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

Name: Sara Cruz Villamil

Cohort: 1906787-2

Training program: Gestion Bancaria y de Entidades

Instructor: Julieta Muñoz

Financieras

Date: 23-09-2020

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

C

A

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

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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 and adapted by SENA for pedagogical purpose, exclusively

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       

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 and adapted by SENA for pedagogical purpose, exclusively

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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 and adapted by SENA for pedagogical purpose, exclusively

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3.3. Reading practice: Reading about the Accounting Cycle. Before reading you should complete the following meaning chart: Spelling

Meani ng

Synonyms

liability

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

commitment

incom

An income statement calculates your company's income, expenses, and profits over a specified period of time.

affiliation, certification

e stateme nt owner's equity

Also known as capital, it is an accounting 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.

main owner

asset

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

effective

budget

A budget is an integrating and 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.

calculation

cash

Cash is a balance sheet item and is part of 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.

money

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used and adapted by SENA for pedagogical purpose, exclusively

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cost

It is the economic expense that represents 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 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 equity of the company or, failing that, decreases the debt or loss.

price

devaluation

entry

tax

The tax is a class of tribute (generally 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).

obliged

payroll

It is a commercial document that indicates 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.

list of fees

invoice

It is a commercial document that indicates 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.

account

Retrieved from: https://www.patriotsoftware.com/accounting/training/blog/what-is-accounting-cycle-steps/ Used and adapted by SENA for pedagogical purpose, exclusively

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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-