IV. Find the English equivalents for:

обязательство (ответственность), доход, активы, расходы (издержки), собственный акционерный капитал компании

(assets, liabilities, owner’s equity, revenues, expenses)

V. Answer the questions to the text:

1. What is an account?

2. When is an account set up?

3. What does the number of accounts depend on?

4. What must every account format provide for?

5. What is debit?

6. What is credit?

Unit 10

I. Memorize the following words:

cash – наличные деньги

at face value - по номиналу, по нарицательной стоимости

notes receivable – векселя к получению

promissory note - простой вексель, долговое обязательство

written pledge – письменное обязательство

accounts receivable – дебиторская задолженность

prepaid expenses – заранее оплаченные расходы, авансовые расходы

ledger – бухгалтерская книга, содержащая информацию о финансовых операциях

компании

fixtures – инвентарь, принадлежности

note payable – векселя к оплате

accounts payable – кредиторская задолженность

II. Translate the following words and word combinations:

Assets, economic benefit, accounting entity, a cash register, in advance, a warehouse

III. Read and translate the text. While reading make your own list of business

terms:

Types of account Part 1

Assets. Assets are rights to use resources that are expected to result in future economic benefit for the accounting entity.

Cash. The Cash account shows the cash effects of a business' transactions. Cash means money and any medium of exchange that a bank accepts at face value. Cash includes currency, coins, money orders, certificates of deposit, and checks. The Cash account includes these items whether they are kept on hand, in a safe, in a cash register, or in a bank.

Notes Receivable. A business may sell its goods or services in exchange for a promissory note, which is a written pledge that the customer will pay the business a fixed amount of money by a certain date. The Notes Receivable account is a record of the promissory notes that the business expects to collect in cash.

Accounts Receivable. A business may sell its goods or services in exchange for an oral or implied promise for future cash receipt. Such sales are made on credit (on account). The Accounts Receivable account includes these amounts.

Prepaid Expenses. A business often pays certain expenses in advance. Pre-paid Expenses are assets because they will be of future benefit to the business. The ledger holds a separate asset account for each prepaid item. Prepaid Rent and Prepaid Insurance are prepaid expenses that occur often in business. Office Supplies are also accounted for as prepaid expenses.

Land. The Land account is a record of the land that a business owns.

Building. Business' buildings — office, warehouse, garage, and the like—- appear in the Building account.

Equipment, Furniture and Fixtures. A business has a separate asset account for each type of equipment—Office Equipment and Store Equipment, for example. The Furniture and Fixtures account shows the cost of this asset.

Liabilities. Recall that a liability is a debt. A business generally has fewer liability accounts than asset accounts because a business' liabilities can be summarized under relatively few categories.

Notes Payable. This account is the opposite of the Notes Receivable account. Notes Payable records the amounts that the business must pay because it signed a promissory note to purchase goods or services.

Accounts Payable. This account is the opposite of the Accounts Receivable account. The oral or implied promise to pay off debts arising from credit purchases of goods appears in the Accounts Payable account. Such a purchase is said to be made on account. Other liability categories and accounts are added as needed. Taxes Payable, Wages Payable, and Salary Payable are accounts that appear in many ledgers.