Reading
A. Answer, Following, Questions
1. In general terms, what is the purpose of
accounting?
The purpose of accounting is to record
measures the activity of a business and reports on the effects of transactions on the firm’s
financial condition
2. Who uses the data which is provided by
accounting records?
The data which is provided by accounting
records is used by management, stockholders, creditors, independent analysts,
banks and government
3. What are the two types of records that are
prepared by most business?
The income statement and balance sheet
4. What can one learn by analyzing the income
statement and balance sheet of a company?
By analyzing these records, one can determine
whether or not the activities of the company have been good for it
5. What is ratio analysis used for?
It is used for evaluating a company’s current
financial position.
B.
Choose the
correct word
1.
Record (N)
2.
Report (X)
3.
Profit (N)
4.
Record (V)
5.
Profit (V)
6.
Report (V)
7.
Report (N)
8.
Profit (V)
C.
Complete the
following words
1.
Assets
2.
Depreciations
3.
Loan
4.
Interest
5.
Capital
6.
Drawing
7.
Shares
8.
Goodwill
9.
Acquisition
10.
Audit
11.
Budget
12.
Balance Sheet
13.
Ledgers
14.
Discount
15.
Creditor
16.
Stock
17.
Debitors
18.
Balance
19.
Profit
20.
Loss
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