II. Retell the text. Financial institutions

I. Study the vocabulary:

savings bank ощадний банк

life-insurance company компания,що страхує життя

credit union кредитна спілка

pension fund пенсійний фонд

brokerage firm брокерська фірма

II. Read and translate the text.

There are different types of financial institutions. They are mostly the same in all countries and act as financial intermediaries between savers and borrowers and present a payment mechanism. They perform two central functions: create different financial assets and liabilities, and provide specific financial services.

At the centre of the financial structure of any country is its central bank (in Ukraine it is the National bank of Ukraine, in the USA – the Federal Reserve System, in Great Britain – the Bank of England). It advises the Government to make the country`s financial policy, issues national currency, regulates money supply and supervises other financial institutions such as commercial and savings banks.

Commercial banks receive deposits from their customers and give different loans and other financial services to businesses and individuals, finance industry for commerce, sell and exchange foreign currencies, invest great sums of money for the price known as interest rate.

Non-bank financial institutions are: Life-insurance companies, Credit unions, Pension funds, brokerage firms, commercial/consumer financial companies. All of them using their own or customers` funds make secured loans for business purposes charging high interest rate, invest money into conservative securities (bonds) or speculate securities (stocks and bonds) at the Exchange.

Most financial transactions take place by checking (deposit-GB) account, so most of money is in checking account balance. One-fourth of any countries money is in cash: bills (notes – GB) and coins. People also use money substitutes: different credit cards, issued by banks and accepted by hotels, department stores and restaurants.

III. Retell the text. So what bookkeepers and accountants do?

I. Study the vocabulary:

accountant бухгалтер (особа, яка відповідає за перевірку і аналіз фінансової звітності)

bookkeeper бухгалтер (особа, яка відповідає за фінансову звітність)

cash готівка

flow потік (грошей)

disbursement виплата грошей

purchase закупка

to post переносити в головну бухгалтерську книгу

expenditure витрати

earnings прибутки

balance баланс

trial balance пробний баланс (перевірка правильності обліку шляхом щомісячного балансування активів та пасивів

to interpret тлумачити, интерпретувати

tax податок

II. Read and translate the text.

Bookkeepers deal in taxes, cash flow, which include cash receipts and cash disbursements, sales, purchases and different business transactions of the company. Bookkeepers must begin to record the data from the original transaction documents into books of original entry called journals. Journals are the books where accounting data are first entered. The term "journal" comes from the French word "jour", which means day. A journal, therefore, is where the day`s transactions are kept. At the end of a period usually a month the totals of journals 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 Balance are usually drawn up every quarter.

So a bookkeeper is busy keeping the books of account of a business, recording a profit and loss account and compiling the balance sheet.

Accountants classify and summarize the data provided by bookkeepers. They interpret the data and report them to management. They also suggest strategies for improving the financial condition and progress of the firm. Accountants are especially valuable for income tax preparation and financial analysis. They are "producers" of financial information, which is then made available to "consumers" such as owners and lenders. Accountant`s task is to follow accounting principles and rules, to check up correctness of accounting records and to evaluate financial position of an organization, as well as to advice the interested parties on financial matters.

Many business failures are caused by poor accounting practice.