Tugas B.Inggris Bisnis 2 materi ketiga

UNIT TWO

READING

INTRODUCING ACCOUNTING

            Accounting provides a financial picture a business firm. An accounting department records measures the activity of a business and reports on the effects of these transactions on the firm’s financial condition. Accounting records and reports provided data that are used by management, stockholders, creditors, independent analysts, banks and government.

            The income statement and balance sheet are the two types of records that most business prepare regularly. By reading these statement, once can identify how money was received and spent by a company. By analyzing these records, one can determine whether or not the activities of the company have been good for it.

            One major tool for the analysts of accounting records is ration analysis. A ration analysis is the relationship of two figures. There three main categories of ration in finance. One such ratio deals with profitability. The main example of this is the Return on Investment Ration, which is the most widely used single measure of a firm’s operating efficiency.

            A second set of rations helps a company evaluate its current financial position. These rations deal with assets and liabilities. A third set of rations deans with the overall financial structure of the company, primarily analyzing the values of the ownership of the firm.

A.    Answer the following questions

1.      In general terms, what is the purpose of accounting?

The purpose of accounting is to provide a means of recording, reporting, summarizing, and interpreting economic data.

2.      Who uses the data which is provided by accounting records?

Accounting records and reports provided data that are used by management, stockholders, creditors, independent analysts, banks and government.

3.      What are the two types of record that are prepared by most business?

The income statement and balance sheet

4.      What can one learn by analyzing the income statement and balance sheet of a company?

By reading these statement, once can identify how money was received and spent by a company. By analyzing these records, one can determine whether or not the activities of the company have been good for it.

5.      What is ratio analysis used for?

Ratio analysis is one of the main tools used to analyze accounting records.

B.     Choose the correct word available to complete the following sentences.

·         Record (N)     

·         Record (V)

·         Report (N)

·         Report (V)

·         Profit (N)

·         Profit (V)

1.      Accounting is needed to (Record) all business transactions

2.      He keeps very neat (Report)

3.      Our firm’s current (Profit) are very high

4.      They (Report) from their association with that company

5.      Our (Report) of accountant receivable show that $5.000 is owed to us

6.      The activity is (Report) on income statements and balance sheets

7.      Secretary had finished typing the (Report) before the manager arrived at the office

8.      How much does the company make (Report) this year?

Dialogue

Accounting

(David and Mary both work in a large company. They are mow having lunch in the company cafeteria)

David  : I’m glad you could meet me for lunch. You looked so busy this morning. Surrounded by so many statements and your calculator, of course.

Mary    : Of course! My calculator is my right hand!

David  : I never noticed

Mary    : seriously, David. You know, the accounting department is very busy

David  : I know, we’re all busy, totaling accounts. But I’ve already turned on the report on my department

Mary    : Then I guess my department should receive your statement soon

David  : You already have it

Mary    : Good

David  : So, how is business?

Mary    : How would I know? I only work on some records and statements. I don’t have the whole picture. I’m not the auditor. But I guess the company’s doing well

David  : I certainly hope so. We have to keep the investors happy, creditors, labor union and really, every one

Mary    : Well, the balance sheet and profit and loss statement for this fiscal year should be ready soon. So any one can check out of the company in the financial statements

David  : Speaking of finances, are you the one who works on the paychecks?

Mary    : Why do you ask about it?

David  : I thought you might explain to me the difference between my gross day and my net take-home pay?

Mary    : The explanation takes one word, taxes. Actually. The salaries are gone through the computer

David  : Really?

Mary    : Sure. How could we handle any volume in a large company, billings, sales, salaries, without computer?

David  : You’re right. Mary, you can credit my account and day

Mary    : David, don’t be dilly. Let’s get some dessert

C.     Complete the following words

1.      This is the name for buildings machinery, money in the bank and money owned by customers (Assets)

2.      The loss of value of the things in number one. (1) (Depreciation)

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

7.      These are bought by people wishing to invest in the company (Shares)

8.      The extra amount which is paid for a company above the value of its assets (Goodwill)

9.      The purchase of another company (Acquisition)

10.  An official examination of the accounts (Audit)

11.  A financial plan for the future (Budget)

12.  A statement of the financial position the company (Balance sheet)

13.  The official books for keeping accounts (Ledgers)

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)

16.  Goods which has the company has available to sell (Stock)

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)

19.  Companies make this when they sell their goods for more than it costs (Profit)

20.  Companies make this when they sell their goods for less than it costs (Loss)