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1. Read the paragraph:

Many people have chosen accounting as a profession because of its many
advantages. Many jobs are usually available, primarily because the education
and training for accounting careers has not kept pace with the demand for
accounting services. Once on the job, private and governmental accountants
have security, and they are usually given the chance to move upward in the
company – sometimes to the top. Salaries for people with accounting training
are usually good, even on lower levels, and for those who rise to the top of
profession, they are correspondingly high. Certified Public Accountants now
enjoy professional status similar to that of doctors or lawyers.

Copies of various financial statements are sent to owners, management
personnel, labor unions, appropriate government bureaus, creditors and the
general public. Reports intended only for use and distribution within the
company on parts or phases of the business are also prepared periodically
from the financial records. A cash report, for example, may be required daily
by some companies, but only weekly or monthly by others.

2. Answer the following questions:

a. Why are many jobs available for people with accounting training?
b. Identify four advantages of accounting as a profession.
c. What are some financial statements commonly used in a business?
d. How are reports prepared for internal use in a company?.
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Multiple choices:



7. The book that lists all the accounts of an organization.

a. Journal
b. Ledger
c. Cash report
d. Balance sheet

8. People who work with the kinds of financial report necessary to
management for the efficient operation of the company are

a. Auditors
b. Controllers
c. Cost accountants
d. Managerial accountants

9. Decrease in the telephone (expense) account is recorded as

a. a debit
b. a credit

10.One of the negotiable instruments that are commonly used by
businesses is

a. Invoice
b. Voucher
c. Money order
d. Cash

11.A statement that shows the firm’s condition on the last day of the

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Many private organizations hire salaried accountants to perform audits. These
people are sometime called internal auditors. They are in charge of protection
of the firm’s assets – things of values owned by the company, including cash,
securities, property, and even goodwill. The internal auditor sees that current
transactions are recorded promptly and completely. He or she also identify
inefficient procedures or detects fraudulent transactions. He or she is usually
called upon to propose solutions for these problems.

The dollar is the basic unit of measurement in accounting in the United States,
and it is also widely used as a unit of measurement in international
transactions. The dollar amount of each transaction is entered in the
accounting journals of the business. Information about the nature of a
transaction and the dollar amount that is involved generally appear first on a
business document, such as a sale invoice. Such documents are essential
references in accounting because they reflect alterations in the company’s
financial position and operating performance.

2. Answer the following questions:

a. Identify tasks performed by an internal auditor.
b. What currency is used as a unit of measurement in international
transaction?
c. Why business documents are essential in accounting?
d. What things are internal auditors supposed to do when he or she
detects any fraudulent transactions?
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7./ Decrease in mortgage account should be recorded by

a./ a debit b./ a credit c./ footing d./ trial balance

8./ To keep an up-to-date balance of the account some bookkeepers use

a./ A left- hand column b./ A far right – hand column c./ bill

9./ The test that determines whether the total of debits equals the total of
credits is called

a./ Posting b./ Footing c./ trial balance d./ Entry

10./ Another term used for financial is

a./ Money b./ Fiscal c./ Cash d./ Debt

11./ The operations statement is referred to as

a./ A Balance Sheet
b./ Owners’ Equity Statement
c./ Profit and loss Statement
d./ Invoice

12./ The statement which shows an increase or decrease in working capital
for the year and how this change arose is called

a./ Income statement
b./ Operations statement

c./ Notes
d./ Checks

17./ Which of the following is an important reason for studying accounting?

a/. Accounting offers the qualified person an opportunity to move ahead
quickly in today’s business world.
b/. Accountants start their jobs near the top rather than the bottom of the
organization chart.
c/. Accountants can help managers to deal with the increasing complex
problems of taxes and cash flow.
d/. All of the above are important.

18/. Accounts receivable are

a/.Current assets
b/.Fixed assets
c/.Current liabilities
d/.Capital

19./ What can we say about the demand for accountants today

a/.The demand is less than the supply
b/.The demand is greater than the supply
c/.The demand equals the supply
d/.There is little demand for accountants

20./ People in management are often required to have:

a/.enough money for the business


The dollar is the basic unit of measurement in accounting in the United States,
and it is also widely used as a unit of measurement in international
transactions. The dollar amount of each transaction is entered in the
accounting journals of the business. Information about the nature of a
transaction and the dollar amount that is involved generally appear first on a
business document, such as a sale invoice. Such documents are essential
references in accounting because they reflect alterations in the company’s
financial position and operating performance.

2. Answer the following questions:

e. Identify tasks performed by an internal auditor.
f. What currency is used as a unit of measurement in international
transaction?
g. Why business documents are essential in accounting?
h. What things are internal auditors supposed to do when he or she
detects any fraudulent transactions?

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Multiple choice:

1. is chiefly concerned with determining the unit cost of
the products the company manufactures and sells.
a. Managerial accounting
b. Cost accounting
c. Public accounting
d. Chartered accounting

c. Owners’ Equity
d. Assets

6. The process that transfers entries from all the journals to the ledger at
regular intervals is called

a. Posting
b. Footing
c. Disbursement
d. Bookkeeping

7. A method of bookkeeping in which the twofold effect of every entry is
recorded, thus requires two entries to record each transaction.

a. Accounting
b. Single- entry
c. Double- entry
d. Trial Balance.

8. Other term used instead of Capital is

a. Liability
b. Assets
c. Owners’ Equity
d. Debit

9. shows the firm’s condition on the last day of accounting period.
It shows what the business owns and what it owes to its creditors or its
owners.


land) or machinery is

a. Ownership
b. Investment
c. Depreciation
d. Withdrawals

15. Accrued Taxes are put under the item

a. Assets
b. Liabilities
c. Capital
d. Income

16. Checks and money orders are different kinds of

a. Negotiable instruments
b. Liabilities
c. Expense
d. Income

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Rewrite the following sentences using the passive form.

1. When did the Egyptians develop the first known business
records?
2. Each transaction affects at least two accounts
3. A merchandising business acquires goods for sale to its
customer.