Accounting steps

Each time an item is purchased or sold, a bookkeeper performs the first three steps of the cycle and passes on the information to the accountant who carries out the last four steps such as:

1) calculate adjustments; 2) prepare adjusted trial balance; 3) prepare financial statements; 4) close entries. The most common reasons the accountant should consider preparing adjustments are the following: increased revenue (for example, interest earned but not yet received); any government taxes or employees' salaries that have not been paid yet; the value of the office supplies that have been used (electricity, water, etc); depreciation of the assets; changes in the inventory, etc.

As to the inventory, it involves the physical measurement, counting and evaluation of items for sale. Inventory evaluation is subject to a variety of accounting methods, since many inventory items cannot be specifically calculated. The grain in a grain elevator, for example, comes from different sources and may have been bought at several prices. An accountant must choose between one of several methods for valuing the grain; each will provide a slightly different value figure. On the fifth step when the adjustments are calculated, the accountant prepares an adjusted trial balance that combines the original trial balance with the effects of the adjustments. The balances in the accounts are the data that make up the organization's financial statements such as a balance sheet and an income statement. The preparation of these statements is considered to be the main purpose of the sixth step. The final step comprises a series of bookkeeping debits and credits to transfer sums from income statement accounts into owner's equity accounts, and thus into capital. Such transfers reduce the balance of all accounts to zero, therefore the accounting books will be ready for the next accounting period.

Задание 21.

Выберите правильный вариант ответа на вопросы к тексту.

1. Who is responsible for the first three steps of the accounting cycle?

a) an independent auditor

b) a bookkeeper

c) an accountant

2. What does the final step performed by the accountant comprise?

a) closing entries

b) a series of bookkeeping debits and credits

c) preparing adjusted trial balance

3. What is implied by the "inventory" term?

a) figures in the balance sheet

b) items of goods sold last year

c) counting items for sale

Задание 22.

Закончите предложения по содержанию текста.

1. A bookkeeper passes on the information every time an item is sold or bought _____.

a) to the accountant

b) to the marketing manager

c) to the CEO (Chief Executive Officer)

2. While transferring sums from income statement accounts into owner's equity accounts, the balances of all accounts _____.

a) increase dramatically

b) are reduced to zero

c) go down slightly

3. If for example, grain is bought the accountant has to _____.

a) weigh the grain

b) mill the grain

c) combine the original trial balance with the effects of the adjustment

4. On the fifth step the accountant prepares _____.

a) an inventory to be presented to the chief manager

b) an adjusted trial balance

c) a series of bookkeeping debits and credits

5. The balances in the account are the data _____.

a) of a balance sheet

b) of an income statement

c) of two financial documents

Задание 23.

Подберите эквивалент к данному русскому слову или словосочетанию.

1. учет прибыли и убытков

a) audited statement b) financial statement c) income statement

2. процентный доход

a) interest revenue b) budget revenu e c) casual revenue

3. обесценивание

a) depreciation b) definition c) department

4. свести отчетность

a) prepare adjustments b) to make a balance sheet c) close entries

5. предварительный баланс

a) balance sheet b) trial balance c) cash balance

6. обеспечение офиса

a) office supplies b) assured supplies c) official supplies

7. личный счет акционера

a) deposit account b) equity account c) current account

Задание 24.

Выберите русское предложение, наиболее точно передающее содержание предъявленного.

1. The most common reasons for the accountant to be considered while preparing the adjustments are the following: increased revenue, depreciation of the assets, etc.

а) Причины, по которым оценивается работа компании, следующие: увеличение штатов, снижение налогов,

b) Бухгалтер рассчитывает будущий доход по прибылям, учитывая все активы компании.

с) Когда бухгалтер вносит поправки, он должен учитывать наиболее общие факторы, такие как возросшие доходы, амортизация имущества и т.д.

2. The preparation of these statements is considered to be the main purpose of the sixth step.

а) Подготовка этих утверждений берется за основу шестого шага.

b) Главной целью шестой стадии данной операции считается подготовка этих финансовых документов.

с) Шестым шагом этой операции является подготовка этих квитанций.

3. Inventory evaluation is subject to a variety of accounting methods.

a) Товарно-материальные ценности подвергаются предметному многообразию бухгалтерских методов.

b) Товары оцениваются различными бухгалтерскими методами.

с) При оценке товарно-материальных ценностей используют.

Задание 25.

Выберите английское предложение, наиболее точно передающее содержание предъявленного.

1. A bookkeeper passes on the information to the accountant.

a) A bookkeeper and the accountant exchange the information on wages.

b) A bookkeeper provides the accountant with all the data obtained.

c) A bookkeeper checks all the information for the accountant.

2. When the adjustments are calculated, the accountant prepares the C adjusted trial balance that combines the original trial balance with the effects of the adjustments.

a) With nil the adjustments done, an accountant prepares corrected trial balance.

b) The accountant prepares all the information received to report to the top.

c) A junior bookkeeper submits the original trial balance with all the adjustments calculated to the Board of Directors.

3. The balances in the accounts are the data that make up the organization's financial statements such as a balance sheet and an income statement.

a) The account balances are the reports that present the company's financial statements as a balance sheet and a bank statement.

b) The balances in the accounts are the totals of money coming into and going out of the accounts and recorded in the financial statements.

c) The original balances are the reports that include the calculation of total assets and the evaluation of the inventory.