Business English - Essential Financial Vocabulary | Vicky Nedelcheva | Skillshare

Business English - Essential Financial Vocabulary

Vicky Nedelcheva, Accountant

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9 Lessons (27m) View My Notes
    • 1. Welcome to the course

      1:00
    • 2. Tips

      1:35
    • 3. Asset, liability, capital, share capital and statement of financial position

      3:07
    • 4. Useful life and depreciation

      5:14
    • 5. Revenue and expense

      5:21
    • 6. Cash flow

      2:33
    • 7. Expenditure

      2:21
    • 8. Share

      2:40
    • 9. Dividend

      3:07
18 students are watching this class

About This Class

The course is designed to provide you with a strong foundation of essential financial English vocabulary. You’ll be able to fully and confidently express yourself in a financial context.

In this series of videos, I explain the most important financial terms to all of you whose native language is not English. In this way, I would like to help you to gain the skills you need to communicate confidently in a financial context whether at a university or in a multinational company

Every video lesson includes two parts:

in the first part, I explain the new terms simply and shortly and

in the second part, you have the opportunity to exercise yourself. You are given a few sentences with blank spaces. What you should do is just to fill out the blank spaces with the words you’ve learned in the first part of the video.

Transcripts

1. Welcome to the course: This course is designed to provide you with a strong foundation of essential financial English vocabulary. You'll be able to fully and confidently express yourself in the financial contact. In this serious of videos, I explained the most important financial terms toe overview, whose native language is not English. In this way, I would like to help you to get the skills you need to communicate confidently in the financial context, whether at the university are in a multinational company. The course consists of some tips on how to work effectively explanation of the turns on exercises. 2. Tips: I'm delighted to share with you a few tips on how to or impacted. The 1st 1 is Mike Little steps every day, and you will achieve a lot. Watch one of the videos per day and do this on a regular basis. It is not necessary to get a ton of information for short periods of time. The 2nd 1 is repeating its a good practice. You can watch one video a few times until you feel prepared for the next step. That's why my videos are short. The third type is exercise yourself as often as you can. Exercises are the key to confidence. As you can see at the end of each video, there quizzes to challenge your knowledge and last but not least, learn with pleasure. When you force yourself towards something, you don't get a good result. Concentrate and come yourself, being a good state of mind and old with pleasure 3. Asset, liability, capital, share capital and statement of financial position: the 1st 5 financial terms that we're going to clarify our asset liability capital share capital and statement of financial position as it is an item that the business OSCE our controls. Liability is amount old by the business. So third parties Capital East amount put into the business by cell trader Share capital is on amount put into a limited company by its shareholders and the statement of financial position presence The financial position off, um, entity. At the given moment, it consists of two men. Compliments, assets, liabilities and capital. Let's exercise the business. He uses all blank space in its operating activities, expecting a future benefit called profit. The business uses all assets in its operating activities, expecting a future benefit called profit blank space. No awful at the balance sheet shows how much of business goals, where it goes it and how the amount is Help within the business Statement of financial position, known over with the balance sheet, shows how much business, both why it chose it and how the amount is held within the business. Blank space and blank space express the amount of all assets funded by owners Capital and Share Capital Express the amount of our assets funded by owners Blank's base our obligations and express the amount off all ofits funded by creditors. Liabilities are obligations and express the amount of our profits funded by creditors. 4. Useful life and depreciation : Now we're going to talk about current asset longer and acid useful life. The appreciation straight line, matter of depreciation and reducing balance mattered of depreciation. Current asset is an asset that the business intends to keep less than 12 months. No current asset is an asset that the business intends to keep More than 12 months is full lap is the period over which one among current as it is being used in the business depreciation is the process of charging of the cost of a non current asset over its useful life. Straight line method of depreciation is an approach under which the company charges on equal month of depreciation each year. Reducing balance method of depreciation is an approach on the which of the company charges more depreciation in the early years of anoxic drive, with a progressively lower church in each next year and now let's exercise. If the cost of a known current asset is $10,000 on its blank space is expected to last five years, it would be sensible to reflect the fact that the non current assets is being used in the business over five years by charging on expense each year off $2000. If the cost of a non current assets is $10,000 it's youthful, life is expected to last five years. It would be sensible to reflect the fact that the non current, as it is being used in the business over five years by charging an expense each year off $2000 blank space, are crucial to the business because they can be used to fund day to day business operations . Current outfits are crucial to the business because they can be used to fund day to day business operations. Blank space, apply the matching concept by charging the cost of the house it to the state, no profit and loss as to being used up. At the same time, the volume that acid is being produced with the amount of the costs charged depreciation applies the matching concept by charging the cost of the assets to the statement profited laws as it is being used up. At the same time, the value of the asset is being produced with the amount of the costs charged under blank space, the depreciation charge each year is a fixed percentage. Off the Net book at the end of the previous year on the reducing balance method of depreciation, the depreciation charge each year is a fixed percentage off the Net book at the end of the previous year. The business allocates the cost off blank space over the number of years for which then we'll be in use. The business allocates the cost of non current assets over the number of years for which they will be in use on their blank space. The depreciation charge each year is calculated as we subtract the residual value from the original value off the non current assets, and we divide the result by the estimated useful life under straight line method of depreciation. The depreciation charge each year is calculated as we subtract the residual value from the original of all of the non current assets, and we divide the result by the estimated useful life 5. Revenue and expense: Let's learn something more about where and when you expense. Gross profit. Net profit los and stagnant of profit and close revenue is amount that the company URLs one selling goods or providing services toe its customers. Expense is a decrease in the net assets of the entity over the cutting period, except for such decreases off by the distribution pretty owners. Gross profit is the sales revenue a company receives after deducting the cost associated with making and selling its products or the cost associate ID with providing its services. Net profit is gross profit minus fixed costs or period costs, which include rent, insurance, employeessalaries, utilities and depreciation. All those is an excessive expenses over revenues. Stead Month of profit and loss is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period and shows the company's ability to generate sales, managed expenses and create profits. And now let's exercise Blank space is connected to the matching principal off accounting, which posts revenue when it is earned and expenses when they're incurred to produce revenue . Statement of profit and loss is connected to matching principal off accounting, which puts revenue when it is earned and expenses when they're incur to produce a revenue under the accrual basis of accounting. A blank space is reported on the statement of profit and loss in the period when the revenues is earned, not the period when the cash is received. Under the agro basis of accounting. A revenue is reported on the standing of profit and loss in the period when the revenue is earned, not the period when the cash is received. Many people call blank space the bottom line because it appears at the bottom of the standoff. Profit and loss. After all, the cost of goods, salt and operating expenses have been subtracted out. Many people call loss the bottom line because it appears at the bottom of the signal of profit and loss. After all, the cost of good short and operating expenses have been substantiated out. Other the accrual basis of accounting um blank space is recognized once it is incurred, no matter when the payment is made under the agro basis of accounting on expense is recognized once it is incurred, no matter when the payment is made. If the sales are rising slowly, but the fixed costs are increasing more rapidly. The residents will be a drop in land space if the sales are rising slowly, but the fixed costs are increasing more rapidly. The result will be a drop in net profit. Blank space doesn't include items like interest paid on love or that's taxes, depreciation, one time charges or credits. Growth Profit doesn't include items like interest paid on long for debts, taxes, depreciation. One time charges are credits. 6. Cash flow: Let's talk about cash receipt, cash payment, cash flow and cash. Both state month case receipt is money that an entity receives from any external source, such as customers, investors or a bank. Cash payment is money that the 90 place to suppliers, employees and creditors. Cash flow is the total amount of OH, money generated and used during the certain period of time and the case. Full statement is a summary of all cash receipts and cash payments during a certain period of time. Let's exercise the Betty Cage book records Okay, ish receipts and bank space off Ruth Cash the Better Cage Book records Okay, ish receipts and cash payments off both cash The blank space measures. However. Business majors. It's cash to pay obligations and fund its operating expenses. The cash for statement measures how our business managers it's cash to pay its obligations and fund its operating experiences. Business ability to create value for shareholders is determined by its ability to generate positive blank space. A business ability to create value for shareholders is determined by its ability to generate positive cash flows. The cash book is a book of prime entry, which lists all blank space and cash payments in and out of the bank. The cash book is a book of prime entry, which lists all cash receipts and cash payments in and out of the bank. 7. Expenditure: capital expenditure, revenue expenditure, margin growth, profit and mark up. These are the for terms that we're going to clarify. Capital expenditure is every purchase of on acid revenue expanded? Jim is every payment of expenses. Imagine gross profit is gross profit expressed as a percentage of the selling price and mark up. Is gross profit expressed as a percentage of the cost? Let's exercise blank space. It's a metric used to assess a company's financial help and business model. Margin growth profit is a metric used to assess the company's financial help and business model. When the business makes a blank space, the amount appears on the statement a financial position. When the business makes a capital expenditure, the amount appears on the statement of financial position, the amount by which the cost of a product is increased. In orderto they arrived, the selling price is caught long space, the amount by which the cost of a product is increased in orderto direct selling price is called mark up. When the business makes a blank space, the amount of peers on the statement of profit and close while it business makes a revenue expanded job. The amount appears on the statement of profit and loss 8. Share: we're going to clarify the following terms. Share say sure, no me no value at the shop. Premium share is one of the equal parts that the ownership of the company is divided indoor and that can be bought. My members of the public share issue is an occasion when a company makes it shares a sailboat for people to buy. Nominal value is the amount printed on the shells and stayed in the institutes of the company. Share premium is the extra in cases when shares are issued at the press higher than the nominal value, it's them toe exercise. Blank's based can also be referred toe as the face value. No, no value can also be referred to as the face value. A lot of platforms let people find, buy and sell blank space. All I'm in just a few easy steps. A lot of blood forms let people find, buy and sell shares online in just a few easy steps. Blank space. It's a capital reserve and it can be distributed as diffident. Share premium is a capital reserve and it can be distributed as dividend blank. Space is a good way for company toe final. Its expansion activities share issue is a good way for company toe. Find out its expansion activities 9. Dividend: we're going to take a closer look at the following financial words. Drawing give You don't retained earnings and reserve drawing Eastern amount that the sultry that takes out of the company to use for personal expenses. Dividend is a part of the profit of business that it's bet to its shareholders. Retained earnings is down mark off the profit left over for the business after it has paid out Diffidence toe. Its shareholders reserve is on the mount, kept by a business for particular use, and now and it's exercise Blank space can be used as cash payments as shares of stock or other property, though CART evidence are the most common. De evidence can be used as cash payments as shares of stock or other property, though can't evidence are the most common. The revenue blank space can be distributed to shareholders as dividend, but the capital blank space can be paid to shareholders by way of dividend. The revenue reserve can be distributed to shareholders as a dividend, but in the capital, reserve can't be paid to shareholders by way of diffident. A growth focused company may prefer to use the blank space Onley toe finals expansion activities. A growth focused company may prefer to use the retained earnings on in tow. Final expansion activities as a sole trader makes profits and takes blank space. The capital changes from year to year as a thought trader makes profits and text drawings the capital changes from year to year.