Business english
dividendsinrelationtothe number of sharesthattheyeachhold. Ourshares are traded boughtorsold on the
London stock market. Weborrowmoneyintheform of bonds. Wepaypercentageinterest on thosebonds and
thenlaterrepaytheprincipal theamount of moneyoriginallylenttous. Ourbonds are traded on bondmarkets.
Wealsoborrowmoneyfrombanksintheform of loans, and wepay internest on thislending. Ofc, ourshareholders,
bondholders and lenders all take a keen interestinouraccounts. Theresultswepublishcanaffectshareprices;
goodresultscausepricestoriseifthe market believesthecompanyisundervalued. However, poor resultsoftencause a
dropinshareprice, asinvestors feel thecompanyisovervalued. Accrualsprincipleormethodmeansthateventsin a
particularreportingperiod, are recordedinthatperiod, ratherthanwhenmoneyisactuallyreceivedor paid out,
whichmayhappenin a laterperiod.TheP&L account(incomestatement in USA) recordstheprofitorthe loss
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