3. Give equivalents for the following words and word combinations:

Accurate accounting information, timely accounting information, lenders, government agencies, financial statement, balance sheet, income statement, specific time period, basic product, record making part, financial data, non-routing transaction, soundness of investment.

4. Answer the questions:

1. Who relies on financial statements?

2. What do financial statements contain?

3. What is accounting?

4. What is bookkeeping?

5. Who are the users of accounting information?

6. What are two basic documents of accounting process?

7. What information does accounting system provide?

8. How can accounting information be compiled?

9. In what does accounting information help?

5. Complete the following sentences:

1. Managers rely on __________ .

2. These two reports are _________ .

3. The balance sheet and income statement represent __________ .

4. Accounting is a process ________ .

5. Bookkeeping is __________ .

6. To keep books is __________ .

7. The users of accounting information are _________ .

8. Accounting information helps _________ .

9. Stockholders and potential investors need_______.

UNIT 3

1. Memorize the following words and word combinations:

arithmetical techniques - арифметические действия,

арифметичні дії

human aspect - человеческий фактор, людський фактор

estimate - оценка, оцінка

report - отчет. звіт

to be concerned - иметь отношение, мати стосунок

provision - предоставление, обеспечение,

забезпечення

to be involved - быть вовлеченным, бути залученим

relevant - относящийся, доречний

appropriate - соответствующий, відповідний

subsidiary - второстепенный, другорядний

2. Read and translate the text: foundations of accounting

Accounting contains elements both of science and art. The important thing is that it is not merely a collection of arithmetical techniques but a set of complex processes depending on and prepared for people. The human aspect, which many people, especially accountants, forget, arises because:

1. Most accounting reports of any significance depend, to a greater or lesser extent, on people’s opinions and estimates.

2. Accounting reports are prepared in order to help people make decisions.

3. Accounting reports are based on activities which have been carried out by people.

But what specifically is accounting? It is very difficult to find a definition that is all-inclusive.

Accounting provides information in financial terms that helps make decisions.

Accounting is needed in any society.

An accountant is concerned with the provision and interpretation of financial information. He does not, as an accountant, make decisions. Many accountants do of course get directly involved in decision-making but when they do they are performing a different function.

Accounting is also concerned with reporting on the effects of past decisions. But one should consider whether this is done for its own sake or whether it is done in order to provide information which will prove helpful in current and future decisions. We think that knowledge of the past is relevant only if we can use it in making current and future decisions, for we can hope that we shall be able to influence the future by making appropriate decisions but we cannot redo the past. Thus the measurement of past results is a subsidiary role. But ‘backward looking’ accounting sometimes appears to be an end in itself.