UNIT 14

I. Read and translate the text using the dictionary:

ACCOUNTING DATA PROCESSING METHODS

Accounting performs measurement and communication functions to facilitate the operation of modern business and our economic system. It collects and reports data to reveal economic activity, effect administrative control and improve business planning. It serves society, by providing useful information for a variety of objectives, and management, by developing more efficient means of operating a business. The main problems of recording economic activity are related to the business problems involved in asset acquisition, utilization, and disposition. The problems of communication, however, are tied to the need for accounting reports to transmit economic information for decision-making purposes. These two accounting functions are combined in the processing of economic data.

While there used to be a tendency to think of accounting as having only one method of processing data – the manually operated double-entry mechanism – accounting actually encompasses several. All accounting data processing methods, however, seem to be related to the concept of a transaction, even though it is variously defined. The discrete concept of a transaction provides a basis for measuring the flow of economic activity, which is a continuous process. Under the traditional manual recording process, this transaction concept has permitted the past activities of an accounting entity to be recorded by a set of somewhat standardized accounting procedures.

REVISION TEST

VOCABULARY

II. Choose the most suitable word or phrase:

1. If you buy the shares of the company, you are sure to have a very good return on your ………………...

a) exchange b) capital c) deposit

2. Listed companies, whose ………………. are sold on the stock exchange, have to present their accounts to the public in an annual report.

a) bonds b) shares c) financial accounts

3. The only practical way to …………… money is to issue more shares.

a) borrow b) raise c) rise

4. The bank …………….interest rates by 2per cent.

a) has risen b) has raised c) has arisen

5. ………………… are what a business owes to those outside the business.

a) assets b)liabilities c)costs

III. Match words from list A with words from list B that have a similar meaning:

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