Questions to the text:

1. Who is interested in accounting information?

2. What are the main differences between financial and managerial accounting?

3. What financial statements are included in an annual report and when are they published?

4. What information can stockholders get from the balance sheet?

5. Why is it important to prepare the statement of a company’s cash flows?

6. What kind of information is represented in the income statement?

7. How can revenues and expenses be defined?

8. What statement shows the amount of a stockholder’s dividends?

9. Why is it necessary to prepare additional reports?

10. What statement contains debit and credit columns?

Подумайте и скажите:

1. In what financial figures and statements the following groups of people are more interested: a) stockholders, b) managers, c) creditors, d) the company’s employees, e) competitors, f) fiscal officials?

2. Why is it necessary to develop similar accounting systems in different countries?

Vocabulary and grammar exercises to the text

“ACCOUNTING INFORMATION”

Exercise I. Переведите предложения, обращая внимание на союзы, вводящие условные предложения.

1. If too much money is available, its value will decrease and it will result in inflation.

2. Unless the company earned a reasonable profit, the share price would fall and it would be difficult to attract additional capital.

3. The company would have achieved a higher sales level, provided the retail price had been decreased.

4. If the output decreased, the company’s cost per unit of the goods produced would go up.

5. Provided the managers had considered all aspects of business activity thoroughly, the company would have earned more revenue.

6. If current liabilities exceed the company’s assets, the company will be forced to sell off its assets for the debts.

7. The company would not have replaced the obsolete equipment unless it had issued new stocks.

8. If the wage paid in a certain industry rises, workers will be attracted from other industries.

Exercise II. Раскройте скобки и употребите глаголы в соответствующей форме.

1. Equity would decrease if the owners (to withdraw) funds from the business.

2. If there (to be) a change in the amount for one item in a balance sheet, it will be always accompanied by an equal change in some other item.

3. If cash is received from the issuance of bonds, this figure (not to be shown) in the income statement.

4. The same amount of depreciation would be evaluated each year if the accountant (to choose) the straight-line method.

5. If the company (to choose) proper ways to use its assets for producing goods and rendering services, it would have earned enough revenue to stay in business.

6. If a customer received commodities or promised to pay the company in the future, the revenue (to be recorded) in accounts receivable.

7. If cash (to be paid) to purchase equipment, this figure will be added to the asset account of a plant.

8. If the company (to introduce) a new product, it would have increased the company’s future cash flows.

Exercise III. Переведите следующие предложения на русский язык, обращая внимание на функции глаголов “to be” и “to have”.

1. A standard set of financial statements is to be prepared annually at the end of the fiscal year.

2. The main purpose of cost accounting (производственный учёт, бухгалтерия издержек) is to analyze the cost of producing goods and other expenses and to advise managers on how to increase profitability.

3. The sales department has discussed the problem of fast transportation of the perishable (скоропортящийся) goods to the customers.

4. Retained earnings are to be the essential part of the company’s total capital.

5. The stockholders’ dividends are determined by the net profit of the company.

6. In the course of revision the company’s accountant has to ensure access to all financial statements required by the fiscal department.

7. As the company had obtained high income by the end of the year, it was not necessary to borrow a long-term loan from a bank.

8. The main task of financial accounting is to inform stockholders about the company’s activity over the previous year.

9. Additional explanations about the most important transactions have to accompany the financial statements.

Exercise IV. Переведите следующие предложения на русский язык, обращая внимание на модальные глаголы.

1. The value of one commodity is to be compared with that of another in terms of money.

2. A bank ought to act as an intermediary between depositors who should make interest on their savings and borrowers who should to obtain capital.

3. The tax system can be easy enough to administer.

4. Individuals must pay income tax on earnings from labour, rents, dividends and interest.

5. In the absence of some form of money, exchange has to take the form of barter.

6. Taking into account the high rate of inflation the government may increase salaries of jobholders (государственный служащий) by 2010.

7. In the late 1980s, many industries in European countries had to increase investments in informational technologies for future production.

8. Calculating company assets an accountant had to remember that non-renewable goods should be used up in one production cycle.

9. In the modern world where so much business is conducted on the basis of credit, sellers have to accept the system of deferred payment.

Exercise V. a) Найдите в тексте синонимы к следующим словам и группам слов:

Concerning the future, conclusions about the price, an external part, a use of capital, succeeding, a fixed interval, wide, a number of, a means of supply, a yearly report, a fulfillment of an action, the month before this one.

б) Объедините следующие слова в синонимичные пары:

to distribute, to deal in, to accept, to spread, to agree, to borrow, to trade, to disclose, to handle, to summarize, to be interested in, to offer, to withdraw, to be concerned with, to evaluate, to make known, to give the main points of smth, to get a loan, to render, to take back, to generate, to determine, to deal with, to produce.

Exercise VI. Переведите предложения, обращая внимание на значение слова “provided”.

1. If planned investment is greater than planned saving, it will help the economy to expand, provided the economy is in a state (зд. соcтояние) jf less than full employment.

2. People should be provided with certain goods and services by the government when they are not available through the private sector.

3. The finances provided by taxation are usually spent on education, medical services, transportation network development, etc.

4. Preparing the trial balance at the end of the year the bookkeeper would make the necessary adjustments, provided there were changes in tax rates.

5. Being provided with all modern shopping facilities, the department store is able to serve more than 1,000 customers a day.

6. Provided this computer programmee for bookkeeping had been more convenient, it would have been adopted.

Exercise VII. Существительные costs, expenditures, expenses часто переводятся на русский язык как синонимы – затраты, издержки, расходы. Например: additional costs/expenses/expenditures – дополнительные расходы; advertising costs/expenditures/expenses - расходы на рекламу. Однако следует различать значения этих терминов в экономических текстах. Существительное costs обычно означает денежные расходы на производство определенных товаров или услуг; expenditures – сумма, израсходованная для оплаты товаров и услуг; expenses – сумма, израсходованная на оплату товаров или услуг, которая более не является активом покупающей компании.

1. Подберите определения по-английски к словам: expenditures, expenses, costs.

2. the amount of money spent on running a business or part of it;

3. an amount of money spent

4. sums of money spent by a company on goods and services that do not become part of a company’s assets such as rent, wages, insurance, etc.

б) Подберите для русских словосочетаний их английские эквиваленты.

предельные издержки альтернативные издержки бюджетные расходы капиталовложения/инвестиции денежные расходы потребительские расходы полные/общие/совокупные расходы годовые расходы предусмотренные издержки средние расходы банковские расходы расходы по финансированию финансовые расходы переменные издержки управленческие расходы расходы по организации сбыта расходы на душу населения предварительные расходы расходы по хранению постоянные издержки сравнительные издержки издержки на моральный износ накладные расходы издержки нематериального характера

budget expenditures cash expenses comparative costs total expenditures/costs opportunity costs average expenses/costs marginal costs annual expenses/costs banking expenses financing expenses/costs anticipated expenses obsolescence costs financial expenses/costs intangible costs consumption expenses/costs marketing expenses/costs decreasing costs preliminary expenses per capita expenses storage expenses/costs capital/investment expenditures overhead expenses/costs anticipated costs fixed expenses/costs

в) Замените выделенные курсивом русские слова в скобках их английскими эквивалентами.

1. The company has earned enough to cover its (годовые издержки).

2. A great amount of (капиталовложений) will be required before any profit is earned.

3. Technological innovations are sure to require higher (расходов/затрат)

4. (Расходы) of $10,000 on new computer equipment have been planned by the accountant.

5. The producer had to increase the price in line with increasing (издержки производства)

6. (Текущие расходы) are known to include (издержки) on running a business, for example rent, salaries, heat, light, etc.

7. (Накладные расходы) are usually grouped into ( постоянные издержки) and

8. (переменные издержки), rent belonging to the former type.

9. The company’s bookkeeper evaluated (альтернативные издержки) at $5,000.

10. The (плановые расходы) are likely to be exceeded due to (непредвиденных затрат) on building a new storage (хранилище).

11. (Постоянные/Фиксированные издержки) do not vary according to the changes in production.

Exercise VIII. Составьте предложения из двух подходящих по смыслу частей.

A balance sheet represents The statement of cash flows provides the information The income statement summarizes the data The statement of retained earnings discloses the information concerning Financial accounting includes the information Managerial accounting deals with

about a company’s revenues, expenses, gains and losses. relating to the profitability of the company and its financial position the main accounting equation planning, control, budgeting and pricing decisions stockholders’ equity and dividends about the changes in the financial structure of the company.

Exercise VIII. Переведите на русский язык следующие предложения, обращая внимание на пройденные грамматические конструкции и на слова и словосочетания из словарного минимума к тексту “Accounting Information”.

1. Accounting provides information for different purposes through the maintenance of files of data, analysis and interpretation of these data and the preparation of various kinds of reports.

2. The reports to be prepared for investors are called financial statements, their preparation being the task of financial accounting.

3. It is necessary that a balance sheet should disclose the resources that are under a company’s control on a specified data and indicate where revenues have come from.

4. Being shown in the income statement for a particular time period, net income is the accountant’s term for the amount of profit.

5. The company’s success is measured by the amount of profit it earns, that is, the growth or decrease in its stock of assets from all sources except contributions or funds withdrawn by owners and creditors.

6. The purpose of the statement of cash flows is to explain management’s use of the financial resources available to it and to help in evaluating the company’s liquidity and its ability to pay its bill.

7. While net income increases retained earnings, net operating loss or the distribution of cash dividends reduces it.

8. To enable users to interpret statements with confidence, companies in similar industries should use the same measurement concepts and principles.

9. Most accounting data and reports are likely to be generated mainly for the company managers.

10. Preparation of data and reports either summarizing past events or disclosing forecasts of the future is expected to be the task of managerial accounting.