TEST YOUR BUSINESS ENGLISH: ACCOUNTING - Part One 1. Complete the following words (see example): 1. This company has supplied goods, but has not received any money from them yet. 2. Companies make this when they sell their goods for more than it costs them to make them. 3. Companies make this when they sell their goods for more than it costs them to make them. 4. Goods which are bought by the company. 5. Goods which the company has available to sell. 6. An amount of money which is taken out of an account. 7. Customers who have received goods but not paid for them yet. 8. A reduction in the price which is offered to customers. 9. THis is the name of the difference between the credit and the debit side of an account. 10. This is drawn up to check that the two sides of the accounts are the same. 11. The cost of transporting goods is called this. 12. The official books for keeping accounts.

CREDITOR P_ _ _ _T L___ P_ _ _ _ _ _ ES S _ _ _K W_ _ _ D_ _ _ _L D_ _ _ _ RS D_ _C_ _ _ _ B_ _ _ _C_ T_ _ _L B_ _ _ _ _ _ C_ _ _ _ _GE L_D_ _ _S

2. Complete the following words: 1. This is the name for buildings, machinery, money in the bank and money owed by A_ _ _ _S customers. D_P_ _ _ _ _ _ _ _N 2. The loss of value of the things in number (1). L_ _ _ 3. Money which is borrowed. I_ _ _ _ _ST 4. The extra money a company or person pays for borrowing money. C_ _ _T_ _ 5. The total sum of money which is supplied by the owners of a company to set it up. D_ _ _W_ _ _S 6. Cash or goods which the owner takes from the company for his own private use. S_ _ _ _S 7. These are bought by people wishing to invest in the company. GOO_ _ _ _ _ 8. The extra amount which is paid for a company above the value of its assets. ACQU_ _ _ _ _ _ _ 9. The purchase of another company. A_ _ _T 10. An official examination of the accounts. B_ _ _ _T 11. A financial plan for the future. B_ _ _ _ _E SHEET 12. A statement of the financial position of the company. 3. Fill in the missing words in the sentences below. Choose from the following. You should use each word more than once. account accounts accountant accounting accountancy 1. Can you check that the figures have been entered correctly in the bank __________________? 2. He's at university studying __________________. 3. The management of the company have not yet decided on their __________________ policies. 4. A bookkeeper writes details of financial transactions in the __________________. 5. Most people in the profession read __________________ magazines and journals in order to stay informed. 6. She's been working as an __________________ with this firm for several years now. 7. The directors of the company approve the __________________ at the end of the __________________ year. 8. The chief __________________ has completed the draft __________________ for this year. 9. Each branch maintains its own full __________________ system. 10. They have opened an __________________ for the consigment to Bombay. 11. __________________ is really not an exact science. 12. A business manager needs some __________________ knowledge in order to understand what he reads in the company __________________. 4. What is the meaning of the phrases in BOLD in the sentences (1-10) below? Choose the correct definition from the list (a-j). 1. How do you account for the sudden fall in the stock value? 2. Agents buy and sell goods on their own account. 3. They gave the solicitor a detailed account of the customer's business deals in the last year. 4. The draft accounts had to be adjusted on account of the discovery that a major debtor had gone bankrupt. 5. Raw materials account for 30% of the manufacturing cost. 6. They are regular customers in this shop and are now able to buy on account. 7. On no account should these figures be released before the board meeting. 8. When making decisions for the future the managers have to take this year's poor performance into account. 9. By all accounts, they will benefit greatly if the deal goes through. 10. The advertising company has now won two new accounts in South Africa. a. people say b. report c. under no circumstances d. consider e. explain f. big customers g. for themselves h. because of i. on credit j. represent

5. Fill in the missing words or phrases in the sentences below. Choose from the following: brought contra carried cleared charges current deposit discrepancies petty cash specimen stopped transaction 1. Small amounts of money which are paid out for things such as petrol, soap and bus fares are usually recorded in the __________________ book. 2. The customer has to pay __________________to the bank for the daily services it provides. 3. Each single movement of the money in the account is known as a __________________. 4. At the beginning of each month the balance from the previous month is recorded at the top of the account as __________________ forward and at the end of the month as balance __________________ forward. 5. The bank statement should be checked against the cash book to make sure the figures are the same and that there are no __________________. 6. If the drawer informs the bank immediately that a cheque has been stolen or lost, the cheque will be __________________ by the bank and no payment will be made. 7. If double entry has taken place within the cash book the item does not need to be entered in another book as double entry and the item is known as a __________________. 8. When a cheque is received and paid into an account it will be debited to the account once it has been __________________. 9. To make sure that cheques have been signed by the account holder the bank checks the signiture against a __________________ signiture which they hold. 10. Holders of a __________________ account are issued with cheques but receive little, if any, interest, while customers with a __________________ account will receive a higher rate of interest. 6. Fill in the missing words in the sentences below. Choose from the folowing. appropriation bonus interim nominal ordinary issued preference preliminary redeemable uncalled 1. This company has issued shares in $5 ................. . 2. At the end of the financial year, profits are first of all allocated to pay the fixed percentage dividends on ................. shares. 3. The ................. shareholders have voting rights but do not have a fixed percentage dividend. 4. The company have decided to issue ................. shares free of charge to their existing shareholders. 5. The company is allowed to issue a total amount of shares known as the authorized share capital or ................. capital. However, the ................. capital may be less than that. 6. There were large ................. expenses in starting the company. 7. They have only asked for some of the amount payable on the shares, so there is still a lot of ................. capital. 8. 2001/2009 written behind a debenture means that it is ................. during that time. 9. The final accounts should include an ................. account which shows how the company will use the profits. 10. After trading for six months, the company paid out an ................. dividend. 7. Choose the correct word or phrase in the following statements about partnerships. 1. If a partner is liable only to the amount of capital he invested he is a ................. partner. a. abilityb. limited c. corporate d. dead 2. The partners want an official agreement about their share in the partnershi, so they are going to draw up a/an ................. of partnership. a. deed b. transaction c. title d. instrument 3. If there isn't an official written agreement, but a partner signs a balance sheet which shows that profits have not been shared equaly, agreement would be ................. , a. implied b. stated c. drawn d. believed 4. Partners can choose to produce fixed capital accounts or ................. capital accounts. a. changeable b. moving c. varible d. fluctuating 5. A partner who does not take an active part in the business is called a ................. partner. a. silent b. dead c. sleeping d. inactive 6. When partners can't or don't want to continue in partnership there is a ................. of the partnership. a. divorce b. decomposition c. amalgamation d. dissolution 7. When this happens a ................. Account is opened to record the transactions. a. Sales b. Realization c. Distribution d. Liability 8. When the partnershipcomes to an end, the debts or liabilities are ................. . a. discharged b. disposed c. distributed d. dissolved 9. One partner, who owes the partnership money, will have to cancel his ................. to the partnership firm. a. deal b. claim c. indebtness d. articles