ACCOUNTING – MINI DICTIONARY

1. Accounting:
o Definition: The systematic recording, reporting, and analysis of financial
transactions of a business.
2. Assets:
o Definition: Resources owned or controlled by a business that has economic
value, such as cash, inventory, or property.
3. Liabilities:
o Definition: Financial obligations or debts that a business owes to external
parties, such as loans or accounts payable.
4. Equity:
o Definition: The residual interest in the assets of a business after deducting
liabilities; often represented by the owner's capital.
5. Revenue:
o Definition: The total income generated by a business from its primary
operations, usually from sales of goods or services.
6. Expense:
o Definition: Costs incurred by a business in the process of generating revenue,
such as salaries, rent, and utilities.
7. Accounts Payable:
o Definition: The amount of money a business owes to its suppliers or vendors
for goods and services purchased on credit.
8. Accounts Receivable:
o Definition: The amount of money owed to a business by its customers for
goods or services sold on credit.
9. Balance Sheet:
o Definition: A financial statement that provides a snapshot of a company's
financial position, showing assets, liabilities, and equity at a specific point in
time.
10. Income Statement:
o Definition: A financial statement that summarizes a company's revenues and
expenses over a specific period, resulting in net income or net loss.
 11. Cash Flow:
o Definition: The movement of money into and out of a business, reflecting the
liquidity and operational health of the company.
12. General Ledger:
o Definition: A complete record of all financial transactions of a business,
organized by accounts.
13. Debit:
o Definition: An entry that increases assets or expenses and decreases liabilities
or equity in the accounting equation.
14. Credit:
o Definition: An entry that increases liabilities or equity and decreases assets or
expenses in the accounting equation.
15. Trial Balance:
o Definition: A list of all the general ledger accounts with their balances to
ensure that debits equal credits.
16. Depreciation:
o Definition: The systematic allocation of the cost of an asset over its useful life
to reflect its diminishing value.
17. Accrual Accounting:
o Definition: An accounting method that records revenues and expenses when
they are earned or incurred, regardless of when the cash is received or paid.
18. Double-Entry Accounting:
o Definition: A system of recording financial transactions that involves two
entries, a debit, and a credit, to maintain the accounting equation's balance.

EXCERCISES:

TRANSLATION

Write an English equivalent of the words below:

1. Przychód
2. Zobowiązania
3. Aktywa
4. Bilans próbny
 5. Kapitał własny
6. Księgowość
7. Rachunek zysków i strat
8. Kredyt
9. Amortyzacja
10. Przepływ gotówki
11. Debet
12. Koszt
13. Rozliczenia w rozrachunku
14. Należności
15. Zobowiązania wobec dostawców
16. Podwójne księgowanie
17. Bilans
18. Księga główna

GAP FILLING

Fill in the blanks with the appropriate terms from the provided list:

1. _______ represent resources owned or controlled by a business that has economic

value, such as cash, inventory, or property.
2. _______ is the systematic allocation of the cost of an asset over its useful life to reflect
its diminishing value.
3. A _______ is a financial statement that provides a snapshot of a company's financial
position, showing assets, liabilities, and equity at a specific point in time.
4. _______ is an accounting method that records revenues and expenses when they are
earned or incurred, regardless of when the cash is received or paid.
5. _______ is the total income generated by a business from its primary operations,
usually from sales of goods or services.
6. _______ is the amount of money a business owes to its suppliers or vendors for goods
and services purchased on credit.
7. An _______ entry increases liabilities or equity and decreases assets or expenses in the
accounting equation.
8. _______ are financial obligations or debts that a business owes to external parties,
such as loans or accounts payable.
 9. _______ is a system of recording financial transactions that involves two entries, a
debit, and a credit, to maintain the accounting equation's balance.
10. _______ is the residual interest in the assets of a business after deducting liabilities;
often represented by the owner's capital.
11. _______ is the movement of money into and out of a business, reflecting the liquidity
and operational health of the company.
12. The _______ is a complete record of all financial transactions of a business, organized
by accounts.
13. An _______ entry that increases assets or expenses and decreases liabilities or equity
in the accounting equation.
14. _______ is the amount of money owed to a business by its customers for goods or
services sold on credit.
15. _______ is an entry that increases liabilities or equity and decreases assets or expenses
in the accounting equation.
16. _______ are costs incurred by a business in the process of generating revenue, such as
salaries, rent, and utilities.
17. _______ is an entry that increases liabilities or equity and decreases assets or expenses
in the accounting equation.
18. An _______ entry increases liabilities or equity and decreases assets or expenses in the
accounting equation.

True or False Exercise:

Determine whether the following statements are true or false based on the provided
bookkeeping terms:

1. True/False: The balance sheet is a financial statement that summarizes a company's

revenues and expenses over a specific period.
2. True/False: Depreciation is the systematic allocation of the cost of an asset over its
useful life to reflect its diminishing value.
3. True/False: Accounts Payable represent the total income generated by a business
from its primary operations.
4. True/False: In double-entry accounting, an entry that increases assets is recorded as a
credit.
 5. True/False: The income statement provides a snapshot of a company's financial
position, showing assets, liabilities, and equity at a specific point in time.
6. True/False: Cash Flow reflects the liquidity and operational health of a company by
showing the movement of money into and out of the business.
7. True/False: Equity is the financial obligations or debts that a business owes to
external parties.
8. True/False: The Trial Balance ensures that debits and credits in the general ledger
accounts are equal.
9. True/False: Accrual Accounting records revenues and expenses when they are earned
or incurred, regardless of when the cash is received or paid.
10. True/False: The General Ledger is a financial statement that shows the profitability of
a business over a specific period.

Word Usage in Context

Use the words form the mini dictionary and complete the text.

In the dynamic world of business, a_____________ serves as the backbone, encompassing

the systematic recording, reporting, and analysis of financial transactions. As companies
navigate the intricate web of financial management, key terms like a_____________ and
l_____________ play pivotal roles.

A_____________ represent the valuable resources owned or controlled by a business, ranging

from tangible entities like cash and inventory to intangible assets such as intellectual property.
On the flip side, l_____________ encapsulate the financial obligations and debts that a
business owes to external parties, exemplified by loans and accounts payable.

The delicate equilibrium between these elements is further refined by the concept of
e_____________. This residual interest in a company's assets, standing tall after deducting
liabilities, often finds its expression in the owner's capital, a testament to the business's
financial health.

As the gears of commerce turn, the engine of financial success is fueled by r_____________,
the lifeblood of a business. This term encapsulates the total income generated from primary
operations, be it through the sale of goods or the provision of services. However, this journey
is not without its challenges, as businesses encounter various e_____________ – the costs
incurred in the process of revenue generation. These may include salaries, rent, utilities, and
other operational necessities.

The intricate dance of financial elements is documented in financial statements like the
b_____________ s_____________ and the i_____________s_____________. The former
provides a snapshot of a company's financial position at a specific moment, showcasing the
interplay between assets, liabilities, and equity. Meanwhile, the latter summarizes a
company's financial performance over a defined period, revealing the ebb and flow of
revenues and expenses, resulting in either net income or net loss.

To maintain transparency and accuracy, businesses meticulously record transactions in a

ge_____________l_____________. Here, the principles of d_____________-
e_____________ a_____________come into play. Every financial transaction involves two
entries – a d_____________, which increases assets or expenses and decreases liabilities or
equity, and a c_____________, which increases liabilities or equity and decreases assets or
expenses. The t_____________ b_____________ serves as the checkpoint, ensuring that the
sum of debits equals the sum of credits in the general ledger.

Further nuances are added through concepts like d_____________ – the systematic allocation
of an asset's cost over its useful life. Additionally, the adoption of a_____________
a_____________signifies a forward-looking approach, recording revenues and expenses
when they are earned or incurred, irrespective of cash flow.

In the grand symphony of financial management, these terms harmonize to orchestrate the
movement of money into and out of a business, reflecting its c_____________
f_____________ – a vital indicator of liquidity and operational health. Through these
financial maneuvers, businesses ensure not only their survival but also their growth and
resilience in the ever-evolving landscape of commerce.