Английский язык = English. Учебное пособие-1

GRAMMAR EXERCISES

Exercise 1. Find the subordinate clauses in the following complex sentences. Translate the sentences.

1.He said he would deliver the goods on CIF terms.

2.The catalogue she gave me is very interesting.

3.Had I been there, I would have helped you to represent your products in the Belarus market.

4.I wish you had quoted your prices earlier.

5.He said there was nothing much the matter with me.

Note:

CIF (Cost, Insurance, Freight) – стоимость, страхование и фрахт. Одно из базисных условий поставок, используемое в международной практике при заключении контрактов. При этом условии продавец за свой счет фрахтует судно до порта назначения, оплачивает страховку товара до места назначения. Покупатель несет все расходы, связанные с транспортировкой, за исключением фрахта. Право собственности на товар переходит от продавца к покупателю в момент пересечения грузом борта судна.

Exercise 2. Read and translate the sentences paying attention to the asyndetical connecting.

1.Were the journals in the place, the accountant would record purchases of supplies.

2.Were it easy to record sales on account, I’d do it quickly.

3.Were the Seller our best partner, we’d sign the contract immediately.

4.Had the manager time, she would be able to join the talks.

5.Had we been given the device yesterday, we’d have posted the journal entries to the individual accounts earlier.

6.The controller said he checked some columns last week.

7.The director said she couldn’t give a definite answer at the moment.

8.The treasurer admitted he had not the slightest interest in social questions.

9.The Buyer told them the company had never delivered to London.

10.The suppliers said they had been at the fair.

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READING SECTION

I. Read and translate Text A.

TEXT A

Recording Economic Events in a Journal

Accounting theory helps the accountant analyze transactions, determine the effect of a transaction on the financial statements, and record the effect. In a word, particular economic events will be recorded.

The recording process is the first step in entering the economic data previously collected and analyzed into a company’s accounting records. The device that is used to initially record transactions is called a book of original entry, or a journal. A journal simply provides a chronological record of transactions and other economic events that affect the company.

In practice, transactions are first entered into a journal, then transferred (posted) to the appropriate accounts. The advantages of initial recording in a journal are that it provides a chronological record of the economic events recognized during the period and that all information about the entire transaction appears in one place. Thus, if a question about the original transaction arises, the journal information can be used for verification.

One method of recording transactions makes use of a single journal, called a general journal. Any general journal consists of the following columns.

The first column in the journal shows the date of the transaction. Next, the accounts debited and credited and a brief explanation of the transaction are shown. The “folio” column is also called a “posting reference” column. When the journal entries are posted to the individual accounts during the next step of the accounting cycle, the account numbers of the related accounts affected by the entries will be entered in this column to indicate that the amounts have been transferred to the appropriate accounts. Finally, the last two columns are for the dollar amounts of the debits and credits [15, pp. 80–81].

Note: a general journal – главный журнал учета

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Exercise 1. Agree or disagree. Start your answers with I think…,

I don’t think…, I agree…, I disagree… that… . Work in pairs.

1.Accounting theory helps the accountant analyze revenues.

2.The recording process is the first step in entering the economic data.

3.The device that is used to initially record transactions is called a newspaper.

4.A journal simply provides a chronological record of transactions.

5.In practice, transactions are first entered into the appropriate accounts.

6.A general journal is a book of recording transactions.

7.The second column in the journal shows the date of the transactions.

8.The last two columns are for the dollar amounts of the debits and credits.

Exercise 2. Answer the following questions.

1.Does accounting theory help the accountant analyze transactions?

2.Where will particular economic events be recorded?

3.What does a journal or a book of original entry provide?

4.What are the advantages of initial recording?

5.What is a general journal?

6.How many columns are there in any general journal?

7.What do they show?

Exercise 3. Translate the following sentences into English.

1.Процесс учета является первой стадией записи экономических данных.

2.Средство, которое используется для начального учета сделок, называется журналом.

3.На практике сделки сначала записываются в журнал,

азатем переносятся в соответствующие ведомости.

4.Преимущество начального учета в журнале заключается в том, что оно дает возможность хронологической записи экономических данных.

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5.Главный журнал учета является одним из методов учета сделок.

6.В первой колонке журнала указывается дата сделки.

7.В главном журнале учета пять колонок: дата, колонка учета дебета и кредита с кратким объяснением сделки, “фолио”-колонка, колонки цифрового обозначения дебета

икредита.

8.Вторая колонка журнала представляет собой колонку учета дебета и кредита с кратким объяснением сделки.

II. Read Text В and answer the questions.

1.What do many companies use in addition to the general journal?

2.What kinds of special journals are commonly used?

3.What is the general journal used for when special journals are employed?

TEXT В

Special Journals

Many companies use special journals to record economic events of a similar nature. For example, if a company has many sales of merchandise for cash (e.g., cash sales made by a department store), a cash receipts journal may be used to facilitate the recording of all of these repetitive transactions. A cash disbursements journal may be used to record all transactions involving cash disbursements. The use of special journals also may lead to more efficient use of labour services because the work may be divided. For example, one employee may be assigned to record cash sales in the cash receipts journal, while another employee may have responsibility for recording cash payments in a cash disbursements journal.

The most commonly used special journals, in addition to the general journal, are as follows:

–Special journal (transactions recorded)

–Cash receipts (cash receipts from all sources)

–Cash disbursements (cash disbursements for all purposes)

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–Sales (sales on account)

–Purchases (purchases of merchandise on acсount)

When special journals are employed, the general journal is used to record those transactions that are not recorded in the special journals.

Note:

a cash receipts journal – кассовый журнал учета квитанций

a cash disbursements journal – кассовый журнал учета расходов (издержек)

a purchases journal – журнал учета покупок

a sales journal – журнал учета продаж

III. Read Text С using a dictionary and give its main idea.

TEXT С

The Importance of Ethics in Financial Accounting and Reporting

Financial accounting and reporting standards are essential to the credibility and usefulness of financial accounting information in general and of financial statements in particular. Even so, standards are not a substitute for ethical behaviour by accountants who prepare financial accounting information or by accountants who provide independent audits of financial statements.

Remember that financial accounting is a service activity. The role of financial accounting and reporting is to objectively measure and record the economic activities of an entity, and to communicate the recorded data to interested parties outside the entity. Given the service nature of financial accounting, the role of financial accounting and reporting, and the potential for personal bias, misassessment of facts, errors estimation, and ambiguity to affect the measurement and communication of economic events, business ethics and ethical behaviour are particularly important to the accounting profession. Indeed, the higher the ethical standards followed by accountants who prepare or audit financial statements, the lower will be the number of accounting reporting abuses that must be addressed by authoritative bodies like the FASB.

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Each year business transactions become more complex and new areas of business activity are explored. These conditions provide a multitude of ethical dilemmas that must be faced by the businessperson. When one is confronted with news about insider trading scandals in investment banking, the increased incidence of business restructuring for quick profit rather than for improved long-term operating performance, misleading or unfair marketing techniques, overcharging on government contracts, widespread failures of savings and loan institutions, and similar events, it is reasonable to worry about how well ethical dilemmas are being resolved by the business community.

As business people, accountants are faced with the same ethical dilemmas that confront others in the business community. In addition, there are some ethical dilemmas that are associated more particularly with the activities of accountants and accounting (auditing) firms. A public accountant (external auditor) may have to resolve conflicts between GAAP and a client’s preference for a non-GAAP accounting reporting practice. External auditors may face situation where the confidentiality of their client relationship may be in conflict with their sense of responsibility disclose certain information for the benefit or protection of the public. External auditors may find themselves in a position where what they know about one client would be extremely valuable information to another client, or has the potential to significantly affect their audit of another client [15, p. 19].

Exercise 1. Prepare a summary of text С according to the following outline.

1.Financial accounting and reporting standards.

2.Financial accounting is a service activity.

3.The conditions of ethical dilemmas.

4.Examples of the ethical dilemmas.

IV. Translate text D in writing.

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TEXT D

Profit Planning

Profit planning is accomplished through the preparation of a series of documents known as budgets. A budget can be defined as a plan for the future expressed in formal quantitative terms.

The master budget is a summary of all phases of a company’s plans and goals for the future. It sets specific targets for sales, production, distribution, and financing, and outlines how these targets are to be met.

There are two steps in the budgeting process – planning and control.

Planning involves the development of future objectives and the formulation of steps to achieve these objectives.

Control involves the means by which management ensures that all parts of the organization function properly and attain the objectives set down at the planning stage.

There are several benefits to be gained through the use of budgeting in an organization. These benefits include:

–It forces managers to think ahead by requiring them to formalize their planning efforts.

–It provides definite goals and objectives which serve as benchmarks for evaluating subsequent performance.

–It uncovers potential bottlenecks before they occur.

–It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.

–It provides a vehicle for communicating management’s plans throughout the entire organization.

Much of budgeting rests on the concept of responsibility accounting. Each manager is charged with the control of those costs under his or her care, and his or her performance is measured by how well budgeted goals are met.

Responsibility accounting personalizes the accounting system by looking at costs from personal control standpoint, rather than from an institutional standpoint. This concept is central to any effective planning and control system.

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A basic premise of the responsibility accounting idea is that effective budget data can be generated as a basis for evaluating managerial performance [17, p. 88].

KEY TERMS EXERCISES

Exercise 1. Match the words on the left with the definitions on the right.

ORAL SPEECH SECTION

Exercise 1. Read the illustrative dialogue and decide why the Primrose Audit report is extremely important.

Illustrative dialogue

Explaining the Audit Situation

The phrases are used to explain the audit situation of the subsidiary of Primrose and the expressions used compare it with UK auditing practice.

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Auditor: I’ve brought an English translation of my Audit Report. The official version is in Primrose and has to be submitted to the Ministry of Finance within the next ten days. But before submitting it, I want to discuss its contents with both of you.

MD: Thank you. But I’m not too clear if this report is of any use to our Head Office in Birmingham.

Auditor: As soon as I was appointed, I met the Financial Controller and explained to him what work has to be done for a Primrose audit. We both agreed that our auditing requirements here differ from those of the UK and I believe he passed on the information to your Head Office.

FC: Yes, I did. Actually Primrose auditing requirements are fairly close to the UK auditing standards but there are some differences, which means that a second audit usually has to be performed by auditors appointed directly by Primrose.

MD (to FC): So we have to pay for two audits!

FC: The UK audit is cheaper because it focuses mainly on the financial statements and records. The audit for the Primrose Group, on the other hand, involves extensive testing and review of our financial systems and controls. The other problem is that the layout and content of Primrose statutory accounts is different from the accounts we submit to Head Office.

Auditor: I can tell you one thing. The Primrose Audit report is used by our Ministry of Finance to decide whether or not to renew your company’s trading license for the next year. So it is important.

MD (hastily): Oh, I see. So what will you say in your report? Auditor: My report shows a satisfactory position and my task was made easier thanks to the help of your accounting

staff. Here’s copy for you to keep.

MD: Well, that’s a relief. Have you got any other comments to make? [20, p. 112]

Exercise 2. Rearrange the words to make sentences. Mark whether they are true or false.

Model: Lading / negotiable / Bill / is / of / a.

A Bill of Lading is negotiable.

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1.Version / is / official / in / Report / the / Audit / of / Primrose.

2.Our / Head / this / to / Office / report / any / is / use / of.

3.Controller / to / work / Financial / I / what / done / a / for / audit / be / explained / has / Primrose.

4.Audit / by / appointed / has / auditors / be / directly / second / to / a / usually / performed / Primrose.

5.Finance / by / report / is / Audit / of / Primrose / our / the / used / Ministry.

Exercise 3. Explain the meaning of the following words. Make use of the words in brackets.

Model: финансы (resources, to be, person, or, state, money, of, company)

Finances are money resources of state, company or person.

1.Ревизор (to deal with, a person, testing, financial activity, an enterprise)

2.Аудит (a, to be, system, of, examination, official, accounts)

3.Лицензия ( to be, use, authorize, an, certain, of, purpose)

Exercise 4. Replace the words in italics by synonyms.

Model: A second audit has to be preformed by auditors from Primrose.

A second audit is to be preformed by auditors from Primrose.

1.I am not too clear if this report is of any use.

2.The UK audit focuses mainly on the financial statements and records.

3.It involves extensive testing and reviewing of the financial system.

4.Our report shows a satisfactory position.

5.Well, that’s a relief.

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