Unit 10

Business Accounting

Two of the most important pieces of information contained in every prospectus and annual report are the balance sheet and the income statement. The balance sheet summarizes a corporation’s assets, what it owns; its liabilities, what it owes; and its net is worth the difference between the two sums at a given time.

The income statement summarizes a firm’s revenues, costs and difference between the two (the profit or loss) over a period of time.

The balance sheet. For every business the things that it owns are assets and those that it owes are liabilities. The difference between the two, which is how more the business owns that it owes, is its net worth. In other words:

assets – liabilities = net worth

or

assets = liabilities + net worth

Balance sheets are usually presented in the second form, with the assets on one side and the liabilities and net worth on the other.

The income statement. The income statement, or profit-and-loss statement as it is also called, shows how much a business has made or loss over a period of time (usually a year).

III. Answer the questions:

1. What are two of the most important pieces of information contained in every annual report?

2. What is a balance sheet?

3. What does the income statement summarize?

4. What is net worth?

5. Where are balance sheets usually presented?

6. How is the income statement also called?

IV. Give Ukrainian equivalents for:

Liabilities, owner, balance sheet, assets, profit, income statement, annual report, revenue, loss, net worth, to be presented, short-term, long-term, currency, difference, funds.

V. Translate into English:

1. Цифри, які містяться у річному звіті та в балансовій відомості, дуже важливі для нас.

2. Аудитор – це особа, що перевіряє фінансову діяльність компанії.

3. Балансова відомість це документ, який показує стан справ фірми.

4. Мені сказали, що він досвідчений бухгалтер.

5. Важливо, щоб аудитор був об’єктивним та критичним.

6. Складність ситуації пояснюється відсутністю фінансів.

7. Ми хочемо звернути увагу на фактори, які негативно впливають на фінансову ситуацію в компанії.

VI. Translate into Ukrainian:

1. You see, dollars, yens, sterling are all different currency.

2. Some are strong, others are weak, and they all vary.

3. There are always problems of foreign exchange if the exchange rate changes suddenly.

4. If one currency rises or falls against another, the variation can cause losses.

VII. Give your viewpoint:

1. Describe the role of computers in accounting.

2. Money is said to have a time value. What exactly does it mean?

Дата добавления: 2014-11-29