IX. Read the text about the origin of the ledger. Answer the following questions: - What did you learn about the main book of accounts and its origin?

- Why is it called “the ledger”?

The ledger – the main book of accounts

All records in accounting are kept in a book called a ledger. They say it takes its name from a Saxon word meaning “the one that lies” on a merchant’s counter. The word means “lies down”, it has nothing to do with telling lies. The shelf on which it lay became known as the ledge. In the earliest days of accounting the ledger lay on the ledge, usually under a window where the light was good. Clerks would record all the transactions in date order. Each page in the ledger was called an account. Each account had at the top the name of the person, or goods, or any other thing which was being accounted for. Many years have passed since those days. Businesses have become much larger today. It is not convenient to keep the ledger as a bound book. Instead computer records, card indexes and loose-leaf books are being used. But still the main book of accounts is called the ledger and must be posted daily with all the transactions that take place.

Unit 3 financial accounting

I. Read the following terms. Try to memorize them and use in your speech.

GLOSSARY

1.	management accounting	управлінський облік
2.	financial accounting	фінансовий облік
3.	decision-making	прийняття рішень
4.	to process information	обробляти інформацію
5.	to communicate information	повідомляти інформацію
6.	accounting information	облікова інформація
7.	to use internally	використовувати внутрішньо
8.	outside user	зовнішній користувач
9.	annually / biannually	щорічно / двічі на рік
10.	competitiveness	конкурентоздатність
11.	to misinterpret	невірно тлумачити
12.	to evaluate the financial health	оцінювати фінансовий стан
13.	guideline	керівний принцип, норма
14.	GAAP (generally accepted accounting principles)	Загальноприйняті принципи бухгалтерського обліку
15.	IAS (International Accounting Standards)	Міжнародні стандарти бухгалтерського обліку
16.	convention	правило
17.	to encompass	охоплювати, включати в себе
18.	to unify accounting policy	уніфікувати облікову політику
19.	to review	переглядати
20.	as to = with reference to	що стосується