2. Description of the lesson: 1.Lead-in 2.Revising old knowledge 3.Presentation of the new lesson 4.Practice 5.Ending with homework and Round-up Title of the lesson:

3. The Language of Accounting Aims of the lesson: 1. To acquire knowledge to understand the language of accounting. 2. To learn useful vocabulary and train communication skills after in a role play. 3. To practise preparing income statements and describing the information in them.

4. How can income statements cause confusion to non- accountants?

5. Useful vocabulary:  General and administrative costs – the amounts paid for basic business operations;  Insurance premiums – a fee that is paid for financial protection;  Utilities – conveniences like water, gas, and electricity.

6. How can income statements cause confusion to non- accountants?

7. TEAM A A furniture company produces tables and chairs in Sofia. During last year the company has obtained revenues for sales in order of 3.000,00 €. The costs of goods sold by the company were 1.500,00 €. The fixed expenses during the year were 600,00 € and the operating costs 450,00 €. Exercise 1: Please fill in the income statement table below with the information given. Use your textbook for help! Income Statement Year ended Sales Revenue€___________________ Cost of Goods Sold(€___________________) Gross Margin€___________________ Operating Costs(€___________________) Margin€___________________ Fixed Expenses(€___________________) Earnings€___________________

8. With a partner, act out a role-play to underline the misunderstandings in income statements to non- accountants: Student A (Accountant): Please use the information above to present the manager of your company (student B) a brief income statement report. Student B (Manager): Please use the information given in the income statement by student A to ask questions about the accounting terms which could create confusions. Exercise 2:

9. Income Statement Year ended Sales Revenue€___________________ Cost of Goods Sold(€___________________) Gross Margin€___________________ Operating Costs(€___________________) Margin€___________________ Fixed Expenses(€___________________) Earnings€___________________ TEAM B An automobile company produces cars and trucks in Europe. During last year the company has sold cars for 400.000,00 € and trucks for 300.000,00 €. The costs of goods sold by the company were 200.000,00 €. The fixed expenses and the operating cost during the year were 100.000,00 € and 150.000,00 € respectively. Exercise 1: Please fill in the income statement table below with the information given. Use your textbook for help!

10. With a partner, act out a role-play to underline the misunderstandings in income statements to non-accountants: Student A (Accountant): Please use the information above to present the manager of your company (student B) a brief income statement report. Student B (Manager): Please use the information given in the income statement by student A to ask questions about the accounting terms which could create confusions. Exercise 2:

11. 1.The amount realized from selling goods in the normal operations of a company in a specified period. 2. Generally accepted patterns of behavior. 3. Government agency which regulate and document the flow of goods in and out of the country. 4. The cost that go into creating the products that a company sells. 5. Conveniences like water, gas and electricity. 6.The expenses which are related to the operation of a business. 7. A financial statement that measures a company’s financial performance. 8. A cost that doesn’t change. 9. Net income for the company during a period. 10. The percent of total sales revenue that the company retains after incurring. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

12. Accounting is the universal language of business. As future accountants you will encounter and use it during your working or studying in this field. Our task is to improve it step-by-step and today we did one of our steps.