FORMS OF ACCOUNTING

Every factory, collective farm, institution or organization carries out primary recording or current registration of economic phenomena that are either the necessary conditions for or the final results of the activity of these units. The data are then grouped and summed up in one way or another and their totals recorded in special registration documents (register books, reports, cards etc.). This systematic recording of economic and related phenomena or processes and their classification and summary is called accounting.

Thus, by accounting we mean a systematic recording of social phenomena and processes taking place continuously, their classification and summary with a view to using the accounting data to control and direct these phenomena and processes.

Three forms of accounting are to be distinguished according to their methods and specific aims:

1. operative technical recording;

2. book-keeping;

3. statistics.

The main aim of operative technical recording is the prompt supply of technical production information required at a particular enterprise or organization. This type of information is essential for control over current production technology, for an appraisal of the quality of current output, efficiency of equipment.

In other words, all phenomena are registered relating to the organization of production and development of technology.

Book-keeping is specific in that it groups data on the resources of economic units in two ways: on the one hand according to their composition and distribution (fixed assets, raw and other materials, fuel, finished products, financial resources etc.) and on the other hand, according to the source of their origin (basic fund, depreciation, and other special funds, budget financing, bank credits, debts etc.). In other words the same resources are regarded from two points of view, that of their composition and that of their origin.

Book-keeping is also specific in that it registers everything in money terms. This assessment is necessary not only for summing up all kinds of registered facts but also for calculating cost-price payments, profitability, etc.

Book-keeping is an instrument of imposing strict economy in consuming material, labour and financial resources,

The job of a book-keeper is to control the expedient investment of economic resources, to register available resources and their movement, to speed up the rate of their turnover and ensure the observance of financial, credit and accounting regulations.

NOTES:

primary recording - первичная регистрация, запись;

current registration - текущая регистрация, запись;

the data - данные;

to sum up - суммировать, складывать;

totals - сумма, итог;

to mean(meant) - иметь в виду, значить, означать;

summary - сводка, суммарность;

with a view to - с целью, с намерением;

to distinguish - различать, отличать, выделять;

operative technical recording - оперативная специальная запись;

prompt = quick - быстрый;

essential - важный, существенный, необходимый;

related phenomena - связанные между собой явления;

to appraise - оценивать;

appraisal - оценка;

relating to - имеющий отношение, связанный;

fixed assets - постоянное имущество, активы, средства;

finished products - готовая продукция;

depreciation - изнашивание, амортизация;

composition - состав, структура;

to assess - оценивать;

assessment - оценка;

cost-price - себестоимость;

instrument of imposing strict economy - инструмент, возлагающий строгую экономию;

the expedient investment - соответствующий выгодный вклад, инвестирование;

to speed up the rate of turnover - ускорять темп роста оборота;

regulations - правила, инструкция;

observance - соблюдение.

Exercise 2. Find the sentence in the text about the job of a book-keeper.

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