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Файл:Английский язык для бухгалтеров. Учебное пособие
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8) кредитовый остаток, кредитовое сальдо
9) дебетовое сальдо
10) пробный баланс
3. Complete the following sentences with the words and word
combinations given below:
1. A ________ __________ is a statement of the assets and sources
of finance of a business at a particular date.
2. A ________ __________ is an individual record of transactions
affecting one aspect of the business.
3. An asset is represented in its own account by a _______ _______.
4. Increases in the value of an asset require a __________ entry in
that account while decreases in value require a __________ entry.
5. _______ _______ book-keeping is the name given to the system
whereby the dual effects of each transaction are recorded in the ledger.
6. A source of finance is represented in its own account by a _______
balance.
7. Increases in the value of a source of finance require a ________
entry in that account while decreases in value require a _________ entry.
a) ledger account; b) credit………debit; c) balance sheet; d) double
entry; e) debit balance; f) debit……credit; g) credit
4. Multiple-choice questions.
1. Which of the following statements is correct?
Effect upon
Assets Liabilities
a) We paid a creditor by cheque – Bank – Creditors
b) A debtors paid us £90 in cash + Cash + Debtors
c) J Hall lends us £500 by cheque + Bank – Loan from Hall
d) Bought goods on credit + Stock + Capital
2. Which of the following best describes a Trial Balance?
a) Shows the financial position of a business.
b) It is a special account.
c) Shows all the entries in the books.
d) It is a list of balances on the books.
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3. Is it true that the trial balance totals should agree?
a) No, there are sometimes good reasons why they differ.
b) Yes, except where the trial balance is extracted at the year end.
c) Yes, always.
d) No, because it is not a balance sheet.
5. Read the text below. Use the word given in capitals at the end
of each line to form a word that fits in the space in the same line. There
is an example at the beginning (0).
THE USE OF COMPUTERS
Microcomputers have a (0) substantial impact on
accounting. Many programs have been developed
which perform the basic task of recording financial
transactions.
All programs require the user to create the necessary ledger accounts – such as for sales, purchases,
debtors, creditors, bank and all the usual (1) ________
accounts – giving each account a unique code number.
Once created, the user then feeds in the transactions
and the accounts are (2) ____________ updated.
The benefits are obvious. Little, or no, knowledge
of book-keeping is required to maintain ‘perfect’
books, as the machine does that automatically. So long
as the proper codes are used, the records will always be
accurate, and, (3)______________ the most useful
benefit, all this can be performed at speed.
The drawbacks are, perhaps, equally obvious. Errors can be still made and such errors will also be made
at the speed of (4) ___________ . Another problem
area is disk (5) ____________ . Computer disks are
very (6) ____________ , and, if they become corrupted, all data on them can be lost. To prevent this
happening, users of computers should always make
SUBSTANCE
EXPEND
AUTOMATION
PROBABLE
ELECTRICAL
SECURE
SENSE
back-up copies, on separate disks, of all work done.
6. Fill in the spaces in the sentences below using a suitable prepo-
sition where necessary.
1. She had been involved ____ several suspicious transactions.
2. Investors feel the company is entering ____ too many risky trans-
actions.
3. The left-hand side is known as the debit side but is usually abbre-
viated ___ ‘Dr’.
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4. Did the newspapers really affect ___ the outcome of the election?
5. Scientists are studying the chemical's effect ___ the environment.
6. The sum of all debit balances must equal ____ the sum of all credit
balances.
7. The government must now deal ____ the problem of high unem-
ployment.
8. I don't like buying things ___ credit.
9. Can I pay ___ cheque?
10) Do you want to pay ____ cash or ____ credit card?
ACTIVITIES
1. State the accounts to be debited and credited for each of the
following separate transactions:
a) Purchased equipment by cheque £600.
b) Sold motor vehicle by cheque
c) Purchased stock by cash £150.
d) Paid £400 cash into bank.
e) Withdrew £300 from the bank for use as cash.
f) Paid trade creditors £50 cash.
g) Paid trade creditors £450 by cheque.
h) Paid £250 cash into the bank.
i) Received £250 from debtors in cash.
2. From the following information open ledger accounts. Then
enter the transactions, opening new accounts when necessary.
Balance sheet of Jill Evans as at 1 May 1990
£ £
Premises 33,000 Capital 65,000
Equipment 15,000 Trade creditors 6,750
Debtors 5,500
Stock 17,000
Cash 1,250
71,750 71,750
1. May Purchased equipment for £500 by cash.
2. May Purchased £950 stock from AJK on credit.
3. May Sold £2,000 of old equipment at book value for cash.
4. May Opened a bank account by paying in £500 cash.
5. May Paid £ 300 of amount owing to trade creditors by cheque.
6. May Sold £ 300 worth of stock for £5000 cash.
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3. Complete the following table showing which accounts are to be
credited and which are to be debited:
Transactions
Goods bought on credit from
J Reid.
Goods sold on credit to
B Perkins.
Motor vans bought on credit
from H Thomas.
Goods sold, a cheque being
received immediately.
Goods sold for cash.
Goods we returned to
H Hardy.
Machinery sold for cash.
Goods returned to us by
J Nelson.
Goods bought on credit
from D Simpson.
Goods we returned to
H Forbes.
Accounts
to be debited
Accounts
to be credited
4. Enter up the following transactions in the accounts needed:
2005
July 1 Start business with $500 cash.
2 Bought goods for cash $85.
7 Bought goods on credit $116 from E Morgan.
10 Sold goods for cash $42.
14 Returned goods to E Morgan $28.
18 Bought goods on credit $98 from A Moses.
21 Returned goods to A Moses $19.
24 Sold goods to A Knight $55 on credit.
25 Paid E Morgan's account by cash $88.
31 A Knight paid us his account in cash $55.
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GLOSSARY
assets n.
circulating (current)
assets
fixed assets
актив (баланса)
оборотные фонды, оборотные средства (денежные средства, вложенные в запасы сырья,
материалов, топлива, готовой продукции, а
также счета в банках
основные средства (владения постоянного,
неизменного характера, предназначенные
для производства и продажи продуктов)
balance v. сводить, закрывать (счета)
current adj. находящийся в обращении, текущий
double entry
book-keeping
double-entry system
двойная бухгалтерия
система двойной записи
draw up v. составлять (документ)
equation n. уравнение; равенство
fixtures and fittings приспособления и принадлежности
flexibility n. гибкость
hold true v.
выполняться, сохраняться (напр. об условии)
indebtedness n. задолженность (наличие долговых обяза-
тельств по отношению к кому-л.)
ledger n. главная книга, гроссбух
liabilities n.
current liabilities
long-term liabilities
денежные обязательства
краткосрочные обязательства
долгосрочные обязательства
machinery n. машинное оборудование;
motor vehicles n. автомобили
net worth стоимость имущества за вычетом обяза-
тельств, собственный капитал предприятия
owner’s equity собственные средства, капитал владельца
permanent adj. постоянный, неизменный; долговременный;
перманентный
possessions n. собственность; имущество; владения,
premises n.
industrial premises
недвижимость; дом с прилегающими по-
стройками;
производственные помещения
proprietor n. собственник, владелец; обладатель, хозяин
reference n. справка; справочная информация;
ссылка; упоминание
substantial a. значительный, существенный
twofold adj. двойной; парный, сдвоенный, удвоенный
van n. фургон
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U n i t 4
MEASURING AND ACCOUNTING FOR PROFIT
BEFORE YOU READ
1. What do you think the main objective of any business is?
2. Why is measuring profit of vital importance to all businesses?
3. Why will the owner want to know how much profit has been
made? Some of the reasons have been mentioned for you, can you add
any more?
– to compare the results obtained with the results expected;
– to assist the owner to plan ahead;
– to help him to obtain a loan from a bank or from a private individual;
– to attract a prospective partner;
– to show to a person to whom he hopes to sell the business;
– for income tax purposes.
READING FOR GIST
1. Skim the text about measuring and accounting for profit. Find
an appropriate heading for each section (letters A – D):
1) revenues;
2) profit and loss account;
3) expenses;
4) measurement of business profit.
A
Business enterprises are engaged at all times in activities aimed at
earning profit. It would be fairly easy to determine the profit of a company
if we could wait until the business ceased to exist. However, the business environment requires a firm to report profit or loss regularly for short and equal
periods of time. For example, owners must receive profit reports every year,
and the government requires the company to pay taxes on annual profit. Within the business, management often wants financial statements prepared every
month, or more often, so that it can monitor performance.
Faced with these demands, the accountant measures net profit in accordance with generally accepted accounting principles.
The profit made by a business is simply defined as the difference between the total income or revenue earned and the total expenses incurred
during a particular period of time. Particularly in American accounting language the word ‘income’ is used instead of ‘profit’:
net profit (net income) = revenues – expenses
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If earnings are less than expenses, profit is negative. In practice the
term ‘loss’ is more frequently used.
The trouble with a simple definition is that it often hides a number of
difficulties, and this one is no exception. The calculation itself is not especially difficult. The main problem lies in the need to answer the questions: What
counts as expenses incurred? And what counts as income or revenue earned?
B
Revenues “are inflows or other enhancements of assets of an entity or
settlement of its liabilities (or a combination of both) during a period from
delivering or producing goods, rendering services, or other activities that
constitute the entity’s major or central operations”. In the simplest case,
they equal the price of goods sold and services rendered during that time.
When a business provides a service or delivers a product to a customer, it
usually receives either cash or a promise to pay cash in the near future. The
promise to pay is recorded in either Accounts Receivable or Notes Receivable. The revenue for a given period of time equals the total of cash and receivables from goods and services provided to customers during that period.
Revenues are reflected by a rise in owner’s equity. Note that liabilities
are not generally affected and that there are transactions that increase cash
and other assets but are not revenues. For example, borrowing money from
a bank increases both cash and liabilities but does not result in revenue. The
collection of accounts receivable, which increases cash and decreases accounts receivable, does not result in revenue either. Remember that when a
sale on credit took place, an asset called Accounts Receivable was increased, and at the same time an owner’s equity revenue account was increased. So counting the collection of the receivable as revenue later would
be counting the same sales event twice.
Not all increases in owner’s equity arise from revenues. The investment in the company by an owner increases owner’s equity, but it is not
revenue.
C
Expenses are “outflows or other using up of assets or incurrences of
liabilities (or a combination of both) from delivering or producing goods,
rendering services, or carrying out other activities that constitute the entity’s
ongoing major or central operations”. In other words, expenses are the costs
of the goods and services used up in the course of gaining revenues. Often
called the cost of doing business, expenses include the costs of goods sold,
the costs of activities necessary to carry on the business, and the costs of
attracting and serving customers. Examples are salaries, rent, advertising
telephone service, and the depreciation (allocation of the cost) of the building and office equipment.
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Expenses are the opposite of revenues in that they result in a decrease
in owner’s equity. They also result in a decrease in assets or an increase in
liabilities. Just as not all cash receipts are revenues, not all cash payments
are expenses. A cash payment to reduce a liability does not result in an expense. The liability may have come from incurring an expense, such as for
advertising, that is to be paid later. There may be two steps before an expenditure of cash becomes an expense. For example, prepaid expenses or
plant assets (such as machinery and equipment) are recorded as assets when
they are acquired. Later, as their usefulness expires in the circulation of the
business, their cost is transformed into expenses in fact; expenses are sometimes called expired costs.
Not all decreases in owner’s equity arise from expenses. Withdrawals
from the company by the owner decrease owner’s equity, but they are not
expenses.
D
The account in which profit is measured is called the profit and loss
account. The objective of the profit and loss account is to determine the
level of profit, or loss, which has been earned by a firm over an accounting
period.
The format of the profit and loss account is normally divided into two
parts. First, there is the trading account (or manufacturing account if the
firm is in manufacturing), which identifies the profit made in simply buying
in units and then selling them. The manufacturing account identifies the
profit made in making something and then selling it. This difference, in
either the trading profit or the manufacturing profit, is referred to as the
firm’s gross profit.
The profit and loss account starts with the gross profit and deducts
from that all the remaining expenses incurred. Although there is a distinction made between the trading account and the profit and loss account, this
distinction is normally only seen in the accounts of large organizations. The
accounts of smaller firms normally do not distinguish between the two accounts except by highlighting the gross profit.
Using as an example the trial balance given above, the profit and loss
account can now be drawn up as follows:
Trading and profit and loss account of B Swift
Sales £2,853
less Cost of sales
Purchase of raw materials 1,364
Gross profit £1,489
68
for the year ended 31 December 2006
less Expenses
Rent £150
Insurance 360
Stationery 70
Delivery 16
Interest 100
Wages 240
Travel costs 25
961
Net profit £ 528
Notes:
The heading contains the name of the account, the name of the business or owner and the period for which profit is being measured.
It is incorrect to date such an account 'as at 31 December' as you
would date a balance sheet, because it contains information relating to the
measurement of profit over a particular time period. In the above
example this period is a year, although of course there is nothing to
prevent profit being measured for six months or any other time period.
The section of the account in which gross profit is calculated is known
as the trading section, while that in which net profit is measured is
known as the profit and loss section. Sometimes these sections might
appear as separate accounts, in which case gross profit is measured in
the trading account and net profit in the profit and loss account.
READING FOR SPECIFIC INFORMATION
1. Scan the text and write the letter of the section where you can
find the following information. Do it as quickly as possible:
___ profit and loss account
___ expired costs
___ manufacturing account
___ decreases in owner’s equity
___ Accounts Receivable
___ the definition of “expenses”
___ negative profit (loss)
___ trading account
___ increases in owner’s equity
___ the definition of “profit”
___ gross profit
___ the definition of “revenues”
___ net profit
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READING FOR DETAILS AND LANGUAGE STUDY:
SECTIONS A AND B
1. Check that you understand the detailed questions below and
answer them.
1. What sort of activities are business enterprises engaged in?
2. What kind of financial data does the business environment require
a firm to report regularly?
3. What is profit?
4. What is loss?
5. What are revenues?
6. What does the revenue for a given period of time equal?
7. What are revenues reflected by?
8. What types of transactions increase cash and other assets but are
not revenues?
9. Why do not all increases in owner’s equity arise from revenue?
2. Match English words or phrases in column A with correspond-
ing Russian ones in column B:
A B
1) to monitor performance
2) financial statement
3) annual income
4) net income
5) to report income or loss
6) business environment
7) owner’s equity
8) to earn revenues
9) to incur expenses
10) Accounts Receivable
11) settlement of liabilities
12) enhancements of assets
13) entity
14) to render services
15) collection of receivables
70
a) годовой доход
b) капитал владельца
c) счета дебиторов
d) взыскание дебиторской
задолженности
e) условия ведения бизнеса
f) нести расходы
g) расчет по пассивам
h) контролировать деятельность
i) отчитываться о прибылях и
убытках
j) финансовый отчет
k) чистая прибыль
l) оказывать услуги
m) зарабатывать доходы
n) увеличение активов
o) юридическое лицо
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