Writing

1. Write about long-term prospects of the banking business using the following:

traditional banks; increased competition in lending; to expand one's lines of business; a fusion of banking and other financial services; to launch something; a telephone and Internet bank; disintermediation; to raise money; proprietary trading; to cut costs; net banking; online banks; to move online; to come up with one's own Internet strategy; offline services.

2. Write an essay on the basis of one of the following statements (150-200 words):

1. The world might be faced with another full-scale banking crisis in one or more countries.

2. From an economic point of view, it would be best if bank supervision were centralized, either under the ECB or a new, independent European regulator.

3. Banks are likely to become more pan-European as the single currency encourages cross-border mergers and greater cross-border exposures.

Key vocabulary

current/deposit/savings/budget

specimen signature

cheque/Eurocheque/traveller's

cheque card

cash card

cash dispenser

honour a cheque

cancel a cheque

stop a cheque

paying-in/withdrawal/transfer slip

notice of withdrawal

counterfoil

negotiable securities

guarantor

overdraw

overdraft facilities

call in an overdraft

Base Rate

bank charges

standing order

direct debit

new_issue/bullion/Euro-bond

shipping/insurance/foreign

exchange market

bill of exchange

drawer

drawee

sight draft/bill

days after sight (d/s)

documents against payment (D/P)

documents against acceptance (D/A)

foreign bill

inland bill

clean bill

to discount a bill

to endorse a bill

dishonoured bill

to protest a bill

revocable/irrevocable letter of credit

confirmed credit

confirming bank/houses

UNIT V

Accounting

Lead-in

What do you think of accountants and their job?

Choose the description that is closest to your idea of accountants.

1) Accountants are dull functionaries toiling in a back room, endlessly adding up numbers.

2) Accountants are creative people on whom a company's prosperity largely depends.

3. if other, specify.

Reading

Text 1

1. Read the text and single out the definitions of the following notions:

● accounting

● financial accounting

● management accounting.

The Nature of Accounting

Accounting is the system a business uses to measure its financial performance by recording and classifying sales, purchases, and other transactions. Accounting also provides ways to present this information that make it possible to evaluate a company's past performance, present condition, and future prospects.

Accounting is important to business for two reasons: it helps managers plan and control a company's operations, and it helps outsiders evaluate the business. Because these two audiences use accounting information in different ways, accounting has two distinct facets. Financial accounting is concerned with preparing information for the outside world; management accounting is concerned with preparing information for internal use.

Financial accounting. The outsiders who use accounting information have a variety of interests. Suppliers, banks, and other lenders want to know whether the business is creditworthy; investors and shareholders are concerned with the company's profit potential; government agencies are mainly interested in regulating the business and collecting taxes. These users need information that is objective, consistent over time, and comparable to information supplied by other companies. Thus financial accounting statements adhere to certain standard formats and are prepared according to generally accepted accounting principles (GAAP) that have been established and agreed on by the accounting profession over many years.

Management accounting. Management accounting, in contrast, is tailored to the needs of managers in a particular company. Its overall purpose is to help the managers evaluate results and make informed decisions. In a typical company, the management accounting system covers a wide range of financial activities, from recording sales and sending out invoices to helping top management evaluate expenditures on buildings, equipment, and labor.

Thus, of the several available definitions of accounting, the one developed by an American Accounting Association committee is perhaps the best because of its focus on accounting as an aid to decision making. This committee defined accounting as "the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information."

2. Read the text again and say if the following statements are true or false according to the information in the text; correct the wrong ones.

1. Accounting information can help managers evaluate a company's prospects. 2. It is management accounting that is concerned with preparing information for the outside world. 3. Financial accounting prepares information for internal use. 4. The outsiders that need a company's accounting information are banks, suppliers, investors, government agencies. 5. Financial accounting statements are prepared in accordance with generally accepted accounting principles. 6. Management accounting helps the managers to evaluate a company's performance and make informed decisions. 7. Accounting is the process of identifying, measuring, and communicating economic information.

3. Complete the following sentences on the basis of the information in the text.

1. Accounting is the system of measuring … . 2. Accounting helps managers plan … . 3. Accounting helps outsiders … . 4. Lenders want to know if the business … . 5. Government agencies are interested in … . 6. Financial accounting statements are prepared according to … . 7. Managements accounting is tailored to …. . 8. Management accounting activities include… .

4. Summarize the contents of the text in 5-7 sentences.

Text 2

1. Scan the text below and pick out the terms that are used to name accounting titles and jobs in the USA.