Инглиш / Unit 3 ACCOUNTING PROFESSION

Unit 3 ACCOUNTING PROFESSION

GETTING STARTED

Discuss the following questions with your partners.

What is the difference between job duties of bookkeepers and accountants?

bookkeepers are responsible for the recording of financial transactions whereas accountants are responsible for classifying, analyzing, interpreting, reporting, and summarizing this financial data

1. How can a person in your country become a bookkeeper? an accountant(to enter a rigorous five-year education program and to earn a master’s degree in order to qualify to enter the profession and to sit for the CPA examination.)?

• What are the career opportunities in the accounting profession in your country? Accounting Clerk.

• Accounts Payable/Receivable Clerk.

• Accounting Information System Specialist.

• Actuarial Accountant/Insurance Accountant.

• Bookkeeping.

• Budget Analyst.

• Capital Accountant.

• Comptroller/Financial Controller.

USEFUL VOCABULARY

Make sure you know the following words and word combinations.

industry accounting Индастри	учет в отраслях
government accounting	государственный учет (учет в организациях государственного сектора)
public accounting	общественный (независимый) учет и аудит
public accountant	общественный (независимый) бухгалтер
certified public accountant	дипломированный независимый бухгалтер
government accountant	бухгалтер государственных учреждений
bookkeeping clerks клеркс	бухгалтеры, счетоводы
controller	финансовый руководитель, главный бухгалтер
chief financial officer	главный финансовый директор
transaction n	сделка, операция
payroll n	платежная ведомость
receipts n (pl) реситс	выручка
charges n (pl)	расходы, издержки
invoice n	cчет-фактура
accounts payable	кредиторская задолженность, счета к оплате
accounts receivable	дебиторская задолженность, счета к получению
debit and credit posting / entry	проводка/запись по дебету и кредиту
procurement n прокьюамент	закупка, снабжение
aptitude test аптитьюд	проверка способностей
application n	заявление
CV (curriculum vitae) = résumé рЕзьюме	автобиография, резюме (краткое описание образования, профессионального опыта и способностей, направляемое потенциальному работодателю)
cover letter	сопроводительное письмо
remuneration n ремьюнирейшенс	компенсация, оплата, вознаграждение
earnings n pl	заработок, прибыль
wages n; salary n	заработная плата, жалованье, оклад
fee n	вознаграждение, гонорар, заработная плата
royalty n роелти	авторский гонорар, отчисление, процент
fringe benefits=perks n	дополнительные льготы
revenue n	доход, выручка
income n	доход

READING

1. Read the following text and supply the missing entries in the Chart below.

The Profession of Accounting in the USA

The four general fields of accountancy include (1) industry accounting, (2) public accounting, (3) governmental accounting and (4) education, each of which has several accounting specialty areas. In the USA close to 45 percent of accountants work in public accounting and 47 percent work in industry accounting. Of the remaining 8 percent, 6 percent work in governmental accounting and 3 percent in education.

Industry Accounting. A company employs an industry (or management) accountant to perform its internal (management) accounting activities and to prepare its financial reports. A high-level manager, such as the company’s controller, usually coordinates these activities. This manager frequently reports directly to the organization’s top management, such as the chief financial officer. The Certificate of Management Accounting (the CMA) is granted to those who meet specific educational and professional standards and who pass a CMA examination administered by the Institute of Management Accountants.

Management accounting activities encompass several areas: budgeting, cost accounting, and financial reporting, as well as designing and operating accounting systems, internal auditing, and tax accounting.

Public Accounting. A public accountant is an independent professional who provides accounting services to clients for a fee. Many accountants practice public accounting as individual practitioners; others work in public accounting firms, which include local and regional companies. In addition, to provide accounting to large corporations, some of which span the world in their activities, many large public accounting firms have offices in most international cities.

Most public accountants are certified public accountants (CPAs). A CPA has met certain state requirements and holds a license issued by the state in which he or she works. All CPAs must pass the Uniform CPA Examination given by the American Institute of Certified Public Accountants (AICPA).

Decision-makers need assurance that the information they use is valid. Auditing evolved from a need for assurance services. Auditing involves the examination, by an independent CPA, of a company’s accounting records and financial statements. The CPA expresses a professional, unbiased opinion about the fairness of the accounting information in the financial statements.

Governmental Accounting. Certain governmental agencies also employ accountants. The Internal Revenue Service (IRS), for example, is responsible for the collection of the federal income taxes. State revenue agencies also perform similar functions. These agencies hire accountants to provide accounting information for use in administration of these activities.

Administrators of federal, state, municipal, and other not-for-profit organizations such as colleges and universities, hospitals, are responsible for the organizations’ efficient and effective operations. Being not-for-profit organizations financed in part by public funds, they are required to use somewhat different accounting procedures. These organizations hire accountants to design and operate their accounting systems.

How does a student prepare for the accounting profession? Persons considering entering the accounting profession should begin by doing some self-analysis to determine whether they enjoy mathematical, problem- or puzzle-solving, or other analytical activities; by taking some aptitude tests; or by talking with accounting teachers or practitioners about their work. Anyone interested in becoming an accounting professional should expect to enter a rigorous five-year education program and to earn a master’s degree in order to qualify to enter the profession and to sit for the CPA examination. To build a base for rising to the top of the profession, students should select courses that help them learn how to think and to define and solve problems. The courses should help them develop analytical (logical, mathematical, statistical), communication (oral, reading, writing), computer, and interpersonal skills. These skills greatly enhance and facilitate all aspects of what accountants attempt to do.

Chart 1. Accountancy Profession in the USA

budgeting, cost accounting, and financial reporting,

2. Complete the sentences by matching the beginnings with appropriate endings.

1) A person considering entering the accounting profession should e 2 ) Anyone wishing to become an accounting professional in the USA expects to b 3) Industry accountants a 4 ) Public accountants 5) Government accountants 6 ) Not-for-profit organizations

a. perform management accounting activities and prepare a company’s financial reports. b. enter a 5-year education program and sit for the CPA examination. c. use different accounting procedures. d. provide accounting services to clients for a fee. e. analyze his/her capabilities and take aptitude tests. f. work for government agencies and not-for-profit organizations.

3. Answer the following questions.

1) What areas of accountancy are distinguished in the USA?

2) What is the percentage of accountants working in each area? In the USA close to 45 percent of accountants work in public accounting and 47 percent work in industry accounting.

3) What professional qualification is granted to those who meet specific professional standards in industry accounting?

4) What activities does industry accounting involve? A company employs an industry (or management) accountant to perform its internal (management) accounting activities and to prepare its financial reports.

5) What is the difference between industry accountants and public accountants?

6) How does one become a CPA in the USA? Most public accountants are certified public accountants (CPAs). A CPA has met certain state requirements and holds a license issued by the state in which he or she works. All CPAs must pass the Uniform CPA Examination given by the American Institute of Certified Public Accountants (AICPA).

7) Why did auditing evolve? Auditing evolved from a need for assurance services

8) Who performs auditing functions in the USA?

9) What governmental agencies employ accountants?

10) What functions do government accountants perform?

11) Why are accounting procedures in not-for-profit organizations different from those in profit-seeking organizations?

12) What skills are deemed necessary for a modern accountant?

3. Describe the accountancy profession in the USA, using Chart 1.

DEVELOPING VOCABULARY

1. Job adverts often use compound adjectives formed according to the following patterns:

good-tempered – (Adj. + N) + -ed;

low paid, newly-formed – Adj. or Adv. + Past Participle

fast-expanding – Adj. or Adv. + Present Participle

The two parts of the words below have been jumbled. Put them together again; give their Russian equivalents.

1	far-	educated
2	f ast	lasting
3	hard	reaching
4	h igh	appointed
5	l ong-	witted
6	w ell-	flying
7	q uick-	growing
8	newly	working

2. Form meaningful word partnerships and make up sentences with them.

1 meet e	a) the CPA Examination
2 pass a	b) an unbiased opinion
3 express b	c) financial reports
4 issue h	d) taxes
5 collect d	e) requirements
6 design g	f) self-analysis
7 do f	g) accounting systems
8 prepare c	h) a license

3. Look at the dictionary definitions of the following words and then complete the tree diagram below

1) Salary – a fixed amount of money agreed every year and paid monthly directly into a bank account, normally to professional people and office workers

2) Wage (often pl) – a fixed amount of money that is paid, usually every week, to an employee, esp. one who does work that needs physical skills, rather than a job needing a college education

3) Fringe benefits (also perks) – extra benefits arising as a result of employment, in addition to regular remuneration such as a car or free accommodation

4). Fee – an amount of money paid for a particular piece of work or for a particular service, e.g.. a payment to a lawyer, doctor, etc. for professional services

5) Royalty (usually pl) – a payment that someone such as a writer or musician gets each time their work is sold or performed

6) Earnings – a) the total of the sums earned by an employee during a regular pay period; b) what is left of the net profit of a business after allowing for transfers to reserves. the net income or profit of a business

7) Income – money we receive from work, investments, etc. It can be earned income (wages or salary) or unearned income (money from dividends, interest, royalties, etc.)

8) Revenue – a) income, generally, the total income earned by the state or a large corporation; it is not used for people; b) money a government receives through taxation

9) Remuneration (formal) – payment or other rewards that you get for your work

6. Complete the sentences using the appropriate word from the list above.

1) How much …money did you earn on your shares last year?

2) A company car, a mobile phone and luncheon vouchers are some of the FB… that come with the job.

3) The best lawyers often ask for the highest …fee .

4) Total company rev… for 20.. was the best yet.

5) My total income …in this year, including salary, royalties, fees, dividends and perks, should exceed 300,000

6) …wages levels in manufacturing and mining dropped again last month.

7) The company reported that salary … were down last quarter.

8) The players are demanding increased …remuneration for their services.

9) The publisher paid them …roal on their dictionary.

7. Translate into English

1) Компания предоставляет дополнительные льготы в виде служебного автомобиля и бесплатной медицинской страховки. 2) Средние заработки квалифицированных рабочих растут. 3) Мы предлагаем привлекательный компенсационный пакет. 4) Рабочие требовали повышения зарплаты. 5) Он многие годы жил на авторские отчисления с повторных тиражей (reprint n) своей книги. 5) Компания официально заявила о том, что в последнем квартале прибыль снизилась. 6) Для малоимущих семей (семей с низким доходом) предусмотрены льготы. 7) Каков Ваш приблизительный среднегодовой доход? 8) За последние десять лет заработки населения росли быстрее, чем цены. 9) Доходы от дивидендов не относятся к заработанным доходам.

1) The company provides additional benefits such as a company car and free medical insurance. 2) The average income of qualified workers are growing. 3) We offer an attractive compensation package. 4) Workers demand higher wages. 5) He lived for many years on royalties with reprints (reprint n) of his book. 5) The company has officially announced that profit has declined in the last quarter. 6) For low-income families (low-income families) benefits are provided. 7) What is your approximate average annual income? 8) Over the past ten years, population wages have grown faster than prices. 9) Dividend income does not apply to earned income.