III. Vocabulary practice exercises

1. Choose the necessary word or word-combination and put it in a sentence:

financial accounting cost accountant tax accountant auditing software programs

budget controller journals financial transactions accountants ledger

management accounting CPAs forensic accounting trial balance GAAP (generally accepted accounting principles)

1. Millions of men and women throughout the world work in the field of accounting. In the United States alone, there are around 1 million ---------, more than half of which are women.

2. Accounting deals with --------- between a firm and its employees, customers, suppliers, owners, bankers, and various government agencies.

3. ---------- is concerned with preparing financial information for outsiders like stockholders, creditors, and the government.

4. Bookkeepers record every purchase or sale a business makes in the order that they take place, in ---------.

5. The --------- shows all the expenditures and all the earnings of the company.

6. ---------- have the right to express, officially, an objective opinion on the accuracy of a client’s financial statements.

7. Bookkeepers periodically do a ---------- to test whether both sides of an accountant book match.

8. ---------- is concerned with preparing information for internal use.

9. Public accountants provide ---------- - a formal evaluation of the fairness and reliability of financial statements.

10. Corporate fraud costs are estimated at $600 billion annually, that’s why ---------- is a growing area for public accountants.

11. To provide reliable, consistent, and objective information to decision makers, accountants follow basic standards, known as ----------.

12. When most people hear the word ----------, they usually think unpleasant thoughts because working out a ---------- forces you to determine how much money will be coming in and how much will be going out.

13. Management accountants specialize in different aspects of accounting. A ----------, for example, determines the cost of goods and services and helps to set their prices. A ---------- prepares tax returns and works to minimize a firm’s tax bill.

14. The highest-ranking accountant in a company is called ----------.

15. For hundreds of years, accountants have maintained financial records manually. Computers and ---------- have simplified the accounting process.

2. Match the terms on the left with their definitions on the right.

1. creditor	a. a book or computer file with separate sections for each account
2. debtor	b. professionals who provide accounting services to other businesses and individuals for a fee
3. fee	c. the process of transferring the accounting information from a journal into a ledger
4. salary	d. the chief accounting officer of an organization
5. entry	e. an inspection and evaluation of financial records by independent accountants
6. journal	f. person or institution that lends money to someone else
7. ledger	g. person or company that has borrowed money
8. posting	h. in-house accountants employed by organizations and businesses
9. cash flow	i. a sum of money paid for professional services to a doctor, lawyer, public accountant, etc.
10. creditworthiness	j. the credit standing of a person or a company; also called rating
11. public accountants	k. the money paid for a month’s professional work
12. private accountants	l. the movement of money through an organization over a daily, weekly, monthly, or yearly basis
13. controller	m. the act or result of recording transactions in a journal
14. audit	n. a time-ordered chronological list of account transactions

3. Find the English equivalents for the Russian words and word-combinations

given in brackets.