Match the English words and word combinations with the Ukrainian equivalents.

TEXT 5

Read the article and look carefully at each line. There are mistakes in the content (not grammar) of each statement. Correct them and state the true variants.

1. An audit is a procedure under which the insurance of a company or individual are closely inspected to make sure that it is accurate.

2. There are three primary types of an audit: internal, independent and external audits.

3. An independent audit is held by a large accounting department of the company concerned.

4. An internal audit is carried out by a neutral third party.

5. Depending on the type of audit, it should be assumed that the procedure will be performed with or without bias towards the inspected company.

6. When an inaccuracy is revealed by an independent audit, it is addressed by the auditors in the final speech made to the company.

7. The examples of errors that usually cannot be repaired by inspected companies include failure to pay payroll taxes, or misuse of pension plans.

WHAT IS AN AUDIT?

An audit is an accounting procedure under which the financial records of a company or individual are closely inspected to make sure that they are accurate. This review keeps a company honest and also reassures employees and investors as to the financial status of the organization. There are two primary types: internal and independent audits.

Regardless as to the type of audit, it should be assumed that the procedure will be performed without bias. In the case of an internal audit, this can be difficult, because it is carried out by the accounting staff of the company concerned. Generally, this type can only successfully be carried out by a large accounting department, because auditors cannot audit records to which they contributed. Internal audits are usually carried out on a regular basis by large companies to ensure that their finances are in order, and if the company is publicly traded, the reports are available for inspection by stockholders.

An independent or external audit is carried out by a neutral third party, such as a professional accounting firm which specializes in the procedure. In both cases, all of the financial records of a company including ledgers, bank statements, payroll, tax information, internal financial reports, official published reports, accounts payable, and accounts receivable, will be examined. During the audit, these records are closely inspected for any discrepancies, and if an inaccuracy is uncovered, it must be addressed and repaired.

Commonly, an audit will reveal a simple accounting mistake. In other cases, more sinister issues may come to light. Sometimes the review will reveal that a company is on the brink of bankruptcy due to gross misuse of funds by high ranking personnel, as was the case with many American corporations in the early twenty first century such as Enron and WorldCom.

When an inaccuracy is revealed by an independent audit, it is addressed by the auditors in the final report made to the company. In some cases, the review will be ordered by an external organization, such as the Securities and Exchange Commission, which will also receive a copy of the report. The issue must be repaired by the company. Common examples of repairable errors are failure to pay payroll taxes to the Internal Revenue Service, or misuse of pension plans. If the errors cannot be fixed because the company does not have the funds to address them, the company may face bankruptcy proceedings, and major creditors will be reimbursed after the company's assets are liquidated by an independent firm.

2. Find the English equivalents for the following words and word combinations in the text:

1. Упередженість

2. Внутрішня ревізія

3. Бухгалтерський персонал

4. Компанія, акції якої вільно обертаються на ринку цінних паперів

5. Акціонери

6. Зовнішня ревізія

7. Аудиторська фірма

8. Бухгалтерська книга

9. Виписка із банківського рахунку

10. Відомість заробітної плати

11. Кредиторська заборгованість

12.  Дебіторська заборгованість

13. Розходження

14. Неточність

15.  Банкрутство

16. Заключний звіт

17. Пенсійна угода

18. Провадження у справах про банкрутство

19. Відшкодовувати

20. Активи компанії

TEXT 6

Read the article and choose the most suitable heading from the list A- G for each part of the text. There is one extra heading which you do not need to use. There is an example at the beginning (0).

A) concept definition;

B) the danger of the government takeover;

C) when east meets west;

D) nationalization is a rare occurrence;

E) the way out of trouble;

F) losses-gains correlation;

G) is nationalization always a left-wing phenomenon?

WHAT IS NATIONALIZATION?

(0) A  When a private industry or a business held at a city or state level is taken over by the national government, this is called nationalization.

(1) _______There are numerous examples of nationalization in the history of most countries. For example the US Postal Service is a nationalized industry, run completely by the US government. Any financial losses of this industry are the losses of the government, and its people, and any financial gains would profit the US government.

(2)_______There is a strong pull to always consider nationalization as a construct of socialism. It is true that socialist governments may control or nationalize the majority of industries, and they may do so whether or not these industries and their private owners are happy about it. On the other hand, sometimes nationalization is supported by people or political groups that would define themselves a strongly anti-socialist and pro-capitalist. For instance, President George W. Bush’s decision to nationalize the airport security industries after the attacks on 11 September 2001 was viewed as a method for streamlining and improving quality control on security checks at airports. Few people felt this decision represented a threat to capitalism.

(3)_______Numerous reasons can exist as to why a central government would choose to or be forced to nationalize an industry. In the previous example, the main goal was quality control and increased security. Sometimes an industry will fail without nationalization, as proved the case with the American automobile industry and few large banks in the late 2000s. The US actions taken to support these failing entities was not total or complete nationalization, and the goal remains to quickly hand these organizations back to private control, which is called denationalization or privatization.

(4)_______In countries that are predominantly capitalist in orientation, there are still usually some nationalized businesses. These could include public schools, health services, postal services, military services, and others. Decision to nationalize other businesses may be based on unusual circumstances, like economic failure or times of war. Most governments must pay private owners of an entity a great deal of money in order to ask them to give over control to the government. It is usually not profitable to do this, and a government may only step in if the need is great or if the price is cheap.

(5)_______The fear of what nationalization is comes in when a government takes over an industry without permission or leave from its private owners, or by coercing private owners through various means to give up their ownership. Seizing assets and companies, and especially getting control of any profitable resources grants power. However, nationalization means that a government must support any failing industries too. Instead, those that usually come under national control are the ones that are most profitable, and this typically means industries that have valuable resources like oil.

2. Answer the following questions:

1. What is nationalization?

2. What notion is opposite to nationalization? Give its definition.

3. Can nationalization be always considered as a construct of socialism? Why/Why not?

4. What are possible reasons for nationalization?

5. Give examples of nationalized industries.

6. Under what circumstances can nationalization be considered as a negative occurrence?

TEXT 7

Read the article. Six sentences have been removed from the text. Choose from the sentences A-G the one which fits the gap 1-6. There is an extra sentence which you do not need. There is an example at the beginning (0).

A.It is an item reported on a company’s income statement that describes pre-tax earnings.

B. For instance, imagine company ABC reports $9.7 million US Dollars (USD) in annual net income.

C. PBT helps to minimize a tax variable that may be unique from company to company, in order to focus the analysis on operating profitability as a singular measure of performance.

D.The investor sees that the latter is a more efficient company with less tax risk, and thus a better investment.

E. It can also be calculated by subtracting operating expense, depreciation, and interest expense from the gross revenue.

F. An investor might prefer the company ABC unless he compares profits before tax.

G.Changes in costs of sales, employee salaries and research and development costs impact a company’s profitability independently of taxes.

WHAT IS PROFIT BEFORE TAX?

Profit before tax, also known as PBT, is a measure of corporate profitability. (0)  A  An investor might be interested in comparing the profit of two companies before tax that are in the same industry but subjected to two different tax laws in order to determine their relative efficiency.

An income statement captures a company’s profitability over a period of time, typically a month, a quarter or a year. In accounting, net income, or the bottom line of an income statement, is defined as a company’s total revenues minus total expenses during the given time period. Profit before tax, which is sometimes called earnings before tax, is the second to last line in an income statement.

Profit before tax can be calculated from the bottom up or from the top down. If the bottom line is known, net income minus income tax is the PBT. (1)_____

Calculating a company’s earnings before tax can provide useful information about its operational efficiency. Unless tax laws shift dramatically because of a change in politics or relocation, a company’s income tax rate should remain proportional to its earnings. (2)_______ A company’s efforts to reign in costs despite weakened sales can be analyzed by comparing its profit before tax over a period of time.

An interested investor might also want to compare the profits of two competing companies before tax if they are under different tax jurisdictions to ensure that apples are being compared with apples when choosing an investment. (3)_______ Company XYZ may initially seem less attractive in comparison, reporting only $9.5 million USD in net income.

 (4)_________. Company XYZ might be a smoothly run operation with a corporate tax rate of 7%. Company ABC might be taking advantage of a temporary 3% tax incentive that will expire in a month, and the tax rate will return to 18%. The investor compares the PBT of companies, $10 million USD for company ABC, and $10.2 for company XYZ. (5)________.