- •3.1 Lead-in
- •3.2 Language input
- •3.2.1 Consult a dictionary and practice the pronunciation of the following words and word combinations, quote the sentences in which they are used in the text or submit the examples of your own:
- •3.2.2 Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column:
- •Environment of Accounting
- •3.4 Comprehension Understanding the reading
- •3.4.1 Give extensive answers to the questions. Use the following expressions to present your answers:
- •Scanning
- •3.4.2 Scan the text to determine whether these statements are true (t) or false (f), and if they are false say why:
- •3.4.3 Scan the text and find the information to complete the following lists:
- •3.4.4 Scan the text and find the English equivalents for the following:
- •3.4.5 Develop the following ideas. Make use of the active vocabulary, given in brackets:
- •3.5 Practice
- •Word Building
- •Complete the table with words from the text and related forms. Put a stress mark in front of the stressed syllable.
- •3.5.2 A. Read the text, ignoring the missing parts. Accounting Assumptions and Principles
- •Financial Statements
- •3.5.3 A. Fill in the gaps with the suitable expressions from the box:
- •5.5.4 A. Read the text, give the English equivalents for the words in brackets, and single out the main items of the income statement.
- •Income Statement
- •In eur thousand
- •3.5.5 A. Read the text and single out the main items of the balance sheet.
- •Illustration 5.2.
- •July 31, 200x
- •I. Consider the other parts of the consolidated balance sheet given below. Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column.
- •A. Read the text and supply the prepositions where necessary.
- •Illustration 5. 3.
- •3.5.7 Say it in English:
- •5.5.8 A. What do the following abbreviations stand for?
- •3.6 Dialogue 1
- •Jobs in Accounting
- •Supporting Materials
- •Read and translate the following dialogue: Tax Accounting
- •Supporting Materials
- •A Brief Summary of the Activities of the Office of the Auditor General in Norway
- •3.7. Case study& role play Case
- •Discussion questions:
- •Exhibit 1 Sales of the Microcomtec 100
- •Exhibit 2 Microcomtec’s Balance Sheet as of December 2000
- •Discussion questions:
- •Interoffice Memorandum
- •Making a Decision
- •3.8 Grammar back up The Infinitive, Past Participle and the “-ing” form (Revision)
- •Infinitive or the ing-form
- •Infinitive or the ing-form
- •Topics for the Power Point presentations
Making a Decision
In coming to a decision about this case, consider the following points:
Stanley’s recommendations
Dixon’s original marketing strategy
The significance of the European office
The poor financial position of Microcomtec
Dixon’s revised strategy
The risks involved in radically changing the nature of the company
What other factors should be discussed?
Your decision.
3.8 Grammar back up The Infinitive, Past Participle and the “-ing” form (Revision)
PRACTICE
Familiarize yourself with the text and comment upon the use of the Infinitive, Past Participle or the “-ing” form in bold type.
Translate the text into Russian.
Every year the accounts of a limited company must be approved by auditors. They act on behalf of the shareholders. Their duty is to ensure that the directors are reporting correctly on the state of affairs of the company. They do not judge whether the directors are managing the company efficiently or not. That is something the shareholders must judge for themselves.
Until recently, the accounts of Harper & Grant have been audited by Hector Grant’s son-in-law, who is in private practice as an accountant. A new firm of auditors has now been appointed. A privately owned limited company is now no longer exempt from having to publish its accounts. It was therefore considered necessary to have the accounts audited by independent auditors in no way connected with Harper & Grant.
William Buckhurst, as Company Secretary, is responsible for seeing that the books and records for the period in question are ready for checking. It could make a bad impression if the accounts department was not able to supply immediately any information wanted by the auditors.
What precisely do the auditors check? They have to be satisfied that everything which goes into making up the Profit Statement, the Balance Sheet and the Directors’ Report is correct. The Profit Statement (sometimes called a Trading and Profit and Loss Account) shows how the profit for the year is arrived at. It starts with net sales or income, and deducts surplus, from which charges, such as depreciation on plant and buildings, auditors’ fees, and administration and selling costs must be deducted to produce the net profit (or loss).
The Balance Sheet is a summarised statement showing the amount of funds envolved in the business and the sources from which these funds are derived. On one side is listed the capital employed, which usually consists of the issued share capital plus reserves and retained earnings. The share capital of Harper & Grant consisted of five thousand £1 shares. With a total market value of five hundred thousand pounds. In other words, there are four hundred and ninety-five thousand pounds in reserves and retained earnings. This starts with the total cost of its fixed assets (land, buildings and machinery) and any trade investments (interests in other companies), followed by a breakdown of net current assets (that is, cash and stocks, plus what the firm is owed by its customers, less its liabilities, or what it owes to others). The Wentworth Mattress Company owns shares in Harper & Grant, so this would be shown as a trade investment in Wentworth’s Balance Sheet. The totals on the two sides of the Balance Sheet must agree; that is, come to the same figure. The total dividend to be paid for the year is a current liability, and is therefore an item in the compilation of net current assets.
One of the most difficult jobs in preparing accounts is stock valuation: that is, putting a value on all goods in the hands of the company. It may seem easy, as goods could be counted, and then the price paid for them could be checked against the suppliers’ invoices. But the value of commodities often fluctuates. Furthermore, much of a company’s stock will consist of work in progress or finished stock, and the volume of all stock is changing daily, if not hourly. The rule for stock valuation is that it should be taken at cost price or market price, whichever is the lower.
Exercise 3.8.1
Open the brackets, putting the verbs in the correct forms.
You can find out this bank’s phone number by (look) in the directory.
Last year our company attempted (take over) its nearest competitor.
The growth in multinational corporations (to manufacture and trade) on a worldwide basis has led to the growth in the overseas operations of major banks over the last twenty years.
As is known, a bank’s size is a significant factor in (determine) how banks are organized.
One of the most important functions of a central bank is to accept responsibility for (advise) the government.
(Earn) profits cannot be the responsibility of business, because its main exercise is to create organizations with a real commitment to the community.
The Anti-Monopoly Minister was accused of (to be inefficient) because he discourages original ideas and postpones decision-making.
(Increase) its range of services to private individuals, our bank (install) and is continuing to develop its own electronic transaction card system.
(Hope) to restore investor confidence, the US administration has adopted a law (tighten) regulation of companies’ financial reporting.
Deposits, payments and credits are the basis of the services (to offer) by banks.
The services make it possible for banks to generate profits and achieve their (to operate) aims.
The necessary information is (to provide) by the profit and loss account for the period in question.
A bank's (to account) systems are (to design) to record and present the many transactions that take place every day.
A bank should have (to retain) profits in the business for future operations.