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5.Some experts think that the financial statements of enterprise ... more meaningful if they were restated in terms of the purchasing power of the Russian rouble current at the balance sheet date.
a)should become
b)had become
c)would become
6.Vertical analysis requires all of the Revenue Account and Balance ... as a percentage of their respective total.
a)should be complied
b)should be expressed
c)should be increased
7.Russia's government ... procedures for determining taxable profits in Russia, but these procedures are different from those in Western countries.
a)has established
b)had established
c)should establish
8.Given the importance of a good investment strategy and the consequences of making poor investments, it is vital that an organisation ... a rigorous process of identification and evaluation of investment opportunities.
a)should be followed
b)should follow
c)would follow
9.Capital expenditure is that which is likely to provide a ... for the business in a more than one accounting period.
a)loss
b)expenditure
c)benefit
10.It is transparency and the ability to make informed judgements that ... one of the basic problems in the Russian financial system.
a)provides
b)represents
c)ensures
11.An accurate assessment of the performance of managers ... the comparison of actual results achieved with the budget.
a)consists of
b)comprises
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c) makes up
12. ... may be defined as those that are appropriate to assist the making of specific management decisions.
a)Irrelevant costs
b)Relevant costs
c)Replacement costs
13.Under international accounting standards you cannot carry debt securities on a balance sheet at... purchase prices.
a)current
b)historical
c)stable
14.Most Russian bankers think that it is implementation of International accounting standards that ... transparency in the Russian banking sectors.
a)will increase
b)would decrease
c)will destroy
15.The financial assistance rendered by the European Union for restructuring Russia's accounting system ... $ 3.5 mln. in 2001.
a)compiled
b)accounted for
c)consisted of
16.It is Russia's Central Bank that bears a full responsibility for ... a bank accounting system and bringing it into a line with IAS.
a)implementing
b)transforming
c)understanding
17.It is the accountant who may ... an accounting system for an organisation, help select the right computer hardware and software to run the system, and analyse the financial strength of the business right at the start.
a)design
b)implement
c)strengthen
18.If you want to be ... in business, you have to know something about accounting.
a)unsuccessful
b)a success
c)incompetent
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19.The tasks of managerial accounting... measuring and reporting costs of production, preparing budgets and designing strategies to minimise taxes.
a)account for
b)consist in
c)make up
20.Accounting can be divided into two major categories: ... is called managerial accounting and ... is known as financial accounting.
a)the first... the last
b)the former ... the latter
c)one category ... another
21.As is known, sales and other documents ... inputs to an accounting system.
a)comprise
b)consist of
c)comply
22.None of prosperous Russian enterprises can ... without relationships with foreign suppliers or customers.
a)operate
b)keep accounts
c)be managed
23.The manager must grasp the fundamentals of accounting which ... him or her, on the one hand, to run the business successfully and, on the other hand, to deal with an accountant using a common language.
a)insures
b)enables
c)complicates
24.With increasing globalisation and investments there is increasing pressure to harmonise accounting standards so that effective comparisons between companies can
...
a)be held.
b)be made.
c)be done.
25.Some accounting experts are sure that in the future the Internet will... a wide variety of accounting services to its clients becoming, in fact, the everyman's electronic bookkeeper.
a)put forward
b)provide
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c)minimise
26.According to our chief accountant, accounting costs can be ... by using a new Internet site which will also make it possible to speed up such transactions as writing checks, recording invoices and booking payments.
a)quickly processed
b)computed
c)analysed
27.To my mind, one of the main obstacles on the way of setting international accounting standards throughout the world is ... of accountants and users of accounting information on the goals of main financial statements.
a)agreement
b)difference
c)disagreement
28.In the nearest future accountants ... only with the valuation techniques to assess financial position of a business and the evaluation of relevance, reliability and consistency of financial data.
a)will devote time
b)will be concerned
c)will analyse
29.One of the most commonly criticised ... of accounting is that traditional accounting methods cannot be applied effectively to production systems which change very rapidly to adapt to the environment.
a)advantages
b)deficiencies
c)shortages
30.As is known there are lots of ... among accounting experts in various countries who are against the use of international accounting standards.
a)supporters
b)rivals
c)opponents
31.The necessity of ... to the changes taking place in organisational structure and information processing is, certainly, one of the biggest problems of accountants in the 21st century.
a)taking into account
b)imposing
c)adapting rapidly
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32.Under modern conditions rapidly developing science and technology as well as production and manufacturing methods make some accounting methods ...
a)updated.
b)outdated.
c)current.
33.There are grounds to believe that implementing international accounting standards will demand .. on the part of Russia's government, professional accounting organisations and accountants.
a)changes
b)designing new accounting chores
c)time and organised efforts
34.There is no doubt that computers will... in accounting practices in the future as compared with the present time.
a)be more extensively used
b)be less used
c)not be used at all
35.In the 21st century accountants ... in system design activities, i.e. analysing organisations structures, the flow of information through various organisational units and the implication of internal control.
a)will be more involved
b)will not deal with
c)will be less involved
36.A single set of financial accounting standards will also... corporations' time and money since they will no longer have to prepare multiple sets of financial documents.
a)demand
b)facilitate
c)save
37.In a capitalist society accounting records were important ... to entrepreneurs in maintaining commercial viability of business undertakings.
a)aids
b)functions
c)prospects
38.At present many accountants ... the directors' seniour advisers, because they have expertise in such areas as costing executorship, trusts, bankrupcy, company liquidation, mergers.
a)operate
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b)become
c)advise
39.These days accounting and reporting by multinational corporations ... the information needs of users, particularly in home and host countries, especially in developing countries, in view of their social and economic impact.
a)take account of
b)neglect
c)pay attention to
40.Expenses and withdrawals appear respectively on which of the following statements?
a)Balance sheet and income statement.
b)Statement of owner's equity and balance sheet.
c)Income statement and statement of owner's equity.
Score 2 for each correct answer. Total 80
Part В
Find a mistake in the following sentences
A
1. As far as 1 know, the Organisation for Economic Cooperation and B C
Development (OECD) adopted international public sector accounting D
standards for its own financial reporting. A B
2. One the achievements in implementing the accounting reform in Russia is C
the fact that existing accounting regulations have been revised along with the D
development of new one.
A B
3. The requirement to be using one's own judgement as a basis for recording a C D
transaction is an entirely new one in Russia's accounting system.
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A
4. By separating financial and tax accounting Russia's Ministry of Finance B C
seems to be told accountants that, in addition to tax authorities, there are D
other users who are interested in accounting information. A B
5. When implementing IAS, it should be taken into account that Russian C D
economic environment differs greatly from the Western ones. A B
6. By calculating Return on Capital employed, you'll get a far better idea of C D
business profitability than by just consider the Profit figure in isolation. A B C
7. According to experts, the more times that the fixed assets are covered by D
sales revenue, the greatest the recovery of the investment in fixed assets. A
8. It is the ability of reading and understanding accounting reports and B C D
statements that help run a business successfully.
A B
9. Most businesspeople find accounting hard to understand. They will rather C D
study marketing or business law – anything but accounting.
A B C 10.То my mind disclosure of information in general purpose reports should be
D
made in a manner inaccessible to the public.
A B
11.The basic issue in accounting for investments in jointly-controlled entities C D
relate to the choice of the method of reporting the investments and operations in the financial statements of the entities.
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A B
12.As is known, Russia's Central Bank would like extending international C
accounting standards to the systems of all commercial banks and thus make D
them more effective.
A
13.Under Russian Accounting Standards debt securities are carrying on balance B C
sheets at historical purchase prices which decreases the capital of banks D
after mark – to market adjustment.
A
14.Most banks in Russia have to undertake two types of audit, Russian and B
international, and this is an expensive process, because many Western audit C D
firms charges between $ 100,000 and $ 1 million for their work.
A B
15.According to Russian accounting a bank's capital sometimes exceeds one or three billion roubles, while according to international accounting, capital
C D
decline down to zero, due to different measures and statistics. A B
16.In the case of trading firms which is mainly concerned with buying and C D
selling products, the profits are calculated by drawing up a special account called a Trading and Profit and Loss account.
A
17.In 2001 the accounting committee of the Eurasia Association of B C
Accountants and Auditors has undertaking a detailed review of the D
accounting reform policies common to CIS countries in order to formulate general recommendations.
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A B 18.It is common knowledge, that Russian economic reforms requires
C D
assessment of the current accounting model as to whether it meets the needs of the market economy.
19.According to some accounting experts, the history of accounting development in Russia, along with comments on why "moving towards
A B
IAS" rather than adoption of IAS has not resulted in workable accounting
C D standards in Russia and at present the focus on tax-basis accounting created
obstacles on the way of restructuring Russia's accounting system. A
20.The cash flow statement will gain well-deserved recognition and application B
if Russia adopts full IAS7 or at least allow Russian enterprises preparing C D
IAS-based cash flow statements instead of RAS-compliant cash flow statements.
Score 1 for each mistake spotted
Final translation test 1
Variant 1
Part A
Translate the following sentences from English into Russian
1.The fall in price is expected to be only temporary and the purchase price is believed to exceed its original figure within 12 months.
2.A business has just bought a computer for 30 000 rbls. The machine is expected to remain in use and in the ownership of the business for more than the current accounting period.
3.A business bought an asset three years ago for 10 mln. roubles. At the time of purchase it was thought to have a useful life of about seven years.
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4.This method of computing production costs seems to be unreasonably inaccurate, with more further information being taken into account.
5.There is a general opinion among accountants, that there is no need for all of the stock to be checked at the same time.
6.All transactions to be recorded in date order will show the amount of the transactions being recorded.
7.The system of ledger accounts is believed to be nothing more than a convenient way of recording transactions of a business.
8.Students in accounting are sure to be able to explain the main principles of preparing the balance sheet and profit and loss account.
9.The amount of profit or loss for the period is likely to be calculated and transferred to the capital account.
10.All revenues for the accounting period are credited to this account, with a corresponding debit being made in the revenue account.
11.All expenses are debited to the profit and loss account, with a corresponding credit being made in the expense account.
12.When presented the trading account is more likely to be written up as in table 16.
13.In preparing your answer, remember that good layout and presentation are very important.
14.All the accounts in books were analytical, with each beginning with the name of the merchant or the designation of commodities.
15.With gross profit on sales being determined for each kind of commodity, the merchant could easily see if he was doing will enough.
16.In accordance with the Italian form of accounting the balance sheet was complied annually, with all accounting transactions being entered first into daybooks or memorials. If an account was closed, the balance was transferred to the account Gains and Expenses showing the overall amount of the change in capital.
17.The number of amounts used will determine the amount of details possible in the final account.
18.The balance sheet to be compiled next week will show the state of our affairs in this sphere.
19.One of the books to be published next month will give a systematic exposition of book-keeping in different countries.
20.Company managers are known to make decisions on the basis of financial information provided by accountants.