THE

BUSINESS MAN
Finance & Accounting

REENA METILDA ASIS

CEFR: B2 - C1
Introduction - Finance & Accounting

Learning Objectives

1. What is an

income statement,
cash flow statement, and
balance sheet

2. To teach the concept of an income statement

and how to analyze it using YPhone Company's
financial data.

Duration: 1 hour 30 mins

Language Level : B2

Accounts & Finance Knowledge - Basic

 Welcome to Day 1.

Introduction - Finance & Accounting

Inferencial Listening & Reading Practice:

Financial statements are enormously important

reports that companies and other organisations
produce. There are three really critical financial
statements to understand, an organisation.

One is its balance sheet, another is its cash flow

statement, and the third one is the income
statement, or the profit and loss account,
or the statement of profit or loss.

When we've begun to build up a bit of

understanding about them, a major stumbling
block for a lot of people is accruals and
accruals accounting.

The idea is to match income and expenditure

appropriately, regardless the timing of the cash
flows that the income and expenditure relate to.

Learner Centred Development 1

 Vocabulary Practice:

1) What is the synonym for "enormously" in the

context of financial statements?

A) Slightly
B) Significantly
C) Occasionally
D) Rarely
E) Indifferently

2) In finance, "accruals" refers to:

A) Sudden increases in cash flow

B) Delayed recognition of income or expenses
C) Direct transfer of funds between accounts
D) Swift accounting adjustments
E) Reductions in financial liabilities

3) Which term is another word for "statement" in

financial contexts?

A) Opinion
B) Assertion
C) Disclosure
D) Expression
E) Declaration

Learner Centred Development 2

 Match the following %

A) Slightly (50-70%)
B) Significantly (0-10%)
C) Occasionally (70-90%)
D) Rarely (10-30%)
E) Indifferently (30-50%)

Fill in the correct word

A) Opinion
B) Assertion
C) Disclosure
D) Expression
E) Declaration
1) In my ........................................., the company's stock will
perform well in the next quarter.

2) The employee's facial .......................................... suggested

frustration with the new policy.

3) The president's ......................................of a state of

emergency mobilized resources to address the natural
disaster.

4) The CEO's ...................................... that the new product

will revolutionize the industry has garnered attention
from investors.

Learner Centred Development 3

 Use of English : (Tick the right option)

1) What are the three critical financial statements

for an organization?
A) Balance sheet, tax statement, and expense report
B) Income statement, cash flow statement, and
balance sheet
C) Profit and loss account, cash flow statement, and
income summary
D) Budget report, income statement, and balance
sheet
E) Cash flow statement, budget report, and expense
summary

2) Accruals accounting aims to:

A) Align income and expenditure with cash flow

timing
B) Ignore income and expenditure timing altogether
C) Prioritize cash flow over income and expenditure
matching
D) Only consider cash transactions in financial
reporting
E) Record income and expenses only when cash is
received or paid out

Learner Centred Development 4

3) Which financial statement provides information
about an organization's short-term and long-term
financial health?

A) Income statement
B) Cash flow statement
C) Balance sheet
D) Statement of profit or loss
E) Budget report

4) Accruals accounting matches income and

expenditure:

A) Based on the timing of cash flows

B) Without regard to cash flows
C) Solely dependent on cash transactions
D) In accordance with budget forecasts
E) Only in the absence of cash transactions

Learner Centred Development 5

 5) What is the primary purpose of financial
statements?

A) To determine an organization's marketing strategy

B) To provide a snapshot of an organization's cash
reserves
C) To evaluate employee performance
D) To assess an organization's financial performance
and position
E) To outline the organization's social responsibility
initiatives

Speaking Activity :

Case Study: Financial Analysis of YPhone Company

Background:
YPhone Company is a retail business specializing in
selling electronics and gadgets. As part of a
financial analysis project, you have been tasked
with examining the company's income statement
to understand its financial performance over the
past year.

Learner Centred Development 6

 Analysis:

Total Revenue: $1,250,000

Total Expenses: $1,350,000
Net Income: ($100,000) (Negative indicates a loss)

1) In your opinion, what factors might have

contributed to YPhone’s Company's net loss of
$100,000 for the year?
2) Do you believe that XYZ Company's sales of
electronics were sufficient to sustain its operations, or
do you think diversifying its revenue streams would
have been beneficial?

Learner Centred Development

7