Unit 2. Accounting.

Text 1. Read and translate.

Accounting is frequently called the “language of business”, because of its ability to communicate financial information about an organization. An effective accounting system must include accurate collecting, recording, classifying, summerizing, interpreting and reporting of information on the financial status of an organization.

The accounting process follows accounting principles and rules. Regardless of the type of business or the amount of money involved common procedures for handling and presenting information are used.

Incoming money (revenues) and outgoing money (expenditures) are carefully monitored, and transactions are summerized in financial statements, which reflect the major financial activities of an organization.

Two common financial statements are the balance sheet and the income statement.

The balance sheet shows the financial position of the company at one point in time, while the income statement shows the financial performance of a company over a period of time. Financial statements allow interested parties to compare one organization to another and/or to compare accounting period within one organization.

People who specialize in accounting are known as accountants whose job is to keep and check financial accounts. The chief accounting officer of a large company is the Controller, or Comptroller. Controllers responsible for measuring the company's performance. They interpret the results of the operations, plan and recommend future action. This position is very close to the top executives of the company.

Bookkeepers deal in taxes, cash flow, which in­clude cash receipts and cash disbursements, sales, purchases and different business transactions of the company. Bookkeepers first record all the ap­propriate figures — in Journals. At the end of a period, usually a month, the totals of each book of original entry are posted into the proper page of the Ledger. The Ledger shows all the expenditures and all the earnings of the company. On the basis of all the totals of each account in the Ledger, the book­keeper prepares a Trial Balance. Trial Balances are usually drawn up every quarter.

Auditors are usually independent certified ac­countants who review the financial records of a company. These reviews are called audits. They are usually performed at fixed intervals — quar­terly, semiannually or annually. Auditors are em­ployed either regularly or on a part-time basis. Some large companies maintain a continuous in­ternal audit by their own accounting departments. These auditors are called internal auditors.

Auditors see that current transactions are recordered promptly and completely. Their duty is to reduce the possibility of misappropriation, to identify mistakes or detect fraudulent transactions. Then they are usually requested to propose solutions for these problems.

Thus auditors review financial records and re­port to the management on the current state of the company's fiscal affairs in the form of Audi­tor's Report or Auditor's Opinion.

Найдите значение слов в словаре:

accounting system	accounting	ability
to communicate	include	collect
collecting	record	recording
classify	classifying	summerize
interpret	repast	follow
principles	rule	regardless
amount of money	involve	common procedures
handle	present	incoming money (revenues)
outgoing money (expenditures)	transactions	financial statement
reflect	major	activity
balance sheet	income statement	show
allow	interested parties	to compare
accounting periods	check	bookkeeper
bookkeeping	tax	cash flow
sales	purchases	business
record	appropriate figures	original entry
the totals	the ledger	expenditures
earnings	Trial Balance	responsible for
audit	independent	review
to perform	performance	fixed intervals

1. Прочитайте следующие утверждения и определите какое из них верное, а какое нет.

1. An effective accounting system includes accurate collecting, classifying and reporting of financial information.

2. The accounting process doesn't follow any principles and rules.

3. The procedures for handling and presenting information depend upon the type of business or the amount of money involved.

4. The balance sheet and the income statement are the main financial statements.

5. The financial position of the company at one point in time is shown in the income statement.

6. An accountant keeps and checks financial accounts.

2. Образуйте однокоренные слова.

Count –

Finance –

Keep –

Collect –

Report –

Inform –

Collect –

Classify –

3. 1. accounting system	a)предоставлять информацию
   2. reflect the major financial activities of a company	b) состояние финансов
   3. interested party	c)заинтересованная сторона
   4. present information	d) балансовый отчет
   5. balance sheet	e) отражать, показывать
   6. financial status	основную финансовую деятельность компании

4. Составьте 6 вопросов к тексту (общих и специальных)

5. Ответьте на вопросы к тексту.

1. Which reviews are called audits?

2. On what basis are auditors employed?

3. What is the aim of maintaining an internal audit?

4. What are the responsibilities of a bookkeeper?