Text 4 functions of accounting

Exercise 4.1

Study the vocabulary:

1	major	1	більш важливий, значний; основний
2	complexity	2	складність; заплутаність;
3	to regard	3	вважати; розглядати
4	solution	4	рішення, вирішення
5	to attract	5	привертати; тягнути за собою
6	prestige	6	престиж
7	urgent	7	терміновий, невідкладний
8	revenue	8	рахунок доходів; державні доходи (public revenues)
9	intangible assets	9	нематеріальні активи
10	appropriate	10	відповідний, підходящий; доречний
11	impairment		погіршення, ослаблення; пошкодження, збиток

Exercise 4.2

Read and translate the text:

Accounting performs four major functions: recording, classifying, summarizing, and interpreting financial information.

In all countries of the world the complexity of economic activity is gradually growing. And this, in its turn, leads to an increasingly important role of accounting as a function of economic management. At present the necessity of improving accounting through raising its operational utility and quality is regarded as one of the most important tasks. The main condition for the solution of this task is improving the quality of accounting personnel. To attract able young people to the study of accounting, to raise its prestige and demonstrate its importance is an urgent task in many countries of the world.

Accountants measure, record and report financial information that is useful for decision making.

measure

Accountants are trained to recognize when a transaction has financial impact and how the amount is to be determined. Sometimes this is simple, as with inventory purchased with cash. Sometimes it is more complex, as with the amortization of bond premiums, recognition of construction revenue, impairment of intangible assets, and so on.

record

Accountants are trained to apply generally accepted accounting principles (GAAP) so that the appropriate accounts are affected for any given transaction. In the double-entry system, there is always at least one debit and one credit for each transaction... the question accountants face numerous times each day is which accounts and which amounts are used.

report

Recording of transactions lead to the presentation of the financial statements: the Income Statement, the Balance Sheet, the Statement of Cash Flows, and the Statement of Retained Earnings. There are rules enforced by the SEC about the format and content of these financial statements, and accountants are trained to prepare these statements.

Exercise 4.3

Fill in the gaps. Then read and translate:

perform increasingly necessity utility regarded solution urgent improving personnel complexity

Accounting …1… four major functions: recording, classifying, summarizing, and interpreting financial information.

In all countries of the world the …2… of economic activity is gradually growing. And this, in its turn, leads to an …3… important role of accounting as a function of economic management. At present the …4… of improving accounting through raising its operational …5… and quality is …6… as one of the most important tasks. The main condition for the …7… of this task is …8…the quality of accounting …9…. To attract able young people to the study of accounting, to raise its prestige and demonstrate its importance is an …10… urgent task in many countries of the world.

Exercise 4.4

Make up the sentences from the words:

1. information, decision, measure, Accountants record, and report, financial, that, is, useful, for, making.

2. quality, main, The, personnel, condition, for, the, solution, of, this, task, is improving, the, of, accounting.

3. necessity, utility, At, present, regarded, accounting, the, of, important, improving, through, raising, its, operational, and, quality, is, as, one, of , the most, tasks.

4. to, able, demonstrate, prestige, young, study, people, to, the, of accounting, to raise, its, and, its, attract, importance.

Exercise 4.5

Match the word with the definition:

1	major	a	consider or think of (someone or something) in a specified way
2	complexity	b	a means of solving a problem or dealing with a difficult situation
3	to regard	c	you use major when you want to describe something that is more important, serious
4	solution	d	something intricate or complex
5	to attract	e	widespread respect and admiration felt for someone or something
6	prestige	f	cause to come to a place or participate in a venture by offering something of interest or advantage
7	urgent	g	income, esp. when of a company or organization and of a substantial nature
8	revenue	h	this may be owing to obsolescence, damage, or a fall in the market value of such assets.
9	intangible assets	i	Assets of an enterprise which cannot be seen or touched.
10	impairment	j	requiring immediate action or attention