1. TASK: Insert the appropriate word in the text below:
Account – carry forward – close – drawing – zero
referred to as – respective – temporary – throughout
Permanent and Temporary Accounts
Asset, liability, and most owner/stockholder equity accounts are ___________"permanent accounts" (or "real accounts"). Permanent accounts are not ___________at the end of the accounting year; their balances are automatically ___________ __________ to the next accounting year.
"Temporary accounts" (or "nominal accounts") include all of the ___________ accounts, expense accounts, the owner ___________ account, and the income summary account. Generally speaking, the balances in temporary accounts increase ___________ the accounting year and are "zeroed out" and closed at the end of the accounting year.
Balances in the revenue and expense accounts are ___________ out by closing/transferring/clearing their balances to the Income Summary account.
Because the balances in the ___________ accounts are transferred out of their ___________ accounts at the end of the accounting year, each temporary account will have a zero balance when the next accounting year begins. This means that the new accounting year starts with no revenue amounts, no expense amounts, and no amount in the drawing ___________.
2. CHECK YOUR SPEAKING
|
account |
[ əˈkaʊnt ] |
рахунок |
|
carry forward |
[ ˈkæri ] [ ˈfɔːwəd ] |
переносити в інший період |
|
close |
[ kləʊz ] |
закривати |
|
drawing |
[ ˈdrɔːɪŋ ] |
зняття з рахунку, виплати |
|
revenue |
[ ˈrev.ən.juː ] |
дохід |
|
referred to as |
[ rɪˈfɜːd ] [ tə ] [ əz ] |
званий |
|
respective |
[ rɪˈspek.tɪv ] |
відповідний |
|
temporary |
[ ˈtemprəri ] |
тимчасовий |
|
throughout |
[ θruːˈaʊt ] |
протягом |
|
zero |
[ ˈzɪərəʊ ] |
нуль |
3. SEE CORRECT ANSWER
Permanent and Temporary Accounts
Asset, liability, and most owner/stockholder equity accounts are referred to as "permanent accounts" (or "real accounts"). Permanent accounts are not closed at the end of the accounting year; their balances are automatically carried forward to the next accounting year.
"Temporary accounts" (or "nominal accounts") include all of the revenue accounts, expense accounts, the owner drawing account, and the income summary account. Generally speaking, the balances in temporary accounts increase throughout the accounting year and are "zeroed out" and closed at the end of the accounting year.
Balances in the revenue and expense accounts are zeroed out by closing/transferring/clearing their balances to the Income Summary account.
Because the balances in the temporary accounts are transferred out of their respective accounts at the end of the accounting year, each temporary account will have a zero balance when the next accounting year begins. This means that the new accounting year starts with no revenue amounts, no expense amounts, and no amount in the drawing account.
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в підручнику “Practical Financial English”
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