Unit 1 the history and future of accounting

TEXT 1. FROM THE EARLY HISTORY OF ACCOUNTING

TEXT 2. FROM THE HISTORY OF THE DOUBLE-ENTRY SYSTEM

TEXT 3. THE FACULTY OF ACCOUNTING AND FINANCE AT BIRMINGHAM UNIVERSITY

TEXT 4. THE FACULTY OF ACCOUNTING AT THE MOSCOW UNIVERSITY OF CONSUMER COOPERATIVES

TEXT 5. SOME LEADING ACCOUNTING ORGANISATIONS OF GREAT BRITAIN

TEXT 6. ACCOUNTING IN THE FUTURE

TEXT 7. THE DOUBLE ENTRY SYSTEM IS THE BASIC METHOD OF ACCOUNTING

Text 1 from the early history of accounting

Exercise 1.1

Study the vocabulary:

	origin	1.	походження, джерело
	identify	2.	встановлювати, визначати
	accounting records	3.	облікові записи
	to inscribe	4	надписати, накреслити (ім'я, напис і т.п.)
	receipts and expenditures	5.	доходи і витрати
	profits and losses	6.	прибуток і збитки
	to pool capital	7.	об'єднувати капітал
	to perform	8.	виконувати, здійснювати
	file	9.	справа, архів
	outfit	10.	споряджати
	to outfit ships	11.	споряджати кораблі
	tax assessment	12.	обкладання податком
	scrap	13.	викидати (за непридатністю), перетворювати на лом
	store	14.	зберігати

Exercise 1.2

Read and translate the text:

The origin of accounting goes back to man's earliest days. Scholars have identified accounting records in the early historical records of China, Peru and particularly the Middle East regions.

In those days accounting records were inscribed on clay tablets stored in wicker baskets. The file was marked by a clay tablet when it was completed. Every year the clay tablets were scrapped and a new series was started. These records performed the essential accounting functions because they recorded the tax assessment on the villages.

By our standards those functions were relatively simple, but they were truly essential, because they presented a detailed and useful statement of receipts and expenditures in this type of simple economy.

The dark ages saw some continuation in the development of accounting. At this time commerce began to develop in many countries. Voyages became common. Merchants outfitted ships, pooled capital and off they went to many countries. Profits and losses were divided after each voyage had been completed and the goods had been sold. Separate accounts were kept for each ship and there was no need for an annual accounting, because the voyages sometimes took several years.

During the 11th, 12th, 13th and 14th centuries Northern Italy became a prominent commercial centre. It was not by accident that in the 15th century a type of record-keeping, called the Venetian method was developed in Northern Italy. Double entry book-keeping appeared in Venice in 1492 when Pacioli's important mathematics textbook was published.

Exercise 1.3

Read the text again and choose the best variant:

1. Scholars have identified accounting records in the early historical records of...

1. China, Peru and particularly the Middle West regions

2. China, Peru and particularly the Middle East regions.

3. China, Mexico and particularly the Middle East regions.

2. In those days accounting records were… on clay tablets stored in wicker baskets quickly

1. approved

2. inscribed

3. prescribed

3. The functions of the early historical records they presented a … statement of receipts and expenditures in this type of simple economy.

1. broad and convenient

2. extensive and suitable

3. detailed and useful

4. The dark ages saw some continuation in the development of accounting and at this time … began to develop in many countries.

1. commerce

2. economy

3. taxation

5. The Venetian method of record-keeping appeared in Northern Italy…

1. in the 15^th century A.D

2. in the 14^th century B.C.

3. in the 11^th century A.D

Exercise 1.4

Read the first three paragraphs of the text again and fill in the gaps. Then read and translate:

standards; functions; accounting; Scholars; expenditures; detailed; tax assessment; clay tablets; marked; scrapped;

The origin of …1… goes back to man's earliest days. …2… have identified accounting records in the early historical records of China, Peru and particularly the Middle East regions.

In those days accounting records were inscribed on …3… stored in wicker baskets. The file was … 4… by a clay tablet when it was completed. Every year the clay tablets were …5… and a new series was started. These records performed the essential accounting …6… because they recorded the …7… on the villages.

By our …8… those functions were relatively simple, but they were truly essential, because they presented a … 9… and useful statement of receipts and …10… in this type of simple economy.

Exercise 1.5

Read the whole text again and choose the best answer:

1. What did the accounting records look like during the earliest history?

1. They looked like wicker baskets.

2. They looked like clay tablets.

2. What essential functions did the earliest records perform?

1. they documented the tax assessment on the towns

2. they recorded the tax assessment on the villages

3. Why were those functions essential?

a) because they presented a detailed and useful statement of receipts and expenditures in this type of simple economy

b) because they presented short and useful statement of receipts of simple economy

4. When started the development of commerce in many countries?

1. during the Dark Ages

2. during the Enlightenment

5. Which type of record-keeping appeared in Italy in 1492?

1. double entry book-keeping

2. Venetian method of book-keeping