UNIT THREE
READING
ACCOUNTING
Accounting is
the process of recording, classifying, analyzing, summarizing, reporting and
interpreting the financial information of an organization for use in decision
making. Accountants record, report and interpret financial information that
describes the status and operations of a company aids in decision making. Like
statistics, accounting is the language of business. It provides information to
both people inside and outside the company.
Inside the
company, managers are the major users of accounting information. Accounting
data are used by managers to help them plan and control business operations.
Outside the company, stockholders, bankers, potential investors, and
government, etc. are interested to know the financial position of the company.
For instance, bankers can base their decision on granting a loan to the company
by examining it’s financial statements. Government needs to know the financial
data of the company for tax assessment.
Accounting is
not the same as bookkeeping. Bookkeeping is chiefly the clerical phase of
accounting. Bookkeepers are responsible for the systematic recording of a
company’s financial transactions. They provide data to be used by accountants.
Accounting covers a much wider scope. Accountants are responsible for
developing systems to classify and summarize transactions and for interpreting
financial statements. Accountants are decision makers, while bookkeepers are
trained in mostly mechanical task of record keeping. Accountants may hold
positions as executives in many large companies and top-level government
offices.
There are three
important financial statements prepared by accountants. The first one is the
balance sheet that shows the financial position of a company of a particular date.
The second one is the income statement or profit and loss statement that shows
the profitability of unprofitability of a company during a period of time. The
third one is the capital statement that reports the equity or money invested by
owners. It is also called the owner’s equity. Accountants usually prepare
financial statements once a year.
A.
Answer
the following questions briefly
1.
What
is accounting?
Accounting is the process of recording, classifying,
analyzing, summarizing, reporting and interpreting the financial information of
an organization for use in decision making.
2.
Who
prepares financial statement?
Accountant.
3.
Is
accounting the language of business?
Yes, it is.
4.
What
does a balance sheet contain?
It contains about financial position of a company of a
particular date.
5.
Who
uses accounting data?
Accounting data are used by managers, company,
stockholders, bankers, potential investors, and government, etc.
6.
What
are the differences between a bookkeeper and an accountant?
Accountants are decision makers, while bookkeepers are
trained in mostly mechanical task of record keeping.
7.
Do
bookkeepers and accountants have the same function?
No, they don’t.
8.
How
many financial statements are prepared by accountants?
Three financial statements. The first one is the
balance sheet, the second one is the income statement, the third one is the
capital statement.
9.
Is
accounting the same as bookkeeping?
No, it’s not.
10. Are accountants responsible for the systematic
recording of a company’s financial transactions?
No, they aren’t.
B.
Exercise
1
Choose
the correct form of be (am, is, are)
to fill the blanks.
1.
Julia
are absent from class today.
2.
We
are both students.
3.
The
weather today is good.
4.
The
sky is clear.
5.
Henry
and John are brothers.
6.
The
children are happy.
7.
She
and I are cousins.
8.
Mina
is a business woman.
9.
The
police on the corner is busy with the
traffic.
10. The workers are very busy.
C.
Exercise
2
Give
the correct form of the present tense for the verbs in parentheses.
1.
She
reads the newspaper every day.
2.
We
come to school by bus.
3.
Helen
works very hard.
4.
The
dog chases the cat all around the house.
5.
Gene
generally sits at this desk.
6.
Pat
goes there twice a week.
7.
Herbert
does the work of two people.
8.
George
always tries to do the same thing.
9.
The
teacher wishes to speak to you.
10. Mr. Walker teaches English and
Mathematics.
11. We watch television
every night.
12. The sun rises in the east
and sets in the west.
13. The father watches the
children in the park.
14. She kisses her daughter
before she leaves home.
15. I often catch cold.
16. Helen also catches cold very
often.
17. She does all the work.
18. Mary carries the books
in a briefcase every day.
19. He likes studying
accounting.
20. The man has two new cars.
D.
Exercise
3
Change
the subjects of the sentences below to she and use the correct form of the
verb.
She starts
work at 09.30 and leaves at 17.30. She has an
hour for lunch. She types for about one and a half hours every
morning and about an hour in the afternoon.
She does
the filing about half an hour a day and spend the same amount of time
talking shorthand. Making tea or coffee takes about a quarter of an hour and she does it twice a day. She spends
about an hour and a half on the phone. The rest of time she spends
doing other things such as talking to people, opening the mail, reading
newspaper etc.
E.
Exercise
4
Put
the verbs in the brackets into the correct form.
James smith (be) is my
name. I (work) work in the main office of a big company. Twenty people (work) work in
that office everyday. Mr. Steward (be) is my
boss. He (work) works very hard. Almost everyone (work) works hard.
Of course a few people (not
work) aren’t work hard.
Mr. Steward (have) has a
private office. He also (have)
has a secretary. Miss Green (be) is his
secretary. She (help) helps Mr. Steward. She doesn’t help me. I (not have) do not have a
private office, But I (have)
have my own secretary. My secretary (be) is Mary
Brown.
Mr. Steward (meet) meets all
of the important visitors. I (not
meet) do not meet visitors. Miss Green (not meet) does not meet visitors
either, Mr. Steward (talk) talks to visitors. I occasionally (talk) talk 10 visitors too. But I (not send) do not send usually talk to
visitors.
Mr Steward (write) writes many
letters every day. He (send)
sends many letters to customers I (send) send letters
to other compantes. But I (not
send) do not send letters to customers.
I often (study) study statistics.
Then I (write) write reports for Mr Steward. He (study) studies the
reports carefully. I (get)
get the statistics from my assistants. I (have) have two
assistants. Susan and Sandra. They (help) help me
very much. They (not write)
do not write
letters. They (collect) collect information from other people. Then they (give) give the
information to my secretary. She (collect)
collects information from other people too. Then she (give) gives the
information to me.
My secretary (not write) do not write reports
But she (write) writes my letters for me. She also (open) opens my mail. She (read) reads the
mail carefully. She (give) gives me the important letters.
She
(not give) do not give me the other letters. My secretary (answer) answers the
other letters.
F.
Exercise
5
Write
do or does in the blank space in each sentence.
1. Do the students study hard every day?
2.
Does Mr Brown go to his office every day?
3.
Do you
want cream and sugar in your coffee?
4.
Do the
children qo to bed very early?
5.
Does that
girl come from Dominica?
6.
Do you
know that German student?
7.
Does Miss
Green prefer coffee or tea?
8.
Do your
English lessons seem very difficult?
9.
Do you
have a good english dictionary?
10. Does Mr Howard teach English or Science?
11. Do the Jhonsons watch televiston every night?
12. Do Jhonson and Brett work in the same office?
13. Does Henny write reports for her boss every day?
14. Do those two women understand that lesson?
15. Does an accountant prepare financial statement every
month?
G.
Exercise
1
Fill
in the blank with a/an or leave the
space empty.
1. Jim
goes everywhere by bike. He hasn’t got a car.
2.
Ann was listening to music when i
arrived.
3.
We went to a very
nice restaurant last weekend.
4.
I clean my teeth with a toothpaste.
5.
I use a toothbrush
to clean my teeth.
6.
Can you tell me if there’s a bank near here?
7.
My brother works for an
insurance company in london.
8.
I don’t like violence.
9.
We need petrol. I hope we come to a petrol station soon.
10. Liz
doesn’t usually wear jewelry but yesterday she was wearing a necklace.
H.
Exercise
2
Put
in a/an, some, a little where
necessary. If no words is necessary, leave the space empty.
1.
I’ve
seen some good films recently.
2.
What’s wrong with you? Have you got a headache?
3.
I know a lot of people. Most of them are
students.
4.
When i was a child, I used to be
very shy.
5.
Would you like to be an actor?
6.
Do you collect stamps?
7.
What a beautiful garden!
8.
a little birds,
for example penguin, cannot fly.
9.
I’ve been walking for three hours. I’ve
got sore feet.
10. I
don’t feel very well this morning. I’ve got a sore throat.
11. Those
are nice shoes. Where did you get them?
12. I’m
going shopping. I want to buy new shoes.
13. You
need a visa to visit some countries.
14. Jane
is a teacher. Her parents were teachers too.
15. Do
you enjoy going to concerts?
16. When
we got to the city centre a little shops were
still open.
17. I
don’t believe him. He is a liar. He’s always
telling lies.
18. He
is a famous accountant in this city.
19. Bring
me paint and a good brush.
20. Can
you lend me some money?
