English Learning Guide

Competency 1

- CSF
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros

Name: Yesica Mayibi Madrigal Tapiero Cohort: 1693759-3 Date:

Training program: technology in accounting and finance Instructor:

Yolanda Moreno

BASIC ACCOUNTING CONCEPTS/COMMERCIAL DOCUMENTS- VOCABULARY/ COST ACCOUNTING

This workshop attempts to enhance your accounting knowledge and it deals with basic accounting
concepts such as accounting-job-positions and functions, this workshop was created regarding
people you might work with in a regular work environment.

Objectives: from the development of these activities, you will be able to Identify back office
accounting personnel, analyze accounting personnel and function and discuss about basic
accounting concepts.

1. Work in groups and answer the following questions

 What’s accounting? Control and recording system of expenses and income and other
economic operations performed by a company or entity.
• Do you think accounting is important to keep a company floating? why/why not?
Accounting is a fundamental pillar in the administration of a company. For a company to
function properly it is necessary to have a good business vision and control many factors.
• Do you know someone who works as an accountant? If so, who? Where does this person
work? Do you know what exactly this person does? Yes, she is a great friend who works in
a restaurant called firewood and sticks. This person must have the clear accounting of the
company especially take it to the chord, submits tax returns, payroll, among other
actions.
 English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
2. a. Match these accounting firms with their definition1.

A. Public Accounting 1. firms typically employ Certified Public

Accountants (CPAs).

B. Tax Accounting 2. firms use accounting skills and legal

policies to uncover fraudulent and illegal
activities.

C. Forensic accounting 3. firms complete fundamental accounting

tasks for small and medium-sized
companies.

D. Bookkeeping 4. firms focus on tax preparation and

planning for companies of all sizes, and
also for individuals.

b. Match the images with the concepts above

C
A

1 Retrieved from: https://smallbusiness.chron.com/types-accounting-firms-17677.html adapted and used

GC-F -005 V. 01
by SENA. Images retrieved from: https://smallbusiness.chron.com/types-accounting-firms-17677.html

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF

3. Skills practice: Do the following activities to practice the learnt vocabulary and English
structures.

3.1. Speaking practice: talk about accountants

Work in groups of 4 people and share your opinion with the rest of the class. Discuss the questions
below:

- What jobs do accountants do? The public accountant is the professional dedicated to
apply, manage and interpret the accounting of an organization or person, with the
purpose of producing reports for management and for third parties (both independently
and dependently), which serve to make decisions.
- Describe the educational requirements for accountants. solid knowledge of accounting
and auditing
- full control of accounting and control systems
- notions of business administration
- knowledge of civil, commercial, tax laws, etc.
- economy and statistics
- elements of applied mathematics
- Other auxiliary technical knowledge.
- Share with the group in a short oral presentation of jobs and duties for an accountant.

3.2. Listening practice

Before watching the video, answer these questions:

- find the definition of “profit” and give some examples.

A benefit is a good that is made or received. The term is also used as a synonym for utility
or advantage. For example: "This bank offers me more benefits when opening an

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
account", "Our company offers great benefits to the
most loyal customers", "With the purchase of the TV,
I accessed several benefits in the store".
- look into a dictionary the concepts of internal, external, and government.

internal government: action and result of administering and directing a state or institution
based on certain standards

external government: defined as the set of public decisions taken by the government of a State
based on national interests and in relation to the other actors of a country's international
system.

- Discuss what’s the relation between the government and companies?

the relations with the government constitute public affairs of the companies, there is a
relationship with high level companies since they have a government regularization at local,
state and federal levels.
Now, watch the video, make notes and practice your listening skill following the link to the video:
https://www.youtube.com/watch?v=Yj24JwZVd54

After watching the video, discuss and answer the following questions:
- What is the importance of having a good accounting process in a company?
Accounting is a fundamental pillar in the administration of a company. For a company to
function properly it is necessary to have a good business vision and control many factors. One
of the most important is the control of your accounts and your financial situation, since they
are the aspects that will guarantee your continuity and stability.
- What is the purpose of a business?
The purpose is the company's raison d'être. This should reflect the ideal motivations of the
people who work in the organization. It is like the soul of the organization. The purpose should
not be confused with the goals or objectives, which are only vehicles necessary to achieve the
purpose.

- How could you keep your business floating?

Find the root of the problem and remedy it: The open fronts are diverse: decrease in sales or
number of customers, economic losses.
Dispense with what you don't need: Empty offices or warehouses, pay per diems to those who
do not travel, useless business phones. Superfluous expenses should be your priority when
cutting.
Outsource services: Resorting to freelance collaborators who can work from their own home
can be an option when resources do not give to hire a new worker.
- What factors you should take into account when having a business?
Organize the business plan: Schematically establish what we are looking for with our space
and what are the goals that we have set is essential for everything to go under the
conditions we want.
Market research: Knowing what the user is demanding that is ultimately the person who is
going to hire our service is essential to effectively implement our idea.

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
Financial possibilities: One of the points that
sometimes we do not value is the financial
possibilities we have.
The alternative plan: Although you trust a lot in what you are going to do, having an
alternative plan is almost a necessity not to take our first disappointments.

3.3. Reading practice: Reading about the Accounting Cycle.

Before reading you should complete the following meaning chart:

Spelling Spelling Meaning Synonyms

liability Responsabilidad It is a value that is in the conscience of guilty conscience

the person who studies Ethics on the
basis of morality. Put into practice, the
magnitude of these actions and how to
deal with them in the most positive and
comprehensive way to help in the
future is established.
income estado de resultados The statement of income, statement of profit and loss balance
statement economic performance or statement of
profit and loss is a financial statement
that shows in an orderly and detailed
manner how the result of the year was
obtained during a given period.
owner's capital del propietario Stockholders' equity is the right of the possession
equity owners over the net assets that arise
from contributions from the owners,
transactions and other events or
circumstances that affect an entity,
which is exercised through
reimbursement or distribution.
asset Activo it is a system built with goods and Assets and real rights
services, with functional and
operational capabilities that are
maintained during the complete
development of each specific socio-
economic activity.The assets of the
companies vary according to the nature
of the activity developed.
budget Presupuesto A budget is the anticipated calculation Estimate
of the income and expenses related to
an economic activity, this has a goal or
objective that must be realized in a

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
certain time,
usually done for a
year but it is not essential.
cash Efectivo Cash is an element of balance and is Money, banknotes,
part of current assets. It is the most metallic, currency.
liquid element that the company owns,
that is, it is money. The company uses
this cash to meet its immediate
obligations.
cost Costo also called cost, is the economic cost, price, amount,
expense caused by the production of value, expense, rate.
some good or the offer of some service.
This concept includes the purchase of
inputs, the payment of labor,
production and administrative
expenses, among other activities.
depreciation Depreciación it refers to a periodic decrease in the devaluation
value of a material or intangible asset.
This depreciation can be derived from
three main reasons: wear due to use,
the passage of time and old age.
revenue Ingresos It is an increase in economic resources. entry
This should be understood in the
context of assets and liabilities, since it
is the recovery of an asset. Revenue
means increases in your company's net
worth. It may be the increase in the
value of your assets or the decrease of
a liability.
tax Impuesto There are different types of taxes. All tribute, charge, tariff,
mandatory if the taxable event that rate, contribution,
taxes it is carried out. A tax is a tax paid gavel, arbitration and
to the state to support public expenses. rights
These mandatory payments are
required both to natural persons and
legal persons.
payroll nómina de sueldos The payroll is the sum of the financial cast, cast and salary
records of employee salaries, including
salaries, bonuses and deductions. In
accounting, payroll refers to the
amount paid to employees for the
services they provided for a certain
period of time.
invoice Factura Also known as a purchase invoice or account, making,

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
commercial
invoice, it is a
execution and
document that reflects all the
realization
information of a sales transaction
because it shows or details the product
bought or sold.

Read the text and complete the activities below.

What is the accounting cycle?

The accounting cycle is the process of recording

your business’s financial
activities. The accounting cycle looks
back in time at the end of a designated period.
The cycle includes several steps, starting when a
transaction occurs. The cycle ends when you
record the transaction as part of your financial
statements.

The accounting cycle makes accounting easier,

breaking your bookkeeping down into smaller
tasks. It helps you see what you need to
accomplish next.

What are the steps of the accounting cycle?

The following accounting cycle steps can help

you keep financial records.

1. Identify transactions: First, separate your business transactions from all of the transactions
you made. You only want to include transactions related to your company in your financial
records. For example, you won’t record your grocery bill as a business expense in your books.

Use source documents to identify business transactions, such as receipts and invoices. Save these
kinds of financial documents to support your records. As you identify business transactions, decide
which account they fall under.

2. Record transactions in your journal: The journal is where you initially record business
transactions. It is a running list of financial activities, like a checkbook. Track transactions in your
journal chronologically as they happen.

If you use double-entry bookkeeping, record two entries for each transaction. Enter a debit for one
account and a credit for another. The debit and credit should be equal.

3. Post entries to the general ledger: The general ledger is also known as the book of final entry.
General ledger entries are changes made to each account in your books. Using your journal,

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Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
organize transactions into different accounts. For example, if
a customer paid for a product with cash, enter the
transaction under the cash account in your books.

4. Unadjusted trial balance: For your books to be accurate, the debit and credit entries must be
equal. Use an unadjusted trial balance to test if your debits and credits match.

Make a note of each account balance. Add all the debit balances together and all the credit
balances together. If the two totals are not the same, you might have an error in your books. Or,
you might need to make adjusting entries.

5. Adjusting entries: At the end of an accounting period, you might have incurred expenses but
not paid for them yet. And, you might have earned income but not collected it yet. Use adjusting
entries to recognize transactions that have occurred but not been recorded.

For example, you earned interest on a bank account balance. You have not recorded the interest in
your books, but it appears on your bank statement. Use an adjusted entry to recognize the interest
in your books.

6. Adjusted trial balance: Do an adjusted trial balance after making adjusting entries and before
creating financial statements. This step tests to see if the debits and credits match after making
adjusting entries.

7. Create financial statements: Once your accounts are up-to-date, create statements. The
following are common financial statements for small business:

• Income statements compare your profits and losses for the period.
• Balance sheets determine progress by detailing assets, liabilities, and equity.  Cash
flow statements show money coming into and out of the business.

Use your financial statements to measure performance, make improvements, and set goals. You
can also use statements to talk with lenders and negotiate terms with vendors.

8. Close your books: The final step in the accounting cycle is to close your accounting books.
Closing your books wraps up financial activities for the period. Do tasks like updating accounts
payable, reconciling accounts, reviewing your petty cash fund, and counting inventory.

When you close your books, you should get your accounting set up for the next period. Decide
which processes are moving your business forward. Create a calendar for completing future tasks.
File any financial documents from the last period and get rid of old documents that are no longer
useful.

According to the information from the text, tick the following statements, True (T) or False (F)

• The accounting cycle corresponds to the recording of the business’s financial activities. ( T
) The checkbook is one of the tools used to do the post entries record. ( F )

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Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
• As the books need to be accurate, an unadjusted
trial balance verifies whether debits and credits
match. ( T )
• The statements are created as the accounts are up-to-date. ( F )
• The accounting set up for the next period is part of the record transactions process. ( F )
Based on the reading, describe each one of the following accounting concepts:

Transaction

A financial transaction is an agreement, communication or movement carried out between a buyer and a seller
in which an asset is exchanged against a payment. It implies a change in the status of two or more businesses
or individuals in the finances.

Posting

The accounting accounts are the set of documents where all transactions that are made in a company are
recorded and detailed chronologically. They are the basic element of accounting. Each of the transactions
registered in the accounting accounts is known as accounting entries.

Trial balance

A balance sheet is a financial instrument that is used to display the list of total debits and credits of the
accounts, together with the balance of each of them (whether debtor or creditor). In this way, it allows to
establish a basic summary of a financial statement.

Journal entries

It refers to the form that is used to record the transactions made in the company in the accounting. We could
classify journal entries in: Simple journal entries (A debit and a credit).

Financial statements

Also called financial statements, financial reports or annual accounts, they are reports used by institutions to
publicize the economic and financial situation and the changes that it experiences at a specific date or period.

Worksheet

A spreadsheet is a computer program or application that allows the manipulation of data numbers arranged in
tables for the operation on complex accounting, finance and business calculations. ... The first spreadsheet
was created by Dan Bricklin and was called VisiCalc.

Adjusting entries

It is a regularization that the company has to do, usually at the end of the year, to correctly allocate income,
expenses, assets and liabilities to their corresponding years. They are necessary accounting corrections to
obtain the accounting result correctly.

Closing the books

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English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
Once the fiscal year is closed, the mandatory accounting
books must be legalized in the Commercial Registry of the
province in which the company is domiciled. The presentation must be done electronically and the term is 4
months. ... Steps to legalize the annual books in the Mercantile Registry.

3.4 Writing practice

Create a job position advertising for an accountant. As shown in the example

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Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF

4. Extension activity: the extension activities will help you improve your performance in the topics.
You need to reach at least five hours of practice on your own.

Perform a role play based on a job interview given by the instructor. Follow the prompts given below.

- Based on your instructor’s orientation, explore the following website and practice the English
structures. Do at least 2 activities from each topic studied in class and deliver them to your
instructor: http://www.esl-lounge.com/student/grammar-guides/grammar-
preintermediate-4.php#will-going-to

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