Английский язык для бухгалтерского дела. English for Accounting. Учебное пособие

-benefits to employees - ‘we want to give our employees a pay increase of 2 % above the rate of inflation‘.

-benefits to customers - ‘we want to hold our prices steady for at least six months and launch ten new product lines in our stores’.

Forecasts

A forecast is an attempt to estimate the events which are likely to occur in the future. At this stage the emphasis will be on producing forecast trading and profit and loss accounts at various levels of sales to see what the results are. The more promising of these forecasts will be followed through to cash flow and balance sheet forecasts to complete the picture.

The major problem for most businesses is forecasting sales as there are so many factors which can influence the level of sales which a business will obtain.

How then are sales forecasts made? Different businesses will use different techniques depending on the nature of their work. It is often a good idea to analyse sales into categories such as:

1. Regular businessthe normal demand of regular customers.

2. Non - regular business - demand from new and oneoff customers. 3. Unstable business - unexpected demand for which allowance

should be made.

The types of forecasting methods used in practice include such techniques as:

-market research, especially useful for new products;

-statistical analysis of past sales leading to projected sales fiqures;

-sales force method - asking individual salesmen to forecast their sales, totalling the results and adjusting them where necessary for factors known only to senior management, e.g. planned advertising.

Review of the limiting factor

Forecasts at various levels of sales will be made and then reviewed: 1. To see if they are practical, e.g. if the firm has the capacity to

produce sufficient goods to meet the sales forecasts.

2. To see if they achieve the firm’s objectives.

Forecasts will only be unsuitable because something called the limiting factor has taken effect.This can be defined as something which limits the size of a business and restricts its growth. Examples might be the lack of orders because of competition or the lack of finance to increase production capacity.

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The limiting factor will only affect a business if nothing is done to change it. For example, more spending on advertising might increase orders; production capacity can be increased by investing in the necessary resources. So at this stage decisions must be made on any spending required to ease the limiting factor.

Cash budget

The cash budget will be prepared from information contained in other budgets of income and expenditure which is then adjusted to a cash flow basis. The important points to remember when preparing cash budgets are:

1.Sales on credit cannot be treated as cash received until payments are made by debtors - assumptions about debtor collection periods must therefore be made.

2.Similar principles apply for payments to trade and expense creditors.

3.Depreciation must not be shown as a cash payment, although it will be included in the expense budgets. Any purchase of fixed assets must be included in full when the payment is made.

The cash budget is a very important document as it gives a warning of possible cash shortages.This enables overdraft or loan facilities to be negotiated in advance with the bank manager.It also indicates to potential lenders that a business is well managed because cash planning is taken seriously - a factor which may make them more willing to lend !

Notes: 1. target - цель, задание

2.forecast - предсказание, предвидение

3.master-budget = complete budget - общая финансовая смета

4.shortage - нехватка

5.to make allowance for - вносить поправку на что-либо

6.production capacity - производственная мощность

7.advertising - реклама

8.in advance - заранее

I.Match these of terms and definitions.

II. Make up a summary of Text B.

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* * *

Translate Text C into Russian in writing using a dictionary. Answer the question: In what way can investment funds be handled ?

Text C

RECEIVABLE ACCOUNT

Do you remember the fable about the ant who spent the summer storing food for the winter while the grasshopper romped in the fields? When winter came, the ant was in good shape, but the carefree grasshopper went hungry.The moral of the story is that one should be prepared for the inevitable “winters”. Some companies have adopted this philosophy - setting aside allowances, or reserves, for various contingencies - and other companies have not. To the casual observer, the conservative companies look less profitable; but if things go wrong, these companies will be better off than their less cautious competitors.

Take uncollectible accounts receivable. For almost every company, some accounts receivable will be uncollectible. But which ones, and how much will the bad debts amount to?

Accountants may base their estimates for an uncollectible accounts allowance on a percentage of credit sales or on a percentage of outstanding accounts receivable. Either of these percentages is determined on the basis of the company’s past experience with uncollectible accounts and on its expectations about future uncollectibles. Again, depending on what percentage is used, the company will look more or less profitable.

Investment funds for pensions are another type of reserve that may be handled in various ways. How much should companies set aside to pay employees when they retire? This is a difficult question, because no one is sure how long a retired employee will actually draw a pension. Nevertheless, many people feel that if readers of a balance sheet are to get a true and total picture of the firm’s financial position, it is important to include unfunded pension liabilities, the difference between how much a company estimates its pension obligations will be and how much it has already put aside to meet that expense. Recent rule changes now require unfunded pension liabilities to be displayed in the liability section of the balance sheet - which doesn’t materially affect a company’s cash flow but does make its liabilities look larger.

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Notes: 1. contingency - случай

2.cautious - осторожный

3.bad debts - безнадёжные долги

4.uncollectible accounts - счета, не подлежащие оплате

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PART II

TESTS

Multiple - choice questions

Each question has 4 suggested answers (A), (B), (C), (D).

You should read each question and then decide which choice is the best, either (A) or (B), or (C), or (D). On a separate piece of paper you should then write down your choice.

1.Which of the following statements is incorrect?

(A)Assets - Capital = Liabilities

(B)Liabilities + Capital = Assets

(C)Liabilities+ Assets = Capital

(D)AssetsLiabilities = Capital

2.Which of the following is not an asset?

(A)Buildings

(B)Cash balance

(C)Debtors

(D)Loan from H. Brown

3.Which of the following is a liability?

(A)Machinery

(B)Creditors for goods

(C)Motor vehicles

(D)Cash at bank

4.Which of the following is incorrect?

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11.Gross Profit is

(A)Exess of sales over cost of goods sold

(B)Sales less Purchases

(C)Cost of goods sold + opening Stock

(D)Net Profit less expences of the period

12.Net profit is calculated in the

(A)Trading Account

(B)Profit and loss Account

(C)Trial Balance

(D)Balance Sheet

13.Which is the best definition of a ‘balance sheet’?

(A)An account providing the book balance

(B)A record of closing entries

(C)A listing of balances

(D)A Statement of Assets

14.Which is the best description of Fixed Assets?

(A)Are bought to be used in the business.

(B)Are items which will not wear out quickly.

(C)Are expensive items bought for the business.

(D)Are of long-life and are not bought for resale.

15.Suppliers’ personal accounts are found in

(A)Nominal Ledger

(B)General Ledger

(C)Purchases Ledger

(D)Sales Ledger

16.When banking money in your current account you should always use

(A)a cheque book

(B)a paying-in slip

(C)a cash book

(D)a general ledger

17.A debit balance of $100 in a cash account shows that.

(A)There are $ 100 cash in hand.

(B)Cash has been overspent by $100.

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(C)$100 was the total of cash paid out.

(D)The total of cash received was less than $ 100.

18.A cash discount is best described as a reduction in the sum to be paid.

(A)If payment is made within a previously agreed period.

(B)If payment is made by cash, not cheque.

(C)If payment is made either by cash or cheque.

(D)If purchases are made for cash, not on credit.

19.Discounts Recieved are.

(A)Deducted when we receive cash.

(B)Given by us when we sell goods on credit.

(C)Deducted by us when we pay our accounts

(D)None of these.

20.Sales Invoices are first entered in

(A)The Cash Book

(B)The Purchases Journal

(C)The Sales Account

(D)The Sales Journal

21.Entered in the Purchases Journal are

(A)Payments to Suppliers

(B)Trade Discount

(C)Purchases Invoices

(D)Discounts Received

22.Depreciation is

(A)The amount spent to buy a fixed asset

(B)The salvage value (ликвидационная стоимость) of a fixed asset

(C)The part of the cost of the fixed asset consumed during its period of use by the firm

(D)The amount of money spent in replacing assets

23.When the final accounts are prepared the Bad Debts Account is closed by a transfer to the

(A)Balance Sheet

(B)Profit and Loss Account

(C)Trading Account

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(D)Provision for Bad Debts Account (счет резерва на покрытие безнадежных долгов)

24.A Provision for Bad Debts is created

(A)When debtors become bankrupt

(B)When debtors cease to be in business

(C)To provide for possible bad debts

(D)To write off bad debts

25.The descending order in which current assets should be shown in the balance sheet are:

(A)Stock, Debtors, Bank, Cash;

(B)Cash, Bank, Debtors, Stock;

(C)Debtors, Stock, Bank, Cash;

(D)Stock, Debtors, Cash, Bank.

Answers for the tests

Keys for Part I

UNIT III

1)Можете сейчас же уехать из города.

2)Если бы не это, я мог бы сейчас же уехать из города.

3)Вы могли бы по крайней мере сейчас же уехать из города.

4)По-моему, вам нужно сейчас же уехать из города.

5)Уехать мне из города сейчас же?

6)Вам придется сейчас же уехать из города.

7)Вам нельзя уезжать из города сейчас.

8)Неужели он сразу же уехал из города?

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