THE LANGUAGE OF BUSINESS REPORTING Zhejiang University of

THE LANGUAGE OF BUSINESS REPORTING Zhejiang University of Finance and Economics Dong Fang College Toriano Cook

Finance and Accounting

Vocabulary of Accounting balance sheet: a report of a company's value; how much is the company worth? (how much money it has and how much it has lost) asset: anything that can be used as money tangible asset: cash, buildings, property (fixed assets) intangible asset: share in the stock market

Vocabulary of Accounting income: all money made by a company gross income revenue profit: the amount of money earned by a company, after paying debt and other expenses net income

Vocabulary of Accounting debt: money a company owes liability: debt; money a company owes short-term liability: debt that must be paid soon, within one year long-term liability: debt that can be paid after a longer time

Vocabulary of Accounting pretax: money made before government taxes pretax income pretax profit margin: the amount of income that is profit cost to make: $2. 00 / income: $2. 10 = NO GOOD! cost to make: $2. 00 / income: $8. 50 = VERY GOOD! loss: negative profit production costs: $10, 500. 00 / income: $900. 00 make a loss / take a loss / run at a loss

“We’re in the red !!!” “In the red” means when a company / business is running at a loss or losing money Production costs, expenses and taxes this year were around $7, 000, yet we were only able to net an income of $6, 500, 000. We’re running at about $500, 000 in the red! To show debt, expenses or loss is usually reported on a balance sheet in red. A company is in the black or in the green if it is making money.

Accounting Balance Sheet

Let’s Practice Using Vocabulary

Accounting Reports Many types of companies use reports to show the financial status of a business. The most common way is using diagrams, charts and graphs. It is important to know how to read, make, understand present the data on a chart, diagram or graph.

Single Line Graph

Multiple Line Graph

Bar Graph

Pie Chart

Bar Chart

Flow Chart

Bubble Diagram

Analyzing A Graph

Reporting A Graph There was a sharp decrease in sales to a year low from January to February. After sales improved February to March, there was a drop in April. From April to May there was a slight rise in sales. After an August slump, slump sales began to steadily climb through the end of the year, reaching an almost year end high near 350 units sold.

Describing “Financial Trends” increase decrease maintain raise cut keep step up drop stay at expand go down reach a peak improve decline remain stable rise fall grow

What financial trends do you see?

In January, gold sales ____ about 200 million dirhams (Dhs) per month. In February they ____ to 220 million Dhs, ____ to a peak of 350 Dhs in March. Over the next four months, sales ____ steadily, reaching ____ of 120 Dhs in July. In August, there was a ____ increase. Sales almost ____, rising ____ 120 million Dhs in July to 210 million in August. This was followed by a ____ in September to 120 million Dhs. a low point declined drop from increased slightly rising sharply recovered sudden remained

In January, gold Sales remained about 200 million dirhams (Dhs) per month. In February they increased slightly to 220 million Dhs, rising sharply to a peak of 350 Dhs in March. Over the next four months, sales declined steadily, reaching a low point of 120 Dhs in July. In August, there was a sudden increase. Sales almost doubled, doubled rising from 120 million Dhs in July to 210 million in August. This was followed by a drop in September to 120 million Dhs.

Making Comparisons “Sales of the i. Phone was again better than Samsung Galaxy phones this year. ” When giving a financial report, you may make comparisons (to other products, sales record, …) Using comparatives and superlatives helps to show compare.

Making Comparisons Adjectives with one syllable form: cheaper the cheapest larger the largest colder the coldest taller the tallest Except: good – better - the best bad – worse – the worst

Making Comparisons Some adjectives with two syllables form: pretty prettier the prettiest happy happier the happiest funny funnier the funniest (usually if the last letter is ‘y’) Other adjectives with two syllables form: common handsome unique more common more handsome more unique the most common the most handsome the most unique

Making Comparisons All adjectives with three or more syllables form: attractive more attractive the most attractive profitable more profitable the most profitable imaginative more imaginative the most imaginative expensive more expensive the most expensive

Complete The Form Adjective accurate certain convenient correct dangerous happy likely modern new possible probable up-to-date Comparative Superlative

Complete The Form Adjective Comparative Superlative accurate more accurate the most accurate certain more certain the most certain convenient more convenient the most convenient correct more correct the most correct dangerous more dangerous the most dangerous happy happier the happiest likely likelier the likeliest modern more modern the most modern newer the newest possible more possible the most possible probable more probable the most probable up-to-date more up-to-date the most up-to-date

Survey In groups, you will decide on a survey question to ask your classmates. Ask each classmate the question and record their answers. You will then present your data to the rest of the class, using any kind of visual you choose (graph, chart… ) Examples: What is your favorite color? What is your favorite holiday?