Comments

to make informed judgements and decisions – приймати інформативно обґрунтовані думки та рішення

livelihood – засоби до прожиття

to allocate available recourses – розміщувати наявні ресурси

scarce – недостатній; мізерний; рідкісний

to rely on – покладатися, сподіватися на

to increase wealth – збільшувати добробут

lender – кредитор

supplier – постачальник

to exercise a day-to-day control of the business – здійснювати щоденний контроль бізнесу

III. Re-read the text to find out which of the following statements is correct.

1. Short-term lenders view liquidity as an important indicator of businesses' ability to pay.

2. The efficient allocation of resources requires the use of reliable information.

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.

IV. Which of users need accounting information: 1) owners of businesses, 2) lenders of money, such as banks, 3) suppliers of goods and services, 4) managers of a business, 5) customers of a business, 6) employees, 7) governments, 8) the public, 9) competitors

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?

V. Answer the following questions:

1. What kind of information permits users to make informed judgements and decisions?

2. Why do so many users are in need of accounting information?

3. Why does accounting act as a valuable aid to economic decision-making?

4. Why is it necessary for accounting to establish clearly the major users of its information?

5. How many major users of accounting information have been mentioned in the text?

6. What do the owners need accounting information for?

7. What are lenders' information requirements?

8. What kind of accounting information do managers require?

9. In many ways long-term lenders have needs similar to those of the owners of a business. In what ways do you think their needs are similar?

10. Do you think that the information requirements of certain users should be given priority?

11. All the users of accounting information have one thing in common. What is it?

Desirable qualities of financial information

I. Practice in reading these words and word-combinations:

objectivity, impartiality, timeliness, freedom from bias, to compare, comparability, understandability, compromise, unnecessarily.