English Learning Guide

Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF

Name: Sara Cruz Villamil Cohort: 1906787-2 Date: 23-09-2020

Training program: Gestion Bancaria y de Entidades Instructor: Julieta Muñoz

Financieras

BASIC ACCOUNTING CONCEPTS/COMMERCIAL DOCUMENTS- VOCABULARY/ COST ACCOUNTING

This workshop attempts to enhance your accounting knowledge and it deals with basic accounting
concepts such as accounting-job-positions and functions, this workshop was created regarding
people you might work with in a regular work environment.

Objectives: from the development of these activities, you will be able to Identify back office
accounting personnel, analyze accounting personnel and function and discuss about basic
accounting concepts.

1. Work in groups and answer the following questions

 What’s accounting?
Accounting is a discipline that is responsible for studying, measuring and analyzing the assets and
financial economic situation of a company or organization, in order to facilitate decision-making
within it and external control, presenting the information, previously registered, in a systematic
and useful way for the different interested parties.

 Do you think accounting is important to keep a company floating? why/why not?

Of course, since it is a discipline that studies the accounts of the company and that allows to know
what its economic situation is. Accounting is a fundamental pillar in the administration of a
company. For a company to function properly it is necessary to have a good business vision and
control a multitude of factors.
 Do you know someone who works as an accountant? If so, who? Where does this person
work? Do you know what exactly this person does?
Yes, she is a friend of the family, works in Bancolombia, and was in charge of
advising clients on financial matters, such as improvements for their business, cost
reduction, insolvencies, among others:
 Provide financial and tax advice.
 Report irregularities.

2. a. Match these accounting firms with their definition1.

English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF

A. Public Accounting 1. firms typically employ Certified

Public
Accountants (CPAs).
B. Tax Accounting 2. firms use accounting skills and
legal policies to uncover
fraudulent and illegal activities.
C. Forensic accounting 3. firms complete fundamental
accounting tasks for small and
medium-sized companies.
D. Bookkeeping 4. firms focus on tax preparation
and planning for companies of all
sizes, and also
for individuals.

b. Match the images with the

concepts above
A C

B D
1
Retrieved from: https://smallbusiness.chron.com/types-accounting-firms-17677.html adapted and used
by SENA. Images retrieved from: https://smallbusiness.chron.com/types-accounting-firms-17677.html GC-F -005 V. 01
 3. Skills practice: Do the following activities to practice the learnt vocabulary
and English structures.

3.1. Speaking practice: talk about accountants

Work in groups of 4 people and share your opinion with the rest of the class.
Discuss the questions below:

- What jobs do accountants do?

Accountants work for both the public and private sectors and are those
professionals responsible for the financial status and accounting books of the
individual or company that has requested their services, in this sense, their
mission is to ensure that their clients comply with the applicable legislation and
with the established procedures, in addition to guaranteeing that there is a record
of the income and expenses of their accounts.

- Describe the educational requirements for accountants.

Most workers require accountants to have, at a minimum, a college degree in
accounting or another finance-related career. Some prefer to hire applicants with
Master's degrees in Business Administration, with an accounting specialization.
Only Certified Public Accountants can file reports on behalf of their clients with
the (SEC, Securities Commission). The education of certified public
accountants is defined by the different accounting offices in the various states.
Although a college program typically takes 120 credit hours, all states, with the
exception of the following four, require that the certified public accountant
complete 150 credit hours in college-level courses: Colorado, Vermont, New
Hampshire, and California. Most states also require the applicant to complete
certain business and accounting courses.
- Share with the group in a short oral presentation of jobs and duties for an accountant.
 Collect, classify and document the economic information in an orderly
fashion.
 Register the data obtained respectively in accounting books.
 Keep a well-ordered control and management of all accounting books,
filing their corresponding auxiliaries.
 Develop financial operations based on accounting principles.
 Show accuracy and transparency in accounting transactions.
 Supervise or manage financial movements in a timely manner.
 Prepare a monthly payroll process and keep all data under control and
according to certain policies of the company or client.
 Develop a budget plan based on prior analysis that adheres to the reality
of the client or business organization.
 Have a control system in the budget and avoid unnecessary expenses.

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used GC-F -005 V. 01

and adapted by SENA for pedagogical purpose, exclusively
  Constantly and in detail analyze all trends in business activity, focusing
on profits and costs.
 Present tax obligations or payment of taxes (if the client requires it).
 Relate with other public accountants to seek timely solutions and make
more beneficial decisions.
 Prepare financial statements and reports periodically, in order to know
the current situation.
 Comply with the accounting closing according to the type of company.
 Keep the financial system of money inflows and outflows updated.
 Keep the client's information confidential (according to the professional
ethics of the accountant).
 Provide constant and timely advice so that decisions can be made in this
regard.

3.2. Listening practice

Before watching the video, answer these questions:

- find the definition of “profit” and give some examples.

Profit is a positive concept because it means giving or receiving some good, that
is, that which satisfies some need. The benefit contributes, adds, adds, and from
it that utility or profit is obtained. This benefit can be economic or moral.
Examples:
 "This insurance policy gives me greater benefits than the previous one."
 "The work we do with children benefits them to better integrate into
society."

- look into a dictionary the concepts of internal, external, and government.

Internal
It is about what is on the inside or that does not have views to the outside.
External
The concept refers to that or that which acts or is presented on the outside, as
opposed to the internal.
Government
It is the main pillar of the State; the authority that directs, controls and
administers its institutions, which consists of the general political leadership or
exercise of the executive power of the State.

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

Because the state provides the environment to create a company, in addition to
the fact that the state feeds on the taxes that the company mainly generates. A
state without a company simply disappears.

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used GC-F -005 V. 01

and adapted by SENA for pedagogical purpose, exclusively
 Now, watch the video, make notes and practice your listening skill following
the link to the video: https://www.youtube.com/watch?v=Yj24JwZVd54

After watching the video, discuss and answer the following questions:
- What is the importance of having a good accounting process in a company?
A discipline that studies the accounts of the company and that allows to know
what its economic situation is. Accounting is a fundamental pillar in the
administration of a company. For a company to function properly it is necessary
to have a good business vision and control a multitude of factors.
- What is the purpose of a business?
It is the reason for being of the company. This should reflect the ideal motivations of
the people who work in the organization. It is like the soul of the organization.
- How could you keep your business floating?
 Plan for growth.
 You have to be unique.
 Hyper focus.
 Control the money.
 Act faster.
 Find alliances.
- What factors you should take into account when having a business?
 Choose a sector to work.
 Look for the minimum investment.
 Pay attention to legal paperwork.
 Create your own brand.
 Identify good suppliers and customers.
 Use management tools.

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used GC-F -005 V. 01

and adapted by SENA for pedagogical purpose, exclusively
 3.3. Reading practice: Reading about the Accounting Cycle.
Before reading you should complete the following meaning chart:

Spelling Meani Synonyms

ng
liability It is the fulfillment of obligations, or care commitment
when making decisions or doing
something.

incom An income statement calculates your affiliation, certification

e company's income, expenses, and profits
stateme over a specified period of time.
nt
owner's Also known as capital, it is an accounting main owner
equity term, and it is an important component of
a balance sheet. Indicates the portion of a
company's equity that an entrepreneur has
rights in relation to assets and liabilities.
Technically, the owner's equity is an
equation that subtracts liabilities from total
assets.

asset Assets are the assets, rights and other effective

resources economically controlled by the
company, resulting from past events from
which it is expected to obtain benefits or
economic returns in the future.

budget A budget is an integrating and calculation

coordinating plan that is expressed in
financial terms with respect to the
operations and resources that are part of a
company for a specific period, in order to
achieve the objectives, set by senior
management.

cash Cash is a balance sheet item and is part of money

current assets. It is the most liquid element
that the company has, that is, it is money.
The company uses this cash to meet its
immediate obligations. ... Money in legal
tender.

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used GC-F -005 V. 01

and adapted by SENA for pedagogical purpose, exclusively
 cost It is the economic expense that represents price
the manufacture of a product or the
provision of a service. By determining the
cost of production, you can establish the
retail price of the good in question (the
retail price is the sum of cost-plus profit).

depreciation In the field of accounting and economics,

the term depreciation refers to a periodic devaluation
decrease in the value of a tangible or
intangible asset. This depreciation can be
derived from three main reasons: wear and
tear, the passage of time and old age.

revenue An income is an item that increases the entry

equity of the company or, failing that,
decreases the debt or loss.

tax The tax is a class of tribute (generally obliged

pecuniary obligations in favor of the tax
creditor) governed by public law, which is
characterized by not requiring a direct or
determined consideration on the part of the
tax administration (tax creditor).

payroll It is a commercial document that indicates list of fees

the sale of a good or service. ... An invoice
is a commercial document that indicates a
sale of a good or service and that, among
other things, must include all the
information of the operation.

invoice It is a commercial document that indicates account

the sale of a good or service. ... An invoice
is a commercial document that indicates a
sale of a good or service and that, among
other things, must include all the
information of the operation.

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used GC-F -005 V. 01

and adapted by SENA for pedagogical purpose, exclusively
Read the text and complete the activities below.

What is the accounting cycle?

The accounting cycle is the process of recording

your business’s financial activities. The
accounting cycle looks back in time at the end of
a designated period. The cycle includes several
steps, starting when a transaction occurs. The
cycle ends when you record the transaction as
part of your financial statements.

The accounting cycle makes accounting easier,

breaking your bookkeeping down into smaller
tasks. It helps you see what you need to
accomplish next.

What are the steps of the accounting cycle?

The following accounting cycle steps can help

you keep financial records.

1. Identify transactions: First, separate your business transactions from all of the transactions you
made. You only want to include transactions related to your company in your financial records. For
example, you won’t record your grocery bill as a business expense in your books.

Use source documents to identify business transactions, such as receipts and invoices. Save these
kinds of financial documents to support your records. As you identify business transactions, decide
which account they fall under.

2. Record transactions in your journal: The journal is where you initially record business
transactions. It is a running list of financial activities, like a checkbook. Track transactions in your
journal chronologically as they happen.

If you use double-entry bookkeeping, record two entries for each transaction. Enter a debit for
one account and a credit for another. The debit and credit should be equal.

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

4. Unadjusted trial balance: For your books to be accurate, the debit and credit entries must be
equal. Use an unadjusted trial balance to test if your debits and credits match.
English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
Make a note of each account balance. Add all the debit balances together and all the credit
balances together. If the two totals are not the same, you might have an error in your books. Or,
you might need to make adjusting entries.

5. Adjusting entries: At the end of an accounting period, you might have incurred expenses but
not paid for them yet. And, you might have earned income but not collected it yet. Use adjusting
entries to recognize transactions that have occurred but not been recorded.

For example, you earned interest on a bank account balance. You have not recorded the interest
in your books, but it appears on your bank statement. Use an adjusted entry to recognize the
interest in your books.

6. Adjusted trial balance: Do an adjusted trial balance after making adjusting entries and before
creating financial statements. This step tests to see if the debits and credits match after making
adjusting entries.

7. Create financial statements: Once your accounts are up-to-date, create statements. The
following are common financial statements for small business:

 Income statements compare your profits and losses for the period.
 Balance sheets determine progress by detailing assets, liabilities, and equity.
 Cash flow statements show money coming into and out of the business.

Use your financial statements to measure performance, make improvements, and set goals. You can
also use statements to talk with lenders and negotiate terms with vendors.

8. Close your books: The final step in the accounting cycle is to close your accounting books.
Closing your books wraps up financial activities for the period. Do tasks like updating accounts
payable, reconciling accounts, reviewing your petty cash fund, and counting inventory.

When you close your books, you should get your accounting set up for the next period. Decide
which processes are moving your business forward. Create a calendar for completing future tasks.
File any financial documents from the last period and get rid of old documents that are no longer
useful.

According to the information from the text, tick the following statements, True (T) or False (F)

 The accounting cycle corresponds to the recording of the business’s financial activities. (T)
 The checkbook is one of the tools used to do the post entries record. (F)
 As the books need to be accurate, an unadjusted trial balance verifies whether debits and
credits match. (T)
 The statements are created as the accounts are up-to-date. (T)
 The accounting set up for the next period is part of the record transactions process. (F )
English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF

Based on the reading, describe each one of the following accounting concepts:

Transaction: When we talk about a transaction, we are talking about a different type of operation that is
carried out between two or more parties and that involves the exchange of goods or services in exchange
for the corresponding capital.

Posting: A post is each of the entries (articles) that we publish more or less periodically on a blog.

Trial balance: It is a test to see if the debits and credits match after performing a
input setting.

Journal entries: The newspaper is where you find business.

Financial statements: Financial statements are used to measure performance, make improvements, and set
goals.

Worksheet: It is an electronic tool used to organize and calculate numbers and formulas for use in the
fields of statistics, finance and mathematics.

Adjusting entries: An adjustment is an entry or exit movement of items to the warehouse. It is functional to
add the initial inventory, losses or increases of merchandise.

Closing the books:

When you close your books, you need to set up your accounting for the next period.
English Learning Guide
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
3.4 Writing practice

Create a job position advertising for an accountant. As shown in the example

4. Extension activity: the extension activities will help you improve your performance in the topics.
You need to reach at least five hours of practice on your own.

Perform a role play based on a job interview given by the instructor. Follow the prompts given
below.

- Based on your instructor’s orientation, explore the following website and practice the
English structures. Do at least 2 activities from each topic studied in class and deliver them
to your instructor: http://www.esl-lounge.com/student/grammar-guides/grammar-pre-