Debt (bonds and loans) expenses retained earnings

 

revenue	выручка, доход от реализации, доход от продаж
operating expenses	текущие издержки, операционные расходы
dividends	дивиденды
retained earnings	нераспределенная прибыль, удержанная прибыль
profit and loss account (BrE) Syn. income statement (AmE)	отчет о прибылях и убытках, отчет о результатах хозяйственной деятельности
financial statement	финансовый отчет
balance sheet	баланс компании

Vocabulary Practice

Translate the sentences from English into Russian. Pay attention to the underlined words.

1. An employee's salary and any bonuses given are included in a company's expenses and therefore are tax deductible.

2. With unemployment remaining stubbornly high across the rich world and big companies still blaming "unprecedented uncertainty" for their reluctance to dip into record profits to bet on risky new ideas, people with ideas are increasingly asking: why not to launch my own start-up?

3. A company is merely a legal entity; if it is taxed, it must pass the levy on to its shareholders (in the form of lower dividends), to its workers(in the form of lower wages) or to its customers(in the form of higher prices).

4. Retained earnings are what is left after dividends are paid. This money is either used for future business ventures or invested back into the company for growth purposes.

5. All publicly traded companies and non-profit organizations must include operating expenses information in their annual reports. Such information is typically illustrated with financial charts that compare operating expenses for the current calendar year to that of past years.

6. Every company issues their financial statement at the end of each fiscal or financial year. These documents provide a summary of all revenue and expenses incurred by the business during this period. The audience for the financial statements includes company officers, investors, creditors, and customers.

7. A profit and loss account isn't only used to help the owner of a company run a tight financial ship, it can also be an essential tool for investors to gain an idea of how well a company is able to minimize its expenses and maximize its profits. If a company has a profit and loss account that bodes well for future earnings, investors may find good reason to jump aboard.

8. Basically, the вalance sheet provides very helpful information for any investor or tax authority that wishes to assess the financial success of the business that it pertains to.

 

 

2.Translate the text. Speak about the correlation between the terms "deficit" and "debt" in your own words.

 

Deficit vs. Debt

When discussing government or corporate finances the terms of deficit and debt get thrown around a lot. While they are closely related they are two separate concepts.

The deficit typically refers to the current financial period and relates to a shortfall in revenues when compared to expenses. In a government context, more is being paid out than is being collected in taxes. Any shortfall has to be funded somehow, so an organization will pay this deficit out of assets it already has or by incurring more debt.

The debt typically refers to the total outstanding liabilities of a government, or corporation. Most governments are in some form of debt position, owing money to a combination of other governments and private holders of items like treasury bills or government bonds. In a government context, the debt is usually an accumulation of running a deficit for many years. If you have a shortfall every year when comparing how much you take in to how much you pay out, this consistent deficit will add to your debt every year.

Being in a debt position or incurring a deficit is not necessarily a bad thing, governments and organizations sometimes need to spend more in a current period than they have on hand. The issue comes from consistently being in a deficit position and building up your debt to the point where your interest payments become unsustainable. As the financial crisis has played out, numerous countries have needed bail outs and support because they could not even pay the interest on their debt. So as you can see above, deficit vs. debt really becomes deficit and debt as one leads to another.

 

by incurring more debt	(зд.) за счет новых кредитов
outstanding liabilities	неуплаченные долги, непогашенные финансовые обязательства
treasury bills	казначейские векселя
bail out	экстренная финансовая помощь