Test Your Business English. Accounting

7/28/2019 Test Your Business English. Accounting

1/45

Seltion of th trmsTh trmsar dirtl lvanto th araof.aounting. gnral msar not inludd.no arvr thnialons.only in stionl ar morbasi trms inluddwhrw think that thirundstandings important o th undrstanding f othr mor spializd rms.Finally'th anguag

modl s pdominantl itishnglish;and th aountingpriniplsand pratis hosurrntlyin us n thUK .

othr titlsn thsrisTst YouBusinssnglishlmtr

st YurBusinssnglishMrktig

bst Your Busins snglishHtl odo|ring

st YourBsinssnglish lntrmdit

Tst YourBusinssnglish Srtril

Tst YouBusinssnlish Fine

o N T N T S

Stion1Fatsand figurs

Aounting

lnasand dras

Inomationhnolog

Setion2sh ounting

Puhass nd sals

Adjustmnts

Firralaounts

Stion3Businss tuturS

Shas

Partnships

Aquisitions

Setion4arningsand taxation

Dpiation

Audit

Prsonal ontat

Stion5Ratios

h balan htValuations

AountingpoliFunds

Th Basisst Introduingounting 1st 2 Fatsand figusTst3 lntroduingaountingst4 Aountingst 5 Phrassst 6 prssinghangst7 positionsfhangTst 8 ThnologyTst 9 Computing

Fundmntls f finanilaountingTst 0 Bankingstll ashAountsTst 12 radingdoumntTst 3 Buyingand sllingTst 4 AdjustmntsTst 5 Making hangsTst 16 Profitand ossTst 7 Profitnd oss aountst 8 nd oyr

Businss organizationst 19 BusinsssTst 20 FalspratisTst2l Shasst 22 Slras ssust 23 PartnshipsTst 24 Giving adviTst25 Aquisitions

Finnialountingst26 aningsTst27 TaxationTst 28 Dpiation

st 29 Dpiating:hrasalvbsTst30 AuditingTst3l Th workof thauditorst32 Prsonal ontats

Finnialstatmnts ndatiosst33 Ratiosst34 Ratios2st5 h alan shtTst36 ValuationostokTst37 GoodwillTst 38 Aountingpolist 39 Funds

I2J

45689

l 0

I Zl 3t4l 5l 6t'7t 8l 92 l

22Z

25262'72830

,!-

JJ

56,7389

4 l 1a-

444454149


2/45

Stion6ostanlsis

atials

Costingmthodsarginalosting

Stion7Planning

Budgting

Tlphon ommuniationControl

Stion8Prforrnan ppraisal

RsultsPriing

Invstmnt

Answes

Word ist

CstingTst40 CostsTst4l ostanalysisst42 StokontrolTst43 Stokostsst44 oststinmntst 5 ginlosting

PlanningandontrolTst46 CoporatplanningTst47 Plnningnomationst48 Budgtingst49 VariansTst50 TlphoningTst5l Control

DisionmakingTst 52 Prformanst 53 Brak.vnnalysisTst 54 Prsntingh sultsTst 55 Priingst 56 ConfusingwordsTst-57 InvstmntTst58 Disions

505 l52535556

58606 l626365

66616870'72I

'/5

8

s I oN l : H BASI S

I Introduingounting

Compltrth following words.Srampl):

l Thisompanyhas supplidgoodsbut has not rivd

anymonyor hmyt.2 ompanirsmakthis whn hy sll hirgoods or

morthan t osts hm o mak thm.

3 Companismak this whn hy sll thirgoods orlss han t osts hm to makthm.

Goodswhih ar bought by th ompany.

Goodswhih th ompany hasavailabl o sll.

An amount ofmony whihs takn out of an aount.

Customrswhohavr rivdoodsbut not paidor hmt.

A rdutionn th priewhihs offrd o ustomrrs.

This isth nam of thdiffrn twnh rditand dbit sidof an aount.

hisisdrawnup to hekthat th twosidsof thaountsar th samr.

Th ostof transportinggoods s alledthis.

Th offiialbooks for kpingaounts.

4

5

6

CR D I To R

L* _ _

P_-__--ss--__Kw__ _ D_ _ _ _L

D_- -__R S

D __C- _ ___

B_ _ _- - -

T _ . _ _ t _

C_ _ _ * - G ,

L D S

8

9

l 1

r2

l 0


3/45

Fatsandfigurs

Writ th numbr oalrof th followingnt to th orrt word. (Sxampl):

StionI.. Th bsi,s

multipliation

rmula

division

prrntag

avrag

ratio

addition

rat

subtration

(t 74%

2. 42. 5.9.63.4

c) f=/{zv1

000's'&,11$;1

c_-301

@ ooosJanFeb

I\^arAPri\MAYil;"6 =#tronth\Y

@1,623+3'004-- 4'621

/ ):- 02 6,2= 1,872.4

(6),-J) 9,260 1,111 8,149

ili#i'Bi'::i:ndiret

724200

--3.62( q \'r:, t12.24/ hour

3Introduingounting

ompltth tbllowingwords.

I

21-

4

5

6

1

8

9

l 0

l l

t 2

Thisis th nam orbuildings,mahinry,mony in

th bank and mony owd by ustnrrs.

h lossovaluof th things n numbr( ).

Mony wlrih s borrowd.

Th xtra mony a ompany or prson pays for

borrowingmony.

h total sunr of monywhihis supplidby thownrsoa ompanyt st t up.

Cash or goods whih thownr taks from

th omparryorhis own privatus.Ths ar ought bpopl wishing toinvst nth ompany.

Th xtra amount whih ispaid for a ompany abovth valu o ts assts.

Th purhasof anthr ompany.

An offiialamination of th aounts.

A finanial planfor th futur.

A statmnt of th finanial position of th ompany.

AD

L

I

* * - _ -

__w___s

GO O

A C Q U

B_ _ _ _ T

B sT

StionI.. Th bsis

S


4/45

Setion ] . Th bsi:s

4 Aounting

Fill in th missing words in th sntnsblow. Clroos romth following. Youshould us ah word mor thanon.

aount aounts aountant aounting aountany

' .:"]:: :::.:: ::::

*: ':s havbnntrd orrtlyn th bank

2 H'sat univrsitytudying............

, 'n::]:::::-:::::-::HH:-n"".

not t iddn hir

o o o::u:::,::-:]:::.:::]': of finanialtransations in th

5 Most popl in th profssinrad ........ ' magazinesandjournals in ordr to stay n ormd.

6 Sh,sbn workingas an . . . . . . . . . ' . with thisfirmt-or vralyars now.

7 Th dirtorsof th ompany approv h .......... at th nd ofth . . . . . . . . . . . . . . ' . . . . . . . . ' .a r.

'::::::

. . .. . . . ;";.n,;,.ll'ompltdthdratahbranhmaintainsts own ull.......... sstm.

Thy havopndan for th onsignmnt o Bombay.

is rall otan xat in.

A businssmanagrrnds om knowldg nordr oundrstand hat he rads n th ompany

I

9

l 0

l t

t 2

S'tiotlI.. Tlrcbasis

5 Phrass

What s thmaning hphrassn boldn th sntns 10) low? hoos horrt finitioniomth ist(a.-j) n th ight.Writ youranswrsn th gridblow.S xampl):

l How do ou auntfr th suddn fall in thstkvalr.r?

2 Agnts buy and sllgoods on their own aunt.

3 Thy gav h soliitora dtaild aountof thustomr's businssdals n th last ar.

4 h draft aounts had to b adjustd on aountof th disovrythat a major dbtor had gonbankrupt.

5 Raw matrials ount for 30,, thmarrufturingost.

6 lrya gulzrustoms n this shop and arnow abl to buy on ount.

7 n no aountslrouldths igursb rlasdbo h board mting.

8 Whn rnakingdisionsorth futur thmanagshav to tak this yar's poor prrmaninto aount.

9 By all aunts, hy w,illbnfit grtl th dalgos througlr'

l0 Th advrtising ompanha s won two n waounts n South Aria.

a) popl ay

b) rport

) undrno irumstanrs

d) onsidr

) xplain

0 bigustomrs

8) or hmslvs

lr)baus

i) onrdit

j) rprsnt


5/45

StionI: Th bsis

6 xprssinghang

Hrar hirtyvrbs/vrbhrasswhihar usd o xprss hangs.Whihdirtion

do thyshow?Writ hphrassn tholumnblow h appropriat raph.Th

numbrospas hows hnumbrof phrass orah.

b stabl tllin dras dpn dsnd

dtriorat diminish doubl drop dwindl

salat xpand fall grow hold flrm

improv inras jump maintain sam vl rovrr

rdu rmain onstant rtain position ris rokt

shrink slow down slump soar suffr

U)uJJ

Sctio],. T|l bsis

C


6/45

Setion1.. Thbsics

7 Prepsitionsfhange

Fill in th nrissingprpositionsin th sntnsblow.hos from th following:

at btwn by from o to

I

2

3

4

5

6

7

I985.

l 0

l l

t2

Stion I..Th busi,s

8 Thnology

Look at th drawingsblow and writ tlr numbrs l l4 nxt to th orrt wordor phras.

kyboard srniax CD

mousr modm

window pintr

tool bar papr and pnil

mnu bar tlphn

manual rasr


7/45

Stionl: Th bsics

9 Computing

ornpltth rossword.

Aross

3 Th od whih idrntifisah ll in th tabl.

5 All th sztlsrport fllsshouldb stord n th sals. . . . . . . .

7 hoos on oths rom th mnu to tll th omputr what to do.

8 Gt in1brmationbak roma stord fil.

13 Bringin informationromothr appliations.

14 Rmov.

15 Put th inlbrmation on th srnso that you an rad it.

Down

l Do this rgulalso that you don't los any infbrnration.

2 Canl th last ation.

4 A rgistrof nams, addrsssand othr information.

6 Without th password this will bdnid to you.

9 This lts u lava doumnt.

l0 Put inormationinto th doumnt.l l Mov quiklythrough th doumnt.

12 n arawhr a sgmnto nformation an b stord.

14 Clik th mous and roll it to anothr part of th srrn.

l6 Stop an opration bforyou lravompltd it.

Setion l..The bsis


8/45

s C T I o N 2 : F U ND A M N TA L S o F F I N AN C I A L A C C O U N TI N G

10 BankinsLookat th drawingsblowand writth numbrs

or phras.

l-l2 nxt o th ortword

bankhqurossingpaing-inslipountrfoildrawrpayerhqunumbrdatof dpositaountnumbrrbank statmntbank ovrdraftbalan

+.{folN

o \o \o \o \o \

i O \\ o \\ o \i O \

\ oi O

o

ooo

t o

ffijro.G

.6o.0

2

il ,ro6-t -lo

ffi1 ta--

hYEt'F.bt'i t ^l,..'.=.l Fv .r.r/*

:

Iit,toloBol

r-p+4#*

Sl5l5 ,-----

,tl^n rq-. B,$lKg,i.,$( .Rr*aANKft

; A.El_9PPl

Setion2..Fundmntlsf innil tt,ounting

||Cashaounts

Fillin tlrmissirrgordsor phrassn th sntnslw. hoos rom h ollowing:

brought ontra arrid lard hargs urrntdposit disrpanis pttyash spimn stoppd transation

l Smallamounts omon whih arpaid out for things suhas ptrol, soap and

bus fars ar usuallyrordd in th book.

2 h ustomrha s to pa y . . . . . . . . . . . . . . o th bank o r h dailsrvis

it provids.

3 ah singlmovmntof mony inth aount s known as a.........

4 At th bginningof ah month th balan from thprviousmonth is rorddat th top o h aontas .'........ ....orwardand at th nd othmonth as balan forward.

5 Th bank Statmrnt should b hkd againstth ash book to mak sur thfigursar th Sam and that tlrr ar no

6 If th drawr inormsth bank immdiatly thata hqu has bn stoln or lost'th hqu willb by th bank and no paymnt will bmad.

7 If doubl nty has takn pla within th ash book thitm dos not nd to b

:::-::::::::T:'ook

as doubl ntr and thitm is known asa

8 Whn a hqu is rivdand paid into an aount it Will b dbitdto thaount on it has bn

9 To mak sur that hqus havbn signd by th aunt holdr th bankhks h signaturagainsta . . . . . . . ' . . . . . . signaturwhih thy hold.

l0 Holdrs oa aount ar issud witlr hqus but riv i ttl,iany, ntrst, whilustomrs with a aount will rivahighr rat of interst.


9/45

S ' o 2 Fudt tI o| fin,u out ng

|2 Trading oument

Fill in th missingwdsirr tlrdoumnt blow.hoos rotrrh ollowing:

trad disount unit pri trms dispath dat it-tvot

tax point amount dsription valu adddtax quarrtity

loe SmoIILtdMin lndustriLstte

Antown

(3) 12 anuar

S : on 2..Fundmnt s o/, inni ,o tl llg

13 Buyinsnd ellingChoos th corrt word in ah oth followins:

hbookwhih ontains is toallomparryals rrangd ydats knownas h

a) sals ount b) sals ard ) salsnvoi d) sals avbookA ............ .. s no t orddn doubl ntrv.a) ashdisount b) rfund ) taddisount d) ash sal

3 F-aultyoodswhilrar sntbakto th supplirby th ustomr rknownas

;; ;.;;;; b) provisions

4 ^ . . . . . . . . ' . . . . . ystm huldmak sur ha tdbtos o no t oW oomuh mony.

a) quality ontrol b) rdit ontrol ) rdit not

lnvoie

NTes td24Hightret

Newtown

(1 ) . ..... No ' 066798

o.ltnrflo ountNo .Tee4331

) rovrs d) disounts

d) rdit ransr19. .19. .

A ompany slls goodson rdit, but iustonrrsnvpay fbr ths goods thmonowirrgs knownas . . . . . . . . . . . .a) bad dbts b; dbits ) bad paymrrt d) bankruptsh stimatd pns f nt bingpaidbydbtorss knownasa |an . . . . . . . .a) allowan b) dvaluation ) proviso d) rovision

7 tyoualulatiffrrrtrntagsordbtswhihhavbnowingordiffrntngths im, ouan prpar la n ..'.. ' . ...... hdulodbtors.a) progrssiv b) aging ) rduing d) inrasing

8 In many ountris ta s addd o thpriogoods n l rvies,ut somgoodsmab and no tax s


10/45

Stion2.' Fundnlntls oJ.finncilt'unting

14 AdiustmentsMath th followingxamplswith th orrt word or phras from th box'Writ th orrt numb in th spas n th bo.

rroroomission omprnsatingrror journalrroroomnrission rrorof originalntry..... an ovrastountrrorof prinipl ..... rvrsalntris an undrastount....

l Tonyankshasadddup th igurso produ flgurwhihs ss han tshouldb '

2 The sals ountand th purhasrs ountwrbothadddup wronglyby thsam mount.

3 ariStwrt orgoto rord h ransationn th aounts.4 FrankMannorddhpurhas f th orr n th puhassountbut t

WaS fidasst.

5 Su Blakhas orrtdhrrorand roddt in thisbook.

6 AnnaFranksmada nristakn th nvoibut ntrd h Samigun bothth sals nd thustomr'sount'

7 LslyBrunovskyntrlhorrtamount n th orrtaounts ut as adbitwhrt shouldhavbna rdit,and a rditwht shouldhavbna dbit.

8 GarryBlushas adddup th igurswronglyo podu totalwhihs gratrthan t shouldb .

9 ThoKohntrd horrtamountbrrt n thwrngustomr'sount.

Stio2.. Fundmnls ofJini rl , , un lt

15 VlakinghangesHr s a lttr roma firmoaountantso lint.omplth ttrby nsrtinghmissingphrass. hoosromh b blow.

a) adjustmrrts 0 aumulatdb) thauditd ounts) ndd0 pri1|997 8)

hangh) th bankovrdrt.d) do no thsitt,toontat i) hquor 2,500) with h inalaounts ;\ *-^--:-..1) rovisionor bad

^/cQ

I\9t

Dear r LeeWe have p1easure in nlosing five opies of the full aounts for

the period (1)We are also sending you a list of the adjustments whih you needto make to your Norr-inalLedger so that the opening balanes at

1 ay 1997 agree with (2) . . . .

' Please pu t in the details of a (3 ) .'." drawn

in Deerrber1995 for Customs and xise into bank pa1rments.

These details are missing so the Nominal Ledger understates

( 4 ). Inrease bank pa1ments by 185.20 and ode it diret to

purhases. This will over various smll differenes whih have

(5 ) .. - - . over th e Years '. ake newNorninal ldger code headings for

( 6 ) . . . . . d e b t s .. (7 ) ..... th e present ode headings fo r plant

and equipment at ost to 0011.

We feel it is better to separate the ost and depreiation of the

fixed assets in the Nominal Ledger to mke it easier to o)are

(S) It also makes it easier to find any

(9 ) . . . . . whih have been made.If you have any problems with these hanges or would like to

disuss them further, please (10) . . . . . . us.

Yours sincerely

d/rr|/l, vltL


11/45

S ' on 2 .Fundmen u s oJ,fi n ,lun ng

16 Profitandoss

Fill in th missirrgwords in th sntnsblw. hoosromth following:

l As A. Z.DsignsLtd is a smallprintingompany' ll thirprintingontrats rknownas ........... .. ativitis.

2 Rntly, fllmompanypaidA. Z. Dsignsa lag mountof mony o us hompan's rmisrswhn hywrmaking afilm. his was ordd nthP&LAount as inom.

,l:::-:-:::::::.::-"',

maks n its normal ativiti ss known as

4 ^t th nd oth yaSm f thprofitsmayb shad ut among hsharholdrsh will riv .. .........

5 Th osts fgttinghgoods o thustomrsrshown s ........'..ostsn th P&L Aount.

6 atrials whih ar usdup in manufaturingand workrs,wagsar rorddas . . . . . . . . . . .

' '.l::::::::::.:

-].::" u"o pnssnurrd n th offiar shown as

8 Th ompany may dide o kepsomr of thprofitsat th ndof thyarandth amount s shown s ..'..,....' .. profits.

adrninistrativxpnss ostof sals distribution dividnd

traordinary ordirrary tind turnovr

Math th tms (l*l0) to th ntris a-j) roma Tralingand Profitand LossAount.

Tradingand Pofitand LossAount

|7 Profitand ossaount

urnoverCost f alesGrossrofitDistributionostsAdministrativexpnss

Otherperatingnome

lnomromharesn elatedompanieslnomerom theriedssetnvstmentsOthernteresteeivble

lnterestyabIeProfitnordinarytivitieseforeaxtionax nprofitnordinrytivitiesProfitnordinarytivitiesfterxtion

traordinarynomeaxnextraordinaryrofit

Profitor he inaialearRetainedrofitsromast ear

ransferogeeraleserveProposedrdinayividendRetaindrofitsarriedonextear

S, o t2 .Fundnle s ofrinl l ou n,

f000's

90055 035 0

105245

5500

d

1 5201 0 45

3451 8

27'109

2181B0

60_30

1224A40

280

19 090


12/45

Sction2.. FundmntlsofJinnil countig

l hvalu ostokat th nd of th arhas bnddutd.

2 Bankintrst n th ovrdraft.

3 Dividndsrom nvstmntsn sharswithvoting ightsn othrompanis.

4 Nt nvoidmounts or sals.

5 Thisyar'S rofitswhihwillnot b paid outto invstors.

6 Th dlivry rivr'swags.

7 onyrivdor rnton buildingswhihhavbn t or a short imas thy

arr not bingusd.

8 Thismonrywillprobablyb paidout to sharholdrs.

9 Tlphon,tationry nd gal s.

l0 Anovrprovisionor orporationafrm ast yar.

S on 2 .Fu dmn s o.fJin , , un ng

18 ndofyarLook at th words in itli,in ahoth ollowinssntnsand hoos thorrt on.

On th firstday oth nw flnanialya th ompany ounts and rordsall thmatrials, parts' mahins,statiorrryt. n th annua| rtl,kpilstok-tk.

Nw rgulationsman that th aoLlntantsmustpublii:publish th radingand Profitand Loss Aountin on of ourbrmts f.ormtions'

If th information in th Trading and Profitand Loss Aount is only forinsidr intrnlus, th ompan an did to prsnt th informationasit wishs.

4 Th lawstats how muh inrmationmust e dislo'dnlosd in th Tradinsand rofitand Loss Aount.

5 This ompanyturnovr is lsndddril,d rom th sal o manuaturd goods.6 h nots whih arc ppnlldhrd to th Trading and Profit and Lss

Aount plainhow th figurshavbn ompild'

7 Th ompan wishsto approinlt pprtin otor xpnssquallybtwnDistribution Costs and Administrativxpnss.

8 Th auditors' rmurutionlompenstiot"tor thir srvisshould b shown inth nots.

9 h aountants hav to :rditru orporation Ta on ordinar ativityprofitwhn thy ar prparing th radingand Profitand Loss Aount.

l0 Th finaltax figurwillprobabt b diffrntto th book figurSo an amount hasbn transrrd o th dct Id/rrd axation aount.

l l [t s nssary o stat h lolumntsmo||ints of th hairman irrth nots.

3


13/45

sTION3: BUSINssoRGANIZATION

19 BusinessesMathth followingsntns1-11) with th words orphrass a-k)on th right.Writyouranswrsn thgridblow. Sxampl):

1 hholdr ofthshas nt th ompanymonybut hasno votingrights.

2 A goupof sixaountantshavdidd o forman assoiationo arron businssn ommonandmak a profit.

3 h invstorsgiv hsrpopl h powr o runth ompany.

4 his ompanyholdsmor than5o/oflthvotingshars n anothrompany.

5 mbrsof thepublian only nvst n thisompanyf t hy ar nvitd o do so.

6 Invstmntsn manyompanis an b madbybuyingsharson this markt.

7 The publiat argan br sharholdrsn thisompany'

8 Thgolflubwas stup with th ntntionof notmakinga profit.

9 Fifty-onpr nt ofth votingsharso his

ompany arhld byanothr ompany.l0 Thisis th mtingwhihs hld ona yarfor

th sharholdrs.

11 This rxistswhn svral ompanisar n arlationshipof owningand bingownd'

a) subsidiaryb) goup

) non-profit-making

d) stokxhang

) partnrship

)dirtors

g)privatimitd

h) dbnturs

i) publi imitd

j) holding ompany

k) annualgnralmting

I 2 IJ 4 5 6 8 9 l 0 1 l

h

S on3..Bu,itts,;rgnizttion

20 FalsratiesA Complt th followingtabl.

Noun

draud

dit/dption

pilring

Wast

mlspproprlatlon

brak

forg

falsifiation

rr

mbzzlmnt

B Fillin th missingwords n th sntns low. hoosfromth tablabove.

Whnvaluingthe stok, hrar manyrasonswhy h managrmakesanallowanf0.5"hio atural ............. ' of tems.

Whad to maksur hat employsouldnot . . small tmsfromth offi'

Th bookkprridto 6y('200,000but th auditorbam uspiiouswhnh foundhangs 65rnenvois.


14/45

Sction3: Busiessorgnltn

In rdr to avoidpayingtax h didd o .. . . . . . . . . . ... h doumntsby

undrstating profits.

5 S v r a l p r op l l o s t l a rg s um s of m on ydu t o t l r . . . . . . . . . . . . . . o fpnsionunds.

6 A srious............. wa soundn thdraftaountsforhy

wrpublishd.

7 Thvdisovrdhat th signatur n th hquwasa

Setio3..Businssorgniztio

2l SharesFill in thmissingwords in th sntnsblow.Choos from th following:

appropriation bonus dnomination intrim nominal

ordinary issud prfrn prliminary rdmabl unalld

l his ompanha s ssud shars n f5 . . . . . . .

2 At th nd of th flnanialya profitsar flrstoall alloatdto pay th fld

prntag ividndson . . . . . . . . . . . . . . hars.

3 Th sharholdrshavvoting rights but do not hav a fidprntagdividnd.

4 Th ompanyhav diddto issu shars fr oharg to

thir xistingshar holdrs.

5 Th ompanis allowdto issu a total amount oshars known as th

:::'::":. :':- :::j,i.]i;;; ;;,.;; ;;; ;;j:,'.al.Howvr,h

6 Thr wr arg xpnsSn starting th ompany.

7 Thy hav only askdfor somof th amount payabl on th shars, so thr s

still a lot of apital.

8 20|12009 rittnbhind a dbnturr mans that t is . . . . . . . . . . . . . . duringthat tim.

9 h finalaountsshouldinludan . . . . . . . . . . . ... aount whihshows

how th ompany will u s thproflts.

10 Atrtrading for simonths, th ompany paid out andividnd.


15/45

St o 3.,Busillssorgniztion

1,, Sharsssue22A ompanhas issud l0,000 sharsand th ollowing trathas bn takn rom

th bank ount.

Us th inormationin this rxtrat to fill in th missingwords in th txtblow.hoos from th ollowinc:

allotmnt appliation appliations all ss first foritd

issud nominal ovrsubsribd rfurrd rissud sond

Th ompan1) ............. l0,000 ixp r n t rfrnhars f ah.Invstors ho wantd o buth shars ad to pa |0.' n (2)20olln allotmnt,,tln th irst 3) ..... .. .and30% n th(4) .......... ... all.Th salwa svrpopular nd h ssuwas(5) . ... . (6) wr ivdor15.500 hars.A (7) of thmonyor500sharswasmad.An (8) was madon thbasisof two sharsor vry hrapplid o or h maining5,000. h (9)... . .. .appliationmoniswr t ffagainsth l0 ) ........... .' monis skdo '

Th holdr f l,000hars idn't ay h 1l).. '. ' ... ' ..... ndsrond alls :

Stion3..Busitl,srgiztion

23 Partnrshipshos th orrtword r phrasin th followingstatmnts about partnrships.

l Ia partnr s iablonly to th amount of apitalh nvstdh s a. . . . . . . ar tnr.

a) liability b) limitd ) orporat d) dad

2 he partnrs want an oftial agrmntabout thir sha n th prtnrship' sotlryar goirrg o dawup alan .. . . . . . partnrship.a) dd b) transation ) titl d) instrumnt

3 If thr sn't an offiialwrittn agrmnt,but a partnr signsa balan shtwhih showsthat profitshav not bn shard qually,agrmntwould b

a) implid b) statd ) drawn d) blivd

4 Partnrsan hoosto produ idapitalaountsor . . . . . . . . . . . .i apitalaounts.I a) hangabl b) moving ) variabl d) flutuating

5 A partnr who dos not tak an ativpart in th businss s alldapartnr.

a) silnt b) dad ) slping d) inativ

6 Whnpartnrs an'tor don't want o ontinu npartnrshiphr s a....... f thpartnrship.

a) divor b) domposition ) amalgamation d) dissolution

7 Whn hi shappns ......... Aounts opnd o rord htransations.) Sals b) Rlization ) Distribution d) Liabilit

8 Whn hpartnrshipoms o annd, hdbts r iabilitis .......a) dishargd b) disposd ) distributd d) dissolvd

9 on partnwhoows hpartnrshipmony,willhav o anelhis....'.. o th partnrshipirm.

a) dal b) laim ) indbtdnss d) artilsij*

Bank

App|iationand AllotmentApp|iationmoniesAllotmentmoniesFirstallSeond allH. Jay

1 50150060027000075

Appliationand AlIotment efund50


16/45

Stio3.. Businssorgniztion

24 Givingdvi

Th ollowinghrass r romtwo diffrntttrs: ttr o a firm of aountantsasking or adviand th rply. hy ar allmixd up.Put thm n thorrtordrto produ woorrtttrs.

W ook forward oharing romou.Yours sinrly

)n.n |'|nr

I trust hatyouwill flndths ointsusful. f youwish o disuss nythingurthr last m know.

Dar r Blst

:J;;-

Thankyou br our ttrof 26 Januarygardingh stting pof apartnrship. amnow writing ogivyou my first hought swhihyou maywant odisuss urthr.

So arwhv grdhat r Ford willgiv 20,000as apitalbut willnottakpart n th unningof th businss. r Grantwillmanag h businssbut ontribut nlyf3,000.Mr Blstwillprovid8,000as apitaland ssistnth businss andwhn quird.

Stion3: Businssorgniztin

DarMs Simon

Finally,th aw dosnot rquiryou to draw upa lgalddof partnrshipbut I thinkyoushouldhav writtnagrmnt.

rqust for advi rply

I2

Turningo profitsharing' think twouldb bst or aho hpartnrs orivntrst n thirapitl nvstmntnd thndidhowto shar hrmainingprofits.

First oall, Isuggst hat as r Ford isnot going to b involvdin th dailymanagmnt oth partnrship h b mad a limitdpartnr. This mansthathis liabilityis linritdto th amount oapital invstdby him. H an riva fidamount o ntrst on his invstmntor an amount basd on th profits.I l hat r Grant' as th managing partn and r Blst whowillbativly nvolvd,should rivsalaris for thir work.

W nownd inanialadviabout hstrutur hpartnrship nd wouldb gratulf youwouldassist s.W havplanndour nxtmtingor21 Fbruary, nd wouldik to disussour das hn.

tj - - ]


17/45

Sc iotl 3..Busin sorgniztion

25 AquisitinsLook at th ollowingdrawings,thn fill inth aptions.hoos rom thollowing:

a) oint vntur

b) a tak-ovr bid

) showing ntrst n anothr ompany

d) launhing abid

) onsolidatdaounts

) firrnialhonymoong) minority intrst

h) agring h book valu of assts

F " /

: t

Sc iotl3..Busiessorgiztiott

wRLD

to,000: 4 .- v ' /

o

BUlLDRsLD


18/45

sCTION 4: FINANCIALACoUNTING

26 arningsUs th words in bold at th nd ofah of th followingsntns to orma wordwhih fits in theblank spac.

I2

Wags r aningswhihar alulatdndpaid ...'....Th payrollontainsdtailsof all th .'......' whoworkfor th ompany.

3 Th employrmakes .........'... for ax rom heworkrs'grosssalary.

4 Whnalulatingowmuh a topay'prsonal ..'......is st against h amount somonr arns.

5 In th UK, poplwhohavworkdandpaid nto NationalInsuranan laim bnfitsromth Statr. Thes nlud

bnfit nd apnsionor ..........' *

:::::o:: T:i*i:J:1*mavpav 'n'1hrv

7 Paymntso apnsion hemmay b tax..........

8 Pnsionshms pratdby a ompany may bnon-

9 Th lawn som ountrissays hat anmploywho isill*::::::"}}T;:nt of paywhihs knownas

.,::::::::-::::jffi::,"ys

havholiday

l1 Thyriv n inrasahyaas thy arpaidan ........... salary.

l2 Th govrnmntts h ax bandbtwn n tax thrsholdand thnt.

rvek

mploy

ddut

rliv

mply

rtir

ontibut

ddut

ontribut

statute

ntitle

inrmnt

wid

II 27

Taationh ollowinghrass r romthrdiffrntonrningax mattrs. hy ar all mixdup.produ hr orrtttrs.

Stion 4.,Finnil ounting

lttrswrittnby anaountantPut thm n th orrtordr o

Yourssinrly

r'/L,T,W-1

h Tippt Partnrship

Wnotiromour filshat your1997 nomaxrturnhasnot bnompltdt.

Yoursaithully

t'/L,T.Ifu,hipptPartnship

' I

n.

Wwouldrrommndhat youmakpaymntsOnaountof f2'345onl January998 and 2,46 n 1 Julyto avoid ntrsthargs.


19/45

S,|on 4.' Finnt,il.oulltng

Dar rPndrgast

W alsonlosth Corporatin Ta Rturn and trust that you will babl to

agr our figurs n du oursr.

DarMs PostWhav ntlivd opy ofour|991l98 ax assssmnt.s this sinorrtw hav odgda NotioAppal.

on bhalof CollinsntrprissLtd w nlos aopy o thflnanialaounts for th yar ndd 30 Novmer |991 togthr with aopy of ourCrporation Tax omputation.

W would ikto omplt t andwouldb gratulf ou ould t ushav hdtailsof dividnds ivd romour UK sharholdingsor th yarndd

5 April 1991.Yourssinrly

,'1-ry,t-I

Th Tippt Partnrship

lttr lttr2 ltter3

) mahinryisposalsount

28 DpreiationCirlth odd on out in ah oth ollwins:

Fixdassts ould nlud

a) buildings) th irm'sdlivryans

a) wa nd a ) rosion

3 ahinryboms bsolt u to) nw hnology) hangsn produtionmthods

a) straight-lin) th sumof thyars. igits

7 A mahin ould bdisposd f bybinga) srappd

) rvalud

2 Dpriation o physial triorationan asstmay nlud

4 Amortizations th provisionoonsumption f th ollowingtmsa) mortgags b) lass) patnts d) opyright

5 A provisionordpltionwuldb usdor hollowingtmsa) mins b) buildings) quarris d) oil wlls

6 Thollowingrmthods f dpriation

Stion 4.,Finnilountig

b) plantan d mahinryd) ul ortlrvans

b) thftd) rot

b) onsumptiond) hangs n fashion

b) rduing aland) marktvalu

b) rsold

d) tradd nTh aountswhihwould rordhr salor disposalo amahinara) mahinryount b) sals ount

d) provisionodpriation(mahinry)ount


20/45

Stion 4..Finil counting

29 Depreiating:hrasal rbs

Rpla thwords in brakts in ahof th followingsntnswith a phrasal vrbof similar maning. hoosromth followingand mak any nssaryhangs.(Sxampl):

arry on ath on lar up losoff draw up go ovr

look up sll off st asid st out turn out writ off

l As th mahin had no srapvalu, thy simply(rorddas worthlss). v!tnI!/. it aff

2 The mthods sdor dpriatingh idassts houldb (displayd)... '. ' .n th nots t hnd.

3 Dspitmassiv osss hisya h irm ntrrds (ontinu)

. . . . . . .rading.4 Thyoundh ruvaluo h andwhn h irmhad to (dispos )

. . . . . . .t

5 Wthink t s bst o (kp vailabl) .......monyahyaror turinvstmntn nwquipmnt.

6 Thstimatdif ofth assts provd) .'..... o b vryaurat.

7 If youannt mmbrh ormula orth duing alanmthodofdpriation,findn a book) .......t

8 Ita good da o (onsidr) ....... h diffrntwaysof dpriatingassts for iding l1on partiularmthod.

Aftrdisposal f thasst oua n(finish).. . ' ...... th aount.

hsurplus r dfiinys transrrd hn ou (prpar).'....................hProfitand Loss Aount.

l 1 Th sumof th yars'digitsmthodof dpriations bginning o(bompopular) .......n uropnow.

12 ^ hangn thmthod dpriationhould solv) ....... hproblmoalloatingosts.

9

l 0

Stio4..Finrlniloutig

30 Auditingathth ollowingrms l-l4) with thorrtdfinitiona-n)on th ishtandwrityouranswrsn th gridblow.

I statutory udit

2 ontinuousudit

3 MmorandumfAssoiation

4 ArtilsoAssoiation

5 walkthrough st

6 omplianst

7 substantivst

8 tming nd ading9 auditor

10 priorpriod

l l auditassignmnt

l2 orroborat

l3 statistialampling

l4 onsutivumbrs

a) offiialdoumnt tatingh ntrnal ulsofth ompany

b) followingon ath othrwithouta brak

) this hkshat ontrolsar opratingfftivly

d) rquird y aw

)mony ivdromon dbtor s wronglyrorddo anothr

) gulatshompany'slationshipwith thpubli

g) tsting smallnumbro prsntativtms

h) arridout all th im

i) ollowingoumntsr transationshroughth systm

j) piof wokyouar givn o do

k) arful tudyoall th dtails

l) aountantwhoxamins firm'saounts

m) prviousngthotim

n) maksur t's ruwith mornformation

2 a-) 4 5 6 '7 8 9 l 0 l l t2 l 3 t 4

Stion4..FinniI:ountig


21/45

St o 4..FinniI:ountig

31 ThWorkftheauditorFillin th missingprpositionallrrassn thollowingntns.hoos romth bllowins:

l h auditrdisovrdhat hrwasa th ashbookandth bankbalan.

2 I hntrisn th aounts rnot lar, anthoriginalnvois.

You must an ofiial signaturon alllargordrs.

Th auditor must hkthat th rordsar . . . . ' . . . . . . . . . h ompanyrquirmnts.

Th auditor must sk th any larg disunts or llowans.

Th audito is . . . . . . . . . . . . . 'lrking hr rasn or an y hangs nth aounts.

Th author i t is il l th audi tor . . . ' . . . . . . . . . . . . . . . . . . . . . . . . .nmistaks n th aounts.

8 Th auditormusthk hat hpurhasnvois th ntrisin thPurhassounal.

9 hauditor hould '.......... .' an y hort-ut thds fortingrrors.

l0 istakrsma yb...... '..... .. hwrong tps s d n th originalaountingross.

1J

4

5

6

agr with blam or ausd by diffrnbtwn in linwith

insiston rason for rr o rsponsiblfbr suspiiouso

S' on 4.,Finn'l r:outinp

32 PersonalontatsLook at th follwingdrawings,thn fillin th missingwods.Choos romth ollowins:

)

d)

a) Wouldyou ika opo h port./

b) ayI introdumyollagu,r Fry?

Wll,I rallnd a bit nror tim!

Don't mntionit ! Plasd o havbn abl to hlp.

) Not ompltly,['m araid.

o

0s)

h)

i)

i)

ouldI askyou to signhr?Goodmorning.r Brnik.Ni os ouagain.

Is ntFridaysuitabl?

PIsaka sat.

Don'tWorry.'l lfillthm n latr.

@"u9

Setion 4..Finil ounting


22/45

@ @

o

@

Gn qtprprth)atttfontll?

|hv ltold|l|a prot| f?

Y.r|nr,tt bfin

33 RatiosCompltth ollowingwords.

1 Thprofitpressd s a frationor perntagof thostprie.

2 Thprfitprssds a fat.th sllingpri.

lon or prntagof

3 A prntagf profitswhihthypay th manag'4 RatioshIpus to ana|zeand

aountingnformation.

5 Showsthata firmhas noughmonyto survivnth short.trm.

6 Howquiklystok s turndovr.7 The rangof differntypsof goodswhiha firmsel]s.8 Th sals igurminusanygoodswhihar rturnd.9 Showsf th irman mt ts dbts n th ong trm.

l0 Thamountof borowingby a firm.l l Th ratof turnon an nvstmntn shars.l2 xpnsswhihdo not hangvnwhnativitisar nrasing r drasing.

l3 xpnsswhihhangwhn h lrmativitishang.14 Youan se hiswhn nformationromsevral rarsisompard.

RAIosSCTI ON5: FINANCIALsTATNTs AND

__*-U

I\4A

C _ - T ON

I N

LI - _* D* __

SToKsA____*T-_N- -_S__v___Y

G* _ R- _

Y __ l _

F- __

VA

T _ _N

l d i Setion 5' Finncil sttmntsd rtios


23/45

Section5..Finnilsttmntsnd rtios

34 Ratios2A athth ypo atio(a-) withth orrtdsription ts untion 5).

1 showshow wll th businSsan mt ts

ommitmnts as thy alldu

2 showshow sussullyh businss s trading

3 showshow wll th businss s usingits assts

4 providsinformation about how th apitalstrutur o thfirm is afftingth ost oapitaland th rturn to sharholdrs

5 showshow th ompany'sprforman is rfltdin th markt pri of a shar

a) apital trutur

b) iquidity

) nvstmnt

d) profltability

) usof assts

B Whih typ of ratio ar th ollowing?hoos rom a- abov.

. urrrnt ratlo

. priarningsati

. fixdassts/nt orth

. asst/sals

. aidtst atio

. grossprofit/sals

. dividnd ovrorordinar shars

. borrowing/ntworth

. olltionriod or dbtors

. nt profitatr ax/sals

Setion 5 .Finncil sttmntsd rtios

35 Thbalanht

Fill in th missing ntris n th BalanSht blow. Chosfrom thollowing:

Amounts owd by rlatd mpanis Calld up shar apital

rditors: amounts fall ing du atr onyrar Dvlpmnt osts

Fixturs and fittings Gnralrsrv Nt urrnt assts

Profit and lss aount Stok Tansibl assts

Fixed Assetslntangible ssets( 1) . . . . . . . . . . . .Goodwill( 2) . . . . . . . . . . . .Land and buildings( 3) . . . . . . . . . . . .lnvestments

Shares n re|ated ompaniesLoans ore|ated ompaniesCurrent Assets(4 ) . . . . . . . . . . . .Raw materialsFinishedoodsDebtorsTradedebtors( 5) . . . . . . . . . . . .Cal|edup share apita| otpaidPrepaymentsCreditors: amountsfalling duewithin oneyearDebenturesBank overdraftsBiIIs f ehangepayable

(6 ) . . . . . . . . . . . .otal assets less urrent iabiIities(7 ) . . . . . . . . . . . .DebenturesBank oans

Capita!nd reserves( 8) . . . . . . . . . . . .Otherreserves:Capital edemption eserve(e). . . . . . . . . . . .(10) . . . . . . .

000's

18 040 220

60020 620

4, '10059 4.159 4,999

600800 1,400

1,200400500400 2,500

6005050 700

3,2008,1 9

100100 200

7.999

300599

6,000

8991, '1007,999

Sction5 Finncilsttmnts nd rtis


24/45

Stion5..FinncilSttmnts nd rtios

3 6 Valuationf stok

Complt th ollowingwords.

l Th firstgods whihom in ar th first to

lavth firm. (abbrviation)

2 Goods lavingth flrm ar th last whih

wr rivd.(abbrviation)

3 h valu of all th goods in stokis alulatd

as an avrag.

4 Th dirt osts of prodution (matrials,

labour and xpnss)giv thisfigur.

5 I astok itm wr sold, this is th mony

whih would b rivdaftr taking awa

th osts of disposal.

6 Th ostof gtting an itm to tak th pla

oa stok itm.

7 Th valu of itms whiha ompany is

produing at th momnt'

8 Itms whihar usd up whn produinggoods for sal.

9 Th main valuation mthod usd in alulating

th nput valu.

10 A rtailran rturn unsold goods to

th manufaturr whn thy ar supplid

on ths rms.

11 Th quantity of goods whihar availablfor sal.

Sction5..Finncilsttmnts nd rtis

37 GoodwillA Look at th followingdrawingswhih dpit diffrntmotivs for paying or

goodwill,thn fillin th aptions.(on is not a motiv!)Choos from thfollowing:

L___

A__ c___

P_- _ - C O S T

N T R- _L_- _ - _

vALU

R__L_- _M - N_ Cos

W _- - - I N- P _SS

M R__L-

H- S__R_- COST

a) Costs in rsarhand dvlopmntb) Th businssnjoysa monopoly

) rad marks and patnts

d) Skilldlabour for

A wll-knownnamNgativgoodwill

Loationof th prmiss

)0s)

ffil&'y"ffi=

S'tio5' Finnil sfurmntsd rtios Stion 5:Finncilsttemntsnd rtios


25/45

S tio5 . Finnil sfurmntsd rtios

B Goodwill may btratd n diffrnt was in th aounts.Fill in th missingwrds in thsntnsblow. Chos rom th followins:

aquird amortizd balan sht broughtratd liminatd rsrvs usful

In th mpany,s ooks:urhasd oodwillshouldnormallyb (l) immdiatlys anasst romth bookswhn t is (2)In som ompanis,t mayb appropiator purhasd oodwillo b(3 ) ........ ... a r yyar v r ts 4) .. .. .. .. . onomii.Goodwillwhihha sbn 5) . ... .. .. .within hompany nd no tbought'shouldnrvrr b(6) intoth booksat all.Whn hrs ngativoodwill,t should addd o th 1) ........ ' ,.............. ' ....nth 8) of th irm.

\|.'sE

Stion 5:Finncilsttemntsnd rtios

38 Aountingoliy

h fbllowingtrats ar takn rom Nots to th Aounts. Giv a mor lormalwod or phras for th words givn in brakts. hoos from th words in th bo atth sta(oah stion.

adjustmnts appliabl omplian onvntion stating

Basis of preparation of aounts

Th aounts hav bn prpard undr th historiost (nomal prati)(l ) .. . . .. . oSmodifidby th rvaluationof rtain i xdassts' n(agrmnt)2). . . . . . . . . . . . . . i th th provisions f th Companis Atl985and (fitting)(3) to UK Aounting Standards.

Th group aounts ar th rsult oth onsolidation o th aountso thompanyand its subsidiaris,with appropriat hangs) 4) . . . . . . .

Rationalization and losure osts

ontinud rationa|izationosts ar hargd bor(plaining) (5)th trading profit.Closur osts of major sitsar tratd as an traordinary itm.

arising stimatd xrss is nurrd pr annum

Depreiation

Dpriationn holduildings nd asholds ith mor han50yarsunxpirdis povidd n a straight-linasisat ,%each ar) 6) ... ..No dpriations providdon rholdand.Computrsand othrquipmnt rdpriatdn a straight-linasisovr hir gussd)7) .. ... ... ivsobtwnour and tnars.

Stion5: Finnilstltmnts nd rtiqs Sction5..FinncilSttemtsnd rtios


26/45

Stion5: Finnilstltmnts nd rtiqs

Goodwill

Goodwill(xisting) s) . . . . . . . .. .on aquisitions,bing th (xtra)

(9 ) . . . . . . . . . . . .. .of ost ovr th fair valu of th nrt assts quird, s hargd

against rsrvSn th yar of aquisition.

Rsarh nddvlpmntxpnditur

All rvnu xpnditurs hargd gainst roflts n thyar n whiht (happns)

00 ) . . . . . . . . .

Frignurrnis

Asstsand iabilitisn orignurrnisrxprrssdn strling t xhangats(givn)l l) .... . ..... t hbalanht at.

Pensions

ontributionsrmad opnsion hmso providor rtirmntnfitslatdto (forast)12) final salarisn rspt (today's)(13) ........ ..... taff, nd or post tirmntnrassn pnsions, ndar hargd o thprofitand ossaountas nurrd.

Dfrrd taation

Dfrrd taxation ariss (for) (l4) itms whr thr s a timing

diffrnbtwn thir tratmnt for aounting purposs and thir tratmnt or

taation purposs. Provisionsar mad at th appropriat rats for dfrrdtaation

to th xtnt that it is (thought) (15) th liabilityor asstwill aris

in th forsablutur.

39 Fundshoos th orrt answr n ah of th following:

l Funds ominginto a firmar known as. . . . . . . . . . . . . . of funds.a) springs b) sours ) origination d) inom

a) appliation b) dlgation ) disposal d) onsumption

a) working b) urrnt ) profit d) ash

4 Whnou tak awayurrnt iabilitis romurrntassts ou hav h amounto. . . . . . . . . . . . . . unds .a) liability b)workingpital ) asst d) flow

5 Finanial statmntsabout ash unds ar usuallyknown as..... tatmnts.

a) ash flow b) ashrsour ) ash outflow d) ash loss

a) sal of fixd asstb) drawings ) dpriation d) loan rpaymnt

7 An itmwhihnvolvslo woundss.............a) provisionor b) bookloss n ) salof fixd d) bolkprofiton

bad dbts saloffixdasst asst salofixdasst

8 Aftr making adjustmntsor tmswhih don'tnvolv h lowof funds thntprofit r os s s known s ...........a) gross rofit b) outflowofunds ) ashmovmnts d) total gnratd

rom oprations9 If a ompanyrdus hirstokand thnumbro dbtors,hywill

' . . . . ash.a) dlivr b) rlas ) disharg d) librat

s TI oN 6 : COSTI NG S,tion..osling


27/45

s TI oN 6 : COSTI NG

40 costsFill in thmissingwords n th trmsblow.Choos fromth following:

apportionmnt ntr onvrsion dirt fixdintgratd indirt intrloking lbour marginal

Dfinitin

Costswhiharr dirtlylatd o makinga produt(.g.matrials'abour andpnss).

Costsof hangingmatrialsnto produts.

Costswhih arnot ditllatd o makinga produt.g. nt, administrati on.

Thisouldb a loation, afuntion,a piofquipmntor a groupof mployswhryouanidntify and alloatosts or ontrolpurposs.

You dividth ommon ovrheadostsbtwn hvarious ativitiswhih us hmaording ohowmuh thy us.

Costs whih alwaysstay h sameven f thnumbr oitmsproduedhangs.

The ost ofpayingworkrs o mak thprodut.

Th ost of makinga singlxtra unitabov henumbralradyplanned.

You don'tsparat lnanial and ost aounting.

Sparat ost andfinanial aountswhiharronild omtims.

, g

4l Costanalysisak on word ronr h lt-handolumn and onromth right to omplt ah ofth followingsntns. S xampl):

finnil

prim

funtional

onsumabl

maximum

businss

arbitrar

manufaturing

ailitis

analysis

disins

pross

lt

prfit

matrials

ost

l Aountanyprvids ,.,4..d*Tfu.whih is usd o mak uturbusinss isions.

2 In ordr o sud, ompanymanagrsy to makbaus his s whr apitalgrowth omsrom.

3 Baus ountantsly on stimatsathr han truosts', hyoftnhv omak

4 '.'.....'... ...... r usdup n thmanufaturingross ut arno tpartof th inalprodut.

5 Allthdirt osts f manufaturins r frrdo as........

6 ovhads thostof providing .. whihyound oprodu goods.

7 Th managmntountanthouldundrstand h .. usdto maka produt n th atory.

8 Cost aountingss .. whih ooksat whr ahtransationomrsfrom.

2aJ

Trm

7

I

l0

Stion ostingStio6.. osting


28/45

Stion.. osting

42 StokontrolTh graph showsa firm'spattrn o nvntory ontrol. Look atth graph and

omplt th sntnsblowb hoosing th orrt figur(a ).

43 StokostsHrar 20 osts latd o holdingstok,obtainingtokandstokout.Didwhihostgroup hyblong o and writ hm n thappropriatolumnon thnxtpag. S ampls):

1 1001,000

900soK Bo0LVL 70oUN]s 600

500400300

200100

6 7 B I 't 0 1' l 12

lME_ WEEKS

1 3 1 4 1 5 1 6 1 7 1 8

a) 700units

b) 300units

) 900units

d) 100pr wk

) 6 wks

aountlngosts ai ronditioningfor warhous

traosts orurgnt urhass

loss ofustomrs

damag

dtrioration lnvntorosts

intrst n apitalinvstdn stok

lostsal pilfring

lossoustomrgoodwill

produtionstoppags

stors,nsuranand surity

transport osts

purhasing partmntosts

stors' unning osts

stting-uposts orprodutionun

toolingostsorintrnalordring

work-orrustrationagsorstors, staff

4 Thbuffrstok vl

Stin ..ostiltg S'tion6..osting


29/45

holdingstok

. p 9r*'.tff.stokout

obtining stok

'.p'qP9rt....w

6..osting

Costasertainment

Us th words in boldat th nd oah o th ollowingsntns o orma wordwhih fits in th blank spa. S xarnpl):

l hrrwillalways som n2Ic,1,1,r..i"alulatingprodut ostsomultiplproduts.

2 Yo und rdut osts o mak .............btwn oduts.

, ':::::-:::-:]]::j:uno thsals thmor

4 Prossostingooksat th of osts na dpartmnt vra priodof tim.

5 opratingostings th wayof alulatinghosto

th ....... . . .. o rvis.6 Matrialossswhih esult rom h naturof th oprating

mthodar usually

7 Losss ausd y nffiintprations r

8 h disposalof wastmight nur

9 Som ostsma yb ..... '.... .. .by th al f srap.

l0 Bookkrprsormallyon,tmak .'....... ' ' . . . btwnsrapand wast.

l l may bpossibl n somprodutswhihailhqualitontrol.

|2 Injobbingprodutionhr s ittlor no ..............ndsign romprviousords.

aurate

ompar

prfit

aumulate

provide

void

rvnt

epend

rover

distint

rtify

repeat

S i Sction: osting


30/45

Setion..

A Whihostbhaviour attrn s llustratdn ahof th graphs hown?

45 Marginalosting

smi-variablosts

urvi-linarariablosts

total ixdosts

mainlvariablosts

total inarvariablosts

mainlyflxdosts

stppd sts

OutPut)

Output--)

Whihgraphrprsntsh ollowingovrhad ost tms?

a) On suprvisors rquirdor ightworkrson th produtionloor,so thosts or suprvisors'alarisnraswithahightworkrrs.

b)Wastdispsal ostspr unitallas output iss howingan onomyof sal.

) Roaltisrpaidon ahunitprodud.

d)Th produtionmanagr ivs smallbasisalaryanda prntagommissionn ah tmprodud.

) hr s quartrly tandingharg or th lphon ndadditionalostsorahallmad.

)Thr s a standard harg or thmahinandnormalusagbut usag bov h agrd olumnrass r unit.

g)h rnt or thbuildingsmainshsamwhthr utput

inrassr drass.

sIoN 7: PLANNINGAN D CONTROL Stion7'.Plnningd otrol


31/45

46 Corporatrlanning

Th proessof dvlopinga oporatplangoes hroughseveral tages. ut th tms(a_i)blow nth orrtplaon thr orporatplan.

a) Stting oporatpoisnd didingaboutwhr h organationwantsto goin trms ofprforman nd rsults.

b) Idntifyingopportunitiesand thrats and analyzingthe majorstrngthsandwaknsssf th organization.

) Prparingationplansand stting argts ordiffrntdpartmnts.

d) Analyzingprodutionfailitirsand prsonnlurrntlyat workand analyzingurrnt radingativitis.

) Agreingon thstratgis hihth organizationwilladopt.

) Considringhepetations f th mploys,h ustomrs nd the

sharholdrs.g) Assssingpossibleuturationsof ompetitorsand studyingonomiorasts

and soialtrnds.

h) Rviwingh onomi,politialand soial atorswhihaafftinghorganation.

i) Considringaltnativtratgies.

DVLOPII\GA CORPORATPLAN

ssessmntStg:

. xtrnal nvironmnt

. organization

. utur

. stakholdrs,ptations

objectiv St{lg

pprisI stg (sWoT)

Iution Stg

Strtegic pln

opertionI plnning

nalzingraw matrials, skilldlabourand othr rsourswhihth organizaI"ionan us nd ) . . . . .

2 ) . . . . .

3 ) . . . . .

4) . . . .

s) ....

6) . . . .

7 ) . . . .

8 ) . . . . .

e) . . . .

Stion7..Plnnin nd ,ontrol Stin 7..Plningnd r'otro|

B d i


32/45

,I PlanningnformationIRarrangh tts o ormh orrtword orahof th ol lowing:

1 Whrustomrs mand owpris' mplospt igh wagsndsharholdrsan thighdividnds'hr s a ........ ...... fi............... . ( f l tonio trinst)

,:T::::::"::]::

-1;;ljly bithrrdution,arktrprofit

3 A businssannotstand till,t mustithrgrowor dlin ndso a ntash lowinrass hgrowthrgtta)'.... '.........

4 orporatplanningmustplansvral arsahad o(onglgrnraastforinge)1 . . . . . . . . . . . . . . . r. . . . . . . . . . . . . . . f . . . . . . . . . . . . . . . i sa major ar t forporat lanning.

5 anagrs s odmngill).......... .... o prdithutur ndrdiffrnt onditions.

6 Wsomtims imilarhangsvry ou fiv or siyars; his s known as a( l i a lyt tarn). . . . . . . . . . . . . . p. . . ' . . . . . . . . . .

7 Whnmvmntsn an organizationollowa similapattrn o othrvnts hyshow torrionl)..........

8 To form a orporatoli, orporat lanningooks at vryaspt ompany

::::::: :: : ::::]: :iownas a (talto pont)...............

9 Changsn th populationstruturor agprofilsof ustomrsar amplsof(graphmodi)........ ......nformation.

l0 Inormationboutonmi onditionswill inludorastsor growth,GDPan d ionintf la)........

48 BudgtingFillin th missingwords n th sntnslowby makingombinationswiththword.budgt'.Choos romth ollowing. Sampl):

approprtatton ash ommitt urrnt fidfurrtional mastr ofir priod prinipal slling

l Nt yar,sudgt s bingprpard th rdg 2. ovrrth nt wwks.

2 Thsalsmanagr as o givhis budgt stimato th....... y tomorrowmorning o hath anhkt bforhmtins

ntwk.

3 Formost onrpanish '......,. .......s a yar ut du o thrapidlyhanging aturof th ashionndustry hyprpar hirbudgt vrourmonths.

4 hr s a limitt thamountomonywhihmab spnton rsarh nddvlopmnt.o an ........... ....... asbn rpad.'':::::::.:::::::":]:::',1.'flH;1;l]i],l"".'..

6 In ordr ohavan fftivmanagmntontrolsystm,Wprparfora shortpriodotim.

7 Thmarktdmand s or900,000 nits'but thisting lant'whihs onlyapabl produing500,000 nits, s th fator.

' ':.:*:-:::::.::i::-:::.::o]"'o* intotn rritoris,ahwith ts ow

9 Salsmn'salaris'nt or sals fis,dvrtisingnd publiityar somo hitmsnluddn th

0 In ordr o maksur hat hrwillb nough ash availablo mtdmandsandprovid dditionalinan quird' ........... ....'..mustb prpard.

''^::::::::1.:::l:J:il:1THjH:"*1i..n.inal.'....'

Sctiott 7..Plnning nd ontrol

\ i Stion 7..Plnningnd control

T l h i


33/45

/|o \ariansa,A Dlt hwrongword n itlicsn th ollowing wo sntns.

1 Th diffrntwn h budgtd nd atualrsults s lvrs.|vourblwhnprofitsar highr.

2 Thdiffrn twn h budgtd nd atualrsults s dversfvourb|whnprofits arowr.

B In th ollowingituationsid hvariansr avourablF)or advrsA).

l Thrhundrd onnsof matrialswrusdat a prieof $45pr tonn.Th standardpri s$47pr tonn.

2 Th ompanyboughtsalt at standardpribut th prossusdmor han plannd.

3 h workrswokdhardr han xptd uringth arandprodutionnrasd.

4 h budgtd xpnditurn ovrhadwas 50,000.Th atualovrhadwas 65'000.

5 Th hmialssd n thprosswrusd n diffrrntproportionsfromth standardmix andth otalpriwas owr.

6 on mmro hmanuaturingamwasaway romworkwithoutwagsbut th tamworkdquallywllwithouthim.

Math ah of th situations (1-6) abovwith th orrt varian(a-f) blow.

a) ovrhad pnditurvarian

b) matrialusag arlan

) matrialprivarian

d) matrialsmi vrian

) aboumixturvarian

fl labour ffiincyarian

50 TlephoningFill inth missingwords in th tlphondialogu blow.Choos rom th following:

Can I suggst I'd also ik Whatw nrd s Firstof all

anyou t m hav nams W an arrang Howan I hlpyou

I look orwardo That's isht

Blum: John Blum.

Brg: Hllo.l) ...... .. ....... ndrsBrg. 'm anaging irtor fWoodth td' a woodmahinrmanufaturr.

Blum: Oh ,ys. 2) ' . ' ' . ' . . . . . . . . . . . .

Brg: Wll,an assoiatn th ndustry ommnddou.You hlpd aisfinanor BillWylda w arsago.

Blum: Ys. 3)

Brg: Wll,Woodth tdnowwants o xpand ntonwmaktswitha nwprodut.Up tillnowWhav rvd pialistsn th wood ndustrybutour nWprodut s aimdat th small manufaturr.(4) . . . . . . . . . . . . . . . . . .inan.

Blum: Right! 5).. . ....... ,ll nd ombakgroundnormation.(6 ) .......... ....... opyof ourbalanht ndprofit nd ossfigursor th past thryars?

Stion7 . Plningnd ontrol

C t lStion 7..Plnning nd ontrol


34/45

Brg:

Blum:

Brg:

Blum:

Brg:

Blum:

Brg:

Blum:

Brg:

of ours.

(7 ) .. , . .. '...... ttr utliningour das nda ash lo wforast or thnwprodut'

Fin.

If you tm hav hs y th bginning fnxtwk,(8) . .. ...'..' mtingor hwkatr. ha t willgivmnough im o look throughh lgurs.

Good. 9) .......... . . . ' . ' . mtingn Monday16th t9 'lok?

That's in. l0) .. ivingour ttr nd aountsin thnt fwdays.

I'llpost hm ist hing omorrow.look forward omting ou ononday16th.

Goodby.

Goodb

51 Controlomplth ,llowingords.

l histypof aountings usd o mrasurhowfftivmanagr's isionas bn.

2 his s th irstof , hr tps n a formalontrolsstm.

3 his s th sond hr tps n a ormalontrolsystmwhr h objtivsrr put ntoation.

4 h ast of thr tps n a flormalontrolsystmwhr h sults rstudid.

5 hismans orrt nd ontainingno mistaks.

6 A diffrno th xptrd tandard.

7 To giv sponsibilityo othrpopln thorganizationathr han do ityourslf.

8 Thiskindof sstm ptshat standards an bhangd nd adjustd s nssary.

9 Produtsdo this hy ah h quird uality.

l0 bhangor rst tandads.

l l hisdataallowsyou to omparaltrnativs.

l2 hissystmworks owards n dalstandard.

l3 At prsnt, t th momrnt, oday.

l4 onlyinformationhihs mportant nd signifiant.

t5 An instrumntwhih ats o rtain onditionsand providsnformation.

l6 To hang, ltror adapt.

R_S__ _ S_ B__

s _ _ T _ _ G

oP____r_G

F_ _ _BA_ _

A- - _ - -

v- -_ -N-

o___ Loo__--o--R_ V _ _

_ _ P_ _ - _ l _ -

- -_-D-Loo D

c _ _ _ _ N _

R_ _ _ V _ _ T

D

s__s__M - ._ _F _

s TI oN 8 : DCI SI ON AKI NG

Performane

Ill

Stion8.'Dcisionmkig

B k l i


35/45

52 PerformaneA ath thfollowingphrasalvrbswith the orrt maning.Sxampl):

a) arrang/display

3 go over to4 put forward5 bing n6 getout of7 st out8 to mak out9 bring about

) undrstandd) aus o happn) avoid)nountrg)hangrh) submiti) arn

B Fill in th missingphrasalvrbs n th srntns low.Choosfrom th ist

(1-9)abov.1 Th inas n raw materialpriswill......... a rdution nprofits.

2 Th ontrat o reflt hruis inerwill .......muhndd vnue.

3 Inlud all thrlvant igurson thprformanport andthnit .........'... larly or sniormanagmnt.

4 h ompanyhav........ problms f stting alisti udgtsausthy hava poor aountingsystm.

5 Th dpartmntmanagrs av o ........'... thirbudgts y th nd of

this wk.6 Baus inompltords,t is mpossi bl o ............ howth inal

figurswralulated.

7 lt's amazingwhat ome irmswilldo to ............ paying orporat a.

8 Profits ovrth ast threyarshav nrasd tadilyand th irm hasdidd o....... ith th pansion fth businss.

9 Bausof largvariansbtwn h budgtd nd atualosts, hyshould....... diffrntmthodof alulating hvarian'

53 Break.vnnalysis

Whatdo th ins andb ingraphA rprsnt?

a ) - __ - _ - _ b )S - _ __

What s point alld? )_ _ POINT

Whatdo arasd ande rprsnt?

d ) _ _ - - _

2 What sara/in graphB knownas?M_____oF s

3 Howmuhar idpnsrsprr annum n graphA?

4 Howmuhar h idxpenssn B?5 Whih graphs a basiprofitgraph?

5'000 0'0005,0000,0005,0000'000GraphA

Sctin 8..Disin nkig

P i h lt


36/45

54 Presntinghe sults

Look at th ollowingdrawings,thn fillin th missingwords. Choos rom

th ollowing:

a) Yuar quird ) I stronglommnd

b) In othrwrds 0 hrSmso b

) In myopiniorr 8) H is supportdy

d) l'd prr h) Lt m ust larify

2++-!.9-6

@@

.Thisis th brak-vnoint........ 'llbsin omak

profit t 30.000 nits.'

@LAtsoiJB@$s. ovRtlAD6

tABlA}

... ' ... smallmistakin thalulation.'

@tzoo,oootB|=ts/s.v

TheLow

_-l*MAttActNc*l.l DlREoRlsoK|_osolaim.

l | ANA6I.4N A0JNAN

ontinuoustok-takathr han heprsnt ystm doingan annual

stok-tak.'

Stion8..Disiomkig

P i iStion8.' Decisionmking

Confusingords


37/45

55 PriingFillin th missingwords n th sntnslow. hoos romth ollowing:

1 For somrproduts, uhas prfum, pnsivnd attrativ akagingan

inrash.......... .... or hm.

2 Mostbusinsssr n mptitionwithothrompaniswhomanufatur

similarroduts r ............

3 A manufaturrhouldirst okat hpris tby hi s ..........

bfor stshisownpris.4 Whnprparingnformationor priingdisions,h aountantshouldb

awarof markt

5 If sals prsntativsrworkingn a vryomptitivmarkt, hshould

prhaps tpris t hirown ........

,]::i:.:::::::::::::::onfidntial

thrwillb no hoin th

7 Govrnmnt rgulatsh pris or rtainproduts.

8 Th maximumand minimumpriswhihan b st or a produtar knownas

th pri and pri rsptivl.

, '::::::::"::'":ffi:J:J::.?.."'ost

of produt,sstmf

l0 A pri ...... .......s a produtwhihal lothr ompanis athwhn

sttinghirpris.

l l Th o f d m a nds hows how ons um r s wi l l r a t wh np r i sar altrd.

56 Confusingords

hoos horrtword n aho h ollowingntns.

l W'rsttingall th prisornt earpt pt h nw rangrwhih won'tb rd or anothrr hrmonths.

2 ano:ummbrremindhimto bring h omparativosts.

3 Atr th onfusionovr h bank transati on,hyhavagrd olivwvehargs.

4 Ths wo ompanishavbn n :ollisionollusionwith ahothr to fixpris.

5 W shouldusan ltrntivltrnt riingstruturo th onr wr uSnow.

6 W'vhad an offiiousoffiil|etter o tll us about thhangsnxport gulations.

7 Whn didingon nrw prisyoumustn't ossight site ofmarkt bhaviour.

8 Onthyhavagrd h igursw anprecd procedwith th osting.

9 Plas nsurensur hat onlyth most rnt igursar nludd nth alulations.

Whn wr ar stting standards w allow 10Yn or dint ldtiv goods'

hr must b a mistak in th alulations somwhr.Ths figursar ust notcrdibl l rditble.

Th ash budgt must tak ssonll ssonblvariations into onsidration.

Th onsultant is bing pros:utdpersutd for ta vasion.

Th managmnt havr now diddwhat msuremntsmeSurSto tak toinras produtivity.

l 0

l l

t2

l 3

t 4

bhaviour iling omptitors dmand disrtionlastiit

floor fullost ladr lgislation makor buy substituts

S,tin.'Disionmki

InvstmntSti8.. D,isionmking

EO D i i


38/45

57 Invstmnth sam word is missingin ah o thfollowing stsof thr sntns. hoos

from thfollowing:

apital arnings forasts pay.bak rrturn

( l ). Th stimatd .. . . . . . otrntial is vry mportnt whnyou a hoosingn

invstmntprojt.. his projtwillyild ....... f800,000ovrfivyars.. h amount f monyan mployrivs, nd th mon gnratd iom an

invstmnt rojrtar both knownas . ' . . . . . ' . ' . .

(2 \. Thwant o know hxptd.......... on nvstmnt.. Somprojts il lb rjtdaushydo not yilda high atof. h ....... n an nvstmnts thprofit ougt rom t.

(3 ). Th ....... pnditurn th antn' ports ntr nd staff oomwill

bnfithwholompany.. In tnyarswshouldb abl orovr h ......... invstd.. h totalanrount f ronwhih s nvstd th ownrsof a mpans known

s . . . . . . . . . . . .

(4 \. What s th ....... riodo his nvstnrntikly ob?. Thy.llhav o bprpardo wait ongr or a .....'.. rom hisnvstmnt.. Rovringh osts an nvstmnts knownas ... '.. ' ....

(s ). . . . . . . . . . . . . . . outunflationatshav not bn akn nto onsidation.. Th atual onomili o thassts urnd out t b longr than th

original. Statmnts bout what s xptd n th futur ar . . . . . . . . . .

EO DeisionsJOomplth llowingwordsbyhosing n appropriat rfix.Smprfixsmayb usdmor han on.) hos romth ollowins:

l Lowdmand or thirprodutshasmdprodution ry .... profitabl.

2 Wdon'thava dtaild ostanalsist' so th managmrnt rr '.... diddabot utur nvstmnt.

3 Yumustmakvrything rylarnow ordrto avoidanv..... undrstandingsatr'

4 FourSasons td has bn .... sussfuln marktinghnwprodut.

5 Sin.... rgulation,lephonompanis avbnabl o st hirownpris.

6 Thompanwouldb mor profitablthyouldrdu hamounto..... usd apaity.

7 Thyhavediddo ..... ontinuhprodutionof ProdutP baus alshav alln.

Thyhavhangd h waythmasurprofitas absorptionostingis ..... dquat.

Th managmnthinkthat hpoliyof xpandingalss ..... orrt.

Prisor rawmatrialsate .... normallyhighat thmomnt.hy '... stimatdhfft f thomptitor'srodutson sals n thismarkt tor'

Th rport howd hat moving hprodutiono a nwsitwas .... dsirabl.

An inrasn th priof andwas otally..... ptd.

Lotsof th doumntatio nhihwas ost n th ir s....' rplaabl.

9

l 0l l

t2

l 3

l 4i


39/45

16 abort 7 b) aging Tst17

r--l! r

I It ll lI l

d", ip .vI t

,:\ (\ Bl

you for advi. I trust that you will find thse


40/45

SCTIoN2:FUNDANTALsOF FINANCIALACoUNTINGTest 10

1 bnk hqul l rossing2 pying-in slip

10 ountrfoil4 drawr6 py5 hqunumbr

72 dateofdposit7 aountnumbr3 bank statment8 bank ovrdraft9 balan

Tst 111 pttyash2 hargs3 transation4 brought' aid5 disrpanis6 stopped7 ontra8 lad9 spimn

l0 urrnt,dposit

Tst 12l invoi2 tax point (yalso b nvoi

dat.)3 dspathdat4 dsription5 quantity6 unit pi7 amount (Somtimsalld

valu ortotal.)8 trad disunt9 valu addd tax

l0 terms

Tst 13l d) salsday book(Alsoknown

as salsournal.)2 ) trad disount3 a) rturns4 b ) rditontrol5 a) bad dbts6 d) provision

) g g8 a) exmpt9 ) rturn

Tst 14ror of omission(3)ror of ommission(9)error f prinipl(4)ompnsatingerror(2)rorof originalntry (6)rvrsalofntis(7)jounal(5)an undrastaunt( )an ovrastaount(8)

Tst 15l )2 )3 i )4 h )s06 i )'7e)8 )9 a )

l0 d)

Tst 11 ordiny2 xtraordinary3 tunovr4 dividnd5 distribution6 ostofsles7 administrativxpnses8 rtaind

Tst20A

l b )2 D3 )4 a )s i )

6 )7 h )8 i )e d )lo e)

Tst 18l stok-tak2 publish,formats3 intnal4 dislosd5 drivd6 appndd7 apportion8 rmunration9 aru

l0 dfrrdl l emolumnts

S T I O N 3: B U S I N S SORGANIZATION

Tst 19l h) dnturs2 ) patnership3 fl dirtrs4 j) holdingompany5 g) privat imitd6 d) stok hang7 i)publi limitd8 ) non-profit-making9 a) subsidiary

l0 k) annualgnalmting1l b)group

Noun Vrbfraud dfraud

dit/dption div

pilring pilfr

Wastag wast

misappropriation mlsapproPnatr

breakag brak

rgry forg

falsifiation falsif

rror rr

mbzzlmnt emzz|e

l wastag2 pilfr3 embzzl4 falsiy5 misappropriation6 rror7 forgry

Tst 21l dnomination2 pfn3 ordinary4 bonus5 nominal, ssud6 prliminary7 unalld8 rdmabl9 appropriation

l0 intrim

Tt22I issued2 appliation3 all4 sond5 ovrsubsribd

6 appliations7 rfund8 'allotmnt9 ss

l0 allotmntI I first12 forfitdl3 eissudl4 nominal

Tst 231 b) imitd2 a) dd3 a) mplied4 d) flutuating5 ) slping6 d) dissolution7 b) Ralisation8 a) dishargd9 ) ndbtdnss

Test requstbr dvie'' , l l, 3, l0, lrpl..,2,8,7 12 , , 6

Dar s SimoneWo frinds and mslf hav

disussdsttingup a partn-ship and w ar now writingto

So far we havagrd tht Fodwill givf20,000as apitalbut willnot takpart in th run-ning of th businss.r. Grntwill manag th businss butontributonly13,000.r Blestwill providf8,000 as apitaland assist n th businss f andwhenrquird.

W now nd finanialadviabout th strutuof th part-nrshipand wouldb gratful fyou would assist us. W havplannd our nxtmting or 2lFbruary,and wouldlik to dis-ussyour idas hn.

W look forward to harinsfrom you.Yours sinrly

)rl.n VzrJan Blst

Dar r BlstThank youfo our lttr of

26 Januarrgarding th setting

up of a partnrship.I am nowwiting to giv you my firstthoughtswhihou may Want odisuss urthr.

First oall, I suggest that as Ford is not ging to binvolvd in th daily manage-mnt of th partnrship h bmad a limitd partnr. Thismansthat his liabilityis limitdto th amount of apital invst-ed by him.H an ive fixdamount of intrston his invst-mnt or an amount basdon thprofits.I l hat r Gant, asth manging partnr,and rBlst who will be ativlyinvolvd,should rivsalarisfothir work.

Tuning to profit sharing, Ithink it would b bst orahof the partnrs to reivntr-st on their apital invstmntand thn deid how to sharth rmaining profits.

Finally,th awdos not rquiryou to draw up a |ega| dd ofpartnrship but I think youshouldhava wittnagrmnt.

ypoints usful. f youwishto dis-uss anything furthr plaseltm know.Yours sinly

2tta;tle-'CamillaSimon

Tst25l )2 ) d )4 r )5 a )6 h )7 e )8 c )

S C T I O N4 :FI NA NCIA LACoUNING

Tst26l wekl2 mploys3 ddution4 rlif5 unmploymnt,tiremnt6 ontributions7 ddutibl8 non.ontributory9 statutory

l0 ntitlmntl l inmntal12 widths

est 27lttr : 6,2, |0Ittr ..5, 9, 7 lttr : 8,4, I

Dar Mr Pndrgast

W noti from our filsthatyour 1997 Inom ax rturnhas not bnompltdyt.

W would like to omplete itand would b gatful if youould lt us have the dtails ofdividnds rivd from yourUK shaholdings or th yarndd5 Apitl997.Yours sinrly

.l -4a-IV',Y,IW,d. D. Tippet ,h ipptPartnrship

Dar Sir/adam Tst29 S CT I ON5:FINAN IALTATMNTS

2 LIFO (last n, first out)3 A r g ost

6 ) dpriation7 ) l ffi d t

toolingosts o ntenalordring

l I l

1 lI rI 1l 1

q dpI ' , ,

r ll l


41/45

on bhalf of Collins ntr-priss Ltd w nlosa opy ofth flnanial aounts for thyar ndd 30 November |99,7togthrwitha opoour Cor.poration Tax ComPutation.

W also nlos th Copora-tion Tax Rtun and trust thatyou willb abl to agrour fig-urs n du ours.

YoursfithfullytfN{M. D.Tippt ITh Tippt Partnrshipn.

Dar Ms PostW hav rntly rived a

opy of your l997198ax assss-mnt. As this is inorrt whav odgd a Noti of Appal.

W would rommnd thatyou mak paymnts on aountof L2,345on I JanuarY1998andf2,46 on 1 July to avoidintr-st hargs.Yours sinrly,1:p,M. D. Tippt lTh Tippt Partnship

Tst28l d) fulfor thvans:this

hangesand is a osttth businss.

2 b) thft: triorations agradual oss n valu.ThftiS otal.

3 b) onsumption:obsoltmahinsstillxistbutonsumdmatrialsar

usd up.4 a) motgags:mortizationrfrsto intangiblassts,a mortgag s a liability.

5 b) buildings:dpltd tmsbomesmallr'

6 d) markt valu:th prieanasst ouldb soldfortodaY.

7 ) rvalud:givna nwsti-mat of its valu.

8 b) salsaount: rordssalsof goodspodudbv th firm.not assts.

l wrotoff2 stout3 arry on4 slloff5 st asid6 turnd out7 look up8 go ovr9 losoff

l0 drawup

1l athon

12 larup

Tst 30l d )2 h )304 a )sD6 )7 k )8 )e D

10 m)1l i )12 n)

1 e)14 b)

Tst 3ll diffrnbtwn2 referto3 insiston4 in linwith5 rason for6 rsponsiblfor7 blam for8 agrwith9 suspiiousof

l0 ausdby

Tst 32l e )2 )3D4Ds i )6 a )7 e )8 )e h )

l0 d)

FINANIALsTATMNTSAN DRATIOSTst33

I mark-up2 margin3 ommission4 intrprt5 liquidity6 stokturn7 salsmix

8 turnov9 solvnyl0 garingl1 yild12 fixd13 variabl14 trnd

Tst 34A

l b )2 d )3 )4 a )5 )

Burntatio (b)priarningsratio ()fixdassts/ntworth (a)asst/sals )aid tst ratio (b)grossprofit/sls(d)dividndovrfor rdinaryshars ()borrowing/ntworth (a)olltionpriod fordbtors()nt profit aftr tax/sales d)

Tst35l Dvelopmntosts

2 Tangiblassts3 Fixturs and fittings4 Stok5 Amounts owdby rlatd

ompanis6 Nt urrnt assts7 Creditors: amounts falling

du afton ya8 Calldup sharapital9 Gnralrserv

l0 Profitand lossaount

Tst 36l FIFO (fist n, firstout)

3 Av rag ost4 Primost5 Nt ralizabl valu6 rplaemntost7 work-in-progrss8 raw matrials9 historiost

l0 sale or rturnl 1 stok lvl

Tst 37A

l )2 )3 d )4 c )s c )6 a )7 f )

B1 liminatd2 aquird3 amortizd4 usful5 ratd

6 brought7 rsrvs8 balansht

Tst38l onvntion2 omplian3 appliabl4 adjustmnts5 stating

6 pr annum7 stimatd8 arising9 exss

l0 is nurrd

I I ruling12 projtedl3 xisting14 in rsptof15 onsidrd

Test 39l b) sours2 a) appliation3 d) ash4 b) wokingapital5 a) ash flow

7 ) saleoffixd asset8 d) total gnratd rom or.

atins9 b) releas

sCIoN 6: CoSTING

stokoutprodution stoppagsloss ofustomrgoodwilltra osts forugntpurhasslost salwok-fo frustrationlossof ustomrs

Tst 44l inauray2 omparison3 profitabl4 aumulation5 povision6 unavoidabl7 prvntabl8 xpenditur9 rovrabl/rovrd

l0 distintionl l rtifiationl2 rptition

Tst 45A

1 total linearvariablosts

2 tota| fixdosts3 stppd osts4 smi-variablosts5 mainly vriabl osts6 mainly fixd osts7 urvi-linar variablosts

Ba ) b) '7 ) ld )se ) 4062

SCTION 7 :PLANNINGAND CONTROL

l ll ll 1l tI lI ll ll lI ll lI lI tl ll lI ll ll ll ll lI lI tl ll lI Il ll lI Il lI lI Il ll tI Il ll lI ll lI rI t1 ll lI It li lt lt ll ll lI Il l

l lI It ll lt lt ll lI Il tl ll lI I1 tl lI I1 ll ll tl ll ll ll rI Il ll lI I1 rl rl rl lI Il rl ll ll rl ll ll ll lt ll ll ll ll ll iI II Il ll ll ll ll ll , Il lI Ia ll l

i I

Test 401 dirt2 onvrsion

3 indiret4 ntre5 apportionmnt6 fixd7 labour8 marginal9 intgatd

l0 intrloking

Test 41l finanial data2 maimum profit3 arbitrary disions4 onsumablmatrials5 primost6 businss ailitis7 manufaturingpross8 funtionalanalysis

Tt42l d) 00prwk2 ) 6 wks3 a) 700 units4 b) 300 units5 ) 900 units

Tst 43holding stokwags or stors' staffinvntoryostsstors' nsuranand surity

pilfringintrst on apital invstd instokair onditioningfor warhousdtrioration Tst 46damag l h)storrs'running osts 2 d)

3 g )btainingstok 4 Dtransportosts 5 a)stting.up osts for podution 6 b)run 7 i)aountingosts 8 )purhasingdpatmntosts 9 )

Tst 47l onflitof intrst

l0 I look forwad o 4 f4,0005 Graph B

{* 7 ri.rontinu8 ladquat


42/45

l onflitof intrst2 ointd3 targt4 long rangforasting5 modlling6 ylialpattn7 orrlation8 total onpt9 dmographi

l0 inflation

Tst 48l budgt ommitt2 budgt offir3 budgt priod4 appropriation budget5 fid budgt6 urntbudget7 prinipalbudgt8 funtionaludgt9 sllingbudgt

l0 ashbudgtl1 mastr budgt

Test 49A

I favourable2 advrs

B1 F2 ^3 F4 ^5 F6 F

Ca) 4b ) 2 ) ld ) s ) 60 3

Tst 50l y nams2 Howan I hlpyou3 Thatright4 What wnd s5 First of all6 an you let m have7 Id also ik8 w an arrang9 Can I suggst

Tst51l rsponsibility2 stting3 oprating4 fdbak5 aurat6 varian7 dlgat8 opn.loopd9 onform

l0 rvis1l omparativl2 losd-loopd13 urrnt14 rlvant15 snsor16 modify

S C T I O N 8 :D I s I o N A K I N G

5 Graph B

st54l a) You arrquired to2 ) Thr smso b3 h ) Lt must larify4 b) In othwords5 ) I stronglyrommnd6 ) In myopinion7 g) H is supportdby8 d)Idpf

Tst 55l dmand2 substituts3 omptitos4 bhaviour5 distion6 make or buy7 lgislation8 iling,loor9 full ost

l0 ladrl l lastiity

Tst 56

1 xpt2 rmind3 waiv4 ollusion5 altrnativ6 offiial7 sight8 proed9 nsur

10 dfetivl1 rdibll2 sasonal13 prosutd14 masurs

Tst 571 earnings2 rturn3 apital4 pay-bak5 forasts

Tst 58l profltabl2 undecided3 zt.sundrstandings4 sussful5 dergulation6 zusd

Tst 52A

l go ahad2 run into3 go ovr to4 put foward5 bing n6 gt out of7 st out

8 makout9 bring about

b) proedQnountrg) hangh) submiti) an) avoida) arrang/

display) undrstandd) aus to

happn

BI bring about2 bring n3 st out4 run into

5 put forward6 mak out7 gt out of8 go ahad9 go ovr to

Tt 531 a) total ost

b) sals) brak-evn ointd) oss) profit

2 f)|vIarg1nofsafty3 ,000'000

8 ladquat9 icorrect

l0 abnormallyl l lidrstimatdl2 dsirabll 3 ptdl4 r7rpIabl

WordList


43/45

Wo dList

Thnumbrs Jtr hn|ris r th tsts n l'hir,h h lr'

AabnormalI,58ass,

aount,aountfol 5aontnumbr, 0aount n)' 4aountany,4aountant'aounting'43ounting(adil' aaounts n),4aru' 8aumulation,44aurat.5laquird, 7aquisitin'addition,2addss,adjustmnt' 8administrativpnss, 6aging hdul'3agree,25agrwith,3lallotmnt,22altrnativ, 6amortization,28amortize,.7amount, 2annualgnalmting, 9annum,38appnd, 8appliabl,38appliation,22, 39

apportion, 8appaisl,46appopiation,2lappropriationbudgt,48arbitrarydisions,1aris,38Artilsof Assoiation,0assssmnt,46assts,at,7auditassignmnt' 0audit(n),3auditor, 0avg.

avrag ost. 36

B

ba ddbt, 3balan,. l 0balan ht' , 37bankhqu,0bankovrdaft. 0bankstatmnt.0basipofit'53bhaviour,55btwn,blamo3lbonus.2lbook valu,25brak,20brakag,20brak-vn oint,53bringabout,52bring n,52brought forward,I Ibudgt'3budgt ommitt,48budgtoffi, 8budgtpriod,48buffrstok, 42businss ailitis'4,7b allaounts,

a||,22alldup shar apital,35apital,3, 57

rriag,arridforward, larr on,29ashbudgt, 8ash lo39ash funds'39th n,29ausdby, 3lC D , 8iling, 5hags, lhqu umb 0liy, 4larup, 29

lard, llosoff,29losd' l

llusion,56mmission,33ompaativ,lomparison,44ompnsatlngerro l4omptito55mplian,38omplianst, 0onflitof ntst, 7onform,51onsutiv umbrs,30onsidr,38onsolidatdaonts,25onsumablmatrials' lontinuous udit, 30ontra, lontributiorr,6onvntion' 8orrlation,47orroboat,0ost apportionmnt,0ostntr, 0ostofsals, 6ostS

onvsion,40urvi-lina5dirt'40fid, 40,45indit,40labou40marginal,40

snri-variabl, 5stppd, 5total fid,45total Iina ai abl, 5variabl,45

ountrfoil,0create,37rdibI, 6ditontrol, l 3rditolossing'0urrnt, , 5lurnt ssts, 5urrntbudget' 8


44/45

rlvant, l Sour' 9 undsiabl,58rel,ief26 spimn, l undo, 9

i ' 6 bl


45/45

rmainonstant' 6 stabl, unmploymntbnfit, 6mind,56 stakhold46 unptd, 8rmunration, 8 stt, 8 unitpri,12rord eve|,42 statistial ampling,30 unpofitabl, 8rordr uantit,42 statutory,26 unsussul.8rpetition' 4 sttutor udit, 30 unusd, 8rplamntost,36 stok, , 35 urgnt,43rquird o, 54 stokhang,19 usful.37rsarh nd dvlopmnt,37 stok vl,36rsvs,37 stok-tk, 8 v

rsponsibility,l stokturn, vlrr ddd ax. 12rsponsiblo 3l stoppd' l variabl, 3rtainposition,6 statgi lan,46 varian,49, ltind, 6 subsidiary' 9 advrs,49rtimnt nsion, 6 substantivst, 0 favourabl.49rtriv'9 substitut, 5 labourffliny,49rturn, 3, 57 subtration, \abourmitur,49rturn(n). 13 suff6 matrialpri,49vrsal fntris, 4 supportd '54 matrialusag' 9rvis, l suspiious f, 3l matrialsmix,49is.6 SWo, 46 ovrhadxpnditur, 9rokt.6ul ,38 Wun nto,52 tak ntoaount, wiv'56runningosts, 3 tak-ovr id,25 walkthrough st'30

tngibl ssts, 5 warhous,3s target,47 wastag, 0salor turn, 6 t point,12 wast, 0sals, 3 tming nd ading'30 wkly,26sales aybook' l tlphon' width'26salsmix.33 trms, 2 window.8sav, th ms o b, 54 withdrawal.srn. to' 7 work-in-progrss,6srll,9 toolbar,8 work-Ibr.43sasonal' 6 toling,43 working apital,39sond, 2 totalonpt, 7 writ off,29sr.rity,3 total ost, 53sllofl 29 total gnratd iom opations, Yslling udgt, 8 39 vild.33snsor, l traddisount,12, st asid,29 trad maks,37

st out, 29, 52 transation' lstting, l transpot,43stting-up,43 trnd,33shar, triaibalan'show ntrst, 5 tunout. 29shrink, turnov 6,33sight,56skilld abour force',7 Uslepingpartner'23 unvoidbl,44slow down, 6 unalld, lslump,6 undidd. 8soar,6 underast, 4solvny,33 undrstimat. 8

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