UNIT 19 ACCOUNTING AND FINANCIAL STATEMENTS

Lead-in
accounting noun the work of preparing the financial records of people, companies, or
organizations: kế toán
The lawsuit alleges that the company has engaged in a pattern of questionable
business and accounting practices.

financial statement noun a report provided by a company for its shareholders and
investors that shows details of its financial situation, and includes documents such as the
profit and loss account and balance sheet: báo cáo tài chính
There are various procedures that must be followed when preparing financial
statements.

assets noun /ˈasets/ property owned by a person or company, regarded as having value and
available to meet debts, commitments, or legacies: tài sản /////// to assess verb: đánh giá
At the time, Templeton had about $ 11 billion in assets.
liability noun /ˌlaɪəˈbɪləti/ (plural liabilities) a thing for which someone is responsible,
especially a debt or financial obligation: nợ phải trả
Tenants have legal liability for any damage they cause.
Vocabulary
transaction noun / trænˈzækʃən/ an instance of buying or selling something; a business
deal giao dịch
In an ordinary commercial transaction a delivery date is essential.
expenditure noun /ɪkˈspendɪtʃər/ the total amount of money that an organization or person
spends: chi phí
We're primarily concerned with keeping expenditure down.

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income noun /ˈɪŋkʌm/ money earned by a person, company, government, etc. over
particular period of time: thu nhập, doanh thu, nguồn thu
To qualify, you must have an income of $24,000 or less.

budget noun /ˈbʌdʒɪt/ a plan that shows how much money an organization expects to earn
and spend during a particular period of time, and how it will spend its money: kế hoạch
tài chính
Corporate planners are busy drawing up a budget for the next fiscal year.

revenue noun /ˈrevənjuː/ (also revenues) money that a company receives, especially from
selling goods or services: doanh thu, thường từ bán hàng
Revenue from online ads is much less than from print advertising.

debit (abbreviation Deb); (deb) an amount recorded that is recorded in a company's

financial accounts which represents money that has been used to pay an expense or buy an
asset. In double-entry bookkeeping debits are recorded on the left-hand side (= the debit
side) of the accounts: bên nợ
One of the principles of accounting is that the debits recorded in a ledger should
equal or balance the credits in it.

credit ( abbreviation CR) an amount recorded on the right side of a company's financial
accounts, which shows a decrease in assets or an increase in debt: bên có
The accounting system automatically generates a credit to the account that was
debited.

debt noun /det/ the amount of money that is owed by a person, company, country, etc. and
that they usually have to pay interest on: món nợ
Companies become insolvent because they cannot pay their debts.

When applying for a loan, customers may be required to prove their ability to repay
the debt.
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 Etc. = et cetera /et’setrə/: and so on: và vân vân

tangible asset noun a physical asset whose value can be easily measured, such as cash,
property, goods, or machinery: tài sản hữu hình
The pension fund invests the savings of its members in tangible assets such as land
and buildings.

intangible asset (invisible asset) something that does not exist in a physical way, but which
has value for a business, such as a brand name: tài sản vô hình
A large chunk of the acquisition price will be allocated to intangible assets,
including goodwill.

balance sheet noun /ˈbælənsˌʃit/ a statement of the assets, liabilities, and capital of a
business or other organization at a particular point in time, detailing the balance of income
and expenditure over the preceding period bảng cân đối kế toán
It's a healthy company with a strong balance sheet.
defer verb /diˈfər/ (defers, deferring, deferred) put off (an action or event) to a later time;
postpone, delay: trì hoãn
They deferred the decision until February.
accrue verb /əˈkruː/ (accrues, accruing, accrued) (of sums of money or benefits) be
received by someone in regular or increasing amounts over time dồn lại, cộng gộp, tích
lũy
Financial benefits will accrue from restructuring.
accrued adjective
the accrued expenses chi phí phải trả
cost accounting noun the process of calculating and recording the detailed costs of
producing goods or providing services in order to help managers control and plan a
company’s work: kế toán chi phí

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 We implemented a cost accounting system for our factory, to help make better
financial decisions.
tax accounting = the branch of accounting that prepares financial information so that tax
can be calculated and aims to make sure that a company or person does not pay any more
tax than necessary kế toán thuế
auditing = officially examining the financial accounts of a company: kiểm toán
We have just had our accounts audited.
management accounting (also managerial accounting) noun the process of collecting,
analysing and presenting financial information about a company for managers to use in
order to make decisions about company organization, future strategy, etc: kế toán quản
trị
The management accounting team is involved in the annual budgetary and
forecasting processes.
creative accounting (also creative accountancy) noun recording a company’s financial
activities in a way that hides (che đậy, giấu) the true situation: kế toán “sáng tạo”, thủ
thuật trong kế toán
The benefits of the merger were exaggerated through creative accounting.
Reading 1: Google Inc. Balance sheet
cash and cash equivalents refers to the line item on the balance sheet that reports the value
of a company's assets that are cash or can be converted into cash immediately. Cash
equivalents include bank accounts and marketable securities, which are debt securities with
maturities of less than 90 days. Tiền mặt và tương đương tiền mặt
receivables noun /rɪˈsiːvəblz/ amounts owed by customers to a company at a particular
time and not yet paid: các khoản phải thu
Many small firms struggle with the problem of receivables that will never be paid
back.

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prepaid adjective /priːˈpeɪd/ if a product or service is prepaid, it has already been paid for:
trả trước
Each advertisement runs six times and is $350 prepaid.

current asset noun [ usually plural ] (also circulating asset) an asset such as cash, raw
materials, parts, or products that are still being made, which a company will use up or sell
during the same year: tài sản lưu động
The company's current asset level is up from $2.9 billion at the start of the year.

long-term assets noun assets that are not intended to be turned into cash or be consumed
within one year of the balance sheet date. Long-term assets include long-term investments,
property, plant, equipment, intangible assets, etc. tài sản dài hạn

shareholders' equity: net assets(also net worth); (also owner's equity) the total value of a
person's or company's assets after their total debt has been subtracted: vốn chủ sở hữu
net adjective (of money received from selling something) left after you have subtracted the
cost of what you are selling, and other expenses related to it: ròng

gross adjective /ɡrəʊs/ used to describe a total amount of money before tax, etc. is taken
off: gộp
The company posted gross earnings of $150.8 million.

goodwill (also good will) noun /ɡʊdˈwɪl/ the established reputation of a business regarded
as a quantifiable asset, e.g., as represented by the excess of the price paid at a takeover for
a company over its fair market value (giá trị thị trường vừa phải) thương hiệu

The goodwill is being sold together with the shop.

accounts payable noun (also UK creditors); (also US payables) the amounts in a
company's accounts that show money that it owes, for example to suppliers (= companies
that have sold them things): các khoản phải trả

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 Accounts payable were $676 million lower as of the middle of this year compared to
a year ago.

current liability noun [ usually plural ] payment that a company must make within 12
months: nợ ngắn hạn
If a company has current assets of $4 and current liabilities of $2, then its working
capital is $2.

long-term liability noun [ usually plural ] a debt that does not need to be paid for at least
a year: nợ dài hạn
Strict rules have been blamed for forcing life insurers to sell shares in order to fund
long-term liabilities

nominal adjective /ˈnɒm.ɪ.nəl/ in name or thought but not in fact or not as things really are:
danh nghĩa

She's the nominal head of our college - the real work is done by her deputy.

nominal value: giá trị danh nghĩa

par (also nominal price) the original value of a share, bond, etc. when it is first available
for sale: giá trị trên phiếu, giá trị danh nghĩa, mệnh giá

The Board of Directors authorized the designation of 1,000,000 shares of stock, with
a par value of $0.10 per share.

retained earnings noun /rɪˈteɪnd ‘ɜːnɪŋz / profits that have not been distributed to
shareholders lợi nhuận giữ lại
Retained earnings grew last year as per-share earnings of $13.74 far exceeded the
$2-a-year dividend rate.
Reading 2: Google Inc. Income statement

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Cash from operating activities usually refers to the first section of the statement of cash
flows. Cash from operating activities focuses on the cash inflows and outflows from a
company's main business activities of buying and selling merchandise, providing services,
etc.: tiền mặt từ hoạt động kinh doanh
Cash from Investing Activities is the section of a company's cash flow statement. ... that
displays how much money has been used in (or generated from) making investments during
a specific time period. Investing activities include purchases of long-term assets (such as
property, plant, and equipment): tiền mặt từ hoạt động đầu tư
Cash from Financing Activities is the net amount of funding a company generates in a
given time period used to finance its business. Finance activities include the issuance and
repayment of equity. tiền mặt từ hoạt động tài chính
depreciation noun /dɪˌpriːʃiˈeɪʃən/ the practice of spreading the cost of capital expenditure
over several years, especially in order to improve cash flow: khấu hao (tài sản hữu hình)
amortize verb / ˈæmərtaɪz/ gradually write off the initial cost of (an asset) trả dần, hoàn
dần, khấu hao
They want to amortize the tooling costs quickly.
amortization noun /æˌmɔːtaɪˈzeɪʃən/ hao mòn tài sản cố định vô hình
dividend noun /ˈdɪvədənd/ a sum of money paid regularly (typically quarterly) by a
company to its shareholders out of its profits (or reserves) cổ tức
The dividend will be payable on June 10 to shareholders of record on May 29.
proceeds noun [ plural ]/ˈprəʊsiːdz/ the amount of money received from an activity, event,
or the sale of assets: số tiền bán được
Most of the proceeds from the sale will be used to pay the retailer's debt.

cost of revenue: the total cost of producing and distributing of products and services of a
company: giá vốn

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net interest income: the excess revenue that is generated from the interest earned on assets
over the interest paid out on deposits: doanh thu ròng từ khoản (tiền) lãi

unusual expenses: expenses which are extraordinary or one-time in nature. The company
does not incur these expenses every period, but they may have a significant effect on profits
and cash flow: chi phí bất thường

operating expenses: expenses which include administration and advertising, while interest
and taxes are some of the non-operating expenses: chi phí từ hoạt động kinh doanh

Listening: Valuing assets

comprise verb /kəmˈprɑɪz/ to consist of or to be made up of: bao gồm

The Pacific Rim comprises countries bordering the Pacific, including the US,
Canada, Japan, China, and the Koreas.

worth adjective /wɜːθ/ having a particular value, especially in money: trị giá

Our house is worth £200,000

runway noun /ˈrʌn.weɪ/ a long, level piece of ground with a specially prepared smooth,
hard surface on which aircraft take off and land: đường băng

nature noun the type or main characteristic of something: bản chất

Motor-racing is by nature a dangerous sport.

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