Lesson 2 accounting
Task 1. Suggest the Russian equivalents for the words with international roots:
nouns: firm, department, activity, condition, creditor, analyst, bank, figure, finance, category, efficiency, structure;
verbs: to measure, to report, to operate, to analyze;
adjectives: financial, major.
Task 2. Compare root words:
an analyst, n. – аналитик, специалист по анализу
investment analyst, budget analyst, business analyst
analysis, n. – анализ, изучение, исследование
careful analysis, thorough analysis, analysis of corporate cash flows, analysis of experience
to analyse, v. – анализировать
to analyse a financial structure
Helpful Words and Expressions
a record – документ, запись
to record – записывать, регистрировать
to measure – измерять
transaction – сделка, банковская операция
firm’s financial condition – финансовое положение фирмы
to provide data (datum) – обеспечивать данными
a creditor – кредитор
independent – независимый
ownership – собственность
an accountant – специалист по налогам (финансам)
to do books – вести бухгалтерский учёт
an income statement – отчёт о доходах
a balance sheet – балансовый отчёт
to receive – получать
to spend - тратить
ratio analysis – анализ коэффициентов
profitability – прибыльность
Return on Investment Ratio – коэффициент отдачи инвестиций
overall financial structure – полная финансовая структура
to evaluate – оценивать
efficiency – эффективность, производительность
value – стоимость
Task 3. Read and translate the text.
Accounting shows a financial picture of the firm. An accounting department records and measures the activity of a business. It reports on the effects of the transactions on the firm’s financial condition. Accounting records give very important data. They are used by managers, stockholders, creditors, independent analysts, banks and governments.
Most businesses prepare regularly two types of records. That is the income statement and balance sheet. These statements show how money was received and spent by the company.
One major tool for the analysis of accounting records is ratio analysis. A ratio analysis is the relationship of two figures. In finance we operate with three main categories of ratios. One ratio deals with profitability, for example, the Return on Investment Ratio. It is used as a measure of a firm’s operating efficiency.
The second set of ratios deals with assets and liabilities. It helps a company to evaluate its current financial position. The third set of ratios deals with the overall financial structure of the company. It analyses the value of the ownership of the firm.
Task 4. Match the Russian words and expressions to English ones:
1) бухгалтерия; 2) картина финансовой деятельности фирмы; 3) оценивать; 4) полный; 5) актив и пассив; 6) очень важные сведения; 7) бухгалтерские документы; 8) регулярно; 9) главный инструмент анализа.
1) a financial picture of the firm; 2) an accounting department; 3) regularly; 4) very important data; 5) assets and liabilities; 6) overall; 7) to evaluate; 8) a major tool for the analysis; 9) accounting records.
Task 5. Fill in the gaps with the words from the right column.
An accounting department helps … the 1. to profit, v
activity of a business.
2. Do you know the effect of your last … on 2. profit, n
the financial condition of the firm?
3. Accounting records provide … for stock- 3. efficiency
holders, independent analysts.
4. The second type of ratio helps the company … 4. ownership
its current financial position.
5. …is one of the two main records which most 5. to evaluate
of the businesses prepare regularly.
6. The … of the company includes real estate 6. transaction
in California.
7. I am sure of the … of this transaction. 7. data
8. Our company’s current … is very high. 8. income statement
9. They … from the association with that 9. to measure
corporation.
Helpful Words
an accounting department – бухгалтерский отдел
an investor – вкладчик
a profit and loss statement – отчёт по прибыли и убыткам
assets and liabilities – актив и пассив
net worth – стоимость имущества за вычетом обязательств
a financial statement – финансовый отчёт
tax – налог
salary – зарплата
fiscal year – финансовый (бюджетный) год
Task 6. Translate the following sentences into English.
1.Бухгалтерский учёт предоставляет важные сведения для кредиторов и вкладчиков. 2. Бухгалтерский отдел готовит отчёт о доходах и балансовый отчёт в конце финансового года. 3. Мы измеряем, эффективность производства с помощью анализа коэффициентов. 4. Недвижимость является собственностью корпорации. 5. Мы оцениваем актив и пассив и определяем стоимость имущества за вычетом обязательств. 6. Они платят большие налоги.
Task 7. Answer the following questions on the text.
1. What is the purpose of accounting?
2. Who uses the data provided by accounting firms?
3. What are two types of records which most businesses prepare?
4. What can you know analyzing the income statement and balance sheet of a company?
5. What is the purpose of the ratio analysis?
6. What categories of ratios in finance do you know?
Task 8. Discuss with your partner the following problems.
1. What does it mean an experienced accountant?
2. Why should a company have more assets than liabilities?
3. When is a financial statement usually prepared?
4. What are usual activities of an accounting department at the end of the fiscal year?