English for Accounting

A

Accountancy

 

ccountancy (profession) or accounting (methodology) is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions. The names come from the use of financial accounts. Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated. Accounting is also widely referred to as the "language of business".

At the heart of accounting is the measurement of financial transactions which are transfers of legal property rights made under contractual relationships. Non-financial transactions are specifically excluded due to conservatism and materiality principles.

Practitioners of accountancy are known as accountants. There are many professional bodies for accountants throughout the world. Many allow their members to use titles indicating their membership. Examples are Chartered Certified Accountant (ACCA or FCCA), Chartered Accountant (FCA, CA or ACA) and Certified Public Accountant (CPA).

     Accountancy attempts to create accurate financial reports that are useful to managers, regulators, and other stakeholders such as shareholders, creditors, or owners. The day-to-day record-keeping involved in this process is known as bookkeeping.

     At the heart of modern financial accounting is the double-entry bookkeeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. The sum of all debits should always equal the sum of all credits. This provides an easy way to check for errors. This system was first used in medieval Europe, although claims have been made that the system dates back to Ancient Greece.

 

Main phrases:

*      accountancy (n)  

*      accounting (n)  

*      accountant (n)

*      disclosure (n)

*      decision maker (n)

*      financial accounting (n )

*      resource allocation (n)

*      financial transaction (n)

*      legal property right (n)

*      financial report (n)

*      contractual relationship (n)

*      stakeholder / shareholder (n)

*      double-entry bookkeeping system (n)

*      debit (v), (n)

*      credit (v), (n)

*      error (n)

 

1.1 Discuss with your partners and then answer the following questions

1.    Are you accounting students?

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2.    Do you like accounting jobs?

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3.    What are the common jobs of an accountant?

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4.    When and where was accounting first used for business operations?

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1.2. Read the text carefully and then answer questions below

1.    What is accounting?

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2.    What is financial accounting?

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3.    Who are accountants?

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4.    What does CPA stand for?

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5.    What is bookkeeping?

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6.    What is a double-entry bookkeeping system?

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7.    What does FCCA stand for?

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