Angielski kartkówka maj

recession

a decline on business acitvity lasting several months - officially, two quaters or more

subprime

adjective describing a loan offered to a borrower with poor credit rating

credit crunch

a huge reduction in the amount of credit available for banks to lend

default

failure to repay a loan

go bankrupt

to become insolvent - unable to meet pay debts

securitization

pooling (grouping together) financial assets which produce a cash flow, converting them into securities and selling them to investors, in order to get liquidity

bubble

rapidly rising prices in a particular sector, followed by a rapid collapse

prime rate

the interest rate that commercial banks charge their most creditworthy borrowers

deregulation

the removal of many government controls from an industry or sector

write off

to cancel a worthless asset or a bad debt from an industry

down payment

an amount of money that you pay at the time that you buy something but is only a part of the total cost of that thing

bailout

financial help given to institution eg bank

property ladder

a series of stages in owning houses in which you buy a small house or apartment first and then buy a bigger or more expensive house when you have enough money:

parcel up

to wrap something and make it into a parcel

mortgage-backed securities

is a type of asset-backed security that is secured by a mortgage or collection of mortgages

collaterized debt obligations

a debt security collaterlized by a number of debt obligations including loans and bonds of different credit quality and maturity

repossession

taking back of sth due to debt

revenue

=income, turnover, sales, the top line

cost of goods sold

(=direct costs) includes manufacturing costs, salaries of manual (=blue-collar) workers, etc

operating expences

costs resulting from the day to day activities of the business

non-operating income

includes profits from investments in other companies

EBITDA

stands for Earnings Before Interest Tax, Depreciation and Amortization

Earnings

the bottom line/profit

Depreciation

Depreciation can refer to the loss in value of a tangible asset (eg a vehicle)

Amortization

refers to the loss in value of an intangible asset (eg the purchase of a licence or trademark). This loss over time is treaded as a cost and written off (=subtracted from the profit) over several years

interest

refers to money paid to the bank for loans (or recieved from the bank for cash balances)

dividends

money paid to shareholders

retained profit

is transferred to the Balance Sheet, where it joins the amounts from previous years

accounts receivable

the amount owed to the business by customers (creditors)

inventory

the value of raw materials and stock

current assets

may also include 'marketable securities' (= shares intended for disposal within one year)

fixtures

part of a building that cannot be moved, such as lights

fixed assets

may also include long-term financial investments

intangible assets

include patents, trademarks, 'goodwill' (reputation, contacts and expertise of companies that have been bought)

bank debt

(= loan capital) also includes any overdraft (=temporary negative Balance)

accounts payable

is the money owed to suppliers

accrued items

are those where an expence has been incurred but the money is not yet paid. Accrued salaries typically includes future bonuses

provisions

can appear under current liabilities. These are amounts set aside for anticipated one-time payments that are not part of regular operations - perhaps a lawsuit or a compensation package for employees being laid off

mortgage

long-term bank loan to buy a property

share capital

(=common stock, AmE) amount raised at initial flotation on the stock market

profit and loss account

(=income statement) summarizes business activity over a period of time.

balance sheet

reports the company's finacial condition on a specific date. The basic equation that has to Balance is: assets=liabilities +shareholders equity

asset

anything of value owned by a business

liability

any amount owed to a creditor

shareholders' equity

(=owners' equity) is what remains from the assets after all creditors have theoretically been paid.

cash flow statement

it shows the real cash that is available to keep the business running day to day

trial balance

summary of the ledger information to check whether the figures are accurate

cost centres

discrete business units where budgets are spent

variance analysis

comparing planned costs with actual costs

profit centres

units where profits are generated

variable cost

costs which increase on proportion to any rise in output

direct cost

costs which can be indetified with one particular product

fixed costs

costs which stay the same at all levels of output in the short term

indirect costs

costs which result from the whole business not any particular products

operating costs

costs resulting from the day-to-day activities of the business

capital expenditure

the costs of buying or upgrading physical assets like buildings and machinery, often referred to in business as capex

marginal costs

the costs of increasing output by one more unit

leverage

the extent to which a firm relies on debt financing rather than equity financing

debt financing

money raised has to be paid back to outside creditors (issuing bonds, bank loan/overdraft, trade credits)

equity financing

money raised comes directly or indirectly from the owners of the business (issuing shares, reinvested earnings, sale of assets)

preparation of accounts

ledger, invoices, trial balance

profit and loss account (co)

EBITDA, costs of goods sold, operating expences

Balance sheet (co)

accounts payable, current assets, shareholders' equity

principal

amount raised by issuing the bonds