Topic 36 · Accounting, Taxes and Corporate Finance

Accounting, Taxes and Corporate Finance. Part 1: Company finance basics.

a business

a company

an owner

a shareholder

capital

a budget

revenue

an expense

profit

a loss

cash

a bank account

debit

credit

a financial year

a fiscal year

a VAT return

Useful phrases.

A company needs a budget to plan its income and expenses.

The business made a profit because its revenue was higher than its costs.

It is important to keep enough cash for everyday payments.

Accounting, Taxes and Corporate Finance. Part 2: Accounting documents and records.

accounting

an accountant

a bookkeeper

an invoice

a receipt

a purchase order

a delivery note

a payment

a due date

an amount

an account number

a record

to issue

to check

a ledger

depreciation

double-entry bookkeeping

an income statement

a profit and loss statement

Useful phrases.

The accountant checks every invoice before the company pays it.

Please pay the invoice by the due date.

A receipt proves that a payment was made.

Accounting, Taxes and Corporate Finance. Part 3: Income, costs and profit.

income

sales

turnover

a profit margin

fixed costs

variable costs

rent

a wage

material

to earn

to spend

to save

a financial plan

payroll

a payslip

sales tax

Useful phrases.

Rent and salaries are often fixed costs for a company.

The company tries to reduce waste and save money on materials.

Higher sales do not always mean higher profit.

Accounting, Taxes and Corporate Finance. Part 4: Taxes and legal payments.

tax

VAT (value-added tax; BrE/EU)

income tax

corporate income tax

corporation tax

a tax return

a tax office

to declare

to pay tax

a deadline

a tax rate

a deduction

a tax number

a receipt

a record

gross

net

Useful phrases.

Businesses must keep records for their tax return.

VAT is added to the price of many goods and services.

The company must meet the tax deadline.

Accounting, Taxes and Corporate Finance. Part 5: Assets, finance and reports.

an asset

a liability

a balance sheet

a profit and loss statement

cash flow

a loan

interest

an investment

equipment

property

debt

to finance

an annual report

an audit

accounts payable

accounts receivable

Useful phrases.

A loan can help a company buy new equipment.

The balance sheet shows what a company owns and what it owes.

Good cash flow helps a business pay its bills on time.