Exercise 1. Select from the box and complete the following sentences with the appropriate type of accounting.

financial, managerial, cost, tax, throughput, lean, resource consumption

 

1) _____ accounting allows finding effective ways of minimizing production costs.

2) _____ accounting provides managers with information needed in an organization’s optimization.

3) _____ accounting allows government agencies and other outside users to evaluate a company’s past performance. At this accounting tax payments are not transferred to the budget.

4) _____ accounting is associated with financial, intended for external users. At this accounting tax payments are transferred to the budget.

5) _____ accounting is dealing with calculating costs that are assigned to a product or service.

6) _____ accounting is basically dealing with confidential financial reports for the exclusive use of top management within an organization.

7) _____ accounting facilitates the introduction of modern production processes.

Exercise 2. Complete the phrases with the words in the box.

accounting reports, cash flows, financial information, financial position, financial performance, shareholders, financial statements

 

1) Accounting reports are _____ which show _____ a firm at a given time, or over a stated period, resulting from its business transactions and operations.

2) _____ are the scorecard by which a business's financial health is measured.

3) Business owners, investors, suppliers, banks, and government agencies use a business's accounting reporting to understand the financial position, _____, and _____ of a business.

4) Accountancy is the process of communicating _____ about a business entity to users such as _____ and managers.

 

Exercise 3. Select the correct option to complete sentences.

1. The purpose of accounting is to show …

a) an income statement and a balance sheet

b) the overall financial structure

c) a firm’s financial conditions

 

2. The most important part of accountant’s work is to prepare …

a) an Income statement and a balance sheet

b) the overall financial structure of the firm

c) the operating efficiency of the firm

 

3. Ratio analysis is done to know …

a) an income statement and a balance sheet

b) the overall financial structure of the firm

c) the efficiency and profitability of the firm’s operation

 

4. We regularly prepare two types of records:

a) ratio analyses and firm’s financial structure

b) income statement and balance sheet

c) assets and liabilities

 

Exercise 4. Match the words on the left with their definitions on the right.

1. market	a. to establish or set up, e.g. a company
2. salary	b. the amount of money received during a period of time
3. industry	c. a person who buys goods or services
4. employ	d. a company which is owned by another company
5. price	e. fixed compensation for work paid to a person regularly
6. develop	f. a place where goods are sold
7. found	g. to provide work
8. customer	h. a specific branch of manufacture and trade
9. income	i. the sum of money for which goods may be sold
10. subsidiary	j. to grow into a more advanced state

Exercise 5. Check your understanding of the words and phrases in the list by matching them with their definitions.

mortgage, merger, takeover, stocks/shares, liabilities, lucrative, assets, national income

 

a) profitable (describes an activity that makes profit)

b) anything of value owned by a business; loans granted by a bank

c) a loan to buy property

d) when two formerly separate companies join together

e) money that a company will have to pay off one day; bank deposits

f) money earned by a country’ s people in a particular period

g) securities representing part of a company’s capital

h) when the company gains control of another one by buying its stocks

Exercise 6.

a) Use a word or phrase from each box to make common word combinations (you can use words from the left box more than once).

1) provide	a) international accounting standards
2) draw	b) cash flow controlling decisions
3) develop	c) profitability of business
4) take	d) precise evaluations of assets
5) assessment of	e) quarterly reports
6) prepare	f) conclusions regarding efficiency
7) comply with	g) new financial strategies

b) Compose your own sentences using the above word combinations.

Exercise 7. Give a brief written description of differences between major types of accounting.

UNIT V

CENTRAL BANKING

Warm up

1. What organization is responsible for the collection of state budget revenues in Russia?

2. Can you name any authorities responsible for maintaining the stability of monetary systems in Europe?

3. Do you think that central banks of developed countries are independent from government fiscal policies in their decisions?

 

Section A

Reading 1