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    This document contains three vocabulary exercises testing knowledge of basic accounting terms. Exercise 1 defines terms like income, expenditure, budget, assets, liabilities, debit, credit, and more. Exercise 2 matches accounting specialisms like auditing, tax accounting, insolvency, and forensic accounting to their meanings. Exercise 3 matches accounting terms like revenue, cost of goods sold, EBITDA, operating expenses, retained profit, intangible assets, inventory, current assets, fixed assets, and accrued items to their definitions. The document concludes with a unit review asking about management's responsibility for financial statements, limitations of the balance sheet, usefulness of the cash flow statement, and financial statement articulation.

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    Unit 19- VOCABULARY

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    This document contains three vocabulary exercises testing knowledge of basic accounting terms. Exercise 1 defines terms like income, expenditure, budget, assets, liabilities, debit, credit, and more. Exercise 2 matches accounting specialisms like auditing, tax accounting, insolvency, and forensic accounting to their meanings. Exercise 3 matches accounting terms like revenue, cost of goods sold, EBITDA, operating expenses, retained profit, intangible assets, inventory, current assets, fixed assets, and accrued items to their definitions. The document concludes with a unit review asking about management's responsibility for financial statements, limitations of the balance sheet, usefulness of the cash flow statement, and financial statement articulation.

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    21 views2 pages

    Unit 19 - VOCABULARY

    Uploaded by

    Linh Vũ
    This document contains three vocabulary exercises testing knowledge of basic accounting terms. Exercise 1 defines terms like income, expenditure, budget, assets, liabilities, debit, credit, and more. Exercise 2 matches accounting specialisms like auditing, tax accounting, insolvency, and forensic accounting to their meanings. Exercise 3 matches accounting terms like revenue, cost of goods sold, EBITDA, operating expenses, retained profit, intangible assets, inventory, current assets, fixed assets, and accrued items to their definitions. The document concludes with a unit review asking about management's responsibility for financial statements, limitations of the balance sheet, usefulness of the cash flow statement, and financial statement articulation.

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    VOCABULARY

    EXERCISE 1. Which basic accounting words are defined below?


    1. all the money received from business activities during a given period
    A. assets B. income C. transactions
    2. all the money that a business spends on goods or services during a given period
    A. debts B. expenditure C. liabilities
    3. a financial operating plan showing expected income and expenditure
    A. account B. budget C. financial statement
    4. anything owned by a business - cash, buildings, machines, equipment, etc.
    A. asset B. income C. revenue
    5. all the money that a company will have to pay to someone else in the future, including debts,
    taxes and interest payments
    A. debts B. expenditure C. liabilities
    6. an entry in an account, recording a payment made
    A. credit B. debt C. debit
    7. an entry in an account, recording a payment received
    A. credit B. debit C. income
    8. adjective describing something without a material existence, which you can't touch
    A. current B. intangible C. tangible
    9. adjective describing a liability which has been incurred but not yet invoiced to the company
    A. accrued B. deferred C. receivable
    10. delayed or postponed until a later time
    A. deferred B. payable C. retained
    EXERCISE 2. Here are four accountancy specialisms. Match these words and phrases
    from the article (1-4) with their meanings (a-d).
    1. auditing a) when a company's financial records are officially checked
    because the illegal activity is suspected
    2. tax accounting
    3. insolvency
    4. forensic accounting b) an accountant working in this area acts for a person or
    company that is no longer able to pay its debts or a company
    whose liabilities exceed its assets
    c) preparing a person's or company's financial information in
    order to calculate the proportion of their profit that they must
    pay to their government
    d) checking an organization's activities or performance or
    examining a person's or organization's accounts to make sure
    that they are true and honest

    EXERCISE 3. Match the terms with their definitions.

    1. Revenue a. stands for Earnings Before Interest, Tax, Depreciation and


    2. Cost of goods sold Amortization.
    3. EBITDA b. may also include 'marketable securities' (= shares intended
    4. Operating expenses for disposal within one year).
    5. Retained profit c. are those where an expense has been incurred, but the money
    is not yet paid.
    6. Intangible assets
    d. income / turnover / sales / the top line
    7. Inventory e. (= direct costs) includes manufacturing costs, salaries of
    8. Current assets manual (= blue-collar) workers etc.
    9. Fixed assets f. the value of raw materials & stock.
    10. Accrued items g. may also include long-term financial investments.
    h. include patents, trademarks & 'goodwill' (reputation,
    contacts and expertise of companies that have been bought).
    i. is transferred to the Balance Sheet, where it joins the
    amounts from previous years.
    j. (= indirect costs/overhead) include salaries of sales and
    office staff, marketing costs, utility bills etc.

    UNIT REVIEW
    1. What is management’s responsibility for the financial statements?
    2. What are the limitations of the balance sheet?
    3. Why is the cash flow statement useful to the users of the financial statements?
    4. What is financial statement articulation?

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