Vocabulary:

to lend (lent; lent) – надавати в кредит

temporarily – тимчасово

worthwhile – вартий

creditworthiness – кредитоспроможність

recipient – одержувач(ка)

collateral – застава, забезпечення

(un)secured loan – (не)забезпечена позика

accounts receivable (A/cs.Rec.; a/c rec) – дебіторська (поточна) заборгованість

line of credit – короткостроковий кредит

available – наявний

revolving credit agreement – обертова кредитна угода

fee – оплата

legal device – кредитний договір, законний засіб mortgagee – заставоутримувач, кредитор із застави

mortgagor – заставник, боржник за заставною

to pledge – обтяжувати заставою (якесь майно) to foreclose – відчужувати заставлену нерухомість, втрачати право викупу заставленого майна

to disburse – сплачувати, використовувати кредит

Questions:

1. What is a loan? What purposes do banks make loans for?

2. How are loans classified?

3. Give the classification of long- and short-term business loans. What is the difference between them?

4. What are the peculiarities of a mortgage?

5. What are the conditions of getting a loan?

Accounting, its parts and systems

Today's finance divisions focus their attention on the ultimate needs of decision makers who use accounting information, whether those decision makers are inside or outside the business.

So, accounting is an information system that measures, records, identifies, summarizes and communicates financial information about an organization or other entity in order to help management to make correct informed decisions. An economic entity is a unit that exists in­dependently - for example, a business, a hospital, or a governmental body. Bookkeeping is the process of recording financial transactions and keeping financial records. Mechanical and repetitive, bookkeeping is only a small, but important, part of accounting. Accounting, on the other hand, includes the design of an information system that meets the users' needs. The major goals of accounting are the analysis, interpretation, and use of information. Accountants were among the earliest and most enthusiastic users of computers, elec­tronic tools that are used to collect, organize, and communicate vast amounts of information with great speed.

Personal record keeping often uses a simple single-entry system in which amounts are recorded in column form. Such entries include the date of the transaction, its nature, and the amount of money in­volved. Record keeping of organizations, however, is based on a dou­ble-entry system, where each transaction is recorded on the basis of its dual impact. That means that every economic event has two aspects (effort and reward, sacrifice and benefit, source and use) that balance each other. In the double-entry system, each transaction must be re­corded with at least one debit and one credit, so that the total money amount of debits and the total money amount of credits equal each other. The whole system is always in balance. All accounting systems, no matter how sophisticated, are based on the principle of duality.

Information relating to the financial position of an enterprise is presented in a balance sheet, while operating results are displayed in an income statement. Data relating to an organization's liquidity and changes in its financial structure are shown in a statement of changes in financial position. 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.