Name……………………………………….No………..Class……………..............

ESP 2 - TEST TOPIC 1:

ACCOUNTING AND FINANCIAL STATEMENTS
I.Choose the best answer:
1. …………... is an itemized summary of intended expenditure; usually coupled with
expected revenue.
A.Budget B.Net profit C.Net Income D. Account Receivable
2. …………… is an activity that focuses on satisfying legal accounting obligations
through the preparation, analysis, and presentation of required tax documentation.
A. Tax obligations C. Tax Depreciation
B. Taxable Profit D.Tax Accounting
3. A balance sheet demonstrates the overall value of organizational assets by listing
…………… and long-term assets alongside short term and long term liabilities and
stakeholder equity.
A.Short-term B.Current C.Temporary D.Interim
4. The items that have very little or no impact on a user’s decision are termed as
unimportant or insignificant items.
A. Matching C. Consistency
B. Reliability D. Materiality
5. All information must be free of error, and reported with pinpoint accuracy.
A.Faithful representation C. Verifiability
B. Conservatism D. Confirmatory value
6. Clarity and efficiency in presentation is important, as it must be immediately readable
and without the possibility of being misinterpreted.
A. Verifiability C. Confirmatory value
B. Understandability D. Relevance
7. All presented financial statements should align with current best practices in
accounting to ensure that the material presented is validly collated to that of other
organizations.
A.Verifiability C. Objectivity
B.Consistency D. Comparability
8. Accounting that focuses on preparation of stakeholder documents (particularly for
publicly traded companies) and collecting data on past operational performance.
A. Tax accounting C. Financial Accounting
B. Cost Accounting D. General Accounting
9. Accounting that combines strategic decision-making with accounting knowledge
through providing specific tools to measure the financial implications of various
internal activities.
A.Managerial Accounting C.Accounting Liabilities
 B.General Accounting D. Strategic accounting

10.……………is a general rule used in business transactions where the sum of liabilities
and owners' equity equals assets.
A. Accounting Standards C.Accounting Principles
B. Accounting Policies C. Accounting Equation
II. Read the passage and answer the following questions:
ACCOUNTING FROM A USER'S PERSPECTIVE
Many people think of accounting as simple a highly technical field practiced by
only professional accountants. In reality, nearly everyone uses accounting information
daily. Accounting information is the means by which we measure and communicate
economic events. Whether you manage a business, make investments, or monitor how
you receive and use your money, you are working with accounting concepts and
accounting information.
To understand and use accounting information in making economic decisions, you
need to understand the following:
 The nature of economic activities that accounting information describes.
 The assumptions and measurement techniques involved in developing
accounting information.
 The information that is most relevant for making various types of decisions.
TYPES OF ACCOUNTING INFORMATION
Just as there are many types of economic decisions, there are many types of
accounting information. The terms financial accounting, management accounting, and tax
accounting are often used in describing the types of accounting information most widely in
the business community
Financial Accounting
Financial accounting refers to information describing the financial resources,
obligations, and activities of an economic entity (either an organization or an individual).
Accountants use the term financial position to describe an entity's financial resources and
obligations at one point in time, and the term results of operations to describe its financial
activities during the year.
Financial accounting information is designed primarily to assist investors and
creditors in deciding where to place their scarce investment resources. Such decisions are
important to society, as they determine which companies and industries will receive the
financial resources necessary for growth, and which will not.
Financial accounting information also is used by managers and in income tax
returns. In fact financial accounting information is used for so many different purposes
that it often is called "general purpose accounting information.
Management Accounting
Management (or managerial) accounting involves the development and
interpretation of accounting information intended specifically to assist management in
running the business. Managers use this information in setting the company’s overall
goals, evaluating the performance of departments and individuals, deciding whether to
introduce a new line of products - and in making virtually all types of managerial
decisions.
A company's managers and employees constantly need information to run and
control daily business operations. For example, they need to know the amount of
money in the company's bank accounts; the types, quantities, and dollar amounts of
merchandise in the company's warehouse; and the amounts owed to specific
creditors. Much management accounting information is financial in nature but is
organized in a manner relating directly to the decision at hand.
Tax Accounting
The preparation of income tax returns is a specialized field within accounting. Toa
great extent, tax returns are based upon financial accounting information. However, the
information is often adjusted or reorganized to conform with income tax reporting
requirements. We introduce the idea of tax accounting information to contrast it with
financial and management accounting information. Although tax information is important
for a company's successful operation and is related to financial and management
accounting information, it results from a different system and complies with specialized
legal requirements that relate to a company's responsibility to pay an appropriate amount
of taxes. Laws and regulations governing taxation are often different from those
underlying the preparation of financial and management accounting information, so it
should not be a surprise that the resulting figures and repoits are different.
The most challenging aspect of tax accounting is not the preparation of an income
tax return, but tax planning. Tax planning means anticipating the "tax effects" of business
transactions and structuring these transactions in a manner that will minimize the income
tax burden.
(Sách TACN – CTC- UNIT 21)
1. According to the text, what is the means of quantifying and transmitting
economic information?
a. General Journal
b. Accounting Principles
c. Accounting Information
d. Source Documents
2. The main purpose of financial accounting information is to help whom in
choosing where to invest their limited funds?
a. Managers
b. Capitalists and loaners
 c. Tax authorities
d. Producers
3. What is the direct connection between management accounting information,
which has a financial aspect, and the way it is arranged?
a. The choice to be made
b. Financial position
c. Results of operations
d. Income statement
4. What expression do accountants use to refer to the financial means and
commitments of an entity at a particular moment?
a. Results of operations
b. Financial position
c. Cash flow statements
d. Income statements
5. Which of the following examples is not a type of management accounting
information that the company’s managers and employees use to run and
control their daily business operations?
a. The balance of money that the company keeps in its bank accounts
b. The amount of inventory
c. Sum of money that is due to certain lenders
d. The interest amount that the company has to pay for its loans.
III. Matching:
Choose a term that matches its definition:
bookkeeping Journal Accounting Disperse Dubious
Policies
Accounting Accumulated Misleading Ledger amanuensis
standards
1. Ledger a book that records economic transactions of an enterprise
according to each account and according to the principle of double
entry
2. Dubious thought not to be completely true or not able to be trusted

3. Accumulated to collect or increase something gradually, esp. over a period of

time
4. bookkeeping the activity of keeping records of all the money a company spends
and receives
5.Accounting a rule that describes how the financial information of a company or
Standards organization must be recorded
B. WRITING
I.Answer the following question
1.What is the accounting process? What are the main responsibilities of accountants?
- Accounting is the process of identifying, measuring, recording,classifying, summarizing,
analyzing, interpreting and communicating the financial transactions of a company.
- Main responsibilities: Transfer information from journal to ledger accounts periodically.
Make a trial balance to make sure that Total credits are equal to total debits. Use
information in the ledger accounts to make financial statements.
2. What are differences between financial accounting and management accounting?
- Financial accounting is used to assist investors and creditors in deciding where to
place their scare investment resources.
- Management accouting is used to set the company’s overall goals, evaluate the
performance of departments and individuals
-Financial accounting information is public information but management accouting
information is confidential information.
II. Translate into Vietnamese
1.The accounting process is the series of steps followed by the business entity to record
the business financial transactions that include steps for collecting, identifying,
classifying, summarizing, and recording the business transactions in the books of
accounts of the company so that the financial statements of the entity can be prepared.
 Quy trình kế toán là chuỗi các bước mà đơn vị kinh doanh thực hiện để ghi nhận
các giao dịch tài chính kinh doanh bao gồm các bước thu thập, xác định, phân loại,
tổng hợp và ghi nhận các giao dịch kinh doanh vào sổ kế toán của công ty để có thể
lập báo cáo tài chính của đơn vị.
2.The general ledger serves as the eyes and ears of bookkeepers and accountants and
shows all financial transactions within a business. Essentially, it is a huge compilation of
all transactions recorded on a specific document or in accounting software.
 Sổ cái đóng vai trò như đôi mắt và tai của những người làm sổ sách và kế toán và
cho thấy tất cả các giao dịch tài chính trong kinh doanh.Về bản chất, nó là một tập
hợp khổng lồ của tất cả các giao dịch được ghi nhận trên một tài liệu cụ thể hoặc
trong phần mềm kế toán.
III.Translate into English
1. Bảng cân đối thử là một tài liệu kế toán hiển thị số dư cuối kỳ của tất cả các tài khoản sổ
cái. Bạn cần tính toán bảng cân đối thử vào cuối năm tài chính. Mục tiêu của bảng cân đối
thử là để giúp bạn phát hiện ra những sai sót trong kế toán của bạn.
 A trial balance is an accounting document that shows the closing balances of all
general ledger accounts. You need to calculate the trial balance at the end of the fiscal
year. The objective of the trial balance is to help you catch mistakes in your
accounting.
2. Kế toán thuế là một tập hợp các phương pháp kế toán và một công cụ hữu ích mà các
công ty sử dụng để hiểu nghĩa vụ thuế của họ và tránh bị phạt. Kế toán thuế là chìa khóa
không chỉ cho doanh nghiệp mà còn cho cá nhân để khai báo thu nhập chính xác, đóng
thuế phù hợp và tránh bị phạt.
 Tax accounting is a set of methods for accounting and a useful tool that companies
use to understand their tax liability and avoid penalties. Tax accounting is key not
only for businesses but also for individuals to declare the correct income, pay
appropriate taxes, and avoid penalties.