The accounting systems of different enterprises
a) are always the same in nature of the accounting systems
b) are never different in nature of the accounting systems
c) may be totally different in nature of the accounting systems
3. Recording and classifying the collected information in a logical manner is called …
a) information reporting
b) information recording
c) information evaluation
4. The cost of an accounting system in any business …
a) is the same
b) is never different
c) is different
5. Although a complex accounting system may provide more accurate and detailed information, this information …
a) is always vital and the expenses on operating the system would outweigh the additional benefits derived.
b) is not often vital and the costs of operating the system would be less important than the additional benefits derived.
c) is not often vital and the costs of operating the system would outweigh the additional benefits derived.
Exercise 2.4
Read the last part of the text again and fill in the gaps. Then read and translate:
| expensive; manager; position; business; needs; outweigh; responsible; system; benefits; involved; |
A senior…1…in an international oil exploration and refining…2…, however, may be…3…for different trading operations throughout the world, and cannot, therefore, be closely…4…in day-to-day operations. In order to overcome the problem of remoteness the accounting …5…can become a manager's 'eyes and ears' providing information concerning the financial…6…and performance of trading operations. The complexity of the business and the…7…of the manager for detailed information will mean that the accounting system is likely to be both sophisticated and …8…to operate. However, the…9…of the system in terms of improved economic decision-making should…10…its costs.
Exercise 2.5
Read the whole text again and choose the best answer:
1. How many common elements which are available in accounting systems are mentioned in the text?
a) 5;
b) 4;
c) 6
2. Which factors designing an accounting system for a business have to be taken into account?
a) the cost and the complexity of the system;
b) the price and the simplicity of the system;
c) the budget and the density of the system
3. On what basis may the owner-manager of a small grocery store be prepared to accept a relatively simple accounting system?
a) on the basis that it is inexpensiveto operate.
b) on the basis that it is expensiveto operate.
c) on the basis that it is inexpensiveto activate.
4. What to do in order to overcome the problem of remoteness?
a) the accounting system can be closely involved in day-to-day operations;
b) the accounting system can become a manager's 'eyes and ears';
c) the accounting system can provide performance of trading operations
5. What will the complexity of the business and the needs of the manager for detailed information mean?
a) It will mean that the accounting system is likely to be of no use and cheap in operations.
b) It will mean that the accounting system is likely to be unused and expensive to operate.
c) It will mean that the benefits of the system in terms of improved economic decision-making should prevail over its costs.
TEXT 3
FIELDS OF ACCOUNTING
Exercise 3.1
Study the vocabulary:
| major fields | основні галузі | ||
| governmental | урядовий | ||
| a private business enterprise | приватне підприємство | ||
| To sell | продавати | ||
| white collar | білі комірці | ||
| To grow | рости, збільшуватись | ||
| skilled accountants | кваліфіковані бухгалтери | ||
| junior accountant | молодший бухгалтер | ||
| chief financial officer | головний фінансовий службовець | ||
| to maintain and interpret | підгримувати й тлумачити | ||
| payrolls | платежі | ||
| faced with | стикатись з | ||
| conflicting loyalties | конфліктуючи з правниками | ||
| unique feature | унікальна риса | ||
| paramount responsibility | найвища відповідальність |
Exercise 3.2
Read and translate the text:
There are three major fields of accounting: governmental, private, and public accounting. In simple terms this means that an accountant may be employed by a unit of government, by a private business enterprise, or by himself or a firm selling accounting to the public.
Governmental units at all levels employ accountants to maintain and check the accounting records. A list of important federal agencies that utilize the services of accountants might include the Internal Revenue Service, the General Accounting Office, the Defense Contract Audit Agency, the Army Audit Agency, and the Air Force Auditor General, among others. States, counties, and municipalities have similar needs for skilled accountants. As the government sector in the economy has grown, this area has become a more significant employer of accountants.
Private accounting includes those accountants who are employed by private business enterprises. These range from the junior accountant maintaining detailed accounting records up to the controller, or chief financial officer. Accountants in industry are required to maintain and interpret all sorts of financial records, including those pertaining to payrolls, receivables, payables, operating costs and revenues, and cash. Generally, these accountants work the same regular hours as other white collar workers. They are paid directly by the party they serve.
Public accountants practice either as individuals or as employees of accounting firms. They are kept busy in much the same manner as attorneys or medical doctors by serving their own independent clients. Public accountants have no single employer as such, but instead make their services available to the public at large. The services rendered include auditing, tax services, and special management consultation.
Public accounting does have at least one unique feature. Unlike most other professional persons, the public accountant is often faced with conflicting loyalties. His first and paramount responsibility is to protect the interests of the public at large; yet he must look to his client for his fee. What may be in the public's interest may not be in the client's interest. This situation creates a triangle that sometimes poses difficulties for the public accountant.
Exercise 3.3
Make up the sentences from the words:
1. Public accounting does have at least one unique feature.
2. Public accountants practice either as individuals or as employees of accounting firms.
3. This situation creates a triangle that sometimes poses difficulties for the public accountant.
4. The services rendered include auditing, tax services, and special management.
5. States, counties, and municipalities have similar needs for skilled accountants.
Exercise 3.4
Fill in the gaps. Then read and translate:
| generally enterprises detailed employed private interpret financial payrolls revenues collar |
…1… accounting includes those accountants who are …2…by private business …3…. These range from the junior accountant maintaining … 4…accounting records up to the controller, or chief financial officer. Account ants in industry are required to maintain and …5… all sorts of …6… records, including those pertaining to …7… , receivables, payables, operating costs and …8… , and cash. …9… , these accountants work the same regular hours as other white …10… workers. They are paid directly by the party they serve.
Exercise 3.5
Read the text again and put the sentences into a chronological order:
1. There are three major fields of accounting: governmental, private, and public accounting.
2. Governmental units at all levels employ accountants to maintain and check the accounting records.
3. As the government sector in the economy has grown, this area has become a more significant employer of accountants.
4. Private accounting includes those accountants who are employed by private business enterprises.
5. Public accounting does have at least one unique feature.
Exercise 3.6
Read the sentences and mark the statements True or False:
1. There are five major fields of accounting: governmental, private, and public accounting.
a) True
b) False