Answer the following questions:

 

1. What are main accounting terms?
2. What is liability?
3. What are some examples of liabilities?
4. What is capital? What other terms are often used instead of capital?
5. What is an account? Give an example of an account. What abbreviation is commonly used for account?
6. What is the difference between single and double entry?
7. What is debit? What kind of accounts are increased by debiting?
8. What is credit? What kind of accounts are increased by crediting?
9. What is a journal? In double-entry bookkeeping, what is entered in the journal?
10. What is a ledger?
11. What is a relationship of a journal to a ledger?
12. What does posting mean?
13. What does ‘to foot’ mean?
14. What is a trial balance?

 

TEXT 3

 

1.Read and translate the text:

 

BOOKKEEPING

 

    Bookkeeping is writing down all the transactions arising from business activities which can be expressed in money. To run your busi­ness well you must know what money you have received, how much money you have spent and, most important of all, how you spent it. A bookkeeping system can provide you with that information. The books used for keeping records consist of a ledger and subsidiary books.

   The ledger is the general book in which you enter almost all the figures arising from your business activities. A ledger consists of a number of accounts. A chart of accountsserves as an index to the ledger, and each account is numbered to facilitate the frequent references that are made to it. An account is a column in the ledger that has been given a specific name, e.g. Cash, Bank, Sales and etc.

  The invoice book helps you to remember who owes the business money for goods and services you have sold but have not been paid for. When you have delivered a commodity or provided a service you send an invoice to the customer. You keep a copy of the invoice in the invoice book.

   The purchase journal is used to write down details of goods and services bought on credit which are not yet paid for. The invoice you receive from the supplier is kept in the purchase journal until it is fully paid.

   The wages book. In this book you make notes about your employ­ee names, wages, advance payments and so on.

 

Notes to the text:

provide with – предоставлять, надавати

subsidiary books – вспомогательные книги, допоміжні книги

figures arising from – цифры, полученные в результате; цифри, отримані

внаслідок

invoice book – книга счетов, книга рахунків

2. Complete the following sentences:

 

1. ______ can provide you with financial information.
2. The ledger is _____.
3. The invoice book is _____.
4. The purchase journal is _____.
5. The wages book is _____.

 

3.Speak about: ledge, invoice book, purchase journal, wages book.

Use the phrases: I’ll start by…, Further, I’ll pass over to…, From this it follows that…, Consequently, it is possible that…, Let me now make some comments on…, To conclude….

 

TEXT 4

 

1. Read and translate the text:

ACCOUNTING AND BOOKKEEPING

  Accounting is the process of identifying, measuring, recording, communicating and interpreting financial activity. Many people think of accounting as a highly technical field which can be understood only by professional accountants. Actually, nearly everyone practices accounting in one form or another on an almost daily basis.

  Persons with little knowledge of accounting may also fail to understand the difference between accounting and bookkeeping. Bookkeeping means the recording of transactions, the record-making phase of accounting. The recording of transactions tends to be mechanical and repetitive; it is only a small part of the field of accounting and probably the simplest part. Accounting includes the design of accounting systems, preparation of financial statements, audits, cost studies, development of forecasts, income tax work, computer applications to accounting processes, and the analysis and interpretation of accounting in formation as an aid to making business decisions. A person might become a reasonably proficient bookkeeper in a few weeks or months; however, to become a professional accountant requires several years of study and experience.

There are a number of professional accounting organizations which provide education and training leading to a certificate in accountancy. The education, training, and examination requirements vary considerably among these professional organizations. The members of these professional organizations tend to specialize in a given subarea of their discipline just as do attorneys and members of other professions. In terms of career opportunities, the field of accounting may be divided into three broad areas: (1) public accounting, (2) private accounting, and (3)governmental accounting.

     Public accountants are independent professional persons comparable to attorneys or physicians, who offer accounting services to clients for a fee. The specific requirements regarding the right to practice public accounting vary. The practice of public accounting is either open to anyone or just open to members of the professional accounting organizations. The chartered accountants, however, constitute the most prominent group in public accounting.

 

Notes to the text:

 

design of accounting system - разработка системы бухгалтерского учета, розробка системи бухгалтерського обліку

development of forecasts – прогнозирование, прогнозування

in terms of – с точки зрения, з огляду на

chartered accountant - дипломированный бухгалтер высшей категории, дипломований бухгалтер вищої категорії

       

2. Answer the questions:                

 

1.  What is accounting?
2. What is bookkeeping?
3. What is the difference between accounting and bookkeeping?
4. How long does it take to become a professional accountant?
5. How may a field of accounting be divided in terms of career opportunities?
6. What are public accountants?

 

 

TEXT 5

 

1. Read and translate the text:

 

THE DOUBLE-ENTRY FRAMEWORK

 

The fact that each transaction has two aspects - a dual effect upon the accounting elements - provides the basis for what is called double-entry bookkeeping. This term describes a processing system that involves entering the two aspects that are involved in every transaction. Double entry does not mean that a transaction is entered twice; instead, it means that both of the two aspects of each transaction are entered.

Double entry is known to have been practiced for at least 500 years. The method has endured largely because it has several virtues; it is orderly, fairly simple, and very flexible. There is no transaction that cannot be entered in a double-entry manner. Double entry promotes accuracy. Its use makes it impossible for certain types of error to remain undetected for very long. For example, if one aspect of a transaction is properly entered but the other aspect is overlooked, it will soon be found that the records as a whole are "out of balance". The accountant then know that something is wrong, reviews the transaction to discover the trouble and then makes the needed correction.

The assets of a business may consist of a number of items, such as cash, accounts receivable, merchandise, equipment, buildings, and land. The liabilities may consist of one or more items, such as accounts payable and notes payable. A separate record should be kept of each asset and of each liability.

A form or record used to keep track of the increases and decreases in each item that result from business transactions is known as an account. There are many types of account forms in general use. They may be ruled on sheets of paper and bound in a book form; they may be ruled on cards and kept in a file of some sort.

The three major pans of the standard account form are (1) the title and the account number, (2) the debit or left side, and (3) the credit or right side. This account form is designed to facilitate the entering of the essential information regarding each transaction that affects the account. Each account should be given an appropriate title that will indicate whether it is an asset, a liability, or an owner's equity account. Before any entries are made in an account, the title and number of the account should be entered on the horizontal line at the top of the form. The standard account form is divided into two equal parts or sections which are ruled identically to facilitate entering increases and decreases. The left side is called the debit side, while the right side is called the credit side. The Date columns are used for entering the dates of transactions. The item columns may be used for entering a brief description of a transaction when deemed necessary. The amount column on the left is headed "Debit" while that on the right is headed "Credit". The Debit and Credit columns are used for entering the amounts of transactions.

To determine the balance of an account at any time, it is necessary only to total the amounts in the Debit and Credit columns, and calculate the difference between the two totals.

Notes to the text:

 

to endure              -  использовать, використовувати     

to promote           - поддерживать, підтримувати

accounts payable -  кредиторская задолженность,  

                                  кредиторська заборгованість

notes payable      - дебиторская задолженность,

                                 дебіторська заборгованість

charge             - дебет, дебет

to deem               - считать, вважати

 

2.Answer the questions:

1. What provides the basis for double-entry bookkeeping?
2. When did double-entry bookkeeping appear?
3. Why has this method endured?
4. What may the assets consist of?
5. What may liabilities consist of?
6. What are the three major pans of the standard account form?
7. How is the left side called?
8. How is the right side called?
9. What are the left and the right sides used for?

 

TEXT 6

 

1. Read and translate the text: