3.Give equivalents to the following word-combinations:

Accounting standards, financial reporting, potential conflicts of interests, company accounts, information needs, accounting practice, reporting regulations, capital market.

4.Make up questions to which the following are answers:

1. It may be defined as uniform rules for financial reporting.

2. There has been growing interest in the harmonization.

3. There are four most important issues for the accounting profession.

4. Accounting practice has shown great variety.

5. The increasing internationalization of business.

6. In1973.

5.Say whether the following is true or false. Use the phrases: One can’t deny...; I don’t think...; I am sure...; It is not quite so...:

1. Accounting standards are uniform rules for internal financial reports.

2. Accounting standards may be viewed as a method of resolving potential conflicts of interests.

3. Accounting information should be reliable in use.

4. Some variety should be allowed for transforming data into information.

5. The IASC was established to control the work of accountants.

6.Fill in the blanks with proper prepositions or adverbs where necessary:

1. Accounting is often characterized ____ “the language ____ business”.

2. Accounting is concerned _____ recording, sorting, and summarizing data related _____business transactions.

3. The objective of financial statements is to communicate information _____ investors, creditors, and other users.

4. Bookkeeping is a part_____ accounting.

5. Computers are used _____many tasks.

UNIT 7

1. Memorize the following words and word-combinations:

raw data - исходные данные, вихідні дані

money measurements - денежное измерение, грошовий вимір

to set up - открывать, відкривати

item - единица, статья, одиниця, стаття у балансі

account title - название счета, назва рахунку

accounting records - бухгалтерские отчеты, бухгалтерські звіти

to take on - принимать, приобретать, набувати

entry - бухгалтерская запись, проводка, бухгалтерське

проведення, занесення у бухгалтерську книгу

to encode - кодировать, кодувати

to provide for - предоставлять, надавати

to establish - открывать, відкривати

balance - баланс, баланс

2. Read and translate the text: the account

The raw data of accounting are the business transactions. A business may be engaged in thousands of transactions during a period of time. The data in these transactions must be classified and summarized before be­coming useful information. Making the accountant's task somewhat eas­ier is the fact that most business transactions are repetitive in nature and can be classified into groups having common characteristics.

An account is an element in an accounting system that is used to classify and summarize money measurements of business activities of a similar nature. An account is set up whenever it is necessary to provide useful information about a particular business item. The number of ac­counts in a company's accounting system depends on the information needed by those interested in the business.

Accountants may differ on the account title (or name) they give for the same item. The account title should be logical to help the ac­countant group similar transactions into the same account. Once an account is given a title, that same title must be used throughout the accounting records.

Accounts may take on a variety of formats. Some accounts are print­ed, and entries are written in by hand; others are on magnetic tape, and "invisible'' entries are encoded by a computer. Every account format must provide for increases and decreases in the item for which the account was established. Once a business event is recognized as a business transac­tion, it is analyzed to determine its increase or decrease effect on the assets, liabilities, owner's equity, revenues, or expenses of the business. These increase or decrease effects are then translated into debits and credits. Then the account balance (the difference between the increases and decreases) can be determined.