3.It is very difficult to classify the major users of accounting information.
4.When making investment decisions potential owners are not usually interested in assessing future returns from their investments.
5.Managers need information only about finance and investments.
6.Governments may require information to assess the amount of likely returns from investments.
7, Competitors may require information concerning performance of the business if they want to make relative comparisons.
Task 4. Which of users need accounting information:
1.to make investment decision?
2.to assess liability for taxation?
3.to make sure that a business is an important supplier of goods and services?
4.to establish that the business is able to pay?
5.to control business activity?
6.to decide whether it makes sense to provide finance to a business?
7.to find out prospects of employment?
Task 5. Rearrange the sentences to form a text:
1.Different users need economic information for different purposes.
2.Thus accounting is a form of service which helps in economic decision-making.
3.Users of economic information require it to allocate resources effectively.
4.The aim of accounting is to measure economic events and present this information to users.
5.This is very important because these resources are generally scarce as compared with needs.
Task 6. Complete the following sentences:
1.Tax authorities require the information about …
2.….employ accountants.
3.External users want to know …
4.Large businesses …
5.Small businesses …
Task 7. Give Russian equivalents of the following phrases:
To provide information; transactions entered into; to do smb.’s best; to be going on; to fall into; security for smth; to meet bills; an overview of the state of a business;
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costs incurred; to be assured of smth.
Task 8. Say whether the following statements are true or false. Comment on the true statements and correct the false ones.
1.Information data for internal users are often used as a basis for future forecasts.
2.Accountants in the branches of government work on a fee basis.
3.As a rule, private accountants are paid a fee.
4.Auditing involves setting up financial information.
5.Audit helps forecast the future development of a business.
6.Internal audit is conducted to maintain a system of control in a business.
7.The field of accounting is divided into two broad divisions.
Task 9. Answer the following questions by trying to explain why:
1.…do many people want to know the financial position of the company?
2.…do creditors need to be sure that loans will be repaid to them?
3.…do investors want to know how the business is going on?
4.…do external or internal users need to know profits of a company?
5.…does a supplier or a buyer need to be assured that their bills will be met?
6.…is financial or management accounting concerned with financial information for internal users?
Task 10. Give extended answers to the following questions.
1.Has data-processing equipment increased the speed of providing financial information?
2.Have tax laws become more complicated?
3.Do all branches of government employ accountants?
4.Do private accountants handle tax services?
5.Are financial accounts expressed in monetary or non-monetary terms?
Task 11. Give a summary of the following text.
IT IS INTERESTING TO KNOW…
TEXT B. THE LEDGER — THE MAIN BOOK OF ACCOUNTS
All financial records in accounting are kept in a book called a ledger. They say it takes its name from a Saxon word meaning “the one that lies” on a merchant’s counter.
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The word means “lies down”, it has nothing to do with telling lies. The shelf on which it lay became known as the ledge. In the earliest days of accounting the ledger lay on the ledge, usually under a window where the light was good. Clerks would record all the transactions in date order. Each page in the ledger was called an account. Each account had at the top the name of the person, or goods, or any other thing, which was being accounted for.
Businesses have become much larger today. It is not convenient to keep the ledger as a bound book. Instead, computer records, card indexes and loose-leaf books are being used. But still the main book of accounts is called the ledger and must be posted daily with all the transactions that take place.
WRITING
Task 1. Choose an appropriate word to fill in the spaces.
1.The _______ sets up a complete system for recording and analyzing the financial
affairs of an organization. |
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a) bookkeeping b) audit |
c) management |
d) accounting |
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2._________ establishes policies and directs the operations of an organization. |
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a) management |
b) auditor |
c) controller |
d) managerial accountants |
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3._________ accountants are paid a fee as a rule. |
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a) private |
b) governmental |
c) public |
d) administrative |
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4. |
Managerial accountants deal with financial reports necessary to ______ . |
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a) government |
b) management c) tax organization d) nonprofit organization |
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5. |
A_______ of the financial records of a business by an accountant is called an audit. |
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a) record |
b) utilization |
c) review d) analyzing |
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6. |
Business ________ should not be planned without the proper analysis of the |
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accounting information. |
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a) advertising |
b) expansion |
c) expertise |
d) control |
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7. |
The accountant sets up a bookkeeping ________ . |
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a) actions |
b) records |
c) transactions |
d) system |
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Task 2. Complete the following sentences.
1. … work on a salary basis.
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2.Suppliers of goods want to be sure …
3.…are expressed in monetary terms.
4.Internal users need detailed information…
5.Introducing new products needs…
6.…for the design and implementation of an accounting firm.
7.An accountant is interested in…
8.…should not be planned without the proper analysis of financial information.
9.He analyses and interprets …
10.… work for manufacturing firms.
Task 3. Make up questions to which these sentences would be answers.
1.They include managers and owners who work in the business.
2.It is concerned with the providing information for external users.
3.The data are expressed in monetary terms.
4.Governmental and institutional accounting are similar in the way they receive and spend funds.
5.No, governmental accountants only work on a salary basis.
6.Large corporations can employ hundreds of employees in accounting services.
7.They need to know the profits of a business to deduct taxes.
8.They should be assured that their bills will be met.
9.An accountant passes a series of exams and receives the certificate on a statewide basis.
10.An accountant reviews financial records of a business.
Task 4. Translate the text into Russian:
The purpose of accounting is to provide economic information, which permits users of that information to make informed judgements and decisions. Users of economic information require this knowledge to help them decide how best to allocate available resources. As a rule, resources are generally scarce in relation to needs, and so users rely on accounting reports to ensure the efficient and effective allocation of supplies.
You can see that, essentially, accounting is a form of service. By measuring economic events and presenting this information to users, accounting acts as a valuable aid to economic decision-making.
Task 5. Translate these sentences into English:
1.Бухгалтерский учет показывает текущее финансовое положение компании.
2.Бухгалтерия документирует финансовую деятельность предприятия.
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3.Она ведет записи результатов финансовых сделок.
4.Учетные документы дают очень важные данные.
5.Они используются директорами, акционерами, банкирами, аналитиками и т. д.
6.Финансовые документы помогают принимать правильные решения.
7.Финансовые документы используются для получения будущего прогноза развития предприятия.
Task 6. Translate the following text into Russian:
TEXT C. ACCOUNTING AND AUDITING
Accounting is a basis and vital element in every modern business. It records the past growth or decline of the business. The accountant is responsible for the design and implementation of the accounting forms, the records, and the procedures. Modern accounting machines and data-processing equipment have substantially increased the speed with which the information can be made available to the management. But the accountant should be concerned with more than the record-making phase. Careful analyses and interpretation of these results and trends may suggest the ways in which the business may grow in the future. Expansion or reorganization should not be planned without the proper analysis of the accounting information. Introducing and selling new products uses accounting expertise. The accountant should be interested in the relationship between the financial results and the events, which have created them.
Auditing is an accounting function that involves the review and evaluation of financial records. Someone does it other than the person who entered the transactions in the records. Outside (independent) audit is a normal and regular part of business practice. Many companies conduct an internal audit to maintain a system of internal control. Internal auditors report to management on the current state on the company’s fiscal affairs. They report on any deviations from the standard operating procedures. They make suggestions to the management for improvements in them and make sure that all irregularities are corrected, that all departments follow the policies and procedures established by management. Accounting is one of the fastest-growing fields in the modern business world. Every new store, school, restaurant, or filling station, any new enterprise increases the demand for accountants.
SPEECH PRACTICE
Task 1. Explain why accounting is a basic element in modern business. What duties are involved in the job of an accountant?
Task 2. Discuss with your partner why accounting is a useful aid to management.
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