Speaking

Situation 3 Talking about Assets

Sample Dialogue 1

Diana: Final examination is round the corner.Have you prepared well for it?

Allan: My hands are full right now.Could you lend me your notes of financial statements?

Diana: I'd like to.But Rosa has it now.

Allan: I really don't understand the basic elements of them,especially assets.

Diana: Listen up.Asset relates to the statement of financial position.In simple words,asset is something which a business owns or controls to benefit from its use in some way.

Allan: Is it money?

Diana: It may be something which directly generates revenue for the entity or it may be something which supports the primary operations of the organization.

Allan: I can see that.But I know nothing about its classification.

Diana: Well,assets may be classified into current assets and non-current assets.The difference lies in the time period.

Allan: Jesus Christ,what are they on earth?

Diana: Current assets are ones that an entity expects to use within one-year time from the reporting date.Non-current assets are those whose benefits are expected to last more than one year from the reporting date.

Allan: I'd better focus on your notes for further understanding.

Task 5

Pair work.Take Sample Dialogue 1 as an example.Start a conversation with your partner according to the situation:

Suppose you are an accounting major who is a top student in the class.Your classmate Wang has problems with the elements of financial statements,so you explain them to him/her.

Situation 4 Talking about Liabilities

Sample Dialogue 2

Grace: What a horrible day!I'd really like to go out but it looks as if the snow is on for the whole day.

Dunn: Oh,I don't know.Why not stay at the dorm to review our lessons?

Grace: You mean the accounting lesson yesterday?

Dunn: Yes.I am still confused about liabilities.

Grace: Does it mean debt?

Dunn: Actually,it reads on the book: In brief,liability is an obligation of the entity to transfer cash or other resources to another party.

Grace: We are talking about borrowing and lending money.

Dunn: Liability could be a bank loan,and it makes the entity pay loan installments to the bank with interest.

Grace: Let me see.Alternatively,an entity's liability could be a trade payable arising from the purchase of goods from a supplier on credit.

Dunn: In addition,liabilities may be classified into current liability and non-current liability.

Grace: You make it clear.

Dunn: Current liability is one which the entity expects to pay off within one year from the reporting date.

Grace: According to that,non-current liability is one which the entity expects to settle after one year from the reporting date.

Dunn: You said it.

Task 6

Pair work.Take Sample Dialogue 2 as an example.Start a conversation with your partner according to the situation:

Suppose you are a college student trapped in the dorm due to the bad weather.Yourroommates are reviewing the lessons on the elements of financial statements,so you work together with them.

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