1-communicating accounting information through financial statements

1-what is the definition of accounting ? Accounting is an information system designed to provide financial data to interested parties for decision-making purposes . 2-what is the final result of the accounting process? Is the preparation of various financial statements that serve as important communication devices . 3-what are the tow main types of financial statements? Internal statements and external statements. 4- at whose request are internal statements prepared? Internal statements are prepared at the request of management for the sole use of managers . 5- for whom are external statements prepared ? External statements are to prepared to use by outside parties such as creditors and stockholders. 6-what is the role of the GAAP? GAAP serve as guides in the preparation of the statements. 7-what are the twofold purpose of the financial statements? (1)the effect of operating activities . (2)the business financial position . 8-what are the four main financial statements prepared for use by external decision-makers? 1-Balance sheet. 2- income statements. 3-Retained earnings statement. 4- statement of cash flows . 9-to whom does accounting provide financial data? Interested parties for decision-making purpose.

* fill in the gaps with words from the text:

1-accounting is an information system designed to provide financial data to interested parties for decisionmaking decision. 2-these financial statements are generally classified into tow types internal statements and external statements. 3-internal statements are prepared at the request of management for the, sole use of mangers within the firms. 4-extrnal statements are designed and prepared specifically for used outside porticos. 5-external financial statements must be prepared in accordance with GAAP 6-GAAP:generally , accepted , accounting principles 7-G,A,P.serves as guides in the preparation of the statement

* give the nouns of following words:

communicate (communication) provide (provision) inform (information) classify (classification) state (station) prepare (preparation)

2-balance sheet
1-what does the balance sheet report? the balance sheet report the financial position of a business at a specific point in time. 2-by what is financial position reflected? financial position reflected by the amount of the business' assets (resources)the amount of ,and the amount of its owners' equity. 3-what does the balance sheet heading indicate? the balance sheet heading indicates the name of the business the name of the statement, and the data of the statement . 4-what are the three main sections of the balance sheet? the three main sections of the balance sheet 1-assets 2-liabilities 3-stockholders'equity 5-what are assets? assets are the cash and noncash resources owned by a business. 6-what are the tangible assets ? they may be tangible assets (such as land, buildings, and equipment ) or intangible assets (such as land claims, accounts receivable, patent rights, or rights to use leased assets).

* fill in gaps with words from the texts:

1- the balance sheet reports the financial position of a business at a specific point time . 2-the balance sheet heading indicates the name of the business the name of the statements and the data. 3-assets are cash and noncash resources owned by a business. 4-they may be tangible assets and intangible assets. 5-liabilities are the debts owed by a business to outside parties . 6-owners' equity is the owners' interest in the assets of the business. 7-creditors' claims take legal precedence over owners' claims.

* give the verbs of the following words:

specific (specify) effect (effect) accounting (account) economic (economies) equation (equate) performance (perform)

* give the opposites of the following words by adding the prefixes :non-or in:
correct (incorrect) sense (nonsense) dependent (independent) resident (nonresident) direct (indirect) stop (nonstop)

3-lncome statement
1-what is the income statement? the income statement is designed to report the results of earning activities. 2-what is the net income? net income for the period is the excess of revenues over expenses. 3-what does the heading of the income statement indicate? the heading of the income statement indicate the name of the business, the name of the statement. 4-what are revenues? revenues are inflows of assets to an entity resulting from the sale and delivery of goods or the rendering of services by the entity. 5-how are revenues measured? revenues are measured by the amount of cash or other assets received.

* change the following sentences from passive to active:

1-the income statement is designed to report the results of earning activities. accountants design the income statement to report the results of earning activities. 2-revenues are defined as inflows of assets. we define revenues as inflows of assets. 3-net income is defined as the excess of revenues over expenses. we defined income as the excess of revenues over expenses. 4-expenses are defined as outflows. we define expenses as outflows.

* give the abstract nouns of the following :

deliver (delivery) measure (measurement) definition (define) equipment (equip) earn (earning) receive (reception) reference (refer) estimation (estimate) express (express) represent (representation) depreciation (depreciate) accompaniment (accompany)

* give the verbs of the following words:

4-summary
* test your comprehension :say whether each of these statements in true (t)or false(f)if they are false, find a reason . base your answers on text:
1-accounting can be described as three-stage activity.(false)>>> four 2-after the transactions are journalized they are classified through the use of ledger.(true) 3-the information recorded in a journal is referred to as a transaction.(true) 4-the entries made a journal are randomly ordered. (false) >>> sequence 5-a ledger is an ordinary account book.(false) >>> special 6- the expense and revenue account appear on the balance sheet.(false) >>> income 7-only three statements are prepared at the end of the accounting period. (false) >>> four 8-another name for the statement of financial position is the balance sheet.(true) 9-each entity is free to use its own system for presenting financial. (false) >>> all entities use

* make a summary : refer to the passage to complete the following statements:

1-the schedule showing the balance of each account at the end of the period is known as the trial balance. 2-the major financial statements are balance sheet income statement cornflower retune earrings 3-the statement that shows net income for the period is known as the income statement 4-the statement that shows net loss for the period is known as income statement. 5-to show the change in capital of a business the balance sheet statement is used. 6-the balance sheet contains assets and liabilities and owners equity.

5-the accounting profession

1-accounting provides financial information which is a basic requirement of decision makers. 2-because the field of accounting comprises a number of specialist areas, it is often referred to as a multi disciplinary. 3-specialization within the field , of accounting involves financial , managerial, governmental. 4-throughout the accounting career, an accountant may function as a bookkeeper , controller , auditor, accountant.

* classify each of the following words as noun, verb, adjective or adverb the other forms -you may give more than one noun-where possible:
e.g., accounting (noun)or accountancy to account (verb) accountable (adjective) management (noun) relate (verb)

profession (noun) classifying (noun) specialist (noun)

financial (adjective) pricing (noun) internal (adjective)

6-accunting and societal goals

1- what aspects of management can benefit from accounting? Though providing information to managers, the operations of large and complex business organizations can be planed and controlled. 2-does and accountant contribute to the development of a taxing system ?how? A complex modern taxing system would not be possible without accounting system and accenting information . 3-name three major uses of capital obtained through the taxing system? Services such as roads, national defense; education, health programs and a multitude of others .

1-answer 2-appoint 3-arrange 4-export 5-pay 6-solve 7-type 8-welcome

a. good b. a letter c. a meeting d. a new manger e. the phone f. problem g. tax h. a visitor

1/e 2/d 3/c 4/a 5/g 6/f 7/b 8/h 5