Accountancy as a profession

Date: 2015-10-07; view: 552.

Why study Accounting?

Text A

Considering the wide range of questions that are answered by referring to accounting information, perhaps every educated person in our society should be regarded as a user of accounting information. If you are to use accounting information effectively, you must have some understanding of how the data are gathered and the figures are put together. You must appreciate the limitations of the data and the extent to which portions are based on estimates rather than on precise measurement. And, you must understand accounting terms and concepts. Needless to say, this knowledge is gained in a study of accounting.

For the information provided in financial statements to be useful, it must be capable of being understood by investors, creditors and other users. Investors, creditors and other users are assumed to have a reasonable understanding of business and economic activities and together with a willingness to study the information with reasonable diligence.

Another reason to study accounting is to make it one's lifework. A career in accounting can be very interesting and highly rewarding.

Over the past half century, accountancy as a profession has attained a stature comparability with that of law or medicine. Most provinces license public accountants just as they license doctors and lawyers. The licensing helps ensure a high standard of professional service. Only individuals who have passed a rigorous examination of their accounting and related knowledge, met other education and experience requirements, and have received a license may designate themselves as public accountants.

There are a number of accounting organizations providing education and professional training. These include the provincial institutes of Chartered Accountants, the Certified General Accountants' Association, and the Society of Management Accountants (SMA). Successful completion of the prescribed courses of instruction and practical experience lead to the following appellations:

Chartered Accountant (CA)

Certified General Accountant (CGA)

Certified Management Accountant (CMA)

An activity of the three accounting organizations that has shaped accounting thought has been the education and the publication program. Each has an extensive educational program and has maintained the publication of journals which enjoy wide readership.

In the past decade reliance on post-secondary accounting education has become a significant part of the educational process and complements the extensive correspondence and lecture programs of both the Certified General Accountants' Association, and the Society of Management Accountants – The Institute of Chartered Accountants requires a university degree with specified course content.

Accountancy is the fastest growing of the professions. The growth is in response to the expansion and complexity of the economy, the increasing involvement of the accountant in the process of management decision making, and a growing number of financial reporting activities.

I. Key terms:

II. Vocabulary notes:

III. Answer the following questions:

1. What are the reasons for studying accounting?

2. What does the study of accounting give for every educated person?

3. When must the information in financial statements be used by investors, creditors and other users?

4. What can be said about the career in accounting?

5. What kind of a stature has accountancy as a profession attained over the past half century?

6. What accounting organizations provide educational and professional training?

7. What kinds of accountants can be named?

8. Who may designate themselves as public accountants?

9. Who has shaped accounting thought?

10. What has become a significant part of the educational program?

11. Why is accounting considered to be the fastest growing of the professions?

12. Why is the accounting growth observed?

13. What can be said about the accounting programs?

IV. Translate the following words and word combinations:

Посилатись на; освічена людина; користувач; збирати дані; основуватись на оцінках; точні виміри; терміни та концепції; фінансові звіти; розумна старанність; видавати ліцензію; професія бухгалтера; стан; сфера діяльності; суспільний бухгалтер; суворі (жорсткі) екзамени; дипломований суспільний бухгалтер; справа життя; бухгалтерська думка; програма навчання; надія; у відповідь на; самий швидкий ріст; залучення у процес; прийняття рішень по управлінню.

V. Memorize the following terms and their Ukrainian equivalents:

VI. Fill in the blanks from the words below. Translate the sentences into Ukrainian:

License (2); service; public accountancy; examinations; reliance; response; economy; organizations; training; standard; comparable; data; education (2); user; figures; rewarding; complements.

1. Over the past half century _____ as a profession has attained a stature _____ with that of law or medicine.

2. Most provinces _____ public accountants as they _____ doctors and lawyers.

3. The licensing helps ensure a high _____ of professional _____.

4. Only individuals who have passed _____ rigorous _____ may designate themselves as accountants.

5. There are a number of accounting _____ providing _____ and professional _____.

6. Every educated person in our society should be regarded as a _____ of accounting information.

7. You must have some understanding of how the _____ are gathered and the _____ are put together.

8. A career in accounting can be very interesting and highly _____.

9. In the past decade _____ on post-secondary _____ has become a significant part of the educational process and _____ the extensive correspondence and lecture programs.

10. The growth of accountancy is in ____ to the expansion and complexity of the _____.

VII. Substitute the underlined words for their synonyms given below:

Maintained; appreciate; precise; shaped; extent; wide; attained; provinces; helps; rigorous; standard; must; organizations; understanding; stature; put together; requirements.

1. If you are to use accounting information effectively, you must have some idea of how the data gathered and combined.

2. You must assess the limitations of the data and the size to which portions are based on estimates rather than on exact measurements.

3. An activity of three businesses that had formed accounting thought has been the education and publication program. Each has an extensive educational program and has supported the publication journals, which enjoy broad readership.

4. Over the past half century, accountancy as a profession, has achieved a position comparable with that of law and medicine.

5. Most spheres of activity license public accountants just as they license doctors and lawyers.

6. The licensing aids to ensure a high level of professional service.

7. Only individuals who have passed a strict examination of their accounting and related knowledge satisfied other education and experience demands, and have received a license may designate themselves as public accountants.

VIII. How is the idea of impersonality expressed in the following sentences? Translate the sentences into Ukrainian:

1. Considering the wide range of questions that are answered by referring to accounting information, every educated person should be regarded as a user of accounting information.

2. You must have some understanding of how the data are gathered and put together.

3. The knowledge of understanding accounting terms and concepts is gained in a study of accounting.

4. Investors, creditors and other users are assumed to have a reasonable understanding of business and economic activity and accounting.

5. The requirements for financial accountability were discussed to appear because of the division of bank management and bank possession.

6. Hierarchy of rules was being developed for the purpose of accounting transparency for stockholders.

7. The financial statements are composed annually for giving stockholders information about the effectiveness of their investments.

IX. Read and translate the following text: