3.Answer the following questions:

1. What is debit?

2. What is credit?

3. What is accounting equation?

4. What is liability?

5. What is asset?

6. What are total debits equal to?

7. What does double-entry system enable to?

8. What are the advantages of double-entry system?

4.Find in the text the words with opposite meaning:

Debit disadvantage

Credit right side

Tangible increase

Take owed

Profit

5.Fill in the pair conjunctions both...And, either...Or, neither...Nor :

1. Assets are ______ owed to someone else _____ are owned clear of debts.

2. Company would ____discuss details ____ comment on the outcome of negotiations.

3. The output of the factory can refer to _____ the types _____ quantity of things it produces.

4. Goods are products that people _____ need _____ want.

5. These jobs exist in ____ small _____ large companies.

6. Organizations can be____ public_____ private.

7. Everything that is owned is _____ owed _____ is free of debts.

8. Assets may be ____tangible ____intangible.

UNIT 6

1.Memorize the following words and word combinations:

external - внешний, зовнішній

applicable - применимый, застосований

to view - рассматривать, розглядати

resolving - разрешение, розв’язання

access - доступ, доступ

capacity - способность, можливість

to attempt - пытаться, намагатися

reconcile - улаживать, приводити у відповідність

reliability - надежность, надійність

uniformity - единообразие, одноманітність

to ensure - обеспечивать, забезпечувати

comparability - сопоставимость, зіставлення

judgement - оценка, судження

regulation - правило, правило

2.Read and translate the text: accounting standards

Accounting standards may be defined as «... uniform rules for exter­nal financial reporting applicable either to all or to a certain class of entity». Accounting standards may be viewed as a method of resolving po­tential conflicts of interests between the various user groups which have access to company accounts. The various groups have different objec­tives, information needs, and capacities for the generation and interpreta­tion of information and, therefore conflicts may arise between groups outside the entity. It is a role of accounting standards to attempt to recon­cile the conflicts. A number of important issues for the accounting profes­sion should be mentioned here. These issues are as follows:

1. Reliability. Accounting information should be reliable in use.

2. Uniformity. The pressure for the standardization of accounting practices is to ensure a uniformity of treatment of data and hence an identity of the meaning of information.

3. Comparability. Reliability and uniformity are integrated in the notion of comparability.

4. Judgment. Accountants say that they should be allowed to exer­cise some judgment in interpreting data. This implies that some variety should be allowed for in the procedures available for transforming data into information.

Accounting practice and financial reporting regulation have shown great variety internationally. In recent years there has been growing inter­est in the harmonization of international accounting. Factors which have stimulated the movement towards harmonization have included the in­creasing internationalization of business, the importance of multinational companies in the world economy, and the development of international capital markets. In 1973 the International Accounting Standards Commit­tee (IASC) was established in an attempt to coordinate the development of accounting standards internationally.