2

MODUL PERKULIAHAN

F03210020 –
English for
Accounting
Introduction To Accounting
and Companies

Abstrak Sub-CPMK (lihat di RPS)

One of the business entities Having completed reading and

is in the form of a company. It studying this course, each students are
is essential for us to know expected to know what matters
what types of company involved in managing companies. Each
existing in our daily life. of them is expected to tell in English
Anything concerns with the about matters concerning company
companies should give us management. (CPMK 1)
better understanding of how
to manage it.
Unit 1: Introduction to accounting

Fakultas Program Studi Tatap Muka Disusun Oleh

01
Marifa Retno Gayatri M.Hum
Ekonomi dan Bisnis S1 Akuntansi
When deciding on a future career a lot of people don't give accountancy a second thought. Most
people don't realize how varied the world of accounting is and in fact it is often seen as boring.
The truth is that accounting is the backbone of any organization and offers a wide number of
attractive careers within it.

Below you will hear about just some of the more common careers in the field of accountancy,
there are of course many more, but we don't have time to talk about all of them.

When we consider the accounts team within a company, we generally think about clerks, both
sales ledger clerks and purchase ledger clerks recording the financial information from all
transactions the company makes. Other roles include the payroll clerk responsible for processing
staff salaries and the tax which occurs from them. Higher up the hierarchy we have the
management accountant who finalizes the accounts and prepares the annual financial
statements. The people doing these jobs make sure that the directors or owners of the company
always know its true financial position.

However, accounting is more than just reporting financial data. A good accounts team actually
works to save the company money by minimizing the tax payable and delaying payments so
companies can earn interest from their banks.

These job roles are not so clear in smaller accounting practices, where the accounting staff often
need to perform various tasks from meeting clients to helping with loan applications. Often the
majority of the work in these smaller practices is done by bookkeepers. Generally, the owner of
the practice is the most senior accountant and is usually a chartered accountant, which means
that their signature is accepted on the financial statements.

The job opportunities for accountants don't stop there: auditors are the police of the accounting
world and when they are called into a company it is their job to ensure that the accounts were
done in the correct way and that everything was accounted for. The most feared of these auditors
are the government auditors who are sent to companies suspected of somehow breaking the
rules. Working as an auditor is very different from other accountancy work as there is no routine;
you work in many locations and have contact with many people. Although, you should be thick-
skinned as often the accounting staff in companies do not like the idea of being audited.

Career progression within accountancy often results from a specialist knowledge in a particular
area, tax advisors are able to help their clients lower their tax bill thanks to their in-depth
knowledge of taxation law and specifically what a client can off-set against tax.

As you can see the world of accountancy offers various careers, but in all of these areas there are
some qualities that a potential accountant should have. Firstly, as accounting is the process of
collecting and classifying financial data all accountants need to be perfectionists unwilling to
accept anything less than an exact result. Also, as accountants deal with large volumes of data
they need to have a good eye for detail and a real love of numbers.

A talented accountant will also be able to advise their clients on the best course of action to take
so as to save money and at the same time stay within the local accounting standards.

Accountants have to follow very strict rules and codes of conduct in order to make sure that they
do everything in a legal way. If an accountant breaks these rules they could face severe
punishment, but some accountants practice creative accounting to get around rules without

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breaking them. Confidentiality is obligatory for all people working with accounts as the financial
data could be very sensitive.

Whether working in the public or private sector, accountants can expect to earn very good
salaries and also gain valuable knowledge on topics like income tax, value added tax (VAT) and
pension schemes which can help them in their life outside of work. What's more, as accounting is
such an important part of a company's success there will always be a demand for good
accountants.

After reading this text I hope that you will appreciate the complexity and the variety of accounting
and the value accountants serve in an organization. So the next time you hear someone say that
accounting is dull, please correct them. Accounting is about truth and money, and there is nothing
dull about that!

Why do you think accounting is seen as boring?

Which of the jobs mentioned would be most interesting for you?

Why is it so important for accountants to be ethical?

Accounting Vocabulary

annual financial statements

the set of accounts which are prepared each year

Once a year the shareholders review the annual financial statements to see if the company made a
profit or loss.

auditor
a specialist whose job is to carefully check the accounts and accounting practices of a company
The entire department were scared when the team of auditors arrived and asked to see all of the
previous year's records.

bookkeeper
a person, who may or may not be qualified, that records the financial transactions of a business
A lot of smaller companies use bookkeepers for their daily accounting needs and only use an
accountant for the yearly financial statements.

CA (chartered accountant)
a fully qualified accountant, holding current certification
When the bank asked for confirmation that John would be able to repay the loan, his chartered
accountant provided it.

code of conduct
a set of rules (often used within a company) which show the correct way to behave
All employees must follow the company's code of conduct.

confidentiality
the state of being secret and/or kept secret

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James was dismissed when he broke confidentiality and told his wife that the company was having
financial problems.

creative accounting
the use of holes in financial law to have an advantage or to show figures in a deceptive way
Some accountants often use creative accounting to try and cheat the tax authority out of monies
due.

income tax
the tax which is due on personal earnings
Most people complain about the rate of income tax, but for those earning over 40,000 a year who
have to pay 32% it is an even less comfortable situation.

local accounting standards

the set of rules and laws for a country which govern how accounts should be prepared
Multinational corporations need to be aware of the local accounting standards of each country
they operate in.

management accountant
a senior member of the accounting team, who liaises with company owners / directors and
advises on the financial aspects of any planned action
After the meeting with the management accountant, I realized that launching the new product
line didn't make financial sense.

payroll clerk
the member of the accounting team who deals with employees
The sales-director asked the payroll clerk to issue bonuses to the top five salespeople.

purchase ledger clerk

(U.S. accounts payable) the member of the accounting team who deals with suppliers, issues
payment for goods and services and keeps track of expenditure
When the supplier contacted the company to ask why the invoice wasn't paid, the purchase ledger
clerk explained that the cheque was in the mail.

sales ledger clerk

(U.S. accounts receivable) the member of the accounting team who deals with sales, raises
invoices, and collects payment.
The sales ledger clerk made sure to issue the invoice on the same day as the sale.

tax advisor
a specialist who can give advice on matters of taxation
Larger corporations often have a dedicated tax advisor to help them minimize the amount of tax
that they need to pay.

VAT (value added tax)

the tax which is due on the difference between the value of a product or service and the cost of
its production
The government are talking about increasing the value added tax rate next year, which means the
cost of consumer goods will increase.

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 Company

Starting Point

1. Do you think it is better to work for a large or a small company?

2. What kind of company do you want to work for?

A. Reading
Read these descriptions of some companies.

Complete their names by choosing the names of the companies given below

1. This company provides many different internet services, including news,

online shopping, and email. Most of its sales come from advertising on its
websites. Its head office is in Sunnyvale, California
Y_ _ _ _

2. This company produces tyres for cars and other vehicles, it is based in France,
but it has more than 125,000 employees all over the world. It is also well
known for its red and green travel guides.
M_ _ _ _ _ _ _

3. This northern European company operates in the retail market. It specializes

in low-price products, including furniture, bathrooms, and kitchens.
I_ _ _

4. It’s a subsidiary of the European Aeronautic Defense and Space Company

(EADS). The company makes planes for the commercial aircraft market, where
its main competitor is Boeing.

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 A_ _ _ _ _

5. This company makes many different electrical and electronic products, such
as TVs, computers, and mobile phones. It is South Korea’s largest company
and exporter.
S_ _ _ _ _ _

Exercise 1:

Create your sentence related to companies you

know well:

Examples:

- Indofood is an Indonesian company which

produces many kinds of food such as instant
noodle, biscuit etc...
- Garuda is an airline company that provides
air transportation
Exercise 2:

Work with a partner. Make sentences using

the words in the table. (Consult google!)

Gazprom produces/makes…gas industry

company…….
Pirelli
specializes in…Italian tyre co
AOL AOL is an American web portal
and online service provider
Mitsubishi based in New York City………..
Volkswagen operates in……………..
UNICEF provides/offers………..
sells…………………………
‘s competitors are……..

B. Vocabulary

Exercise 1:

Complete these sentences with the words in

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 bold in the reading text above .

1. Some companies make or……………goods.

2. Other companies………….or offer services.
3. If you…………in a particular product or service, it's your main activity.
4. If you work for a company, you are an………..
5. If your head office is
in a particular city, your company……………..there.
6. If you work in a……….., your company is part of a bigger group.
7. If you sell a lot of products, your………..are very
good.
8. If another
company operates in the same market as yours, it is your…………….

Exercise 2:

Choose the correct word in italics to complete the text

My company (1) produces/products specialized software for the film industry.

Our (2) head/based office is near San Francisco, but we also (3)
specialize/operate In Europe and the Far East where we have two (4)
services/subsidiaries. There are 450 (5) employs/employees in the company. We
(6) sell/sales our (7) produce/goods to companies like Dream works which (8)
provide/make animated movies. Our technology is very new, so we don’t have
many (9) competitors/companies.

Exercise 3:

Complete the sentences using a suitable

word from 2 in the correct form.

1. We have annual sales of $25 million.

2. Not many………….in the world have more than 100,000 employees.
3. Totalgaz is one of the………..of Total Group.
4. We only sell these……….in Europe and North America.
5. Where exactly is your company…………?
6. H&M…………in good-quality clothes at low prices.
7. A lot of pizza restaurants………..home delivery services.
8. The TATA Group………..on all six continents.
9. We offer a wide range of consulting …………
10. What exactly does your company……….?

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C. Structure
Simple Present vs Present Continuous Tense

[VERB] + s/es in third person

Examples:

 You speak English.

 Do you speak English?

 You do not speak English.

USE 1 Repeated Actions

Use the Simple Present to express the idea that an action is repeated or usual. The action can be a
habit, a hobby, a daily event, a scheduled event or something that often happens. It can also be
something a person often forgets or usually does not do.

Examples:

 The train leaves every morning at 8 AM.

 The train does not leave at 9 AM.

 When does the train usually leave?

 Every twelve months, the Earth circles the Sun.

 Does the Sun circle the Earth?

USE 2 Facts or Generalizations

The Simple Present can also indicate the speaker believes that a fact was true before, is true now,
and will be true in the future. It is not important if the speaker is correct about the fact. It is also
used to make generalizations about people or things.

Examples:

 Cats like milk.

 California is in America.
 Windows are made of glass.

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USE 3 Scheduled Events in the Near Future

Speakers occasionally use Simple Present to talk about scheduled events in the near future. This is
most commonly done when talking about public transportation, but it can be used with other
scheduled events as well.

Examples:

 The train leaves tonight at 6 PM.

 The party starts at 8 o'clock.

 When does class begin tomorrow?

USE 4 Now (Non-Continuous Verbs)

Speakers sometimes use the Simple Present to express the idea that an action is happening or is
not happening now. This can only be done with Non-Continuous Verbs and certain Mixed Verbs.

Examples:

 He needs help right now.

 He has his passport in his hand.

 Do you have your passport with you?

Present Continuous

[am/is/are + present participle]

Examples:
 You are watching TV.
 Are you watching TV?
 You are not watching TV.
USE 1 Now

Use the Present Continuous with Normal Verbs to express the idea that something is happening
now, at this very moment. It can also be used to show that something is not happening now.

Example es:

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  You are learning English now.
 Are you sleeping?

 What are you doing?

 Why aren't you doing your homework?

USE 2 Longer Actions in Progress Now

In English, "now" can mean: this second, today, this month, this year, this century, and so on.
Sometimes, we use the Present Continuous to say that we are in the process of doing a longer
action which is in progress; however, we might not be doing it at this exact second.

Examples: (All of these sentences can be said while eating dinner in a restaurant.)

 I am studying to become a doctor.

 Are you working on any special projects at work?

 Aren't you teaching at the university now?

USE 3 Near Future

Sometimes, speakers use the Present Continuous to indicate that something will or will not
happen in the near future.

Examples:

 I am meeting some friends after work.

 Is he visiting his parents next weekend?

 Isn't he coming with us tonight?

USE 4 Repetition and Irritation with "Always"

The Present Continuous with words such as "always" or "constantly" expresses the idea that
something irritating or shocking often happens. Notice that the meaning is like Simple Present,
but with negative emotion. Remember to put the words "always" or "constantly" between "be"
and "verb+ing."

Examples:

 She is always coming to class late.

 He is constantly talking. I wish he would shut up.

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  I don't like them because they are always complaining.

Exercises 1:

Language at Work – Present Simple

1.Ask and answer these questions.

1. Do you work for a multinational company?

2. Is it a new company?
3. What does it do?
4. Does it operate in many countries?
5. Where do you work?

 Match the questions in 1 to answers a-e

a. Yes, it does_____
b. It provides engineering service to car industries.
c. I have an office in London and another in Tokyo
d. Yes, I do___
e. No, it isn’t____

Exercise 2:

Complete the sentences with the correct verb tenses

1. Every Monday, Sally (drive)…………… her kids to

football practice.

2. Usually, I (work)…………. as a secretary at ABT, but this

summer I (study)……… French at a language school in

Paris. That is why I am in Paris.

3. Shhhhh! Be quiet! John (sleep)…………..

4. Don't forget to take your umbrella. It (rain)……………..

5. I hate living in Seattle because it (rain, always) ……………….

6. I'm sorry I can't hear what you (say)………… because

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 everybody (talk)…………… so loudly.

7. Justin (write, currently)…………… a book about his

adventures in Tibet. I hope he can find a good publisher

when he is finished.
8. A: Do you want to come over for dinner tonight?
    B: Oh, I'm sorry, I can't. I (go)……………. to a movie

tonight with some friends.

9. The business cards (be, normally)……………. printed by

a company in New York. Their prices (be)………

inexpensive, yet the quality of their work is quite good.

10.This delicious chocolate (be)………….. made by a small

chocolatier in Zurich, Switzerland.

D. Language Function:

Introducing yourself
Can I introduce myself
My name is/I am….

Introducing others
Can I introduce you to ...?
This is ...

Responding
Nice to meet you I
How do you do.
Nice to meet you too.

Asking about a personI

jobIcompany

What about you?

What’s your name?
Where are you from?
Who do you work for?
What do you do?

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 Why are you here?

E. Dialogue

Exercise 1:

Rachel Steadman meets Gideon Lack at an international car show.

Complete the conversation below with sentences a-j.
a. Nice to meet you too,
b. Can I introduce you to her?
c. And what do you do?
d. What 's your name again?
e. What about you?
f. This is Rachel.
g. So why are you at an international car show?
h. Can I introduce myself?
i. Nice to meet you.
j. What does the company do?

Rachel : Excuse me. Can I sit here?

Gideon : Yes, of course.
Rachel : Thanks very much (1)…h.... I'm Rachel
Steadman.
Gideon : (2)…….. I'm Gideon Lack.
Rachel : ( 3 ) … . . . Gideon. Where are you from? _

Gideon : I'm from Switzerland originally. But I live

in the Czech Republic now. And (4)…..?
Where are you based?
Rachel : In Toronto.
Gideon : And who do you work for?
Rachel : Bos. Perhaps you don't know it.
Gideon : No, I don't. (5)…………
Rachel : It's an advertising agency. I'm here with
Honda. It's one of our clients. (6)………
Gideon : I'm a teacher of Greek literature.
Rachel : That's unusual. (7)………….
Gideon : I'm here with my wife. She works for
BMW. Ah, there she is now. (8)……
Rachel : Yes, of course. That would be nice.
Gideon : Sorry, (9)……………
Rachel : Rachel. Rachel Steadman.
Gideon : Ur sula (10)…………She work s for an
advertising agency in Canada.

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Sources:
Business Result Pre-Int (unit 1)
Practice files (unit 1) of Business Result Pre-Int
Structure – Internet link, verb tenses

DaftarPustaka

Catton David, FalveyDavid , and Kent Simon, MARKET LEADER, Course Book, Pre-
Intermediate Business English, 2002, Edinburg Gate, Harlow, Essex, CM
2JE, England.
Azar. S. Betty. 1989. Understanding and Using English Grammar 2nd Edition. New Jersey:
Prentice – Hall, Inc
Philips Deborah.2001.Preparation Course for the TOEFL Test: New York: Addison
Wesley Longman
Wishon, E.G & Burks. M. Julia. 1980. Let’s Write English Revised Edition. New York:
Litton Educational Publishing
Oshima, A & Hogue A. 1997. Writing Academic English Second Edition: New York:
Addison Wesley Longman
Karnedi. 2001. Grammar Translation Exercises: PusatPenerbitanUniversitas Terbuka

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