STEP INTO THE GED
READING PRACTICE: Basic Accounting

RETURN TO: Basic Accounting Passage

 

Answer the questions separately. Only when you have answered all, check them here. Turn in your answers to your instructor.

1.  What is accounting?

 

2. How is accounting important to an individual?

3. How is accounting important to a business?

 


 

4.  What is income? 

 

 

5.  What are expenses?

 
 

6.  What is meant by the “balance” of an account?

 

 

7. Why must a business have a profit?
 

 

8.  Do you think one loss would bankrupt a company? Why?  Why not?    

 

9.  Why do you think a company is not doing well if it just breaks even?

10. Think about accounting as a possible job.  What would you like about it?  What would you dislike about it?

 

Note: Questions 8, 9, and10 may be used for discussion purposes.

              _________________________________________________________
 

Vocabulary Practice

Match each of the words in Column A with one from Column B.

              A                                        

_____ 1.  process      

_____ 2.  bookkeepers        

_____ 3.  accounting books

_____ 4.  income                 

_____ 5.  expenses        

_____ 6.  balance       

_____ 7.  utilities                  

_____ 8.  profit            

_____ 9.  loss    

_____ 10. account

 

 

Use each choice once only.

 

 


B

a.  an individual record in an accounting book

b.  money lost by a company

c.  money paid out by a business

d.  records

e.  series of steps to do something

f.  water, electricity, phones

g.  money made by a company

h.  money coming into a company

i.  managers and organizers of financial information

j.  money left over at the end of a month

 

 

 

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Leecy Wise and Vicky Lara, authors