Tiếng anh chuyên ngành kế toán (tr1 14)

Unit 1: Accounting Basics

ACCOUNTING BASICS

In this unit, students will be provided knowledge to
write and talk about an overview of accounting main
issues, basic terms and concepts related to accounting.
Trong bài này, sinh viên sẽ được cung cấp các kiến thức
ngôn ngữ để nói và viết về các vấn đề tổng quan trong
kế toán, các thuật ngữ và khái niệm cơ bản về kế tốn.

UNIT OBJECTIVES - MỤC TIÊU
• Provide students with an overview of accounting main issues, basic terms and concepts related
to accounting.
Cung cấp cho sinh viên cái nhìn tổng quan về các vấn đề cơ bản trong kế toán, các thuật ngữ
và khái niệm cơ bản trong kế tốn.
• Provide for students the way of organizing an academic essay.
Cung cấp học sinh phương pháp tổ chức viết một bài luận.
• At the end of this unit, students will be able to talk and write about accounting main issues.
Sau khi kết thúc bài học này, sinh viên có thể nói và viết về các vấn đề cơ bản trong kế toán.
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)

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Unit 1: Accounting Basics

Match the words or expressions in the column A with their definition in column B.
The suggested time to do this exercise is 10 minutes.

Column A

Column B

1. Ledger

A

The amount of money written on the left side of the ledger

2. Debit

B

The amount of money written on the right side of the ledger

3. Credit

C

The recording of revenues and expenses may take place before
related cash is received.

4. Cash method

D

A book in which the monetary transactions of a business are posted in
the form of debits and credits. A ledger includes the record of
accounts transferred as final entry from original postings.

5. Accrual method

E

The recoding of revenue and expenses takes place when the related
cash is received

6. Balance sheet

F

A statement reporting the organization’s economic performance over
a specific period of time.

7. Income
statement

G

The basis of the standard accounting system in which each transaction
is recorded in at least two accounts: debit and credit.

8. Cashflow
statement

H

The summary of the organization’s uses of funds (assets) and sources
of funds (liablilities and equity) at a specific point of time

9. Double-entry
accounting

I

The basic formula of the double-entry book keeping system. It shows
how assets were financed either by borrowing money from someone
else (liability) or by paying your own money (shareholder’s/ owner’s
equity)
Assets = Liabilities + Shareholder’s/ owner’s equity

10. Accounting
equation

J

A statement explaining how an organization obtains cash and how it
spend cash and other factors that may affect cash positions.

11. Revenue

K

A daily record of events or business

12. Book keeping

L

An evaluation of a person, organization, system, process, project or

product in order to certain the validity and reliability of information,
and also provide an assessment of a system’s internal control.

13. Creditor

M

The recording of all financial transactions undertaken by an individual
or organization.

N

the amount of money that a company receives from its activities in a
given period, mostly from sales of products and/or services to customers

O

A party (e.g. person, organization, company, or government) that has
a claim to the services of a second party. The first party, in general,
has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property or service.

14. Audit

15. Journals

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Unit 1: Accounting Basics

Text A: Read text A: Accounting Basics and do exercises 2.1, 2.2 below. The
suggested time for reading the text and completing the exercises is 30 minutes.

ACCOUNTING BASICS
Definition of Accounting
ccounting is the process of financially measuring,
recording, summarizing and communicating the
economic activity of an organization. It is often referred to
as “the language of business” and, like any other language,
it has its own unique vocabulary and rules. Some people
think of accounting as a highly technical field understood
only by professional accountants. However, technical
accounting terms such as assets, liabilities, equity, revenue,
expense, income and cash flow are widely used
throughout the micro-finance field. Thus it is important
that anyone involved in making business decisions understands the basic accounting concepts
which form the basis of financial management.
Accounting is the process
ccounting is a service activity. It provides financial information about an organization’s
economic activities which is intended to be used as a basis for decision making. It provides
the required to answer questions such as: What are the resources of the organization? What
debts does it owe? Are its operating expenses too high relative to revenue? Are the organization’s
current lending activities generating enough income for it to be sustainable? Not everyone
needs to understand the intricate details of an organization’s accounting system; however, it
is helpful for employees to understand the framework within which accounting operates.
Managers, in particular, need to know how to interpret the information accounting provides.
Based on this information, managers can analyze the financial status of their organization and
manage the organization’s finances to ensure future financial stability.

A

A

Role of Accounting
ccounting falls into two general categories: financial
accounting and management accounting. Financial
accounting presents a summary view of the financial results
of past operations. Financial accounting reports are aimed at
external audiences although they are widely used internally
as well. Management accounting information is tracked and
presented at a much more detailed level, such as by programme or branch. Projected
financial information is also a part of management accounting and is aimed primarily at
internal audience. Management reports are prepared frequently and report on an on going
basis the differences between planned and actual results.

A

Financial Statements
he preparation of financial statements is virtually the last stepin the accounting process
but it is an appropriate point to begin studying accounting in order to understand what will
be produced. Financial statements are the primary means through which an organization
communicates information about its economic activities. The purpose of these statements is to
provide useful financial information to parties such as banks, investors, suppliers, governments,
etc., who may make decisions affecting the organizations’ operations or otherwise influence the

T

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Unit 1: Accounting Basics

direction of its activities. Financial
statements are means of conveying a
Note:
concise picture of the financial position of
The Statement of Changes in Financial Position
the organization. An individual who has
is not described until after the recording and
a clear understanding of these statements
summarizing of economic transactions is
will understand better the purpose of
explained.
earlier steps in the process.
The three most widely used financial
The first two statements are explained earlier.
statements are the Balance Sheet, the
Together, these statements summarize all of
Income Statement and the Statement of
the information contained in the organization’s
Changes in Financial Position. The Balance
accounts.
Sheet is a summary of the economic
resources of an organization and the
claims against those resources at a specific point in time. The Income Statement reports the
organization’s economic performance over a specified period of time.
The Statement of Changes in Financial Position reports the organization’s sources and uses
of funds (also referred to as the Statement of Changes in Sources and Uses of Funds or the
Cash Flow Statement). It explains how an organization obtains cash (sources of funds) and
how it spends cash (use of funds) including the borrowing and repayment of debt, capital

transactions, and other factors that may affect the cash position.
(Source: />definition_accounts.pdf, retrieved on 15 December, 2009)

2.1 Answer the following questions based on the information in text A.
1. What is Accounting?
2. Why is it important for business people to understand the basic accounting concepts?
3. What kinds of information does accounting activity provide?
4. What does the accounting information help managers in the business management?
5. Who are financial accounting aimed at? How about management accounting?
6. What kinds of information about the company do financial statements provide?
7. What are the most popular financial statements?
2.2 According to text A which of the following sentences are (T) or false (F).
Correct the false information.

Questions
1. Accounting rules and terms are very technical and only professional accountants
can understand.
2. Accounting activity brings the information about the income and the spending
of the company.
3. As a manager, understanding accounting system entails being able to interpret
the information accounting provides.
4. People like investors and bondholders use management accounting reports
to make their investment decisions.
5. One who can’t read the financial statements can’t understand the accounting
process.
6. Statement of changes in sources and uses of funds is part of the statement of
changes in financial position.
4

T/F

Unit 1: Accounting Basics

Text B: Read text B and do exercises 2.3, 2.4, 2.5 below. The suggested time for
reading the text and completing the exercises is 40 minutes.

ACCOUNTING POLICIES AND STANDARDS
Valuation and measurement the same methods every year, Historical cost and accounting
unless there is a good reason to
nvestors in companies want to
he aim of accounting standards
change a policy: this is known
know how much the companies
is to provide shareholders
as the consistency principle. The
are worth, so companies regularly
policies also have to be disclosed with the information that will
have to publish the value of their
or revealed to the shareholders: allow them to make financial
assets and liabilities. Companies
the Annual Report will contain decisions. This is one reason
also have to calculate their profits
a ‘Statement of Accounting why in many countries accounting
Policies’ that mentions any follows the historical cost
changes that have been made. principle: companies record
This enables shareholders to the original purchase price of
compare profits and values assets, and not their (estimated)
current selling price or replacewith those of previous years.
ment cost. This is more

Areas in which the choice of objective, and the current value
policies can make a big difference is not important if the business
or losses: their managers need to the final profit figure include is a going concern – a successful
this information, and so do depreciation – reducing the value company that will continue to
shareholders, bondholders and of assets in the company’s do business – as its assets are
the tax authorities. Companies accounts, the valuation of stock not going to be sold, or do not
can choose their accounting
currently need to be replaced.
policies – their way of doing their
However, some countries with
accounts. There are a range of
regular high inflation, e.g. in
methods of valuation – deciding
South America, use inflation
how much something is worth
accounting systems that take
– and measurement – determining
account of changing prices. One
how big something is – that are
system used is replacement cost
accepted by law or by official
accounting, which values all
accounting standards. In the USA,
there are Generally Accepted or inventory, and the making of assets at their current replacement
Accounting Principles (GAAP). provisions – amounts of money cost – the amount that would
have to be paid to replace them
In most of the rest of the world
deducted from profits – for now.
there are International Financial
future pension payments.

Reporting Standards (IFRS), set
by the International Accounting As there is always more than
Standards Board. These are one way of presenting accounts,
technical rules or conventions the accounts of British companies
– accepted ways of doing things have to give a true and fair
that are not written down in a law. view of their financial situation
Although businesses can choose – meaning there are various
among different accounting possibilities – rather than the
policies, they have to be true and fair view – meaning
consistent, which means using only one is possible.

I

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Unit 1: Accounting Basics

2.3 Match the two parts of the sentences
1. Company’s managers, investors, creditors a. and not their current value, is recorded in
and the tax authorities all
accounts.
2. There are different ways of doing accounting b. need to know the current market value of
but companies have to be consistent,
its assets.
3. Companies have to disclose or make c. need to know about the size of profits or
known
losses.

4. The historical cost principle is that the price d. which accounting methods they are using.
paid to buy assets,
5. A going concern usually doesn’t

e. which means regularly using the same
methods.

2.4 Are the following statements true or false?
1. Companies are told which accounting policies to use.
2. Companies can change their accounting policies whenever they like, as long as they
disclose this in their Annual Report.
3. Companies could produce several profit figures, depending on how they depreciated their
assets, valued their inventory, etc.
4. There is only one correct interpretation of a company’s financial position, and company
accounts must show this.
5. In many countries, companies do not record the current value of their assets.
6. In countries with high inflation, companies value their assets at their current replacement
cost.
2.5 Complete the table with words from the text and related forms
Put a stress mark in front of the stressed syllable in each word. The first one has
been done for you.

Verb

Noun(s)
calcu’lation

Adjective
-

-

consistent

-

conventional

measure

-

present

valuable

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Unit 1: Accounting Basics

You are now listerning to a lecture on accounting overview. Listen carefully
and do the exercices 3.1, 3.2, 3.3 below.

3.1 Listen to the lecture the FIRST time and answer the questions
1. Why is accounting called the ‘language of business’?
....................................................................................
2. How is a standardized accounting system achieved?
....................................................................................
3. What are revenues and expenditures?

...................................................................................
4. In what ways are the balance sheet and the income statement different?
...................................................................................
5. How are accountants classified in the United States?
...................................................................................
6. What kind of services do public accountants provide?
...................................................................................
7. For whom do private and governmental accountants work?
...................................................................................
3.2 Now listen to the lecture the SECOND time and circle the answer that best
completes each of the sentences below

1. Accounting information is used by .................. to help them make financial decisions.
a. managers
b. potential investors
c. creditors
d. all of the above
2. Regardless of the type of business or the amount of money involved:
a. all companies use identical accounting systems
b. balance sheets are more important than income statements
c. common procedures are used in handling financial information
d. no standardized accounting system is employed
3. Business monetary transactions are summarized in:
a. bank books
b. financial statements
c. computers
d. cash registers
4. Public accountants may earn the title of CPA by:
a. becoming governmental accountants
b. paying a fee

c. fulfilling rigorous requirements
d. obtaining a Bachelor of Arts degree in accounting.
5. Private and governmental accountants are paid on a ............. basis.
a. salary

b. monthly

c. fee

d. weekly
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Unit 1: Accounting Basics

3.3 Listen to the first part of the lecture again and fill ONE word in each blank below
An accounting overview
Hi everyone, accounting is frequently called the ‘language of business’
because of its ability to communicate financial information about
an organization. Why is called so? Various (1)………... .parties,
such as managers, potential investors, (2)…..…, and the government,
depend on a company’s accounting system to help them make
informed financial decisions. An effective accounting system,
therefore, must include accurate (3)………., recording, classifying,
(4)…….., (5)………….and reporting of information on the financial
status of an organization.
In order to achieve a standardized system, the accounting process
follows accounting principles and rules. Regardless of the type of business or the amount
of money (6)…….., common procedures for (7)…….. and presenting financial information
are used. Incoming money (revenues) and outgoing money (expenditures) are carefully

monitored, and (8)………… are summarized in financial statements, which (9)……. the
major financial activities of an organization.
Ok. As you may know, two common financial statements are the balance sheet and the
income statement. The balance sheet shows the financial position of a company at one
point in time, while the income statement shows the financial performance of a company
over a period of time. Financial statements allow interested parties to (10)……. one
organization to another and/or to compare accounting (11) ……. within one organization.
For example, an (12)…….. may compare the most recent income statements of two
corporations in order to find out which one would be a better investment.

4.1

Choose the best alternative to complete the sentence. The suggeted time for
completing the exercises is 10 minutes

1. It’s up to the accountant to ................. the various financial statements.
a. interpret

b. intercept

c. invent

d. translate

2. The bookkeeper keeps a record of every financial ................. .
a. action

b. transaction

c. entry

d. transcription

3. It’s essential to ................. the invoice number in any correspondence.
a. estimate

b. quote

c. say

d. tell

4. We’re in ................. with our supplier over this invoice so don’t pay it until you hear
from me.
a. argument
c. agreement
8

b. dispute
d. distress


Unit 1: Accounting Basics

5. We send a ................. to customers who haven’t settled their accounts.
a. reminder

b. remainder

c. remembrance

d. memory

6. If these figures could be ................. into parts and labor it would make them easier to
understand.
a. set up

b. broken down

c. rounded up

d. laid down

7. This company has a weekly ................. of about $100,000.
a. pay

b. payroll

c. salary

d. wage

8. By examining the balance ................. and other documents we were able to find out that
the company was not doing as well as they claimed.
a. slip

b. ledger

c. account

d. sheet

9. The rent for the office is already 3 months .................!
a. overtime

b. in the red

c. in demand

d. overdue

10. Due to the economic climate we have had to ................. more bad debts this year than ever
before.
a. tell off

b. write off

c. find out

d. note down

11. Do they have enough working ................. to keep trading?
a. capital

b. expenses

c. accounts

d. currency

12. Such items as buildings and machinery are known as ................. assets.
a. current

b. hidden

c. fixed

d. liquid

4.2 Complete the text using the words in the box. The suggeted time for completing the
exercises is 10 mitutes

credits

double-entry

journals

posted

transactions

trial balance

debits

invoice

ledger

receipt

transferred

vouchers

Bookkeeping
Bookkeepers record every purchase and sale that a business makes, in the order that they
take place, in (1) .............................. . At a later date, these temporary records are entered in
or (2 ).............................. to the relevant account book or (3 )............................. . Of course
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Unit 1: Accounting Basics

the ‘books’ these days are likely to be computer files. At the end of an accounting period, all
the relevant totals are (4 ).............................. to the profit and loss account. (5)
.............................. bookkeeping records the dual effect of every transaction – a value both
received and parted with. Payments made or (6) .............................. are
entered on the left-hand (debtor) side of an account, and payments
received or (7) .............................. on the right-hand side. Bookkeepers
will periodically do a (8) .............................. to test whether both sides
of an account book match. In most business (9).....................................,
the seller of goods or services sends the buyer a bill or (10)
.............................. , and later a 11 ............................ acknowledging
payment. Businesses are obliged to retain the documents – known as
(12) .............................. – that support or prove an item in an account,
and make them available to the internal and external auditors who
check the accounts. Bookkeepers are not to be confused with librarians,
who also keep books, or with bookmakers, who ‘make books’ in the sense that they accept

bets (on horse races, etc.) and traditionally wrote them down in a book like a bookkeeper’s
journal. Accountants, unlike bookkeepers, analyze financial records, and decide how to
present them.

5.1

Match the remarks on the left with the responses on the right, check your
answers with a partner, then practice the dialogue together

1. You’re an accountant? Does
that mean you spend your
time writing down credits
and debits, and adding up
columns of figures all day?
Can’t be exciting.
2. So what do accountants do?
3. You mean the shareholders?
4. So do you prepare reports
for managers?
5. And the cost of the accounts
department!
6. You mean what they do in
the front of shops?
7. Ah, now that’s interesting...
8. Not at all. As a matter of
fact, I’m a tax inspector...
10

A. Ha! Now you’re going to ask me to tell you how you
can pay less tax.

B. No, managerial accountants do, but I work in cost
accounting. We have to work out the real cost of each
item the company makes, which means finding a way
to allocate all the overheads to different products.
C. No, not only. Managers always need the help of
accountants. They need financial statements, and
budgets, and cash-flow projections, and so on, to
measure the success of what they’ve done, and to
make decisions for future projects.
D. Of course. But as I said, we’re necessary, and
useful. Haven’t you heard of ‘window dressing’?
E. Sure, but it’s also another name for what some
people call ‘creative accounting’ – making a company’s
financial situation look as good as possible in the
balance sheet, and so on. It’s not very legal, but it
happens. The accountants in my firm also have lots
of wonderful ways of reducing our tax bill.
F. That’s bookkeeping. Not quite the same thing.
G. Well, accountants do record cash flows, and the value
of assets and liabilities, and they calculate profits
and losses, and so on. But it’s not just writing down
numbers. We’re really in the business of supplying
people with information.


Unit 1: Accounting Basics

5.2 Based on the information in this unit, answer the following questions with your
own words

1. Give a brief definition of accounting. What is accounting
involved in?
2. How many kinds of accounting are there? What are
their differences?
3. Give a brief summary of the three main financial
statements.
4. Do all companies follow a common way of accounting or
do they choose their own way of accounting? Explain
consistency principle and historical cost principle.
5. Tell briefly about bookkeeping process.

6.1 How to write an essay
1. Organization of an essay
An essay has three main parts: an introduction, a body and a conclusion.
The introductory paragraph attracts the reader’s
attention and informs the reader what your
main topic of discussion will be. An introductory
paragraph has two parts:
• General statement: Several general sentences that
give background information on your subject and
gradually lead your reader into your specific topic.
• A thesis statement that states the subdivisions
(topic of each paragraph). It may also indicate
your method of development.
The body of an essay discusses your subdivided topics, one by one. It contains as many
paragraphs as necessary, often 2 or more explain the controlling ideas in the thesis
statement.
The concluding paragraph reminds your reader of what you have said. Remember to use
a “conclusion” transition signal. Your concluding paragraph has a summary of the main
ideas or a restatement of the thesis in different words and your final comment on the topic.

2. Outlining an Essay
Always make an outline of an essay before you begin to write. See the organization of an
essay model below:

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Unit 1: Accounting Basics

I. INTRODUCTION
General Statements
Thesis statements

II. BODY
- Paragraph 1:

- Paragraph 2:

- Paragraph 2:

A. Topics sentence

B. Topics sentence

C. Topics sentence

1. Support

1. Support

1. Support

2. Support

2. Support

2. Support

3. Support

3. Support

3. Support

(Concluding sentence)

(Concluding sentence)

(Concluding sentence)

III. CONCLUSION

Restatement or summary
of the mains points; final
comments
3. Writing and revising the Essay
Writing is a process which requires revision again and again in order to produce a good final
product. Follow 3 steps below for your writing improvement.
- Firstly, write the first rough draft of your essay from the outline. Skip lines in order to have
enough space to make changes.

- Secondly, revise the first draft for content and organization, and write a second draft.
- Thirdly, proofread the second draft for grammar, sentence structure, and mechanics. Write
as many drafts as necessary before the final copy.
6.2 Writing practice
Write an essay about the main issues in accounting by the using information from
this unit as well as the additional sources from books or internet websites.
The suggested time for completing the exercise is 45 minutes.

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Unit 1: Accounting Basics

English terms

Vietnamese equivalents

A
- Accounting principles
- Annual Report
- Accounting system

- Các nguyên tắc kế toán
- Báo cáo thường niên, báo cáo hàng năm
- Hệ thống kế toán

B
- Balance sheet
- Bought ledger
- Bookkeeper

- Bảng tổng kết tài sản, bảng kết toán
- Sổ cái mua vào
- Nhân viên kế toán (lập hồ sơ thu chi, quản lý các
sổ sách kế tốn)

C
- Credit
- Consistency principle
- CPA (Certified Public Accountant)

- Khoản có, bên có; ghi có
- Ngun tắc nhất qn
- Kế tốn viên được xác nhận
(kế toán viên đã qua các kỳ kiểm tra nghề nghiệp
và là thành viên của Hiệp hội các kế toán viên
được xác nhận)

D
- Debit
- Debtors
- Depreciation
- Double-entry bookkeeping

- Khoản nợ, bên nợ; ghi nợ
- Con nợ, tài khoản phải thu từ khách hàng
- Khấu hao
- Kế toán kép

E

- Expenditure

- Chi tiêu, chi phí

F
- Financial statements
- Financial status
- Financial position

- Các báo cáo tài chính
- Khả năng tài chính
- Tình trạng tài chính

G
- Going concern concept
- Generally Accepted Accounting Principles

- Khái niệm doanh nghiệp phát triển bền vững
- Những nguyên tắc kế toán được mọi người chấp
nhận, phổ cập

I
- Income statement
- Inflation
- Inventory (stock)

- Báo cáo thu nhập
- Lạm phát
- Hàng hoá, nguyên vật liệu lưu kho
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Unit 1: Accounting Basics

H
- Historical cost

- Giá gốc

J
- Journals

- Sổ nhật ký, sổ nhật biên

N
- Nominal ledgers

- Sổ cái danh nghĩa

P
- Provisions

- Dự phòng

R
- Revenue
- Replacement cost accounting

- Doanh thu
- Kế tốn chi phí thay thế

T
- Tax computation
- Take account of
- To buy on credit
- To sell on credit
- Trial balance

14

- Việc tính tốn thuế
- Xét đến, tính đến
- Mua chịu
- Bán chịu
- Cân đối kiểm tra