Introduction to accounting

Since people have owned properly they have devised methods of keeping a record of what they possessed and its value. They wished to keep an account of what they had and, when responsible for other people’s property, they needed to render an account of how they had used it. Traditionally the accounting profession has been divided into financial accountants, whose professional association is the Institute of Chartered Accountants, and management accountants, who are members of the Institute of Cost and Management Accountants.

Financial accountants are primarily concerned with making sure that the accounts of a business are a true and fair record of the financial transactions of the business. They may do this by drawing up the accounts of a business from the records kept by the various departments or, acting on behalf of another business, they may examine existing accounts and declare them to be a true and fair record. This process is known as auditing.

Management accountants are more interested in the information they can derive from financial accounts.

2. Comprehension check.

Working in pairs, answer the questions.

a) What is of vital importance for people if they own property and run a business?

b) What is a traditional division in the accounting profession?

c) Which of two professional associations mentioned in the text relates to financial accountants and which to management accountants?

d) In what way do the responsibilities of a financial accountant differ from a management accountant?

Role – play

Work in pairs.

Student A You are a staff manager in a food processing company who selects both a financial accountant and a management accountant. You are expected to explain applicants their duties and choose the right person for these posts.

Student B – is an applicant for the post of a financial accountant.

Student C – is an applicant for the vacancy of a management accountant.

You have just graduated from the University and are eager to get experience in accounting and well – paid job. Persuade the staff manager that you are the best applicant for this post. Have a talk with a staff manager of a company.

Vocabulary

1. Match up each of the following words and word combinations and word groups to its Ukrainian equivalent. Use your dictionary if necessary.

a) fixed assets b) current assets c) to intend d) to turn into cash e) loss of value f) liquid assets g) to reflect h) leasehold land i) lessor	j) lessee k) freehold property e) marginally m) vehicles n) to rank o) goodwill p) trademark q) to enjoy r) to deny	s) to secure t) letters patent u) to invent v) to license w) copyright x) originator y) prepayment z) to grant a credit
а) передплата б) той, хто дає щось в оренду в) надавати кредит г) надавати ліцензію д) користування землею на правах оренди е) автотранспортні засоби є) авторське право ж) перевести, перетворити у готівку з) поточні активи, оборотні засоби	и) мати намір, призначати (ся) і) гарантувати, забезпечити ї) користуватися правами й) відображати к) гранично л) основний капітал, основні засоби м) патентна грамота н) орендар о) повна земельна власність п) втрата вартості	р) товарний знак с) винаходити т) ліквідні активи, оборотний капітал у) класифікувати, розподіляти ф) умовна вартість репутації і ділових зв’язків х) автор, творець ц) заперечувати, відмовлятися

Pre-reading task

Work in small groups.

Answer the following questions:

1. Do you know the meaning of the word “liquid”? Why cash is the most liquid of assets?

2. What is the distinction between current and fixed assets?

3. Express your thoughts on what liabilities are.

Preface each answer with one of the following according to what is true for you:

I think, I know… I am sure that…

I am not quite sure that (but)… I don’t know whether…

Reading

1. Read text 8. How much of the information did your group already know?

TEXT 8

Дата добавления: 2015-11-14