IV. Find the English equivalents for the following words and word combinations in the text:

денежный поток, внешняя операция, внутренняя операция, вся сумма целиком

(все количество), финансовый отчет, надеяться(полагаться) на, следовательно,

существенный (значимый), здравое решение

V. Match each key term in column a with its definition in column b:

A. B.

Financial accounting	transformed materials; the results of production.
Outputs	the provision of information and analyses to managers within the organization to assist them in decision making.
Managerial accounting	the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make better decision.
Inputs	the preparation of financial statements for people outside the firm (for example, investors).
Accounting	resources used in the production process, such as labour and raw or semifinished materials

V. Answer the questions to the text:

1. What does the study of accounting begin with?

2. In what way may the activity of an organization be presented?

3. What is business activity associated with in accounting?

4. When does a transaction occur?

5. What business activities are recognized in accounting?

6. How can transactions be classified?

7. What is financial accounting?

8. What is managerial accounting?

UNIT 4

I. Memorize the following words:

stock exchange – фондовая биржа

bond market – рынок облигаций

income tax – подоходный налог

predetermined rate of growth – заранее установленный(определенный) темп роста

ownership – собственность; владение, имущество; право собственности

overriding criterion – доминирующий ( преобладающий) критерий

judging – оценивание

profitability – рентабельность, прибыльность, доходность, выгодность

II. Study the following words and combinations. What are their Russian equivalents?

value, to be disclosed, to ensure, patterns, accomplish, primarily, proper amount, decision usefulness

III. Read the following text. How many parts does it consist of? Give the title to the text and to its parts. Define the key-sentence of each paragraph.

Accounting is shaped by the environment in which it operates. Just as nations have different histories, values, and political systems, they also have different patterns of financial accounting development. In a number of countries accounting information is directed primarily toward the needs of investors and creditors, and “decision usefulness” is the overriding criterion for judging its quality. Financial accounting in the US and Great Britain has had such an orientation for many years. Moreover, these countries have large and developed stock exchanges and bond markets. As a result, a great deal of information is disclosed in companies' financial reports; and determining profitability is an objective of financial accounting. However, in other countries, financial accounting has a different focus and performs other roles. For example, in some countries, financial accounting is designed primarily to ensure that the proper amount of income tax is collected by the national government. This is the case in most South American countries. In other countries, financial accounting is designed to help accomplish macroeconomic policies, such as achieving a predetermined rate of growth in the nation's economy. Whether income tax and economic policy information are also useful to individual investors and creditors is somewhat beside the point. In such countries as Switzerland, Germany, and Japan the environment is characterized by a few, very large banks that satisfy most of the capital needs of business. Ownership also tends to be concentrated. The information needs are satisfied in a relatively straightforward way – through personal contacts and direct visits. Not surprisingly, the financial reports tend not to contain as much information as US companies' reports. And since banks are the primary source of capital, financial accounting is oriented toward creditor protection. France and Sweden offer still another orientation of financial accounting. National government plays a strong role in managing the country's resources. Governments also actively ensure that businesses have adequate capital and will lend or even invest in companies if necessary. Financial accounting is oriented toward decision making by government planners.