Numbers

t\\81
Interpretation Example
is, equals 1/2 = 0.5 One-half equals point five.

and, plus, add a + b =c A plus B equals C.

minus, less, subtract a-b=C A less B equals C.

times, multiplied by axb=c A times B equals

,, C.

over, divided by a .;. b = c or a I b = c A 'over B equals C.

one thousand three hundred

or
thirteen hundred The company has thirteen hundred dollars in the bank.

Get Ready!
0 Before you read the chart, talk about Vocabulary
these questions.
9 Fill in the blanks with the correct words
1 How do you say symbols like = and .;. ? from the word bank.
2 What are some of the ways to say big numbers?
~ BANK
Reading times minus and hundred add is

f) Read the chart. Then, mark the following 1 Eight two is sixteen.
statements as true (T) or false (F).
2 Nine and three twelve.
1 _ Five less four means the same thing as 3 Twenty six equals fourteen.
five minus four.
4 One thousand plus five hundred is fifteen _ _ .
2 _ Five times three equals five plus three.
5 To get seven, two and five.
3 _ Seven over three equals seven divided by
6 Eighteen two is twenty.
three.
6
8 Read the sentence and choose the Speaking
correct word.
0 With a partner, act out the roles below
1 Seven plus I divided by two is nine. based on Task 7. Then switch roles.
2 Nineteen over / less eight equals eleven. USE LANGUAGE SUCH AS:
3 Start with seventeen. Subtract I Add three. Could you look at this for me?
This equals fourteen.
I see the problem.
4 Four multiplied by I divided by two is eight.
You were supposed to ...
5 Ten over I plus five equals two.
6 Sixteen less I divided by four equals four.
7 Five plus eight equals I over thirteen. Student A: You are having trouble with an
accounting task. Ask Student B about:
0 g Listen and read the chart again. What • your work
is another way to say the symbol 'and'?
• errors
• solutions
Listening
Student B: You are an accountant. Answer
0 g Listen to a conversation between two Student A's questions.
accountants. Choose the correct answers.
1 What is the dialogue mostly about?
A audit results Writing
B a mathematical error
0 Use the chart and the conversation in
C subtracting numbers Task 8 to complete the email. Make up
D accounting methods names for both accounts.

2 The woman divided when she should have _ .

A added C copied
B subtracted D multiplied

f) g Listen again and complete the

FROM:
conversation.
TO: - -
Accountant 1: Don, could you look at this for me?
Accountant 2: Sure, what is it?
Accountant 1: Well, I checked these numbers oear- · The
. your calculations.
twice, but they still 1 _ _ wrong. I tound a(n) ~ i;500 x 700 = X. But you
I'm not sure why. correct equation his uld have - .
Accountant 2: Let's see ... Three thousand five when you s o
I - 300 trom 500. The
hundred 2 _ _ seven hundred is I'
Also, you subtra.cted + 300 = X. You need
five. uation 1s 500
corre et eq
Accountant 1: Right. And then I 3 _ _ each I' 5 00 and 300.
to- h Ip
entry by five. . need any more e .
Let me know it you
Accountant 2: Oh, I see the 4 _ _ . You weren't
5 _ _ _ _ divide thirty-five Sincerely,
hundred by seven hundred.
Accountant 1: Are you 6 _ _?
Accountant 2: Yes. You need to multiply them.
-
7
 Bookkeeping cycle
on. won. won.
4'2\ \...abof /'t.'IC .

"'(our\own
""' \0 \\\e ...... "'-
---~===:;:--------:===
payroll

Memo,- -- - - -
0061&9 \\
Reading
f) Read the entry on a bookkeeper's biog.
Then, choose the correct answers.
1 What is the passage mainly about?
A end-of-period procedures
. ic boo1<1<eeping cycle. B minimizing financial effects
Let's review the bas ot organization you
No matter what typ~ C steps in the bookkeeping cycle
. there are six steps. D how to gather source documents
wmI< rn, ~
t Gather sourc.e documen
2 According to the passage, which is NOT a
tor all transactions.
source document?
These include:
A credit card statement
Purchase invoices
B purchase invoice
: Payroll Master fi\es
C accounting software
•Time cards
. d statements D payroll master files
• Credit car . . I ettect ot every
2. Analyze .the t1na~c1~transactions include: 3 What is true according to the passage?
transaction. Typ1ca A Every organization follows a different
•Payroll bookkeeping cycle.
•Sales B Financial effects are recorded in two
• Purchases . different places.
3 Record financial ettects in . the C Adjusted trial balances carry over to the
. . I Then post them rn next fiscal year.
a 1ourna .
. software.
account in9 . rocedures: D Accounting software creates most source
4. Perform end-of-period p documents.
Count inventory .
: Chee\< tor errors in classification Vocabulary
•
Ad'1ust tor errors
d' sted tria\ ba\ance.
€) Match the words (1-6) with the definitions
5. Prepare an a 1u t the end ot every (A-F).
6. Close the bool<s a 1 _ source documents
fisca\ ye:a~r·---~~:---~ll'i 2 _ transaction
3 _ credit card slip
4 _ purchase invoice
5 _ payroll master file
6 _ accounting software

A a purchase, sale, or payment

Get Ready!
B a receipt for a credit card purchase
0 Before you read the passage, talk about C a file containing employee's salary information
these questions.
D a document requesting payment for a purchase
1 What are the basic tasks in bookkeeping? E a computer program that organizes financial data
2 What are some of the documents that they use? F documents from various financial transactions
12
0 Fill in the blanks with the correct words and phrases Speaking
from the word bank.
«!) With a partner, act out the

~time card
BANK

adjusted trial balance fiscal year

roles below based on Task 7.
Then switch roles.

payroll end-of-period procedures USE LANGUAGE SUCH AS:

Do you have a moment?
1 Jack made a few errors while preparing the _ _ __ How do I ...?
2 In Canada, the goes from April to March. The ... give them to you at the end
3 Perform _ _ _ _ before opening books for the new of ...
period.
4 _ _ _ _ is one of the most predictable business
expenses. Student A: You are a new
5 Tim didn't clock in, so his _ _ _ _ is short eight hours. accountant. Talk to Student B
about:
0 g Listen and read the bookkeeper's biog again. At • gathering documents
which step are classification mistakes corrected? • recording data

Listening Student B: You are a senior

accountant. Answer Student A's
0 g Listen to a conversation between a junior questions.
accountant and a senior accountant. Mark the
following statements as true (T) or false (F).
1 _ The man maintains the accounting software. Writing
2 _ The woman will not collect the source documents.
0 Use the conversation from
3 _ The department managers supply source documents Task 8 to fill out the
weekly. accountant's notes.

0 g Listen again and complete the conversation. Duties/Frequency

Accountant 1: Do you have a 1 Mr. Smith? Department managers
Accountant 2: Certainly, Nancy. What can I help you with?
Accountant 1: One question - how do I collect the 2 _ __
_ _ _?
Accountant 2: Actually, you don't collect them.
Accountants:
Accountant 1: Really? How do I 3 ?
Accountant 2: The 4 managers give them to you at the
end of every month.
Accountant 1: Ah, I see. And then I just 5 the data in the
accounting software?
Accountant 2: That's right. 6 the data from the source
documents in the accounting software.
 Income statements

It starts with sa\es

Most people know that the revenue. 'This is the money
term "bottom line" me~ns " a company gets from t
. ortant thing. . ods 'The cos
"the most imp . se\hng go . . deducted
But ifs also an accounting of those goods is
It refers to the from the revenue. Next
term. . come
bottom line of an in the genera\ and
statement. An income administrative expenses
t is also called a are deducted. Finally,
statemen • f't
P & L. That means pro I taxes are subtracted.
and loss." A P & L
The numb
er that remains
. II d
Income Statement
statement shows a ,; the bottom line is ea e.
summary of a company s on 'Th. amount 1s
t. come. is
financial transactions over ne in n';S bottom line.
the compa Y
a period of time.

Get Ready!
0 Before you read the passage,
talk about these questions.
1 What information goes on
income statements?
2 How do companies use income
statements?

Reading Vocabulary
f) Read the income statement E) Match the words (1-5) with the definitions (A-E).
and magazine article. Then,
mark the following statements 1 _ gross margin 4 _ P&L
as true (T) or false (F). 2 _ sales revenue 5 _ general and administrative expenses
1 _ "Bottom line" means net 3 _taxes
income.
A a statement showing financial information for a certain period
2 _ Operating margin minus taxes
B money that is paid to a government
is gross margin.
C the costs associated with organizing and running a business
3 _ P & L statements show
information from a period of D an amount that is calculated by subtracting cost of goods sold
time. E the money that is received from selling goods or services
16
0 Fill in the blanks with the correct words Speaking
and phrases: operating margin, income
statement, net income, selling.
(i) With a partner, act out the roles below
based on Task 7. Then switch roles.
1 Subtract taxes from the _ _ _ _ _ _ to
USE LANGUAGE SUCH AS:
find net income.
Let's get right down to business.
2 is the act of exchanging
goods for money. What's the problem?
3 is the amount of money Our ... has really ...
retained after all expenses
4 A(n) is a document showing
how much money was made. Student A: You are an accountant. Talk to
Student B about:
0 g Listen and read the income statement • a P & L statement
and article again. What is deducted from • low/high figures
sales revenue to show the bottom line? • what to do about it

Listening Student B: You are an accountant. Answer

Student A's questions.
0 g Listen to a conversation between two
accountants. Choose the correct answers.
1 What is the dialogue mostly about? Writing
A an increase in sales revenue
B a new way to report income
0 Use the conversation from Task 8 and the
income statement to fill out the income
C a previous year's bottom line statement.
D a disappointing P & L statement

2 The company's bottom line dropped because

A sales revenue decreased
B cost of goods sold increased
C the government raised taxes
D there was an error in the P & L
800,000
0 g Listen again and complete the
conversation. 500,000 500,000
Less-----
A 1: Hi, Peter. Would you like some coffee? 300,000
Gross Margin
A 2: No thanks. Let's get 1 to
business.
Less General and 90,000
A 1: OK. Have you seen the 2 ___ P & L? 90,000
Administrative Expenses
A 2: No, I haven't. What's the problem?
10,000
A 1: Look at this! Our bottom line has really Operating Margin
dropped. Just 3 this to last year.
10,000 7,000
A 2: I see. Sales revenue is 4 _ _ down. But cost Less Taxes
of goods sold is the same.
A 1: So, what 5 do? 200,000

A 2: Well, first we need to 6 ___ our sales ...

 Balance sheets

0 Before you read the passage, talk about

these questions.
Income statements show financial information over a 1 What information goes on a balance sheet?
period of time. Balance sheets, on the other hand, show
2 How do companies use balance sheets?
a company's financial status at a certain moment in time.
Let me show you how to read them.
Balance sheets follow this equation: Reading
f.) Read the balance sheet and magazine

Assets = liobililies + Owner's Equity article. Then, choose the correct answers.
1 What is the passage mainly about?
It's that simple. Assets are what a company owns. A tracking accounts payable and debts
Liabilities are what a company owes. Equity is what a B calculating the total value of a company
company is worth. C explaining the information on a balance sheet

Assets include cash, inventory, accounts receivable, D understanding the effect liabilities have on
and fixed assets like land and property. Liabilities equity
include accounts payable and debts. Owner's equity is 2 Which of the following is NOT an asset?
the total value of the company.
A land C inventory
The sum of the assets should be equal to the sum of B equity D accounts receivable
the liabilities plus the owner's equity.
3 What is true according to the passage?
A Equity is what a company owns.
As of
July 31st, 2011 B Cash and inventory are fixed assets.
Ba\ance Sheet I ;
C Accounts payable are considered debt.
Liab\\ities D Total assets equal total liabilities and equity.
t Assets
- /\ccounts 11,000
cash (bank 10,000 Payable - Vocabulary
account)
@Q_ E) Match the words (1-5) with the definitions
/\ccounts Oebts
15,000 - (A-E).
Receivable
- lotal ~ 1 _ balance sheet 4 _asset
Inventory 5,000 Liabilities
2 _ owner's equity 5 _ liability
-
Fixed owner's E.qui\Y
~ 3 _ accounts receivable
/\Ssets -
~
- l otal Equity - A what a company is worth
lotal B something a company owns
Liabilities and ~ C a record of money that is owed to a company
lotal ~ Equity J for past sales
Msets
I D an amount of money that a company owes
E a document showing assets, liabilities, and equity
18
() Fill in the blanks with the correct words Speaking
and phrases from the word bank.
0 With a partner, act out the roles below

~accounts payable
BANK

fixed assets
based on Task 7. Then switch roles.
USE LANGUAGE SUCH AS:
sum inventory debt Excuse me, but ...
I was looking at our balance sheet ...
1 The company records most purchases in
We need to ...

2 Companies with too much _ _ _ __

can't get loans.
Student A: You are an accountant. Talk to
3 is getting low. Fill out a new
Student B about:
purchase order.
• a balance sheet
4 Add those figures. Then tell me what the
_ _ _ _ _ is. • low/high figures

5 The company has a lot of _ _ _ ____, • what to do about it

including a new warehouse.
Student B: You are an accountant. Answer
0 " Listen and read the balance sheet and
Student A's questions.
article again. What is meant by the term
fixed assets?
Writing
Listening 0 Use the conversation from Task 8 to fill
out the balance sheet.
0 " Listen to a conversation between two
accountants. Mark the following
statements as true (T) or false (F).
1 _ The man suggests taking on more debt. As of
2 _ The company has enough cash to pay its
Balance Sheet August 31st, 2011
debt. Assets Liabilities
3 _ The woman says there is an error on the
Cash (bank Accounts
balance sheet.
account)
Accounts
0 " Listen again and complete the
conversation.
Total
Inventory 10,000
A 1: 1 _ _ _____, but we have a problem. Liabilities
Fixed
A 2: What's that?
Assets
Owner's Equity
A 1: I was looking at this month's balance sheet.
Our accounts payable shows that we Total Equity
2 - - $15,000. Total
A 2: Why is that a problem?
Total
Liabilities and
Assets
A 1: Well, we 3 _ _ have $10,000 in the bank. Equity
A 2: I see. We have to 4 _ _ some money to
pay the difference.
A 1: Isn't it a 5 _ _ _ _ to take on more debt?
A 2: No. Our accounts receivable shows $15,000.
We can use that to 6 _ _ _ _ some
debt next month.
 Cash flow statements

Get Ready!
0 Before you read the passage, talk about
these questions.
1 What is a cash flow statement?
2 What are some of the things that go on a cash
flow statement?

c.) Cash flow from O~erations Sometimes, an income When a sale is made, it
c Cash generated from sales 100,000 statement shows huge net often takes months for
;:: Pa:iments to sueeliers and emelo:iees (70,000)
en income. But the cash flow payment to arrive. A
en ~
G.) Pa:iments on debts (15,000)
Pa:iments on taxes (5,000) statement shows negative company may have
-~

--
'i: ("')
Net cash flow from operating activities 10,000 cash flow. How can this be? generated $500,000 in
CL a; Cash flow from Investing sales, but only received
Cash flow statements
~
G.)
Pa:iments for new investments (9,000)
c show the inflow and $100,000 in payment. The
Dividends received 2,000
w
c
~ Net cash flow from investing (7,000) outflow of cash. This income statement count~
0;::
t:rl Cash flow from Financing
.!:; includes: $500,000 in revenue. But
c_c::: Debt
-o~ increases 4,000 the cash flow statement
mu.. Cb Dividends eaid to stockholders (8,000) • revenues and expenses records only cumulative
CQ ~ Net cash flow from Financing Activities (4,000) • cash distributions to
..c ~ Net cash flow cash - the $100,000 in
:c: ._
~
a:u .s Cash balance, beginning of }'ear
(1,000)
4,000
owners
• dividends paid to
proceeds.
Cash balance, end of }'ear 3,000
stockholders
• financing activities

Reading
f) Read the cash flow statement and journal article. ......_.__ _ _ _!!9!11!!!--;;~:::~::
Then, mark the following statements as true (T) or
false (F). 0 Fill in the blanks with the
correct words and phrases
1 _ Cash flow statements only record cash.
from the word bank.
2 _ Dividends are not included in cash flow statements.
3 _ Income statements reflect current status better than
cash flow statements. inflow stockholder
cash distributions
Vocabulary outflow dividends
8 Match the words (1-5) with the definitions (A-E).
1 The company makes to
1 _cash flow 4 _ financing activities the owners every month.
2 _generate 5 _cumulative 2 Every owns a tiny
3 _proceeds portion of the company.
3 Any time money is spent, it is
A receiving money from investors or creditors recorded as a(n) _ __
B created by incremental additions 4 The company pays quarterly
C the process of money moving into and out of a company ___ to the stockholders.
D to make or create 5 Money received for sales is a(n)
E money earned from a sale ___ of cash.
20
0 " Listen and read the statement and Speaking
article again. Why might a cash flow
statement and an income statement have
0 With a partner, act out the roles below
based on Task 7. Then switch roles.
a big balance difference?
USE LANGUAGE SUCH AS:
Listening Could I talk to you for a second?
The cash flow statement only shows ...
0 " Listen to a conversation between a
The cash flow statement only counts ...
manager and an accountant. Choose the
correct answers.
1 What is the dialogue mostly about?
Student A: You are a manager. Talk to Student
A money generated from sales B about:
B accounts receivable payments • a cash flow statement
C errors on an income statement • low/high figures
D contents of cash flow statements • what the figures mean

2 The cash flow statement only counts

Student B: You are an accountant. Answer
A net income C cumulative cash
Student A's questions.
B sales amounts D accounts receivable

0 " Listen again and complete the Writing

conversation.
0 Use the conversation from Task 8 to
Manager: Hi, David. Could I talk to you for a complete the email. Make up names for
second? the CPA and Manager.
Accountant: Sure. 1 _ _ _ _?
Manager: Well, our income statement shows a
net income of $200,000.
CPA -
Accountant: That 2 _ _ about right. FROM: - -- - - -
Manager: But the cash flow statement shows TO: _ _ _ --~ Manager - - -
only $100,000 3 _ _ from sales. ·1 about the different
Accountant: Oh, well, the cash flow statement I received your .ema1 e statement and the
only counts cumulative cash - the numbers on the incom L t me explain why
4 _ _ cash we spend and receive. cash flow statement. e
they are different.
Manager: So ... Are you 5 _ _ me that we
haven't received some of the
payments on our accounts receivable?
Accountant: Exactly. But our accounts receivable
should 6 _ _ _ _ for it by next
month.

21