2. Read and translate the text: types of account

This text gives you more information about different kinds of ac­counts. Assets. Assets are rights to use resources that are expected to result in future economic benefit for the accounting entity.

Cash. The cash account shows the cash effects of business transactions. Cash means money and any medium of exchange that a bank accepts at face value. Cash includes currency, coins, money or­ders, certificates of deposit, and checks. The cash account includes these items whether they are kept on hand, in a safe, in a cash register, or in a bank.

Notes Receivable. A business may sell its goods or services in exchange for a promissory note, which is a written pledge that the cus­tomer will pay the business a fixed amount of money by a certain date. The notes receivable account is a record of the promissory notes that the business expects to collect in cash.

Accounts Receivable. A business may sell its goods or services in exchange for an oral or implied promise for future cash receipt. Such sales are made on credit (on account). The accounts receivable account in­cludes these amounts.

Prepaid Expenses. A business often pays certain expenses in ad­vance. Pre-paid expenses are assets because they will be of future benefit to the business. The ledger holds a separate asset account for each prepaid item. Prepaid rent and prepaid insurance are prepaid ex­penses that occur often in business. Office supplies are also accounted for as prepaid expenses.

3.Answer the questions:

1. What is an asset?

2. What is cash account?

3. What are notes receivable?

4. What are accounts receivable?

5. What are prepaid expenses?

4.Complete the following statements:

1. Cash means______ .

2. Cash account includes_______ .

3. Promissory note is ______.

4. The accounts receivable account includes _____.

5. Office supplies are accounted for as______ .

5.Match the terms and their definitions:

1.Expenses a. Documents in which a person promises to pay

a fixed sum of money on demand.

2.Transactions b. Amounts owed to a business by suppliers of

goods and services.

3.Accounts receivable c. The cost of assets consumed in the process

of earning revenue.

4.Promissory notes d.The economic events of the enterprise recorded

by accountants.

Unit 10

1. Memorize the following words and word-combinations:

to recall - напоминать, нагадувати

notes payable - выданный вексель, вексель виданий

account payable - кредиторская задолженность, кредиторська

заборгованість

to imply - предполагать; мати на увазі, припускати

to split - разбивать, розбивати

remainder - остаток, залишок

to merge - соединять, з’єднувати