Цій статті більше 3-х років. Українське законодавство складне і мінливе, тож на даний момент редакція не гарантує її 100% актуальність. У разі сумнівів скористайтесь пошуком, щоб читати свіжіші статті і консультації, або зверніться за допомогою до нашого ШІ-консультанта.
1. TASK: Insert the appropriate word in the text below:
Advantage - Affect - Amount - Borrow - Earn - Enter
Incur - Line - Record - Requirе - Subscription - Equal
Double Entry Bookkeeping
At the heart of financial accounting is the system known as double entry bookkeeping. Each financial transaction that a company makes is __________ by using this system.
The term "double entry" means that every transaction __________ at least two accounts. For example, if a company __________ $50,000 from its bank, the company's Cash account increases, and the company's Notes Payable account increases. Double entry also means that one of the accounts must have an amount __________ as a debit, and one of the accounts must have an amount entered as a credit. For any given transaction, the debit __________ must equal the credit amount.
The __________ of double entry accounting is this: at any given time, the balance of a company's asset accounts will __________ the balance of its liability and stockholders' (or owner's) equity accounts.
Financial accounting is __________ to follow the accrual basis of accounting (as opposed to the "cash basis" of accounting). Under the accrual basis, revenues are reported when they are __________, not when the money is received. Similarly, expenses are reported when they are __________, not when they are paid. For example, although a magazine publisher receives a $24 check from a customer for an annual __________, the publisher reports as revenue a monthly amount of $2 (one-twelfth of the annual subscription amount). In the same way, it reports its property tax expense each month as one-twelfth of the annual property tax bill.
By following the accrual basis of accounting, a company's profitability, assets, liabilities and other financial information is more in __________ with economic reality.
2. CHECK YOUR SPEAKING
|
Advantage |
[ ədˈvɑːntɪdʒ ] |
перевага |
|
Affect |
[ əˈfekt ] |
впливати |
|
Amount |
[ əˈmaʊnt ] |
сума |
|
Borrow |
[ ˈbɒrəʊ ] |
заборгувати |
|
Earn |
[ ɜːn ] |
заробляти |
|
Enter |
[ ˈentə(r) ] |
входити |
|
Equal |
[ ˈiːkwəl ] |
рівно |
|
Incur |
[ ɪnˈkɜːr ] |
нести (витрати) |
|
Line |
[ laɪn ] |
напрямок |
|
Record |
[ ˈrekɔːd ] |
реєструвати |
|
Requirе |
[ rɪˈkwaɪə(r) ] |
вимагати |
|
Subscription |
[ səbˈskrɪp.ʃən ] |
підписка |
3. SEE CORRECT ANSWER
Double Entry Bookkeeping
At the heart of financial accounting is the system known as double entry bookkeeping. Each financial transaction that a company makes is recorded by using this system.
The term "double entry" means that every transaction affects at least two accounts. For example, if a company borrows $50,000 from its bank, the company's Cash account increases, and the company's Notes Payable account increases. Double entry also means that one of the accounts must have an amount entered as a debit, and one of the accounts must have an amount entered as a credit. For any given transaction, the debit amount must equal the credit amount.
The advantage of double entry accounting is this: at any given time, the balance of a company's asset accounts will equal the balance of its liability and stockholders' (or owner's) equity accounts.
Financial accounting is required to follow the accrual basis of accounting (as opposed to the "cash basis" of accounting). Under the accrual basis, revenues are reported when they are earned, not when the money is received. Similarly, expenses are reported when they are incurred, not when they are paid. For example, although a magazine publisher receives a $24 check from a customer for an annual subscription, the publisher reports as revenue a monthly amount of $2 (one-twelfth of the annual subscription amount). In the same way, it reports its property tax expense each month as one-twelfth of the annual property tax bill.By following the accrual basis of accounting, a company's profitability, assets, liabilities and other financialinformation is more in line with economic reality.
Цей та багато інших цікавих матеріалів Ви знайдете
в підручнику “Practical Financial English”
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