Міністерство фінансів України Український державний університет фінансів та міжнародної торгівлі Кафедра іноземних мов

Навчально-методичні матеріали

з дисципліни «Іноземна мова за професійним спрямуванням»

для студентів II-III курсів денної форми навчання

за спеціальністю „Облік і аудит”

Київ 2011

ЗАТВЕРДЖЕНО: на засіданні кафедри іноземних мов

(протокол № 9 від 26.04.2011),

на засіданні Вченої ради факультету

(протокол № 9 від 24.05.2011)

УКЛАДАЧ: ст.викл. кафедри іноземних мов Строганова Г.О.

РЕЦЕНЗЕНТИ: зав.кафедрою іноземних мов доц. Литнєва Г.П.,

ст.викл. кафедри іноземних мов Тарасенко Т. В.

Unit 1 the double-entry system: the basic method of accounting

I. Read the following terms. Try to memorize them and use in your speech.

GLOSSARY

1.	double-entry system	система подвійного запису
2.	accounting record	обліковий запис
3.	merchant	торговець
4.	economic growth	економічний ріст
5.	economic development	економічний розвиток
6.	backbone	основа, сутність
7.	to have a positive effect (on smth.)	мати позитивний вплив (на щось)
8.	to evolve	розвиватися
9.	to penetrate	входити, проникати
10.	to offset	компенсувати
11.	to equal	дорівнювати
12.	to be in a balance	знаходитися у рівновазі

II. Consider the title. What do you know about the topic? Read the text to find out:

- when the double-entry system was introduced;

- the significance of the double-entry system for accounting practice.

1. The double-entry system, the backbone of accounting, evolved during the Renaissance. The first systematic presentation of double-entry book-keeping appeared in 1494. Its importance is difficult to appreciate. This technique made accounting records more comprehensive and orderly. Before the invention of double-entry book-keeping accounting records had been disorganized. Merchants literally had not known the sate of their finances. The use of this technique had a positive effect on both business and trade. Some scholars think that there was a close relationship between the adoption of the double-entry system and economic growth in many countries. In the Middle Ages the knowledge of this technique was a pre-condition of rapid economic growth of the most European countries. And the other way round, where this technique was lacking or slow to penetrate, economic development was delayed.

2. In Britain the first book on the double-entry system was written by one Hugh Old-Castle schoolmaster, who taught arithmetic. No copy of this first book has survived. Later some more books describing this new method were published. English businessmen began to employ this recording device. The primary advantage of the double-entry accounting, to many historians of accounting, was that it abolished confusion in the accounts by creating order out of chaos.

3. What is the significance of the double-entry system for accounting? The double-entry system is based on the principle of duality, which means that all economic events have two aspects – effort and reward, sources and uses — that offset or balance each other. In the double-entry system each transaction must be recorded with at least one debit and one credit, in such a way that the total amount of debits and the total amount of credits equal each other. Because of the way it is designed, the system as a whole is always in balance.

III. Which of the paragraphs deals with:

1) the first book on double-entry system in Britain;

2) a short description of the double-entry system;

3) the importance of the double-entry system for accounting.

IV. Read the first paragraph of the text again to decide which of the following statements expresses its main idea.

1. The double-entry system is a backbone of accounting.

2. The double-entry system was a pre-condition of rapid economic development.

3. The importance of the double-entry system lies in the fact that its use made accounting records more comprehensive.

V. Read the second paragraph, then complete the following sentences.

1. According to the text, the first book in Britain on the double-entry system … .

2. It was written by … .

3. No copy of this book … .

4. Later some more books on the double-entry system ... .

5. English businessmen began ... .

6. The advantage of double-entry lies in the fact that ... .

VI. Answer the following questions.

1. What is the double-entry system for accounting? When did it evolve?

2. When did the first presentation of the double-entry appear?

3. What was the importance of the double-entry system?

4. What was the state of affairs in accounting before the invention of the double-entry system?

5. What was the impact of the double-entry system on economic development of a country?

6. When was the first book on the double-entry system published in Britain?

7. What was the advantage of double-entry according to many historians of accounting?

8. Why is the double-entry system always in balance as a whole?