Tiếng anh chuyên ngành kế toán
Trang 1ACCOUNTING BASICS
UNIT OBJECTIVES - MỤC TIÊU
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)
• Provide students with an overview of accounting main issues, basic terms and concepts related
to accounting
Cung cấp cho sinh viên cái nhìn tổng quan về các vấn đề cơ bản trong kế toán, các thuật ngữ
và khái niệm cơ bản trong kế toán.
• Provide for students the way of organizing an academic essay
Cung cấp học sinh phương pháp tổ chức viết một bài luận
• At the end of this unit, students will be able to talk and write about accounting main issues
Sau khi kết thúc bài học này, sinh viên có thể nói và viết về các vấn đề cơ bản trong kế toán.
In this unit, students will be provided knowledge to write and talk about an overview of accounting main issues, basic terms and concepts related to accounting
Trong bài này, sinh viên sẽ được cung cấp các kiến thức ngôn ngữ để nói và viết về các vấn đề tổng quan trong
kế toán, các thuật ngữ và khái niệm cơ bản về kế toán
Trang 2Column A Column B
1 Ledger A The amount of money written on the left side of the ledger
2 Debit B The amount of money written on the right side of the ledger
3 Credit C The recording of revenues and expenses may take place before
related cash is received
4 Cash method D
A book in which the monetary transactions of a business are posted in the form of debits and credits A ledger includes the record of accounts transferred as final entry from original postings
5 Accrual method E The recoding of revenue and expenses takes place when the related
cash is received
6 Balance sheet F A statement reporting the organization’s economic performance over
a specific period of time
7 Income
The basis of the standard accounting system in which each transaction
is recorded in at least two accounts: debit and credit
8 Cashflow
The summary of the organization’s uses of funds (assets) and sources
of funds (liablilities and equity) at a specific point of time
9 Double-entry
accounting I
The basic formula of the double-entry book keeping system It shows how assets were financed either by borrowing money from someone else (liability) or by paying your own money (shareholder’s/ owner’s equity)
Assets = Liabilities + Shareholder’s/ owner’s equity
10 Accounting
A statement explaining how an organization obtains cash and how it spend cash and other factors that may affect cash positions
11 Revenue K A daily record of events or business
12 Book keeping L
An evaluation of a person, organization, system, process, project or product in order to certain the validity and reliability of information, and also provide an assessment of a system’s internal control
13 Creditor M The recording of all financial transactions undertaken by an individual
or organization
the amount of money that a company receives from its activities in a given period, mostly from sales of products and/or services to cus-tomers
15 Journals O
A party (e.g person, organization, company, or government) that has
a claim to the services of a second party The first party, in general, has provided some property or service to the second party under the as-sumption (usually enforced by contract) that the second party will re-turn an equivalent property or service
Trang 3ACCOUNTING BASICS
Definition of Accounting
Accounting is the process of financially measuring,
recording, summarizing and communicating the economic activity of an organization It is often referred to
as “the language of business” and, like any other language,
it has its own unique vocabulary and rules Some people think of accounting as a highly technical field understood only by professional accountants However, technical accounting terms such as assets, liabilities, equity, revenue, expense, income and cash flow are widely used throughout the micro-finance field Thus it is important that anyone involved in making business decisions understands the basic accounting concepts which form the basis of financial management
Accounting is the process
Accounting is a service activity It provides financial information about an organization’s
economic activities which is intended to be used as a basis for decision making It provides the required to answer questions such as: What are the resources of the organization? What debts does it owe? Are its operating expenses too high relative to revenue? Are the organization’s current lending activities generating enough income for it to be sustainable? Not everyone needs to understand the intricate details of an organization’s accounting system; however, it
is helpful for employees to understand the framework within which accounting operates Managers, in particular, need to know how to interpret the information accounting provides Based on this information, managers can analyze the financial status of their organization and manage the organization’s finances to ensure future financial stability
Role of Accounting
Accounting falls into two general categories: financial
accounting and management accounting Financial
accounting presents a summary view of the financial results
of past operations Financial accounting reports are aimed at
external audiences although they are widely used internally
as well Management accounting information is tracked and
presented at a much more detailed level, such as by programme or branch Projected financial information is also a part of management accounting and is aimed primarily at internal audience Management reports are prepared frequently and report on an on going basis the differences between planned and actual results
Financial Statements
The preparation of financial statements is virtually the last stepin the accounting process
but it is an appropriate point to begin studying accounting in order to understand what will
be produced Financial statements are the primary means through which an organization communicates information about its economic activities The purpose of these statements is to provide useful financial information to parties such as banks, investors, suppliers, governments, etc., who may make decisions affecting the organizations’ operations or otherwise influence the
Text A: Read text A: Accounting Basics and do exercises 2.1, 2.2 below The suggested time for reading the text and completing the exercises is 30 minutes.
Trang 4direction of its activities Financial
statements are means of conveying a
concise picture of the financial position of
the organization An individual who has
a clear understanding of these statements
will understand better the purpose of
earlier steps in the process
The three most widely used financial
statements are the Balance Sheet, the
Income Statement and the Statement of
Changes in Financial Position The Balance
Sheet is a summary of the economic
resources of an organization and the
claims against those resources at a specific point in time The Income Statement reports the organization’s economic performance over a specified period of time
The Statement of Changes in Financial Position reports the organization’s sources and uses
of funds (also referred to as the Statement of Changes in Sources and Uses of Funds or the Cash Flow Statement) It explains how an organization obtains cash (sources of funds) and how it spends cash (use of funds) including the borrowing and repayment of debt, capital transactions, and other factors that may affect the cash position
(Source: http://www.ruralfinance.org/servlet/BinaryDownloaderServlet?fileame=1125440545561_Lesson1_ definition_accounts.pdf, retrieved on 15 December, 2009)
Answer the following questions based on the information in text A.
1 What is Accounting?
2 Why is it important for business people to understand the basic accounting concepts?
3 What kinds of information does accounting activity provide?
4 What does the accounting information help managers in the business management?
5 Who are financial accounting aimed at? How about management accounting?
6 What kinds of information about the company do financial statements provide?
7 What are the most popular financial statements?
According to text A which of the following sentences are (T) or false (F) Correct the false information.
Note:
The Statement of Changes in Financial Position
is not described until after the recording and summarizing of economic transactions is explained
The first two statements are explained earlier Together, these statements summarize all of the information contained in the organization’s accounts
1 Accounting rules and terms are very technical and only professional accountants
can understand
2 Accounting activity brings the information about the income and the spending
of the company
3 As a manager, understanding accounting system entails being able to interpret
the information accounting provides
4 People like investors and bondholders use management accounting reports
to make their investment decisions
5 One who can’t read the financial statements can’t understand the accounting
process
6 Statement of changes in sources and uses of funds is part of the statement of
changes in financial position
2.1
2.2
Trang 5ACCOUNTING POLICIES AND STANDARDS
Text B: Read text B and do exercises 2.3, 2.4, 2.5 below The suggested time for reading the text and completing the exercises is 40 minutes.
Valuation and measurement
Investors in companies want to
know how much the companies
are worth, so companies regularly
have to publish the value of their
assets and liabilities Companies
also have to calculate their profits
or losses: their managers need
this information, and so do
shareholders, bondholders and
the tax authorities Companies
can choose their accounting
policies – their way of doing their
accounts There are a range of
methods of valuation – deciding
how much something is worth
– and measurement – determining
how big something is – that are
accepted by law or by official
accounting standards In the USA,
there are Generally Accepted
Accounting Principles (GAAP)
In most of the rest of the world
there are International Financial
Reporting Standards (IFRS), set
by the International Accounting
Standards Board These are
technical rules or conventions
– accepted ways of doing things
that are not written down in a law
Although businesses can choose
among different accounting
policies, they have to be
consistent, which means using
the same methods every year, unless there is a good reason to change a policy: this is known
as the consistency principle The policies also have to be disclosed
or revealed to the shareholders:
the Annual Report will contain
a ‘Statement of Accounting Policies’ that mentions any changes that have been made
This enables shareholders to compare profits and values with those of previous years
Areas in which the choice of policies can make a big difference
to the final profit figure include depreciation – reducing the value
of assets in the company’s accounts, the valuation of stock
or inventory, and the making of provisions – amounts of money deducted from profits – for future pension payments
As there is always more than one way of presenting accounts, the accounts of British companies have to give a true and fair view of their financial situation – meaning there are various possibilities – rather than the true and fair view – meaning only one is possible
Historical cost and accounting
The aim of accounting standards
is to provide shareholders with the information that will allow them to make financial decisions This is one reason why in many countries accounting follows the historical cost principle: companies record the original purchase price of assets, and not their (estimated) current selling price or replace-ment cost This is more objective, and the current value
is not important if the business
is a going concern – a successful company that will continue to
do business – as its assets are not going to be sold, or do not currently need to be replaced However, some countries with regular high inflation, e.g in South America, use inflation accounting systems that take account of changing prices One system used is replacement cost accounting, which values all assets at their current replacement cost – the amount that would have to be paid to replace them now
Trang 6Match the two parts of the sentences
Are the following statements true or false?
1 Companies are told which accounting policies to use
2 Companies can change their accounting policies whenever they like, as long as they disclose this in their Annual Report
3 Companies could produce several profit figures, depending on how they depreciated their assets, valued their inventory, etc
4 There is only one correct interpretation of a company’s financial position, and company accounts must show this
5 In many countries, companies do not record the current value of their assets
6 In countries with high inflation, companies value their assets at their current replacement cost
Complete the table with words from the text and related forms
Put a stress mark in front of the stressed syllable in each word The first one has been done for you.
-valuable
2.3
2.4
2.5
1 Company’s managers, investors, creditors
and the tax authorities all
a and not their current value, is recorded in accounts
2 There are different ways of doing accounting
but companies have to be consistent,
b need to know the current market value of its assets
3 Companies have to disclose or make
known
c need to know about the size of profits or losses
4 The historical cost principle is that the price
paid to buy assets,
d which accounting methods they are using
5 A going concern usually doesn’t e which means regularly using the same
methods
Trang 7You are now listerning to a lecture on accounting overview Listen carefully and do the exercices 3.1, 3.2, 3.3 below.
Listen to the lecture the FIRST time and answer the questions
1 Why is accounting called the ‘language of business’?
2 How is a standardized accounting system achieved?
3 What are revenues and expenditures?
4 In what ways are the balance sheet and the income statement different?
5 How are accountants classified in the United States?
6 What kind of services do public accountants provide?
7 For whom do private and governmental accountants work?
Now listen to the lecture the SECOND time and circle the answer that best completes each of the sentences below
1 Accounting information is used by to help them make financial decisions
2 Regardless of the type of business or the amount of money involved:
a all companies use identical accounting systems
b balance sheets are more important than income statements
c common procedures are used in handling financial information
d no standardized accounting system is employed
3 Business monetary transactions are summarized in:
4 Public accountants may earn the title of CPA by:
a becoming governmental accountants
b paying a fee
c fulfilling rigorous requirements
d obtaining a Bachelor of Arts degree in accounting
5 Private and governmental accountants are paid on a basis
3.1
3.2
Trang 8An accounting overview
Hi everyone, accounting is frequently called the ‘language of business’
because of its ability to communicate financial information about
an organization Why is called so? Various (1)……… parties,
such as managers, potential investors, (2)… …, and the government,
depend on a company’s accounting system to help them make
informed financial decisions An effective accounting system,
therefore, must include accurate (3)………., recording, classifying,
(4)…… , (5)………….and reporting of information on the financial
status of an organization
In order to achieve a standardized system, the accounting process
follows accounting principles and rules Regardless of the type of business or the amount
of money (6)…… , common procedures for (7)…… and presenting financial information are used Incoming money (revenues) and outgoing money (expenditures) are carefully monitored, and (8)………… are summarized in financial statements, which (9)…… the major financial activities of an organization
Ok As you may know, two common financial statements are the balance sheet and the income statement The balance sheet shows the financial position of a company at one point in time, while the income statement shows the financial performance of a company over a period of time Financial statements allow interested parties to (10)…… one organization to another and/or to compare accounting (11) …… within one organization For example, an (12)…… may compare the most recent income statements of two corporations in order to find out which one would be a better investment
Listen to the first part of the lecture again and fill ONE word in each blank below
Choose the best alternative to complete the sentence The suggeted time for completing the exercises is 10 minutes
1 It’s up to the accountant to the various financial statements
2 The bookkeeper keeps a record of every financial
3 It’s essential to the invoice number in any correspondence
4 We’re in with our supplier over this invoice so don’t pay it until you hear from me
3.3
4.1
Trang 95 We send a to customers who haven’t settled their accounts.
6 If these figures could be into parts and labor it would make them easier to understand
7 This company has a weekly of about $100,000
8 By examining the balance and other documents we were able to find out that the company was not doing as well as they claimed
9 The rent for the office is already 3 months !
10 Due to the economic climate we have had to more bad debts this year than ever before
11 Do they have enough working to keep trading?
12 Such items as buildings and machinery are known as assets
Complete the text using the words in the box The suggeted time for completing the exercises is 10 mitutes
Bookkeeping
Bookkeepers record every purchase and sale that a business makes, in the order that they take place, in (1) At a later date, these temporary records are entered in
or (2 ) to the relevant account book or (3 ) Of course
4.2
credits journals transactions debits ledger transferred
double-entry posted trial balance invoice receipt vouchers
Trang 10the ‘books’ these days are likely to be computer files At the end of an accounting period, all the relevant totals are (4 ) to the profit and loss account (5) bookkeeping records the dual effect of every transaction – a value both received and parted with Payments made or (6) are
entered on the left-hand (debtor) side of an account, and payments
received or (7) on the right-hand side Bookkeepers
will periodically do a (8) to test whether both sides
of an account book match In most business (9) ,
the seller of goods or services sends the buyer a bill or (10)
, and later a 11 acknowledging
payment Businesses are obliged to retain the documents – known as
(12) – that support or prove an item in an account,
and make them available to the internal and external auditors who
check the accounts Bookkeepers are not to be confused with librarians,
who also keep books, or with bookmakers, who ‘make books’ in the sense that they accept bets (on horse races, etc.) and traditionally wrote them down in a book like a bookkeeper’s journal Accountants, unlike bookkeepers, analyze financial records, and decide how to present them
Match the remarks on the left with the responses on the right, check your answers with a partner, then practice the dialogue together
1 You’re an accountant? Does
that mean you spend your
time writing down credits
and debits, and adding up
columns of figures all day?
Can’t be exciting
2 So what do accountants do?
3 You mean the shareholders?
4 So do you prepare reports
for managers?
5 And the cost of the accounts
department!
6 You mean what they do in
the front of shops?
7 Ah, now that’s interesting
8 Not at all As a matter of
fact, I’m a tax inspector
A Ha! Now you’re going to ask me to tell you how you can pay less tax
B No, managerial accountants do, but I work in cost accounting We have to work out the real cost of each item the company makes, which means finding a way
to allocate all the overheads to different products
C No, not only Managers always need the help of accountants They need financial statements, and budgets, and cash-flow projections, and so on, to measure the success of what they’ve done, and to make decisions for future projects
D Of course But as I said, we’re necessary, and useful Haven’t you heard of ‘window dressing’?
E Sure, but it’s also another name for what some people call ‘creative accounting’ – making a company’s financial situation look as good as possible in the balance sheet, and so on It’s not very legal, but it happens The accountants in my firm also have lots
of wonderful ways of reducing our tax bill
F That’s bookkeeping Not quite the same thing
G Well, accountants do record cash flows, and the value
of assets and liabilities, and they calculate profits and losses, and so on But it’s not just writing down numbers We’re really in the business of supplying people with information
5.1
