ACCOUNTING. ► Ex. I. Scan through the text

► Ex. I. Scan through the text. Restore the word order in the questions that follow and answer them.

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Accounting and its financial statements. Accounting is the systematic development and analysis of information about the economic affairs of an organization. This information may be used in a number of ways: by the organization's managers to help them plan and control the organization's operations; by owners and legislative bodies to help them appraise the organi­zation's performance and make decisions as to its future; by owners, lenders, suppliers, employees, and others to help them decide how much time or money to devote to the organization; by governmental bodies to determine how much tax the organi­zation must pay; and by customers to determine the price to be paid. Accounting provides information for all these purposes through the maintenance of files of data, analysis and interpreta­tion of these data, and the preparation of various kinds of re­ports. These reports are called financial statements. Three fi­nancial statements will be discussed; the balance sheet, the in­come statement, and the statement of cash flows. Accountant is a professionally qualified person who is able to record, keep, check, and prepare financial statements.

Accounting бухгалтерська справа; legislative body - законодавчий орган; appraise [a'preiz] оцінювати; performance – показники роботи; devote [di'vaut] приділяти; data ['deital / ['da: ta] - данні; financial statement - фінансовий звіт; balance sheet балансовий звіт; income statement – звіт про доходи; cash flow statement – баланс зворотніх коштів; financial situation - фінансове становище.

I) What by the term " accounting*' is meant?

2) What people with accounting and why deal?

3) What does accounting its information through provide?

4) What are three financial statements mentioned in the text?

5) What by the term " accountant" is meant?

► Ex. II. Agree or disagree with the following statements.

1) Accounting is the systematic analysis of illegal ways of pay­ing less tax. 2) The organization's managers to plan and control the organization's operations use intercom. 3) Owners to ap­praise the organization's performance use illegal tapping. 4) Lenders to decide how much time or money to devote to the organization use the newspapers that print shocking stories about people's personal lives. 5) Governmental bodies to deter­mine how much tax the organization must pay use tax legisla­tion. 6) Customers to determine the price to be paid use their common sense. 7) Accounting provides its information through Internet. 8) Accounting provides its information through the preparation of various kinds of statements. 9) Balance sheet is a statement of how much money a business has earned and how much money it has paid for goods and services. 10) Cash flow is the movement of money coming into a business as income and going out as wages, materials etc. 11) Income is a gain or recurrent benefit usually measured in money that derives from capital or labour. 12) It's only reasonable that people on a high income should pay more tax. 13) Accountant is a professionally qualified person who is able to find legal ways of paying less tax. 14) Accountant is someone who does his best to conceal unlawful income.

► Ex. Ill Translate the following questions and answer them.

1) Бухгалтерське справа - це систематичний аналіз інформації про економічне становище організації.

2) Фінансовий звіт - це звіт про фінансовий стан організації. 3) Документами фінансового звіту являються: балансовий звіт, звіт про доходи і баланс обігових коштів, чи не так? 4) Балансовий звіт - це доповідь про фінансове становище організації на певну дату? 5) Звіт про доходи - це документ про грошові або матеріальні ресурси, що надходять до держави, підприємства, установи або окремій особі в процесі розподілу національного доходу? 5) Баланс оборотних коштів – це звіт про зміни у фінансовому становищі організації?

► Ex. IV. Complete the following statements. Choose one topic to speak about a) what people use accounting and why; b) three fi­nancial statements. Retell the text Accounting and its reports.

1) Accounting is... 2) Accounting is used by managers to...

3) Accounting is used by legislative bodies to... 4) Accounting is used by lenders and employees to... 5) Accounting is used by governmental bodies to... 6) Accounting is used by custom­ers to... 7) Accounting provides... 8) Three financial state­ments are...

► Ex. /. Scan through the text. Restore the word order in the questions that follow and answer them.

Balance sheet. A balance sheet describes the resources that are under a company's control on a specified date and indicates where these resources have come from. Any balance sheet con­sists of three major sections: (1) the assets: material values and money resources owned by the company; (2) the liabilities: the funds that have been provided by outside lenders and other creditors in exchange for the company's promise to make pay­ments or to provide services in the future; and (3) the owners' equity: the funds that have been provided by the company's owners or on their behalf. The list of assets shows the forms in which the company's resources are kept; the lists of liabilities and the owners' equity indicate where these same resources have come from. The balance sheet, in other words, shows the company's resources from two points of view, and the following relationship must always exist: total assets are total liabilities plus total owners' equity. This same identity is also expressed in another way: total assets minus total liabilities equals total own­ers' equity. In this form, the equation emphasizes that the own­ers' equity in the company is always equal to the net assets (as­sets minus liabilities). Any increase in one will inevitably be accompanied by an increase in the other, and the only way to increase the owners' equity is to increase the net assets.

Balance sheet - балансовий звіт; assets ['aesets] - активи; liabilities [laia'bilitiz] – зобов’язання; in exchange for – в обмін на; equity ['ekwiti] – приватні кошти; чиста вартість капитала компанії; on behalf of – від імені коо – небудь; identity [ai'dentiti] - відповідність; equation [i'kwei ʃ (ə)n] - рівняння; inevitably [in'evitabli] - неминуче; accompany - супроводжувати; current assets - зворотний капітал; fixed assets - основний капітал; in- tangible assets - нематеріальні активи; real estate - нерухомість; trademark - торгова марка; goodwill - репутація компанії.

1) What a balance sheet describe does? 2) What a balance sheet does indicate? 3) What sections any balance sheet does consist of? 4) What by the term " assets" is meant? 5) What is by the term " liabilities" meant? 6) What funds the owners' equity in­clude does? 7) What the list of assets does show? 8) What the lists of liabilities and the owners' equity do indicate? 9) What equation the balance sheet must show? 10) What this equation does emphasize? 11) What the only way to increase the owners' equity is?

► Ex. II. Translate the following questions and answer them.

1) Як називається документ бухгалтерського обліку, який в грошовому вигляді дає уявлення про стан справ фірми на певну дату? 2) Як називається частина бухгалтерського балансу, що відображає всі належать матеріальні цінності і грошові кошти, що належать даному підприємству на певну дату? 3) Активи компанії-це оборотний капітал компанії, основний капітал компанії та нематеріальні активи компанії 4) Оборотний капітал компанії - це готівкові гроші та сировина, чи не так? 5) Основний капітал компанії - це нерухомість, машини й устаткування, чи не так? 6) Нематеріальні активи компанії - це патенти, репутація і торгової марка, чи не так?

► Ex. III. Analyse the table Balance Sheet and retell the text of the same name.

Assets

Current assets

Cash

Marketable securities

Accounts receivable

Inventories

Total current assets

Long-term investments

Plant and equipment

Original cost

Less: accumulated depreciation

Total assets

$100

$480

$300

110 $190

$740

Liabilities and owners' equity

Current liabilities
Wages payable $ 20

Accounts payable 160

Total current liabilities $ 180

Deferred taxes:

Long-term bonds payable

Total liabilities

Owners' equity

Common stock:

Retained earnings

Total owners' equity

Total liabilities and owners' equity