Bookkeeping as a Part of Accounting Cycle

Positions in the field of accounting may be divided into several areas. Two general classifications are public and private accounting. Public accountants are those who serve general public and collect professional fees for their work, much as doctors and lawyers do. Their work includes auditing, income tax planning and preparation, and management consulting. Those public accountants who have met certain profes­sional requirements are designated as Certified Public Accountants (CPAs). Private accountants work for a single business, such as a local department store, the MacDonald's restaurant chain, or the Eastman Kodak Company. Charitable organizations, educational institutions, and government agencies also employ private ac­countants.

The chief accounting officer usually has the title of controller, treasurer, or chief financial officer. Whatever the title, this person usually carries the status of vice-president. For management of any company to be efficient extensive and accu­rate information concerning receipts and payments, assets and liabilities, the depre­ciation of assets and other data about company status are required. In general account­ing and bookkeeping mean identifying, measuring, recording economic informa­tion about any business, bookkeeping being considered as the preliminary stage and a part of the larger field of accounting. The task of a bookkeeper is to ensure the re­cord-keeping aspect of accounting and therefore to provide the data to which ac­counting principles are applied in the preparation of financial statements.

Accounting principles determine which financial events and transactions should be recorded in the -bookkeeper's books. Record keeping of companies is based on a double-entry system, due to which each transaction is recorded on the basis of its dual impact on the company's financial position. To make a complete bookkeeping record of every transaction in a journal, one should consider interrelated aspects of every transaction and entries must be made in different accounts to keep the ins (receipts) and outs (payments) balanced. A typical account is known to have two sides: the items on the left side are called debits, while the items on the right side are credits.

Thus, double entry bookkeeping doesn't mean that the same transaction is en­tered twice, it means that the same amount of money is always debited to one account and credited to another account, each record having its own effect on the whole finan­cial structure of the company. Certain accounts are increased with debits and de­creased with credits, while other accounts are increased with credits and decreased with debits. The double entry system of bookkeeping enables every company to determine at any time the value of each item that is owned.

Vocabulary:

Requirements-потребность

Single-единственный

Employer-служащий

Expenses-издержки

Additional-добавочный

Ensure-следовать

Overhed-верхний

Increased-увеличиваться

Enables-возможности

1. Connect words in word combination:

Accounting Stage

Public Statement

Pleminary Cycle

Financial Accounting

2. Continue sentences:

1) Positions in the field of accounting may be divided into.

2) Those public accountants who have met certain professional requirements are designated as...

3) Accounting principles determine which financial events and transactions should be recorded in the...

4)... system of bookkeeping enables every company.
5. Translate from English to Russian:

1) The task of a bookkeeping

2) A typical account have two sides

3) Public accounts are a small fraction of all accounts

4. Are the following statements true or false?

1) Whatever the title the chief bookkeeper usually carries the status of vice-president

2) Double entry bookkeeping means that the same amount of money is not al­ways debited to one account and credited to another account.

3) A typical account has 1 side-credit.

5. Look through the text and find all sentences in the Active Voice.

6. Answer the questions:

1) In what areas divided accounting?

2) What titles usually has the chief accounting officer?

3) What a main task for a bookkeeper?