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

Сигналы пассива:

1)наличие одной из форм глагола to be;

2)отсутствие после нее V + ing (кроме формы being).

Ex. 1. Fill in the appropriate form of the verb in brackets.

1.Accounting (provides, is provided) ways to present the information for evaluation a company’s affairs.

2.Management accounting (concerns, is concerned) with preparing information for internal use.

3.Accounting principles (have established, have been established) by the accounting profession over many years.

4.A budget forces a company to determine how much money (will come in, will be coming in) and how much (will go out, will be going out).

5.A company’s accountants (involve, are involved) in analyzing production costs.

Ex. 2. Find the predicate and define its Tense and Voice. Translate the sentences into Russian.

1.Accounting helps managers plan and control a company’s operations.

2.Investors and shareholders are concerned with the company’s profit potential.

3.The management accounting system covers a wide range of financial activities.

4.The master budget is based on several component budgets, including sales budget and the production budget.

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5. Government agencies need objective information about the company’s activity.

* * *

Read Text B and do the tasks given after it. Ask questions on the

text for your groupmates to answer. Use these answers for making up a summary of Text B.

TEXT B

REASONS FOR STUDYING INTERNATIONAL ACCOUNTING.

The growth of international business transactions during recent decades has been so phenomenal that virtually every country has become more dependent on international trade and investment.

Behind the expansion of international business there is the common desire of countries to enhance the standards of their living, even as they face domestic shortages.

The impact of international developments affects far more than just those firms engaged in international business. As a result of these international business developments, the professional accounting business and financial communities had to pay greater attention to international business activities and the international problems of accounting. Managers often found that proven ways of doing business successfully in their domestic markets were not always successful in foreign countries. Competitive conditions were unfamiliar, different laws were involved, and business and cultural practices varied from country to country - including accounting standards and practices.

In short, firms in virtually all countries were suddenly confronted with the need to increase their international awareness and skills. In addition, domestic investors and creditors found it increasingly difficult to understand the financial reports of firms with international activities. The investors and creditors, too, lacked an adequate understanding of the international aspects of business, and so the internationalized financial statements being prepared by firms often seemed confusing to them.

In response to the new need for international awareness and skills in the business and financial communities new educational programmes had

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to be developed. Future accountants should be knowledgeable about the international dimension of business, and particularly about the internal aspects of accounting. Accounting reports that are prepared on the basis of different national accounting standards and kept in different national languages and currencies need to be adjusted, translated and consolidated.

These reports must be prepared to satisfy the needs of owners, various governments and international agencies. The flow of accounting reports across national borders generates the real need for an international dimension in accounting. Accounting is the language of business.

For it to serve the needs of international investors, creditors and managers, it must become an international language that seeks to harmonize accounting standards and reports. But apart from the needs of international investors, creditors and managers there is another important reason for studying international accounting: to learn from the experiences of other countries Yet, at the same time while the purposes may be the same in different countries, there are often differences in the approach taken.

Accounting for inflation is a good example. Almost all countries attempt to account for inflation, but their approaches differ. Some methods of accounting for inflation are more successful than others .By studying how various countries account for inflation, and what successes they have, another country can more efficiently design or adapt its own approach.

The same general benefits can be gained from the studying of many other foreign accounting practices.

Finally, studying another country’s accounting system also helps the individual to better understand his or her own country’s accounting system.

I. Find the equivalents of the following Russian words:

международный, феноменальный, экспансия, стандарты, бизнес, профессиональный, проблемы, культурная практика, инвесторы, кредиторы, аспекты, агентства, инфляция, реальный, менеджеры, гармонизировать, методы.

II. Make up a list of key words for Text B.

III. Make up a plan of Text B.

IV. Express the main idea of Text B.

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* * *

Translate Text С in Russian in writing in 45 minutes. Use the

dictionary. Answer the question: Why are the government bonds attractive to investors?

Text C

THE GOVERNMENT AND CREDIT

Government policies can greatly affect credit and its costs. This is seen in the indirect way that government borrowing affects interest rates. Heavy government borrowing results in rising interest rates. This happens because commercial borrowers must compete against the government for investor loans. In addition, most commercial notes and bonds carry higher interest rates than government bonds. They do because government bonds are considered safer and often have tax-free advantages. These advantages make government bonds attractive to investors. This, in turn, forces commercial borrowers to offer to pay higher interest rates in order to attract investors willing to lend money.

When the debts of the government fall due, many of them are “paid” by new borrowings, often at higher rates of interest. Borrowing by government agencies can add to the danger of price increases called inflation. The more the government borrows, the more it increases the borrowing and adds to the exchange instruments in circulation. Notes and bonds can often be transferred or used as payments by their holders. This makes them serve as a medium of exchange and adds to the money supply.

The government also affects credit by its policies in setting discount rates. The discount rate is the interest rate that the Central Bank charges member banks that borrow from it. Today in Russia it is 21 percent. If the member bank finds itself short of money to extend new loans, it can borrow from the Central Bank. In this way the bank can raise fresh money for lending purposes. By its discount policies the Central Bank helped make money and credit available as they are needed.

Notes: 1. heavy borrowings - крупные займы

2.to find oneself short of something - испытывать недостаток в чем-либо

3.to raise money - занимать деньги

4.to fall due - наступать (о сроке платежа)

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UNIT III

Text for Study: Key Accounting Concepts (Text A)

Grammar Guide: Modals

Supplementary Reading:

Opening an account; The Ledger (Техt B).

Need for accounting (Text C).

PRE-TEXT TASK

I. Practise the pronunciation of the words and word-combinations from text A; memorize them.

1.data ['deItq] - данные

2.to be guided ['gaIdId] - руководствоваться

3.accounting equation [q'kauntIN I'kweIS(q)n] - балансовое уравнение

4.double-entry bookkeeping ['dAbl 'entrIı'bVk'ki:pIN] - система двойной записи

5.assets ['xsets] - активы

6.liabilities [laIq'bIlItIz] - пассивы

7.to owe [qV] - задолжать

8.treasure ['treZq] - богатства

9.outright ['aVtraIt] - непосредственно, прямо, сразу; to own

outright - абсолютно владеть

10. creditors’ claims on assets ['kredItqz kleIm] - права кредиторов на капитал

11.to deduct [dI'dAkt] - удерживать

12.remainder [rI'meIndq] - остаток

13.owner’ s equity ['ekwItI] - капитал собственника

14.retained earnings [rI'teInd 'E:nINz] - реинвестированная прибыль

15.to invest - вкладывать, инвестировать

16.inventory ['Inv(q)ntrI] - товарно-материальные запасы, оборотные фонды

17.rental - сумма арендной платы

18.revenues ['revqnju:z] - государственные доходы, валовой доход

19.to plow back [plaV bxk] - превращать в капитал

20.profit - прибыль, выгода

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21.ledger ['leGq] - главная бухгалтерская книга (гроссбух)

22.loose-leaf system ['lu:s li:f 'sIstqm] - система отрывных бланков

23.means [mi:nz] - средство

24.reference ['ref(q)rqns] - справка, ссылка

25.flexibility ["fleksI'bIlItI] - гибкость, универсальность

26.circumstances ['sE:kqmstxnsIz] - обстоятельства

27.cross-reference system ['krOs 'ref(q)rqns] - система перекрестной сверки

28.folio-column ['fqVlIqV 'kOlqm] - колонка фолио

II. Define what part of speech the following words belong to, translate them:

financial, accountants, fundamental, equation, bookkeeping, developed, ago, valuable, remainder, observation, corporation, shareholders, emphasize, immediately, conversion, earnings.

III. Look through Text A and find the words and word combinations which are equivalent to the following.

1.фундаментальные понятия

2.практика ведения бухучёта

3.оставаться равными

4.привлекать внимание

5.наличными

6.пункт проката видеокассет

7.две стороны балансового уравнения

IV. Think of the best Russian equivalents to the following word combinations.

1.creditors have first claim on assets

2.whichever form is used

3.“give and get” entry

4.$ 10,000 worth of which your creditor has a claim on

5.“wear and tear”

Find the sentences they belong to and translate them.

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* * *

In all their work with financial data, accountants are guided by two fundamental concepts: the accounting equation and double-entry bookkeeping. Both were developed centuries ago but remain central to the accounting process.

The accounting equation

For thousands of years, businesses and governments have kept records of their assets - valuable things they own, like gold and wheat — and their liabilities - what they owe to others. When it was said of ancient princes that they were “as rich as Croesus”3, it was not just because they had stored away much gold and grain. It was because they owned these treasures almost outright and had few debts or creditors’ claims on their assets. In other words, wealth does not consist of assets alone; it is what remains after liabilities have been deducted from assets. That remainder is

This simple observation is the basis for the all-important accounting equation:

Assets = Liabilities + Owners Equity $ 100,000 = $ 30,000 + $ 70,000

The company’s liabilities are placed before owners’ equity in the accounting equation because creditors have first claim on assets. After liabilities are paid, anything left over belongs to the owners or, in the case of a corporation, to the shareholders. However, to emphasize the amount of owners’ equity, the accounting equation may be written as

Assets — Liabilities = Owners’ Equity $ 100,000 — $ 30,000 = $ 70,000

3 Croesus was a wealthy king of Lidia

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Whichever form is used, the relationship of assets, liabilities, and owners equity remains in balance: in other words, one side of the equation always equals the other side.

Double-entry bookkeeping

To keep the accounting equation in balance, companies use a doubleentry system that records every transaction affecting assets, liabilities, or owners equity. This system dates back to 1494 and an Italian monk, Fra Luca Pacioli, who immediately caught the attention of the merchants and princess of his day. Fra Luca explained that every transaction - a sale, a payment, a collection - had two offsetting sides. No matter what kinds of transactions are made, the accounting equation remains in balance if the transactions are properly recorded. Double-entry bookkeeping requires a two-part, “give and get” entry for every transaction.

Let’s say that you decide to open a videocassette rental shop. You need to stock 1,000 cassettes, costing you $ 30 each, or a total of $ 30,000 in capital. If you have $ 20,000 of your own to invest, your accounting equation would show:

Assets = Liabilities + Owners’ Equity $ 20,000 (cash) = 0 + $ 20,000

In other words, $ 20,000 in cash is equal to your owners’ equity of $

20,000. As yet, your business has no liabilities.

Next, let’s say that you do three things:

1.You borrow from the bank the additional $ 10,000 that you need.

That $ 10,000 is added both to your cash account under “assets” and to your bank-loan account under “liabilities”. Thus, your accounting equation is kept in balance.

2.You go videocassette shopping and spend $ 30,000 on the inventory you need. Your assets are thus converted from cash into videocassettes, $ 10,000 worth of which your creditor, the bank, has a claim on. The other $ 20,000 worth of cassettes represents owner’s equity. The right side of the accounting equation is not affected by conversion of assets from one form (cash) into another (cassettes).

3.In the first month, you rent out each of the 1,000 cassettes once, charging $ 2 per rental, for total revenue of $ 2,000. You find that it costs you $ 1,500 to run your store, including salaries, rent, and $ 400 of wear and tear on your cassettes. The $ 500 excess (rental revenues minus expenses), which is your profit, is plowed back into the business. Thus, it becomes retained earnings and part of your owners’ equity.

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Earnings retained by the firm consist of the increase in assets (cash and amounts due from others) for an accounting period.

These transactions might be recorded as shown in Table 1. Notice that the two sides of the accounting equation are - and must always be - equal.

COMPREHENSION CHECK

I. Find synonyms among the following words and word combinations: data, profit, information, revenues, to owe, to remain in balance, to

have, to equal, to own.

II. Combine the words given below into meaningful 2-3 word expressions: valuable, equity, equation, things, owner’s, accounting, earnings,

double-entry, total, keep, bookkeeping, revenue, records.

III.Match the terms (1-6) with the definitions (a-f).

1.accounting equation

2.double-entry bookkeeping

3.liabilities

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4.assets

5.inventory

6.profit

a.Money left over after expenses and taxes have been deducted from sums received from the sales of goods or services.

b.Physical objects and intangible rights that have economic value to the owner.

c.Goods held on hand for the production process or for sales to final customers.

d.Assets equal liabilities plus owner’s equity.

e.Debts or obligations a company owes to other individuals or organizations.

f.Way of recording financial transactions that requires two entries for every transaction so that the accounting equation is in balance.

IV. Say if something is wrong in the following statements.

1.The accounting equation and double-entry bookkeeping were developed recently.

2.Wealth consists of assets alone.

3.Assets is what remains after liabilities have been deducted from assets.

4.One side of the accounting equation is not always equal to the other side.

5.To keep the accounting equation in balance, companies use an one-entry system of records.

6.Double-entry bookkeeping requires a two-part entry for each transaction.

V.Study Table 1 thoroughly and say whether the two sides of accounting equation are really equal.

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