UNIVERSIDAD SANTO TOMAS

ACCOUNTANCY
Reading Comprehension Activity
José Fernando Martinez Lozano

Members:
1- Estefania Vera Rincon
2- Laura Margarita Tellez Quiroga
3- César David Cordoba Murallas
4- Héctor Iván Moreno Villamizar

Purpose: The purpose of the reading comprehension activity is that the accountancy student
knows the different concepts of the English accounts of a financial statement in a second
language.

Content aim: Students can evaluate identify each account of a Financial Statement.

Language aim: Students will use the essential vocabulary of the Financial Statement Analysis
and they can interpret financial information of real companies in the market in the foreign
language.

1. Pre – Reading Strategy:

A. What do you think that are the main accounts that make up a balance sheet and a result
sheet?

Put x and circles depends of the financial statement. Is it is part of the balance sheet put and X and it
is part of the result sheet put a circle.

Cash and Cash Equivalents X

Operating Cost O
Gross Profit O
Suppliers X
Investments X
Accounts receivable (Costumers) X
Earnings Before Interest and Taxes O
Other Income O
Income received in advance X
Equity X
Other Accounts receivable X
Net Profit O
Inventory X
Prepaid expenses X
Taxes O
 2. While – reading Strategy: Work in groups of three people. Read the following glossary
and work on the suggested activities.
A. Match the word with its definition.
Glossary Concept
1. Balance Sheet ⎯ 5. All the products that are prepare to be
sold or transformed
2. Cash Equivalents ⎯ 10. Fixed assets
3. Investments ⎯ 4. The sales or others incomes that are
going to be paid in the short future
4. Trade and Accounts receivables ⎯ 3. The investments that the company use
out of their operation.
5. Inventories ⎯ 1. Is the financial statement that show the
way which the company makes their
investment and how it finances these.
6. Prepayments and accrued income ⎯ 6. Are sales that are paid before to give
the product
7. Current income tax assets ⎯ 9. Assets that are going to transform in
cash after one year
8. Current assets ⎯ 8. Assets that are going to transform in
cash before one year
9. Non-Currents Assets ⎯ 7. Taxes that are in favor of the company
10. Property, plant and equipment ⎯ 2. All the cash that have the company to
use in the operation
B. Complete the words by adding its missing vowels.
Assets that are not physical Is the financial
statement that show the way which the company
Intangible assets
makes their investment and how it finances
these.
Investment in companies that the company have
Investment in -associates and joint venture
a control or share participation
Financial assets Investment in the financial sector
Different between the fiscal accounting and the
Deferred tax assets
normal accounting
Liabilities that you have to paid in less than a
Current liabilities
year
C. With the help of a dictionary, please write the definition in English of each of the
following words
Equity the value of a company, divided into many equal
parts owned by the shareholders, or one of the
equal parts into which the value of a company is
divided
Reserve to keep something for a particular purpose or
time
Retained Earnings the part of a company’s profit in a particular
period that it decides to keep, rather than paying
it to shareholders as a dividend
Sales Is a stock that is generated from selling a good or
service in exchange for money.

Distribution expenses Are costs incurred to deliver your product from

 the production unit to the end user

Financial Income They are those returns from financial operations.

They constitute an amount or income in favor of
a certain activity derived from the investment of
financial capital, they come from the use of cash
and a set of assets with certain degrees of
liquidity.
Financial Expenses They are part of the item of deductible expenses
of the economic activity, both of the self-
employed person and of the companies, are
those incurred by a company as a result of the
use of capital made available to it by third
parties.

Taxes They are taxes that each person or company

must pay to the State to pay for the collective
needs, thus contributing a part of their income.

Profit before taxes It is an indicator of the operating result of a

company without taking into account interest and
financial costs, which depend on the way in
which the company is financed and interest
rates.
Profit for the year It is a benefit or profit to the positive balances
obtained from a process or an economic or
financial activity.
 3. Post – reading Strategy:

In the same groups, organize the basic structure of a balance sheet and a result sheet and prepare to
present it to all the class.

Statement of Financial Position Statement of income

Assets
Income 3.325.150
Current assets 1.061.965
Non-current assets 19.119.470 Sales cost -740.448
Total assets 20.181.435
Gross profit 2.584.702
liabilities
Other income 63.837
Current liabilities 1.138.489 Selling expenses -2.466.667
Non-current liabilities 3.542.197 Administration expenses -849.944
Total liabilities 4.680.686 Other expenses -17.093
Profit from operating activities -685.166
Equity 15.500.749
Financial income 4.232
Financial costs -140.094
Total liabilities and Equity 20.181.435 Earnings before taxes -821.028

Income tax -772

Profit from operations -821.799