Comprehension

1. Answer the following questions.

1. What is accounting?

2. Does accounting have professional organizations?

3. What is the purpose of accounting?

4. Bookkeeping is the day-to-day recording of transactions, isn’t it?

5. What does financial accounting include?

6. What does management accounting involve?

7. Who can use accounting information?

8. What does auditing mean?

9. What is the difference between an internal audit and an external audit?

10. What is called “creative accounting”?

Vocabulary

2. Match the words with the definitions below.

1) accounting	a) a precise list or enumeration of financial transactions
2) audit	b) the art of recording, summarizing, reporting, and analyzing financial transactions
3) bookkeeping	c) the status of a firm's assets, liabilities and equity positions at a specific point in time, often described in a financial statement
4) financial accounting	d) the process of measurement, analysis, preparation and communication of financial information that is used by management to plan, evaluate, and control within an organization
5) an account	e) the systematic recording of a company's financial transactions
6) financial statements	f) reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis
7) management accounting	g) an examination of records or financial accounts to check their accuracy
8) financial condition	h) a written report of the financial condition of a firm

3. What type of work does each person do and what is the name of each job?

1. I record all the purchases and sales made by this department.

2. This month, I'm examining the accounts of a large manufacturing company.

3. I analyse the sales figures from the different departments and make decisions about our future activities.

4. I am responsible for preparing our annual balance sheet.

5. When the accounts are complete, I check them before they are presented to the external auditors.

4. Fill in the correct words from the list below:

Specializes, studying, for inspecting its accounts, processing the records, giving administrative support, to inspect its accounts

Trainee accountants

Accountants who are ________for professional examinations.

Bookkeepers

Administrative staff that is responsible for ______of a business's financial activities.

Tax accountant

An accountant who _______ in a company's tax affairs.

Back-office manager

A person in charge of the staff who is responsible for ______to the Finance department.

Internal auditors

Employees of a company who are responsible _______.

External auditors

People employed by an outside firm of accountants and hired by a company________.

Grammar in Use

Passive Voice

5. Look and learn. Then rewrite the following sentences in the passive.

• The passive is formed with the appropriate tense of the verb to be + past participle

Present Simple	Accountants prepare annual reports. Annual reports are prepared by accountants.
Present Continuous	The accountant is preparing the report now.
Past Simple	The accountant prepared the report yesterday.
Past Continuous	When I entered the office the accountant was preparing a report.
Future Simple	The accountant will prepare the report tomorrow.
Present Perfect	The accountant has already prepared the report.
Past Perfect	The accountant said he had already prepared the report.
Future Perfect	The accountant will have prepared the report by 3 o’clock tomorrow.
Modals	The accountant can prepare the report.