Файл: English for Economistsc 2014.doc

Ex.14. Discuss with your partner the factors affecting your decisions as consumers (prices, your income, quality).

Income Distribution

Texts for Extra Reading

Ex.15. Read and translate the text.

Accounting and Auditing

Whenever a man sets up a business it is because he feels he can produce some useful commodity or service which will be needed by his fellow citizens. In return he expects to be able to earn a profit on his business. To conduct his affairs efficiently and profitably the businessman must have some knowledge of accounting.

Accounting is the language of finance which all business decision-makers must understand. It is the process of capturing, processing, and communicating financial information. In other words, it is an information system that accumulates, records, classifies, summarizes, and reports commercial transactions. The aim of this process is to show the financial condition of a business entity. This information, in the form of financial statements, is then communicated to those who make decisions concerning the operations of an enterprise.

Bookkeeping is a small part of the system and deals with record-keeping.

Accounting information is used by managers, investors, and different groups in society, for example, tax authorities, labour unions, local governments, financial analysts etc. From this perspective, accounting is divided into managerial and financial accounting.

The major branches of accounting are public, private, and governmental accounting.

Public accounting refers to the work done by independent Certified Public Accountants (CPA), the corresponding professional British title being Chartered Accountants. They audit the books of companies to ensure that their financial statements and records are properly stated.

Private accounting refers primarily to the private sector of the economy and involves the analysis and recording of financial information by accountants who are employees of the business entity.

Governmental accounting is the accounting function performed for central (federal and state) and local governmental institutions.

Vocabulary Notes:

1. accounting n бухучет

2. audit n аудит

3. set up a business организовывать/основывать дело

4. report v давать отчет

5. entity n хозяйствующий субъект

6. financial statements финансовая отчетность

7. bookkeeping n счетоводство

8. record-keeping n ведение учета

9. from this perspective с этой точки зрения

10. public accounting работа независимых бухгалтерских

работников в качестве аудиторов

11. private accounting учет в хозрасчетных организациях

12. governmental accounting учет в государственных учреждениях

13. certified public accounting firms фирмы дипломированных независи-

мых бухгалтеров

14. the books n бухгалтерские книги

15. accounting function государственный институт, государ-

ственное учреждение

Ex.16. Answer the following questions:

1. Why must businessmen have some knowledge of accounting?

2. What is accounting?

3. What does an accounting information system show?

4. Who needs financial information?

5. What are the major branches of accounting?

Ex.17.Find in the text English equivalents for the following Russian words and phrases:

быть в состоянии заработать прибыль; чтобы вести дела эффективно и с прибылью; накапливать; суммировать и давать отчетность по коммерческим операциям; финансовое состояние хозяйствующего субъекта, финансовая отчетность, финансовые аналитики; бухучет подразделяется на…; основные направления бухучета; подвергать аудиторской проверке бухгалтерские книги; анализ и отражение финансовой информации.

Ex.18. Match the verbs in A with the nouns in B.

A B

to set up a commodity

to produce affairs

to earn information

to conduct the books

to communicate a function

to audit profit

to perform a business

Ex.19. a)Read the interview, b)Say:

- how one can become an auditor;

- whether Russia follows international practice in auditing.

Foreigner: As far as I know, you didn’t use to have auditing firms before

your economic reforms. But now auditing is widely practiced

here, isn’t it?

Russian: That’s right. Our auditing profession is developing very fast.

F.: Are there any professional organizations of auditors in Russia

now?

R.: Yes, there are. They help auditors in their professional activity.

Now auditors are trained in institutes of higher education.

F.: Can graduates perform audits?

R.: No, they can’t. To carry out audits one must have a licence.

F.: Do your auditors take exams for that?

R.: Like in your country they do. Requirements for people who take

such exams are very strict. Then auditors must have several years

of approved experience and constantly upgrade their skills.

F.: I see. You follow international practice. What services do your

auditors offer?

R.: As a rule, they audit financial statements and provide opinion on

their accuracy and reliability. Besides, they provide consultancy

on financial management, taxation and designing of accounting

systems.

F.: These are most common things for auditors in market economy.

R.: That’s true. Russia has been recognized as market economy lately.

Vocabulary Notes:

1. auditing firm аудиторская фирма

2. perform an audit проводить аудиторскую проверку

3. carry out an audit проводить аудиторскую проверку

4. licence n лицензия

5. upgrade skills повышать квалификацию

6. consultancy services консультационные услуги

7. financial management финансовый менеджмент

8. designing of accounting systems разработка систем бухучета

Role- play: The reason I Want to Be an Accountant and Auditor

Any country needs accountants. Ask your foreign friend who is trained to be an accountant and auditor why he wants to make a career in accounting/ auditing.

Ex.20. Translate the text into Russian and analyze grammatical and lexical problems of the translation.

Accounting: Changes and Prospects

Significant changes are known to have taken place in accounting in recent years. The accountancy profession has gained a very high status. The modern accountant has begun to play an important role in business activity. As a result he is expected to perform various duties today, one of the major duties being provision of information to the management. By providing information to managers the accountant enables them to assess their own performance, to make economic decisions and to devise ways to improve their efficiency. Equally important is the task of designing accounting systems.

In spite of the centuries of evolution the double-entry principles has remained the backbone of any accounting system. At the same time, however, one can’t deny the fact that the development of human society influences accounting and makes designing accounting systems for new fields like “social accounting”, “green accounting”, “tax accounting” etc. a challenging task.

Another responsibility of accountants is to prepare financial statements, the four basic financial statements being the income statement, balance sheet, capital statement, and the statement of cash flows.

One of the biggest problems facing the accounting profession is the necessity of rapid adaptation to the changes connected with enormous growth of industry, the world globalization process and development of information technology. In this context there is a general opinion in the profession about the need to improve the quality of accounting, professional competence, and accounting education. Maintaining high ethical standards, compliance with relevant laws, as well as accounting and auditing standards are also on the agenda.

Ex.21. Read and translate the text.

On British Economy

The economy of Great Britain is based primarily on private enterprise.

The private sector accounts for 82 percent of output and 79 percent of employment. Since 1979 the government has reduced the state-owned sector of industry by about two-thirds under its privatization programme. It believes that economic decisions are best taken by those competing in the marketplace and that its primary roles are to help keep inflation low, maintain sound public finances and create the right climate for markets to work better. Government programmes provide direct assistance or advice mainly to small and medium–sized businesses. Government economic policies are aimed at raising productivity, increasing employment opportunity for all, providing educational opportunity for all, abolishing poverty, delivering public services, and achieving rising prosperity.

In 2002 growth in the UK economy continued. Gross Domestic Product sector (finance, tourism, shipping and aviation) which now accounts for around two-thirds of GDP, compared with about one-half in 1950. Production of manufactured goods contributes less than one quarter of GDP, compared with over a third in 1950.

Employment has grown over this period at a high pace. At the moment the economy is seeing the longest period of low inflation since the 1960s.

In 2002 the Government investment rose by 15.4 percent.

Vocabulary Notes:

1. account (for) v составлять

2. sound public finances «здоровые» государствен-

ные финансы

3. right adj верный, надлежащий, под-

ходящий

4. small and medium- sized businesses малый и средний бизнес

5. aim (at) v нацеливать, направлять

6. rising prosperity растущее благосостояние

7. decade n десятилетие

8. service sector сектор услуг

9. shipping n перевозка грузов

10. at a high pace быстрыми темпами

Ex. 22. Answer the following questions:

1. What is the British economy based on?

2. How does the government see its role in the UK economy?

3. What is the policy pursued (проводимая) by the government aimed at?

4. Did Gross Domestic Product (GDP) rise considerably in 2002?

5. What sector of economy has grown particularly fast over the recent decades?

6. How do figures for manufacturing in 2002 compare with (сравнивать) those in 1950?

7. What trend (тенденция) has been registered in employment over this period?

8. Does the Government control inflation?

9. Is Britain attractive to investors?

Ex. 23. Read and translate the text.

The Role of Government in the Economy

In every economy the work of different firms has to be coordinated. In a market economy this coordination is achieved by means of markets. Nevertheless the debate over the role for Government in a market economy is continuing and the issue is being widely discussed at the present time. An economy based on free enterprise is generally characterized by private ownership and initiative, with a relative absence of government involvement. However, government intervention has been found necessary from time to time to ensure that economic opportunities are fair, to dampen inflation and to stimulate growth.

Government plays a big role in the American free enterprise system. Federal, state and local governments tax, regulate, and support business.

In the United States there are agencies to regulate safety, health, environment, transport, communication, trade, labour relations, and finances. Regulation ensures that business serves the best interests of the people as whole.

Some industries – nuclear power, for instance – have been regulated more closely over the last few years than ever before. In others the trend has been observed towards deregulation or reduction of administrative burden on the economy.

The U.S. economy has a tradition of government intervention for specific economic purposes – including controlling inflation, limiting monopoly, protecting the consumer, providing for the poor. The government also affects the economy by controlling the money supply and the use of credit. The aim is a balanced budget.

Vocabulary Notes:

1. private ownership частная собственность, право на частную

собственность

2. involvement n вовлеченность

3. intervention n вмешательство (в экономику)

4. fair adj справедливый

5. dampen v сдерживать, замедлять

6. state adj амер. относящийся к отдельному штату

7. agency ведомство

8. labour relations трудовые отношения

9. deregulation n уменьшение государственного регули-

рования

10. burden n бремя

11. specific adj конкретный

12. money supply денежная масса

Ex. 24. Answer the following questions:

1. How is economic coordination achieved in a market economy?

2. What debate is continuing?

3. What characterizes an economy based on free enterprise?

4. What role does government play in the American free enterprise system?

5. What is regulated closely in the American economy?

6. What trend, as to the role of government, has been observed in the U.S. in recent years?

7. How does the U.S. government affect the economy?