UNIT 1
NAME: ...................................................... CLASS:...................................
I. Choose the best word to fill in each gap
1. Accounting is one of the ................. fields in the modern business world.
A. fast-growing B. faster growing C. fastest-growing D. fastest-grow
2. Nonprofit organizations are in business for some purposes other than ................. money.
A. make B. making C. to make D. made
3. Accounting serves the purpose of record keeping by promptly ................. all the business transactions in
the books of account.
A. selling B. buying C. recording D. reporting
4. Private accountants, also called executive or administrative accountants, handle the ................. of a
business.
A. balance sheets B. cash flow statements C. financial records D. operations
5. Controllers are responsible ................. maintaining the records of the company’s operations.
A. to B. with C. of D. for
6. Managerial accountants work with the kinds of financial reports ................. to management for the
efficient operation of the company.
A. necessary B. unnecessary C. need D. needn’t
7. Many people have chosen ................. as a profession because of its many advantages.
A. account B. accounting C. accountant D. counting
8. Reports on past ................. and current financial status are useful only as input to decisions about
courses of action that will lead to future performance and status.
A. performed B. perform C. performing D. performance
9. Accounting is also intimately involved in ................. the financial interests of the parties involved in all
kinds of relationships.
A. sorting out B. giving out C. getting out D. running out
10. Taxing ................. are interested in past financial performance in order to assess and collect
appropriate taxes.
A. authority B. authorize C. authorities D. authorizing
UNIT 1
NAME: ...................................................... CLASS:...................................
11. Workers and potential ................. need financial information to make decisions about the viability of
entities as employment.
A. employment B. employers C. employee D. employees
12. Decisions to open new plants, lay off workers, locate in foreign countries, and close banks and savings
and loans are all based to some degree on financial information ................. by the accounting system.
A. provided B. provide C. provision D. providing
13. Most people who wish to become CPAs now take university courses in ................. and related subjects
in order to be as fully prepared as possible for the certification examinations.
A. languages B. accounting C. engineering D. assistance
14. A large number of universities now ................. business schools that offer regular four-year programs
leading to a bachelor’s degree in accounting, business administration, business law, and other areas that
................. the students for professional or management careers in business.
A. have/ equip B. has/ equips C. have/ equips D. has/ equip
15. An accounting student in a commercial university or college has the enormous advantage of being able
to ................. in many of the related fields that are important to him or her.
A. takes courses B. taking courses C. take courses D. take course
16. ................. who specialize in income taxes must have a thorough knowledge of the extremely
complicated tax codes of their country and region.
A. Accountant B. Accountants C. Accounting D. Accountancy
17. Managerial accountants must be thoroughly familiar not only with corporate tax laws, but also with
other laws that ................. the particular business in which they work.
A. affecting B. to affect C. affected D. affect
18. It is an indication of the ................. importance of accounting that advanced degrees are now given in
the field.
A. increasing B. increase C. decrease D. decreasing
19. It is also a field in which the ................. for competent accountants exceeds the supply.
A. provision B. distribution C. demand D. delivery
20. Everyone ................. in the field, whether a bookkeeper or an accountant, should be alert to the
developments and changes that help to make accounting the challenging profession that it is.
A. involve B. involved C. involving D. to involve
UNIT 1
NAME: ...................................................... CLASS:...................................
II. Choose the best term to match the given definition
1. Money in the form of coins, notes or bills
A. cheque B. cash C. Gold D. capital
2. The money for business activities that a company obtains by selling shares rather than from loans.
A. cash B. Interest C. Equity D. debt
3. A gradual reduction in the value of machinery, a vehicle or other asset over a particular period of time
A. depreciation B. decease C. fall D. drop
4. An equation showing the relationship among assets, liabilities, and owner's equity “Assets = Liabilities +
Owner's Equity”.
A. accounting records C. accounting equation
B. balance sheet D. income statement
5. This provides a systematic and logical process by which the cost of a product can be determined.
A. Cost accounting C. Financial accounting
B. Tax accounting D. Managerial accounting
6. An amount that is written in a company’s account to show a decrease in the money the company owes.
A. capital B. interest C. debit D. credit
7. A list of all employees and their wages
A. salary B. income C. revenue D. payroll
8. An accounting record where all business transactions are INITIALLY entered.
A. ledger B. book C. record D. journal
9. Money that is spent to purchase goods or services.
A. expense B. capital C. return . revenue
10. A detailed summary of a person's or a company's financial condition at a specific point in time, taking
into account their assets, liabilities, etc.
A. profit and loss account C. cash flow
B. income statement D. balance sheet
UNIT 1
NAME: ...................................................... CLASS:...................................
11. Something that is legally owned by a person or company.
A. money B. property C. capital D. loan
12. Cash or something that is easily convertible into cash.
A. coins B. assets C. liquid assets D. liquid
13. Money remaining after all expenses and taxes have been paid.
A. outcome B. expense C. net worth D. net income
14. Cash or goods which the owner takes from the company for his own private use.
A. drawings B. liabilities C. return D. loan
15. These are bought by people wishing to invest in the company.
A. interest B. shares C. stock market D. capital market
16. The extra amount which is paid for a company above the value of its assets.
A. shares B. liabilities C. goodwill D. capital
17. The purchase of another company
A. acquisition B. buying C. selling D. investment
18. An official examination of the accounts.
A. check B. audit C. test D. investigation
19. The total sum of money which is supplied by the owners of a company to set it up.
A. loan B. overdraft C. capital D. liabilities
20. The official book for keeping accounts.
A. journal B. book C. ledger D. balance sheet
UNIT 1
NAME: ...................................................... CLASS:...................................
III. Complete the following sentences with the correct form of the words in parentheses
1. ________ (manage) accounting involves the development and interpretation of accounting
information intended specifically to aid management in running the business.
A. managerial B. manage C. management D. manager
2. Bankers and bondholders, as the major creditor groups, are ________ (outside) because they
usually have no management functions.
A. outside B. outsider C. outsiding D. outsiders
3. When a specified time period is up, these losses and gains are ________ (analyze) according to a
pre-defined format.
A. analyzing B. analyzes C. analyzed D. analyzer
4. Fund accountants balance a set of accounts to report on how budgets were spent rather than for
________ (calculate) profit.
A. calculating B. calculation C. calculated D. calculator
5. Accountants who ________ (special) in income taxes, for example, must have a thorough
knowledge of the extremely complicated tax codes of their country and region.
A. specializes B. specialize C. specializing D. specialized
6. Reports on past ________ (perform) and current financial status are useful only as input to
decisions about courses of action that will lead to future performance and status.
A. performing B. performed C. performance D. performs
7. Stockholders want some indications of the potential for return on their ________ (invest).
A. investment B. investments C. investor D. investors
8. Decisions to open new plants, lay off workers, locate in foreign countries, and close banks and
savings and loans are all based to some degree on financial information ________ (provision) by
the accounting system.
A. provide B. providing C. provided D. provides
9. The________ (account) has to design such a system of accounting which protects its assets from
an unjustified and unwanted use.
A. accountants B. accountancy C. accounting D. accountant
10. There are many parties - owners, ________ (credit), government, and employees etc., who are
interested in knowing the results of the firm.
A. credited B. crediting C. creditor D. creditors