Account accounts accountant accounting accountancy

1. Can you check that the figures have been correctly in the bank…?
2. He is at university studying ….
3. The management of the company has not yet decided on their … policies.
4. A bookkeeper writes details of financial transactions in the ….
5. Most people in the profession read … magazines and journals in order to stay informed.
6. She’s been working as an … with the firm for several years now.
7. The directors of the company approve the … at the end of the … year.
8. The chief … has completed the draft … for this year.
9. Each branch maintains its own full … system.
10. They have opened an… for the consignment to Bombay.

11. … is really not an exact science.

12. A business manager needs some … knowledge in order to understand what he reads in

the company ….

Exercise 2. Add the word account, accounts or accounting to each of the words below:

1. …. methods 10. … book

2. … day 11. bank …

3. … equation 12. current …

4. … payable 13. deposit …

5. … principles 14. cost …

6. … period 15. managerial …

7. … procedures 16. numbered…

8. … receivable 17. profit and loss …

9. …standards 18. savings …

Exercise 3. Now complete the following, using the expressions of the above exercise.

1. Auditors are supposed to make sure that companies follow their stated …

2. Companies can choose from a variety of …, but they are not allowed to change them very often.

3. Lots of money obtained in illegal ways is deposited in … in Swiss banks.

4. The basic … is Assets= Liabilities + Owner’s Equity.

5. The … is one of the three basic financial statements.

6. … consist of money that is expected to be received. The contrary, … consist of money that is owed to other people.

7. The role … is to provide figures and statements that will aid decision-making.

Exercise 4. What is the meaning of the phrases in bold in the sentences (1-10) below? Choose the correct definition from the list (a-j) on the right.

1. How do you account for the sudden fall in the stock value? 2. Agents buy and sell goods on their own account. 3. They gave the solicitor a detailed account of the customer’s business deals in the last year. 4. The draft accounts had to be adjusted on account of the discovery that a major debtor had gone bankrupt. 5. Raw materials account for 30% of the manufacturing cost. 6. They are regular customers in this shop and are now able to buy on account. 7. On no account should these figures he released before the board meeting. 8. When making decisions for the future the managers have to take this year’s poor performance into account. 9. By all accounts, they will benefit greatly if the deal goes through. 10. The advertising company has won two new accounts in South Africa.

a) people say b) report c) under no circumstances d) consider e) explain f) big customers g) for themselves h) because of i) on credit j) represent

Exercise 3. Complete the following words. (See example):

1. This company has supplied goods but has not received any money for them yet. 2. Companies make this when they sell their goods for more than it costs them to make them. 3. Companies make this when they sell their goods for less than it costs them to make them. 4. Customers who have received goods but not paid for them yet. 5. This is the name of the difference between the credit and debit side of an account. 6. This is drawn up to check that the two sides of the accounts are the same. 7. This is the name for buildings, machinery, money in the bank and money owed by customers. 8. Money which is borrowed. 9. The total sum of money which is supplied by the owners of the company to set it up. 10. These are bought by people wishing to invest in the company. 11. An official examination of the accounts. 12. A statement of the financial position of the company.

CREDITOR P….T L….S D….RS B….C. T…L B…… A….S L… C…T.. S….S A…T B…..E S…T

ADDITIONAL MATERIAL

TEXT 1. THE BALANCE SHEET

Financial statements are the final product of the accounting process. They provide information on the financial condition of a company. The balance sheet, one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.

Assets represent everything of value that is owned by a business, such as property, equipment and accounts receivable. On the other hand, liabilities are the debts owed by a company – for example, to suppliers and banks. If liabilities are subtracted from assets (assets – liabilities), the amount remaining is the owners’ share of a business. This is known as owners’ or stockholders’ equity.

One key to understanding the accounting transactions of a business is to understand the relationship of its assets, liabilities, and owners’ equity. This is often represented by the fundamental accounting equation: assets equal liabilities plus owner’s equity.

Assets + Liabilities + Owners’ Equity

These three factors are expressed in monetary terms and therefore are limited to items that can be given a monetary value. The accounting equation always remains in balance; in other words, one side must equal the other.

The balance sheet expands the accounting equation by providing more information about the assets, liabilities, and owner’s equity of a company at a specific time (for example, on December 31, 2005). It is made up of two parts. The first part lists the company assets, and the second part details liabilities and owners’ equity. Assets are divided into current and fixed assets. Cash, accounts receivable, and inventories are all current assets. Property, buildings, and equipment make up the fixed assets of a company. The liabilities section of the balance sheet is often divided into current liabilities (such as accounts payable and income tax payable) and long-term liabilities (such as bonds and long-term notes).

The balance sheet provides a financial picture of a company on a particular date, and for this reason it is useful in two important areas. Internally, the balance sheet provides managers with financial information for company decision-making. Externally, it gives potential investors data for evaluation of the company’s financial position.

Notes to the text:

Accounts receivable - дебиторская задолженность

Accounts payable - счета к платежу

Current and fixed assets – оборотные и основные фонды

Exercise1. Give definitions to the following terms:

1. Assets are …
2. Liabilities are …
3. Owners’ equity is…
4. A balance sheet is …
5. A balance sheet provides …
6. An accounting equation is …
7. Current assets are…
8. Fixed assets are …

Text 2. WHAT IS ACCOUNTING?

Accounting has been called “the language of business”. Perhaps a better term is “the language of financial decisions”. The better you understand the language, the better you can manage the financial aspects of living. Personal financing planning, investments, loans, car payments, income taxes, and many other aspects of daily life are based on accounting. A recent survey indicates that business managers believe it is more important for college students to learn accounting than any other subject. Other surveys show that persons trained in accounting and finance make it to the top of their organizations in greater numbers than persons trained in any other field. Indeed, accounting is an important subject.

Accounting is the system that measures business activities, processes that information into reports and communicates these findings to decision makers. Financial statements are the documents that report on an individual’s or an organization’s business in monetary amounts.

Is our business making a profit? Should we start up a new line of women’s clothing? Are sales strong enough to warrant opening a new branch outlet? The most intelligent answers to business questions like these use accounting information. Decision makers use the information to develop sound business plans. As new programs affect the business’s activities, accounting takes the company’s financial pulse beat. The cycle continues as the accounting system measures the results of activities and reports the results to decision makers.

Bookkeeping is a procedural element of accounting as arithmetic is a procedural element of mathematics. Increasingly, people are using computers to do much of the detailed bookkeeping work at all levels – in households, business, and organizations of all types.

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