1. Accounting and accountancy (Бухгалтерский учет и бухгалтерия)

Accounting is the art of organizing, maintaining, recording, and analyzing financial activities. Accounting is generally known as the “language of business”. The account translates the accounting information into meaningful terms that are used by interest parties.

Accountants and statements they generate are primary source of used by everyone. The accountant keeps track of all business transactions. Most accounting information is stated in monetary terms and is designed to be useful in making economic decisions.

Financial accounting information is intended both for managers and for the use of parties external to the organization, including shareholders, bankers and other creditors, government agencies, and the general public. The external users of accounting information and the types of questions for which they seek answers can be classified as;

• Stockholders (prospective stockholders in a corporation, and their advisers – financial analysts and investment counselors.

• Creditors and lenders.

• Employees and their union.

• Customers.

• Governmental units.

2. Managerial accounting (Управленческий учет)

The manager of organization, who is charged with the responsibility of seeing that the enterprise is properly directed, relies upon accounting information provided to make appropriate decision. The accounting information specifically prepared to aid managers is called managerial (management) accounting information.

Managerial accounting information is used in three management functions;

• Planning. Planning is the process of deciding what actions should be taken in the future. An important form of planning is called budgeting. Budgeting is the process of planning the overall activity of the organization for a specified period of time, usually a year. Planing involves making decision.

• Implementation. Making plans does not in itself ensure that the plans will be implemented. In the case of the annual budget, each manager must take actions to provide the human and other resources that will be needed to achieve the planned results.

• Control. The process the managers use to assure that the employees perform properly is called control. Accounting information is used in the control process as a means of communication, motivation, attention-getting, and appraisal.

3. Financial statement of a bank

Financial statements provide information on a firm’s financial condition (or position), on changes in this position, and on results of operations (profitability)

There are four basic financial statements which are:

1. A balance sheet. The financial position of an accounting entity as of a specified moment in time is shown by a balance sheet. In fact, its formal name is statement of financial position. More specifically, the balance sheet reports the assets and equities and liabilities of the entity at the specified moment in time.

2. An income statement records the money a company makes or loses during a particular reporting period, using the accruals principle.

3. A statement of retained earnings reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements.

4. Statement of changes in financial position is a financial statement that outlines the sources and uses of funds and explains any changes in cash or working capital.