Vocabulary Practice

1. What is an audit?

2. What is internal control?

3. What is a voucher? Name two kinds of vouchers.

4. What is an internal audit?

5. What are standard operating procedures'?

6. What is an independent audit? Who conducts most independent audits?

7. What does fairness describe in relation to financial records?

8. What is the scope paragraph?

9. What does field work refer to in auditing?

10. What is the opinion paragraph?

11. What is a liability? What are some examples of liabilities?

12. What does capital mean? What other terms are often used instead of capital?

13. What is an account? Give an example of an account. What abbreviation is commonly used for account?

14. What is double-entry bookkeeping? How does it differ from single-entry bookkeeping?

15. What is a debit? What kind of accounts is increased by debiting? What abbreviation is commonly used for a debit?

16. What is a credit? What kind of accounts is increased by crediting? How is it commonly abbreviated?

17. What is a journal? In double-entry bookkeeping, what is entered in the journal?

18. What is a ledger? What is the relationship of a journal to a ledger? What does posting mean?

19. What does to foot mean?

20. What is a trial balance?

Match the phrase on the left with the statement on the right.

1. Liability

2. Credit

3. Journal

4. Post

5. Footing

6. Account

7. Asset

8. Trial balance

9. Proprietorship

10. Debit

11. Ledger

1. Something of value to an organization.

2. The basic record in double-entry book-

keeping.

3. Owners' equity.

4. The left-hand column of an account.

5. The right-hand column of an account.

6. The test balance of the accounts.

7. A book of original entries.

8. The book that lists all of the accounts.

9. That which is owed by an organization.

10) To transfer entries from the journal to the ledger.

11) Totaling or adding column

ADDITIONAL READING

The work of the accountant

Vocabulary to be memorized

1. diverse різний, різноманітний, інакший; diverse in nature різноманітний за характером

2. to record записувати, реєструвати

3. to summarise підсумовувати, підводити підсумок

4. to verify перевіряти, контролювати, підтверджувати, вивіряти

5. significance значення

6. to be of great significance мати велике значення

7. to provide надавати, забезпечувати; to provide information надавати інформацію

8. supply надходження, поставка

9. supply of data надходження даних

10. an enterprise підприємство

11. a key problem ключова (головна) проблема

12. meaningful значимий, значущий

13. prompt швидкий; promptly швидко

14. To gain

15. Momentous

16. tedious нудний, стомливий

17. inherent притаманний, природжений

18. vital життєвий; насущний, суттєвий; vital information суттєва інформація

19. to enable давати можливість

20. to contribute сприяти; (по)жертвувати; співробітничати (to - в)

21. to make a contribution робити внесок

22. to mould формувати

Read the text to find out what the accountant's work deals with and what makes his work important.

The work of the accountant is said to be diverse in nature but basically it deals with recording, summarising, analysing and verifying business transactions in books of accounts. The task of examining and analysing accounts is one of great significance because it makes it possible to provide information necessary for economic management. There is usually an unlimited supply of data available in an enterprise. The key problem facing accountants is the selection for presenting to the management only meaningful information. And the accountant is effective if he supplies information promptly and in a clear language.

Great and momentous changes are known to have taken place over recent years and the accountancy profession has gained an important status. The role of the accountant has changed and his functions have not only deepened but widened as well. The modern accountant is not like the old book-keeper - now a legend - who was often described as a dried-up narrow-minded person ignorant of everything but tedious operations with figures. The modern accountant begins to play an increasingly important role in business activity. He is now expected to perform various duties and his tasks are wider than they were a decade or two back. He acts as an adviser to management and helps the latter in decision-making. Under modern conditions only accountants can analyse business situations and minimise the degree of uncertainty inherent in every business decision. By providing vital information to the management the accountant enables them to assess their own performance and what is more important it helps them devise ways to improve their efficiency and performance.

In many countries of the world accountants are also believed to make a valuable contribution towards promoting economic growth of a country. Economic thinking is considered to be moulded by proper accounting information as well.

Answer the following questions.

1. What is the main task of accountants?

2. What exactly attracts lots of young people to the field of accounting?

3. What is the key problem facing accountants?

4. What changes have taken place in accounting?

5. What does the modern accountant look like?

6. What changes should be introduced in accounting education?

7. Why does the accountant begin to play an increasingly important role in business activity?

8. What is the influence of accounting information on economic growth of a country and economic thinking?