Unit 13 Accounting and financial statements

Unit 13

ACCOUNTING AND FINANCIAL STATEMENTS

Vocabulary

bookkeeping – writing down the details of transactions (debits and credits) 

accounting – keeping financial records, recording income and expenditure, valuing assets and liabilities, and so on 

historical cost – the price paid for an asset when it was bought, rather than what it is worth now 

asset – something belonging to an individual or a business that has value or the power to earn money 

liability – an amount of money owed by a business to a supplier, lender etc

managerial accounting – preparing budgets and other financial reports necessary for management 

cost accounting – working out the unit cost of products, including materials, labour and all other expenses 

replacement cost – the cost of buying an asset now, rather than the price that was paid for it in the past

tax accounting – calculating an individual's or a company's liability for tax 

auditing – inspection and evaluation of accounts by a second set of accountants 

'creative accounting' – using all available accounting procedures and tricks to disguise the true financial position of a company 

depreciation – when the value of something goes down, usually gradually

overheads – a company's general costs for activities not related to particular products 

fixed assets – something that a business owns and that it uses in order to produce goods, e. g. a piece of land, a building, or a piece of machinery 

net book value – the value of an asset or a group of assets in a company's financial records after depreciation or revaluations 

financial statement – a statement showing  the financial state of a business, at the end of a particular period of time, including its balance sheet, profit and loss account, and other necessary information 

profit and loss account (GB) income statement (US) – a financial statement showing the financial results of a company's normal activities for a particular period of time, usually the financial year 

expenditure – the total amount of money that a government, organization or person spends during a particular period of time 

balance sheet – a document showing  a company's financial position and wealth at a particular time, often the last day of its financial year 

double-entry bookkeeping – the accounting system in which each transaction is recorded twice, as a debit in one account and as a credit in another

accounting equation – one of the relationships between assets and liabilities used in accounting 

owner's (shareholder's) equity – the difference between the value of a company's assets and its liabilities other than those to shareholders. In principle, this is what the company would be worth to shareholders if it stopped trading, its assets were sold and debts paid 

net assets – the overall value of a business, the difference between its assets and its liabilities 

share capital – capital that a company has from investors who have bought shares 

retained profit – net profit for a particular period of time, or for several periods of time, that are not paid to shareholders in dividends 

market capitalization – the total value of all the shares on a stockmarket at a particular time 

source and application of funds statement – a particular form of the funds flow statement 

debenture (zero-interest bond) – an interest-paying loan which may be traded on bond markets 

freehold property – property which you own completely and for an unlimited time 

instalment – one of a series of regular payments that are made until all of an agreed amount has been paid 

Exercise 1.  Give English equivalents.

отчет о фондах и их использовании  финансовый отчет долги, денежные обязательства, задолженность; статья пассива (в балансе)  накладные расходы  восстановительная стоимость счетоводство, бухгалтерский учет облигация акционерного общества или компании, долговое обязательство, долговая расписка цена приобретения, первоначальная стоимость  акционерный капитал (капитал краткосрочных вложений)  остаточная балансовая стоимость, балансовая стоимость активов полная земельная собственность  ведение отчетности; калькуляция стоимости, исчисление себестоимости нераспределенные прибыли учет налогов бухгалтерская сбалансированность дебета и кредита обесценивание, снижение  рыночная капитализация (общая стоимость всех выпущенных в обращение акций компании) очередной взнос акционерный капитал, собственный капитал затрата, трата, расход(ы) основные средства (владения постоянного, неизменного характера, предназначенные для производства и продажи продуктов) счет прибылей и убытков бухгалтерское/счетное дело  оперативный учет, связанный с нуждами управления, текущий анализ хозяйственной деятельности бухгалтерский баланс статья актива (в балансе) ревизование; проведение ревизии система бухучета по методу двойной записи стоимость имущества за вычетом обязательств "творческое ведение отчетности"