INSTITUTO SUPERIOR DE COMUNICAÇÃ O E IMAGEM DE MOÇAMBIQUE

HAND-OUT
TECHNICAL ENGLISH FOR STUDENTS OF ACCOUNTING AND AUDITING

SEMESTER I, 2020

AUTHOR : EFRAIME G. E. MALATE

1. Words and sentences
Language

A) Vocabulary:
- Jobs/professions in Accounting and Accounting Expressions
B) - Parts of speech
C) Functions/ skills:
- Writing: word order
- Reading and vocabulary
D) Grammar:
- 1 Word classes: nouns, verbs, adjectives, etc
STARTER

1 Make a list all the different jobs you know about in accounting.

2 Here are some jobs and definitions. Fill in the gaps in the definitions with words from the box below.
Specializing/ studying/ for inspecting its accounts/ processing the records/ giving administrative
support/ to inspect its accounts

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READING

Why Do We Need Accounting?

Introduction

Accounting has rightly been termed as the language of the business. The basic function of a language is to serve as a
means of communication. Accounting also serves this function. It communicates the results of business operations to
various parties who have some stake in the business viz., the proprietor, creditors, investor, government and other
agencies, though accounting is generally associated with business but it is not only business which makes use of
accounting. The need for accounting is all the greater for a person who is running a business. The person must know:

1) What the person owns?

2) What the person owes?
3) Whether the person has earned a profit or suffered a loss on account of running a business?
4) What is the person financial position i.e. whether the person will be in a position to meet all his
commitments in the near future or the person is in the process of becoming a bankrupt?

What is Accounting?

Accounting is concerned with collecting, analyzing and communicating financial information. The purpose is to help
people who use this information to make more informed decisions. If the financial information that is communicated
is not capable of improving the quality of decisions made, there would be no point in producing it. Sometimes the
impression is given that the purpose of accounting is simply to prepare financial reports on a regular basis. While it is
true that accountants undertake this kind of work, it does not represent an end in itself. The ultimate purpose of the
accountant’s work is to give people better financial information on which to base their decisions.

Definition of Accounting

Accounting is concerned with the processes of recording, sorting, and summarizing data resulting from business
operations and events. Accounting to American Accounting association accounting is ‘the process of identifying,
measuring, and communicating economic information to permit informed judgements and decisions by users of the
information’.

The definition given by the American Institute of Certified Public Accountants clearly brings out the meaning and
functions of Accounting. According to it accounting is “the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events which are, in part at least, of a financial character
and interpreting the results thereof.”

Purpose and Nature of Accounting

Every element of society - from the individual to an entire industry or government branch has to make decisions on
how to allocate its resources. Accounting is the process that aids these decisions by (1) Recording (2) Classifying (3)
Summarizing and (4) Reporting business transactions and interpreting their effects on the affairs of the business
entity.

This definition makes it clear that the recording of data, of bookkeeping, is only the first and simplest step in the
accounting process. The financial information provided by accounting is used both directly and indirectly, as
summarized in the following.

Direct users: Owners- Managers- Creditors- Suppliers- Taxing authorities- Employees- Customers
Indirect users: Labor unions- Financial analysts- Stock exchanges- Lawyers- Regulatory authorities- Financial press-
Trade associations.
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An analysis of the definition brings out the following functions of accounting:

Recording: that is the basic function of accounting. It is essentially concerned with not only ensuring that all business
transactions of financial character are in fact recorded but also that they are recorded in an orderly manner.
Recording is done in the book “Journal”.
Classifying: this is concerned with the systematic analysis of the recorded data, with a view to group transactions or
entries of one nature at one place. The work of classification is done in the book termed as “Ledger”. This book
contains on different pages' individual account heads under which all financial transactions of similar nature are
collected.
Summarizing: this involves presenting the classified data in a manner which is understandable and useful to the
internal as well as external end-users of accounting statements.

Objectives of Study Accounting

The following are the main objectives of accounting:

1. To keep systematic records. Accounting is done to keep a systematic record of financial transactions. In the
absence of accounting there would have been terrific burden on human memory which in most cases would have
been impossible to bear.

Who are the users of accounting information?

For accounting information to be useful, the accountant must be clear for whom the information is being prepared
and for what purpose the information will be used. There are likely to be various groups of people (known as ‘user
groups’) with an interest in a particular organization, in the sense of needing to make decisions about it. Figure 1,
shows Main users of financial information relating to a business.

Figure (1): Main users of financial information relating to a business.

Owners Customers Competitors

Managers Business Employees and

their
Representative

Lenders Investment Government

Analysis

Suppliers Community
Repreresentatives

Comprehension Exercises

A. State whether each of the following statements is “True” or “False”.

-------1. Accounting is the language of business.
-------2. Accounting can be useful only for recording business transactions.
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-------3. Accounting records only transactions which are of a financial character
-------4. Book-keeping and Accounting are synonymous terms.
-------5. Accounting is as old as money itself.

B. Indicate the best answer for each of the following questions:

1. The prime function of accounting is to:
a) Record economic data.
b) Provide the informational basis for action.
c) Classifying and recording business transactions.
d) Attain non-economic goals.

2. The basic function of financial accounting is to:

a) Record all business transactions.
b) Interpret the financial data.
c) Assist the management in performing functions effectively.

3. Management accounting provides invaluable services to management in performing:

a) All management functions.
b) Coordinating management functions.
c) Controlling functions

4. Book-keeping is mainly concerned with:

a) Recording of financial data relating to business operations
b) Designing the systems in recording, classifying, summarizing the recorded data.
c) Interpreting the data for internal and external end users.

C. Oral Questions
1. Define Accounting.
2. State its functions
3. How does it differ from book-keeping

GRAMMAR

- 1 Word classes: nouns, verbs, adjectives, etc

1. Look at the different kinds of word in this sentence.

Pronoun Verb Determiner Adjective Noun Preposition Noun Adverb

I Have an important Conference at work Tomorrow,
Linking Pronoun Verb Adverb Adjective
word
So I ‘m rather buzy.
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2. What kind of word?

There are eight different kinds of word in English. They are called 'word classes' or 'parts of speech'. Here are some
examples from the conversations in the café.

Verb:
Verbs are action or existence words that tell what nouns do.
Examples: to laugh, to read, watched, have, am, is, would, like, come, are, sitting, look
Noun:
A noun is a person, place, thing, quality, or act.
Examples: shoes, turtle, anger, sadness, town, conference, work, coffee, party, Saturday, Jessica, friends, corner
Adjective:
An adjective describes a noun.
Examples: bald, heavy, useful, important, busy, good, cheap
Adverb:
An adverb describes a verb, adjective, or adverb. It often ends in 'ly'.
Examples: simply, patiently, tomorrow, rather, really, here
Preposition:
A preposition describes the relationship between a noun and another noun (or verb or adverb).
Examples: down, from, at, to, on, in, for, with
Determiner: an, this, our, the
Pronoun:
A pronoun replaces a noun or noun phrase that is understood from context.
Examples: she, me, I, it, you
Linking word:
A linking word or conjunction joins together words, phrases, or clauses.
Examples: but, and, so, because, however
Interjection:
An outcry or sudden utterance. Usually starts a sentence.
Examples: ouch, god, my

1. Write the right kind of the words in brackets.

1. I would like to show you my (car). _____________

2. (Wow) ! what a beautiful car ! _____________
3. I really like (American) cars. _____________
4. I (never) drive it in town. _____________
5. It would be too (dangerous). _____________
6. I (bought) it last month. _____________
7. (Oh) ! I see ... _____________
8. I saw it (and) I bought it. _____________
9. (It) is a second-hand car. _____________
10. I got my driving-licence (recently). _____________
11. You must be very (wealthy). _____________
12. I was given the money (by) an American uncle. _____________

3. Words in sentences
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Some words can belong to different classes depending on how they are used in a sentence.

VERBS NOUNS
Can I look at your photos? We I like the look of that coat.
work on Saturday morning. I'll be at work tomorrow.
EXERCISES

1. What kind of word?

Read this paragraph and then say which word class each underlined word belongs to. To help you decide, you can
look back at the examples in A.

2. What kind of word?

Read this paragraph and then write the words in the spaces below. Write the first three verbs under 'Verb', and so
on. Do not write the same word more than once.

Henry thinks Claire is wonderful. He loves her madly, and he dreams of marrying her, but unfortunately he is rather
old for her. Today they are at a cafe with their friends Sarah and Mark, so Henry can't get romantic with Claire. But
he might buy her some flowers later.

3. Words in sentences Is the underlined word a

verb, a noun or an adjective?

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 1 Debt a an agreement between two or more parties, often
written
2 Lease b the opposite of assets

3 gearing c buying or selling something

4 liabilities d someone who owns parts of a company

5 contract e money that is owed

6 transaction f an agreement where the owner of something allows

someone
else to use it for a specific time for a sum of money

7 shareholder g the proportion of own capital to borrowed funds

when buying an asset or financing a company

Write your answers HERE: 1_____ 2_____3_____4_____5_____6_____7_____

Words and sentences (Continued)

Language

A) Vocabulary:
- Business terms - accounting

B) Functions/ skills:
- Writing: word order; sentence writing;

C) Grammar
- 2 Sentence structure: subject, verb, object, etc

STARTER

I. Find the Portuguese equivalents of the following terms and write them in the spaces provided.

New Words Translation New Words Translation

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Recording Registo Suppliers Fornecedores
Classifying Classificação Bookkeeping Contabilidade
Summarizing Resumo Competitors Concorrentes
Reporting Relatório Undertake Empreender
Owners Proprietários Certified Certificado
Creditors Credores Fixed Assets Activos fixos
Government Governo Ledger Livro de Ledger
Investment Investimento Balance Sheet Balanço
Representative Representante Managers Gestores
Ledger Livro de Ledger Financial Accounting Contabilidade financeira
Measure Medida Managerial Accountig Contabilidade de Gestão

1. READING
Pre-reading

1. What do the following abbreviations mean?

 GAAP/ IFRS/ IASC/ IAS

2. Use the words from the words in A and B to make word partnerships.
A: Outside/ accepted/ English-speaking/ local accounting/ publicly-traded

B: Company/ practice/ standard/ parties/ countries

1. __________________________
2. __________________________
3. __________________________
4. __________________________
5. __________________________

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 3. Match them to the definitions below.

1 A firm that sells its shares to anyone who wants to buy them. _______________________________
2 For example the USA, South Africa, Zimbabwe, and Australia. _______________________________
3 The way that most people do something. _______________________________
4 The rules and regulations which state how accountants operate in a particular place.
5 People or groups who are not involved with the company. _______________________________

4 The article mentioned four basic principles of accounting. Match them to the definitions below.

1. This principle is concerning with the timing of the recognition of transactions in the accounts. Item are
recorded when the income or expense arises, and not dependent on the moment of cash.
______________________________________________________________________________
2. When preparing accounts, one must assume that the enterprise will still be viable in the years to come.
Practically all accounting items are affected by the this assumption, such as carrying value of fixed asset and
inventory, and the ability to repay debts and other obligations.
______________________________________________________________________________
3. What value should be given to the numbers in the accounts? It is normal to act pessimistically, so that profits
and assets are not overstated, and the expenses and liabilities realistically valued.
______________________________________________________________________________
4.
Accounts should be produced using the same principles from one year to the next. Deviations from this
principle must be noted, and the effects on the accounts shown.
______________________________________________________________________________
Note:

 The going concern concept is a fundamental principle of accounting. It assumes that during and beyond the
next fiscal period a company will complete its current plans, use its existing assets and continue to meet its
financial obligations. This underlying principle is also known as the continuing concern concept.
 What is the Prudence Concept? Under the prudence concept, do not overestimate the amount of revenues
recognized or underestimate the amount of expenses. Also, one should be conservative in recording the
amount of assets, and not underestimate liabilities. The result should be conservatively-stated financial
statements.
 What is the Consistency Principle? The consistency principle states that, once you adopt an accounting
principle or method, continue to follow it consistently in future accounting periods so that the results
reported from period to period are comparable.
 Matching principle is the accounting principle that requires that the expenses incurred during a period be
recorded in the same period in which the related revenues are earned. This principle recognizes that
businesses must incur expenses to earn revenues.

GRAMMAR

1 Sentence structure: subject, verb, object, etc

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Sentence structure

The parts of a sentence are the subject, verb, object, complement and adverbial. A statement begins with the subject
and the verb. There are five main structures which we can use to make a simple statement.
SUBJECT VERB OBJECT OBJECT COMPLEMENT ADVERBIAL
My arms are aching. --------------------- ---------------------- ---------------------- -------------------

Something happened. --------------------- --------------------- --------------------- -------------------

I need a rest. --------------------- --------------------- --------------------

Five are moving the piano. --------------------- --------------------- --------------------
people
This piano Is --------------------- --------------------- heavy. --------------------

It was --------------------- --------------------- a big problem. --------------------

It Is --------------------- --------------------- --------------------- on my foot.

Their Is --------------------- --------------------- --------------------- nearby.

house
It s giving Me backache. --------------------- --------------------
David bought Melanie a present. --------------------- --------------------

My arms are aching --------------------- --------------------- --------------------- terribly.

Note:

 Subject: A person, animal, place, thing, or concept that does an action. Determine the subject in a sentence
by asking the question “Who or what?”. The subject and object can be a pronoun (e.g. I) or a noun phrase
(e.g. the piano).
Example: I like spaghetti.
He reads many books.
 Verb: Expresses what the person, animal, place, thing, or concept does. Determine the verb in a sentence by
asking the question “What was the action or what happened?”

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 Example: I like spaghetti.
He reads many books.
 Object: A person, animal, place, thing, or concept that does an action. Determine the subject in a sentence
by asking the question “Who or what?”. We use two objects after verbs like give and send.
Example: I like spaghetti.
He reads many books.
 Complement: The complement can be an adjective (e.g.heavy) or a noun phrase (e.g. a big problem).The
complement often comes after be. It can also come after appear, become, get, feel, look, seem, stay or
sound.
 Adverbial: An adverbial can be a prepositional phrase (e.g. on my foot) or an adverb (e.g. nearby). A phrase
that begins with a preposition (i.e., in, at for, behind, until, after, of, during) and modifies a word in the
sentence. A prepositional phrase answers one of many questions. Here are a few examples: “Where? When?
In what way?”
Example: I like spaghetti for dinner.
He reads many books in the library.
 We can add adverbials to all the five main structures.

I really need a rest. Of course

this piano is heavy. Fortunately their house is
nearby. To everyone's surprise, David actually
bought Melanie a present yesterday.

EXERCISES

1 Parts of the sentence

Mike and Harriet are on holiday. They have written a postcard to David and Melanie. Look at each underlined
phrase and say what part of the sentence it is: subject, verb, object, complement or adverbial.

2 Sentence structure

After moving the piano, the five friends had a rest and a cup of tea. Look at this part of their conversation and then
write the letters a)- e) in the correct place.

3 Word order
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Put the words in the correct order and write the statements.

4 Adverbials

These sentences are from a news report. Write down the two adverbials in each sentence. Each adverbial is a
prepositional phrase or an adverb.

e.g. Prince Charles opened a new sports centre in Stoke yesterday. in Stoke /yesterday

1 He also spoke with several young people…………………………………………………………..

2 The sports centre was first planned in 1994. …………………………………………………………..
3 Naturally, the local council could not finance the project without help. …………………………………………..
4 Fortunately, they managed to obtain money from the National Lottery. …….…………………………………..

VOCABULARY

Saying Numbers in English

Notice how we use the decimal point in English:

6.02 six point oh two

0.04 zero (or nought) point oh four
0.007 zero point double oh seven
56.345 fifty-six point three four five [NB: single numbers after the decimal!]

Here commas - and not decimal points - are used: Note the following:
12,076 twelve thousand and seventy-six 1,000,000 one million
2,534,210 two million, five hundred and thirty-four 1,000,000,000 one billion
thousand, two hundred and ten

Sums of money:

€3.67 three euros sixty-seven OR three euro sixty-seven

$5 m five million dollars

Note how we say years:

1987 nineteen eighty-seven

2003 two thousand and three
2030 two thousand and thirty (or twenty thirty)

Words and sentences (Continued)

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Language
A) Vocabulary:
- Parts of speech
- Business organization

B) Functions/ skills:
- Writing: word order; sentence writing

C) Grammar
- 3 Direct and indirect objects

STARTER

I. Describe the picture in 1 minute using your own words.

1. How many departments are there in your company?

_________________________________________________________________________________________
2. On average how many people are there in one department?
_________________________________________________________________________________________
3. Does your company have overseas branch offices? If yes, where?
_________________________________________________________________________________________

READING

The structure of Biopaints International

Presenter: Today we are talking to Philip Knight about the structure of Biopaints International. Philip is
the General Manager of the Perth factory. Philip, do you think you could tell us something about the way Biopaints is
actually organized?

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Philip: Yes, certainly. We employ about two thousand people in all in two different locations. Most people work here
at tour headquarters plant. And this is where we have the administrative departments, of course.
Presenter: Well, perhaps you could say something about the departmental structure?
Philip: Yes, certainly. Well, now first of all, as you know we've got two factories, one here in Perth, Australia, and the
other in Singapore. Lee Boon Eng is the other General Manager, over there in Singapore.
Presenter: And you are completely independent of each other, is that right?
Philip: Oh, yes. Our two plants are fairly independent. I mean, I am responsible to George Harris, the Production
Manager, and we have to co-operate closely with Rosemary Broom, the Marketing Manager.
Presenter: Mmm, yeah.
Philip: But otherwise, as far as day to day running is concerned, we're pretty much left alone to get on with the job.
Oh, and I forgot to mention finance. The Finance Director is Weimin Tan. She's a very important woman. And her task
is to make sure the money side of things is OK. The accountant and such people, they report to her directly.
Presenter: Is that all?
Philip: Oh, no, no. There's Personnel too.
Presenter: Oh, yes.
Philip: That's quite separate. Deirdre Spencer is Personnel Manager. And the Training Manager reports to her, of
course.
Presenter: Are there any other features worth mentioning?

Comprehension Questions

1. What is Philip Knight's job?

__________________________________________________________________________________
2. How many employees does Biopaints International have?
__________________________________________________________________________________
3. According to Philip Knight, they have two factories. Where are they?
__________________________________________________________________________________
4. To whom would the accountant directly report?
__________________________________________________________________________________
5. To whom would the Training Manager report?
__________________________________________________________________________________
6. What department is Brian Jones in charge of?
_________________________________________________________________________________

SPEAKING AND FURTHER VOCABULARY

Dialogue Practice

Practice the conversation below with your partner.

A: Well, perhaps you could say something about the departmental structure?
B: Yes, certainly. We've got two (factories), one here in (Perth, Australia), and the other in (Singapore).
A: And you are completely independent of each other, is that right?
B: Oh, yes. Our two (plants) are fairly independent. I am responsible to (George Harris, the Production Manager), and
we have to co-operate closely with (Rosemary Broom, the Marketing Manager).

Useful structures

Describing the activity of a department

My department deals with marketing.

My department is responsible for administration. We organize tests/studies/research.
We work with customers/suppliers/subsidiaries/other companies in the group.
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Describing the staff of a department

There are (20) people in the department.

Pierre Ducros is in charge of the department.
I am one of the managers/technicians/secretaries/engineers.

Describing the equipment/premises of a department

We have a large office/three laboratories/a small building.

We use computers/fax/e-mail a lot.
We have a well-equipped laboratory/a lot of technical equipment.

VOCABULARY

1. Saying equations/formulas

+ plus, and, add a x b = c a times (or multiplied by) b equals c

- minus, less, subtract a-b
c a minus b divided by (or over) c
÷ divided by total assets total assets divided by total
total liabilities liabilities
— divided by, over
X multiplied by, times
= equals, is
2. Some other common ratios are given below. Match the ratios with the formulas (1-7) and the descriptions (a-
g).

a) Gives the company’s pricing policy and mark-up margins. An adequate gross margin allows a company to pay its
expenses, and then expand.
b) Determines the average interest rate at which a company borrows funds.
c) Compares the current market price with earnings to calculate if a stock is over or under valued. Used as a
prediction or expectation of future performance.
d) Indicates the return a company gets on the owners' investment. Companies that make high returns often do not
require more debt investments.

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e) Shows the turnover of inventory, and can be compared against sales figures, to show the demand for the
company's products.
f) Indicates what proportion of equity and debt an enterprise uses to finance its assets. A more stringent test is to
use just the long-term debt.
g) Calculates the profit made on a per-share basis. This is quoted by U.S. Publicly held companies in their financial
statements.

GRAMMAR

3 Direct and indirect objects

STARTER

Here are some more examples:

1 To or for?

We give something to someone, and we buy something for someone. We can use to with these verbs: bring, feed,
give, hand, lend, offer, owe, pass, pay, post, promise, read, sell, send, show, take, teach, tell, throw, write

Example:

- Vicky paid the money to the cashier, OR Vicky paid the cashier the money.
- Let me read this news item to you. OR Let me read you this news item.
- We showed the photos to David, OR We showed David the photos.

We can use for with these verbs: book, bring, build, buy, choose, cook, fetch, find, get, leave, make, order, pick,
reserve, save

- They found a spare ticket for me. OR They found me a spare ticket.

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 - I've saved a seat for you. OR I've saved you a seat.
- Melanie is making a cake for David, OR Melanie is making David a cake.

2 Give + pronoun

Sometimes there is a pronoun and a noun after a verb such as give. The pronoun usually comes before the noun.

EXERCISES

1 Give

Look at the Christmas presents and write sentences about them.

Put one of these words at the end of each sentence: necklace, scarf, sweater, tennis racket, watch

2 Indirect object or to?

Write the information in one sentence. Put the underlined part at the end of the sentence.
Sometimes you need to.

3 To or for?

Mark's boss at Zedco is Mr Atkins. He is telling people to do things. Put in to or for.

4 Give + pronoun

Complete each answer using the words in brackets. Sometimes you need to use to or for.
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2. Tenses – Present and past tenses
Language
A) Vocabulary:
- Language of contracts

B) Functions/ skills:
- Daily events

C) Grammar
- 1 Present simple and continuous

STARTER

I. Discuss the meaning of the following words in A. Then match them with the equivalent from table B.

A: Unconditional binding enforceable acceptance agreement offer breach contract terms

failure penalty cancellation termination clause delay notice

B: cláusula atraso Incondicional aviso vinculativo aceitação acordo oferta violação contrato
termos falha penalização cancelamento aplicável cessação

VOCABULARY – Working with words

1 Look at the words on the left below and match them with the definition on the right.

1. Absolute a) Complete, unconditional

2. agreement b) Essential basis of a contract, usually provided by showing
an offer by one part and acceptance of it by another.
3. Binding c) Valid, enforceable
4. breach of contract d) failure to perform one or more of the promises or terms
of which a contract is made up
5. clause e) Section of a contract
2 In a contract you may find the following clauses:

a. a cancellation clause
b. a penalty clause

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c. a termination clause

3 Look at the extracts from business contracts. Match each extract with one of the clauses above.

1. ... five per cent for each month of delay ...

2. ... and the contract will continue until terminated by six weeks' notice.
3. ... fifty per cent charge if cancelled less than six weeks beforehand.
READING

Accounting Information System (AIS)

Introduction

The study of accounting information systems (AISs) is, in large part, the study of the application of
information technology (IT) to accounting systems. This chapter describes the ways that information
technology affects financial accounting, managerial accounting, auditing, and taxation. We begin by
answering the question ‘‘what are accounting information systems’’ and then look at some new
developments in the field. Following this, we will examine some traditional roles of AISs in commerce.
Why should you study accounting information systems? There are many reasons, which we will review
briefly in this chapter, but one of the most important is because of the special career opportunities that will
enable you to combine your study of accounting subjects with your interest in computer systems. In today’s
job market, accounting employers expect new hires to be computer literate. In addition, a large number of
specialized employment opportunities are available to those students who possess a deeper understanding of
computer subjects and can bring advanced computer skills to accounting jobs. The last part of this chapter
describes a number of special career opportunities for those with an interest in AISs.

What Is an Accounting Information System?

A system is a framework that exists for the benefit of one or more defined objectives. Systems ordinarily use
resources and are subject to constraints. They operate within an environment requiring the specification of
the boundaries between the system and the environment. Most systems have both inputs and outputs. An
accounting information system is a delivery system for accounting information. Its purposes are:
• To meet an organization’s statutory reporting requirements.
• To provide relevant and accurate accounting information to those who need it when they need it.
• To conduct or at least enable most business processes ranging from the recording of sales orders to the
reconciliation of bank accounts after liabilities have been paid.
• To protect the organization from possible risks stemming from abuse of accounting data or of the system
itself.

A Definition of Accounting Information Systems

Figure 1 suggests that accounting information systems (AISs) stand at the crossroads of two disciplines: ‘‘accounting’’
and ‘‘information systems.’’ Thus, the study of AISs is often viewed as the study of computerized accounting systems.
But because we cannot define an AIS by its size; it is better to define it by what it does.

Definition: An accounting information system is a collection of data and processing procedures that creates needed
information for its users.

FIGURE 1 Accounting information systems exists at the intersection of two important disciplines: (1) accounting and
(2) information systems.

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Accounting; you probably have a pretty good understanding of accounting subjects because you have already taken
one or more courses in the area. Thus, you know that the accounting field includes financial accounting, managerial
accounting, and taxation. Accounting information systems are used in all these areas—for example, to perform tasks
in such areas as payroll, accounts receivable, accounts payable, inventory, and budgeting. In addition, AISs help
accountants maintain general ledger information, create spreadsheets for strategic planning, and distribute financial
reports. Indeed, it is difficult to think of an accounting task that is not integrated, in some way, with an accounting
information system.

Information (versus Data); although the terms data and information are often used interchangeably, it is useful to
distinguish between them. Data are raw facts about events that have little organization or meaning—for example, a
set of raw scores on a class examination. To be useful or meaningful, most data must be processed into useful
information—for example, by sorting, manipulating, aggregating, or classifying them.

Systems; within the accounting profession, the term ‘‘systems’’ usually refers to ‘‘computer systems.’’ As you
probably know, IT advances are changing the way we do just about everything.

Accounting Information Systems and Their Role in Organizations

Information technology (IT) refers to the hardware, software, and related system components that organizations use
to create computerized information systems. IT has been a major force in our current society and now influences our
lives in many personal ways—for example, when we use digital cameras to take pictures, accesses the Internet to
make a purchase or learn about something, or make phone calls to friends and family. It is perhaps less clear that
computer technology has also had profound influences on commerce. In this information age, for example, fewer
workers actually make products, and more of them produce, analyze, manipulate, and distribute information about
business activities. These individuals are often called knowledge workers. Companies find that their success or
failure is often dependent on the uses or misuses of the information that knowledge workers manage.

Comprehension Exercises

A. State whether each of the following statements is “True” or “False”.

……….1. Data and information are among an organization's most valuable assets.
……….2. Organizations should take advantage of every opportunity to invest in information technology in order to
improve their AIS.
………..3. The AIS plays an important role in maintaining a strategic position.
………..4. An AIS designer, who is very competent with information technology skills, will be successful in designing an
information system regardless of his/her understanding of the organization that he/she is designing for.
………..5. When making a design choice regarding the amount of information to provide to a decision maker,
providing more information is always better.

B. Indicate the best answer for each of the following questions:

1. Which of the following accurately depicts the components of an accounting information system?

a) People, forms, and reports b) People, procedures, and information technology

c) People, procedures, and paper d) Procedures, paper, and information technology
e) People, paper, and information technology

20
2. While an accounting information system supports each of the organization's primary activities in the value chain as
well as many of the support activities, it can only be categorized into one of the activities. Into which activity is the
accounting information system categorized?

a) Purchasing b) Service c) Firm Infrastructure

d) Operations e) Technology
3. An accounting information system adds value to an organization in many ways. Which of the following is not a way
in which the AIS adds value?

a) Monitoring outputs for defects to increase product quality

b) Providing more timely information
c) Providing more accurate information
d) Sharing expertise
e) Monitoring outputs for defects to reduce the amount of waste
f) All of the above are ways in which an AIS adds value to the organization.

4. Which of the following is not one of the three important functions that an accounting information system
performs?
a) It collects and stores data about activities and transactions so that the organization can review what has happened
in the business.
b) It processes data into information that is useful for making decisions that enable management to plan, execute,
and control activities.
c) It assures that management's decisions optimize the profitability of the company.
d) It provides adequate controls to safeguard the organization's assets, including its data. These controls ensure that
the data is available when needed and that it is accurate and reliable.

GRAMMAR

- 1 Present simple and continuous

21
Thoughts, feelings and states
We normally use the present simple to talk about thoughts and feelings.

- I think it's a good programme.

- Kitty likes her job.

We also use it to talk about states and permanent facts.

- Reporting means a lot to her.

- Paper burns easily.

We also use the present simple in I promise, I agree, I refuse, etc.

- I promise I'll write to you.

- It's all right. I forgive you

Temporary or permanent?

PRESENT CONTINUOUS PRESENT SIMPLE

We use the present continuous for a routine or
situation that we see as temporary (for a short
period).
- I'm working at a sports shop for six weeks.
- At the moment they're living in a very small
flat.
We use the present simple for a routine or
situation that we see as permanent.
- I work at a sports shop. It's a permanent
job.
- They live in a very nice flat.

Always

EXERCISES

1 Use Look at each

underlined verb and say what kind of meaning it expresses. Is it a thought, a feeling, a fact or a repeated action?

22
2 Forms 1 Complete the
sentences by putting in the verbs. Use the present simple. You have to decide if the verb is positive or negative.

3 Forms 3
Complete the conversation. Put in the present simple forms.

4 Present continuous or simple?

At work Mark is talking to Alan in the corridor. Complete their conversation. Put in the present continuous or
simple of the verbs.

23
5 Present continuous or simple?

Complete the sentences. Put in the present continuous or simple of the verbs.

6 I think/I'm thinking etc

Complete the conversation. Choose the correct form of the verb.

VOCABULARY

Use words from the descriptions above to complete the table. The first one is done for you.

24
VERB NOUN
to predict 1 prediction
to ____________ 2 payment
to ____________ 3 comparison
to ____________ ____________ 4
to expect 5 indication
to ____________ 6 expansion
to perform ____________ 7

Tenses – Present and past tenses (Continued)

Language

A) Vocabulary:
- Contextual references

B) Functions/ skills:
- Reading: Contextual references;
- Reading: Comprehension

C) Grammar
- 2 Past simple and continuous
READING

CONTEXTUAL REFERENCES

Transitional markers are words used to link ideas together so that the text is smoother to read. When pronouns such
as it, they, them, I, he, she, me, them, him, which, who, whose, whom, where, when, why, that, such, one, and
demonstrative adjectives such as this, that, these, and those, and possessive pronouns and adjectives for instance
mine, ours, theirs, my, your, their, its, are used as transitional markers, they refer to a word, or words mentioned
earlier in the sentence or paragraph. Also, words like another, others, the other, these, those, all, some, can be used
in the place of nouns which have been already mentioned (deleted nouns). Their function is to take your thoughts
back to something that has already been mentioned. Thus they serve as synonyms or substitutes. Other words which
are often used to refer backwards are the former, the latter, the second, first, etc., the last.

Examples:

1. Animation is a component of multimedia; it is used in online video games as well as in moving banners
displaying sports scores or stock prices.
2. Even though an optical fibre is as thin as hair, its signal carrying capacity is higher than copper wire.
3. Today, telecommunication is widespread and devices that assist the process, such as television, radio and
telephone, are common in many parts of the world.
4. An operating system is a master control program which controls the functions of the computer system as a
whole and the running of application programs.
5. Most programs are user-friendly but some programs are very complicated.

25
 6. There is no best answer to the question which online service is the best. Rating a particular online service
over another online service is entirely subjective. Price is important for some people, while the number of file
available for download is important to others people.
7. Multimedia combines text with sound, video, animation and graphic. This greatly enhances the interaction
between user and machine.
8. Technology has been developed increasingly, which makes our lives more convenient.

Sample paragraph

A computer ,like any other machine, is used because it does certain jobs better and more efficiently than humans. It
can receive more information and process it faster than any human. The speed at which a computer works can
replace weeks or even months of pencil-and-paper work. Therefore computers are used when the time saved offsets
their cost which is one of the many reasons they are used so much in business, industry and research.

EXERCISES

2. Read the passage and identify what each underlined word refer to.

Computers are electronic machines that process information. They are capable of communicating

with the user, of doing different kinds of arithmetic operations and of making three kinds of decisions. However, they
are incapable of thinking. They accept data and instructions as input, and after processing it they output the results.

When talking about computers, both hardware and software need to be considered. The former refers to the actual
machinery, whereas the latter refers to the programs which control and coordinate the activities of the hardware
while processing the data.

The first computer was built in 1930 but since the computer technology has evolved a great deal. There are three
different kinds of computers in use today: the mainframe, the microcomputer and the minicomputer. These all have
one thing in common: they operate quickly and accurately in solving problems.

26
3. Draw a circle around the substitute word, or words (contextual reference) then a rectangle around the word(s)
that refer to and join them with arrows.

The Matrix is a cyber-thriller that captures the audience’s attention from the beginning. The movie, directed by
Wachowski brothers, has a story line that combines action, science fiction, and special effects. The world is a virtual
environment created by computers, where people are just slaves to AI machines which generate energy from human
bodies.

Neo is a computer hacker that looks for an answer to the question “what’s the Matrix?” He discovers the truth when
he meets the rebels Trinity and Morpheus. Trinity helps Neo and kills “agents” who are really machines in human
form. Morpheus shows Neo what the Matrix is – a reality beyond reality that controls human lives. The Matrix is
protected by “agents” led by Agent Smith, the character who tries to kill Neo.

Neo receives strong powers and becomes “The One” who will liberate human kind from the evil artificial intelligence
known as the Matrix. In the end, he kills Agent Smith and saves the humans, but does … really kill him? Find out in
the next Matrix movie.

VOCABULARY
Find the Farsi equivalents of the following terms and write them in the spaces provided.

New Words Translation New Words Translation

AIS Inventory
IT Budgeting
Commerce Data
Financial Accounting Information
Managerial Accounting Raw Facts
Delivery System Knowledge Workers
Accounts Receivable Sort
Manipulate Aggregate
Spreadsheet Strategic Planning

READING
Sysco
Sysco makes over 4,500 products, developed specifically for customers - food retailers and foodservice providers. As
such, Sysco makes and markets products for some of the largest restaurants and hotel chains in Canada.
Company Structure
Sysco operates a decentralized divisional structure. The board establishes corporate strategy and the Group's
business objectives. Divisional management integrates these objectives into divisional business strategies with
supporting financial objectives.

Managing Directors are responsible for the organic and new business development growth opportunities within their
divisions. These divisions are composed of three to seven businesses units-grouped by a mixture of market,
manufacturing skills or customer expertise.

Each business unit is led by a General Manager, responsible for the achievement of business objectives and
sustainable business performance. Each General Manager has a profit-responsible management team which
concentrates on specific markets and customers.

This devolved Group structure allows a close working relationship with our customers and one
where day-to-day decisions can be made at business unit level, which is vital to the fast-moving nature of our
business.
27
Each Managing Director, together with functional heads, sits on the Sysco Management Board (operational executive
team).

Comprehension Questions

1. What are the Managing Directors responsible for?

_________________________________________________________________________________________
2. How many business units are there in the divisions?
_________________________________________________________________________________________
3. At which level are the day-to-day decisions made?
_________________________________________________________________________________________
4. Who sits on the Sysco Management Board?
_________________________________________________________________________________________

Tenses – Present and past tenses (continued)

Language
A) Vocabulary:
- Regular and irregular verbs
B) Functions/ skills:
- Reading comprehension
C) Gammar
- 2 Past simple and Continuous

STARTER

28
GRAMMAR

EXERCISE

1 Complete the newspaper story about a fire. Put in the past simple forms of the verbs.

Two people (Ex) died (die) in a fire in Ellis Street, Oldport yesterday morning. They (1)………………......................(be)
Herbert and Molly Paynter, a couple in their seventies. The fire (2)……………………………….. (start) at 3.20 am. A
neighbour, Mr Aziz, (3)……………………………… (see) the flames and (4) …………………………… (call) the fire brigade. He also
(5)………………………......... (try) to get into the house and rescue his neighbours, but the heat (6)……………………………..
(be) too great. The fire brigade (7) (arrive) in five minutes. Twenty fire-fighters (8) ……………………….. (fight) the fire and
finally (9)……………………………. (bring) it under control. Two fire-fighters (10)…………………………… (enter) the burning
building but (11)……………………………… (find) the couple dead.

29
2 Complete the conversation. Put in the past simple negatives and questions.

Claire: (Ex) Did you have (you / have) a nice weekend in Paris?
Mark: Yes, thanks. It was good. We looked around and then we saw a show. (1) ..................................... (we / not /
try) to do too much.
Claire: What sights (2) ........................................... (you / see)?
Mark: We had a look round the Louvre. (3)……………………………. (I / not / know) there was so much in there.
Claire: And what show (4)............................................... (you / go) to?
Mark: Oh, a musical. I forget the name. (5) ..................... (I / not / like) it.
Claire: Oh, dear. And (6).............................................. (Sarah / enjoy) it?
Mark: No, not really. But we enjoyed the weekend. Sarah did some shopping, too, but (7) ........................... (I / not /
want) to go shopping.

VOBULARY

1. Describe the picture in 1 minute using your own words.

2. What do you think is the purpose of a business?
3. Is it just to make money?

4. Rank the professions below according to how ethical you think they are.

accountant civil servant lawyer police officer banker estate agent nurse teacher car sales
executive journalist dentist taxi driver

READING COMPREHENSION

I. Read the interview with Clair Bebbington, External Affairs Manager for a division of British Petroleum.

Interviewer: Why should companies be ethical or what are the advantages of a company in behaving
ethically?

Claire: Mmm, I think the whole issue of ethics is a very complex one. Companies are made up of people.
Multinationals are made up of many different nationalities. I think that companies are part of society and
as such they should reflect society's standards. Companies, especially multinational ones, do have
30
responsibilities in the world and should try to be positive influence and I think if a company is not ethical,
then it will not survive as a company.

Interviewer: Should a company have a code of ethics?

Claire: I think, from my point of view, it's useful on two counts. Firstly, it makes a commitment to certain
good behavior and so it's a way of communicating the importance of good behavior to all of its employees
and partners. Secondly, if a company has a code of ethics and spends time communicating it, it does
actually contribute to it's ethical behavior. If you express these things in writing, especially, then you can be
held accountable for them. This tends to mean that you are much more likely to act on them as well. I think
following up that code is difficult. People tend to have different ethical standards, and defining the term
'ethics' can be a problem. But I think generally to express what your ethics are is a positive thing to do.

Interviewer: What kinds of moral dilemmas do large companies face? Can you think of any examples?

Claire: I think if you were to look at any company's ethical code, you would usually find in it a section about
offering bribes and this can be an area where people can get themselves into hot water. Facilitation
payments are part of doing business in many countries, and bribes are something which most companies
are not going to want to get involved in. But when does a facilitation payment become a bribe? And that is
a question that can be quite difficult to answer.

II. Comprehension Questions

Are these statements true (T) or false (F)? Tick the boxes.

Statements T F
The issue of ethics is simple
2. If a company is not ethical, then it will not survive as a company.
3. If a company puts its code of ethics in writing, it is more likely to act on it.
4. Following up a code of ethics is difficult.
5. People tend to have similar ethical standards.
6. Facilitation payments are part of doing business in many countries.

VOCABULARY

1. Match these expressions with tax to their definitions.

1 tax avoidance a someone who lives in another country for tax reasons
2 tax bracket b to introduce a new tax on something
3 tax evasion c to make the tax go up
4 tax exempt d when you don't have to pay tax on certain income
5 tax exile e to cancel a tax g trying not to pay tax (legal)
6 to abolish tax f tells you what amount of tax to pay based on income
7 to impose tax g trying not to pay tax (illegal)
8 to increase tax h trying not to pay tax (illegal)

Write your answers HERE: 1 _____ 2_____3_____4_____5_____6_____7_____8_____

READING AND GRAMMAR

31
Past Continuous

32
EXERCISES

1 Today is the first of January, the start of a new year. Most people are feeling a bit tired.
What were they doing at midnight last night?
Use these verbs: dance, drive, listen, watch, write
Use these phrases after the verb: an essay, his taxi, in the street, television, to a band

Ex. Claire was listening to a band.

1 Trevor and Laura .................................................................................................................................

2 Vicky and Rachel ..................................................................................................................................
3 Tom .....................................................................................................................................................
4 Andrew ..............................................................................................................................................
2 Complete the conversation. Put in the past continuous forms.
Jessica: (Ex) I was looking (I / look) for you, Vicky. I'm afraid I've broken this dish.
Vicky: Oh no! What (1)………………………………………..(you / do)?
Jessica: (2)…………………………. .................. (I / take) it into the kitchen. I bumped into Emma. (3)
………………………………………. (she / come) out just as (4) ……………………….. (I /go) in.
Vicky: I expect it was your fault. (5)......................................................... (you / not / look) where (6)
………………. ................................ (you/ go).
Jessica: Sorry. I'll buy you another one as soon as I have some money.

3 What can you say in these situations? Add a sentence with the past continuous to say that an action lasted a long
time.

Ex. You had to work yesterday. The work went on all day.

I was working all day.

1 You had to make phone calls. The calls went on all evening.
……………………………………………………………………………………………………………………………………………………………………………………
2 You had to wait in the rain. The wait lasted for half an hour.
……………………………………………………………………………………………………………………………………………………………………………………
3 You had to make sandwiches. This went on all afternoon.
……………………………………………………………………………………………………………………………………………………………………………………
4 You had to sit in a traffic jam. You were there for two hours.
……………………………………………………………………………………………………………………………………………………………………………………
5 Your neighbour played loud music. This went on all night.
……………………………………………………………………………………………………………………………………………………………………………………

33
Tenses – Present and past tenses (continued)
Language
Vocabulary:
- About assets, liabilities and the balance sheet

Functions/ skills:
- Reading comprehension

Grammar:

- Present perfect

STARTER

I. In groups, translate and discuss the meanings of the following terms:

Assets, liabilities, balance sheet, current assets, fixed assets, intangible assets, goodwill, brands, going
concern, depreciation, amortization, charges, write off, book value, current liabilities, long-term liabilities,
balance sheet, long-term liabilities and financial year

READING

1 Read text A,B,C and D

ASSETS, LIABILITIES AND THE BALANCE SHEET

Text A

34
Text B

Text C

Text D

35
2 Look at Text A. What kind of asset is each of the following? Which three are not assets?

3 Look at Texts C and D above and say if these statements are TRUE or FALSE

Vocabulary

1 Use the correct form of words in brackets from Text B to complete these sentences.

GRAMMAR

- The present perfect

36
Form

Irregular forms

Use

EXERCISE

1. Add a sentence. Use the present perfect.

37
2. Trevor and Laura are decorating their house. Fill in the gaps. Use the present perfect

The present perfect (2):

just, already, yet; for and since

A Just, already and yet
We can use the present perfect with just, already and yet.

 Just means 'a short time ago'. Vicky heard about the concert not long ago.

 Already means 'sooner than expected'. They sold the tickets very quickly. We use yet when we are expecting
something to happen. Vicky expects that Rachel will buy a ticket.

 Just and already come before the past participle (heard, sold). Yet comes at the end of a question or a
negative sentence.

Here are some more examples.

1) We've just come back from our holiday.

2) I've just had an idea.
3) It isn't a very good party. Most people have already gone home.
4) My brother has already crashed his new car.
5) It's eleven o'clock and you haven't finished breakfast yet.
6) Has your course started yet? But for American English see page 377.

For and since

38
We can use the present perfect with for and since.

1) Vicky has only had that camera for three days.

2) Those people have been at the hotel since Friday.
3) I've felt really tired for a whole week now.
4) We've lived in Oxford since 1992. NOT We live-here-sinee-1992. Here something began in the past and has
lasted up to the present time.

We use for to say how long this period is (for three days). We use since to say when the period
began (since Friday).

We use how long in questions.

1) How long has Vicky had that camera? ~ Since Thursday, I think.
2) How long have Trevor and Laura been married? ~ Oh, for about three years.

We can also use the present perfect with for and since when something has stopped happening. /
haven't seen Rachel for ages. She hasn't visited us since July.

When we use the present perfect, we see things as happening in the past but having a result in the present.

We've washed the dishes. (They're clean now.) The aircraft has landed. (It's on the ground now.)
We've eaten all the eggs. (There aren't any left.) They've learnt the words. (They know the words.)
You've broken this watch. (It isn't working.)

EXERCISES

1. Write replies using the present perfect and just.

2. Complete the dialogue. Use the present perfect and just, yet and already.

39
3. Complete the sentences with for or since.

VOCABULARY
1. What does an auditor do? Look at the following activities and decide which ones are normally done
internally or externally.

An auditor ...

1. spends time getting to know the business as well as the environment and the industry in which it operates…
2. analyses the internal business and financial systems used to make and record transactions…
3. gathers evidence on the financial control systems and the figures in the financial statements…
4. gives advice on the business methods and transactions of the company…
5. examines financial statements to determine whether they conform to generally accepted accounting principles…
6. prepares the financial statements in accordance with the generally accepted accounting principles of the country
where the enterprise operates…
7. examines the management report and determines whether it conforms to the financial statements…
8. guarantees the correctness of the figures presented in the accounts…
9. provides consulting services…
10. presents a written report to the management of the company, describing whether the accounting records, financial
statements and management reports to legal requirements...
11. maintains confidentiality and independence…

2. Auditors often have to write or present reports on the financial information they have audited.
This is especially important for enterprises with branches or subsidiaries in foreign countries.
Look at the following sentences and decide which graph or chart goes best with the description.

40
3. Talking about the Future – Future forms
Language

A) Vocabulary:
- About share capital and debts

B) Functions/ skills:
- Reading: Predicting, scanning and skimming skills

C) Grammar:
- 1 Will and be going to

READING
Skimming text

Skimming is a reading technique that can help you:

• read more quickly
• decide if the text is interesting and whether you should read it in more detail

You can use the skimming technique when you want to identify the main ideas in the text.

41
How is skimming different to scanning?

The term skimming is often confused with scanning.

• You skim a text to obtain the gist - the overall sense - of a piece of writing. This can help you decide whether to
read it more slowly and in more detail.
• You scan a text to obtain specific information. For example, to find a particular number in a telephone directory.

Sometimes you can use both reading methods. After you’ve skimmed a piece of text to decide whether it’s of
interest, you might then use scanning techniques to find specific information.

How do you skim read?

When you use the skimming technique you don’t read the whole text word for word. You should use as many clues
as possible to give you some background information. There might be pictures or images related to the topic, or an
eye-catching title. Let your eyes skim over the surface of the text and look out for key words while thinking about
any clues you’ve found about the subject.

• Read the title, subtitles and subheadings to find out what the text is about.
• Look at the illustrations to give you more information about the topic. • Read the first and last sentence of each
paragraph.
• Don’t read every word or every sentence. Let your eyes skim over the text and look out for key words.
• Continue to about the meaning of the text.
Scanning text
You can use the scanning technique to look up a phone number, read through the small ads in a newspaper, or for
browsing television schedules, timetables, lists, catalogues or webpages for information. For these tasks you don’t
need to read or understand every word.

Scanning is also useful when you don’t have time to read every word. This could be when you’re studying or looking
for specific information from a book or article and need to find it quickly.

Tips: better scanning

• Don’t try to read every word. Instead let your eyes move quickly across the page until you find what you’re
looking for.
• Use clues on the page, such as headings and titles, to help you. • In a dictionary or phone book, use the header
words to help you scan. You can find these in bold type at the top of each page.
• If you’re reading for study, start by thinking up or writing down some questions that you want to answer. Doing
this can focus your mind and help you find the facts or information that you need more easily.
• Many texts list things in alphabetical order from A to Z. These include everyday materials, such as the phone
book or indexes to books and catalogues.
• There are many ways to practise scanning skills. Try looking up a favourite recipe in the index of a cookbook,
search for a plumber in your local Yellow Pages or scan webpages on the internet to find specific information.

42
Skimming a school prospectus

1. Skim read the Portham Village School prospectus then answer the questions.

43
Skimming a school prospectus

1. Is the prospectus aimed at children or parents?

________________________________________________________________
2. Would you use the prospectus to:

a. find directions to the school?__________________________________

b. find out what time the school opens? _____________________________

c. find out about school uniform? _________________________________

3. As well as illness, which issues does the ‘Absence’ section deal with?
________________________________________________________________
4. Does the prospectus give details of the curriculum?
________________________________________________________________
5. You can find out about school clubs from this prospectus. True or false?
________________________________________________________________
6. The prospectus tells parents about the issues of bullying. True or false?
________________________________________________________________
7. Does the prospectus give parents information about school examinations?
________________________________________________________________
8. Does the prospectus tell parents how to purchase second-hand uniform?
________________________________________________________________
9. Does the prospectus tell you about school lunches?
________________________________________________________________
10. The prospectus gives you the telephone number to call if your child is ill. True or false?
VOCABULARY

STARTER

I. Translate the following words and expressions in the box below:

New words Translation New words Translation

Raise capital shareholders
Share capital dividends
Loan capital loans
Invest in interests
lenders repayments
Repayments principal
Put up money indebtedness
venture capitalist debt
borrower borrowing
Bonds overleveraged
Debentures Collateral
Leverage

44
READING AND VOCABULARY

- SHARE CAPITAL AND DEBTS

I. Read Texts A,B,C,D and E

Text A

Text B

Text C

Text D

45
Text E

II. Choose the correct expression in brackets from Texts A, B and C. Read the texts again.

3 Answer these questions, using expressions from Texts C, D and E.

GRAMMAR
- Will and Be Going to

46
  Will does not express an intention.

 It's her birthday. She's going to have a meal with her friends, NOT She'll have a meal. But we
often use be going to for an intention and will for the details and comments. We're all going
to have a meal. There'll be about ten of us. ~ Oh, that'll be nice.

 As well as be going to, we can use the present continuous. We're going to drive/We're
driving down to the South of France. ~ That'll be a long journey. Yes, it'll take two days. We'll
arrive on Sunday.

EXERCISES

1. Complete the conversations. Put in will or be going to with the verbs.

47
Ex. Vicky: Have you got a ticket for the play?
Daniel: Yes, I'm going to see (see) it on Thursday.
Ex. Harriet: The alarm's going. It's making an awful noise.
Mike: OK, I'll switch (switch) it off.

1 Daniel: Did you buy this book?

Matthew: No, Emma did. She……………………………………… (read) it on holiday.
2 Laura: Would you like tea or coffee?
Sarah: Oh, I…………............................................ (have) coffee, please.
3 Trevor: I'm going to miss a good film on TV because I'll be out tonight.
Laura: I ............................................................ (video) it for you, if you like.
4 Rachel: I'm just going out to get a paper.
Emma: What newspaper ...............................................………. (you / buy)?

2. What would you say? Use will or be going to.

Ex. You want to express your intention to look round the museum.
Your friend: Do you have any plans for this afternoon?
You: Yes, I'm going to look round the museum.

1 You hate dogs. Dogs always attack you if they get the chance.
Your friend: That dog doesn't look very friendly.
You: It's coming towards us ....................................
2 You predict the landingplanp of aliens on the earth in the next ten years.
Your friend: All this talk about aliens is complete nonsense, isn't it?
You: Is it? I think .........................................
3 You know that your friend's sister has decided to get married.
Your friend: Have you heard about my sister?
You: Well, I heard that ........................................
4 You suddenly decide you want to invite Ilona for a meal.
Your friend: Did you know Ilona will be in town next weekend?
You: No, I didn't. ....................................................

3 Complete the news report about the village of Brickfield.

Use will or be going to. Sometimes either is possible.

We have learned this week that the local council has plans for Westside Park in Brickfield.
The council (Ex.) is going to sell (sell) the land to a builder, Forbes and Son. The plans are all ready.
'(1)…………………………………….. (we / build) fifty houses,' said Mr Forbes. 'In two years' time everything
(2)……………………………………………….. (be) finished. I'm sure people (3)………………………………….. (like) the
houses. Most of them (4)………………………………....... (be) for young families. And we intend to take
care
of the environment. (5)…………………………………… (we / not / cut) down all the trees, only a few of
them.'
But people living near the park are angry. 'This is a terrible idea. We're all against it,' said Mrs Mary
Brent.

48
'(6)……………………………………. (we / have) a protest march on Saturday. I expect everyone in Brickfield
(7)………………............................... (be) there. We've reached our decision.
(8)……………………………….. ..............(we / stop) this plan.'

VOCABULARY
1. Use words from the box to fill in the gaps.
abolish • bracket • breaks • exempt • exile • increase • property • return

2. Now choose the option which makes most sense.

'Have a look at this. Last year was really good. Profits 1 fell/ rose dramatically after we launched
Glenogen. And here you can see how it affected the rest of the market. CFL remained 2 stable/
gradual, which was a bit of a surprise, but lunfil was hit quite badly – sales 3 increased/ decreased
to almost non-existent. Now look here. This next graph shows what we think will happen next year.
Good news again. Everything’s going 4 up/ down.’

Talking about the Future – Future forms (Continued)

Language
A) Vocabulary:
- Banking terms
B) Functions/ skills:
- Speaking about opening a business
C) Grammar
- 2 Present continuous and be going to
STARTER

- SPEAKING

49
I. Reading and Vocabulary
1 Read text A, B and C, below.

Text A

Text B

Text C

2 Read Text A again and say if the statements below are TRUE or FALSE.

50
3 Kevin is phoning his bank. What expressions in Text A and B above could replace each of the
underlined items?

4 Match the sentences beginnings (1-3) with the correct endings (a-c). The sentences all
contain expressions from Text C.

GRAMMAR

51
EXERCISES

4. Conditional sentences
Language

Vocabulary:
- Legal vocabulary

52
Functions/ skills:
- Reading: Comprehension
Grammar:
- Conditional sentences
GRAMMAR

The First Conditional

EXERCISES

1. Read the conversation and then choose the correct forms.

2. Match the sentences and then join them with if

53
The Second Conditional

EXERCISES

1 Comment on these situations. Use a second conditional with would or could.

54
2 Complete the conversation. Put in the correct form of the verb. You may need to use will
or would.

READING
Sexism in language

Sexism is a political issue today. It affects the language we choose to use. Many people speaking or
writing English today wish to avoid using language which supports unfair or untrue attitudes to a
particular sex, usually women.

When Neil Armstrong stepped onto the moon he uttered a memorable sentence: "That's one small
step for a man, one giant leap for mankind." If he had landed on the moon in the mid-'90s no doubt
he would have said a much more politically correct sentence: "That's one small step for a person,

55
one giant leap for humankind." Less poetic but certainly more literally representative of the whole of
the human race!

Certain language can help to reinforce the idea of male superiority and female inferiority. What is
now termed "sexist" language often suggests an inherent male dominance and superiority in many
fields of life. Male pronouns, he, his and him are used automatically even though the sex of the
person is not known. "A student may wish to ask his tutor about his course". Or we say, "Who's
manning the office today?"

At work there is a tendency to associate certain jobs with men or women. For example, "A director
must be committed to the well-being of his company." but "A nurse is expected to show her
devotion by working long hours." In addition, job names often include reference to the sex of the
person: "We're employing some new workmen on the project." "I'm talking to a group of
businessmen next Friday." "The chairman cannot vote." "He is a male nurse" "I have a woman
doctor." The use of such words tends to reinforce the idea that it is not normal for women to be in
professional, highly-paid, technical and manual jobs. Also, that it is not natural for a man to work in
such a caring (and generally poorly-paid) role as that of a nurse.

So how can this bias in the language be reduced? Look at the box below for some suggestions:

1. Avoid unnecessary male pronouns by using plural pronouns "they", "them", etc.

" Someone has left their briefcase behind."

"If anyone phones, tell them I am in a meeting."

2. Replace male pronouns with combinations such as "she or he", "him or her", "her or his".*

" A fashion model is usually obsessive about her or his diet." 

"The journalist must be accurate when she or he reports interviews."
(* these combinations can sound rather awkward. They should not be repeated often in a piece of
writing or conversation. The written form s/he, he/she, her/him is acceptable.)

3. Use other words when referring to both men and women.

" People are ..."
"Human beings must protect ..."
"Who's staffing the office?"

4. Use expressions or pronouns that do not support sexist assumptions about jobs.

" Teachers must not be late for their classes."

"A chairperson should be fair to all her or his colleagues."

5. Use job names that apply equally to men and women.

" The chairperson handed out notes of the last meeting."

"Mary is a very experienced camera operator."
"James is a nurse and Barbara is a doctor."
"We offer language courses for business people."

56
Over the last few years, changes in the role of women - and men - in society have made much sexist
language out -of-date. Native speakers of English are slowly adjusting to the pressures for a more
neutral language. Fortunately, this change is being accompanied by a measure of humour, which,
fortunately, is common to both sexes!

Reading for meaning

When you read an article, you can often guess the words you do not know from the context. Find
words or expressions in the above article which have the following meanings:

a. said ________________________________
b. large jump ___________________________________
c. completely truthful ___________________________________
d. essential / natural ___________________________________
e. trend ___________________________________
f. kind and helpful ___________________________________
g.an often unfair or irrational tendency in favour ___________________________________
of something
h. clumsy ___________________________________
i. impartial ___________________________________
5. Modal verbs
Language
A) Vocabulary:
- Financial Indicators Vocabulary
- Expressing obligations
B) Functions/ skills:
- Reading and writing

STARTER

Financial Indicators Vocabulary

I. Discuss the meanings of the following financial terms and expressions then translate them:

New words Translation New words Translation

Finance financial
economics uneconomic
economic unemployment
inflation economy
jobless out of work
gross domestic product economic output
growth rate growth
trade deficit inflation rate
balance of payment gross national
product

57
trade balance trade gap
inflationary surplus

SPEAKING

READING AND VOCABULARY

INDICATORS

Text A

Text B

Text C

58
Text D

VOCABULARY

1 Complete these sentences with expressions form Text A above.

2 Complete what this reporter says about Paradiso’s Economy with expressions from Text Band C
above.

3 Look at Text D above and complete the graph and the pie charts using the information
below.

59
GRAMMAR

- MODAL VERBS

1 Please correct the following sentences:

1. "Do you must leave so soon?"

“_______________________________________________________________? “
2. A. "Must everyone here start work at 8 o'clock?"
B. "No they mustn't. We have a flexi-time system."
B. “_______________________________________________________________? “

What's the rule?

Must and have to both express obligation and so are often used in the same way, but there is a
slight difference in meaning.

Must Have /has to

+
Example: My car's dirty. I must clean Example: She has to type correspondence for both
it. managers.

Must is used for personal obligation: Has/Have to is more impersonal: 

I must clean it (I think it is necessary She has to type (this is one of the obligations of her work
to clean it). contract).
? Must Do/Does ... have to ... ?

60
 Example: Do you have to go?
Example: Must you leave so soon?

Must ... ? and do/does ... have to ... ? can be used in the same way, but do/does ... have to ... ? is
more common than must ... ?

Mustn't Don't/doesn't have to

Example: They mustn't smoke at Example: They don't have to wear a tie at work.

-
work. It's forbidden.
Don't/doesn't have to means that there is no obligation
Mustn't expresses prohibition. (They can wear a tie if they like, of course!).

EXERCISES

1 Use the correct form of must or have to - in the positive or negative form as appropriate - to fill
in the gaps in these sentences.

1. Everyone ____________________ pay their tax by the Pay As You Earn (PAYE) scheme.
2. She _______________________ carry such heavy books. She has a very bad back probl
3. We _______________________ give a presentation to the Board this afternoon.
4. _______________________ (you) write the reports yourself?
5. He ________________ speak German with our clients in Hamburg. They all speak
excellent English.
6. I _______________________ meet my boss every Monday morning to discuss the sales
figures.
7. You _______________________ leave your car there. That's the Managing Director's
parking bay.
8. I _____________________ send my mother some flowers. It's her birthday tomorrow.
9. How often _______________________ (he) take the car in for a service?

VOCABULARY

READING

Read this example of an extract from an independent auditors' report in the U.S.A. and answer the
questions.

61
6. Business correspondence
Language

A) Vocabulary:
- Formal language of emails and letters
B) Functions/ skills:
- Writing: formal and informal letters
C) Grammar
1 Formal letter writing – application
WRITING

INFORMAL EMAIL/LETTER

62
How to write informal letters or emails

Salutation or Greeting
Start with Dear followed by the first name of the person to whom you are writing. In emails, you can
also start with Hi (and the person's name). Dear Ben, or Hi Ben, (Don't forget to use only the first
name of the person you are writing to and not Dear Mr John, which is never used, or Dear Mr John
Brown, which sounds too formal.)

Informal letters sometimes have a comma after the person's name, and the letter starts on the line
below. The important thing is to be consistent with the style that you choose to use (so if you use a
comma after the person's name at the start of the letter, use a comma after the closing statement at
the end).

Body
Openings
When writing an informal letter, you are usually replying to another letter. You would normally start
with a greeting, then acknowledge the letter to which you are replying. It is often a good idea to
acknowledge some key information given in the original letter too. You can also make a comment on
your own reply.

Useful phrases for the opening

 How are you? / How have the family been? / I hope you are well.
 Thank you / Many thanks for your (recent/last) letter / postcard.
 It was good / nice / great to hear from you again.
 I was so surprised to hear that...
 I’m sorry I haven’t written / haven't been in touch for such a long time.
 It’s ages since I’ve heard from you. I hope you're well / you and your family are well.
 How are things? / How are you? / How’s it going?

Closing
 The end of your letter is as important as the beginning. There are some standard ways of
finishing an informal letter or email.

 Give a reason why you're ending the letter: Anyway, I must go and get on with my work! / I
guess it's time I got on with that studying I've been avoiding.

 Send greetings and/or make reference for future contact: Give my love / regards to... / Say
hello to... / Anyway, don't forget to let me know the dates of the party. / I'll try and phone
you at the weekend to check the times. / We must try and meet up soon. / I can't wait to
hear from you / Look forward to seeing you again / Hope to hear from you soon / See you
soon / Write soon
 Closing statement such as Love, Lots of love, All the best, Take care, Best wishes, should be
written on a new line. If you used a comma after the opening greeting, use a comma here
too.

 Signing off: Your first name then follows on another new line

63
INFORMAL EMAIL/LETTER 1 - MODEL QUESTION

TASK
You have received this email from an English-speaking boy called Simon.

Hello,

I would like to get to know someone from your country and a friend has told me that you would like
to practise your English. Perhaps we could email each other. Could you tell me a bit about yourself
and your family? Could you suggest how we might meet sometime in the future?

Thanks,

Simon

Write your email in 100 words in an appropriate style.

INFORMAL EMAIL/LETTER - MODEL ANSWER

Hello Simon,

I'm glad you're interested in my country. As your friend

said, I'd like us to email each other to help me improve
your English.

Let me start by telling you a bit about myself and my

family. My name's Ivo and I live in Kutna Hora, which
is about 45 minutes from Prague by car. I used to work
for a medical company but now I'm learning to be a
salesperson. In the future I want a job where I can travel
for my work. I've already been to a few places in
Europe but I've never been to an English-speaking
country.

64
I live at home with my parents, which is convenient, as
I don't have to do much housework and my meals are
cooked for me. My younger brother is studying at
university. Although he is four years younger than me,
we get on quite well. We both enjoy snowboarding and
music.

What about you? Have you ever been to the Czech

Republic? It would be great if you could come over one
day and we could fix up a meeting. Why don't you let
me know your plans?

Anyway, I must go and get on with my work! Looking

forward to hearing from you soon.

Best wishes,

Ivo

FORMAL LETTER OR EMAIL

Formal letters may be written to an individual or to an organisation. The purpose may be, for
example,
 to apply for part-time or vacation work (application letter)
 to apply for study or scholarship opportunity (application letter)
 to complain about something (complaint letter)
 to make suggestions about something
 to request information (enquiry letter)

In many exam questions, you will be told what to include in your reply. Make sure that your reply
answers any questions that you were asked in the task and takes into account any additional
information that you have been told to mention. It is important that you include these in order to
get a good grade.

65
How to write formal letters or emails

[1] Salutation or Greeting

 If you know the name of the person you are writing to use the title (Mr, Mrs, Miss or Ms)
and the surname only. If you are writing to a woman and do not know if she uses Mrs or
Miss, you can use Ms, which is for married and single women. Examples: "Dear Mr
Simpson," / "Dear Mrs Flanders," / "Dear Miss Skinner," / "Dear Ms Van Houten,"

 (B) If you do not know the name of the recipient of the letter begin with "Dear Sir," / "Dear
Madam," (if you know you are writing to a man or a woman) or "Dear Sir or Madam," or
“Dear Sir/Madam,” (if you do not know the sex of the person you are writing to)

[2] Body

[2.1] Opening

The first paragraph states the reason(s) for writing and, if needed, what you are responding to (an
advert, a prospectus...). In addition, an opening paragraph is needed to make reference to previous
correspondence.

Useful phrases for the opening

 I would like to apply for one of the scholarships I saw advertised in your prospectus.
[applying for a scholarship]
 I am looking for an outdoor work during the summer holidays and I would like to apply for
the position of hotel lifguard assistant which I say advertised in my university's student
newspaper. [applying for a job]
 I have seen your advertisement for the post / vacancy / job of… advertised in the local
newspaper on 16 June. I am writing because I would like to apply for the job. [applying for a
job]
 I am the secretary of my college Science Club. I saw your advertisement for the exhibition
"The Next 100 Years" and I am interested in organising a group visit. I was wondering if I
could ask you some questions about it. [requesting information]
 I am writing (in order) to complain about the advertisement for your new game. Having just
played the game, I realise that the advertisement is misleading. [complaint letter]
 I am writing with regard to ... I am writing with reference to... I am writing in response to...
 Thank you for /your letter of 9 May... /for your letter regarding...
 In reply tor your letter of 8 May, ...

[2.2], [2. .] Main content

The rest of the body will be organized in paragraphs: that will make reading easier and the effect on
the target reader will be better. For example, an application letter may have this layout and
paragraphing:
 Salutation or greeting
 #1 Opening (first paragraph)
 #2 About you (age, where you live, education-training and/or work experience relevant to
the job, languages ...)
 #3 Reasons for applying (why you are suitable for the job)
 #4 Conclusion (availability for interview, further questions, ... - if necessary)

66
  Closing
 Final salutation
 Name and surname

Note

For any type of formal letter, paragraphing is just a matter of common sense, grouping ideas
logically (covering two points or questions in one paragraph, two other points or questions in another
paragraph...). You should aim for three to five paragraphs.

[3] Closing

The end of your letter is as important as the beginning. You usually state what you would like the
recipient to do, make a reference to a future event, offer to help...
 I look forward to hearing from you soon / I look forward to receiving your reply
 I look forward to receiving a full refund (in a complaint letter)
 I would like to know what you are going to do about this situation (in a complaint letter)
 I would like to thank you in advance for this information (in a enquiry letter -requesting
information)
 If you require/Should you need further information, please do not hesitate to contact
me/feel free to contact me.

[4] Final salutation

Depending on how you started your letter (See "[1]Salutation or Greeting" above), you will end your
letter with
 (A) Yours sincerely,
 (B) Yours faithfully,

[5] Sign your name and then print your name clearly underneath on another new line

Moe Szyslak

Moe Szyslak

LETTER LAYOUT

67
Letter of application - useful phrases

Dear ......

I am writing to apply for a/the job of ..... which I saw advertised in "The Guardian" newspaper.

I am 26 years old and at the moment I am studying … at …. Having studied English for over seven
years I am a fluent speaker of the language. My qualifications also include Proficiency certificates in
both French and German. As far as experience is concerned, I have worked as ............. for ........... As
for my character, people tell me I am ...............

I feel I would be suitable for this job because ............ . This will give me the opportunity to ….. . I
would also like the chance to....

I look forward to hearing from you.

Yours …

Name

FORMAL EMAIL/LETTER - MODEL QUESTION

TASK

68
You see this announcement in an English-language college prospectus.

Scholarships
Every year, two scholarships are offered to candidates from overseas who can show how our one-
year course in English and American studies would help their career. Scholarships cover fees,
accommodation and food, but not transport or personal spending money. To apply, write a letter
explaining why you think you deserve a scholarship.

Write your letter in 100 words in an appropriate style.

FORMAL EMAIL/LETTER - MODEL ANSWER

Dear Sir/Madam,

I would like to apply for one of the scholarships I saw

advertised in your prospectus.

At present, I am training to be a secondary school teacher of

English and I finish my course at
the end of June. However, I feel I still have a lot to learn about
the language and culture of the English-speaking world and
would benefit considerably from a course in an English-
speaking country.

The reason I am applying for a scholarship is that I cannot

afford the cost of studying abroad. I
have no income except for my student grant, so if I am
fortunate enough to be given a scholarship, I would have to
work part-time to save some personal spending money. My
parents will borrow som money for my airfare if I am
successful.

I would appreciate being given the opportunity to study at

your college and would be very grateful if you would consider
my application.

Yours faithfully,

69
Pedro Gadicto

ORGANIZING INFORMATION

What’s a paragraph?

A paragraph is a group of related sentences that develop an idea. In nearly every paragraph, there is
one idea that is more important than all the others. This idea is called the main idea of the
paragraph and is usually found at the beginning of the paragraph.

Sample paragraph 1

All computers, whether large or small, have the same basic capabilities. They have circuits for
performing arithmetic operations. They all have a way of communicating with the person(s) using
them. They also have circuits for making decisions.

In sample paragraph 1, the first sentence, ‘All computers, whether large or small, have the same
basic capabilities.’ Express the main idea of the paragraph.

All main idea sentences have a topic and say something about the topic.

Example:

All computers, [topic] whether large or small, have the same basic capabilities. [about the topic]

In some of your reading, finding main ideas may serve your needs but in much of your studying you
need to grasp details. It is sometimes difficult to grasp and understand details than main ideas. You
will find it helpful if you think of details as growing out of the main idea. In sample paragraph 1,
there are three major details growing out of the main idea. These are the major details:

1. They have circuits for performing arithmetic operations.

2. They all have a way of communicating with the person(s) using them.

3. They also have circuits for making decisions.

A major detail often has minor details growing out of it. Theses minor details tell more about a major
detail, just as major details tell more about a main idea. In studying, you often find a paragraph that
has many small details that you must grasp and remember. Breaking up a paragraph of this kind into
its three components: the main idea, major details and minor details will help you understand and
remember what it is about.

EXERCISE
1 Organize this paragraph into its three components.

70
It is the incredible speed of computers along with their memory capacity that make them so useful
and valuable. Computers can solve problems in a fraction of the time it takes man. For this reason,
businesses use them to keep their accounts, and airlines, train lines, and bus lines use them to keep
track of ticket sales. As for memory, modern computers can store information with high accuracy
and reliability. A computer can put data into its ‘memory’ and retrieve it again in a few millionths of
a second. It also has a storage capacity for as many as a million items.

Diagram 1

2 Find the main idea, major details, and minor details by completing the block diagram after
reading the paragraph.

The computer has changed the production of copy in the newspaper industry. There are three steps
involved in the process: input, correction and output. First, the computer numbers each story,
counts words and gives a listing of the length of each story. Then a page is made up, advertisements
are placed in, the copy is shifted or deleted and corrections are made. Finally, the computer
hyphenates and the result of all this is a newspaper page.

Diagram 2

71
3 Find the main idea, major details, and minor details by completing the block diagram after
reading the paragraph.

Railways use large computer systems to control ticket reservations and to give immediate
information on status of its trains. The computer system is connected by private telephone lines to
terminals in major train stations and ticket reservations for customers are made through these. The
passenger’s name, type of accommodation and the train schedule is put into the computer’s
memory. On a typical day, a railways computer system gets thousands of telephone calls about
reservations, space on the railways, and request for arrivals and departures. A big advantage of the
railway computer ticket reservation system is its rapidity because a cancelled booking can be sold
anywhere in the system in just a few seconds later. Railway computer systems are not used for
reservations alone. They are used for a variety other jobs including train schedules, planning, freight
and cargo loading, meal planning, personnel availability, accounting and stock control.

Diagram 3

72
73