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Workshop No. Basic Accounting Conceptscommercial Documents - Vocabulary Cost Accounting
Workshop No. Basic Accounting Conceptscommercial Documents - Vocabulary Cost Accounting
Competency 1
Unit 5: Accounting
Workshop 1
Centro de Servicios Financieros- CSF
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.
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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.
Work in groups of 4 people and share your opinion with the rest of the class.
Discuss the questions below:
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.
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.
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.
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.
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-