V. Accounting and Auditing
Read and translate the text
Findthe answers in the text:
1. What does a man feel when he sets up a business?
2. What does a man expect in return?
3. What is accounting?
4.What does bookkeeping deal with?
5. What is accounting divided into?
Whenever a man sets up a business it is because he feels he can produce some useful commodity or service which will be needed by his fellow citizens. In return he expects to be able to earn a profit on his business. To conduct his affairs efficiently and profitably the businessman must have some knowledge of accounting.
Accounting is the language of finance which all business decision – makers must understand. It is the process of capturing, processing, and communicating financial information. In other words, it is an information system that accumulates, records, classifies, summarises, and reports commercial transactions. The aim of this process is to show the financial condition of a business entity. This information, in the form of financial statements, is then communicated to those who make decisions concerning the operations of an enterprise.
Bookkeeping is a small part of the system and deals with record-keeping.
Accounting information is used by managers, investors, and different groups in society, for example, tax authorities, labour unions, local governments, financial analysts etc. From this perspective, accounting is divided into managerial and financial accounting.
The major branches of accounting are public, private, and governmental accounting.
Public accounting refers to the work done by independent Certified Public Accountants (CPA), the corresponding professional British title being Chartered Accountants. They audit the books of companies to ensure that their financial statements and records are properly stated.
Private accounting refers primarily to the private sector of the economy and involves the analysis and recording of financial information by accountants who are employees of the business entity.
Governmental accounting is the accounting function performed for central (federal and state) and local governmental institutions.
After text exercises
VI. Complete the following sentences according to the text:
1. In return he expects to be able to earn …
2. It is the process of capturing …
3. The aim of this process is to show the financial …
4. Accounting is the language of finance which all business decision – makers …
5. The major branches of accounting are …
VII. Translate the following sentences with modals.
(see appendix – reference section)
1. To conduct his affairs efficiently and profitably the businessman must have
some knowledge of accounting.
2. Accounting is the language of finance which all business decision-makers must
understand.
3. The accountant is to determine the ways in which the business may grow in the
future.
4. On the face of American dollars one can see the portraits of famous persons.
5. Accountants have to prepare regularly the two types of records.
VIII. Match the verbs in A with the nouns in B
A B
to set up a commodity
to produce affairs
to earn information
to conduct the books
to audit a function
to communicate profit
to perform a business
IX. Make your own sentences using the following prompts:
Accounting information
To conduct the affairs
Accounting is the language
Public accounting
Private accounting
Governmental accounting
X. Answer to the following questions:
1. Why must businessmen have some knowledge of accounting?
2. What is accounting?
3. What does an accounting information system show?
4. Who needs financial information?
5. What are the major branches of accounting?
XI. Speak about:
Why I Want to Be an Accountant and Auditor.
Unit X
Borrowing and Lending
Pre text exercises
I. Vocabulary list:
1. borrowingзаимствование
2. lendingпредоставлениезаймов/кредитов
3. customerклиент/покупатель
4. totradeторговать
whentrading… торгуя…,ведя торговлю…
5. currencyденьги, вложение
6. viewвзгляд, мнение, суждение, точка зрения
7. toplaceпоместить, разместить
8. short-termкраткосрочный
long-termдолгосрочный
9. interestrateпроцентная ставка
10. toachieveдостигать, добиваться
11. profit прибыль
12. responsibilityответственность
13. complementaryactivities дополняющие друг друга виды деятельности
14. loanзаем, заимствование, ссуда, кредит
15. tofundфинансирование, выделять средства
fundingфондирование, выделение средств
16. decision решение
to take a decision принятьрешение
17. toensure обеспечивать, гарантировать
18. torepayвозвращать/отдавать долг
19. dueподлежащий выплате
20. careful внимательный, тщательный
21. maturityсрок платежа
22. obligationобязательство
tomeetobligations выполнить обязательства
23. cashflowпотокналичности
24. reasonпричина
forthisreasonпоэтойпричине
II. Give the Russian equivalents to the following words and word combinations:
borrowing, short-term, when trading, lending, interest rate, funding,
complementary activities, to place, money market, loan decisions, to take decision,
to ensure, due, cashflow, profit, customer deposits, for this reason.
III. Give the English equivalents to the following words and word combinations:
торгуя/ведя торговлю; взгляд/мнение/суждение; поместить/разместить;
процентная ставка; дополняющие друг друга виды деятельности;
фондирование/выделение средств; по этой причине; возвращать/отдавать долг;
подлежащий выплате; выполнить обязательства; поток наличности.
IV. Match Russian words with their English equivalents:
банковский инструмент profit
денежный рынок cashflow
процентнаяставкаlong-terminvestments
краткосрочныйзаемliquid
прибыльlending
инвестициякапиталаliquidity
заимствоватьshort-termloan
заимствованиеmoneymarket
дать в займы toborrow
предоставление займов/ кредитовinterestrate
долгосрочные инвестиции riskmanagement
ликвидность borrowing
ликвидныйto lend
управлениерискамиbank instrument
денежныйпотокto repay a loan
выплатитьзаемinvestment of capital