586

Total income — the income of a taxpayer from all sources

Turnover — 1) the total value of business done during a given period, usually the total annual sales;

2) the number of times that a stock of goods or of money is replaced in a given period

Valuation — ascribing a monetary amount to an asset or a liability. The valuation may be a historical one or a current one

Working capital (WC) — the stock of money needed by a business in order to keep trading or to carry on production. It consists of stocks and liquid resources (cash and things that can quickly be turned into cash); and it is equal to the difference between the current assets and the current liabilities

References

1.Kothari J., Barone E. Financial Accounting. An International Approach. Pearson Education Limited, FT Prentice Hall, 2006. 408 p.

2.Atrill P., McLaney E. Accounting and Finance for Non-Specialists. Pearson Education Limited, FT Prentice Hall, 2006. 538 p.

3.Nobes C., Parker R.H. Comparative International Accounting. Prentice Hall International LTD, 1991. 520 p.

4.Sneyd M.R. Accounting. Prentice Hall International LTD, 1994. 118 p.

5.Rachman D.J., Mescon M.H., Bovee C.L., Thill J.V. Study Guide. Business Today, 1996. 270 p.

6.Mackenzie J. Financial English. Thomson Heinle, 2002. 159 p.

7.Mackenzie J. Professional English in Use Cambridge University Press, 2007.140 p.

8.Любимцева С.Н., Коренева В.Н. Курс английского языка для финансистов: Учебник. М.: ГИС, 2000. 380 с.

9.Быков В.С., Горбунова Т.В., Обласов М.В. Бухгалтерский учет себестоимости перевозок (продукции, работ). Новосибирск: Изд-во СГУПСа, 2001. 270 с.

10.Соколов Я.В., Пятов М.Л. Бухгалтерский учет для руководителя. М.: ПБОЮЛ Гриженко Е.М., 2000. 282 с.

11.Parker R.H. The Macmillan Dictionary of Accounting. The Macmillan Press LTD, 1992. 272 p.

12.Adam J.H. Longman Dictionary of Business English. Longman Group Limited, Relod, 1993. 492 p.

13.Hollett V. Business Objectives. Oxford University Press, 1993. 174 p.

14.Англо-русский словарь по бухгалтерскому учету, аудиту и финансам / Сост. Терехов Д.Ю. М.: Аскери, 1994. 508 с.

ANSWER KEY

UNIT 1

Reading Comprehension Ex. 3

1 – c; 2 – g; 3 – a; 4 – b; 5 – f; 6 – d; 7 – e Vocabulary Practice

Ex.1

Compare – comparability, comparison; perform - performance; manage - management, manager; consist - consistency; consult – consultancy, consultant; inform - information; act - action, activity; assume - assumption; provide - provision, provider; evaluate - evaluation; measure - measurement

Ex. 3

1 – d; 2 – a; 3 – g; 4 – f; 5 – c; 6 – h; 7 – j; 8 – i; 9 – e; 10 – b Ex. 4

1) to give reliable information; 2) the value of capital assets; 3) such details as the interest paid; 4) and expenditure on advertising; 5) he calculates profits; 6) can be distributed to shareholders; 7) is an absolute necessity; 8) would not know where it stood financially

Ex. 5

1) account; 2) accountancy; 3) accounting; 4) accounts; 5) accountancy; 6) accountant; 7) accounts, accounting; 8) accountant, accounts; 9) accounting; 10) accountancy; 11) accounting, accounts

Ex. 6

C – E – D – A – G – F – B Ex. 7

identification → recording → analysis → reporting Ex. 8

1 – F; 2 – F; 3 – T; 4 – F; 5 – T; 6 – T Supplementary Reading Practice

Ex. 1

1) back; 2) profession; 3) creation; 4) throughout; 5) number; 6) role; 7) organizations; 8) functions; 9) principles; 10) accountants; 11) members; 12) organized

Ex. 4

has; is regulated; is / has been; appeared; was intended; was created; was used; was made; consists; are called; is determined; is provided / has provided

Ex. 7 (b)

1) Employees; 2) Owners (or Investors); 3) Lenders; 4) Suppliers; 5) Customers; 6) Government; 7) Members of the public; 8) Investment analysts; 9) Competitors; 10) Managers

Assignment

1 – d; 2 – a

UNIT 2

Vocabulary Practice

Ex. 1

1 – h; 2 – g; 3 – j; 4 – a; 5 – b; 6 – d; 7 – i; 8 – e; 9 – f; 10 – c Ex. 2

1 – f; 2 – i; 3 – d; 4 – h; 5 – e; 6 – a; 7 – b; 8 – g; 9 – j; 10 – c Ex. 4

1) debit; 2) ledger; 3) debtors; 4) credit; 5) stock; 6) creditors Ex. 5

1) debit; 2) debit, credit; 3) credit, debit; 4) debit Ex. 6

1) significance; 2) duality; 3) events; 4) benefit; 5) double-entry; 6) transaction; 7) credit; 8) balance

Ex. 7

1 – d; 2 – f; 3 – e; 4 – g; 5 – a; 6 – c; 7 – b

Ex. 8

1) tax; 2) assets; 3) liabilities; 4) accountant; 5) creditor; 6) debtors ; 7) book-keeper; 8) equity; 9) cash

Supplementary Reading Practice

1.

(b) 1) In the account; 2) The ledger; 3) Date, explanation, and amount; 4) Debit; 5) Credit; 6) Debit (left side); 7) Debit; 8) Every business transaction involves a minimum of two changes. The system used to reflect this is known as double-entry accounting; 9) Total the debit and credit money columns. If the totals are the same, the account is said to be in balance.

(c)

Cash

Date		Explanation	Debit		Credit	Balance
200_
Oct..	1			12,000.00		12,000.00
	3			3,000.00		15,000.00
	8				500.00	14,500.00
	15				250.00	14,250.00
	19			1,200.00		15,450.00
	25				50.00	15,400.00
	30				450.00	14,950.00
Delivery Equipment
Date		Explanation	Debit		Credit	Balance
200_
Oct..	1			8,000.00		8,000.00
	5			2,500.00		10,500.00
John Graves, Capital
Date		Explanation	Debit		Credit	Balance
200_
Oct..	1				20,000.00	20,000.00
	5				1,200.00	23,000.00
Delivery Service Income
Date		Explanation	Debit		Credit	Balance
200_
Oct..	3				3,000.00	3,000.00
	19				1,200.00	4,200.00
Warehouse Supplies
Date		Explanation	Debit		Credit	Balance
200_
Oct..	5			500.00		500.00
Rent Expense
Date		Explanation	Debit		Credit	Balance
200_
Oct..	8			500.00		500.00
Repairs & Gasoline Expense
Date		Explanation	Debit		Credit	Balance
200_
Oct..	15			250.00		250.00

Utilities Expense

Date		Explanation	Debit		Credit	Balance
200_
Oct..	8			50.00		50.00
Salaries		Expense
Date		Explanation	Debit		Credit	Balance
200_
Oct..	30			450.00		450.00

(d)

ACCOUNT LISTING
	BALANCES
	DEBIT	CREDIT
Cash	$14,950
Delivery Equipment	10,500
John Graves, Capital		$23,000
Delivery Service Income		4,200
Warehouse Supplies	500
Rent Expense	500
Repairs & Gasoline Expense	250
Utilities Expense	50
Salaries Expense	450
	$27,200	$27,200

3.(a) 1 – c; 2 – e; 3 – d; 4 – a; 5 – b

(b) 1 – f; 2 – d; 3 – e; 4 – c; 5 – b; 6 – g; 7 – a; 8 – i; 9 – h

2. 1 – F; 2 – J; 3 – A; 4 – D; 5 – C; 6 – E; 7 – H; 8 – G; 9 – I; 10 – B Assignment

1. bookkeeping, a bookkeeper; external auditing, an independent auditor; management accounting, a management accountant, financial accounting, a financial accountant; accounting, an accountant or internal auditing, an internal auditor

1) b; 2) d; 3) a; 4) $170,000

UNIT 3

Reading Comprehension

Ex. 4

1 – T; 2 – F; 3 – T; 4 – T; 5 – F

Vocabulary Practice

Ex. 1

1 – g; 2 – h; 3 – e; 4 – j; 5 – b; 6 – c; 7 – a; 8 – d; 9 – f; 10 – i

Ex. 2

1 – h; 2 – f; 3 – a; 4 – i; 5 – c; 6 – g; 7 – b; 8 – d; 9 – j; 10 – e

Ex.3

to allocate funds; to incur costs; to publish a balance sheet; to draw up a statement; to make an entry; to keep books; to report upon financial position; to enter a transaction

Ex. 4

Current assets – construction in progress, cash in bank, debtors, stock, bank deposits Fixed assets – premises, locomotives, land, sub-grade, investments

Intangible assets – goodwill, human capital, trademark, patents, software Ex. 5

1) ordinary; 2) extraordinary; 3) turnover; 4) dividend; 5) distribution; 6) cost of sales; 7) administrative expenses; 8) retained

Ex. 6

distribute profits, grant credit, owe money, pay liabilities, retain earnings

1) retain …earnings, distribute …profits; 2) owe … money, grant … credit; 3) liabilities …pay Ex. 7

1 – e; 2 – b; 3 – a; 4 – f; 5 – d; 6 – c Ex. 8

1) Suppliers; 2) Retained earnings; 3) Assets; 4) Liabilities; 5) Shareholders’ equity Ex. 9

1) revenue; 2) Revenue; 3) expenses; 4) profit; 5) dividend; 6) tax; 7) retain Ex. 10

Fixed assets – £41.9m; Stocks – £3m; debtors – £78m; Loans and overdrafts – £1.8m; Creditors – £134m; Capital and Reserves – £16m

Ex. 11

(a)1) Loans and overdraft; 2) Share capital and reserves; 3) Fixed assets; 4) Dividend; 5) Creditors; 6) Debtors; 7) Stocks; 8) Net current assets; 9) Total assets

(b)1 – from, to; 2 – by; 3 – at; 4 – to; 5 – from, to

Ex. 12

1) profit and loss account; 2) revenues; 3) turnover; 4) income; 5) balance sheet; 6) liabilities; 7) debtors; 8) creditors

Ex. 13

1) bad debts; 2) net assets; 3) patent; 4) net book value; 5) goodwill; 6) trade mark; 7) write off; 8) to make provisions; 9) work-in progress; 10) debtors

Ex. 14

a – 4; b – 1; c – 6; d – 9; e – 3; f – 2; g – 10; h – 7; i – 8; j – 5 Ex. 15

1) balance sheet; 2) inventory; 3) goodwill; 4) accounts receivables; 5) net income; 6) mortgage; 7) marketable securities; 8) accounts payable; 9) depreciation; 10) receipts

Supplementary Reading Practice

Ex. 1

(c)deduct costs; depreciate fixed assets; record market value / purchase price; reduce profits / value 1) record … purchase price; 2) fixed assets, deduct … costs; 3) reduce … value

(d)1) straight-line; 2) declining balance; 3) sum-of-the-years’-digits; 4) unit of production; 5) hours of use Ex. 3

(b)1) Operations; 2) Investing; 3) Financing; 4) operations; 5) financing; 6) operations; 7) investing Assignment

Ex. 1

(a)An increase in the level of inventories would ultimately have an adverse effect on cash;

(b)A bonus issue of ordinary shares has no cash flow effect;

(c) Writing off some of the value of the inventories has no cash flow effect;

(d)A disposal for cash of a large number of shares by a major shareholder has no cash flow effect as far as the business is concerned;

(e) Depreciation doesn’t involve cash at all. Ex. 2

			E
			ffect
		on prof-		on
		it		cash
1.	Repayment of a loan	none		de-
				crease
2.	Making a sale on credit	increase		none
3.	Buying a non-current asset for cash	none		de-
				crease
4.	Receiving cash from a debtor	none		in-
				crease
5.	Depreciating a non-current asset	de-		none
		crease
6.	Buying some inventories for cash	none		de-
				crease
7.	Making a share issue for cash	none		in-
				crease

Ex. 3

1)Non-current assets + Current assets – Current liabilities – Non-current liabilities = Capital

2)Assets = Capital + (Sales Revenue – Expenses) + Liabilities

UNIT 4

Reading Comprehension Ex. 2

1 – d; 2 – i; 3 – f; 4 – j; 5 – k; 6 – a; 7 – b; 8 – h; 9 – c; 10 – e; 11 – g

Vocabulary Practice Ex. 1

1 – h; 2 – f; 3 – j; 4 – a; 5 – e; 6 – d; 7 – b; 8 – g; 9 – i; 10 – c Ex. 2

1 – e; 2 – f; 3 – g; 4 – j; 5 – a; 6 – h; 7 – c; 8 – d; 9 – b; 10 – i Ex. 4

1 – c; 2 – f; 3 – g; 4 – a; 5 – d; 6 – b; 7 – e Ex. 5

1 – g; 2 – f; 3 – h; 4 – d; 5 – a; 6 – e; 7 – b; 8 – c Ex. 6

1)tax accounting; 2) tax allowance; 3) tax authority; 4) tax avoidance; 5) tax consultant; 6) corporation tax;

7)tax deductible; 8) direct tax / taxation; 9) tax evasion; 10) tax free; 11) haven; 12) income tax; 13) indirect tax / taxation; 14) tax inspector; 15) tax loophole; 16) tax loss; 17) taxpayer; 18) progressive tax / taxation; 19) tax rates; 20) tax rebate; 21) regressive tax / taxation; 22) tax return; 23) sales tax; 24) tax shelter; 25) withholding tax; 26) tax year

Ex. 7

1)are liable; 2) deduct, pay; evading; 3) avoid; 4) lower; 5) raise; 6) levies

Ex. 8

1) increase; 2) bracket; 3) exile; 4) abolish; 5) exempt; 6) breaks; 7) property; 8) return

Ex. 9

1) income tax; 2) corporation tax; 3) capital gains tax; 4) excise duty; 5) progressive tax; 6) creative accounting; 7) tax haven; 8) loophole; 9) tax deductible; 10) tax loss; 11) value added tax; 12) tax evasion; 13) tax shelter; 14) money laundering

Ex. 10

1 – b; 2 – a; 3 – b; 4 – b; 5 – b; 6 – a; 7 – b; 8 – b; 9 – c; 10 – c; 11 – a; 12 – b Supplementary Reading Practice

Ex. 1

(a) 1 – F; 2 – T; 3 – F; 4 – T; 5 – T; 6 – T; 7 – F; 8 – F

Ex. 3 Revenue; Redistribution; Repricing; Representation

Assignment

Ex. 1

1 – b; 2 – a; 3 – a; 4 – a; 5 – b Ex. 2

1 – c; 2 – a; 3 – b Ex. 3

Tax calculation: (0,05×50,000) + (0,10×50,000) + (0,15×75,000) = 18,750 The «effective rate» would be 10,7 %: 18,750 / 175,000 = 0,107

The «marginal rate» would be 15 %.

UNIT 5

Reading Comprehension

1 – c; 2 – d; 3 – a; 4 – e; 5 – b; 6 – g; 7 - f Vocabulary Practice

Ex. 1

reliable – reliability; accurate – accuracy; complete – completion; confident – confidence; correct – correctness; comply – compliance; evaluate – evaluation; depend – dependence; create – creation; conclude – conclusion; measure – measurement; examine – examination

Ex. 3

1 – g; 2 – c; 3 – i; 4 – h; 5 – j; 6 – f; 7 – b; 8 – a; 9 – d; 10 – e

Ex. 4

1 – g; 2 – c; 3 – i; 4 – h; 5 – j; 6 – f; 7 – b; 8 – a; 9 – d; 10 – e Ex. 5

1 – d; 2 – c; 3 – a; 3 – b Ex. 6

Check accounts, stock take; systems of control; comply with laws, policies, procedures, regulations; examine accounts, systems of control; give advice, opinions

Ex. 7

1)difference between; 2) refer to; 3) insist on; 4) in line with; 5) reason for; 6) responsible for; 7) blame for;

8)agree with; 9) suspicious of; 10) caused by

Ex. 8

1 – d; 2 – h; 3 – f; 4 – a; 5 – i; 6 – c; 7 – k; 8 – e; 9 – l; 10 – m; 11 – j; 12 – n; 13 – g; 14 – b Ex. 9

1) internal auditors; 2) examination; 3) controllers; 4) evaluate; 5) accuracy; 6) comply with; 7) systems of control; 8) recommend

Ex. 10

(a)1) accuracy; 2) deviations; 3) standard operating procedures; 4) external; 5) determine; 6) board of directors; 7) ratified; 8) shareholders; 9) Annual General Meeting; 10) deficiencies; 11) a synonym; 12) transnational corporations; 13) checking; 14) directives; 15) implemented; 16) subsidiaries

(b)1) review / check / evaluate / control; 2) give / present; 3) report; 4) appoint; 5) recommend; 6) legal

Ex. 5

1) independent auditor; 2) internal control; 3) accounting principles; 4) generally accepted; 5) applied consistently; 6) prior periods; 7) financial disclosure; 8) evidence gathering

Supplementary Reading Practice

Ex. 3

1) responsibilities; 2) statements; 3) opinion; 4) audit; 5) standards; 6) management; 7) performed; 8) proper; 9) free; 10) preparing; 11) audit; 12) opinion; 13) view; 14) accordance

Assignment

The Managing Director is Peter, who is German,

The Accountant is Bernadette, who is Swiss,

The Auditor is Nathan, who is English