- •Гоу впо «алтайский государственный университет»
- •Предисловие
- •Basics of Economics
- •Defining Economics
- •Types of Economies
- •I variant
- •II variant
- •Part II
- •Words and word combinations you may need
- •Interview with the Economist
- •Note on the dialogue
- •I variant
- •II variant
- •Read for more information
- •Economics and Its Great Men
- •Management
- •Job Titles
- •Traditional interpretation
- •Another interpretation
- •Vocabulary
- •Vocabulary
- •Vocabulary
- •Management functions
- •In the first paragraph the writer says that managers:
- •Part II Selection of Personnel
- •Vocabulary Notes on the Text
- •Text 2. (Dialogue) Discussing a Candidate for the Post of a Product Executive
- •Vocabulary Notes on the Dialogue
- •International management Global Careers
- •Vocabulary Notes on the Text
- •For Additional Reading
- •Visiting Customers
- •Vocabulary Notes on the Text
- •To get more information about global management try to do the following tasks:
- •1. Managers from this country:
- •2. Managers from this country:
- •3. Managers from this country:
- •5. Managers from this country:
- •Management
- •Planning and decision making
- •Organizing
- •Leading
- •Controlling
- •More about Management
- •Finance and Credit Part I. Banks
- •Part II Money
- •What is a Gold American Eagle?
- •Characteristic of Money
- •Types of Money
- •Background
- •1. The Business
- •2. The Product or Service
- •3. Marketing
- •4. Finance
- •For Additional Reading
- •The Central Banking System
- •The us Treasury
- •Personal Finances
- •Accounting and Auditing
- •Accounting: Changes and Prospects
- •The Budget. Taxes
- •Vocabulary List
- •Vocabulary List
- •Texts for Additional Reading
- •The Federal Budget
- •Taxation
- •Factors of Production
- •Taxation
- •Vocabulary List
- •Information in Economics
- •Dialogue 1. Computers in Russia
- •Vocabulary List
- •Texts for additional reading
- •The Birth of the Web Browser
- •How does email work?
- •Vocabulary
- •Vocabulary
Accounting: Changes and Prospects
Significant changes are known to have taken place in accounting in recent years. The accountancy profession has gained a very high status. The modern accountant has begun to play an important role in business activity. As a result he is expected to perform various duties today, one of the major duties being provision of information to the management. By providing information to managers the accountant enables them to assess their own performance, to make economic decisions and to devise ways to improve their efficiency. Equally important is the task of designing accounting systems.
In spite of the centuries of evolution the double-entry principle has remained the backbone of any accounting system. At the same time, however, one can’t deny the fact that the development of human society influences accounting and makes designing accounting systems for new fields like “social accounting”, “green accounting”, “tax accounting” etc. a challenging task.
Another responsibility of accountants is to prepare financial statements, the four basic financial statements being the income statement, balance sheet, capital statement and the statement of cash flow.
One of the biggest problems facing the accounting profession is the necessity of rapid adaptation to the changes connected with the enormous growth of industry, the world globalization process and development of information technology. In this context there is a general opinion in the profession about the need to improve the quality of accounting, professional competence and accounting education. Maintaining high ethical standards, compliance with relevant laws, as well as accounting and auditing standards are also on the agenda.
Text 2. Accounting and Bookkeeping |
Task 1. Read and translate the text.
What is accounting and bookkeeping?
Accounting and Bookkeeping is the process of identifying, measuring, recording and communicating economic information about an organization or other entity. Bookkeeping is the record-keeping aspect of accounting. Accounting principles are applied in the preparation of financial statements and other financial information.
Personal record keeping often uses a simple-entry bookkeeping, in which amounts re recorded in column form. Such entries include the date of the transaction, its nature and the amount of money.
Record keeping of organizations is based on a double-entry system. Each transaction is recorded on the basis of its influence on the organization’s financial position or operating results. Information about financial position of an enterprise is presented in a balance sheet, while operating results are displayed in an income statement account. Data relating to an organization’s liquidity and changes in its financial structure are shown in a financial statement. Such financial statements are prepared to provide information about past performance, which in turn becomes a basis for readers to try to project what might happen in the future.
Accounting information
Accounting information can be classified into two categories: financial accounting or public information and managerial accounting or private information.
Financial accounting includes information distributed to stockholders, creditors, customers, suppliers, financial analysts and trade associations. This information is also of interest to the company’s officers and managers. Such information relates to the financial position, liquidity (that is ability to convert to cash) and profitability of an enterprise.
Managerial accounting deals with cost-profit-volume relationships, efficiency and productivity, planning and control, pricing decisions, capital budgeting and similar matters. This information is not generally distributed outside the company. Managerial accounting provides a wide variety of specialized reports for division managers, department heads, project directors, section supervisors and other managers.
Specialized Accounting
Of the various specialized areas of accounting that exist, the three most important are auditing, income taxation and accounting for non-business organizations.
Auditing is the examination by an independent accountant of the financial data, accounting records, business documents and other documents of an organization in order to attest to the accuracy of its financial statements. Large private and public enterprises sometimes also maintain an internal audit staff to conduct examinations concerned with operating efficiency and managerial effectiveness.
Income taxation is the second specialized area of accounting. Preparing an income tax form consists of collecting information and presenting data in a certain order; therefore both individuals and business frequently hire accountants to determine their taxes.
Accounting for non-business organizations such as universities, hospitals, churches, trade and professional associations is the third area of specialization. These organizations differ from business enterprises in that they do not have a profit orientation and they have no defined ownership interests. As a result these organizations have differences in record keeping, in accounting measurements and in the format of their financial statements.
Essential Vocabulary
income statement account – счет прибылей и убытков
accounting information – данные учета
financial accounting – финансовый учет
managerial accounting – управленческий учет
stockholder – акционер
financial analyst – финансовый аналитик
trade association – ассоциация производителей и дилеров одной отрасли
capital budgeting – составление смет капитальных вложений
accounting records – материалы бухгалтерского учета
internal audit – внутренняя ревизия, внутренний аудитор
income tax form – бланк декларации на подоходный налог
Task 2. Answer the following questions
What is done during the process of accounting and bookkeeping?
Where are accounting principles applied?
What is the difference between single-entry bookkeeping and a double-entry system?
What information is presented an a balance sheet?
Who is interested in financial accounting?
What does managerial accounting deal with?
Who can use managerial accounting information?
What is the aim of financial auditing?
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Text 3. The Double Entry System |
Task 1. Read and translate the text.
As you enter information in your books you will always make two entries which exactly balance one another. Each entry has a left side – these are called debits and a right side – these are called credits. For each entry you must enter at least one debit and one credit and the total of the amounts on the right must equal the total on the left. Another “rule” is that debits are positive and credits are negative and if you add them all together the total is “zero”.
If you go to the store and buy a drill you are decreasing your cash in the bank by $129.50. You are increasing your expenses by the same amount – and there you have your two entries. Cash gets the negative entry or credit and small tools gets the positive entry or debit.
All your asset accounts (1000 series) are debit accounts which means they are positive numbers. An asset is a positive number in the system. The liability accounts (2000 series) are called credit accounts and they are negative numbers but generally when you look at them on the balance sheet you don’t show the minus sign.
The 3000 series is sales. Sales are considered a credit account. You sell something and get some cash. Cash is a debit account. Make a sale and you better increase your cash – debit cash. Positive entry.
The 4000 and 5000 series the expense accounts are all debit accounts. You enter an expense as a positive number (debit) to increase your record of what you’ve spent. Whenever you make a purchase of an item that goes to one of your expense accounts you always increase your expense which is a debit.
Text 4. The Balance Sheet
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Task 1. Read and translate the text.
Of the two traditional types of financial statements the balance sheet relates to an entity’s position and the income statement – or profit and loss account – relates to its activity. The balance sheet provides information about an organization’s assets, liabilities and owners’ equity on the last day of the accounting or fiscal period. The format of the balance sheet reflects the basic accounting equation: assets equal equities. Assets are economic resources of the organization. Equities consist of the organization’s liabilities together with the equity interest of its owners. (For example, a certain house has assets worth $70,000: its unpaid mortgage is a liability of $45,000 and the equity of its owners is $25,000).
Assets are categorized as current or long-lived. Current assets are usually those that management could reasonably be expected to convert into cash within one year; they include cash, receivables, merchandise inventory and short-term investments in stocks and bonds. Long-lived assets include land, buildings, machinery, motor vehicles, computers, furniture and fixtures. Lon-lived assets also include intangible such as patents and trademarks.