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Historical Cost and Unit of Measure
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Assets and liabilities are recorded in the accounting records at their historical cost. For example, if we purchase land for $1 million with a $1 million mortgage, the land is entered as an asset at $1 million and the mortgage note payable is entered as a liability at $1 million. These values remain in the accounting records for some time.
The unit of measure which is used in financial statements of businesses is the nominal dollar, or the dollar from the exchange transaction unadjusted for inflation or deflation. As a result, one company may have land, which was purchased in 1930, with a book value of $100 000 and another company may have a similar piece of property, which was bought in 1998, with a book value of $1 million.
1) At what cost are assets and liabilities recorded in the financial statements?
2) For how long is the historical value recorded?
3) What is the nominal dollar?
4) What does the book value depend on?
Socializing
Telephone conversations
| What to say | What to expect |
| Person calling Hello, this is Helen Ling. My name’s Daniel White. Good morning. It’s Anna Dimova. | Person called Hello, Helen Ling. Can I help you? Accounts Division of Nokia Corp. Speaking. |
| Asking if someone is in Can I speak to Mr. Richter, please? Hello, is Mrs Somova there? Good morning. Could you put me through to Margaret Simpson, please? Can I speak to someone in Financial and Information Systems, please? | Hold the line, please. Hold on, please, I’ll see. Yes, I’ll just get her/him. Yes, just a moment. Yes, I’m putting you through. |
| Person who is wanted is not there I’m afraid she/he isn’t in at the moment. Would you like to leave a message? Sorry, he’s/she’s not in the office. Would you like to call him later? She’s away for a few days/ can I give her a message? He’s out of the office this week, I’m afraid. You can contact her/him on her mobile. The number is 8 926 133 47 | |
| When will the person be in? What time will she be back? Will he be back later today? Can I contact her tomorrow? When would be a good time to call again? | She should be back by 4 o’clock. We’re expecting him at around 11.00. Yes, please. Why don’t you try in a couple of hours? |
Разыграйте мини-диалоги.
Позвоните в компанию. Представьтесь и попросите кого-либо к телефону. Проиграйте различные ситуации: данного человека нет на месте (он уехал надолго, ненадолго), он работает, и вас соединяют с ним.
Выражение благодарности
Thank you. You are welcome.
Thank you very much.
Thanks. (менее официально) It’s my pleasure.
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I’m much obliged to you. (очень официально)
Прочитайте и воспроизведите мини-диалоги.
- Here’s your bag.
- Thank you.
- Have a good time!
- Thanks.
- Thank you for your help.
- You’re welcome.
- Thank you for the lift.
- It’s my pleasure.
Revision
- Употребите вместо прочерков подходящие слова из рамки.
| idea, sides, date, assets, activities, balance, picture, liabilities, investors |
1 The balance sheet shows the financial _____ as it stood on one particular day, For example, December 31, 2011. The balance sheet is divided into two _____: on the left are shown _____; on the right are shown _____ and owners’ equity. Both sides are always in _____.
While the balance sheet shows the fundamental strength of the company on a given _____, the operating statement may be of greater interest to _____ because it shows the result of operating _____ for the whole year. It is a valuable guide, because it gives an _____ how the company will do in the future.
Letter to Shareholders
| the shareholders, is produced, optimistic, the financial statements, are based on |
A company’s annual report is made every year. Only ____ are produced by the accountants. Much of an annual report ____ by managers and discusses many topics, some of them ____ accounting figures, some are not.
The letter to ____ is part of the annual report. It begins with a statement such as “I am pleased to report…” and is signed by the president. The letter usually contains an ____ message.
- Заполните пропуски предлогами, где необходимо.
1) Journal entries are transferred ____ various accounts.
2) The company owes $150 million ____ foreign creditors.
3) Both sides of the balance sheet are always ____ balance.
4) What will be left ____ the owners?
5) This operation may result ____ a loss.
6) The balance sheet reports ____ the financial position ____ a certain date.
7) The profit and loss account shows income ____ a definite period such as a year or a calendar quarter.
8) It’s necessary to subtract expenses ____ the total income.
9) Any claim ____ the property is a liability.
10) Current assets are listed ____ the balance sheet ____ order of their liquidity.
11) Cash is the major resource ____ paying bills.
12) They purchased their goods ____ credit.
13) This money is owed ____ customers of the business.
14) The rent was paid ____ advance.
15) Equity is what a business owes ____ its shareholders.
- Заполните пропуски артиклями, где необходимо.
1) It’s important to know whether ____ owners are increasing their investment, or ____ business is working at a loss.
2) The balance sheet gives an idea what ____ company owns and what it owes on ____ certain date.
3) The balance sheet reports on ____ financial position as of ____ end of ____ year.
4) The operating statement is like ____ movie because it shows ____ work of ____ company.
5) The income statement shows income over ____ specified period such as ____ year or ____ calendar quarter.
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6) ____ same period is mentioned in this report.
7) Bookkeepers list any property as ____ asset
8) Fixed assets are sometimes called ____ plant assets.
9) ____ warehouse, ____ truck, or ____ machine are examples of fixed assets.
10) Current assets also include ____ inventories and ____ raw materials.
11) Current assets are listed in ____ balance sheet in order of their liquidity.
12) Cash is ____ first resource for paying ____ bills.
13) Liabilities are called current if they are paid within ____ current accounting year.
14) Equity is what ____ business owes both to ____ shareholders and ____ owners.
- Дайте развёрнутые ответы на вопросы.
1) What answers does the balance sheet give to its readers?
2) What difficulties does the principle of the historical cost involve?
3) What are financial statements based on?
4) What are the principle components of financial statements?
5) What does the balance sheet reflect?
6) What does the income statement show?
7) What assets are recorded as current?
8) In what order are current assets listed on the balance sheet?
9) How are inventories listed?
10) What assets are recorded as fixed?
11) What is the idea of the historic cost of fixed assets?
12) How are liabilities classified?
13) What is the accounting equation?
Unit 3
Texts: Text A: The Accounting Cycle
Text B
Grammar: Passive Infinitive
Modal Verbs (should, must, to have to, to be to)
Indefinite Pronouns (some, any, no)
Word-building: префикс re + …
Word study: It takes time (to do smth)
to make sure
Socializing: Asking for information
Wordlist
| 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. | accounting cycle to imagine throughout throughout the life to occur to appear to repay ledger syn. book account to post account title payroll account account number chart of accounts | учётный цикл воображать, представлять себе на протяжении всего времени; на всём пространстве в течение всего срока происходить, случаться появляться выплатить бух. книга делать проводку наименование счёта счёт заработной платы номер счёта план счетов бух. учёта | 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 26. 27. 28. 29. 30. 31. | accounting period to verify accuracy to make sure to draw up the balance to be in balance trial balance error digit to move over place correct incorrect locating later effort to avoid smth posting | отчётный период проверять точность, правильность убедиться, удостовериться сводить баланс балансироваться, равняться пробный баланс ошибка цифра отодвигать разряд правильный, верный неправильный, неверный нахождение, обнаружение позднее усилие избегать чего-л. проводка |
Word-Building
| re +write= rewrite re +pay= repay |
Глаголы с префиксом re- означают либо повторное действие (rewrite – переписывать), либо обратное действие (repay – возвратить сумму).
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- Образуйте новые слова и переведите их на русский язык.
re + adjust = re +organize =
re + arrange = re + build =
re + check = re + use =
re +sell = re +tell =
- Закончите предложения, используя глаголы, данные в скобках.
1) We have to … the money we borrowed last month. (to pay)
2) If you want to be sure, you have … the entries carefully. (to check)
3) The goods which a company sells, the customers may later … to other companies. (to sell)
4) I have to … my visits to make them all in 2 days. (to arrange)
5) You can’t have so many corrections in the document. You have … (to write)
6) You shouldn’t throw away plastic packets. You may … them. (to use)
Grammar Revision
Passive Infinitive
| to be + Past Participle (3-я форма глагола) |
- Переведите на русский язык пассивный инфинитив неправильных глаголов.
to bear to be born
to deal to be dealt
to do to be done
to draw to be drawn
to hold to be held
to keep to be kept
to lend to be lent
to lose to be lost
to see to be seen
to sell to be sold
to meet to be met
to spend to be spent
to take to be taken
to tell to be told
to write to be written
Пассивный инфинитив часто употребляется после модальных глаголов.
This machine can be purchased on credit.
This transaction must be recorded in the journal.
- Выберите правильный вариант.
1) A lot of money (can be saved, can save) on this transaction.
2) Transactions (must enter, must be entered) in chronological order.
3) A debit (must be entered, must enter) in the left-hand column.
4) A credit (must enter, must be entered) in the right-hand column.
5) The division which (must be made, must make) will involve many difficulties.
6) The decision which we (must be made, must make) will involve a lot of problems.
7) We (can be purchased, can purchase) this equipment on credit.
- Переведите на английский язык.
1) Эти деньги надо перевести на другой счёт.
2) Дебет всегда вноситься в левую колонку.
3) Сделки должны регистрироваться в журнале.
4) Эти товары могут быть проданы в кредит.
5) Все сделки должны вноситься в хронологическом порядке.
6) Какие товары могут импортироваться в Россию?
7) Какие ошибки нужно избегать в бухгалтерском учёте?
Modal Verbs
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