- •Передмова
- •I. Introduction into modern accounting accounting
- •I. Practice in reading these words and word-combinations:
- •II. Read the text.
- •III. Answer the questions based upon the text.
- •IV. Choose the necessary word and put it in the sentence.
- •Conversation in a company cafe
- •Read the dialogue in pairs. Be ready to dramatize it with you group mates.
- •II. Imagine that you work as an accountant in a big enterprise. Answer the following questions
- •III. Make up the dialogue about accounting:
- •IV. Translate from Ukrainian into English.
- •The accounting profession
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out the main features of accounting profession.
- •III. Use the information from the text to complete the sentences.
- •IV. Answer the questions based on the text given below:
- •Fields of accounting
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to learn about the main fields of accounting.
- •III. Use the information from the text to complete the sentences.
- •IV. Answer the questions after the text
- •Functions of accounting
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out the functions of accounting and bookkeeping.
- •III. Complete the sentences using information from the text.
- •IV. Answer the questions after the text.
- •Areas of accounting
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out the areas of accounting and their scope of activity.
- •Particular – певний, специфічний
- •III. Complete the sentences using information from the text.
- •IV. Match each term in the left column with the definition in the right column:
- •V. Answer the questions after the text:
- •What kinds of people make good accountants?
- •I. Read the following words:
- •I. Read the text to find out the qualities that make people good accountants.
- •II. Answer the following questions:
- •III. Join the following pairs of sentences by using:
- •IV. What particular skills do you think different kinds of accountants need?
- •V. Write a brief description of the qualities needed for the accountant's job so that they are mentioned in order of importance, using the following word-combinations:
- •What is the difference bitween bookkeeping and accounting?
- •I. Practice in reading these words:
- •II. Read the text to find out the differences between the terms “accountant” and “bookkeeper”.
- •Comments
- •II. Answer the following questions:
- •II. The nature and purpose of accounting the main users of accounting information
- •I. Read the following words and word-combinations:
- •II. Read the text to find out the needs of different users.
- •Comments
- •V. Answer the following questions:
- •Desirable qualities of financial information
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out what sort of qualities accounting information should possess to be useful for users.
- •IV. Rearrange the following sentences to make a text.
- •V. Read the text again to answer the following questions:
- •The types and the titles of accounts
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out what sort of accounts different companies have.
- •V. Use the information from the text to complete the sentences.
- •VI. Read the text again to answer the following questions.
- •The ledger – the main book of accountants
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out the information about the history of the ledger appearance and its usage in the accounting practice.
- •III. Rearrange the following sentences to make a text.
- •IV. Use the information from the text to complete the sentences.
- •V. Read the text again to answer the following questions:
- •Accountancy in a free-market economy
- •I. Read the dialogue in pairs. Be ready to dramatize it with your group mates.
- •III. The double-entry system the double entry system – the basic method of accounting
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out: 1) when the double-entry system was introduced in Britain and what its significance for accounting practices was; 2) what enterprise in Russia used this system first.
- •VI. Read the first paragraph of the text again to decide which of the following statements best expresses its main idea.
- •V. Read paragraph 2, then complete the following statements.
- •Accounting systems
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out what factors influence the choice of an accounting system.
- •IV. Read paragraph 1 again. Which of these phrases best serves as a title for it?
- •VI. Read the text again to answer the following questions.
- •IV. Financial statements accounting communication through financial statements
- •I. Practice in reading these words and word-combinations:
- •II. Read the text to find out through what financial statements accounting information is communicated to users.
- •IV. The following sentences are a summary of paragraph 1, but all its statements are in a mess. Put them into a logical order.
- •VI. Answer the following questions.
- •Financial statements analysis
- •I. Practice in reading these words and word-combinations:
- •I. Read the text to find out why the past and present information is important for future decisions.
- •III. Here are six statements about the text. Some of them are true and some are false. Read each statement and then check the text quickly whether it is true. Do one at a time.
- •Accounts and balance sheets
- •I. Read the following words and word-combinations:
- •The balance sheet
- •I. Read the following words and word-combinations:
- •II. Read the text to find out the basic components of a balance sheet.
- •A bank accountant's job
- •I. Read the dialogue in pairs. Be ready to dramatize it with your group mates.
- •Discussion
- •V. Auditing what is auditing
- •I. Answer the questions to part I:
- •I. Answer the questions to part II:
- •I. Answer the questions to part III:
- •II. Find the English equivalents in the left-hand column for the following words:
- •Auditing and auditors
- •Sample auditor's unqualified opinion
- •I. Indicate whether each of the following statements is true or false.
- •II. State which of the following types of opinion an auditor should issue for each example:
- •Discussion
- •VI. Professional terms
- •Vocabulary Practice
- •The work of the accountant
- •Vocabulary to be memorized
- •To gain
- •Momentous
- •What should a modern accountant be like?
- •Vocabulary to be memorized
- •From the early history of accounting
- •Vocabulary to be memorized
- •Vocabulary to be memorized
- •The faculty of accounting and finance at birmingham university
- •Vocabulary to be memorized
- •The distinction between auditing and accountancy
- •Vocabulary to be memorized
- •The role of accounts
- •Vocabulary to be memorized
- •From the history of the double-entry system
- •Vocabulary to be memorized
- •Accounting conventions and principles
- •Vocabulary to be memorized
- •The ledger
- •Vocabulary to be memorized
- •Relationships between financial statements
- •Vocabulary to be memorized
- •A critical appraisal of the balance sheet
- •Vocabulary to be memorized
- •Professional ethics of accountants
- •Vocabulary to be memorized
- •Setting accounting and auditing standards internationally
- •Vocabulary to be memorized
- •What accounting tasks can be done with a help of a computer?
- •Vocabulary to be memorized
- •Some leading accounting organisations of great britain
- •Vocabulary to be memorized
- •Making a career in accounting
- •Vocabulary to be memorized
- •Accounting in the future
- •Vocabulary to be memorized
- •The accounting system of great britain and northern ireland: it's general regulatory scheme in relation to ukrainian accounting
- •Vocabulary to be memorized
- •Check yourself. Choose the best alternative to complete the sentence.
- •Reference literature
- •Contents
- •I. Introduction into Modern Accounting
A critical appraisal of the balance sheet
Vocabulary to be memorized
bias упереджене ставлення, упередженість, personal bias особиста упередженість
to catch тут уловити, схопити, to catch the image of the business уловити (і передати) імідж підприємства
confuse плутати
to deduce виводити (висновок, формулу і т.п.)
depreciation знос, амортизація, знецінення, зниження вартості
end кінець, at or near to the year end в кінці або ближче до кінця року
executive фахівець, співробітник, службовець
to exclude виключати, to exclude explanations виключити пояснення
extent ступінь, міра, to а full extent в повній мірі
to ignore ігнорувати
less тут мінус, historical cost less depreciation первинна вартість мінус амортизація
to be liable to підлягаючий чому-небудь
misleading оманливий, It is misleading to think that... Неправильно думати, що ...
to meet the changes відповідати змінам
to reach досягати
reason причина, for many reasons з багатьох причин
rentals сума орендної платні, rentals due сума орендної платні, що підлягає виплаті
temporally тимчасове
previous передуючий
outdated застарілий, несучасний
outstanding неоплачений
to update коректувати, змінювати відповідно до нових даних
unqualified некваліфікований, беззастережний
unexpired не минулий, невикористаний
value оцінна вартість, book value балансова вартість, market value ринкова вартість, valuation оцінка, визначення вартості, revalue переоцінювати
window dressing прикрашання, створення видимості високої ліквідності
Read the text to find out why the balance sheet cannot be regarded as a realistic guide to the value of a business.
The balance sheet is often criticised for many reasons. The first reason is that it just shows the position of the company at one point in time. This can be very different from the position of the same company a few days earlier or later than the balance sheet date. The second reason lies in the fact, that the balance sheet does not show the financial position of the company to a full extent. Some accountants see the balance sheet as a type of photograph catching the image of the business only at one point in time. So, this photograph is not representative of the whole subject matter.
Apart from that some companies, as a rule, try to take actions to improve their balance sheet positions temporally at or near to the year end. Accountants usually call these actions "window dressing".
The third reason is that balance sheet gives no information about the past or the future. It does not tell the reader how the business reached its present position. Moreover, it provides little information from which a trend can be deduced unless comparison is made with figures from previous years.
As is known, the fixed assets of the business are recorded at historical cost less depreciation, leaving the unexpired portion of capital cost. This historical record is not a statement of current worth of the assets. But many investors confuse the book value of the assets with their real or market value. Thus, the balance sheet cannot be regarded as realistic guide to the value of the business. Besides, some companies revalue their assets from time to time in order to update their balance sheets. This is generally done to meet the changes in the value of assets owned by the business. It should be noted that such valuations are expensive and liable to personal bias on the part of the values. So, they not carried out annually and the asset values shown in the balance sheet soon become outdated again.
It is misleading to think of the balance sheet as a means of valuation since the value of shares in a business depends on the financial climate in the market.
And last but not least is that not all the assets of a business are shown in the balance sheet. For example, such unquantifiable assets as labour relations or a team of hardworking executives are usually ignored. Some liabilities are also excluded. For example, the rentals due future years on different contracts will be excluded. The explanation is quite simple. These rentals will not be outstanding at the balance sheet date.
Answer the following questions.
What is the balance sheet often criticized for?
How do accountants see the balance sheet?
Is the balance sheet representative of the whole subject matter?
What actions are called window dressing in accounting?
What is the third reason for which the balance sheet is often criticised?
What sort of information does the balance sheet provide little of?
Why do some companies revalue their assets?
Why are valuations carried out only annually?
Why is it misleading to think of the balance sheet as a means of valuation?
What assets of a business are not shown in the balance sheet?
What liabilities are also excluded from the balance sheet?