Vocabulary

Use your dictionary to look up any new words.

1.Write the following words in the correct column.

2.Combine a word in A with a word in B to form a suitable noun phrase

E.g. financial manager

A B

1) financial (3) 1) cash

2) business 2) management (2)

3) credit 3) accountant

4) excess 4) activity

5) cash 5) challenge

6) equity 6) business

7) top 7) manager

8) good 8) securities

9) small 9) statement

10) careful 10) life

11) essential 11) strength

12) entire 12) balance

13) accounting 13) policy

14) matters

Reading

1.Read text 6 and think of the suitable title.

TEXT 6

The financial manager’s task include the development, application, and monitoring of policies and decisions regarding such business activities as:

· Creating and evaluating credit policies for customers

· Investing excess cash balances

· Acquiring another company

· Issuing additional equity securities

· Spinning-off a subsidiary

A financial manager for a business is the doctor who interprets the report and makes recommendations to the patient regarding changes that would improve health. Financial managers use the data prepared by the accountants and make recommendations to top management regarding strategies for improving the financial strength of the firm.

A manager cannot be optimally effective at finance without understanding accounting. Similarly, a good accountant needs to understand finance. Accounting and finance, finance and accounting – the two go together like bread and butter.

As you may remember, financing a small business is a difficult but critical function if a firm expects to survive those important first five years. The simple reality is, the need for careful financial management is an essential ongoing challenge a business of any size must face throughout its entire life.

All financial managers functions depend greatly on the information provided by the accounting statements such as:

2.Comprehension check.

Here are some answers about financial manager’s work. Write the questions.

a) What ___________________________________________________________?

The major task of financial manager is the development, application and monitoring of policies and decisions of a business.

b) Who ____________________________________________________________?

Accountants collect and choose data for financial managers.

c) Whom ___________________________________________________________?

Financial managers suggest the top management ways of improving the financial standing of the firm.

d) In what case ______________________________________________________?

Without understanding accounting a manager cannot be effective at finance.

e) What ____________________________________________________________?

Accounting statements.