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9. Find and read sentences explaining the title of the text.

10. Find in the text sentences expressing such ideas.

  1. Accounting system plays an important role in an economy.

  2. We can divide accounting into three phases.

  3. Accounting, in the true sense of the word, extends far beyond the actual making of records.

  4. Financial statements indicate the financial health of the firm.

  5. Balance sheet is one of the main documents of the firm.

  6. Changes in the balance sheet are made according to the principle of double-entry bookkeeping.

  7. The double entry system has two components.

  8. Income statement is another financial document of the firm.

11. Checking facts and ideas using such expressions: Exactly; Right you are; I agree with you; That goes without saying; There’s no denying it; No doubt whatever; I can’t agree with you; I’m against it; You are mistaken; Hardly.

  1. A balance sheet is a financial statement that reports the financial condition of a firm at a specific time.

  2. The method used to record and summarize accounting data into reports is called an accounting system.

  3. One of the purposes of accounting is to help managers evaluate the financial condition of the firm so that they may make better decisions.

  4. Assets and liabilities, profits or losses are listed in income statement.

  5. Changes in the income statement are made according to the principle of double-entry bookkeeping.

  6. The principle of double-entry bookkeeping made its appearance in the 17th century in Northern Germany.

  7. The principle of double-entry bookkeeping states that each transaction must be recorded on the balance sheet as two separate entries so that the accounting equation will hold at all times,8 the totals of each side will always equal one another, and that this will always be true no matter how many transactions are entered into.

  8. The double entry system is a part of income statement.

12. Find the definitions to the next terms: accounting system, book-keeping, accounting, liabilities, balance sheet.

  1. The methods used to record and summarize accounting data into reports are called…

  2. It is the recording of all money received into and paid out of a company, including profit and loss account and balance sheet.

  3. It is a statement showing the financial position of a business at a certain date, usually at the end of the financial year.

  4. It is a system of recording the money value of business dealings, income and expenditure accounts to enable the management of a concern to see the financial position at any time.

  5. These are the debts owned by a business to its creditors and to its owners.

13. Divide the text into logical group and give them titles.

14. Single out the main points of the text. Use the following opening phrases.

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of… .