Учебно-методическое пособие по обучению профессиональному общению. Коровина Н.А - 36 стр.

         Obligations Outstanding: unpaid or unmet obligations, usually                We will talk about retail trade business. This type of enterprise
debts.                                                                         purchases merchandise, sells those goods, pays its employees and its
      Collectible Receivables: goods sold for which the firm has not           suppliers, and employs an administrative staff.
been paid, but which it is reasonably sure of collecting.                             It may also move into new headquarters or expand into new re-
      Cash Flow: the predicted pattern of actual cash to be received           tail outlets. It must account for each activity. This is generally accom-
by a business.                                                                 plished by means of separate budgets which can be combined into a
                                                                               master budget.
        II. Find the answers in the text:                                             One of the activity budgets is the sales budget information about
        1. What does budgeting involve? What is its primary objective?         unit prices; the price of one item of each kind of merchandise sold, and
        2. What is the accounting period for the budget? When can a            the expected sales volume are the important entries for this budget.
budget be reviewed or changed?
        3. What is included in the financed forecast? What can a flexible                              TOPIC 13. BANKING
master budget be used for?
        4. What kinds of activities are included in a business involved in          Read the text below and write short headings (one or two
retail trade. For which of them would budget be prepared?                      words) for each paragraph.
        5. What are the important entries in the budget? What else must
be added if the business sells more than one item?                                   TEXT 1
        6. What items could be grouped to form a sales department in a
furniture store?                                                                                           Types of Bank
        7. When do sales figures have to be adjusted?                                 1 .........................................................
        8. In what way can the purchases budget be considered the ’mir-               Commercial or retail banks are businesses that trade in money.
ror image’ of the sale budget? What factors are involved in its prepara-       They receive and hold deposits, pay money according to customers'
tion?                                                                          instructions, lend money, offer investment advice, exchange foreign
                                                                               currencies, and so on. They make a profit from the difference (known
         TEXT                                                                  as a spread or a margin) between the interest rates they pay to lenders
       Budgeting involves setting financial goals and standards for an         or depositors and those they charge to borrowers. Banks also create
enterprise. The primary objective of the budget is to establish a finan-       credit, because the money they lend, from their deposits, is generally
cial framework for the operations of the business. The accounting pe-          spent (either on goods or services, or to settle debts), and in this way
riod for the budget is usually either the calendar year or the fiscal year.    transferred to another bank account – often by way of a bank transfer
       A generally accepted budgeting device is a flexible master              or a cheque (check) rather than the use of notes or coins – from where
budget. This budget foresees that management plans to operate the              it can be lent to another borrower, and so on. When lending money,
business at various levels of activity and that all the different activities   bankers have to find a balance between yield and risk, and between
of the enterprise are included in the financial forecast. Budgets for          liquidity and different maturities.
various sections of the company are gathered together into one overall                2.........................................................
budget. Then, as the business year progresses management can use the                  Merchant banks in Britain raise funds for industry on the vari-
budget as a control device, that permits monitoring of the company             ous financial markets, finance international trade, issue and underwrite
operations.                                                                    securities, deal with takeovers and mergers, and issue government

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