- •The ok accountant успешный бухгалтер
- •Contents
- •От авторов
- •Unit 1 What Is Accounting
- •Accounting
- •Exhibit 1. Users and Uses of Accounting Information
- •Information
- •|Unit 2. Evolution of accounting
- •Venture Trading
- •Early History
- •Unit 3 accounting profession
- •The Profession of Accounting in the usa
- •Nature of Accounting Work
- •The Changing Genderization of the Work Force
- •Unit 4 Bookkeeping getting started
- •Bookkeeping
- •2. Complete the following sentences by using Gerunds of the verbs in brackets; translate the sentences into Russian.
- •1. Referring to round figures
- •2. Percentages
- •5. Ratio
- •Drawings 3672.00
- •Unit 5 financial reporting
- •Financial Statements
- •The Balance Sheet
- •Text 3 The Income Statement
- •Intangible asset accounts receivable short-term liabilities bank debts
- •Snark International Balance Sheet
- •31 December ___
- •Supplementary reading Unit I What Is Accounting Accountancy
- •Early History of Accounting
- •The Forms that Companies Take
- •Changing Skills, Changing Job Titles
- •Deloitte Touche Tohmatsu
- •Real People Profiles
- •Interviewing Tips
- •Bookkeeping
- •Tapescripts
- •Dialogue 1
- •Dialogue 2
- •Answer Key
- •Appendix Guidelines to Summarizing and Abstracting Summaries
- •Steps in Summarizing
- •Abstracts
- •Introducing the subject / theme of the text:
- •Introducing the key ideas, facts and arguments:
- •● The author makes/gives a comparison of … with… / between … and…
Early History of Accounting
Accounting has existed for many centuries. We cannot know, of course, when humans began keeping accounting records in their heads, but symbols recording transactions between tribes have been found to date back to 5000 BC. The Sumerian civilization in Mesopotamia kept such records on clay tablets beginning about 3200 ВС, and more than 3,000 years ago scribes in Babylonia and Egypt actually received what in effect was formal accounting training in schools. Persia under Darius (521-486 ВС) had government scribes who performed "surprise audits" of the accounts of the provinces, and similar audits were made in the Hebrew civilization, in which the chief scribe was the second highest position in government. However, in ancient Greece (c. 1400 ВС) it became customary to use slaves as scribes and auditors; it was assumed that statements from slaves, who could be tortured, would be more reliable than those from freemen, whom the law protected from such drastic verification techniques.
Accounting later became more prestigious in Greece, however, and records of construction costs of government buildings were carved on the structures. (One such tablet indicates that the Parthenon cost 469 silver talents, or about $2 million at today's prices. By comparison the Pyramid of Cheops in Egypt cost 1,500 talents, according to accounting records inscribed on the pyramid and reported by Herodotus.) In the Roman Empire in about 200 ВС, quaestors in the territories were responsible for supervising the local government accountants. The quaestors' reports to Rome were given in person and heard by an examiner, a practice that gives us our modern-day term auditor (from Latin audire, to hear). In the Byzantine Empire Constantine (early fourth century AD) founded a public administration school in which accounting was taught. The Holy Roman Empire under Charlemagne (642-814 AD) continued the Roman and Persian examples of government accountants and auditors; after his death this group was disbanded, and the disintegration of the empire soon followed.
Accounting declined in the Middle Ages but was revived in Italy during the Crusades. Full-blown double-entry bookkeeping appears in Genoese records of 1340, and the Office of Exchequer (from an Old French word meaning a counting table covered with a checkered cloth) developed in England. In the 15th century branches of the Medici Bank were required to submit annual balance sheets to the main office in Florence. In 1631 an accountant was sent from Holland by the financial backers of the settlement at Plymouth, Massachusetts, to investigate the colony's increasing debt; the new Americans thus experienced their first audit.4
The Forms that Companies Take
Business organizations, or companies, are a significant aspect of the U.S. and world economies. As Exhibit 1 shows, a company may be organized as a (1) sole proprietorship, (2) partnership, or (3) corporation.
Sole Proprietorship
A sole proprietorship is a company owned by one individual who is the sole investor of capital into the company. Usually the sole owner also acts as the manager of the company. Small retail stores and service firms often follow this form of organization. The sole proprietorship is the most common type of company because it is the easiest to organize and simplest to operate. In 1995, roughly 75 percent of all companies were sole proprietorships.
Partnerships
A partnership is a company owned by two or more individuals (sometimes hundreds of individuals) who each invest capital, time and/or talent into the company and share in the profits and losses of the company. These individuals are called partners, and their responsibilities, obligation, and benefits are usually described in a contract called a partnership agreement. Accounting firms and law firms are examples of partnerships. In 1995, just under 7 percent of all US companies were partnerships.
Corporations
A corporation is a company organized as a separate legal entity, or body (separate from its owners), according to the laws of a particular state. In fact, the word corporation comes from the Latin word for body (corpus). In 1995, over 18 percent of all US companies were corporations.
By being incorporated, a company can enter into contracts, own property, and sell stock. Shares of capital stock are issued go owners, called stockholders, as evidence of their investment of capital into the corporation. These shares are transferable from stockholder to stockholder, and each share represents part-ownership of the corporation. A corporation may be owned by a few or by many stockholders. In fact, many large corporations have thousands of stockholders. For example, in its 1996 annual report Intel Corporation indicated that its stockholders owned 821,000,000 shares of stock!
The organization and legal structure of a corporation is more complex than that of a sole proprietorship or a partnership. Although sole proprietorships are the most common type of company, corporations conduct the greatest volume of business in the United States. In 1995, sole proprietorships earned nearly 6 percent, partnerships over 5 percent, and corporations just under 90 percent of all business sales in the United States.
Exhibit 1. Types of Business Organization (Companies)
Sole Proprietorships |
Partnerships |
Corporations |
●Single owner-manager ● Small companies ●Most common type of business organization |
● Two or more owners (partners) ● Partnership agreement |
● Stockholders have separate identity from company ● Capital stock ● Greatest volume of business |
Unit 3 Accounting Profession