Speaking. 1. Communication Situation:Calling a Financial Consultancy

1. Communication Situation: Calling a Financial Consultancy

a. Read the following telephone conversation between a company’s

managing director and a financial consultant. Find out the reason for

the call.

Brown: John Brown.

Berg:

Hello. My name is Anders Berg. I’m Managing Director of

Woodtech Ltd, a wood machinery manufacturer.

Brown: Oh, yes. How can I help you?

Berg:

Well, an associate in the industry recommended you. You

helped raise finance for Bill Wylde a few years ago.

Brown: Yes. That’s right.

Berg:

Well, Woodtech Ltd now wants to expand into new markets

with a new product. Up till now we have served specialists in

the wood industry but our new product is aimed at the small

manufacturer. What we need is finance.

Brown: Right! First of all, I’ll need some background information.

Can you let me have a copy of your balance sheet and profit

and loss figures for the past three years?

Berg:

Of course.

Brown: I’d also like a letter outlining your ideas and a cash flow fore-

cast for the new product.

Berg:

Fine.

Brown: If you let me have these by the beginning of next week, we can

arrange a meeting for the week after. That will give me enough

time to look through the figures.

Berg:

Good. Can I suggest a meeting on Monday 16th at 9 o’clock.

Brown: That’s fine. I look forward to receiving your letter and accounts

in the next few days.

Berg:

Berg:

I’ll post them first thing tomorrow. I look forward to meeting

you on Monday 16th.

Goodbye.

Brown: Goodbye.

b. Act out a similar conversation of your own, modifying the names

of people and companies; make sure you use financial and accounting

terms appropriately and preserve the italicized functional phrases.

2. Explain the metaphor “Accounting is a language of business”.

3. Describe the importance of accounting to managers, investors,

creditors, and government.

4. Explain the difference in the subject matter of managerial and fi-

nancial accounting.

5. Describe the difference in bookkeepers’ and accountants’ job

functions.

6. Characterize major types of financial reports.

7. Suppose you are to participate in a university seminar on account-

ing professional ethics. Get ready to give a brief account of American

corporate scandals involving accounting fraud.