Answer Key

Unit 1. What Is Accounting?

Developing Vocabulary

1. 1 c; 2 b; 3 e; 4 d; 5 a.

2. 1 accountant; 2 accountancy; 3 accounts, accounting; 4 account; 5 accountancy; 6 accounting; 7 accounts; 8 accounting; 9 accountant; 10 account; 11 accountancy; 12 accounting; accounts.

Unit 2. Evolution of Accounting

Reading

2. 1) c; 2) b; 3) b; 4) a; 5) a; 6) c; 7) b; 8) c; 9) b; 10) a.

Developing Vocabulary

1. 1) terminate; 2) acquired; 3) evolve; 4) loan; 5) merchant; 6) emerged, 7) annual; 8) accountable; 9) integrity; 10) mandatory; 11) rose.

2. 1) in; 2) for; 3) during; 4) for; 5) at; 6) in; 7) to; 8) at; 9) between, at, between; 10) from; 11) to; 12) for; 13) to; 14) into.

3. Generate profit, oversee operation, issue capital stock (shares), record transactions, distribute goods, conduct business, affix a signature, quote prices, allocate resources

Discovering Language

the Securities and Exchange Act; a double entry accounting system; job advertisements; a university accounting course; an exam success guide; new health and safety measures; accounting software engineers; an emerging market analyst

Cloze Test

(1) record-keeping; (2) found; (3) clay: (4) record; (5) information; (6) Pacioli; (7) published; (8) double-entry; (9) evolved; (10) Venice; (11) needs; (12) period; (13) for; (14) the; (15) in; (16) by; (17) money; (18) reports; (19) position; (20) century; (21) financial; (22) in; (23) accountants: (25) States.

Unit 3 Accounting Profession

Reading

Text 1 2. 1) e; 2) b; 3) a; 4) d; 5) f; 6) c.

Text 2

1) a); 2) f); 3) m); 4) a); 5) b); 6) k); 7) c); 8) i); 9) e); 10) g); 11) l); 12) J); 13) d).

Developing Vocabulary

1. 1 far-reaching; 2 fast growing; 3 hard-working; 4 high-flying; 5 long-lasting; 6 well-educated; 7 quick-witted; 8 newly appointed

2. 1 e); 2 a); 3 b); 4 h); 5 d); 6 g); 7 f); 8 c).

4. 1) efficient 2) effective 3) efficient 4) effective 5) efficient 6) efficiency

5. 1 earned income; 2 unearned income; 3 royalties; 4 wages; 5 fringe benefits

6. 1) income (not dividends; dividends are received, not earned)); 2) perks/fringe benefits; 3) fees; 4) revenue; 5) earnings/income; 6) wage; 7) earnings; 8) remuneration; 9) royalties

Discovering Language

(2) had been; (3) did you get; (4) finished (or had finished); (5) went; (6) hadn’t decided; (7) were; (8) was looking; (9) gave; (10) ‘d already taken; (11) completed; (12) sent; (13) interviewed; (14) felt; (15) changed; (16) went; (17) was working; (18) was becoming (or had become); (19) didn’t have; (20) had.

Focus on Functions

a) divisions, is based in, subsidiaries, is headed, reports, parent company

b) is headed by, is supported by, consists, are accountable to, supports, is responsible for, is in charge of

Writing

Cloze Test (1) demand; (2) by; (3) were; (4) for; (5) World; (6) accounting; (7) century; (8) career; (9) of; (10) States; (11) students; (12) events; (13) profession; (14) for; (15) increased; (16) traditional; (17) to; (18) majoring; (19) percent; (20) over; (21) of; (22) labor; (23) accounting; (24) comprised; (25) comprised; (26) obtain

Unit 4 Bookkeeping

Developing Vocabulary

1. 1) records, statements; 2) double-entry, journals, ledgers; 3) Posting data; 4) double-entry, balance, receipts, debits; 5) bookkeeping, trial balance; 6) preliminary; 7) Accuracy; 8) errors; 9) balance, credits, debits; 10) list

2. 1) accounting, records; 2) trial balance, statements, accounting; 3) receipts, payments, transactions; 4) record, journals; 5) accuracy; 6) debits, credits; 7) account, debit; 8) listed; 9) a balance

3. 1) journals; 2) posted; 3) ledger; 4) transferred; 5) double-entry; 6) debits; 7) credits; 8) trial balance; 9) transactions; 10) invoice; 11) receipt; 12) vouchers

4. 1) record, 2) made, 3) received, 4) entered, 5) balance or check, 6) retain, 7) check, 8) analyse

Discovering Language

1. of, of; in, in, of; of, by; in; in, - ,in; of, on, in; of, below, in; Below, of; of, of, on

2. 1) keeping; 2) posting, calculating; 3) checking, showing; 4) having been completed; 5) recording/having recorded; 6) keeping; 7) being held; 8) deciding; 9) not having detected, checking; 10) being drawn up

Listening

1. Metro–Polo is a creditor of Patrick Flynn. Patrick owes Metro-Polo money.

Writing

1. Model answers:

2) Yes, they will, in case you don’t pay them.

3. No, they won’t, not if you pay them.

4. Yes, they will, as long as you pay them.

2. a. double, b. Entry, c. income, d. outgoing, e. transaction, f. entries, g. credit (or debit), h. debit (or credit), i. balance, j. balance, k. sources.

Unit 5 Financial Reporting

Developing Vocabulary

3. 1) creditor, 2) inventory, 3) goodwill, 4) cash flow, 5) assets, 6) bottom line, 7) debtor, 8) accounts payable, 9) liability, 10) entry, 11) solvency.

4. 1) taken … losses; 2) accounts receivable 3) tangible assets, intangible asset 4) short-term liabilities 5) bank debts; 6) run at a loss 7) generating revenue; 8) bottom line

Listening

1 b; 2 a; 3 b; 4 a; 5 a.