Comprehension

1. Answer the following questions.

1. What accounting methods do you know?

2. What is the most widely used bookkeeping method?

3. How do you understand the double entry method?

4. What is the purpose of this method?

5. Can you explain what the cash basis method is?

6. What is the difference between the cash basis and the actual basis methods?

Vocabulary

2. Fill in the correct word from the list below.

Debit, accrual, cash, financial, accurate, chart, to earn, double entry

1. …………………… basis

2. …………………… picture

3. …………………… flow

4. …………………… method

5. …………………… condition

6. …………………… entry

7. …………………… of accounts

8. …………………… revenue

3. Complete the sentences with the missing parts:

expenses matches the revenues or used up; upon receipt of funds; the balance sheet; two; two different accounts; services or goods have been delivered

1. The financial statement that reports assets, liabilities, stockholders’(owners’) equity at a specific date is ___________.

2. Under the accrual basis of accounting revenues are reported in the accounting period when __________.

3. Accounting entries involve minimum of _______ accounts.

4. Under the accrual basis of accounting expenses are reported in the accounting period when ________.

5. Under the cash flow basis income is recorded _______.

6. In the double-entry accounting method every journal entry transaction is recorded in the journal once, but affects ________.

4. Choose the correct answer to fill in the gap.

1. I ________ our profits for the previous accounting period.

a) called

b) gathered

c) calculated

2. Your job will be to _________ and maintain financial records.

a) promise

b) prepare

c) make

3. An accounting period is a period of time over which _________ are calculated.

a) prophets

b) profits

c) profiteering

4. Accounts __________refers to the money that is owed to the company by its clients/customers.

a) receivable

b) receptive

c) respected

5. To accrue means to accumulate or __________.

a) decrease

b) regret

c) increase

6. I indicated all the accrued expenses on your balance __________.

a) sheet

b) paper

c) note

7. Another word for accounting is __________.

a) finance

b) bookkeeping

c) money counting

8. Things of value owned by a business are known as its __________.

a) assertions

b) assessment

c) assets

9. What's the opposite of an asset?

a) cash

b) liability

c) liaison

10. Every company should have a clear record of their ___________ assets.

a) fixed

b) fix

c) fixture

Grammar in Use Questions tags

5. Look and learn.

• Questions tags are short questions added to affirmative or negative statements. They are used a) to ask for confirmation of something; b) to ask others if they agree with us.

• Examples:

He is an accountant, isn’t he?

You haven’t seen the director, have you?

Don’t tell her, will you?

Let’s go to the bank, shall we?

Let me help you, will you?

Nobody passed the test, did they?