money that a company receives for a product and the amount which it has spent on it. the total amount of profit which is given out to the shareholders in dividends. . such as income tax. 3. 3. PAY The employer makes a ………for tax from the workers’ gross salary. 10.…10…. 9. 2. ……. goods and supplies which the company has bought but not yet used. INCREMENT It’s not always possible to calculate product costs ……… . …. margin.. ……. In the USA. IV. money. b. 2. d.2…. . 1. V. d. a. plus.…accountant. EXPEND Some costs may be ………… by the sale of scrap. . gain. of the organization. c. 4. 3..)... the surplus remaining after total costs are deducted from total revenue and represents the basis on which tax is computed and dividend is paid. …….may be possible on some products which fail quality control.. 7. is the name of the profession and is used only in the UK. money which the company has available to spend immediately. ability of a firm to generate net income on a consistent basis. RECTIFY VI. coins.7………accountants are members of the Association of Certified Accountants (U. 7.…. WEEK The ………contains details of all the employees who work for the company.9……. a standard measure of how profitable the company is. 6. Which word or phrase from the documents above fits each of these definitions? 1. a.6…….3……. c. Scotland and Ireland). direct tax.. is a small amount of money kept in the company's office for buying cheap items. DEDUCT They receive an increase each year as they are paid an ……. indirect tax..8……. whose purpose is to supply information in financial terms on the …. a document which shows how much a company makes or loses over a given period.. 5. the correspondent is certified ….. interest. They are recognized by the Department of Trade as qualified to handle the accounts of limited companies. PROVIDE The disposal of waste might incur …….of services. Accountants produce financial ….…. money which is set aside for possible future expenses. resources statements Fill in the gaps with suitable words from the list given: tax accountancy public accounting certified allocation economics chartered overheads accountants Accounting is a branch of ……1……….. b. of resources for the future.
Creative ……. Capital ………. 4. c. On no account should these figures be released before the board meeting. 3. b. astfel. d. Capital ……. They gave the solicitor a detailed account of the customer’s business deals in the last year. d. expenditure. gains. e. c. c. accounting refers of changing or destroying records to obtain money. wrong. 7. goods. dar si de o contabilitate a managementului. In sustinerea acestei idei este necesara cunoasterea modului de gandire manageriala. they will benefit greatly if the deal goes through. d. g. 8.. is finding ways of explaining how money has been spent while hiding what has really happened to it. management. suprapunandu-se de multe ori cu acestea. a. audit. . By all accounts. b. 5. a. . 10. 1. 8. a. explain.. b. represent. i. c. big customers. consider. people say. c. gestion. Daca prin contabliattea generala se ofera informatii prelucrate unitary. h. current. f. b. b. Poate fi vorba. bookmaking. luarea deciziilor la nivel managerial este posibila numai in urma primirii informatiilor necesare. VII. j. 9. because of. precum si inregistrarea in contablitate a tuturor operatiilor economice ce au avut loc astfel incat sad ea posibilitatea cunoasterii reale a situatiei de fapt. accounting. In a company. authorized. de un management al contabilitatii. a. ori aceste informatii sunt furnizate de contabilitatea de gestiune sau manageriala. assets. The collective word for all the company's property is called ………. booking. no VIII. a. managers have to take this year’s poor performance into account. They are regular customers in this shop and are now able to buy on account. The draft accounts had to be adjusted on account of the discovery that a major debtor had gone bankrupt. d. Translate into English: O activitate economica poate fi condusa corect cand luarea deciziei. d. A ……… account (US checking account) is a bank account which usually earns low interest and to which you have quick access. paralel. When making decisions for the future. credit. for themselves. liabilities. inregistreaza si analizeaza datele contabile interne. contabilitatea propriu-zisa. a. 9. black. How do you account for the sudden fall in the stock value? 2. c. realizand legatura intreprinderii cu mediul. 6. credit. Raw materials account for 30% of the manufacturing costs. aplicarea si controlul executarii ei sunt legate de informatii operative. Reusita afacerii in intreprindere este esentiala printr-un management al contabilitatii si o contabilitate a managementului si. shares. branch. under circumstances. c. d. goods. b. report. b. b. d. The advertising company has won two new accounts in South Africa. ………. entru abordarea aspectelor necesare inchiderii favorabile a “contului de rezultate”. shares. Match the following phrases with the corresponding meaning: a. a.4. d. 7. are the buildings and machines owned by a business. 10. profit. 5. bad. wins. Agents buy and sell goods on their own account. corecte si complete. assets. are profits made by selling buildings or machines. dirty. losses. prin cele doua laturi ale sale: financiara si de gestiune. care primeste. the forecasts useful for future decision-making are the province of ……… accounting. on credit. 6. profits. c.