Something lent, usually money, on condition it will be paid back after a definite period with interest.

б) Вставьте в предложения слова из пункта (а)

1. The author of the original work may keep the… or sell to someone else.

2. Government … are usually considered to be a safe investment.

3. He total dividend per … was 10 pounds.

4. To protect his invention such as a new machine, a medicine or a process a scientist must obtain a …

5. This company is very proud of its reputation among the partners and cannot afford to lose it …

6. For the company to expand, its owners often ask banks for a … and agree to pay interest after a definite period of time.

7. … of the leading car producers such as Mercedes, Lincoln, BMW, Toyota, etc. are known all over the world.

8. The … is shown as an asset on the balance sheet.

Exercise II. Выберите подходящее по смыслу слово из предлагаемых в скобках вариантов.

Knowing the company’s (stocks/goodwill) value, creditors are ready to invest more money as they expect high (investment interest/salaries) at the end of the year.

Both farm equipment and farm buildings make up (short-term/long-term) (intangible/tangible) assets in agrobusiness.

Accountants/Stockholders) prepare reports in financial (items/terms) describing the results of past resources allocation decisions.

Any company is responsible for paying salaries of (employers/employees) and (wages/salaries) of workers belonging to company current (liabilities/assets) regularly, usually monthly or weekly.

The amount of goods and services known as company (stock-in-trade/real estate) is available for sale at a given time and it is is shown as an asset on the (accounts receivable/balance sheet).

To calculate/To operate) properly the company’s manager should rely on information obtained from public survey.

The greater is the difference between total assets and total liabilities, the greater is the company’s (net loss/net worth) often known as the (equity/debt) for a corporation.

8. The fundamental accounting (equation/equilibrium) can be written in different forms, for example: assets-liabilities = equity.

The company’s obligations are known to be classified as current and noncurrent ones, the former being also called (long-term/short-term) (liabilities/assets).

One should take into account that (accounts payable/goodwill) unlike the real estate belongs to intangible assets, but it can be sold like any other property.

Exercise III. Составьте предложения из двух подходящих по смыслу частей.

1. To be clear of debt 2. If current assets are less than current liabilities 3. The money obtained from selling company’s current tangible assets 4. Although accounting is one of the oldest professions in the world, 5. Both a person and a company can own such items of value as 6. In order to operate the business properly one should take into account 7. Accountants are supposed to deal with 8. The amount of owner’s investment interest

a) is usually calculated at the end of a fiscal year. b) a stock, a plot of land, a building or a machine. c) the company should sell off part of its receivable accounts. d) the management of financial resources and the representation of other aspects of the business in financial items e) it took much time to find satisfactory general methods of keeping financial records. f) that the accounting system is just one means of processing information in an organization. g) is unlikely to cover the company’s debts. h) the stockholders can’t expect any dividends

Exercise IV. Переведите предложения на русский язык, обращая внимание на –ing формы.

Proper organization of a company’s accounting system plays an important role in maintaining the fundamental accounting equation in balance.

Taking into account high rate of inflation in the country, potential investors are interested in putting their money in more dynamically developing companies.

The increase of the company’s net worth can be achieved either by raising the total profit or by reducing the losses by means of rationalizing production planning.

At the general meeting of the bank directors, everybody spoke of the company having the highest goodwill in the computer industry.

The converting of current tangible assets into cash is known to be done within one year according to accounting principles.

Recognizing the importance of goodwill as a company intangible asset, businessmen know that its value can change over time.

Registering copyright according to the existing laws guarantees the author the exclusive privilege to distribute, reproduce, perform or display his creative work.

Studying the relationships between assets, liabilities and equity is one of the methods for better understanding main accounting principles in business.

This company is said to specialize in producing small-size farm machines and it is successfully competing with other leading producers in the world market.

The designing of the original trademark can be helpful in promoting products, thus increasing the company’s net worth.

Exercise V. а) Подберите словарные определения к словам wage, salary, pay, fee.

1. This general term means money given to an employee by an employer in return for work.
2. An amount paid for a professional service or advice (as of a doctor, lawyer, etc).
3. A regular fixed payment for work or services, especially when clerical or professional, which is paid at longer intervals, often monthly.
4. Money paid to an employee, especially for manual or physical labour done at relatively short intervals, often hourly, daily and weekly.

б) Заполните пропуски словами из пункта (а)

1. For packing products the worker earns a weekly … of $ 50.

2. The company offers excellent rates of …

3. How much is the … for your advice. Doctor Smith?

4. … at this plant are paid on Fridays.

5. All company employees receive an annual … rise of six percent.

6. The starting… for an engineer at this company is $15,000 per year.

7. The … for these services will be about 30 percent of the total cost.

8. A manager’s … depends on how well the business operates.

Exercise VI. Прочитайте текст и озаглавьте абзацы. Передайте содержание каждого абзаца одним предложением. Ответьте на вопрос, следующий за текстом.

In accounting, the process of allocating in a systematic and rational manner the cost of certain items of the assets (these are mainly capital assets) over the period of its useful life is known as depreciation. There are three main types of depreciation causing the decrease in value of an asset: 1) physical depreciation, 2) moral depreciation, 3) deterioration (порча, повреждение, износ).

In the process of production the capital assets gradually wear out, thus after a definite period of time they have to be replaced. This is known as their physical depreciation.

However, capital assets are also subject to moral depreciation, that is after serving for some period of time, they may become obsolete (устаревший) before they are physically worn out and have to be replaced by more up-to-date means of production. Such obsolescence (изношенность) of the assets is caused by technological changes and by the introduction of new and better machinery and methods of production. Obsolescence can also be cause by the commodity produced by the asset, for example, if it goes out of fashion. In the later case, the degree of obsolescence will depend on the specific nature of the asset. Sometimes assets can be easily adapted to alternative uses while others may have only one application.

Deterioration means a change in value of an asset because of the effects of nature, for example, for machinery this might be rust (ржавчина), for buildings it is connected with decadence (ухудшение), for farm lands it is caused by erosion.

In accounting, it is important to know depreciation of the capital assets as it increases the company’s expenses, so two main methods are used by accountants in calculating periodic depreciation. The most widely used is the straight-line method (метод равномерного исчисления износа), in which the rate of depreciation is constant for the entire working life of the capital assets. According to the second method known as accelerated depreciation method (ускоренный метод исчисления износа), the depreciation rate in the first years of asset use is greater than in the later years.