Accounting.

Vocabulary
INCOME AND EXPENDITURE
1. Complete the sentences with the phrases from the box.

SELL PRODUCTS OR SERVICES PAY RENT (ON PROPERTY)

PURCHASE RAW MATERIALS RECEIVE INTEREST ON
INVESTMENTS PAYMENT OF SALARIES BUYING MACHINERY

1. Because we don’t own our own land or building, we have to

____________________ every month.
2. The goal of most marketing campaigns is to ____________________ by letting
customers work about the benefits.
3. When the stock market does well, we ____________________ and the value of the
stocks we hold increases.
4. As we are a manufacturing company, it is necessary to ____________________ in
order to produce our goods.
5. The cost of ____________________ to produce our products went up las year.
6. Our expenditure was high las month as we had more staff and the total amount for
____________________ was higher than normal.

THE PROFIT AND LOSS ACCOUNT AND THE

BALANCE SHEET
1. Complete the sentences. Underline the correct word or phrase.

1. The value of all sales over a period of time is called the TURNOVER /
RESERVES.
2. The companies we owe money to are our DEBTORS / CREDITORS.
3. The cost of running the company are called OVERDRAFT / EXPENSES.
4. The direct costs of manufacturing or buying items to sell are called the COST OF
SALES / OVERHEAD COSTS.
5. The turnover minus the sales is the NET PROFIT / GROSS PROFIT.
6. CREDITORS / DEBTORS are companies which owe you money.
7. The gross profit minus expenses and taxes is the NET PROFIT / OVERHEADS.
8. EXPENSES / RESERVES are sums of money that are kept to be used in the future.
9. Money that is owed to the bank is an OVERDRAFT / an OVERHEAD.

TERMS TO DESCRIBE CASH FLOW

1. Look at the mind map for cash and match the words with definitions 1-4.
1. Being short on funds
2. Money going out
3. Movement of money
4. A very successful product
PROBLEM________

OUTFLOW_______ COW______

CASH
CRISIS_______ FLOW______

PAYMENT_______
SHORTAGE______

2. Use the word CASH in exercise 1 to help you complete the sentences.

1. I am really glad that I invested in WFTY stocks, they really have been a
cash___________ and have provided me with a good income over the last few
years.
2. Companies often have a cash___________ problem at the end of the month if
they are not paid on time.
3. We are really facing a cash ___________ , as we cannot fill these orders without
buying new equipment and we cannot buy new equipment if we do not fill these
orders.
4. We would prefer a cash ___________ for the delivery as we do not have
banking facilities in your country.
5. We need to maintain a cash ___________ into, as well as out of, the company if
we are going to be successful.
6. An increase in operating and investment activities means that we have had a
higher than usual cash ___________ this month.