Task 1 Insert the appropriate words from the box

Accounting is the recording, classifying, summarizing and interpreting of financial _1__ and transactions __2__ include buying and selling goods and services. The trend today is __3__ computers since the process is often repetitive and the computers greatly __4__ the task.

The transaction are classified into the __5__ that have common characteristics. The method used to record and summarize accounting data into reports is called an accounting __6__.

Task 2 Translate the sentences:

1. Сделка – покупка и продажа услуг, включая страхование.

2. После протоколирования, все сделки обычно классифицируются по группам, исходя из общих характеристик.

3. Предприниматель может получить необходимую информацию о приобретениях, продажах и других сделках за определенный период времени.

4. Бухгалтерская система – запись и обработка бухгалтерских данных.

5. Бухучет делится на 2 главные категории: управленческий учет и финансовый учет.

1. ACCOUNTING

Anything of value that a business or organization owns is commonly known as an asset. Asset accounts include cash, which is the money on hand or in the bank; furniture and fixtures, accounts receivable, the claims against customers that owe money; stock or inventory; office supplies; and many others that show what the organization owns.

Debts owed to creditors are known as liabilities. If money is owed to an organization or person for things or services purchased on credit, this liability is called an account payable. Other liabilities include wages or salaries that are owed to employees or taxes that have not yet been paid.

The value of the business to the owner or owners is known as capital. Other terms used to designate capital are proprietorship, owners` equity (usual abbreviated OE), ownership or net worth. A separate account is kept for each asset, liability and capital item so that information can be recorded for each of them. Accounts are also maintained for income and for expenses, and like assets, liabilities, or capital these accounts are also entered in the ledger, which is detailed listing of all the accounts of organization. Entries from all the journals are transferred to the ledger at regular intervals. This process is called posting and done monthly.

All transaction affect at least two accounts. Each transaction must be analyzed to determine which accounts are affected, and whether they should be increased or decreased. An entry made on the left-hand side or column of an account is called a debit, while an entry made on the right-hand side or column is a credit. Debit is usually abbreviate DR, at one time meant value received, or literally he owes. Credit usually abbreviate CR meant value parted with, or literally he trusts. In modern bookkeeping, debit refers only to the left-hand side of an account, whereas credit refers to the right-hand side. Some bookkeepers use a far right-hand column to keep a n up-to-date balance of the account.

Managerial accounting – is used to provide information and analyzes to managers to within the organization to assist them to a decision making.Managerial accounting is concerned with measuring and reporting costs of production, marketing, and other functions; preparing budgets; checking whether or not units are staying within their budgets (controlling); and designing strategies to minimize taxes.

Financial accounting – differs from managerial accounting because the information and analyzes are for people outside of the organization. This information goes to owners and prospective owners, creditors and lenders, employee unions customers, supplier, governmental units, and the general public. These external users are interested in the organization`s profits, its abilities to pay the bills, and other financial information. Much of the information is contained in the annual report, a yearly statement of the financial condition and progress of the organization. Various quarterly reports keep the users more current. Financial accounting reports answer such questions as following:

Has the company`s income satisfactory? Should we invest in this company?

Should we loan money to this company? Will it be able back the money back?

Is it financially strong enough to provide permanent employment?