1. THE ACCOUNTS - MỞ ĐẦU

Brainstorm a list of a company’s assets, debts and capital resources. Land Stocks Stocks Land Assets Assets Buildings Buildings Owner’s equity Owner’s equity Bank loans Bank loans Liabilities Liabilities 13

2. TỪ VỰNG

A. Chọn lựa thuật ngữ đúng nhất so với giải nghĩa cho sẵn.

1. Amounts to be received in the future for goods or services sold on credit.

A. Accounts payable                    B. Withdrawals

C. Income tax                               D. Accounts receivable

2. Payment for the use of someone else's property.

A. Rent                                         B. Revenue

C. Income tax                               D. Dividend

3. The cost of the supplies used in running an office.

A.Revenue                                   B. Office supplies

C. Dividends                                D. Withdrawals

4. Amounts owed to others but not yet paid.

A. Income tax                              B. Accounts receivable

C. Accounts payable                    D. Withdrawals

5. Amounts of money invested into businesses in order to earn more money.

A. Income tax                              B. Investments

C. Revenue                                  D. Dividends

6. Amount of money taken out of the business by the owner for personal use.

A. Withdrawals                           B. Dividends

C. Income tax                             D. Investments

7. The direct expenses to produce, manufacture, or purchase the goods or services you sell.

A. Withdrawals                          B. Dividends

C. Cost of goods                        D. Rent

8. Direct tax on the earnings of individuals and corporations.

A. Income tax                            B. Revenue

C. Rent                                       D. Investments

9. Earnings distributed to stockholders.

A. Rent                                      B. Revenue

C. Dividends                             D. Investments

3. The total amount of money a business takes in during a given period by selling goods and services.

A. Rent                                      B. Dividends

C. Investments                          D. Revenue

B. Ghép các thuật ngữ tiếng Anh kế toán bên trái với giải nghĩa bên phải.

1. the cost involved in selling goods, paying shop and a. current assets office staff, advertising, etc.

2. debts that will not have to be paid for several years b. fixed assets (e.g. money borrowed by selling shares or mortgaging property)

3. the cost to the firm of the merchandise sold c. intangible assets (including the cost of raw materials, labour, factory overheads)

4. cash, or other assets, that will be changed into cash d. current liabilities or consumed within a short time e. long-term liabilities

5. the value of goods that are in stock and for sale

6. the profit from sales after the costs of selling, and f. cost of sales general expenses, have been subtracted

7. assets that are intended for use rather than sale, and g. gross profit on sales that will be of use for more than one year (e.g. buildings, cars). Also known as plant assets.

8. assets that do not have physical reality, such as the h. net operating profit goodwill of customers, trade connections, patents, copyrights i. merchandise inventory

9. debts that have to be paid within a short time 10. the profit left after the cost of selling has been j. selling and general expenses subtracted from the value of sales

PHẦN II. THẢO LUẬN VÀ ĐỌC HIỂU

A. THẢO LUẬN

1. What are some documents that accountants can use to record transactions?

2. How are accounts classified? Name some of the widely used accounts.

3. What are major activities involved in the accounting process?

4. SYSTEMS OF ACCOUNTS

The accounting process identifies business transactions and events, analyzes and records their effects, and summarizes and presents information in reports and financial statements. The accounting process that focuses on analyzing and recording transactions and events follows these steps. Business transactions and events are the starting points. Relying on source documents, the transactions and events are analyzed using the accounting equation to understand how they affect company performance and financial position. These effects are recorded in accounting records, informally referred to as the accounting books, or simply the books. Additional steps such as posting and then preparing a trial balance help summarizes and classifies the effects of transactions and events. Ultimately, the accounting process provides information in useful reports or financial statements to decision makers. Source documents identify and describe transactions and events entering the accounting process. They are the sources of accounting information and can be in either hard copy or electronic form. Examples are sales tickets, checks, purchase orders, bills from suppliers, employee earnings records, and bank statements. An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. The general ledger, or simply ledger, is a record containing all accounts used by a company. The ledger is often in electronic form. While most companies’ ledgers contain similar accounts, a company often uses one or more unique accounts because of its type of operations. Accounts are arranged into three general categories (based on the accounting equation), as shown below. Asset accounts Assets are resources owned or controlled by a company and that have expected future benefits. Most accounting systems include separate accounts for the assets described here. 16 © Không sao chép khi chưa được chấp thuận.

5. Cash account reflects a company’s cash balance. All increases and decreases in cash are recorded in the Cash account. It includes money and any medium of exchange that a bank accepts for deposit (coins, checks, money orders, and checking account balances). Accounts receivable are held by a seller and refer to promises of payment from customers to sellers. These transactions are often called credit sales or sales on account (or on credit). Accounts receivable are increased by credit sales and are decreased by customer payments. A note receivable, or promissory note, is a written promise of another entity to pay a definite sum of money on a specified future date to the holder of the note. A company holding a promissory note signed by another entity has an asset that is recorded in a Note (or Notes) Receivable account. Prepaid Accounts (also called prepaid expenses) are assets that represent prepayments of future expenses (not current expenses). When the expenses are later incurred, the amounts in prepaid accounts are transferred to expense accounts. Common examples of prepaid accounts include prepaid insurance, prepaid rent, and prepaid services (such as club memberships). Prepaid accounts expire with the passage of time (such as with rent) or through use (such as with prepaid meal tickets). When financial statements are prepared, prepaid accounts are adjusted so that (1) all expired and used prepaid accounts are recorded as regular expenses and (2) all unexpired and unused prepaid accounts are recorded as assets (reflecting future use in future periods). Supplies are assets until they are used. When they are used up, their costs are reported as expenses. The costs of unused supplies are recorded in a Supplies asset account. Supplies are often grouped by purpose - for example, office supplies and store supplies. Office supplies include stationery, paper, toner, and pens. Store supplies include packaging materials, plastic and paper bags, gift boxes and cartons, and cleaning materials. The costs of these unused supplies can be recorded in an Office Supplies or a Store Supplies asset account. When supplies are used, their costs are transferred from the asset accounts to expense accounts. Equipment is an asset. When equipment is used and gets worn down, its cost is gradually reported as an expense (called depreciation). Equipment is often grouped by its purpose - for example, office equipment and store equipment. Office equipment includes computers, printers, desks, chairs, and shelves. The Store equipment account 17 © Không sao chép khi chưa được chấp thuận.

6. Includes the costs of assets used in a store such as counters, showcases, ladders, hoists, and cash registers. Buildings such as stores, offices, warehouses, and factories are assets because they provide expected future benefits to those who control or own them. Their costs are recorded in a Buildings asset account. The cost of land owned by a business is recorded in a Land account. The cost of buildings located on the land is separately recorded in one or more building accounts. Liabilities accounts Liabilities are claims (by creditors) against assets, which means they are obligations to transfer assets or provide products or services to other entities. An organization often has several different liabilities, each of which is represented by a separate account that shows amounts owed to each creditor. Creditors are individuals and organizations that own the right to receive payments from a company. If a company fails to pay its obligations, the law gives creditors a right to force the sale of that company’s assets to obtain the money to meet creditors’ claims. When assets are sold under these conditions, creditors are paid first, but only up to the amount of their claims. Any remaining money, the residual, goes to the owners of the company. Creditors often use a balance sheet to help decide whether to loan money to a company. A loan is less risky if the borrower’s liabilities are small in comparison to assets because this means there are more resources than claims on resources. Common liability accounts are described here. Accounts payable refer to oral or implied promises to pay later, which usually arise from purchases of merchandise. Payables can also arise from purchases of supplies, equipment, and services. Accounting systems keep separate records about each creditor. A note payable refers to a formal promise, usually denoted by the signing of a promissory note, to pay a future amount. It is recorded in either a short-term Note Payable account or a long-term Note Payable account, depending on when it must be repaid. Unearned Revenue refers to a liability that is settled in the future when a company delivers its products or services. When customers pay in advance for products or services (before revenue is earned), the revenue recognition principle requires that the seller consider this payment as unearned revenue. Examples of unearned revenue include magazine subscriptions collected in advance by a publisher, sales of gift certificates by stores, and season ticket sales by sports teams.