Key terms

Accounting – бухгалтерський облік – the process of identifying, measuring, recording, and communicating economic transactions.

Bookkeeping – бухгалтерія, рахівництво – the recording of all financial transactions undertaken by an individual or organization.

Accounting system – система бухгалтерського обліку – the system designed to record the accounting transactions and events of a business and account for them in a way that complies with its policies and procedures. The basic elements of the accounting system are concerned with the collecting, recording, evaluating, and reporting transactions and events.

Accountant – бухгалтер-експерт, кваліфікований бухгалтер – one that keeps, audits, and inspects the financial records of individuals or business concerns and prepares financial and tax reports.

Bookkeeper – бухгалтер – a person employed to keep the books of account for a business. A bookkeeper is responsible for ensuring that all transactions are recorded in the correct daybook, suppliers ledger, customer ledger and general ledger. The bookkeeper brings the books to the trial balance stage. An accountant may prepare the profit and loss statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

Business entity – суб’єкт господарювання – the unit for which accounting records are maintained and for which financial statements are prepared.

Controller – головний бухгалтер – the top managerial and financial accountant. The controller supervises the accounting department and assists management in interpreting and utilizing managerial accounting information.

Creditors – кредитори – those to whom an organization or an individual owes money. The balance on the creditors’ ledger control account is included in the balance sheet.

Financial accounting – фінансовий облік – the branch of accounting concerned with classifying, measuring, and recording the transactions of a business. Financial accounting is primarily concerned with providing a true and fair view of the activities of a business to parties external to it.

Managerial accounting – управлінський облік – the branch of accounting which is mainly concerned with providing information helpful to managers running a business.

Internal users – внутрішні користувачі – the whole staff of the company who is in charge of planning, maintaining, and supervising its financial activity.

External users – зовнішні користувачі – those groups of individuals who are not directly concerned with the day to day operations of the entity, but who are indirectly related to it (owners, lenders, suppliers, potential investors and creditors, employees, taxing authorities etc.).

Governmental accounting – облік у державних установах – used by government agencies, usually unprofitable organizations, but which also need to record financial information.

Private accountant – штатний бухгалтер – an accountant who works in private industry and is employed by a single enterprise.

Public accountant – незалежний бухгалтер – an independent professional person who offers accounting services to clients for a fee.