Vocabulary Focus

Ex. 1. Study the difference between the following synonyms. Then use them in the sentences that follow.

Evaluate. If you evaluate something you decide on its significance, value, or quality after carefully studying its good and bad features.

Estimate. If you estimate an amount or quality you calculate it approximately, you make judgment about it based on the available evidence.

Appreciate. If you appreciate something, for example a piece of music or good food, you recognize and understand the good qualities or features that it has and like or admire it because of them.

1. They meet monthly to discuss policy and … the current political situation.

2. They really … the peace and quiet of rural Wales.

3. The hurricane caused damage … at 300 mln pounds.

4. How would you … our chances?

5. He is the kind of individual that’s very hard to... .

6. The lawyers … the property at 90 thousand pounds.

7. The builder … the cost of repairing of roof at 600 pounds.

8. It can explain why actual costs varied from costs... .

9. I would … the size of the garden at 1000 square metres.

Ex. 2. Complete the table by inserting the missing forms if possible.

Noun	Verb	Adjective/Participle
profit
transaction
		financial
	invest
	audit
		solvent
record
		regulatory

Ex. 3. Choose the right definition from column B to the words and expressions from column A.

A	B
bookkeeping	a) transactions between the firm and its markets;
accounting	b) writing down the details of transactions (debits and credits);
managerial accounting	c) keeping financial records, recording income and expenditure, valuing assets and liabilities, and so on;
internal transactions	d) using all available accounting procedures and tricks, to disguise the true financial position of a company;
tax authorities	e) recording and controlling of all the expenditures of an enterprise in order to facilitate control of separate activities;
tax accounting	f) inspection and evaluation of accounts by a second set of accountants;
auditing	g) transactions within a firm;
creative accounting	h) local, state, and federal governments that levy taxes on individuals and businesses;
external transactions	i) calculating an individual’s or a company’s liability for tax.

Ex. 4. Match the Russian word combinations with their English equivalents.

A	B
бюджетные организации внутренняя хозяйственная операция бухгалтерское дело/учет рентабельность и кредитоспособность манипуляции с бухгалтерской отчётностью учёт издержек производства заключать сделки юридический контракт внешняя хозяйственная операция взимать налоги		to conduct transactions profitability and solvency to levy/collect taxes external transaction creative accounting accounting cost accounting non-profit organisations legal contract internal transaction

Ex. 5. Choose the right variant from the words given below.

1. The purpose of _______ is to provide financial information about the economic entity. 2. The _______ of creating accounting information are recording, classifying and summarizing. 3. Financial information provided by an accountant is needed by managerial _______ to help them plan the company’s activities. 4. The purpose of each business is to earn _______. 5. Every economic entity should stay _______, that is to have sufficient cash to pay debts. 6. The company that is unable to meet its obligations is called _______ . 7. To meet _______ of our society we need some knowledge of accounting.

Words for reference: challenge; insolvent; profit; solvent; decision makers; means; accounting.

Ex. 6. Find the sentences with the following expressions in the text and translate them into Russian.

Management accounting, external transactions, tax authorities, legal contract, non-profit organisations, financial statement, audit, cost accounting, creative accounting, bookkeeping.

Comprehension

Ex. 1. Answer the questions.

1. What is the definition of accounting?

2. What is accounting system?

3. What are the functions of accounting system?

4. What means are used for creating information?

5. What are business activities in accounting associated with?

6. What is the difference between external and internal transactions?

7. What is the subject matter of managerial/cost accounting?

8. What is the subject matter of financial accounting?

8. How can you define creative accounting?

9. Who are the users of accounting information? Why do they need it?

10. What is the difference between accounting and bookkeeping?

Text 2. As you read the text, focus on the main types of financial statements.