8. What is accounting (облік)

My name is ……There are four main areas I want to talk about: 1) Accounting as "the language of business;

To begin, accounting is often characterized as "the language of business", as you can see, accounting is used in recording and interpreting basic economic data for individuals, businesses, governments, and other entities. In short, sound decisions, based on reliable information, are essential for the efficient distribution and use of scarce resources every entity has at its disposal. Therefore, accounting plays a key role in economic and social systems.

2) Accounting and its definition:

Let we look at the question, what accounting is and it becomes obvious, that there is no concise definition of "accounting". As a rule, people relate accounting to recording, sorting and data summarizing, business transactions, reporting and interpreting. As these words cover nearly everything, we may formulate the definition itself: accounting is the process of identifying, measuring and communicating of economic information that allows the users to take judgments and

decisions.

3) Accounting as a service activity:

Everybody realizes the fact that accounting is a service activity. Let's move to the fact that the most crucial function of accounting is the provision of quantitative information on economic entities. Here we are approaching an important facet of the field: financial statements, as only they are useful in making economic decisions as their role is: to inform investors, creditors and other users on a) making resource allocation decisions and\ or on assessing management. So, accounting answers a lot of utterly important questions on resources, debts, earnings, expenses, stocks, credits, expansion of the businesses selling prices, etc.

4) Accounting and bookkeeping, the most spread confusion of the terms.

And the last point focuses on the common confusion, that accounting and bookkeeping are the same ideas. So, let me sum up the idea. Bookkeeping is only part of accounting. It possesses the function of recording, and accounting includes much more: it analyzes and design, interpret and clarify the vision of future decisions. That brings me to the end of my presentation. Thank you for your attention.

9. Business Transactions and Financial Statements (фінансовий звіт та ділові операції)

My presentation covers two areas of research: business transactions and financial statements.

The assets of the company are presented by money resources or, in other words, by economic or service resources. Initially creditors and owners are the sources of the assets. Expenses are the assets used up to provide revenue. Income is the excess of assets received (revenue) over the assets used up (expense). A distinct feature of traditional accounting information is that it relies on a transfer or exchange between the business and outsiders. These exchanges are known as transactions. A transaction provides a means for measuring activity. We understand under the transaction the flow of economic resources from one accounting entity to another. Transactions can be classified in a number of ways: external, accrued, internal transactions.

The validity of the assumption that business activity of all types ultimately results in transactions is most important to the double-entry recording process.

The idea of an exchange underlines the concept of a transaction. The external transaction presupposes the exchange between the company and someone outside the company. Systematic recording of transactions provides a description of business activity.

Number two area of our research covers the questions of financial statements. The objective of financial statements is to provide information on the financial position (balance sheet), performance (income statement), and changes in the financial position (cash flow statement) of an entity. The adoption by Ukraine of internationally accepted accounting standards is a necessary measure to facilitate transparency and proper interpretation of financial statements.

The profit and loss account, known as income statement, summarizes the profitability of the company by balancing revenue against expenses. The balance sheet is a statement of what company owns and what it owes at a particular time. It consists of three major sections: assets, liabilities and equity.