2.Answer the questions:

1. What provides the basis for double-entry bookkeeping?

2. When did double-entry bookkeeping appear?

3. Why has this method endured?

4. What may the assets consist of?

5. What may liabilities consist of?

6. What are the three major pans of the standard account form?

7. How is the left side called?

8. How is the right side called?

9. What are the left and the right sides used for?

TEXT 6

1. Read and translate the text:

Accounting data processing methods

Accounting performs measurement and communication functions to facilitate the operation of modem, business and our economic system. It collects and reports data to reveal economic activity, effect administrative control and improve business planning. It serves society, by providing useful information for a variety of objectives, and management, by developing more efficient means of operating a business. The main problems of recording economic activity are related to the business problems involved in asset acquisition, utilization, and disposition. The problems of communication, however, are tied to the need for accounting reports to transmit economic information for decision-making purposes. These two accounting functions are combined in the processing of economic data.

While there used to be a tendency to think of accounting as having only one method of processing data—the manually operated double-entry mechanism—accounting actually encompasses several. All accounting data processing methods, however, seem to be related to the concept of a transaction, even though it is variously defined. The discrete concept of a transaction provides a basis for measuring the flow of economic activity, which is a continuous process. Under the traditional manual recording process, this transaction concept has permitted the past activities of an accounting entity to be recorded by a set of somewhat standardized accounting procedures.

Notes to the text:

data processing methods - методы обработки данных, методи опрацювання даних

measurement and communication functions – функции измерения и коммуникации, функції виміру та комунікації

to report data to reveal economic activity – предоставлять информацию, чтобы показать экономическую деятельность, надавати інформацію,щоб показати економічну діяльність

asset acquisition – приобретение основных средств, придбання основних засобів

decision-making purposes - цели принятия решений, цілі прийняття рішень

manually operated – управляемый вручную, керований ручним способом

to encompass – вмещать, містити (в собі)

discrete concept – дискретная концепция, розрізнена концепція

flow of economic activity – движение экономичекой деятельности, прямування економічної діяльності

2.Answer the questions:

1. What does accounting perform?

2. Whom does accounting serve?

3. How does accounting serve society?

4. Why does accounting collect and report data?

5. What are the main problems of recording related to?

6. What are all accounting data processing methods related to?

7. What does the discrete concept of transactions provide?

TEXT 7