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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