ESP(TACN):

Accounting and Auditing

 UNIT 1: Course introduction
3. Optional References
1. Mackenzie, I. (2008) English for the Financial Sector Learning, Cambridge
University Press
2. Johnson, C. (2000) Banking and Finance – Business English, Longman
3. Mackenzie, I. (1997) Financial English, Thompson, Heinle
4. Business School – University of Bedfordshire (2008) Core Program – Level 2,
Pearson Costom Publishing
5. Emmerson, P. (2007) Business English Handbook: Advanced, MacMillan
6. Sweeney, S. (2002) Test Your Professional English Management, Penguin
7. MacKenzie, I. (2002) English for Business Studies: A Course for Business
Studies and Economics Students, Cambridge University Press
 UNIT 1: Course introduction
3. Optional References
1. Mackenzie, I. (2008) English for the Financial Sector Learning, Cambridge
University Press
2. Johnson, C. (2000) Banking and Finance – Business English, Longman
3. Mackenzie, I. (1997) Financial English, Thompson, Heinle
4. Business School – University of Bedfordshire (2008) Core Program – Level 2,
Pearson Costom Publishing
5. Emmerson, P. (2007) Business English Handbook: Advanced, MacMillan
6. Sweeney, S. (2002) Test Your Professional English Management, Penguin
7. MacKenzie, I. (2002) English for Business Studies: A Course for Business
Studies and Economics Students, Cambridge University Press
 UNIT 1: Course introduction
4.Websites
1.http://www.myenglishlab.com/courses-market-leader.html
2.http://www.ngllife.com/student-zone
3.http://www.MyELT.heinle.com
4.http://www.ngl.cengage.com
5.http://www.cengageasia.com
6.https://www.etsglobal.org/Tests-Preparation/The-TOEIC-
Tests/TOEIC-Listening-Reading-Test
7.http://learnenglish.britishcouncil.org/en/
 UNIT 1: Course introduction
Suggested Topics for presentation
1. Making a career in Accounting
2. Bookkeeping
3. The principle and standards of accounting
4. Financial statements
5. The accounting equation
6. The accounting equation
7. Depreciation and Amortization
8. Management accounting
9. Cost accounting
10.International accounting
11.Taxes
12.Auditing
13.The future of accounting
 UNIT 1: Course introduction
GROUP PRESENTATION GUIDELINES
In this assignment, you are asked to select a topic related to one of the topics given in the
text book and prepare a presentation to the class. Here are some guidelines for your
presentation:
1. Form the maximum number of groups with five -six members and choose a leader for
your group.
2. One lesson before the presentation, the leader must send the teacher the name of the
presenters and the outline of the presentation.
3. Your presentation should be limited to thirty minutes (5 minutes for each presenter),
excluding five minutes for questions. Your presentation will be timed by your instructor.
3. It is important that you meet as a group to discuss the issue and to rehearse and time
your oral presentation. The rehearsal is very critical to your group's grade. In the past,
groups have been taken by surprise by the contents of one or more of their speakers or by
the quality of the presentation. A full rehearsal is the best way to polish your group's
presentation.
UNIT 1: INTRODUCTION TO ACCOUNTING
1. Atingccoun
2. Bopinokkeeg
3. Aingccount symste
4. Acntcounta
5. Brookkeepe
6. usinessB etynti
7. Coerntroll
8. Crorsedit
9. leredg
10. Fialnanci accngounti
UNIT 1: INTRODUCTION TO ACCOUNTING
1. Accounting
2. Bookkeeping
3. Accounting system
4. Accountant
5. Bookkeeper
6. Business entity
7. Controller
8. Creditors
9. ledger
10. Financial accounting
UNIT 1: INTRODUCTION TO ACCOUNTING
1. yB lla actscoun
2. Inaltern ursse
3. Exaltern usser
4. Goentavernml acgcountin
5. Pteriva acantcount
6. ublic P accntounta
7. ingaccount msyste
8. myonetar tserm
9. Acingcount essionProf
10. orkW of Acctsountan
11. Accncyounta
12. nfionprot orgasnization
UNIT 1: INTRODUCTION TO ACCOUNTING
1. By all accounts
2. Internal users
3. External users:
4. Governmental accounting
5. Private accountant
6. Public accountant
7. accounting system
8. monetary terms
9. Accounting Professional
10. Work of Accountant
11. Accountancy
12. Non-profit organization
UNIT 1: INTRODUCTION TO ACCOUNTING
Warm-up
• What is accounting?
• State the Purpose of Accounting
• Distinguish Accounting and Bookkeeping
• Distinguish Accounting Profession and the Work of Accountants
UNIT 1: INTRODUCTION TO ACCOUNTING
Warm-up
• What is accounting?
Accounting is the process of identifying, measuring, and interpreting
financial activity when preparing a household budget, balancing your
cheque book, preparing your income tax return, or running a company,
you are working with accounting concepts and information.
• State the Purpose of Accounting
The purpose of accounting is to provide financial information about an
economic entity.
UNIT 1: INTRODUCTION TO ACCOUNTING
Warm-up
• Distinguish Accounting and Bookkeeping
• Accounting includes the design of accounting systems, preparation of
financial statements, audits, cost studies, development of forecasts,
income tax work, computer applications to accounting processes, and
the analysis and interpretation of accounting information as an aid to
making business decisions.
• Bookkeeping means the recording of transactions, the record-making
phase of accounting. The recording of transactions tends to be
mechanical and repetitive. A person might become a reasonably
proficient bookkeeper in a few weeks or months; however, to become a
professional accountant requires several years of study and experience.
UNIT 1: INTRODUCTION TO ACCOUNTING
C. DISCUSSION
1. In broad and general terms, what is the purpose of accounting?
2. Why is the knowledge of accounting terms and concepts useful to persons other than
professional accountants?
3. What does the term accounting system mean? What are the main functions of the
accounting system?
4. What are the means of creating accounting information?
5. What does the accounting process involve?
6. What two main groups do users of financial information fall into?
7. What are the main branches of accounting?
8. What are the distinctions between accounting and bookkeeping?
9 What is the principal function of public accountants? What other services are commonly
rendered by public accounting firms?
10. What is the scope of private accounting?
11. What is the purpose of governmental accounting?
 UNIT 1: INTRODUCTION TO ACCOUNTING
1. Purpose of Accounting: Accounting aims to systematically record, summarize, analyze, and
report financial transactions and information about an entity. It helps in making informed
business decisions, assessing financial health, and communicating financial information to
stakeholders.
2. Usefulness of Accounting Knowledge: Understanding accounting terms and concepts benefits
individuals and entities beyond professional accountants. It helps business owners make
informed financial decisions, investors assess the financial health of companies, creditors
evaluate creditworthiness, managers analyze performance, and individuals manage personal
finances effectively.
3. Accounting System: An accounting system refers to the structured process of recording,
summarizing, and reporting financial transactions of an organization. Its main functions include
recording financial data, classifying transactions, summarizing information into financial
statements, and interpreting the results for decision-making.
4. Creation of Accounting Information: Accounting information is created through various means
like recording transactions in journals and ledgers, analyzing financial data, preparing financial
statements (income statement, balance sheet, cash flow statement), and generating reports.
UNIT 1: INTRODUCTION TO ACCOUNTING
1. Accounting Process: The accounting process involves identifying, recording,
classifying, summarizing, analyzing, and interpreting financial transactions to
prepare financial statements and reports that reflect the financial position and
performance of an entity.
2. Users of Financial Information: Users can be broadly categorized into two
groups: internal users (management, employees) who use financial information
for decision-making within the organization, and external users (investors,
creditors, government agencies) who rely on financial information for making
decisions outside the organization.
3. Branches of Accounting: Main branches include Financial Accounting (focused on
external financial reporting), Managerial Accounting (providing information for
internal decision-making), Tax Accounting (dealing with tax-related matters), and
Auditing (examining and ensuring accuracy in financial records).
4. Distinctions between Accounting and Bookkeeping: Bookkeeping involves
recording financial transactions, while accounting encompasses a broader
spectrum including interpreting, analyzing, and summarizing financial
information to generate reports for decision-making.
UNIT 1: INTRODUCTION TO ACCOUNTING
1. Function of Public Accountants: Public accountants primarily provide
auditing, tax advisory, and consulting services to various clients. They
ensure compliance with regulations, offer financial advice, and perform
audits to ensure accuracy in financial reporting.
2. Scope of Private Accounting: Private accounting involves working within a
specific organization's finance or accounting department, managing
internal financial matters, preparing financial statements, budgeting, and
providing financial analysis and reports to aid in decision-making.
3. Purpose of Governmental Accounting: Governmental accounting involves
the recording, summarizing, and reporting of financial transactions of
government entities. Its purpose is to track public funds, ensure
accountability, and provide transparency in the use of taxpayer money.
 UNIT 1: INTRODUCTION TO ACCOUNTING
I. Practice: Fill in the missing words in the sentences below. You will
need to use each word more than once.
account; accounts; accountant; accounting; accountancy.
•
1 Can you check that the figures have been entered correctly into the bank account?
2. He’s at university studying __________.
3. The management of the company has not yet decided on their ___________ policies.
4. A bookkeeper writes details of financial transactions in the ________.
5. Most people in the profession read __________ magazines and journals in order to stay
informed.
6. She’s been working as an ________ with this firm for several years now.
1. Account 2. accounting/accountancy
3. Accounting 4. accounts
5. accountancy 6. accountant
UNIT 1: INTRODUCTION TO ACCOUNTING
account; accounts; accountant; accounting;
accountancy.

7. The directors of the company approve the__________ at the end of the ________
year.
8. The chief ____________ has completed the draft __________ for this year.
9. Each branch maintains its own full __________ system.
10. They have opened an __________ for the consignment to Glasgow.
11.__________ is really not an exact science.
12. A business manager needs some ______________ knowledge in order to understand
what he reads in the company ____________.
7.accounts – accounting 8. accountant – accounts
9. accounting 10. account
11. Accounting/Accountancy
12. Accountancy/accounting – accounts
 UNIT 1: INTRODUCTION TO ACCOUNTING
II. Guess the meaning of the phrases in bold in the sentences (1-10) below.
Choose the correct definition (a-j) on the right.
1. How do you account for the sudden fall in the stock value? 1- E a) people say
2. Agents buy and sell goods on their own accounts. 2-g b) report
3. They gave the solicitor a detailed account of the customer’s business deals in the c) under no
last year. 3-b
circumstances
4. The draft accounts had to be adjusted on account of the discovery that a major d) consider
debtor had gone bankrupt. 4-h
5. Raw materials account for 30% of the manufacturing cost. 5-j e) explain
6. They are regular customers in this shop and are able to buy on account. 6-i f) big customers
7. On no account should these figures be released before the board meeting. 7-c g) for themselves
8. When making decisions for the future the managers have to take this year’s poor h) because of
8-d
performance into account.
9. By all accounts, they will benefit greatly if the deal goes through. 9-a i) on credit
10. The advertising company has won two new accounts in South Africa. 10-f j) represent
 UNIT 1: INTRODUCTION TO ACCOUNTING
II.
1. Accountants a) the work or skill of keeping account books or systematic records of money
1- c
transactions (distinguished from accounting).
2. Accounting b) the phase of accounting that is concerned with providing information to managers
2-e
for use in planning and controlling operations and in decision-making.
3. Bookkeeping c) persons who are responsible for collecting, recording, and communicating
3-a financial information and the preparation of analyses for decision-making purposes.
4. A business entity d) the phase of accounting that is concerned with providing information to the
stockholders and others who are outside of an organization for use in evaluating
4-f
operations and current financial condition.
5. Controller e) the theory and system of setting up, maintaining, and auditing the books of the
firm; the art of analyzing the financial position and operating results of a business
5-g
house from a study of its sales, purchases, overhead, etc.
6. Financial accounting f) the unit for which accounting records are maintained and for which financial
6-d statements are prepared.
7. Managerial g) an organization’s chief accounting officer, who is responsible for establishing and
accounting 7-b maintaining the organization’s accounting system.
 UNIT 1: INTRODUCTION TO ACCOUNTING
III. Fill in the blanks with the proper words and phrases given below
non-profit organizations; accounting records; accounting information; owners;
accounting training; making decisions; business decisions; bankruptcy

Managers and owners of both large and small profit-making organizations use
accounting information
______ (1) to answer important questions. Are profits sufficient? Should
selling prices be increased or decreased? How many workers should be
employed? etc.
Persons responsible for non-profit organizations also need accounting
non-profit organizations
information as the basis for _____ making decisions (2). ______ (3), such as
churches, social clubs, and city governments must keep spending within the
money available.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
III. Fill in the blanks with the proper words and phrases given below
non-profit organizations; accounting records; accounting information; owners;
accounting training; making decisions; business decisions; bankruptcy
owners;
Business managers and _____ (4) need good financial information to make good
business decisions. Orderly records of a business' financial activities are called ______
accounting records
bankruptcy
(5). Inaccurate accounting records often contribute to business failure and ______
(6). Failure to understand accounting information can result in poor ______
business decisions (7)
for either profit or non-profit businesses and organizations.accounting
______ training (8) helps
managers and owners make better business decisions.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
IV. Fill in each blank with the correct word
1. This is name for buildings machinery, money in the bank and money owned by customers:
assets
_________________
depreciation
2. The loss of value of the things in number one: _________________
3. Money which is borrowed: _________________
loan
4. The extra money a company or person pays for borrowing money: ________________
interest
5. The total sum of money which is supplied by the owners of a company to set it up:
_________________
capital
6. Cash or goods which the owner takes from the company for his own private use:
drawings
_________________
stocks/shares
7. These are bought by people wishing to invest in the company: _________________
8. The extra amount which is paid for a company above the value of its assets:
goodwill
_________________
acquisition
9. The purchase of another company: _________________
10. An official examination of the accounts: _________________
audit
7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
IV. Fill in each blank with the correct word
budget
11. A financial plan for the future: _________________
12. A statement of the financial position the company: _________________
balance sheet
ledgers
13. The official books for keeping accounts: _________________
14. A reduction in the price which is offered to customers: _________________
discount
15. This company has supplied goods but has not received any money for them yet:
creditor
_________________
stocks
16. Goods which has the company has available to sell: _________________
17. Customers who have received goods but not paid for them yet: _________________
debtors
18. This is the name of the difference between the credit and debit side of a account:
balance
_________________
profit
19. Companies make this when they sell their goods for more than it costs: ___________
20. Companies make this when they sell their goods for less than it costs: ____________
loss

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Gap-filling
The text delves into the multifaceted realm of accounting, b----------1 down its significance
and applications in various d------------2. It underscores that accounting, far from being c-------
----------------3 to professionals, is ubiquitous in daily life, from m---------------4 personal
finances to running businesses.
It portrays accounting as the l-------------5 of business, evolving alongside societal changes
and technology. Emphasizing a--------------6, it highlights the pivotal role of accounting across
sectors: individuals managing personal t-------------6, businesses being accountable to s--------
---------7, governments controlling r-------------8, and decision-making at various levels relying
on accounting concepts.
The purpose of accounting is to provide financial information about e------------9, aiding
managerial decisions and serving e---------------10 stakeholders' information needs. To create
this information, an accounting system t----------11 and summarizes business activities,
capturing m---------------12 transactions and organizing them into reports for d------------13.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Gap-filling 1
The text delves into the multifaceted realm of accounting, breaking down its significance
and applications in various domains. It underscores that accounting, far from being confined
to professionals, is ubiquitous in daily life, from managing personal finances to running
businesses.
It portrays accounting as the language of business, evolving alongside societal changes and
technology. Emphasizing accountability, it highlights the pivotal role of accounting across
sectors: individuals managing personal taxes, businesses being accountable to stakeholders,
governments controlling resources, and decision-making at various levels relying on
accounting concepts.
The purpose of accounting is to provide financial information about entities, aiding
managerial decisions and serving external stakeholders' information needs. To create this
information, an accounting system tracks and summarizes business activities, capturing
monetary transactions and organizing them into reports for decision-making.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Gap-filling 2
Users of accounting information, classified into external and i----------1, utilize financial
statements and reports for d-------------2 purposes. The text also delineates the d----------3
between financial and m-------------4 accounting, catering to different user needs.
Furthermore, it distinguishes accounting from b------------5, highlighting accounting's broader
scope involving system design, financial s--------------6 preparation, analysis, and d---------------
--7 support.
Regarding career prospects, the text outlines three primary areas: p----------8 accounting
(providing services to clients), private a------------9 (working within a single enterprise), and g-
-----------------10 accounting (handling financial aspects in government agencies or non-profit
institutions).
Overall, the text paints a comprehensive picture of accounting, d----------------11 its pervasive
presence, diverse applications, and c------------12 role across sectors, making it essential
knowledge for individuals and e------------13 alike.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Find out the correct terms
1-------------------- The process of identifying, measuring, and interpreting financial activity.
2-------------------- Information about the financial position and operating results of an entity.
3--------------------- The methods used by a business to keep records of financial activities and
translate them into reports.
4 ----------------- Completed actions expressed in monetary terms, recorded in accounting.
5------------------- Organizing transactions and events into related groups or categories.
6------------------- Groups not directly involved in day-to-day operations but have an interest in
the entity.
7--------------------- Management personnel responsible for planning and controlling
operations.
8-------------------- Providing financial statements to external users for decision-making.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Find out the correct terms
1. Accounting: The process of identifying, measuring, and interpreting financial activity.
2. Financial Information: Information about the financial position and operating results of
an entity.
3. Accounting System: The methods used by a business to keep records of financial
activities and translate them into reports.
4. Transactions: Completed actions expressed in monetary terms, recorded in accounting.
5. Classification: Organizing transactions and events into related groups or categories.
6. External Users: Groups not directly involved in day-to-day operations but have an
interest in the entity.
7. Internal Users: Management personnel responsible for planning and controlling
operations.
8. Financial Accounting: Providing financial statements to external users for decision-
making.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Find out the correct terms
1. ---------------------. Supplementing financial accounting information for internal users in making operating
decisions.
2. ----------------- Recording transactions, a phase of accounting that is mechanical and repetitive.
3. -------------------- Independent professionals offering accounting services like audits and tax services for a
fee.
4. --------------------- Accountants employed by a single enterprise, aiding in controlling business operations.
5. ----------------------- Accounting in government agencies and non-profit institutions, involving budgeting and
auditing.
6. --------------------- The initial phase of accounting involving the systematic entry of financial transactions into
records.
7. -------------------------- The process of condensing and presenting classified financial information into
comprehensive accounting reports.
8. -------------------- Analyzing and explaining accounting information to aid in making informed business
decisions or comparisons between entities.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Find out the correct terms
1. Managerial Accounting: I. Supplementing financial accounting information for internal users in making
operating decisions.
2. Bookkeeping: J. Recording transactions, a phase of accounting that is mechanical and repetitive.
3. Public Accounting: K. Independent professionals offering accounting services like audits and tax services for
a fee.
4. Private Accounting: L. Accountants employed by a single enterprise, aiding in controlling business
operations.
5. Governmental Accounting: M. Accounting in government agencies and non-profit institutions, involving
budgeting and auditing.
6. Recording: The initial phase of accounting involving the systematic entry of financial transactions into
records.
7. Summarizing: The process of condensing and presenting classified financial information into
comprehensive accounting reports.
8. Interpreting: Analyzing and explaining accounting information to aid in making informed business decisions
or comparisons between entities.

7-b
1.
UNIT 1: INTRODUCTION TO ACCOUNTING
What is the primary purpose of accounting?
A. To prepare income tax returns.
B. To communicate business information efficiently.
C. To control resources in governmental agencies.
D. To track daily business activities.
2. The accounting system involves:
A. Identifying business transactions.
B. Creating business forecasts.
C. Classifying future business actions.
D. Developing narrative records.
3. Which phase of accounting creates a systematic record of monetary transactions?
A. Recording
B. Interpreting
C. Summarizing
D. Classifying
4. What does the term "transactions" in accounting refer to?
A. Expected future actions
B. Completed actions in monetary terms
C. Intentions to purchase goods or services
D. Non-monetary business events

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
5. Classification of accounting transactions helps in:
A. Reducing mass of detail into usable forms.
B. Creating narrative records.
C. Developing accounting forecasts.
D. Identifying future business actions.
6. External users of accounting information include:
A. Management personnel
B. Creditors and potential investors
C. Suppliers and employees
D. Tax authorities only
7. Which branch of accounting primarily provides financial statements to external users?
A. Financial Accounting
B. Managerial Accounting
C. Tax Accounting
D. Governmental Accounting

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
8. What is the main purpose of managerial accounting systems?
A. Provide financial statements to external users.
B. Analyze financial data for tax purposes.
C. Aid internal users in making operating decisions.
D. Develop forecasts for business expansion.
9. Bookkeeping mainly involves:
A. Analysis and interpretation of financial data.
B. Designing accounting systems.
C. Recording mechanical and repetitive transactions.
D. Providing financial statements.
10. Public accounting primarily includes services such as:
A. Internal auditing only.
B. Income tax services and audits.
C. Designing accounting systems.
D. Financial forecasting for private businesses.

7-b
 UNIT 1: INTRODUCTION TO ACCOUNTING
Write an essay of 300 words explaining the role of accounting in the business world.

7-b
 UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Guessing skill
Vocabulary
1. Anlnua finiaancl sttsatemen
2. Aorudit
3. Boperokkee
4. chedarter accntounta
5. Ceod of coctndu
6. Cyonfidentialit
7. Cvreatie accngounti
8. Inecom txa
9. Lloca angccounti stadndars:
10.Maennagemt accntounta
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Vocabulary
1. Annual financial statements:
2. Auditor:
3. Bookkeeper:
4. CA (chartered accountant):
5. Code of conduct
6. Confidentiality:
7. Creative accounting: the
8. Income tax: the
9. Local accounting standards:
10.Management accountant: a senior
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Vocabulary
1.Playrol clker:
2.Psurchae edgerl ckler
3.Ssale lerdge clker:
4.axt aordvis:
5.vueal addde axt
6. Inbletangi assset
7. shaersrehold eqyuit
8. alannu aountscc
9. norimity intsteres
10.Cotionnglomera
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Vocabulary
1. Payroll clerk:
2. Purchase ledger clerk:
3. Sales ledger clerk:
4. Tax advisor:
5. VAT (value added tax):
6. Intangible assets
7. shareholders’ equity
8. annual accounts
9. minority interests
10. Conglomeration
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
C. DISCUSSION
 1. What is accounting? Why is it necessary for companies and
organizations?
 2. Why do you think accounting is seen as boring?
 3. Which of the jobs mentioned would be most interesting for you?
 4. Why is it so important for accountants to be ethical?
 UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
1. Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions
and information within a business or organization. It's necessary because it helps entities track their
financial health, make informed decisions, comply with regulations, attract investors, and plan for the
future. Essentially, it provides a snapshot of a company's financial status at any given time.
2. Accounting might be seen as boring because it involves meticulous record-keeping and dealing with
numbers and financial data, which some people might find dry or repetitive. Additionally, it's often
associated with strict rules and regulations, which might not seem exciting to everyone.
3. Each job has its own unique appeal! However, I might find the role of a forensic accountant intriguing.
It involves investigating financial discrepancies, fraud, and other financial irregularities, which could be
like solving puzzles and uncovering hidden truths.
4. Ethical behavior is crucial for accountants because they handle sensitive financial information. They're
entrusted with confidential data and are responsible for ensuring accuracy and transparency in
financial reporting. Ethical conduct helps maintain trust with stakeholders, prevents fraud and
misreporting, and upholds the integrity of financial information, which is essential for decision-making
within organizations and for external parties like investors, regulators, and the public.
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
D. PRACTICES: Matching: a - balance sheet, b - liquid assets, c - liability,
d - net income, e - property, f - payroll, g - equity, h-
journal, i - cash flow, j – expense
payroll
1. a list of all employees and their wages ________________
2. an accounting record where all business transactions are initially entered
journal
___________
3. money that is spent to purchase goods or services provided by someone
expense
else ________
4. a detailed summary of a person's or a company's financial condition at a
specific point in time, taking into account their assets, liabilities, etc.
balance sheet
______________
property
5. something that is legally owned by a person or company _____________
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
D. PRACTICES: Matching: a - balance sheet, b - liquid assets, c - liability,
d - net income, e - property, f - payroll, g - equity, h-
journal, i - cash flow, j – expense
liability
6. an obligation to settle a debt; money owed to someone _____________
equity
7. this word has 2 meanings: "stock (shares)" and "net worth" ___________
8. the balance of cash receipts minus cash payments over a given period of
time _______
cash flow
9. cash or something that is easily convertible into cash liquid assets
____________
10. money remaining after all expenses and taxes have been paid net ________
incom
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
II. Match each word given below with the correct definition (1-10).
assets; cost accounting; income; tax accounting; financial accounting;
expenditure; liabilities; bookkeeping; management accounting; auditing
1. ____________anything owned by a company –cash, buildings, machines, etc.
2. ____________calculating how much tax an individual or a company should pay or trying to
reduce this figure.
3. ____________checking and evaluating financial records.
4. _____________determining the unit cost of a manufactured product, including indirect costs
5. _____________keeping financial records and preparing financial statements.
Key:
1. Assets,
2. Tax accounting
3. Auditing,
4. Cost accounting
5. Financial accounting,
 UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
II. Match each word given below with the correct definition (1-10).
assets; cost accounting; income; tax accounting; financial accounting;
expenditure; liabilities; bookkeeping; management accounting; auditing
6._______________ money that a company will have to pay to someone else – bills, debts,
interest, taxes, etc.
7._____________ recording transactions (purchases and sales) in ledgers
8. _____________the money that a company receives from supplying goods or services
9. _____________the money that a company spends.
10. _____________the use of company’s accounting data by its manager to run the business.
Key:
6. Liabilities
7. Bookkeeping
8. Income
9. Expenditure
10. Management accounting
 UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
III. Choose the correct answer
1. A charge for arranging a transaction (e.g. buying or selling securities)
(a)
a commission (b) fee (c) tax
2. A charge for a service performed by a bank
(a) Commission (b)
b fee (c) tax
3. Payments for an insurance policy
(a) Commissions (b)
b premiums (c) tariffs
4. A reduction in the value of an asset, charge against profits
a Amortization
(a) (b) loss (c) waste
5. An adjective meaning after all deductions have been made
(a) Gross (b
b ) net (c) zero
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
III. Choose the correct answer
6. An adjective meaning for a whole group of companies
(a) Consolidated (b) corporate c) mutual
7. An adjective meaning one year or less in financial statements
(a) Annual (b) long-term (c) short-term
8. Part-ownership (less than 50%) of other companies
(a) Conglomeration (b) liabilities (c) minority interests
9. Things of value that cannot be physically touched, such as reputation (goodwill),
brand names and trademarks
(a) Intangible assets (b) liabilities (c) tangible assets
10. The net worth of a company – the amount by which assets exceed liabilities
(a) Dividends (b) profit (c) shareholders’ equity
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
IV. Complete the sentences below. Use the key words if necessary.
Accounting
(1) ________________ involves (2) ________________ and summarizing an organization’s (3) ________________ or
business deal, such as purchases and sales, and reporting them in the form of financial statements. In many countries,
the accounting or (4) ________________ profession has professional organizations which operate their own training
and examination systems, and make technical and ethical rules: these relate to accepting ways of doing things.
(5) ________________ is the day-to-day recording of transactions.
(6) ________________ included bookkeeping, and preparing financial statements for shareholders and creditors -
people or organizations who have lent money to a company.
(7) ________________ involves the use of accounting data by managers, for making plans and decisions.
Key
1. Accounting
2. recording/keeping track of,
3. transactions,
4. Accountancy
5. Bookkeeping
6. Financial accounting
7. Management accounting
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Auditing
(8) ________________ means examining a company's systems of control and the (9) ________________ or
exactness of its records, looking for errors or possible fraud: where the company may have deliberately
given false information.
An (10) ________________ is carried out by a company's own accountants or internal auditors.
An (11) ________________ is done by independent auditors: auditors who are not employees of the
company.
The external audit examines the truth and fairness of financial statements. It tries to prevent what is called
'creative accounting', which means recording transactions and values in a way that produces a false result -
usually an artificially high profit.
There is always more than one way of presenting accounts. The accounts of British companies have to give
a (12) ________________ of their financial situation. This means that the financial statements must give a
correct and reasonable picture of the company's current condition.
Key
8. Auditing
9. accuracy
10. internal audit
11. external audit
12. true and fair view
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
Laws, rules and standards
In most continental European countries, and in Japan, there are (13) ________________ relating
to accounting, established by the government. In the US, companies whose stocks are traded on
public stock exchanges have to (14) ________________ set by the Securities and Exchange
Commission (SEC), a government agency. In Britain, the rules, which are called (15)
________________, have been established by independent organizations such as the Accounting
Standards Board (ASB), and by the accountancy profession itself. Companies are expected to (16)
________________ or use these standards in their (17) ________________ in order to give a true
and fair view.
Companies in most English-speaking countries are largely funded by shareholders, both
individuals and financial institutions. In these countries, the financial statements are prepared for
shareholders. However, in many continental European countries, businesses are largely funded by
banks, so accounting and financial statements are prepared for creditors and the tax authorities.
13. Laws
14. follow rules
15. Standards
16. Apply
17. annual accounts
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
V. Choose the most suitable answer to complete the statement
1. Accounting rules are established by a a. Britain
e
government agency in ________________ b. most of continental
2. Companies are mainly funded by Europe and Japan
shareholders or stockholders c. Britain and the USA
c
in ________________ d. much of continental
3. Accounting rules are set by an independent Europe
a
organization in ________________ e. the USA
4. The major source of corporate finance is
d
banks in ________
5. Accounting rules are set by the government
b
_________
UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY
VII. Find verb + noun collocations for the words below from the reading
texts:
an audit an audit rules standards transactions
E. WRITING
Write a composition expressing your own opinion on the topic: Why do
people want to become an accountant? Use the following plan:
UNIT 2: Summary
1. The text highlights the misconception surrounding a-----------1 as a
monotonous field and reveals its diverse and crucial r-----------2 within
organizations. It sheds light on various c-------------3 paths within accounting,
from c-------------4 recording transactions to auditors ensuring accuracy and
l-----------5. It emphasizes the need for m--------------6, a knack for numbers,
and ethical c------------7 in accountants, showcasing the importance of their
role in guiding financial d-------------8 and ensuring compliance. Additionally,
it underscores the lucrative opportunities and perpetual demand for s--------
----9 accountants while dispelling the notion of accounting as b------------10,
emphasizing its significance in revealing financial t-------------10 and
managing money effectively. Ultimately, it aims to change the p--------------11
of accounting by emphasizing its complexity, variety, and essential role in
organizational ---------12.
UNIT 2: Summary
1. The text highlights the misconception surrounding accounting as a
monotonous field and reveals its diverse and crucial roles within
organizations. It sheds light on various career paths within accounting, from
clerks recording transactions to auditors ensuring accuracy and legality. It
emphasizes the need for meticulousness, a knack for numbers, and ethical
conduct in accountants, showcasing the importance of their role in guiding
financial decisions and ensuring compliance. Additionally, it underscores the
lucrative opportunities and perpetual demand for skilled accountants while
dispelling the notion of accounting as boring, emphasizing its significance in
revealing financial truths and managing money effectively. Ultimately, it
aims to change the perception of accounting by emphasizing its complexity,
variety, and essential role in organizational success.
 UNIT 2: Summary
2. The text paints a comprehensive picture of the multifaceted nature of accounting,
going beyond the conventional notion of number crunching and data entry. It elucidates
how the accounting landscape comprises a spectrum of roles, each integral to the
financial well-being and regulatory compliance of businesses.
The delineation of roles, from clerks meticulously recording transactions to auditors
serving as watchdogs ensuring accuracy and adherence to regulations, showcases the
intricate layers of accountability within the field. It highlights the pivotal role of
management accountants, who not only finalize accounts but also enable decision-
makers to comprehend and act upon a company's true financial standing.
Moreover, it acknowledges the dynamic environment within smaller accounting
practices, where versatility is key. Here, bookkeepers handle a myriad of tasks, from
client meetings to assisting with financial applications, underscoring the adaptability and
broad skill set often required in smaller settings.
 UNIT 2: Summary
2. The text paints a comprehensive picture of the multifaceted n---------1 of accounting,
going beyond the conventional notion of number crunching and data e-----------2. It
elucidates how the a------------3 landscape comprises a spectrum of roles, each integral to
the financial well-being and regulatory c--------------4 of businesses.
The delineation of roles, from clerks meticulously recording transactions to a-------------5
serving as watchdogs ensuring accuracy and adherence to regulations, showcases the
intricate layers of a---------------6 within the field. It highlights the pivotal role of m----------
----------7 accountants, who not only finalize accounts but also enable d -----------------8 to
comprehend and act upon a company's true f---------------9 standing.
Moreover, it acknowledges the dynamic environment within smaller accounting
practices, where versatility is key. Here, b-------------10 handle a myriad of tasks, from
client meetings to assisting with financial applications, underscoring the a-------------11
and broad skill set often required in smaller settings.
 UNIT 2: Find out the terms/ expressions
1. A----------------(1): The profession or practice of managing and analyzing financial accounts,
transactions, and records within an organization. It involves tasks such as recording
transactions, preparing financial statements, and ensuring compliance with financial
regulations.
2. S---------------------and ---------- (7): Personnel responsible for maintaining records of sales
and purchases, respectively, within a company. They record and organize financial
information related to transactions.
3. P---------------- (2): An individual responsible for processing employee salaries and
managing associated taxes and deductions.
4. M----------------------(2): A professional who finalizes accounts, prepares financial
statements, and provides insights into a company's financial position to aid decision-
making by directors or owners.
5. B-------------(1): Typically involved in smaller accounting practices, responsible for various
tasks such as client meetings, assisting with loan applications, and managing financial
records.
 UNIT 2: Find out the terms/ expressions
1. Accountancy: The profession or practice of managing and analyzing financial accounts,
transactions, and records within an organization. It involves tasks such as recording
transactions, preparing financial statements, and ensuring compliance with financial
regulations.
2. Sales Ledger Clerk and Purchase Ledger Clerk: Personnel responsible for maintaining
records of sales and purchases, respectively, within a company. They record and organize
financial information related to transactions.
3. Payroll Clerk: An individual responsible for processing employee salaries and managing
associated taxes and deductions.
4. Management Accountant: A professional who finalizes accounts, prepares financial
statements, and provides insights into a company's financial position to aid decision-
making by directors or owners.
5. Bookkeeper: Typically involved in smaller accounting practices, responsible for various
tasks such as client meetings, assisting with loan applications, and managing financial
records.
 UNIT 2: Find out the terms/ expressions
1. C----------------(2): A senior accountant usually owning or leading a smaller
accounting practice, possessing professional certification and expertise,
allowing their signature to be accepted on financial statements.
2. A-----------(1): Often referred to as the "police of the accounting world,"
responsible for reviewing financial records and ensuring accuracy and
compliance. Government auditors specifically investigate potential rule
violations within companies.
3. T------------(2): An expert in taxation law who advises clients on strategies to
minimize tax liabilities within legal boundaries.
4. P------------ (1): A crucial quality in accountants, as they are required to
ensure accuracy and precision in financial data and reporting, unwilling to
accept anything less than exactness.
 UNIT 2: Find out the terms/ expressions
1. Chartered Accountant: A senior accountant usually owning or leading a
smaller accounting practice, possessing professional certification and
expertise, allowing their signature to be accepted on financial statements.
2. Auditor: Often referred to as the "police of the accounting world,"
responsible for reviewing financial records and ensuring accuracy and
compliance. Government auditors specifically investigate potential rule
violations within companies.
3. Tax Advisor: An expert in taxation law who advises clients on strategies to
minimize tax liabilities within legal boundaries.
4. Perfectionist: A crucial quality in accountants, as they are required to ensure
accuracy and precision in financial data and reporting, unwilling to accept
anything less than exactness.
 UNIT 2: Find out the terms/ expressions
1. Creative Accounting: The unethical practice of manipulating financial data or
transactions within legal boundaries to achieve desired outcomes without directly
breaking rules or regulations.
2. Codes of Conduct: Ethical guidelines and rules that accountants must follow to ensure
legal and moral integrity in their professional practices.
3. Income Tax, Value Added Tax (VAT), Pension Schemes: Topics within accounting that
accountants gain expertise in and often provide advice on, affecting both business and
personal financial matters.
4. Demand for Accountants: The consistent need for skilled accounting professionals due to
their pivotal role in ensuring the financial health and success of organizations in both
public and private sectors.
 UNIT 2: Find out the terms/ expressions
1. C-------------------(2): The unethical practice of manipulating financial data or
transactions within legal boundaries to achieve desired outcomes without directly
breaking rules or regulations.
2. C------------------(3) : Ethical guidelines and rules that accountants must follow to ensure
legal and moral integrity in their professional practices.
3. I--------------------(2) : Topics within accounting that accountants gain expertise in and often
provide advice on, affecting both business and personal financial matters.
4. D--------------------------(3): The consistent need for skilled accounting professionals due to
their pivotal role in ensuring the financial health and success of organizations in both
public and private sectors.
 UNIT 2: Find out the terms/ expressions
1. What is the primary misconception about accountancy according to the text?
a) It involves minimal responsibility and decision-making.
b) It lacks variety and offers limited career options.
c) Accountants work primarily with artistic fields.
d) The job roles are undefined and confusing.
Answer: b) It lacks variety and offers limited career options.
2. Which position is responsible for finalizing the company's annual financial statements?
a) Sales Ledger Clerk
b) Purchase Ledger Clerk
c) Management Accountant
d) Payroll Clerk
b) Answer: c) Management Accountant
 UNIT 2: Find out the terms/ expressions
3. What distinguishes auditors from other accountancy roles according to the text?
a) They handle payroll and taxation.
b) They work solely in smaller accounting practices.
c) Their job involves ensuring correctness and compliance in financial records.
d) They primarily deal with routine financial reporting.
Answer: c) Their job involves ensuring correctness and compliance in financial records.
4. What essential quality is highlighted as crucial for accountants in the text?
a)A love for routine tasks
b) Perfectionism and exactness in results
c) A dislike for numbers
d) The ability to disregard accounting standards
Answer: b) Perfectionism and exactness in results
 UNIT 2: Find out the terms/ expressions
5. What potential consequence is mentioned for accountants who breach ethical rules?
a) Monetary rewards
b) Increased job opportunities
c) Severe punishment
d) Promotion to higher positions
Answer: c) Severe punishment
6. Which accounting role deals extensively with the intricacies of taxation laws to aid clients in
reducing their tax liabilities?
a) Sales Ledger Clerk
b) Purchase Ledger Clerk
c) Tax Advisor
d) Payroll Clerk
Answer: c) Tax Advisor
 UNIT 2: Find out the terms/ expressions
7. What differentiates the responsibilities of auditors from other accountancy roles?
a) Auditors focus solely on routine financial data entry.
b) Auditors mainly handle bookkeeping in smaller accounting practices.
c) Auditors work in various locations and ensure correct financial procedures.
d) Auditors perform managerial accounting tasks.
Answer: c) Auditors work in various locations and ensure correct financial procedures.
8. What significant quality should an accountant possess to advise clients effectively,
according to the text?
a) A preference for inaccurate results
b) Averse to accounting standards
c) Ability to prioritize routine tasks
d) Capability to suggest money-saving strategies while complying with local accounting
standards
Answer: d) Capability to suggest money-saving strategies while complying with local
accounting standards
 UNIT 2: Find out the terms/ expressions
9. What ethical mandate is emphasized for all individuals working with financial accounts?
a) Adherence to stringent rules and codes of conduct
b) Encouragement of creative accounting practices
c) Promotion of information disclosure
d) Exemption from confidentiality in financial data handling
Answer: a) Adherence to stringent rules and codes of conduct
10. According to the text, what's a notable benefit for accountants working in both public and
private sectors?
a) Limited earning potential
b) Restricted knowledge on taxation laws
c) Valuable expertise on financial topics applicable in personal life
d) Decreased demand for skilled accountants
Answer: c) Valuable expertise on financial topics applicable in personal life