11. Work in pairs. Practise doing a survey interview for the company. Ask and answer questions given below.

• How often do you use sport centre?

• Do you go to the cafeteria at lunch times?

• Is crèche necessary for the company?

• How often do you have a physical examination in a company’s health centre?

• Is it a good idea to spend your free time with colleagues at work?

• Which facilities do you need in your company?

• What company facilities should be improved?

Grammar review

Must and have to

Complete the following sentences using must, have to, must not and do not have to.

All companies… hold a valid license. For certain transactions, you … have a full set of documents. There are some papers on the floor in my room. You … take them away. I need them tomorrow morning. Bookkeepers … keep track of everyone’s activities. To become a bookkeeper you … be specially educated. You … be in a hurry. The figures are not very urgent. We need them at the end of the month. The company has financial problems. You …take a loan. There are mistakes in the report. You …be more attentive. There is some typing but it is not urgent. You … do this. You … clean the room. The cleaner will come and tide it up. An accountant of today … be information literate. It is not my obligation! I … do this. You ... call to our partners in Greece. There are some problems with delivering.

Cross out the inappropriate alternative in the following sentences. 1. It’s our boss’s birthday! We really (must/have to) remember to get him a present. 2. All clients (must/have to) make an appointment in advance. 3. She is our secretary. She (must/has to) answer the telephone calls. 4. Unfortunately we can’t help you. We (must/have to) finish this work. 5. Everybody has gone. I (must/have to) do it myself. 6. As she works in China she (must/has to) learn some Chinese. 7. CAs and ACAs (mustn’t/won’t have to) worry about losing their jobs. 8. Airport workers threaten strike. They (must/have to) raise salaries.

Unit 4 BASIC INFO

4.1

1. Language check

Look at the words in the box. Do you know their meaning? What words are they originated from?

ad info pro veg maths

2. Read the text. Check you know the words and phrases in bold type which may be helpful for understanding in the dictionary supplemented.

In double entry accounting, rather than using a single column for each account and entering some numbers as positive and others as negative, we use two columns for each account and enter only positive numbers. Whether the entry increases or decreases the account is determined by choice of the column in which it is entered. Entries in the left column are referred to as debits, and entries in the right column are referred to as credits.

T wo accounts always are affected by each transaction, and one of those entries must be a debit and the other must be a credit of equal amount. Actually, more than two accounts can be used if the transaction is spread among them, just as long as the sum of debits for the transaction equals the sum of credits for it.

The double entry accounting system provides a system of checks and balances. By summing up all of the debits and summing up all of the credits and comparing the two totals, one can detect and have the opportunity to correct many common types of bookkeeping errors.

To avoid confusion over debits and credits, avoid thinking of them in the way that they are used in everyday language, which often refers to a credit as increasing an account and a debit as decreasing an account. For example, if our bank credits our checking account, money is added to it and the balance increases. In accounting terms, however, if a transaction causes a company's checking account to be credited, its balance decreases. Moreover, crediting another company account such as accounts payable will increase its balance. Without further explanation, it is no wonder that there often is confusion between debits and credits.

The confusion can be eliminated by remembering one thing. In accounting, the verbs "debit" and "credit" have the following meanings:

Debit Credit

"Enter in the left column of "Enter in the right column of

That’s all. Debit refers to the left column; credit refers to the right column. To debit the cash account simply means to enter the value in the left column of the cash account. There are no deeper meanings with which to be concerned.

The reason for the apparent inconsistency when comparing everyday language to accounting language is that from the bank customer's perspective, a checking account is an asset account. From the bank's perspective, the customer's account appears on the balance sheet as a liability account, and a liability account’s balance is increased by crediting it. In common use, we use the terminology from the perspective of the bank's books, hence the apparent inconsistency. Whether a debit or a credit increases or decreases an account balance depends on the type of account. Asset and expense accounts are increased on the debit side, and liability, equity, and revenue accounts are increased on the credit side.

3. Choose the title for the text from the given below or suggest your own.

1. Debit and credit

2. The double entry accounting

3. Accounting terminology

4. Assets and liabilities

4. Which of the following sentences correspond to the text content?

1. Debit refers to the right column.

2. The account is determined by choice of the column in which it is entered.

3. The double entry accounting system provides a system of balances.

4. The sum of debits for the transaction equals the sum of credits for it.

5. The words “debit” and “credit” have different meaning in accounting and everyday language.

5. Answer the following questions.

1. What does the double entry accounting provide?

2. Are revenue accounts increased on the credit side?

3. What is the simplest way to correct bookkeeping errors?

4. How are the words “debit” and “credit” used in everyday language?

5. What does an account balance depend on?

6. Match the word to its definition.

1. customer	a. total obtained by adding together items, numbers or amounts
2. increase	b. to become or to make sth smaller in amount, number, etc.
3. decrease	c. a person or an organization that buys sth from a shop/store or business
4. sum	the value of a company shares; the value of property after all charges and debts have been paid
5. equity	e. to become or to make sth greater in amount, number, etc.