SENA (Servicio Nacional de Aprendizaje)

CENTRO DE SERVICIOS FINANCIEROS

Presentado Por:
Lizeth Johana Robayo Escarraga
Maria Paula Rojas

Ficha:
2141624-4

MATERIA:
Ingles

Presentado a:
Stephany Lopez

Tema:
ESP- ACCOUNTING UNIT 1

Año:
2020
1) Work in groups and answer the following questions

 What’s accounting?

Answer: Accounting is the part of finance that studies the different parts that
reflect the economic and financial movements of a company or entity.

 Do you think accounting is important to keep a company floating? why/why

not?

1. Answer: Yes, because it is a key tool to know in what situation and

conditions a company is in and, with this documentation, to be able to
establish the necessary strategies in order to improve its economic
performance.

 Do you know someone who works as an accountant? If so, who? Where

does this person work? Do you know what exactly this person does?

Answer: If I know him, her name is Carolina. She works as an accountant in

the company where I work, which is called Tecmovil Comunicaciones.
She signs taxes, liquidates them, does legal advice, prepares financial
statements among other things.

2)
 Match these accounting firms with their definition1
a) Public Accounting c) Forensic accounting
b) Tax Accounting d) Bookkeeping
1) firms typically employ Certified 2) firms use accounting skills and
Public Accountants (CPAs). legal policies to uncover
fraudulent and illegal activities.
3) firms complete fundamental
accounting tasks for small and
medium-sized companies.
4) firms focus on tax preparation
and planning for companies of
all sizes, and also for
individuals
 Match the images with the concepts above

Concept number 1 Concept number 2

Concept number 4 Concept number 3

3) Skills practice: Do the following activities to practice the learnt vocabulary

and English structures.
 Listening practice
Before watching the video, answer these questions:
find the definition of “profit” and give some examples.

Answer: profit is a benefit or gain, usually monetary. Profit is also

referred to as the bottom line, net profit or net earnings.
The formula for profit is:
Total Sales - Total Expenses = Profit

examples:
 Sam's Bakery received $900 yesterday, but expenses such as
wages, food and electricity came to $650. So, the Profit was
$900 − $650 = $250.
 look into a dictionary the concepts of internal, external, and
government.

o Answer: Internal (or management) accounting that aims to

capture, measure and assess internal circulation in order to
provide the organization or company with the relevant
information to make decisions.
o Answer: The main objective of external (or financial)
accounting is to obtain information about the organization's
relations with the outside world, whether they are banks or
suppliers. The main exponent of this information are the
annual accounts, made up of the balance sheet, the profit and
loss account, the statement of changes in equity, the
statement of cash flows and the report.
o Answer: Government accounting is of great importance
because all companies have a need to keep track of their
business and financial negotiations. In this way you will obtain
greater productivity and use of your assets

Discuss what’s the relation between the government and companies?

Answer: The relationship that it has is that the state provides the
environment to create companies, in addition to the fact that the state
is supported by the taxes that the company mainly generates.

Now, watch the video, make notes and practice your listening skill following the link
to the video: https://www.youtube.com/watch?v=Yj24JwZVd54
After watching the video, discuss and answer the following questions:
What is the importance of having a good accounting process in a company?

Answer: Having a good accounting process within a company is important

because it helps to keep track of income and expenses, as well as to
comply with the laws.

What is the purpose of a business?

Answer: the purpose of a company is to obtain money and benefits on the

investments made either through profits

How could you keep your business floating?

 Answer: my business can function well when staff comply, earning good
income from sales and having very low costs

What factors you should take into account when having a business?

Answer: To have a business, you must take into account the business idea,
the market for which it is going to be directed, the investment costs, be clear
about the capital to invest, do a competition study, the location of where it is
going to be installed the business and the personnel to be hired.

o Reading practice: Reading about the Accounting Cycle.

Before reading you should complete the following meaning chart

Spelling Meaning Definition
Liability Responsabilidad La responsabilidad es un valor que está en la
conciencia de la persona que estudia la Ética
sobre la base de la moral. Puesto en práctica, se
establece la magnitud de dichas acciones y de
cómo afrontarlas de la manera más positiva e
integral para ayudar en un futuro
income statement Estado de Los estados financieros son una herramienta de
Resultados gestión que te ayudará a tener una mejor visión
de la situación financiera de la empresa
owner's equity Capital del El capital son los recursos, bienes o
Propietario instrumentos que son utilizados para crear valor
mediante la fabricación de bienes y servicios
asset Activo El activo son los bienes, derechos y otros
recursos de los que dispone una empresa,
pudiendo ser, por ejemplo, muebles,
construcciones, equipos informáticos o derechos
de cobro por servicios prestados o venta de
bienes a clientes.
budget Presupuesto Un presupuesto es un plan integrador y
coordinador que se expresa en términos
financieros respecto a las operaciones y
recursos que forman parte de una empresa para
un periodo determinado
Cash Efectivo El efectivo es un elemento de balance y forma
parte del activo circulante. Es el elemento más
líquido que posee la empresa, es decir, es el
dinero
Cost Costo costo se refiere al valor monetario de los gastos
de las materias primas, equipos, suministros,
servicios, mano de obra, productos, etc., que se
utilizan para la creación del producto o servicio
 Depreciation Depreciacion La depreciación es el mecanismo mediante
el cual se reconoce el desgaste que sufre un
bien por el uso que se haga de él
Revenue Ingresos Un ingreso es una partida que aumenta el
patrimonio de la empresa o, en su defecto,
disminuye la deuda o pérdida
Tax Impuesto Un impuesto es un tributo que se paga al estado
para soportar los gastos públicos.
Payroll Nomina de Sueldos son las relacionadas con listas de empleados y
los sueldos de los mismos
Invoice Factura La factura es el documento contable que acredita
e informa de la venta o prestación de un
producto o servicio

Read the text and complete the activities below.

What is the accounting cycle?

The accounting cycle is the process of recording your business’s financial
activities. The accounting cycle looks back in time at the end of a designated
period. The cycle includes several steps, starting when a transaction occurs. The
cycle ends when you record the transaction as part of your financial statements.
The accounting cycle makes accounting easier, breaking your bookkeeping down
into smaller tasks. It helps you see what you need to accomplish next.
What are the steps of the accounting cycle?
The following accounting cycle steps can help you keep financial records.
1) Identify transactions: First, separate your business transactions
from all of the transactions you made. You only want to include
transactions related to your company in your financial records. For
example, you won’t record your grocery bill as a business expense in
your books.
Use source documents to identify business transactions, such as
receipts and invoices. Save these kinds of financial documents to
support your records. As you identify business transactions, decide
which account they fall under

2) Record transactions in your journal: The journal is where you

initially record business transactions. It is a running list of financial
activities, like a checkbook. Track transactions in your journal
chronologically as they happen.
 If you use double-entry bookkeeping, record two entries for each
transaction. Enter a debit for one account and a credit for another.
The debit and credit should be equal.

3) Post entries to the general ledger: The general ledger is also known
as the book of final entry. General ledger entries are changes made to
each account in your books. Using your journal, organize transactions
into different accounts. For example, if a customer paid for a product
with cash, enter the transaction under the cash account in your books.

4) Unadjusted trial balance: For your books to be accurate, the debit

and credit entries must be equal. Use an unadjusted trial balance to
test if your debits and credits match.
Make a note of each account balance. Add all the debit balances
together and all the credit balances together. If the two totals are not
the same, you might have an error in your books. Or, you might need
to make adjusting entries.
5) Adjusting entries: At the end of an accounting period, you might
have incurred expenses but not paid for them yet. And, you might
have earned income but not collected it yet. Use adjusting entries to
recognize transactions that have occurred but not been recorded.
For example, you earned interest on a bank account balance. You
have not recorded the interest in your books, but it appears on your
bank statement. Use an adjusted entry to recognize the interest in
your books.

6) Adjusted trial balance: Do an adjusted trial balance after making

adjusting entries and before creating financial statements. This step
tests to see if the debits and credits match after making adjusting
entries.
7) Create financial statements: Once your accounts are up-to-date,
create statements. The following are common financial statements for
small business:
Income statements compare your profits and losses for the period.
Balance sheets determine progress by detailing assets, liabilities, and
equity.
Cash flow statements show money coming into and out of the
business
Use your financial statements to measure performance, make
improvements, and set goals. You can also use statements to talk with
lenders and negotiate terms with vendors.
 8) Close your books: The final step in the accounting cycle is to close your
accounting books. Closing your books wraps up financial activities for the
period. Do tasks like updating accounts payable, reconciling accounts,
reviewing your petty cash fund, and counting inventory.
When you close your books, you should get your accounting set up for the next
period. Decide which processes are moving your business forward. Create a
calendar for completing future tasks. File any financial documents from the last
period and get rid of old documents that are no longer useful.
According to the information from the text, tick the following statements, True (T) or
False (F)
 The accounting cycle corresponds to the recording of the business’s
financial activities. (T)
 The checkbook is one of the tools used to do the post entries record. (F)
 As the books need to be accurate, an unadjusted trial balance verifies
whether debits and credits match. (T)
 The statements are created as the accounts are up-to-date. (T)
 The accounting set up for the next period is part of the record transactions
process. (F)
Based on the reading, describe each one of the following accounting
concepts:
Transaction: movement that you make related to money, depending on the
transaction, you can invest for something, in order to get a profit, or you can
also pay for something, just for keeping business things going well
Posting: it means to enter a movement or a transaction into your general
ledger to keep track of your expenses.
Trial balance: when you have debit and credit entries in your book, these
have to be equal, a trial balance helps you to be sure that there're not any
problem with your entries and it supports debit and credit entries really
match each other
Journal entries: it is to make a note of each transaction or account
movement in a book every single day
Financial statements: A financial Stament is a status that you get at the of
a period, you can show it by drawing graphics, charts or just words. You can
know about how big your profits were or if you had several losses, by
knowing this information, you can make goals to improve your mistakes
Worksheet: It is a piece of paper (it can be in a virtual way) where you put
all the figures or results that you got in a period to put them in a correct
order and check if they are completed or not
Adjusting entries: most of the cases, people just forget about some
incurred expenses. Use adjusting entries to recognize transactions that
have occurred but not been recorded.
Closing the books: it happens at the end of the period, you should get
ready to move toward the next period, for that reason you take a look of
your accounts, if they are still useful for you, get all the documents and take
it away, but if they are not, get rid of those old documents. You can also
create a calendar. By getting these little steps done, you are setting your
account up for the next period or season.