Grammar in Use

Numerals

6. There are numbers in the balance sheet sample. Say them in English.

7. Write down the following sums of money.

1. €75

2. £103

3. 67¢

4. $2045

5. 5672 RUB

6. $2,345.523

7. £3,879

8. €5,348

8. Translate into English.

Examples:

6% - six per cent

2.30 $ - two dollars thirty cents

0.35% - nought point three five per cent

1/3 – a (one) third

а) 5 процентов; 3.45 фунта; 6783 доллара; ½ фунта; 0.45 процента; 5.467.342 евро; 31 декабря 20… года.

b) 1.Статья «Рыночные ценные бумаги» составляет 60.000 долларов.

2. Мы купили товар на сумму 4.567 фунтов.

3. Аудиторская проверка ожидается 24 ноября 20… года.

4. Прибыль в этом году увеличилась на 6%.

5. 1/3 часть персонала нашей компании – молодые люди до 30 лет.

6. Он истратил половину своих денег на книги.

7. Средняя зарплата сотрудников нашей компании составляет 1.560 евро.

8. Этот банк был основан 25 сентября 1996 года.

Speaking Task

9. Work in pairs. Discuss with your partner the functions of an accounting department. Would you like to work there? Is it difficult to prepare a balance sheet? Why?

Writing

10. Study the balance sheet sample of any Russian company and translate the main items of it.

UNIT III

The accounting methods

Reading

The double entry bookkeeping method is the most widely used bookkeeping method. It is a standard accounting method that involves each transaction being recorded in at least two accounts, resulting in a debit to one or more accounts and a credit to one or more accounts. Double entry accounting provides a method for quickly checking accuracy because the sum of all accounts with debit balances should equal the sum of all credit balance accounts.

The best accounting software for business uses double entry accounting; without that feature an accountant will have difficulty preparing year end and tax records.

In the double-entry accounting method every journal entry transaction is recorded in the journal once, but affects two different accounts (using a Chart of Accounts):

- The first entry shows a change on the assets side - the debit entry.

- The second entry shows a change on the equities side - the credit entry.

The double-entry method can be very confusing at first but when entries are properly recorded the account books will balance because the total of all credit entries will be equal to the total of debit entries.

The double-entry accounting method is used by most businesses throughout the world. However, some businesses that have strictly cash transactions may use the single entry bookkeeping method instead.

Accounting methods refer to the basic rules and guidelines under which businesses keep their financial records and prepare their financial reports. There are two main accounting methods used for record-keeping: the cash basis and the accrual basis.

Accounting records prepared using the cash basis recognize income and expenses according to real-time cash flow. Income is recorded upon receipt of funds, rather than based upon when it is actually earned, and expenses are recorded as they are paid, rather than as they are actually incurred.

In contrast, the accrual basis makes a greater effort to recognize income and expenses in the period to which they apply, regardless of whether or not money has changed hands. Under this system, revenue is recorded when it is earned, rather than when payment is received, and expenses recorded when they are incurred, rather than when payment is made. So it is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition.