Technical English for

Accounting
By: Jose Antonio Taveras.
What is Accounting?
Accounting Basics
 Accounting is a
system meant for
measuring business
activities,
processing of
information into
reports and making
the findings
available to
decision-makers.
 Accounting System

Accounting Process
(Analysis and
• Invoices Records) • Balance Sheet
• Debit Notes • Statements of Incomes
• Credit Notes • Analysis and
• Deposits Classification of
performed operations
• Checks • Record Operations
• Synthesis of
Performed Operations. Exit System:
Entry Information
Financial
(Data Collection)
Statements
Balance Sheet

Who do I owe?
Liabilities
(Debts)

What do I Have?
Net Capital
Assets =
Assets - Liabilities
EXAMPLE BALANCE SHEET
Practice
 Withthe example in the last slide, make a
balance sheet giving names and numbers to
those accounts.

 Take a sheet and start working….

 In 10 minutes….
 Statement of Income
 Sales or Revenues
 Cost of goods sold
 Gross Profit
 Operating Expenses
 Sales, general and administrative
 Depreciation, amortization
 Operating Profits
 Other Incomes/Expenses
 Interest
 Income Taxes
 Net Income or Profit
Example of Statement of Income
HOMEWORK

In Last Example, the company sold

RD$4,000,000 for the year ended
December 31, 2017.
Make a Statement of Incomes
identifying some of the given
accounts.
Vocabulary
 Accounting – Contabilidad
 Account System – Sistema Contable
 Assets - Activos
 Balance Sheet – Hoja de Balance, Estado de Situación
 Cost of goods sold – Costo de Venta
 Credit Note – Nota de Credito
 Debit Note – Nota de Debito
 Gross Profit – Utilidad Bruta
 Income Taxes – Impuesto Sobre la Renta
 Invoice – Factura
 Liabilities – Pasivos
 Net Capital – Capital Neto
 Operating Expenses – Gastos Operativos
 Revenues - Ingresos
 Statement of Incomes – Estado de Resultado