ACCOUNTING PRINCIPLES AND CONCEPTS

 An accounting system in a given country is one of the key elements of the economic system. It is determined to a significant extent by the level and direction of the economic system's development.

 The most important theoretical concept of the Anglo-American accounting may be summed up as follows: the subject of accounting is the calculation of the financial results of an economic entity's business activity.

 Accounting is used to describe the transactions entered into by all kinds of organizations.

 Accounting can be divided into three phases: capture, processing and communication of financial information.

 The first phase, the process of capturing financial information and recording it, is called book-keeping. Accounting extends far beyond the actual making of records. It includes their analysis and interpretation, it shows the relationship between the financial results and events, which have created them.

 Accounting can show the managers or owners of a business whether or not the business is operating at a profit, whether or not the business will be able to meet the commitments as they fall due.

 Accounting is based on the accounting equation, which states that a firm's assets must equal its liabilities plus its owners' equity.

 Assets and liabilities, profits and losses are listed in financial statements. The two main types of financial statements are the balance sheet and the income statement (profit and loss account).

 The balance sheet lists a firm's assets, liabilities and owner's equity at a point of time.

 Changes in the balance sheet are made according to the principle of double-entry book-keeping. This principle states that each transaction must be recorded on the balance sheet as two separate entries so that the totals of each side will always equal one another, and that this will always be true no matter; how many transactions are entered into.

 Balance sheets are drawn up periodically: monthly, quarterly, half-yearly, annually.

 There is an account for every asset, every liability and capital. Accounts can be prepared either on a cash or accrual basis. Each account should be shown on a separate page.

 The double entry system divides each page into two halves. The left-hand side is called the debit side, while the right-hand side is called the credit side.

 The balance sheet shows a lot of useful financial information, but it does not show everything. A firm's sales, costs, and profits for a given period are shown in an income statement.

 

Prices, discounts

R: We have carefully studied your prices stated in the offer and found the prices are very high. Can you explain the matter?

C: Yes, certainly, I can. We've increased the prices because of the rise in the cost of labor and materials.

R: We've got offers from competitive firms and there is no mention in them of any rise in prices of labor and materials.

C: I'll look into the matter and see what I can do. I'm afraid, however, that we shan't be able to make a considerable discount from the price, as all the prices and discounts were very carefully calculated and checked by our Sales Department.

R: You will understand, of course, that the order will be placed with the firm which will offer the best prices and terms.

C: I see. I'll let you know tomorrow what discount from the total price we could make.

R: Please also take into consideration the big size of our order.

 C: Yes, of course.

 R: Thanks

Decline in sales, prices

Mr. Cloud (C), Export Manager, Minitex & Co., Inc. USA. Mr. Roders (R), Dy. Manager, Sales Dept., Roots & Co., Ltd, France.

R: You're probably received the telex I sent you from Bern on Monday, haven't you?

C: Yes, we have. We were expecting you the day before yesterday.

 R: I'm sorry. I was detained in Bern on business. C: How is business in general?

 R: I must say that we aren't quite satisfied with our present sales. We usually got regular large orders from a number of our customers in France, but lately we have been doing less business with them.

 C: I'm surprised to hear it. How do you account for this decline in the amount of your orders? We don't feel here at all that the demand for Electronic Components is weaker than before. On the contrary, we are getting more enquiries for them than ever.

 R: I wouldn't say that there is a big decrease in the volume of our business. I hope you are not going to raise your prices this year.

С: As a matter of fact, our prices are now about 10 percent higher than last year.

 R: What are your prices now?

C: Well. We've prepared a detailed quotation according to your enquiry. You may study the prices . Here is our quotation. (Mr. Cloud hands over the quotation to Mr. Roders.)

 R: Thank you.

В). 1. Она была опечалена, потому что она провалила проверочную работу.

2. Вы работаете по субботам?

3. Я надеюсь, ей это понравится.

4. Он переехал в новую квартиру.

5. Наши руки должны быть вымыты перед едой.

6. Я уверен, вы сдадите ваш экзамен по вождению к сентябрю.

7. Что он сказал об экономике США?

8. Она нервничала целый вечер.

9. Я жду звонка.

10. Я надеюсь видеться с вами с нова.

ВАРИАНТ 5

A)  

Claims

A machine delivered by a British company was damaged in transit. Here is a conversation between Mr. Brown and Smirnov which took place after the damage had been repaired.

Smir nov: We've got to discuss another problem with this same unlucky machine TC-2.     

Brown: What's wrong this time? We've just repaired the machine. All the traces of the damage have been removed. Do you mean to say there is some payment problem?

Smir nov: No problem here. You'll be duly paid by insurance company. But now we`ve got another headache.

Brown: What`s troubling you?

Smir nov: After our engineers examined and tested the ma chine repaired by you they discovered that it had some defects for which the manufacturers are responsible. We have a report of a qualified commission to prove it. Here it is. We believe that you are obliged either to eliminate the defects or replace the machine.

Brown: Now I see the whole situation. First of all, I'd like to study the report of the commission and refer it to the experts. I'll give you our final reply in two days.

Smir nov: Don't feel too discouraged about it, Mr. Brown. Things might have been even worse. It's a good thing that your packing had been found in con formity with the requirements. Otherwise you would have had to pay for the repair of the damage that occurred in transit as well.

Brown: Yes, of course. You want to say, Mr. Smirnov, that every cloud has a silver lining. Well, see you again soon.

The railway station

At the enquiry office

After Mr. Stanley has made arrangements for a visit to the manufacturing plant, which Borisov and Kozin wanted to visit, he went to Euston Station to book tickets.

Stanley: Good morning.

Clerk: Good morning, sir.

Stanley: I've found out from this timetable that there are several trains to Glasgow daily.

Clerk: Yes, quite so.

Stanley: Is there a second-class sleeper on the overnight express which leaves at 10.15 p.m.?

Clerk: Yes, that train has sleeping accommodation.

Stanley: What time does the train get to Glasgow?

Clerk: It's due to arrive in Glasgow at 6.30 a.m. It usually runs on time.

Getting on the train

Borisov and Kozin hired a taxi and arrive at the station 30 minutes before the train's departure. Mr. Stanley was already waiting for them.

Borisov: Good evening, Mr. Stanley.

Stanley: Good evening.

Borisov: Which platform is our train leaving from?

Stanley: Platform 2. This way, please; here is our carriage. Put your suitcase on the luggage rack here.

Borisov: All right. Is there a buffet car on the train, Mr. Stanley? I'd like to have a snack.

Stanley: I was just about to tell you, that there was no buffet car on the train and we would have to do without supper. But I'm sure we can get a snack at a cafeteria in the station.

Borisov: I'd like to but don't you think we can miss the train?

Stanley: Oh, no. It won't take us long. It took them about 15 minutes to have a snack at the cafeteria and they caught the train when it was about to start.

Business loans

Business loans are available from major banks and their subsidiaries. They include the following types of loans and many more:

1. Business overdrafts to provide working capital.

2. Small business loans from 1,000 Pounds Sterling for 1-5 years at a fixed rate of interest.

3. Business loans for over 15,000 Pounds Sterling and up to 30 years. These loans provide finance to buy assets.

4. Business mortgages providing finance of up to 90% of the value of premises for their refurbishment.

5. Premium interest accounts for deposits at 14 days' notice, or on payment of a small charge, on demand.

6. Business call accounts with slightly lower rates of interest.

7. Fixed term deposits from 7 days to one year. The term depends on the amount borrowed. The interest rates are also fixed.

8. Factoring, available from the bank's factoring subsidiary, e.g., Midland Bank's Griffin Factors. The factoring subsidiary buys the book debts of the firm - in other words the sales ledgers. It pays up to 80% of the face value of sales invoices within two or three days after they are issued. The factoring subsidiary or factor ensures that the invoices are eventually paid, then pays the balance to the customer. Factoring began in the USA textile trade and is particularly suitable for consumer goods. It is available for export as well as home markets.

9..Leasing, available from the bank's finance house subsidiaries and from the bank's specialist leasing subsidiaries, such as Lloyd's Leasing Limited. Leasing is available for items of capital equipment, ships, jumbo jets, oil rigs, etc. At the end of the lease, ownership passes to the customer who has been responsible for the maintenance of the item leased, throughout.

10. Franchising which allows to establish a business without special investment and resources normally required. Franchising means granting a license by one person (the franchiser) to another (the franchisee). It entitles the franchisee to trade under the trademark or trade name of the franchiser. The bank's specialists assist with evaluation and give guidance on financial structuring.

Дата: 2019-02-25, просмотров: 148.