II. Read and translate the text.

In more basic terms, accounting is the measurement and reporting to various users (inside and outside the organization) financial information regarding the economic activities of the firm. Accounting can be divided into two major categories: managerial accounting and financial accounting. An accountant working for an organization is likely to do both.

· Managerial accounting

Managerial accounting is used to provide information and analyses to managers within the organization to assist them in decision-making. Managerial accounting is concerned with measuring and reporting costs of production, marketing and other function (cost accounting); preparing budgets (planning); checking whether or not units are staying within their budgets (controlling); and designing strategies to minimize taxes (tax accounting).

· Financial accounting

Financial accounting differs from managerial accounting because the information and analyses are for people outside of the organization. This information goes to owners and prospective owners, creditors, customers, suppliers, financial analysts so that they can evaluate how well the business works. These external users are interested in organization’s profits, it`s ability to pay its bills, and other financial information. These reports are called financial statements, they relate to the financial position, liquidity (that is, ability to convert to cash), and profitably of an enterprise. Various quarterly reports keep the users more current.

III. Answer the following questions:

1. What is managerial accounting?

2. What is financial accounting?

3. Can you explain the difference between managerial and financial accounting?

IV. Retell the text.

METHODS OF ACCOUNTING

<== попередня сторінка	\|	наступна сторінка ==>
II. Read and translate the text.	\|	I. Read and translate the text.

Не знайшли потрібну інформацію? Скористайтесь пошуком google:

Генерація сторінки за: 0.005 сек.