VIII. Complete the sentences using “debit” or “credit”

1. If you buy new assets, you ............. the cash or capital account.

2. If you pay some bills, you ............... the liabilities account.

3. If you buy materials from a supplier on 60 days’ credit, you .......... the purchases account and ............ the supplier’s account.

4. If you sell something to a customer who will pay 30 days later, you .......... the sales account and ............... the customer’s account.

IX. Think over the questions. Give extensive answers

1. What qualities does a good bookkeeper need?

2. Would you like to work as a bookkeeper?

X. Test your English

Fill in the missing words or phrases in the sentences below. Choose from the box.

authorization batch beneficiary bought carried cleared contra discrepancies petty cash remitter threshold transaction

1. Small amounts of money which are paid out for things such as petrol, soap and bus fares are usually recorded in the petty cash book.

2. The account which receives payment is known as the______________ while the account sending payment is the ______________.

3. Each single movement of money in the account is known as a ______________.

4. At the beginning of each month the balance from the previous month is recorded at the top of the accounts as _________ forward and at the end of the month as balance __________forward.

5. The bank statement should be checked against the cash book to make sure the figures are the same and that there are no _________.

6. When several payments are made by computer banking they are normally transmitted to the bank together in a __________.

7. If double entry has taken place within the cash book the item does not need to be entered in another book as double entry and the item is known as a ____________.

8. When a cheque is received and paid into an account it will be debited to the account once it has been ____________.

9. Before instructions can be transmitted to the bank it is necessary to have __________ from one, two or possibly three executive officers.

10. There will normally be a maximum amount of money which can be transferred from an account this is known as the ____________.

Key: 11 Cash accounts

Теxt 2.3 accounting policies and standards

1. Practice the pronunciation of the following words

investor, worth, regularly, calculate, authorities, valuation, measurement, accepted, generally, official, international, technical, financial, conventions, written, law, consistency, mention, enable, previous, provision, various, view, depreciation, amortization, estimated, concern

2. Read and memorize the following words and word-combinations

   • to be worth – вартий; що має ціну;

   • to calculate profits or losses – підраховувати прибутки та збитки;

   • methods of valuation – методи оцінювання;

   • methods of measurement – методи вимірювання;

   • Generally Accepted Accounting Principles (GAAP) – загальноприйняті принципи бухгалтерського обліку;

   • International Financial Reporting Standards (IFRS) – Міжнародні стандарти фінансової звітності(МСФЗ);

   • International Accounting Standards Board – Міжнародна Рада по стандартам фінансового обліку;

   • written down in a law – записаний в законі;

   • to be consistent – бути послідовним;

   • the consistency principle – принцип послідовності;

   • reveal – відкривати; виявляти; показувати;

   • Statement of Accounting Policies – формулювання облікової політики;

   • depreciation – амортизація; спрацювання; зниження вартості активів у бухгалтерській звітності;

   • the historical cost principle – принцип первинної вартості;

   • replacement cost – відновлювальна вартість; витрати на заміну;

   • a going concern – підприємство, яке функціонує; діюче підприємство; концепція безперервності; дієздатне підприємство;

   • the current value of the assets – поточна вартість активів.

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