Добавил:
ivanov666
Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз:
Предмет:
Файл:Английский язык для бухгалтеров. Учебное пособие
.pdf
3. Match a line in A with a line in B to define the following terms:
A B
1. Revenues
2. Net profit
3. Balance sheet
4. Owner’s equity
5. Accounting
period
a) The difference between the total revenues earned
and the total expenses incurred during a particular
period of time.
b) Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result
in increases in equity, other than those relating to
contributions from equity participants.
c) The residual interest in the assets of the enterprise after deducting all its liabilities.
d) The statement which provides information about
enterprise’s assets, liabilities and equity and their
relationship to each other at a point in time.
e) The period of time spanning the date between
two consecutive balance sheets and to which the
profit and loss account relates.
4. Match the words which are very close in their meaning:
1) enhancement
2) entity
3) to constitute
4) to count
5) to monitor
6) to render
7) receivables
8) performance
9) to require
10) to cease
a) to consider
b) enterprise
c) debtors
d) to control
e) to demand
f) actions
g) increase
h) to make up, to form
i) to stop
j) to provide
5. Fill in the blanks using the words from the list in the bottom:
Net income is __________ in owner’s equity resulting from the profit-seeking __________ of a company. Net income equals __________ minus __________. Revenues are the measure of the asset values received
from customers as a result of __________ during a specific period of time.
Expenses are __________ of goods and services used up in the process of
obtaining revenues.
a) income earning activity; b) expenses; c) operations; d) revenues;
e) the costs; f) the net increase
71
6. Open the brackets and put the verbs into the correct form:
1. The entity’s major or central operations may be constituted either
by (to deliver) or (to produce) goods or by (to render) services.
2. Revenues equal the price of goods (to sell) and services (to render)
during certain time.
3. (to borrow) money from a bank increases cash and liabilities but
does not result in revenues.
4. (to count) the collection of the receivable as revenue later would be
(to count) the same sale even twice.
5. The revenue for a given period of time is the total of cash and re-
ceivables from goods (to sell) and services (to provide) to the customers
during that period.
7. Test your knowledge of the text by choosing the best answer for
the items below:
a) if a company has revenues of $350,000 and expenses of $280,000
the net profit of the company is:
1) $160,000; 3) $70,000;
2) $18,000; 4) $26,000.
b) if expenses exceed revenues:
1) owner’s equity increases;
2) net loss occurs;
3) net profit occurs.
c) revenues are reflected by a rise in owner’s equity. Decide which of
the following transactions result in revenues:
1) borrowing money from a bank;
2) the collection of Accounts Receivable;
3) receiving cash for the goods sold;
4) settlement of an entity liabilities.
d) the net increase in owner’s equity resulting from business operations is called:
1) net profit; 3) expense;
2) revenue; 4) asset.
e) The costs of the goods and services used up in the process of obtaining revenue are called:
1) net profit; 3) expenses;
2) revenue; 4) liabilities.
Language study: both … and / neither … nor / either …or / not only
… but also.
72
8. Study these sentences:
When a business provides a service or delivers a product to a customer, it usually receives either cash or promise to pay cash in the near future.
(It receives cash. It receives promise to pay cash.)
For example, borrowing money from a bank increases both cash and
liabilities. (Borrowing money from a bank increases cash. Borrowing money from a bank increases liabilities.)
Expenses result not only in a decrease in owner’s equity but also in a
decrease in assets or an increase in liabilities. (Expenses result in a decrease
in owner’s equity. Expenses result in decrease in assets or an increase in
liabilities.
Neither investment in the company nor loan from a bank is regarded
as revenues. (Investment is not regarded as revenues. Loan is not regarded
as revenues.)
9. Join these sentences using the words in brackets:
Example: Capital is finance invested in a business by the owner. Capi-
tal is finance invested in a business by an outside firm. (either … or)
Capital is finance invested in a business either by the owner or by an
outside firm.
1. Firms can be retailing. Firms can be manufacturing. (either … or)
2. Firms will buy in large quantities of stock during a year for resale.
Firms will buy in large quantities of stock during a year for use in the manufacturing process. (either … or)
3. Expenditure on acquiring fixed assets is not regarded as expenses.
Withdrawal is not regarded as expenses. (neither … nor)
4. Revenues must be included in the calculation of a firm’s profit. Expenses must be included in the calculation of a firm’s profit. (both … and)
5. The proprietor will want to know the profits earned by a business.
The proprietor will want to know the losses incurred by the business. (not
only … but also)
Understanding complex sentences
10. Study this sentence from the text:
The collection of accounts receivable, which increases cash and de-
creases accounts receivable, does not result in revenue either.
Read the italic part of the sentence. This is the basic part. The under-
lined phrase beginning WHICH gives us extra information: it is a relative
73
clause. The first gives us more information about the subject; the second
defines the subject.
The use of relative clauses can make it more difficult to understand a
sentence because it interrupts the basic subject-verb-object sequence. This is
special true in the long, complex sentences typical of academic English.
If you have difficulty understanding a phrase containing a relative,
read it twice. If you still have difficulty, take out the relative clause and
study the basic part of the sentence first. Then consider the meaning of the
phrase with the relative clause. What does the relative pronoun (who, what,
which, whom, whose) refer to? What extra information does it give you, or
how does it define the word it refers to?
11. Read and translate the following complex sentences. Find the
subjects, main verbs and objects. What do the relative pronouns refer
to?
1. The order in which current assets appear in the balance sheet is
said to be in the reverse order of liquidity; that is, the most permanent
comes first, and that asset, which is closest to being turned into cash comes
last.
2. Lorries would normally be considered to be fixed assets except in a
firm whose business is to sell lorries.
3. The role of the budget officer who is an accountant and is appointed by the budget committee, is, in addition to providing information,
rendering a valuable advisory service for the line managers.
4. The major task of the budget committee which consists of highlevel executives who represent the major segments of the business is to control the coordination of the budgets.
5. The managers who are responsible for meeting the budgeted performance should prepare the budget for those areas for which they are responsible.
6. The profit and loss account is a statement which summarizes an enterprise’s trading activities and provides information about its sales revenues and the costs that have been incurred to generate these revenues.
7. The balance sheet can be likened to a photograph of the financial
state of the business showing, on the one hand, what the firm has and, on
the other hand, where the money came from to acquire those assets.
8. Liabilities which are due for settlement within the short term,
which is normally regarded as being within twelve months of the date of
the accounts are called current liabilities.
74
12. Read the text and then fill in he gaps with an appropriate
form of the word in capitals at the end of each line.
INCOMES
While all businesses will have to pay for a 0) variety of expenses to enable them to operate, some will
also receive income for the services they provide for
others. For many businesses the 1) ______________
receipt of money comes from sales of their stock.
However, there are money receipts which come from
sources other than sales of stock. For example, a business may own property which it doesn’t need for its
2) ___________ use but which it doesn’t wish to sell.
Renting this property to another firm will enable it to
gain 3) ________________ income.
Care is needed in the accounts to distinguish such
receipts from 4) ____________ . It is usual to label an
account for income received from providing property
‘rent received account’ to avoid 5) _____________
with the rent account which is for the expense involved
when another’s property is used by the firm itself.
VARY
MAJORITY
OWNERSHIP
USE
PAYABLE
CONFUSE
READING FOR DETAILS AND LANGUAGE STUDY:
SECTIONS C AND D
1. Check that you understand the detailed questions below and
answer them.
1. What are expenses?
2. What do expenses result in?
3. Why are expenses sometimes called expired costs?
4. Are withdrawals considered to be expenses?
5. What is profit and loss account aimed at?
6. What format does the profit and loss account have?
7. What is gross profit?
8. What is net profit?
75
2. Match English words or phrases in column A with correspond-
ing Russian ones in column B:
A
1) cash receipts
2) expenditure of cash
3) incurrence of liabilities
4) ongoing operations
5) to gain revenues
6) depreciation of plant
7) cash payments
8) prepaid expenses
9) to acquire assets
10) expired costs
11) manufacturing account
12) trading account
13) gross profit
14) stationery
a) взятие на себя обязательств
b) износ оборудования
c) расчет наличными
d) кассовые поступления
e) приобретать активы
f) истекшие издержки
g) получать доходы
h) счет производственных издержек
i) валовая прибыль
j) расходование наличных
k) канцелярские товары
l) счет торговых издержек
m) авансированные расходы
n) текущая деятельность
B
3. Match a line in A with a line in B to define the following terms:
A B
1. Expenses
2. Gross profit
3. Profit and loss
account
4. Depreciation
5. Accounts
Payable
6. Net profit
a) The statement which determines the level of
profit, or loss, which has been earned by a firm
over an accounting period.
b) Persons or companies etc. who owe money to
the enterprise normally arising from the provision
of goods or services on a non-cash or credit-basis
for which payment has not yet been made.
c) The difference between the revenue earned
from sales and the cost of the goods sold.
d) Decreases in economic benefits during the
accounting period in the form of outflows or incurrences of liabilities that result in decreases in
equity, other than those relating to distributions to
equity participants.
e) The gross profit less all operating and selling
expenses.
f) The process of allocating the net cost of a
long-lived asset over its estimated life.
76
4. Fill in the blanks using the words and phrases from the list in
the bottom.
A. Most non-accountants have heard of the profit and loss account
and the balance sheet. Although these terms have become part of everyday
language and refer to the two most important financial statements in use in
business, they are still widely misunderstood.
1) ___________________ are normally produced annually by all profit-oriented organizations, for tax purposes if for no other, but can be produced more regularly. In fact, most larger firms produce these statements
monthly for management purposes.
Each statement provides the reader with a different view of the financial
health of an enterprise, thus 2) _____________ shows the financial status of a
firm at a precise moment in time by stating everything that a firm owns (its
assets) and how much, and to whom, the firm owns money (its liabilities).
3) _______________ shows how successfully a firm has traded over a
given time period and how it has moved from the situation shown in one
balance sheet to that shown in the next one. Put simply, it shows how much
has been earned and what costs have been incurred in an accounting period.
A moment’s thought will show why there are two financial statements –
the balance sheet shows 4) _______________ , and the profit and loss account shows 5) ______________ of what has happened over time.
a) the balance sheet; b) a summarized picture; c) the current situation;
d) the profit and loss account and the balance sheet; e) the profit and loss
account
B. The objective of the profit and loss account is to determine
1) ____________ , which has been earned by a firm over an accounting
period. It does this by listing all revenues and then deducting all
2) ____________ , which have matched to the accounting period being considered.
Revenue would include all income that a firm would normally expect
to earn in an accounting period. For majority of firms, these would be restricted to 3) _______________ . They would not include sources of cash
such as 4) _____________ or income from the sales of assets. Such sources
are not ‘normal’ or ‘renewable’.
Expenses consist of the monetary value of the assets used up in obtaining these revenues. They would include all costs which a firm would expect
to incur every year. They are recurrent (текущий) costs and the firm receives nothing permanent in return. Examples of such expenses would be
5) ______________ .
a) expenses; b) capital introduced, loans raised, grants received; c) the
level of profit, or loss; d) wages, raw materials, rent; e) sales, fees earned
and interest received
77
5. Analyze the use of Participle II Passive in the text below:
Gross Profit
(calculated in the
This is the excess of sales over the
a) an attribute b) part of a verbal predicate
TRADING AND PROFIT AND LOSS ACCOUNTS
Undoubtedly one of the most important uses of the trading and profit
and loss account is comparing the results obtained with the results expected. Many business attach a great deal of importance to their gross profit percentage. This is the amount of Profit made, before deducting expenses, for every $100 of sales. In order that this may easily be deduced
from the profit calculations, the account in which profit is computed is
split into two sections – one in which the Gross Profit is found, and the
next section in which the Net Profit is calculated.
Trading Account)
Net Profit (calculated in the Profit
and Loss Account)
cost of goods sold in the period.
What remains after all other costs
used up in the period have been
deducted from the gross profit.
The gross profit, found by the use of the Trading Account, is the
excess of sales over the cost of goods sold. The net profit, found when the
Profit and Loss Account is prepared, consists of the gross profit plus any
revenue other than that from sales, such as discounts received or commissions earned, less the total costs used up during the period Where the cost
of goods sold is greater than the sales the result would be a Gross Loss, but
this is a relatively rare occurrence. Where the costs used up exceed the gross
profit plus other revenue then the result is said to be a Net Loss. It can be
seen that the accounting custom is to calculate trader's profits only when the
goods have been disposed of and not before.
6. Using information on capital and revenue expenditure, complete the table below by putting a tick in those columns which are relevant to each item.
CAPITAL AND REVENUE EXPENDITURE
Capital expenditure is expenditure on acquiring fixed assets. These are
those assets which are bought to last the business a long time and which
help to make profits over that period.
Revenue expenditure is the spending which relates to benefits which
do not last for longer than one year. Therefore it would be wrong to include the purchase of a fixed asset in the calculation of one year’s profit.
The distinction between capital expenditure and revenue expenditure is
not always clear cut. For example, some kitchen equipment bought by
J. Brooks for her restaurant might have an estimated working life of five
years. She might decide that each year one fifth of the cost of this equip-
78
ment should be deducted from that year’s profits to allow for its depreciation in value. One fifth of the asset’s cost will be removed from the asset
account and transferred to an account for depreciation. This depreciation
will then be counted as one of the items of revenue expenditure for that
year’s income in order to obtain the profit figure.
So, even the purchase of a fixed asset, which counts as capital expenditure, may directly result in an expense which is included in calculation of
profit.
Judy Brooks recently opened a restaurant. Some of her items of
expenditure are listed below.
Items of expenditure Capital Revenues
Used in
measuring profit
a) Purchase of premises
b) Wages
c) Insurance
d) Purchase of equipment
e) Gas and electricity
f) Purchase of china
g) Advertising
h) Repairs of equipment
7. Analyze the text about capital and revenue receipts, then define
whether the statements below are true (T) or false (F).
CAPITAL AND REVENUE RECEIPTS
A capital receipt is finance invested in a business by the owner or by
an outside firm. Suppose that J. Brooks, the owner of a restaurant, decided
to invest an additional $1,000 of her own money in her business and paid
this amount into the business bank account. Would it be fair to count this
amount as revenue received for that year, from which expenses will be deducted to calculate profit? Clearly not, as the business is not earning any
revenue but is being given additional finance to use.
Similarly, finance may be received by way of a loan from another person or firm. An increase in capital which will follow is not revenue earned,
however, but simply additional finance borrowed for use in the business.
Revenue receipt is money gained from the normal profit-making activities
of a business.
In a business which sells goods, the value of the sales will be the major item of income or revenue. Other business, such as accountants or lawyers, receive fees for their services rendered.
79
Statements T F
1. The sale of a car by a car dealer results in the receipt of revenue.
2. A legacy (наследство) received by the owner of a business and
invested in the business is an example of a receipt of revenue.
3. Wages paid to employees are an example of expenses.
4. Revenue and expenses must be included in the calculation of a
firm’s profit.
5. The purchase of fixtures and fittings is an example of capital
expenditure.
6. Withdrawals from the company by the owner decrease the owner’s equity and are considered to be expenses.
7. Borrowing money from a bank results in receipts of revenue.
8. 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.
9. The definition of profit can be abbreviated to: revenue receipts
less revenue expenditure.
10. Repairs to a damaged machine are an example of capital expenditure.
8. Read the text and then fill in the gaps with an appropriate
form of the word in capitals at the end of each line.
DEPRECIATION
This is the expense incurred when one of the fixed assets 0) owned by a business falls in value. Just as ‘debtors’
cannot be 1) __________ to include any amounts which will
not be collected, so it would be wrong to allow an asset, such
s motor vehicles, machinery or fixtures and fittings, to be
valued at a figure greater than its 2) ______________ worth.
For example, B. Wilson purchased a delivery van on
27 April for $1,500. By 31 December of that year it was
worth only $1,100. Its value had fallen or 3) _____________
by $400.
Discount allowed (допустимая скидка), bad debts and
depreciation are all expenses 4) ____________ incurred in
running a business. The difference between them and other
expenses like rent, rates and insurance is that, instead of a
direct money payment being made, an asset other than bank
or cash is reduced in 5) _____________ .
80
OWNERSHIP
ALLOWANCE
TRUTH
DEPRECIABLE
UNCOMMON
VALUABLE
Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]