Texts: Text A:What Bookkeeping is All About

I.Accounting

Lesson 1

Text B: Keeping A Record Of Transactions

Text A

What Bookkeeping is All About

The word “business” is very popular. What is business? We may say that business consist of sellinggoods and services at a profit. In other words,any enterprise in which we purchase and sell goods, spend, borrow, save and lend money is a business. It may be a drugstore, a TV repair shop, a manufacturing plant or something else. Business is a game with many players, and bookkeepers keep the score[1] in this game.

In the past, bookkeepers kept business records in big volumes: “the books”. Today, the people who keep the records are still called bookkeepers, even though they don’t use quill pens[2] and “the books” may be computer disks. But the principle remains the same. Bookkeepers tell the owners, how much money comes into the business, how much goes out, how much money the business owns and owes. Is the business gaining or losing in value?

Essentially, bookkeepers use the same methods when they are working for a sole proprietorship (which has only one owner) a partnership, or a corporation.

Text B

Keeping A Record Of Transactions

A transaction is any business operation that involves money. It may be a sale, a purchase, a loan, a lease payment, or any other activity in which money is transferred[3] from one account to another. The money can be in the form of cash (currency), cheque or money order.

The first responsibility of a bookkeeper is to keep a record of every transaction of the business he/she works for.

Bookkeepers record transactions in the journal. In the journal the bookkeeper enters transactions in chronological order (making a journal entries). Later the bookkeepers transfer entries to the accounts and use them to prepare many kinds of financial reports.

The journal page has two columns. A bookkeeping entry is either a debit or a credit. A debit is usually in the left-hand column. A credit is usually in the right-hand column. Debits and credits must be always balance (must be equal to each other). Every transaction involves both a credit and a debit.

WORDLIST

	bookkeeping [`buk,ki:piŋ]	бухгалтерия
	business [`biznis]	1.дело, занятие, коммерческая деятельность 2. коммерческое предприятие, фирма
	bookkeeper [`buk,ki:pǝ]	бухгалтер
	accountant [ǝ`kauntǝnt]	бухгалтер (более высокой квалификации)
	to consist of smth [kǝn`sist]	состоять из чего-л.
	to sell (sold, sold)	продавать
	profit [`prᴐfit] at a profit	выгода с выгодой
	in other words	другими словами
	enterprise [`entǝpraiz]	предприятие
	to purchase	покупать
	to spend (spent, spent)	тратить (время, деньги)
	to borrow	занимать, брать взаймы
	to save	1.экономика 2.сохранять
	to lend (lent, lent)	давать взаймы, одалживать, ссужать
	records [`rekᴐ:dz]	записи, документация, учётные документы
	to record [ri`kᴐ:d]	записывать, регистрировать
	volume [`vᴐlju:m]	том, книга
	still	всё ещё
	to use [ju:z]	использовать, пользоваться
	to remain [ri`mein]	оставаться
	owner [``ǝunǝ]	владелец
	to own [ǝun]	владеть, иметь в собственности
	to owe to smb [ǝu]	1.быть должным кому-л. 2. быть обязанным кому-л.
	to gain [gein]	получать, приобретать, извлекать выгоду
	to lose [lu:z] (lost, lost)	терять
	value [`vælju:]	стоимость
	essentially [i`senʃ(ǝ)li]	по существу
	sole proprietorship [sǝul prǝ`praiǝtǝʃip]	индивидуальное частное предприятие
	partnership [`pa:tnǝʃip]	товарищество
	corporation	корпорация
	transaction [træn`zækʃǝn]	сделка
	to involve [in`vᴐlv] e.g. It involves great expenses.	включать в себя, вызывать Это влечёт за собой большие расходы
	sale [seil]	продажа
	purchase [`pǝ:tʃǝs]	покупка
	loan [lǝun]	заём, ссуда
	lease payment	платёж за аренду, лизинговый платёж
	to transfer	переводить, переносить, перемещать
	account [ǝ`kaunt]	счёт
	cash	наличные
	cheque [tʃek] am. check	чек
	money order	платёжное поручение
	promise [`prᴐmis]	обещание
	responsibility for smth [ris,pᴐnsǝ`biliti]	ответственность за что-л.
	to be responsible for smth	быть ответственным за что-л.
	journal [ʤǝ:nǝl]	журнал
	to enter smth	вносить, записывать, регистрировать
	entry [`entri] journal entries	1.запись 2.проводка запись в учётном журнале
	to make an entry	вносить запись; делать проводку
	financial reports [fai`nænʃǝl ripo:ts]	финансовая отчётность
	either … or	или … или
	debit [`debut]	дебет
	credit [`kedit]	кредит
	left-hand column	левая колонка
	right-hand column	правая колонка
	to balance	сводить баланс, выравнивать дебет и кредит счёта
	Equal [`i:kwǝl]	Равный
	item [`aitǝm]	1.позиция, пункт, единица 2. бухгалтерская запись, позиция в балансе
	both [bǝuθ]	Оба, обе
	both … and	Как … так и, и … и

WORK ON THE TEXTS

Text A

Ex.1. Найдите в тексте соответствие русским фразам.

1. Мы можем сказать, что бизнес заключается в продаже товаров и услуг с целью извлечения выгоды.

2. Другими словами…

3. … любое предпринимательство, когда мы покупаем и продаём товары, тратим, берём взаймы, экономим и ссужаем деньги, является бизнесом.

4. … и бухгалтеры ведут счёт.

5. В прошлом бухгалтеры хранили деловую документацию в больших томах «книгах».

6. Сейчас бухгалтеры всё ещё ведут записи…

7. … хотя они не пользуются гусиными перьями, а «книги» могут быть компьютерными дисками.

8. Но принцип остается тем же самым.

9. Бухгалтеры говорят владельцам, сколько денег приходит в бизнес, сколько денег уходит…

10. Бухгалтеры говорят, сколько денег находится в распоряжении, какова задолженность…

11. Увеличивается ли рыночная стоимость предприятия или уменьшается?

12. По существу, бухгалтеры используют те же самые методы, когда они работают на индивидуальное частное предприятие (которое находится во владении одного лица), товарищества или корпорацию.

Ex.2. Найдите в тексте предложения, в которых говорится, что

1. The main idea of business is selling and buying.

2. Businesses differ in the form of organization.

3. In the old days bookkeeps used big books.

4. The principle of bookkeeping does not change with time.

5. Bookkeepers provide important information to the owners of the business.

6. The form of ownership does not play any role in accounting methods.

Ex. 3. Выразите согласие или несогласие.

1. Business does not involve selling goods and services at a profit.

2. Bookkeepers keep records of transactions.

3. In the past bookkeepers kept their records in big volumes.

4. Thanks to bookkeepers the owners of the business know how much money they own and how much they owe.

5. In different companies bookkeepers use different methods of accounting.

Ex. 4. Проверьте, как вы поняли текст. Ответьте на вопросы.

1. What is business?

2. What is a business?

3. What are bookkeepers responsible for?

4. How did bookkeepers work in the past?

5. What role do bookkeepers play in any time?

6. What methods do bookkeepers use in their work?

TEXT B

Ex.5. Найдите в тексте соответствие русским фразам.

1. Сделка – это любая деловая деятельность, которая связана с деньгами.

2. Это может быть продажа, покупка, заём, арендный платёж…

3. Это может быть любая другая активность, при которой деньги переводятся с одного счёта на другой.

4. Деньги могут быть в форме наличности (валюты), чека или платёжного поручения.

5. Первой обязанностью бухгалтера является ведение учёта каждой операции…

6. Бухгалтеры регистрируют сделки в журнале.

7. … бухгалтер записывает сделки в хронологическом порядке, делая запись в учётном журнале.

8. Бухгалтеры переносят записи в учётном журнале на различные счета…

9. Бухгалтеры используют записи для подготовки различных видов отчётности.

10. Бухгалтерская запись – это кредит или дебет.

11. Дебет обычно в левой колонке.

12. Кредит обычно в правой колонке.

13. Каждая сделка проходит как по кредиту, так и по дебету.

Ex. 6. Найдите в тексте предложения, в которых говорится, что

1. Transactions may take different forms.

2. The major responsibility of a bookkeeper is to register every transaction of the business.

3. Bookkeepers enter transactions in chronological order.

4. Bookkeepers post entries to various accounts.

5. Financial reports are based on the journal entries.

6. Bookkeeping entries are either debit or credit.

Ex. 7. Выразите согласие или несогласие.

1. A transaction does not involve money transfers from one account to another.

2. The money which is transferred may be in different forms.

3. The bookkeeper doesn’t record every transaction of the business.

4. In the journal the bookkeeper can enter transactions in any order he/she likes.

5. Bookkeepers transfer journal entries to various accounts.

6. Bookkeeping entries are either debit or credit.

7. Debits are usually on the left.

8. Credits are usually on the right.

Ex. 8. Проверьте, как вы поняли текст. Ответьте на вопросы.

1. What characterizes a transaction?

2. What forms do transactions take?

3. What is the major responsibility of a bookkeeper?

4. Where do bookkeepers register transactions?

5. Where do bookkeepers transfer journal entries to?

6. Where are debits?

7. Where are credits?

Ex. 9. Заполните пропуски подходящими словами из рамки.

in the right-hand column, accounts, in the left-hand column, chronological order, spent, financial reports, received, be equal

Bookkeepers record transactions every day. They enter debits and credits in the journal in ___. Then they transfer journal entries to various ___. A debit is usually ___. A credit is usually ___. Debits and credits must ___ to each other. Bookkeepers use accounting entries for many ___.

The owners of the business know how much money the business ___ and how much it ___.

REVISION EXERCISES

Ex. 10. Дайте развёрнутые ответы на вопросы.

1. What activities does business involve?

2. What forms do businesses take?

3. What is the origin of the word “bookkeeper”?

4. What information do bookkeepers record in their books?

5. What methods do different businesses use?

6. What does a transaction involve?

7. How do bookkeepers prepare financial reports?

8. What two columns are essential in bookkeeping?

9. Where do bookkeepers usually place credits?

10. Where do bookkeepers usually place debits?

11. What is the basic principle of double-entry bookkeeping?

Ex. 11. a) Прочитайте и переведите текст.

Remember: a lawyer[`lᴐ:jǝ] 1. юрист 2. адвокат

an auditor[`ᴐ:dite]аудитор

to mean (meant, meant)[mi:n, ment] значить, иметь значение

meaningзначение

terms[tǝ:mz]термины

Accounting is a language of business. Business people of the world use it to describe different transactions of all kinds of organizations. Managers, owners, investors, bankers, lawyers, auditors and accountants use accounting terms and ideas. As it is a language of business, there are words and expressions that mean one thing in accounting, but whose meaning is different in ordinary language. For example, the word “credit” in accounting means an amount of money that you add to an account. Besides, word “credit” means a loan in business, and in ordinary language the expressions “to be a credit of smb” or “to do smb credit” mean that these people are proud of you. “her children do her credit” means that she is proud of her children. fluency[4] in accounting terms comes with practice.

The first phase of accounting is bookkeeping. However, accounting is much more than actual making of records. Accountants are interested in the financial results. They study the various alternatives which are open to the business and try to help the owners and managers to choose the best plan of action for the business.

б) Ответьте на вопросы.

1. What role does accounting play in business?

2. What people use accounting terms and ideas?

3. What financial meanings of the word “credit” do you know?

4. What expressions with word “credit” in the ordinary language do you know?

5. What is a first phase of accounting?

6. What are accountants interested in?

7. Why is it necessary to study the financial results?

Ex.12. Заполните пропуски словами из рамки.

a decision, owners, at a profit managers, accountant, financial reports

The ___ and ___ of the business need some accounting knowledge to understand what the ___ tells them. Investors and others will need accounting knowledge too to read and understand the ___. Then the investors and the general public will be able to make ___ about future investments. There are two main questions that the managers, owners and investors want to know: fist, is the business operating ___? Second, will the business operate in the future or close down?

Ex.13. Заполните пропуски предлогами, где необходимо.

1. Bookkeeping consist ___ keeping records of transactions.

2. In the past bookkeepers kept business records ___ big books.

3. The business lost ___ value last year.

4. What company are you working ___?

5. We want to know how much money has come ___ the business?

6. Businesses sell or buy goods and services ___ a profit.

7. The money can be ___ the form ___ cash, check or money order.

8. Bookkeepers are responsible ___ keeping records of transactions.

9. Transactions are recorded ___ chronological order.

10. Journal entries are transferred ___ various accounts.

11. A debit is usually ___ the left-hand column.

12. A credit is usually ___ the right-hand column.

13. Every transaction involves ___ both a credit and a debit.

Ex.14. Заполните пропуски артиклями, где необходимо.

1. ___ business consists of selling and buying at ___ profit.

2. Many things have changed but ___ principle remains the same.

3. Now the bookkeepers use ___ same methods when they work for different companies.

4. ___ sole proprietorship, ___ partnership ___ or ___ corporation are various ownership forms.

5. Business is ___ game with many players and bookkeepers keep ___ score.

6. Any transaction involves ___ money.

7. ___ money which you transferred to this account is for bonuses.

8. ___ first responsibility of ___ bookkeeper is to record all the transactions.

9. In ___ journal ___ bookkeeper registers transactions in chronological order.

10. ___ bookkeeping entry is either ___ debit or ___ credit.

Ex.15. Раскройте скобки, употребляя глаголы в Past Simple, Present Simple или Future Simple.

1. Bookkeepers (to enter) transactions in chronological order.

2. The bookkeeper (to enter) this transaction yesterday.

3. The bank (to lend) a big sum of money to the business a month ago.

4. They (not to own) this factory. They (to sell) it some time ago.

5. The business (to gain) in value last year.

6. We hope that our business (to gain) in value next year.

7. This business (to spend) much money on lease payment every year.

8. His work (to consist) of preparing financial statements. He is responsible for the annual report.

9. She (to transfer) this sum to the bank tomorrow.

10. They usually (to save) money for summer holidays.

Lesson 2

Text A

The Balance Sheet

The Income Statement

After the journal entries are transferred to various accounts, the bookkeeper prepares financial statements. Annual reports are based on financial statements.

There are two important kinds of financial statements, the balance sheet and the income statement (which is also called an operating statement or a profit and loss account).

The balance sheet shows what the company owns and what it owes on a certain date. And it shows what is left to the owners (that is the owners’ equity, capital or net worth). The balance sheet is like a snapshot photograph since it reports on the financial position as of the end of the year.

The income statement, on the other hand, is like a motion picture since it reports on how the company worked during the year. It also shows what profit or loss its operations resulted in. It lists income over a certain period such as a year or a calendar quarter, subtracts expenses over the same period and shows what profit was earned or what loss was incurred.

Text B

Assets and Liabilities

Any property the business owns, and any claim it has on the property of others, is called an asset. Bookkeepers list any business property as an asset. Any amount which is owed is listed as a liability.

The two main kinds of assets are current assets and fixed assets. Fixed assets are sometimes called capital assets or plant assets.

A fixed asset is an item with a life of more than one year: for example, a warehouse, equipment, a machine or a truck. Inventories (stock of goods for sale) and materials (raw materials and components) are current assent.

Current assets are listed in the balance sheet in order of their liquidity, the speed with which they are turned into cash. Cash (on hand or in a demand deposit in the bank) is listed first. Cash is the first resource for paying bills.

Marketable securities are securities that are easily sold.

Accounts receivable is the money which is owed by customers of the business for goods and services which are purchased on credit. They are listed next because they will soon become cash. Next come inventories (goods for sale and raw materials), and prepaid items such as insurance and rent paid in advance.

A liability is a claim on the assets of the company.

Liabilities take many forms. If the owner of a business borrows money, it is known as an account payable. Accounts payable is the money which is owed by the business.

Liabilities are classified as short-term or long-term. Current liabilities are like current assets. Long-term liabilities are like fixed assets. Generally, liabilities are considered current if they fall due within the current accounting year.

Equity (or shareholders’ equity) is what a business owes both to shareholders and owners.

The fundamental accounting equation is often given as A=L+E. It means that assets must equal liabilities plus owners’ equity (capital).

ASSETS = LIABILITIES + EQUITY

WORDLIST

1. balance sheet

баланс, балансовая таблица

2. income [`inkǝm] 3. income statement syn. operating statement, profit and loss account 4. various 5. to prepare [pri`pɛǝ] 6. financial statements syn. financial reports 7. annual [`ænjuǝl] 8. be based on… [beist] 9. to show (showed, shown) 10. to leave 11. owners’ equity [`ekwiti] syn. shareholders’ equity syn. net worth 12. share 13. capital 14. to pay (paid, paid) 15. since 16. to report [ri`pᴐ:t] 17. as of the end of the year 18. on the other hand e.g. on the one hand on the other hand 19. to result in smth 20. loss heavy losses [`hevi] to suffer losses to sustain losses to incur losses at a loss ant. at a profit 21. to list 22. to subtract from [sǝb`trækt] syn. to deduct from [di`dʌkt] 23. expenses [iks`pensiz] heavy expenses to bear expenses (bore, borne) to incur expenses 24. to earn [ǝ:n] 25. assets [`æsets] 26. liabilities [,laiǝ`bilitiz] 27. property [`prᴐpǝti] 28. claim on smth 29. as 30. amount [ǝ`maunt] 31. current assets 32. fixed assets syn. capital assets plant assets 33. item [`aitǝm] 34. warehouse [`wɛǝhaus] 35. equipment [i`kwipmǝnt] 36. truck 37. inventories [`invǝntriz] 38. stock of goods 39. raw materials [rᴐ: mǝ`tiǝriǝz] 40. component 41. liquidity [li`kwiditi] 42. speed [spi:d] 43. to turn into 44. cash on hand 45. demand deposit 46. resource 47. bill 48. marketable securities 49. accounts receivable (receivables) 50. due the sum due to us 51. prepaid 52. insurance [in`ʃuǝrǝns] 53. rent 54. in advance [in ǝd`va:ns] 55. accounts payable (payables) 56. short-term 57. long-term 58. like 59. generally [`ʤenǝrǝli] 60. to consider 61. current 62. within 63. to fall due 64. accounting year syn. reporting year, year under review 65. shareholder [`ʃɛǝ,hǝuldǝ] 66. equation i`kweiʃn] accounting equation 67. to equal [`i:kwǝl] 68. owners’ equity (capital)

доход счет прибылей и убытков, отсчет о доходах и расходах компании различный подготавливать финансовая отчетность годовой, ежегодный основываться на… показывать оставлять капитал акционеров (все активы за вычетом всех пассивов) акционерный (собственный) капитал акция капитал платить, оплачивать так как сообщать, описывать по состоянию на конец года с другой стороны с одной стороны… приводить к чему-л. убыток крупные убытки нести расходы с убытком, в убыток с прибылью записывать, учитывать вычитать из расходы большие расходы нести расходы зарабатывать активы пассивы, денежные обстоятельства собственность право на что-л. как, в качестве сумма текущие (оборотные) активы фиксированные (капитальные) активы, основной капитал, основные фонды бухгалтерская запись, позиция в балансе склад, товарный склад оборудование грузовик товарно-материальные запасы запас товаров сырье компонент, составная часть ликвидность скорость превращать наличность в кассе вклад до востребования ресурс; зд. источник счет легко реализуемые ценные бумаги дебиторская задолженность подлежащий выплате, причитающийся к оплате сумма, причитающаяся нам заранее оплаченный страхование, страховка арендная плата заранее кредиторская задолженность краткосрочный долгосрочный подобно, похожий, подобный в общем смысле, вообще рассматривать, считать текущий в течение подлежать оплате при наступлении срока отчётный год акционер уравнение бухгалтерское уравнение (формула, по которой активы компании должны равняться пассивам плюс собственный капитал) равняться акционерный капитал

WORK ON THE TEXTS

Text A

Ex.1. Найдите в тексте соответствие русским фразам.

После проведения журнальных записей на различные счета…
… бухгалтер готовит финансовую отчётность.
Годовые отчёты основываются на финансовой отчётности.
Есть два важных вида финансовой отчётности – баланс (балансовый отчёт) и счёт прибылей и убытков.
В балансовом отчёте указывается, чем компания владеет и какая у неё задолженность на определенную дату.
В балансовом отчёте указывается, что остаётся владельцам, если предприятие выплачивает всю задолженность из своих средств.
Балансовый отчёт выглядит как моментальный снимок.
Балансовый отчёт отражает финансовое положение по состоянию на конец года.
Счёт прибылей и убытков, с другой стороны, подобен кинофильму…
Счёт прибылей и убытков отражает работу компании в течение года…
Счёт прибылей и убытков показывает, прошли ли операции с прибылью или с убытком.
Он показывает прибыль в течении конкретного периода времени, например, года или квартала…
Счёт прибылей и убытков вычитает расходы за тот же период…
Он показывает, какая получена прибыль или какой был убыток.

Ex.2. Найдите в тексте предложения, в которых говорится, что

Bookkeepers prepare financial statements on the basis of the basis of the postings (posting – проводка)
Two financial documents are important.
The operating statement is known under different names.
The balance sheet gives a picture of the company’s assets, liabilities and owner’s equity.
The operating statement shows both income and expenses over a definite period.
The profit and loss account shows the result of the company’s work.

Ex. 3. Выразите согласие или несогласие.

Journal entries are not transferred to the accounts.
The financial statements give a full idea of the company’s work.
The net worth is shown in the balance sheet.
The operating statement does not list either income or expenses.
The income statement shows how much the company earned or lost during a certain period of time.

Ex. 4. Проверьте, как вы поняли текст. Ответьте на вопросы.

What are the financial statements based on?
How are financial statements prepared in business?
What are the most important kinds of financial statements?
Under what other names is the income statement known to bookkeepers?
What pictures does the balance sheet represent?
How is the net worth (the owners’ equity) calculated?
What does the operating statement show?

Ex. 5. Заполните пропуски подходящими словами из рамки.

idea, sides, date, assets, activities, balance, picture, liabilities, investors

The balance sheet shows the financial ___ as it stood on one particular day, December 31, 2008. The balance sheet is divided into two ___: on the left are shown ___ ; on the right are shown ___ and owners’ equity. Both sides are always in ___.

While^{^[5]} the balance sheet shows the fundamental strength of the company on a given ___, the operating statement may be of greater interest to ___ because it shows the result of operating ___ for the whole year. It is a valuable guide, because it gives an ___ how the company will do in the future.

TEXT B

Ex.6. Найдите в тексте соответствие русским фразам.

Любая собственность в распоряжении предприятия…
Любое право на собственность других предприятий…
Бухгалтеры зачисляют любую собственность предприятия в актив.
Любая сумма, которая представляет собой долговое обязательство, зачисляется в пассив.
Двумя основными видами активов являются текущие (оборотные) активы и фиксированные активы (иногда называемые капитальными или основными активами).
Фиксированный актив – это статья баланса со сроком использования более года…
Товарно-материальные запасы и материалы относятся к текущим активам.
Текущие активы располагаются в балансе в порядке их ликвидности.
… скорость, с которой они обращаются в наличность.
Наличность (имеющаяся в кассе и на вкладе до востребования в банке) указывается первой.
Наличные деньги – это первый источник для оплаты счетов.
Дебиторская задолженность – это средства причитающиеся предприятию.
Дебиторская задолженность указывается в следующую очередь, потому что она вскоре превратится в наличность.
Следующими по порядку указываются товарно-материальные запасы (товары на продажу и сырьё) и заранее оплаченные позиции…
… страховка и арендная плата.
Пассив – это требование на активы компании.
Пассивы выступают во многих формах.
Кредиторская задолженность – это средства, подлежащие оплате предприятием.
Пассивы делятся на краткосрочные и долгосрочные.
Текущие пассивы подобны текущим активам.
Пассивы называются текущими, если они подлежат оплате в течение текущего отчётного года.
Акционерный (собственный) капитал – это задолженность предприятия перед акционерами и владельцами.
Основное бухгалтерское уравнение часто дается как …
Оно означает, что активы равняются пассивам плюс акционерный капитал.

Ex. 7. Найдите в тексте предложения, в которых говорится, что

An asset is what the business owns.
Bookkeepers list any property which the business owns and any claim on the property of other businesses as an asset.
Liabilities include all amounts which are owed.
Assets fall into two categories.
Fixed assets are not for sale. They are used over and over again to manufacture the product.
Current assets include cash and those assets which in the normal course of business are turned into cash.
Accounts receivable mean the amounts due from customers.
Inventories and prepaid expenses are listed after cash and receivables.
Like assets, liabilities fall into two categories.
Shareholders’ equity is the money which is owed to owners and shareholders.
The fundamental accounting equation is often given as A=L+E

Ex. 8. Выразите согласие или несогласие.

The basic principle of bookkeeping is the balance between assets and liabilities plus owners’ equity.
Bookkeepers list current assets in any order they like.
Land, buildings, warehouses and different types of equipment are fixed assets.
Liabilities do not fall into categories.
Long-term liabilities are paid within the current accounting year.
The amount which is left after all the debts are paid is the owners’ equity.

Ex. 9. Проверьте, как вы поняли текст. Ответьте на вопросы.

What is an asset?
What is a liability?
What are the two main kinds of assets?
What is a fixed asset?
What items are listed as inventories?
In what order are current assets listed in the balance sheet?
How are liabilities classified?
What liabilities are called current?
What does the accounting equation mean?

Ex. 10. Заполните пропуски подходящими словами из рамки.

asset, life, land, fixed assets, are listed

A long-life ___, such as a building, ___, or a machine, has a useful ___of more than one year. All long-life assets ___ on the books after current assets. They remain on the books for some time.

Long-life assets are also called “___”, “plant assets”, or “property, plant and equipment”.

Ex. 11. а) Прочитайте текст.

remember: costстоимость, себестоимость

historical costпервоначальная (историческая) стоимость

unit of measure[`ju:nit ǝv `meʒǝ] единица измерения

mortgage[`mᴐ:giʤ] ипотека, закладная

noteкраткосрочное долговое обязательство, вексель

book valueбалансовая стоимость

REVISION EXERCISES

Ex. 12. Дайте развёрнутые ответы на вопросы.

What answers does the balance sheet give to its readers?
What difficulties does the principle of the historical cost involve?
What are financial statements based on?
What are the principle components of financial statements?
What does the balance sheet reflect?
What does the income statement show?
What assets are recorded as current?
In what order are current assets listed on the balance sheet?
How are inventories listed?
What assets are recorded as fixed?
What is the idea of the historic cost of fixed assets?
How are liabilities classified?
What is the accounting equation?

Ex. 13. а) Прочитайте и переведите текст.

Letter to Shareholders

the shareholders, is produced, optimistic, the financial statements, are based on

A company’s annual report is made every year. Only ___ are produced by the accountants. Much of an annual report ___ by managers and discusses many topics, some of them ___ accounting figures, some are not.

The letter to ___ is part of the annual report. It begins with a statement such as “I am pleased to report…” and is signed by the president. The letter usually contains an ___ message.

Ex.15. Заполните пропуски предлогами, где необходимо.

Journal entries are transferred ___ various accounts.
The company owes $150 million ___ foreign creditors.
Both sides of the balance sheet are always ___ balance.
What will be left ___ the owners?
What money is left ___ the owners if the company goes out of business ___ the date ___ the balance sheet?
This operation may result ___ a loss.
The operating statement shows how much the company earned or lost ___ a definite period of time.
The balance sheet reports ___ the financial position ___ a certain date.
The profit and a loss account shows income ___ a definite period such as a year or a calendar year.
It’s necessary to subtract expenses ___ the total income.
Any claim the business has ___ the property of other companies or banks is called an asset.
Any claim ___ the property is a liability.
Current assets are listed ___ the balance sheet ___ order of their liquidity.
Cash ___ hand or in a demand deposit ___ the bank is listed first.
Cash is the major resource ___ paying bills.
They purchased these goods ___ credit.
This money is owed ___ customers of the business.
The rent was paid ___ advance.
Liabilities are called current if they are paid ___ the current reporting year.
Equity is what a business owes ___ its shareholders.

Ex.16. Заполните пропуски артиклями, где необходимо.

1. It is important to know whether ___ owners are increasing their investment, or ___ business is working at ___ loss.

2. The balance sheet gives an idea what ___ company owns and what it owes on ___ certain date.

3. The balance sheet reports on ___ financial position as of ___ end of ___ year.

4. The operating statement is like ___ movie because it shows ___ work of ___ company.

5. The income statement shows income over ___ specified period such as ___ year or ___ calendar quarter.

6. ___ same period is mentioned in this report.

7. Bookkeepers list any property as ___ asset.

8. Fixed assets are sometimes called ___ plant assets.

9. ___ warehouse, ___ truck, or ___ machine are examples of fixed assets.

10. Current assets also include ___ inventories and ___ raw materials.

11. Current assets are listed in ___ balance sheet in order of their liquidity.

12. Cash is ___ first resource for paying ___ bills.

13. Liabilities are called current if they are paid within ___ current accounting year.

14. Equity is what ___ business owes both to ___ shareholders and ___ owners.

Lesson 3

Text A

The Accounting

The Accounting cycle can be imagined asa circle^{^[7]}that repeats again and again throughoutthe life of a business. The cycle starts when a transaction occurs. Every time a transaction is made it is recorded in the journal, in other words, it is entered.

Each record is called an entry. In the double entry system each transaction is recorded twice –as a credit to one account and a debit to another. How did this double entry system appear?In Roman times the money lender^{^[8]} sat at one side of a table, gave money to his customer with his right hand and wrote the value of the cash that was paid out on the right side. When the cash was repaidit was put on the left. With time these operations were recorded in the journals in two columns: for debits and credits.

Credits usually go on the right; debits usually go on the left.

Every entry in the journal is transferred to a ledger, or a book of accounts. When is transferred from the journal to the ledger it posted.The ledger accounts may be kept in different forms, from sheets in manila folders^{^[9]} to computer disk files. Each account is given an account titlesuch as “Cash”, “Payroll Account”, “Account receivable”, and an account number. All the account titles together with their numbers are listed on a special page which is called the chart of accounts.

Usually at the end of each accounting periodthe bookkeeper has to verifythe accounts for accuracy .He has to make sure that every entry from the journal is posted to the ledger and that debits and credits in the ledger are in balance. This procedure is called a Trial Balance.

Text B

Errors in Bookkeeping

Several kinds oferrorsare common in bookkeeping: numbers may be reversedin writing (for example, 65 instead of 56) or a digit is moved over one place (for example, 10,000 instead of 1,000). The bookkeeper can reverse the entry with incorrect information and reenter the entry correctly.

It should be remembered that locating an error later takes much time. It is easier^{^[10]} to check work in the process than “to hunt”^{^[11]} for an error later on. This will save time and effort. So the bookkeeper must try to avoid any errors.

If the trial balance does not balance, its columns are to be checked and rechecked to make sure that all postings are made properly and the journal debits and credits are equal to each other.

WORDLIST

	accounting cycle [ǝ`kauntiŋ `saikl]	учётный цикл
	to imagine [i`mæʤin]	воображать, представлять себе
	throughout [θru:`aut]	всё время, на протяжении всего времени; на всём пространстве
	throughout the life of an asset throughout the country throughout the world	в течение всего срока по всей стране во всём мире
	to occur [ǝ`kǝ:]	происходить, случаться
	to appear [ǝ`piǝ]	появится
	to repay [ri`pei]	вернуть сумму, выплатить
	ledger [`leʤǝ] syn. book of accounts	бухгалтерская книга
	to post	делать проводку
	account title	наименование счёта
	payroll account	счёт заработной платы
	number	(порядковый) номер
	account number	номер счёта
	chart of accounts [`tʃa:t ǝv ǝ`kaunts]	план бухгалтерского учёта
	accounting period [ǝ`kauntiŋ `piǝriǝd]	отчётный период
	to verify [`verifai]	проверять, контролировать
	accuracy [`ækjurǝsi]	правильность, точность
	to make sure	убедиться, удостовериться
	balance [`bælǝns] to draw up the balance to be in balance	баланс подводить/сводить баланс балансироваться, равняться
	trial balance [traiǝl]	пробный/проверочный баланс
	error	ошибка
	To reverse [ri`vǝ:s]	1. менять порядок, менять местами 2. сторнировать
	digit	цифра
	to move over	отодвигать
	place	разряд
	correct	правильный, верный
	incorrect	неправильный, неверный
	correctly	правильно, верно
	should [ʃud]	следует, нужно, должно
	locating	нахождение, обнаружение
	later	позднее
	effort [efǝt]	усилие
	to avoid smth	избегать чего-л.
	posting	проводка

WORK ON THE TEXTS

Text A

Ex. 1. Найдите в тексте соответствие русским фразам.

Цикл начинается, когда совершается сделка.
По системе двойной записи каждая сделка регистрируется дважды – пр кредиту и по дебету.
Ростовщик в древнем Риме выдавал деньги клиенту правой рукой и записывал выданную сумму справа.
Когда долг возвращали, сумма записывалась слева.
Со временем эти операции записывались в журналах в двух колонках: как дебет и кредит.
Счёта в бухгалтерской книге могут содержаться в разных формах.
Каждому счёту присваивается наименование счёта и номер счёта.
Все названия счетов со своими номерами указываются на особой странице, которая называется планом счетов.
В конце отчётного периода бухгалтер должен проверить правильность счетов.
… удостовериться в том, что каждая запись перенесена из журнала в бухгалтерскую книгу.

Ex. 2. Найдите в тексте предложения, в которых говорится, что

Transactions are always registered in journals.
The double entry system means that each transaction is registered twice.
The bookkeeping procedure goes back to Roman times.
Account titles and their numbers are listed in the chart of accounts.
All accounts must be checked to make sure that they are accurate.

Ex. 3. Выразите согласие или несогласие.

Not every transaction is recorded in journals.
Some of the entries are posted to the ledger.
Ledger accounts are kept in different forms.
4 some of the accounts are given names and numbers.
A special page with account titles and account numbers is called a chart of accounts.
Debits should not be equal to credits.
It is not necessary to make sure if the debits and credits in the ledger are in balance.

Ex. 4. Проверьте, как вы поняли текст. Ответьте на вопросы.

How can the accounting cycle be imagine?
When does the accounting cycle begin?
What is a bookkeeping entry?
What is the idea of the double entry system?
Where is every entry posted to form the journal?
What is a chart of accounts?
What is done at the end of each accounting period?
What is a trial balance?

Text B

Ex. 5. Найдите в тексте соответствие русским фразам.

Некоторые ошибки являются типичными в бухучёте.
Могут быть ошибки, когда при написании переставляются цифры.
Цифра передвигается на один разряд.
Бухгалтер может сторнировать проводку.
… и вновь внести правильную запись.
Следует помнить.
… обнаружение ошибки в дальнейшем отнимает много сил и времени.
Экономить время и усилия.
Избегать любых ошибок.
Если пробный баланс не сводится.
… колонки пробного баланса должны проверяться и перепроверяться.
… удостовериться в правильности каждой проводки.
… дебет равняется кредиту.

Ex. 6. Найдите в тексте предложения, в которых говорится, что

In accounting some mistakes are typical.
Finding an error in bookkeeping takes a lot of time.
The bookkeeper must be careful not to make mistakes.
In case there is no balance in trial balance columns each ledger posting must be checked.

REVISION EXERCISES

Ex. 10. Дайте развёрнутые ответы на вопросы.

What is an entry and what is a posting?
What information is given in the chart of accounts?
When and why are the accounts verified?
When doesn’t the trial balance balance?
What should be done to avoid errors?

Ex. 11. а) Прочитайте текст и переведите его.

The method of bookkeeping in use is the method of double entry. This method means that each debit entry has a corresponding credit entry, and each credit entry has a corresponding debit entry.

All the items which are recorded in all the accounts on the debit side should equal all the items which are recorded on the credit side of the books. In accounting a trial balance is periodically drawn up to make sure that the two sides of the book “balance”.

A form of a trial balance is made up by listing all the accounts, adding all the debit entries and at the same time adding all the credit entries.

At first sight^{^[12]} the balancing of a trial balance may seem correct. This, however, may be wrong. It means that some types of errors were not made, but there are other types of errors which are not seen in the totals (общая сумма) of a trial balance.

b) Ответьте на вопросы.

1. What does the double entry bookkeeping mean?

2. Why is a trial balance drawn up?

3. What information is included in the trial balance?

4. What errors can be found in accounts?

5. What errors can lead to serious problems?

6. What kind of errors are difficult to find?

Ex. 12. Заполните пропуски словами из рамки. Некоторые слова могут повторяться.

value, entries, are checked, item, errors,involve, number, posted

Double entry systems guarantee that ___ of the data are made properly. However ___ can appear from a ___ of sources.