Página 7 - English for Accounting Unit 2 Financial statements and ratios

18 UNIT 2 Financial statements and ratios
We often make comparisons when talking about financial statements. Look again at the
Statement of Earnings on page 15 and find the figures for the items below. Which sentences (a–h)
can be used to describe and compare the figures?
1 Net earnings 5 Total revenues
2 Interest and financial charges 6 Dividends declared per share
3 Basic earnings per share (2005 and 2006) 7 Other costs and expenses
4 Earnings before income taxes and accounting changes 8 Sales of services
Write definitions for the following terms:
a Working Capital
b Return on Assets
c Debt/Asset Ratio
Now listen to an accountant explaining ratio analysis to some managers in her company and
check your answers.
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a It’s better than last year. d It’s not as low as two
years ago.
e Slightly more this year.
f A lot more this year.
g It’s virtually the same.
h It’s exactly the same.
c There’s quite a drop from
2005 to 2006.
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b It’s gone down
since last year.
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AUDIO
Working
capital =