YÊU CẦU:

Làm ngân hàng câu hỏi (câu hỏi ngắn và câu hỏi topic, viết câu trả lời tương ứng)
What is the accounting process? / What are the responsibilities of accountants?
What are the advantages of double-entry bookkeeping?
What are financial statements? What information do they disclose?
1. Làm bài tập từ vựng, đọc hiểu
2. Học thuộc từ vựng trong bài
-
PREVIEW
Match the words or phrases from a -j with their definitions from 1-10

a. The income statement f. Beginning merchandise

b. The balance sheet inventory
c. Drawings made by the owner g. Gross profit
d. Financial statements h. Statement of financial
e. The cost of sales position
i. The accounting period
j. Highly skilled employees
1. would
not have any effect on the income statement. - c
2. refer to the report on the results of operations and changes in financial position. D
Common financial statements:
(1) balance sheets (statement of financial position)
(2) income statements;
(3) cash flow statements;
(4) statements of shareholders' equity
3. provides information about the results of the business operation. - a
the results of the business operation can be shown via:
Gross profit = (equals) net sales - (minus) cost of goods sold.
Operating profit = gross profit - operating expenses.
EBITDA - earnings before interests, taxes, depreciations and amortization.
EBIT earnings before interests, taxes,
● Net income before tax
● Net income after tax
4. provides information about the resources (assets) acquired by the firm, including where
the resources come from (sources of assets). - b
Resources = assets: tài sản
Sources of assets: nguồn hình thành tài sản
Basically, there are 2 main sources of assets: the owners' equity and liabilities
5. is the excess net sales (doanh thu thuần) over cost of goods sold for a period. - g
Gross profit (n) lợi nhuận gộp
Net profit = profit after tax: lợi nhuận ròng
The owners of the company enjoy / are eligible to all net profits of the com
6. refers to price paid for the goods sold - e
7. is the cost of unsold merchandise at the beginning of the period - f Beginning
merchandise inventory
Inventory (n) hàng tồn kho
-Finished products = thành phẩm = merchandise inventory
-Raw materials
-Work in progress – sản phẩm dở dang
8. is another term for balance sheet - h
9. is not reported in a company's financial statements - j
10. may best be described as the time span covered by the income statement.

READING 1

ACCOUNTING PROCESS AND ACCOUNTING BOOKS

Accounting is the process of identifying, measuring, recording, classifying, summarizing,
analyzing, interpreting and communicating the financial transactions and events.
Accounting helps in keeping systematic records to ascertain (phản ánh) financial
performance and financial position of an entity and to communicate the relevant financial
information to interested user groups. Transactions and events recorded by suitable
account headings are analyzed in terms of debit and credit; and thus, assets become equal
to equity and liabilities. Accounts are classified as personal, real and nominal types.
Transactions and events are first journalized, then posted to suitable ledgers accounts and
all accounts are balanced at the end of year. Generally, balances of the nominal accounts
are transferred to profit and loss accounts for determination of profit or loss and balance
of personal and real accounts are carried to the balance sheet.
- Financial transactions = business / economic transactions (activities): nghiệp vụ kinhté
- Identify (v) financial transactions: xác định = recognize (v) – ghi nhận
- Record (v) ghi lại records (n) – số liệu ghi chép
- Journal (n) — sổ nhật ký = book of original journalize (v)
- Measure (v) tính toán
- Classify (v) định khoản
- original (source) documents, including contracts, bills, receipts, etc. - chứng từ gôc
- groups of similar transactions – nhóm các nghiệp vụ giống nhau
- single entry bookkeeping – hoạt động ghi số đơn
- double entry bookkeeping – hoạt động ghi sổ kép
- summarize (v) — tổng hợp
- analyze (v) — phân tích
- analyst (n) — người phân tích
- analysis (n) sự phân tích
- financial statements : báo cáo tài chính
- three common financial statements are: balance sheets, income statements, cashflow
statements
-financial reports:
- interprete (v) - thuyết minh --- notes (footnotes) to the financial statements - phần thuyết
minh cho báo cáo tài chính
- communicate accounting information: cung cấp thông tin = provide
- journal (n) sổ nhật ký
- ledger (n) sổ cái
Original documents => Journals => Ledgers => Financial statements + Financial reports (
annual reports )
Original documents ( sources ) : chứng từ gốc
- Purchase agreements
- Bills
- Invoices
- Contracts
- Receipts
- Etc
Purchase book (n) a record kept by a business of what it buys on credit each day: - sổ ghi
chép mua sắm hàng ngày
- All credit purchases of goods are recorded in the purchase book.
- Her work involves writing out the transactions carried out by a company in a day
book, book-keeping and calculating the staff wages.
Bill (n) a document showing how much money you owe for goods or services you have
received: hóa đơn
big/huge/hefty, etc. bill (for sth)
- The company faces a hefty bill for repairs after the storm.
pay/settle a bill
- I don't have the money to pay this gas
monthly/quarterly/weekly bill
- They can afford their monthly bills for basics such as food and housing but have
little left for luxuries.
pay/pick up a bill
- The firm picked up the bill for him to be flown by executive jet to Edinburgh.
cut/reduce a bill
 - We need to find ways of reducing our energy bills.
- If you prefer you can request an itemized bill and get a list of every call you have
made.
gas/phone/tax, etc. bill
Invoice (n) : a document that lists things provided or work done, gives their cost, and asks
for
payment: hóa đơn
raise/generate an invoice – lập hóa đơn
- I raised an invoice for work done last year and use last month.
Issue – lập /send/submit – gửi/ nộp - an invoice
The supplier must issue an invoice for all taxable supplies.
pay/settle an invoice: thanh toán hóa đơn
Receipt (n) a piece of paper that shows the price of something that you have bought and
proves that you have paid for it: Biên lai
get/keep/retain a receipt
- Always get a receipt when you withdraw cash from a machine.
a credit card receipt

Interested user groups include:

+ the management — ban lãnh đạo (The Board of Directors – hội đồng quản trị)
+ investors - nhà đầu tu (shareholders of the company, potential investors, creditors)
+ employees of the entity – nhân viên công ty
+ government authorities – cơ quan ban ngành thuộc chính phủ
+ auditors — kiểm toán viên
+ students majoring in finance and accounting – sinh viên chuyên ngành tài chính kế toán
+ journalists – nhà báo
Post (v) - posting (n) kết chuyển
Liquidity (n)
Resources = assets: Tài sản
Sources of resources / assets: nguồn hình thành tài sản
Basic accounting equation: phương trình kế toán căn bản
- Assets (Resources) (tài sản) = Liabilities (Nợ) + Equity (vốn chủ sở hữu)

Basically there are 2 sources of equity and liabilities

Record (v) to keep information for the future, by writing it down or storing it on a
computer:
- She records everything that happens to her in her diary.
- Unemployment is likely to reach the highest total that has ever been recorded.
- [ + that ] In his journal, Captain Scott recorded that he and his companions were
weakened by lack of food.
Analysis (n) the study of something in detail: - sự phân tích (nghiên cứu cái gì đó chi tiết)
carry out/perform/conduct an analysis
- We carried out an analysis of visitors to the website by age, sex, and region.
scientific/chemical analysis
- Chemical analysis revealed a high content of copper.
detailed/comprehensive/in-depth analysis
- The data can be fed to a computer for detailed analysis.
statistical/structural/numerical analysis

KEY TAKEAWAYS
➤ A journal is a detailed record of all the transactions done by a business daily.
Reconciling accounts and transferring information to other accounting records is done
using the information recorded in a journal.
➤ When a transaction is recorded in a company's journal, it's usually recorded using a
double-entry method, but can also be recorded using a single-entry method of
bookkeeping.
➤ The double-entry method reflects changes in at least two accounts after a transaction as
occurred; an increase in one and a decrease in the corresponding account.
➤ Single-entry bookkeeping is rarely used and only notes changes in one account.
A ledger is a book containing accounts in which the classified and summarized
information from the journals is posted as debits and credits. It is also called the second
book of entry.
T- account

The ledger contains the information that is required to prepare financial statements. It
includes accounts for assets, liabilities, owners' equity, revenues and expenses. This
complete list of accounts is known as the chart of accounts. The ledger represents every
active account on the list.
Responsibilities of accountants in general
Accountants have to:
- Identify and bookkeep (record) economic (business) transactions (activities) which
arise during the accounting period. On daily basis, these transactions are recorded
in a journal in terms of money based on the original (source) documents.
- Classify all economic transactions during a certain period of time into similar
groups regularly (monthly/ quarterly). Each group of transactions is recorded in at
least 2 accounts in a ledger (this is known as the double entry bookkeeping)
- Summarize and analyze accounting data based on the accounting books to
prepare(construct/produce) financial statements and financial reports at the end of
the year.
- Communicate accounting information to interested user groups
Original documents => Journals => ledgers => financial statements +financial reports
(annual reports)
Topic question:
What are responsibilities of accountants in general?/ What is the accounting
process?
Đọc và dịch bài sau sang tiếng Việt
The process of accounting, depicting how information flows from the source documents
up to the stage where final accounts (financial statements) are prepared, can be shown as:
Source doucuments Represent all in business which contains financial records and act as
evidence of the transactions which have taken place.

Book of Original These are books which are used in recording the transactions for the first
time. The books are maintained for memorandum purpose only and will
not form part of the double entry system. Examples include: Purchase
day book, Cash book, Sales daybook and purchases return day book.

Ledger Accounts These form (v) part of double entry system and used to record the
transactions for the period. These are accounts where information
relating to a particular asset, liability, capital, income and expenses are
recorded.
Trial Balance Contains the totals from various ledger accounts and act as a preliminary
check on accounts before producing final accounts.

Final Accounts Financial Statements are produced to show the financial performance
and financial position of a business entity.

Book of original = Journal – Sổ nhật ký/ Sổ nhật biên:

 Purchase (day) book = Purchase journal: a record kept by a business of what it
buys on credit each day:
- All credit purchases of goods are recorded in the purchase book.
 Cash book is a written record of the amounts of money a company receives or
spends: Sổ thu chi/ Sổ tiền mặt
- If you are self-employed you are advised to keep a cash book listing your income
and expenses.
 Sales day book is a record kept by a business of the money it receives from the
goods it sells each day: Sổ bán hang
- He would write the invoice dates followed by the names of the customers in the
first two columns of his sales day book.
 Sales return book (n) a book in which a company or store records details of all
products that customers have returned — Sổ hàng bán trả lại
 Purchase returns day book: Sổ trả lại hàng mua (When a business returns goods it
has purchased on credit it receives a credit note from the supplier and records this
in the purchases returns day book.)
What is double entry bookkeeping?
What are advantages of double entry bookkeeping?
BASIC ACCOUNTING PROCEDURES - JOURNAL ENTRIES
1. Double entry system
Double entry system of book-keeping has emerged in the process of evolution of various
accounting techniques. It is the only scientific system of accounting.
Emerge (v) to become known or develop as a result of something: ra đời và phát triển
- New business opportunities will emerge with advances in technology.
According to it, every transaction has two-fold aspects debit and credit and both the
aspects are to be recorded in the books of accounts. For example, if a business acquires
something then either it must have been given by someone or it must have been acquired
by giving up something.
Acquire = buy
On purchase of furniture either the cash balance will be reduced or a liability to the
supplier will arise. This has been made clear already, the Double Entry System is so
named since it records both the aspects. We may define the Double Entry System as the
system which recognizes and records both the aspects of transactions. This system has
proved to be systematic and has been found of great use for recording the financial affairs
for all institutions requiring use of money.
Acquire (v) = buy = purchase + sth: mua cái gì đó
Give up sth : từ bỏ cái gì
Aspect (n) khía cạnh
financial affairs = financial transactions financial operations
2. Advantages of Double Entry System
This system affords the under mentioned advantages:
(i) By the use of this system the accuracy of the accounting work can be established,
through the device of the trial balance.
(ii) The profit earned or loss suffered during a period can be ascertained together
with details.
(iii) The financial position of the firm or the institution concerned can be ascertained
at the end of each period, through preparation of the balance sheet.
(iv) The system permits accounts to be kept in as much details as necessary and,
therefore affords significant information for the purposes of control etc.
(v) Result of one year may be compared with those of previous years and reasons for
the change may be ascertained.
It is because of these advantages that the system has been used extensively in all
countries.
- Purpose of control: phục vụ cho mục đích quản lý
- Afford sth: đảm bảo
- Do sth in detail (adv) — một cách chi tiết
- Permit sth/sbd to do sth
- be compared with : được so sánh với
Viết lại topic: những ưu điểm của hệ thống ghi sổ kép (không chép lại cả đoạn trên)
Tham khảo thêm về ưu điểm của ghi sổ kép
Double-entry bookkeeping (which is sometimes referred to as double-entry accounting)
allows a business to record all its financial transactions in structured way. It can then
provide the owners or their accountants with the information they need to deal with all
the tax and financial submission requirements the business will have such as VAT returns,
annual accounts, tax returns and cashflow statements.
It also enables business owners to track their finances on a regular basis, helping them to
understand how the business is performing and supporting key financial decisions.
Using double-entry bookkeeping to record transactions provides you and your accountant
with a detailed, comprehensive view of your financial affairs.
3. Accounts
Accounts are financial records of an organization that register all financial transactions,
and must be kept at its principal office of business. The purpose of these records is to
enable anyone to appraise the organization's current financial position with reasonable
accuracy. Firms present their annual accounts in two main parts: the balance sheet, and
the income statement (profit and loss account). The annual accounts of a registered or
incorporated firm are required by law to disclose a certain amount of information, and to
be certified by an external auditor that they present a 'true and fair view' of the firm's
financial affairs.
 - Principal office of business refers to the management (ban lãnh đạo) / the Board
of
- Directors (Ban Quản trị)
- Disclose (v) — công bố công khai
- Registered firms: công ty niêm yết.
- Certificate (n) chứng chỉ/ giấy chứng nhận
- Certification (n) sự chứng nhận
- Certify (v) chứng nhận, kiểm định
- External auditor (n) công ty kiểm toán độc lập
COMPREHENSION QUESTIONS
1. How is accounting defined?
2. What is difference between book-keeping and accounting?
3. In daily operations, which book are transactions of a business firstly recorded in?
4. For what purpose is this book maintained?
5. What does "double entry bookkeeping" mean?
6. Which book forms part of double entry bookkeeping?
7. What are advantages of double entry system?
8. What are accounts?
Current assets – tài sản ngắn hạn
- Cash at bank : tiền gửi ngân hàng
- Cash on hand : tiền ở quỹ ( used for daily expenses )
- Cash equivalent (n) money in a company's bank accounts and other assets that
can easily be changed into money: tương đương tiền mặt
 The company believes that its existing cash and cash equivalents are sufficient to
meet their cash requirements during the next twelve months.
Temporary investments – đầu tư ngắn hạn
Accounts receivable - khoan phải thu - the amounts in a company's accounts that
show money that is owed to the company by its customers:
 At the end of the fiscal year, the company had $106 million in accounts receivable.
 Inventory: raw materials + unfinished (semi-finished) products/ work in progress
+
finished products
Current assets are considered short-term assets because they generally are
convertible to
cash within a firm's fiscal year, and are the resources that a company needs to run its day-
to-
day operations and pay its current expenses.
Noncurrent assets (fixed assets) are a company's long-term investments that have
a useful
life of more than one year. Noncurrent assets cannot be converted to cash easily. They are
required for the long-term needs of a business and include things like land and heavy
equipment.
Fixed assets are converted to cash in terms of annual depreciations during their
lifetime.
- Accumulated depreciation: hao mòn lũy kế
Fixed assets: tangible (visible) assets + intangible (invisible) assets (such as reputation,
trademark, brands, patents, invention, etc.)
Tangible asset (n) a physical asset whose value can be easily measured, such as cash,
property, goods, or machinery:
- The pension fund invests the savings of its members in tangible assets such
as land
and buildings.
Goodwill (n) part of a company's value that includes things that cannot be directly
measured, for example, its good reputation (uy tín/ danh tiếng) or its customers' loyalty
(su trung thành của khách hàng):
- The company's assets are worth £200 million, plus goodwill.
Liabilities
Accounts payable refer to the amounts of money owed to the suppliers.
Accounts payable (n) the amounts in a company's accounts that show money that it owes,
for example to suppliers (= companies that have sold them things):
- Accounts payable were $676 million lower as of the middle of this year
compared to
a year ago.
Owe (v) to need to pay or give something to someone because they have lent money to
you: nợ
- owe sb $5/$500, etc. I owe you £200.
- How much do we owe the bank?
- He claims the firm owes him money.
- owe $5/$500, etc. to sb The company owes $618 million to its creditors.
- owe $100/$1000, etc. on sth We still owe $1000 on our car.
- owe $100/$1000, etc. in sth The government alleges that he owes $54 million in
unpaid taxes.
Note payable (n) a document that relates to money that a company owes, especially
money that must be paid back within a year or less: thương phiếu phải trả
- About $111 million in notes payable will be canceled.
Unearned revenues: doanh thu chưa thực hiện
Số tiền đã nhận trước khi hàng hóa được bán hoặc một dịch vụ được cung cấp. Doanh thu
chưa thực hiện được phân loại là nợ phải trả ngắn hạn trên bảng cân đối cho đến khi nó
được ghi nhận là nhận được trong kỳ kế toán.
Payment received before a good is sold or a service is provided. Unearned revenue is
classified as a current liability on the balance sheet until it is recognized as earned during
the accounting cycle.
Cổ phiếu quĩ (tiếng Anh: Treasury shares/ stcok) là cổ phiếu được mua lại bởi công ty
phát hành bằng nguồn vốn hợp pháp và sẽ được tái phát hành trở lại trong khoảng thời
gian theo qui định của pháp luật về chứng khoán

VOCABULARY EXERCISES
Exercise 1: Choose the best answers.
1. Which one of the following is not a short-term asset?
A. Cash reserves of the organization — cash on hand (tiền mặt ở quỹ)
B. Machinery
C. Funds collected from debtors (accounts receivable)
D. Inventories – hàng tồn kho
2. Which of the following equations cannot be derived (k được suy ra từr) from the basic
accounting equation?
A. Assets - Liabilities = Owners' Equity
B. Liabilities = Assets - Owner's Equity
C. Owners' Equity = Liabilities - Assets
D. Assets - Owners' Equity = Liabilities

Basic accounting equation – phương trình kế toán cơ bản

Assets = Liabilities + Shareholders' equity
Assets are equal to Liabilities added with Shareholders' equity
Equal (adj) the same in price, number, size, etc.:
- The values of cross-border and internal sales were about equal over the year.
an equal amount/number/share
- Instead of an equal share, we got only one-fifth of the profits.
equal to sth
- She received a bonus of $15,065, equal to 40% of her salary.
equal in number/value/size
- Sakhalin is an island north of Japan, with oil and gas reserves equal in size to
those
remaining in the North Sea.
5. Buy sth on account = buy sth on credit: mua trả góp
10. Mortgage payable ( part of long term liabilities )
Physical property = visible assets = tangible assets – tài sản hữu hình
- Plants, building, factories,....
- Machines, equipment,...
- Inventory – Hàng tồn kho , including raw materials, work in progress and finished
products
- Invisible assets = intangible assets – tài sản vô hình
- Brands – nhãn hiệu
- Trademarks