What is accounting?

Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties with the information they need to make better decisions. Transactions include the buying and selling of goods and services, acquiring insurance, using supplies, and paying taxes. Transactions may be recorded by hand, or my be recorded in a computer system. The trend is to use computers because the process is repetitive and complex, and computers greatly simplify the task. Computers can handle large amounts of data more quickly and more accurately than manual systems.

After the transactions have been recorded, they are usually classified into groups that have common characteristics. For example, all purchases are grouped together, as are all sales transactions. The business is able to obtain needed information about purchases, sales and other transactions that occur over a given period of time. The methods used to record and summarize accounting data into reports are called an accounting system.

Systems that use computers enable an organization to get financial reports daily if they need. One purpose of accounting is to help managers evaluate the financial condition and the operating performance of the firm so that they may make better decisions. Another is to report financial information to people outside the firm such as owners, lenders, and government (for tax purposes).

The accounting systems

The inputs to an accounting system include sales documents and other documents. The data are recorded, classified, and summarized. They are then put into summary financial statements such as the income statement and balance sheet.

Inputs include: accounting documents, sales documents, purchasing documents, shipping documents, payroll records, bank documents, travel records, entertainment records.

Processing:

1. Entries are made into journals: recording.

2. The effects of these journal entries are transferred or posted into ledgers: classifying.

3. All accounts are summarized.

Output:

financial statements, income statements, Balance sheet, Outside reports (for example, annual reports).

Accounting Versus Bookkeeping

Bookkeeping involves the recording of economic activities. It is a mechanical process that does not demand much creativity. Bookkeeping is part of accounting, but accounting of data. Accountants classify and summarize the data. They interpret the data and report them to management. They also suggest strategies for improving the financial condition and progress of the firm. Accountants are especially valuable for income tax preparation and analysis. So accounting involves the gathering and recording of transactions and the periodic preparation of financial statements that summarize those transactions.

And now about What Bookkeepers do?

If you were a bookkeeper, the first task you would perform is to divide all of the firm's paperwork into meaningful categories. Those categories would probably include the following:

Sales documents (sales slips, cash register receipts, and invoices).

Purchasing documents.

Shipping documents.

Payroll records.

Bank documents(checks, deposit, slips).

Business trip expenses.

Entertainment records.

So you would have several piles of papers. You don't want the piles to get too unmanageable, that is why you must begin to record the data from the original transaction documents (the sales slips and so on) into record books. (Thus the term bookkeeping). These books are called journals. They are the books where accounting data are first entered.

Ex. 1. Give English equivalents to the following:

Подведение итогов; финансовые операции; запись; страхование; налоги; записи, выполняемые от руки; покупка; давать возможность; случаться; баланс; краткий финансовый отчет; отчет о прибылях; запись в платежной ведомости; главная книга; информация; отчет; налог на прибыль; сделка; счет-фактура; квитанция о регистрации; кипы документов; книга записи учет бухгалтерских операций.

Ex. 2. Give Russian equivalents to the following:

Accounting; recording; summarizing; transaction; to provide management; insurance; paying taxes; recorded by hand; repetitive and complex; large amounts of data; manual system; sales transactions; accounting system; one purpose of accounting; to report financial information to smb; sales documents; summary financial statements; income statement; balance sheet; input; processing, output, outside reports; accounting versus bookkeeping; goes far beyond the recording of recording of data; meaningful categories; purchasing documents; payroll records, business trip expenses; entertainment records; piles of papers; original transaction documents;

Ex. 3. Fill in the gaps with proper words or word combinations.

See the Text.

1. Transaction may be recorded … or may be recorded … .

2. The trend is to use computers because the process is … and … , and

computers greatly … the task.

3. System that use computers enable an organization to get … daily if they

need.

4. Another is … to people outside the firm such as owners, lenders, suppliers and the government (for tax purposes).

5. Bookkeeping … the recording of economic activities.

6. Accountants are especially … for income tax preparation and analysis.

7. You don't want the piles to get too … , that is why you must begin to … the data from the original transaction documents into record books. Thus the

term … .

Ex. 4. Fill in the gaps with the words given below:

bookkeeper, quickly, accurately, buying, transactions, data, selling,

purchases, journal, entries, inputs.

1. Transactions include the … and … of the goods and services.

2. Computers can handle large amounts of data more … and more … than

manual systems.

3. The business is able to obtain needed information about …, sales and other … that occur over a given period of time.

4. The … to an accounting system include sales documents and other

documents.

5. The effects of these … … are transferred or posted into ledgers: classifying.

6. They interpret the … and report them to management.

7. If you were a … , the first task you would perform is to divide all of the

firm's papers into meaningful categories.

Ex. 5. Translate the sentences into Russian paying attention to different

meanings of one and the same word.

1. She didn't know anything about a new record in the ledger. A new record sounded so beautiful that we couldn't but listening it again and again.

2. The entryto the park was so wide that it was quite possible to get there by car. Theentryin the ledger was so unclear that we could take needed data.

3. Somebody has broken the handleon the door of my house. Computers canhandlelarge amounts of data more quickly and more accurately than manual systems.

Ex. 6. Translate the sentences paying attention to the passive voice of the

predicate.

1. After the transaction have been recorded, they are usually classified into

groups that have common characteristics.

2. All purchases are grouped together, as are all sales transaction.

3. The data are recorded, classified and summarized.

4. They are then put into summary financial statements such as the income

statement and balance sheet.

5. These books are called journals.

6. They are the books where accounting data are first entered.

7. The methods used to record and summarize accounting data into reports are

called an accounting system.

Ex. 7. Answer the question:

1. What is Accounting?

2. How may transactions be recorded?

3. What is an accounting system?

4. What are the two purposes of accounting?

5. What do inputs to the accounting system include?

6. What do input include?

7. What are the steps of processing?

8. What does output include?

9. What is the relation between Bookkeeping and Accounting?

10.What do accountants do?

11.What do bookkeepers do?

12.What do the meaningful categories include?

Learn the vocabulary

record [ ] - 1) запись,протокол;

2) граммофонная

пластинка

recording [ ] - регистрация, запись

summarizing [ ] - подводить итог, суммировать,

резюмировать

interpreting [ ] - 1) толкование, объяснение;

2) устный перевод

3) расшифровка

financial events [ ] - финансовые операции

party [ ] - 1) партия; 2) партийный;

3) компания; 4) участники;

5) сопровождающие лица;

insurance [ ] - страхование

insurance policy - страховой полис

supply [ ] - 1) снабжение, поставка,

припасы;

2) временный заместитель;

3) снабжать, поставлять;

tax [ ] - налог, пошлина, сбор

heavy taxes - большой, обременительный

налог

trend [ ] - 1) направление, тенденция;

2) отклоняться в каком-либо

направлении

handle [ ] - 1) управлять, регулировать;

2) иметь дело (с каким-либо

товаром), торговать

accurately [ ] - точно

manual system [ ] - система записей, выполняемых

от руки

purchase [ ] - 1) покупка, закупка;

2) купленная вещь;

3) годовой доход с земли

obtain [ ] - 1) получать, добывать,

приобретать;

2) достигать, добиваться

occur [ ] - встречаться, случаться,

происходить

enable [ ] - 1) давать возможность или

право;

2) приспосабливаться

purpose [ ] - 1) цель, намерение, назначение

2) результат, успех

3) иметь целью, намереваться

evaluate [ ] - оценивать, определять

количество, выражать в числах

lender [ ] - заимодавец

inputs [ ] - 1) ввод, подвод;

2) потребление;

3) зд.- информация,

необходимая

для бухгалтерского учета

summary financial [ ] - краткий финансовый

statement отчет

income statement [ ] - отчетоприбылях

balance sheet [ ] - баланс

pay-roll record [ ] - запись в платежной ведомости

travel records [ ] - записи по командировочным

расходам

entertainment records - записипо

представительским расходам

processing [ ] - 1) обработка, переработка;

2) движение, течение

entry [ ] - занесение (в список, в торговую

книгу)

bookkeeping by double entry - 1) двойнаябухгалтерия;

2) таможенная декларация

относительно судового груза;

3) вход, дверь, ворота

ledger [ ] - 1) главная книга (бух.);

2) регистрационный журнал;

3) надгробная плита

output [ ] - 1) продукция, продукт, выпуск,

выработка;

2) производительность,

мощность;

3) зд. - отчетная информация

versus [ ] - против

involve [ ] - 1) затрагивать, вовлекать,

впутывать; 2) включать

demand [ ] - требование, запрос,

потребность

creativity [ ] - творчество

data [ ] - информация, новости

report [ ] - 1) отчет, сообщение, доклад

2) донесение, рапорт

valuable [ ] - 1) ценный, дорогой;

2) полезный;

3) поддающийся оценке

income tax - налог на прибыль

transaction [ ] - 1) дело, сделка;

2) труды, протоколы;

3) регулирование спора путем

соглашения сторон или

компромисса

financial statement [ ] - финансовыйотчет

meaningful categories - назначения,

направления, функции

slips [ ] - 1) скольжение, ускользнуть,

улизнуть;

2) ошибка, промах;

3) уменьшение числа оборотов

sales slips - ошибки по реализации

register receipt [ ] - квитанция о регистрации

invoice [ ] - счет, счет-фактура

business trip expenses - командировочные расходы

pile [ ] - кипа,куча

piles of papers [ ] - кипыдокументов

record book [ ] - книга записи учета

бухгалтерских операций

WHAT IS MARKETING?