English of accounting pps

Thus, while the balance sheet accounts simply track the value of the things you own or owe, income and expense accounts allow you to change the value of these accounts.. What are The fin

TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG

TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG

PHÒNG THCN & DN

READING

FOR ACCOUNTING

Compiled by: ThS ĐỖ THỊ HOA QUYÊN

Internal publishing

- HCMC, June 2010-

PROCESSING ACCOUNTING DATA BOOKKEEPING

Bookkeeping is an essential accounting tool A small business or company may employ only one bookkeeper, who records all of the financial data by hand; large organizations may employ many bookkeepers, who use electronic and mechanical equipment for a large part of their work Each organization has its own bookkeeping requirements, but all systems operate on the same basic principles

The two basic systems of bookkeeping are double entry and single entry

The basic principle of double-entry bookkeeping is that every transaction has a twofold effect In other words, a value is received and a value is yielded By recording both effects

of each transaction, this system offers protection against error

An account is a record of the financial transactions that concern one item or a group of similar items The account includes categories of financial data for each area of interest during a specific period: the value at the beginning of a period, changes in value during the same period and the value at the end of a period

Assets are those things of value that your company owns The cash in your bank account

is your asset So is the company car you drive Assets are the objects, rights and claims owned by and having value for the firm

Since your company has a right to the future collection of money, accounts receivable are assets The machinery on your production floor is also an asset If your firm owns real estate or other tangible property, those are considered assets as well If you were a bank,

the loans you make would be considered assets since they represent

a right of future collection There may also be intangible assets owned by your company Patents, the exclusive right to use a trademark, and goodwill from the acquisition of another company are such intangible assets Their value can be somewhat hazy Think of liabilities as the opposite of assets These are the obligations of one company to another If money is owed to an organization or person for things or services purchased on credit, this liability is called an account payable So is the loan you took from your bank If you were a bank, your customer's deposits would be a liability, since they represent future claims against the bank Other liabilities include wages or salaries that are owed to employees, or taxes that have not yet been paid

We segregate liabilities into short-term and long-term categories on the balance sheet This division is nothing more than separating those liabilities scheduled for payment

within the next accounting period (usually the next twelve months) from those not to be paid until later We often separate debt like this It gives readers a clearer picture of how much the company owes and when

The value of the business to the owner or owners is known as capital Other terms used to designate capital are proprietorship, owners’ equity (usually abbreviated OE), ownership,

or net worth

The two Income and Expense Accounts are used to increase or decrease the value of your accounts Thus, while the balance sheet accounts simply track the value of the things you own or owe, income and expense accounts allow you to change the value of these accounts

Income is the payment you receive for your time, services you provide, or the use of your money When you receive a paycheck, for example, that check is a payment for labor you provided to an employer Other examples of income include commissions, tips, dividend income from stocks, and interest income from bank accounts Income will always increase the value of your Assets and thus this becomes your Equity

Expenses refer to money you spend to purchase goods or services provided by someone else Examples of expenses are a meal at a restaurant, rent, groceries, gas for your car, or tickets to see a play Expenses will always decrease your Equity If you pay for the expense immediately, you will decrease your Assets, whereas if you pay for the expense

on credit you increase your Liabilities

All transactions affect at least two accounts Each transaction must be analyzed to determine which accounts are affected, and whether they should be increased or decreased An entry made on the left-hand side or column of an account is called a debit, while an entry made on the right-hand side or column is a credit Debit, usually abbreviated DR, at one time meant value received, or literally he owes Credit, usually abbreviated CR, meant value parted with, or literally he trusts Many students have trouble with accounting because they forget that the only meaning for “debit” is the left side of an account and the only meaning for “credit” is the right side of an account Perhaps someone once told you that you were a “credit” to your school or your family As a result, you may think that there is a “goodness” attached to credits and perhaps a “badness” attached to debits Such is not the case

ASSETS = LIABILITIES + OWNERS’ EQUITY

Asset A/C’s = Liability A/C’s + Proprietorship A/C’s

Morgan pays his monthly rent of $500, the bookkeeper debits the rent account (expense) and credits the cash account (asset) by $500

The second basic system of bookkeeping, as mentioned previous, is called the single-entry method This method refers to any system that does not include the complete results of every transaction The most common type of single-entry bookkeeping involves records of cash, accounts receivable, and accounts payable

Task 1: Comprehension

1 How do bookkeeping procedures in a large organization differ from those in a small one?

2 What are the two basic methods of bookkeeping?

3 What is double-entry bookkeeping? How does it differ from single-entry bookkeeping?

4 What is a liability? Assets? What are some examples of liabilities? Of assets? What is the difference between asset and liability?

5 What does capital mean? What other terms are often used instead of capital?

6 What is an account? Give an example of an account What abbreviation is commonly used for account?

7 What is a debit? What kinds of accounts do debiting increase? What abbreviation is commonly used for a debit?

8 What is a credit? What kind of accounts does crediting increase? How is it commonly abbreviated?

9 Describe the entries to be made by a bookkeeper for a furniture store when (a) a couch

is sold for $300, and (b) when the janitor is paid his weekly salary of $175

Task 2: - Match the phrase on the left with the statement on the right

1 Liabilities a all the money received by a company during a given period

2 Credit b the amount of business done by a company over a year

3 Assets c The left-hand column of an account

4 Creditors (GB) account

payable (US)

d The right-hand column of accounts

5 Proprietorship e That which is owed by an organization

6 Debit f a company ‘s owners

1 Increase the payroll account

2 Increase the notes payable account

3 Increase the proprietorship account

4 Increase the inventory (asset) account

5 Increase the sales account

6 Decrease the owners’ equity account

7 Decrease the furniture and fixtures account

8 Decrease the telephone account

9 Decrease the sales account

10 Decrease the mortgage account

After recording transactions, a trial balance is prepared to test the equality

of the sum of the debit balances and credit balances Preparing a trial balance requires five steps:

1 Determine the balance of each account in the ledger

2 List the accounts with balances other than zero, with the debit balances in one column and the credit balances in another

3 Add the debit balances

4 Add the credit balances

5 Compare the sum of the debit balances with the sum of the credit balances

If the accounts are not balanced, some error has been made which the bookkeeper must find and correct.However a trial balance is not absolute proof of accuracy You may

DR CR

record a correct debit amount to the wrong account This error will not cause a trial balance to be out of balance

4 What does to foot mean?

5 What is a trial balance?

B- Vocabulary practice: Match each of the items in the left-hand column with the

appropriate item in the right-hand column

1 Purchase of office furniture a) A book of original entries

2 Fixed asset b) The test balance of the account

4 Asset equal d) Acquisition of a fixed asset

5 Journal e) The books that lists all of the accounts

6 Trial balance f) To transfer entries from the journal to the ledger

Special Terms

Asset: anything of value or use to an organization This includes cash, receivables,

securities, property, and intangible, such as goodwill Goodwill is the extra value (such as

a company’s reputation and other intangibles) of a business not reflected in its financial statements The word asset is frequently used in the plural

JERRY DOW, ATTORNEY Trial balance December 31,1998 Cash ……… $ 650 Prepaid insurance………… 2,400 Office supplies……… 120 Law library……… 2,880 Office equipment………… 6,880 Accounts payable……… $ 760 Unearned legal fee……… 3,000 Jerry Dow, capital……… 9,000 Ferry Dow, withdrawals… 1,100

Legal fees earned………… 3,900 Rent expense……… 1,000

Salaries expense………… 1,400 Utilities expense………… 230 Totals ……… $ 16,660 $ 16,660

Note receivable: a written promissory note to pay a sum of money at fixed date

Account receivable: credit sales or sales on account (promises of future payment)

Office supplies: stamps, stationery, paper, pencils and similar items

Store supplies: wrapping paper, cartons, bags, string and similar items

Equipment: physical assets such as desk, chair, office machine, etc

Liability: An obligation that is owed by an organization: debts to other organizations for

merchandise or services; wages owed to employees; accrued (owed but not yet paid) taxes; and payments due on loans for mortgages

Note payable: liability in written promise

Accounts payable: the amount owed on the basic of oral or implied promise to pay

(purchase on credit)

Capital: The investment in an organization or business by its owner or, owners Other

terms often used instead of capital are owners’ equity, often-abbreviated OE, and proprietorship

Account: A record of the changes and balances in the value of an individual item listed in

the ledger of an organization An example of an asset account is the company’s furniture and fixtures, usually listed as one item since it would be impractical to list every desk and chair Each account, usually abbreviated a/c, frequently has its own page in the organization’s ledger

Income: the increase in assets through a result of the operation of the business

Revenue: the formal language of income

Expense: the increase in liabilities through an incurrence of the operation of the business Double entry: A method of bookkeeping in which the twofold effect of every entry is

recorded, thus requires two entries to record each transaction

Single entry: Any bookkeeping system that does not include the complete results of each

transaction It is usually used by small companies or to keep track of specific accounts: for example, a checkbook, which only keeps a record of the cash balance

Debit: An amount entered on the left-hand side of an account Asset and expense accounts

are increased by debiting, that is, by entering amounts in the left-hand column Debit is usually abbreviated DR

Credit: An amount entered on the right-hand side of an account Liability, capital, and

income accounts are increased by crediting, that is, by entering amounts in the right-hand column Credit is usually abbreviated CR

Withdrawals account: the account used to record the transfers of assets from a business

to its owner; also known as personal account or drawing account

FINANCIAL STATEMENTS Warm up:

Do you know how many kinds of financial statements are there in a business? What are

The financial statements of a business that are presented to its owners and other outside parties include four primary statements: the operations statement, the statement of changes

in owners’ equity, statement of cash flows, and the balance sheet

Operations statement

The operations statement is also referred to as a profit and loss statement or an income and expense statement It shows how much profit and loss was generated by the operations of the company during the accounting period In this case, operations may be considered as sales of goods or services The profit from sales after the direct costs for producing the goods or services have been deducted is called gross income and gross profit While income is produced, however, the business has certain other expenses-indirect costs related to the production of that income, such as general or selling expenses The balance

is left when these further expenses are deducted is called net income or net profit In other word, three major captions involve in the income statement including: revenues (gross income), expenses, and net income Revenues are earned from the sale of goods or services rendered by the entity to others for which the entity will receive (or has received) cash or something else of value Expenses represent the dollar amount of resources used

up by the entity during a period of time to earn revenues The expense may be on credit so that cash or other resource is paid after the expense is incurred, such as paying the employees at the end of the month for services provided during the month The expense may represent the cost of using equipment or buildings that were purchased in one accounting period for use in several accounting periods This kind of expense is called depreciation expense If the total expenses exceed the total revenues, a net loss is reported

When revenues and expenses are equal for the period, the business has operated at break even

An operations Statement for a service business

The statement of changes in owners’ equity

The statement shows an increase or decrease in working capital for the year and how this change arose In some cases, this statement will show the change in the cash position rather than the carriage in working capital In other word, the statement shows what changes have occurred in regard to equity since the previous balance sheet was compiled

It shows, for example, the money the owners have put in (investment) or taken out (disinvestment) of the business, as well as profits and losses from its operation

Balance sheet

The balance sheet shows the firm’s condition on the last day of the accounting period It shows what the business owns and what it owes to its creditors or its owners This is expressed in the following accounting formula:

Assets = liabilities + owners’ equity

The purpose of the balance sheets is to report the financial position of a business at a particular point in time Therefore, the balance sheet is frequently called the statement of financial position

Marjorie Breck, CPA Income Statement Year Ended December 31, 20X

Plus: Investment by owner……… $9,000

Net income……… 2,200 Total……… 11,200

Less withdrawals by owner………… ……… 1,100

Jerry Dow, capital December 31,1990 ……… $10,100

It has sometimes been said that the balance sheet shows the financial condition of a business However, the use of the word “condition” is apt to be misleading because it has too broad a significance Its use gives the impression that the balance sheet shows all aspects of the relation of an enterprise to the business world about it But this is not so There are many factors affecting the condition of a business that are not shown in a balance sheet; for example, contracts, commitments, technical problems in an industry, market conditions, taxation, tariffs, the public’s demand for commodities, and the ability

Less Accumulated Depreciation 12,000 28,000

business, it is more correct to say that it is a statement of the financial position of the accounting for that business The balance sheet is sometimes referred to as a statement of assets and liabilities, or statement of assets, liabilities and capital Either of these titles is quite appropriate, but the name balance sheet is in most common use

Assets are the resources owned by the entity Assets may be tangible ( physical in character) or intangible ( characterized by legal claims or rights) An asset should be measured on the basis of the total cost incurred to acquire it In other word, this will be reported as its original acquisition cost instead of its current market value Liabilities are the debt or obligations of the entity They arise primarily because of the purchase of goods

or services from others on credit and through cash borrowings to finance the business Owner’s equity represents a residual interest in the assets because creditors’ claims legally come first It is sometimes called net worth However, the preferable designations are owner’s equity for a sole proprietorship, partners’ equity for a partnership and stockholders’ equity for a corporation Owner’s equity in a business comes from two sources: contributed capital, which is the investment of cash and other assets in the business by the owners and retained earnings, which is the amount of accumulated earnings kept in the business

The statement of cash flows.(SCF)

This statement shows the cash inflow and cash outflows of the business, summarized in three categories: cash flows from operations, cash flows from investing activities, and cash flows from financing activities

JERRY DOW, ATTORNEY Statement of Cash Flows For month ended December, 31 1990 Cash flows from operations:

Cash received from customers……… $3,900 Cash paid for rent……… - 1,000 Cash paid to employee……… - 700 Net cash provided by operating activities ……… 2,200 Cash flows from investing activities:

Purchase of office equipment……… - $5,600 Purchase of law library ……… ………… - 2,500 Net cash used by investing activities: ……… - 8,100 Cash flows from financing activities:

Investment by owner……… + $9,000 Withdrawals by owner……… - 1,100 Repayment of debt……… - 900 Net cash provided by financing activities… + 7,000 Cash balance, November 30,1990………… – 0 – Cash balance, December 31,1990………… $ 1,100

1 Cash flows from operating activities: are related directly to earning income( normal business activity) for example, cash collected from customers, or cash paid

to employees etc

2 cash flows from investing activities: are related to the acquisition or sale of productive assets used by the company for example the purchase of a new factory

or the sale of a used delivery truck etc

3 cash flows from financing activities are related to the financing of the enterprise itself for example, cash received from owners for their initial investment in the business or cash used to repay a loan from a bank etc

5- What does a statement of cash flow show?

6- Explain why the income statement and the SFC are dated “ for the year ended December, 31st 20X”, whereas the balance sheet is dated “ at December 31st 20X”?

7- What are the two primary sources of owner’s equity in a business?

8- What are the appropriate titles for owners’ equity for sole proprietorship, partnership and corporation?

9- A new business has the following transactions: (1) the owner invested $2,500; (2)

$1,500 of supplies were purchased for cash; (3) $1,200 was received in payment for services rendered by the business; (4) a salary of $900 was paid to an employee; and (5)

$2,000 was borrowed from the bank After these transactions were completed, the total assets, total liabilities and total owner’s equity of the business are:

1- Management fees earned

2- Accounts receivable

3- Investments of cash by owner

4- Cash received form customer

5- Rent expense paid in cash

6- Cash withdrawals by owner 7- Office supplies

8- Accounts payable 9- Payroll

10- Tax accrued

Information in the form of data and programs is known as software, and the electronic and mechanical parts that make up a computer system are called hardware A standard computer system consists of three main sections: the central processing unit (CPU), the main memory and the peripherals

Perhaps the most influential component is the central processing unit Its function is to execute program instructions and coordinate the activities of all the other units In a way,

it is the “brain” of the computer The main memory holds the instructions and data which are currently being processed by the CPU The peripherals are the physical units attach to the computer They include storage devices and input/output devices

Storage devices (floppy, hard or optical disks) provide a permanent storage of both data and programs Disk drives are used to handle one or more floppy disks Input devices enable data to go into the computer’s memory The most common input devices are the mouse and the keyboard Output devices enable us to extract the finished product from the system For example, the computer shows the output on the monitor or prints the results onto paper by means of a printer

1- The brain of the computer

2- Physical parts that make up a computer system

3- Programs which can be used on a particular computer system

4- The information which is presented to the computer

5- Results produced by a computer

6- Hardware equipment attached to the CPU

7- Visual display unit

8- Small device used to store information Same as “diskette”

9- Any socket or channel in a computer system into which an input/output device may be connected

Task 3: Read and guess

Read these slogans or quotations and say what computer element they refer to

1- “Point and click here for power.”

“Obeys every impulse as if it were an extension of you hand.”

2- “Displays you ideas with perfect brilliance.”

“ See the difference – sharp images and a fantastic range of colors.”

3- “ I love this drive It’s quiet and fast.”

“With this it’s easy to back up your data before it’s too late.”

4- “ Power and speed on the inside.”

r “ Let your computer’s brain do the work.”

5- “…a big impact on the production of text and graphics.”

“ Your choice: a laser powerhouse.”

Task 4:

Complete the text below with the words in the box

Systems memory task terminals desktop CAD applications

The first microcomputers, also known as (1) ‘ _’ PCs, are for single users only, and

this clearly distinguished them from minicomputers Another important difference was

that ‘minis’ are much more powerful than ‘micros’: they could execute more than one (2)

_ simultaneously and were used as file servers for (3) and workstations

However modern microcomputers have operating (4) _ and net work facilities that

can support many simultaneous users Today, most personal computers have enough

(5) to be used for word processing and business (6) Some PCs can even handle

multitasking and (7) _ applications As a result, the division between ‘minis’ and

‘micros’ is now disappearing

Task 5: Summarize

Label this diagram with the correct terms

Computer system

Physical units attached to the computer

What’s inside a microcomputer?

The nerve center of a microcomputer is the central processing unit or CPU This unit is built into a single microprocessor chip – an integrated circuit – 1which executes program

instructions and supervises the computer’s overall operation The unit consists of three main parts:

(1) the control unit, which examines the instructions in the user’s program, interprets

each instruction and causes the circuits and the rest of the component – disk drives, monitor, etc - to be activated to execute the functions specified;

(2) the arithmetic logic unit (ALU), which performs mathematical calculations (+, -, etc ) and logical operations ( and, or, etc.)

(3) the registers, which are high-speed units of memory used to store and control information One of these registers is the program counter (PC) which keeps track

of the next instruction to be performed in the main memory Another is the instruction register (IR) which holds the instruction 2that is currently being

executed

One area where microprocessors differ is in the amount of data – the number of bits –

3

they can work with at time There are 8, 16, 32, and 64-bit processors The computer’s

internal architecture is evolving so quickly that the new 64-bit processors are able to address 4 billion times more information than a 32-bit system

The programs and data which pass through the central processor must be loaded into the main memory (also called the internal memory) in order to be processed Thus, when the user runs an application, the microprocessor looks for 4it on secondary storage devices

(disks) and transfers a copy of the application into the RAM area RAM (random access memory) is temporary; i.e 5its information is lost when the computer is turned off

However, the ROM section (read only memory) is permanent and contains instructions needed by the processor

Most of today’s computers have internal expansion slots 6that allow users to install

adapters or expansion boards Popular adapters include high-resolution graphics boards, memory expansion boards, and internal modems

The power and performance of a computer is partly determined by the speed of its microprocessor A clock provides pulses at fixed intervals to measure and synchronize circuits and units The clock speed is measured in MHz (megahertz) and refers to the frequency at which pulses are emitted For example, a CPU running a 500 MHz (500 million cycles per second) is likely to provide a very fast processing rate and will enable the computer handle the most demanding applications

A- Read the text below and then decide if the sentences are true (T) or false (F), and rewrite the false ones to make them true

1- The CPU directs and coordinates the activities taking place within the computer system

2- The arithmetic logic unit performs calculations on the data

3- 32-bit processors can handle more information than 64-bit processors

4- A chip is an electronic device composed of silicon elements containing a set of integrated circuits

5- RAM, ROM, and secondary storage are the components of the main memory 6- Information cannot be processed by the microprocessor if it is not loaded into the main memory

7- ‘Permanent’ storage of information is provided by RAM (random access memory)

8- The speed of the microprocessor is measured in megahertz One MHz is equivalent to one million cycles per second

B- what do the words in bold print refer to?

1- …Which executes program instructions and supervises …(line2)

2- …the instruction that is currently being executed.( line 13)

3- … the amount of data – the number of bits – they can work with at a time (line

16)

4- … the microprocessor looks for it on …(line 21)

5- … its information is lost when the computer is turned off (line23)

6- …expansion slots that allow users to install adapters or expansion boards.(line 24)

Task 3:

A- Read the text and complete it with the phrases in the box

All the information stored in the RAM is temporary

Microcomputers make use of two types of main memory

ROM chips have ‘constant’ information

The size of RAM is very important

MAIN MOMORY: RAM and ROM

The main memory of a computer is also called the ‘immediate access store’, as distinct from any storage memory available on disks (1) : RAM and ROM, both contained

in electronic chips connected to the main board of the computer

RAM stands for ‘random access memory’ and is the working area of the computer, that

is, the basic location where the microprocessor stores the required information It is called ‘random access’ because the processor can find information in any cell or memory address with equal speed, instead of looking for the data in sequential order

(2) _ so it is lost when the machine is turned off Therefore, if we want to use this information later on, we have to save it and store it on a disk When running an application, the microprocessor finds its location in the storage device (the floppy or hard disk) and transfers a temporary copy of the application to the RAM area Consequently, (3) _ if we want to increase the performance of a computer when several applications are open at the same time or when a document is very complex

The RAM capacity can sometimes be expanded by adding extra chips These are usually contained in single in-line memory modules or SIMMs, which are installed in the motherboard of the computer We can designate a certain amount of RAM space a cache

in order to s tore information that an application uses repeatedly A RAM cache may speed up our work, but I mean that we need enough internal memory or a special cache card

ROM is an acronym for ‘read only memory’, which implies that the processor can read and use the information stored in the ROM chip, but cannot put information into it (4) , including instructions and routines for the basic operations of the CPU These intrusions are used to start up the computer, to read the information from the keyboard, to send characters to the screen, etc They cannot be changed and are not erased when the power is turned off For this reason, the ROM section is also referred to as firmware B- As we have seen, there is three types of memory used by computers: RAM, ROM and secondary storage Look through this list of features and decide which type of memory they refer to

1- Any section of the main memory can be read with equal speed and ease

2- It is available in magnetic, optical and video disks

3- A certain amount of this memory can be designated as ‘cache’ memory to store information in applications that are used very frequently

4- It stores basic operating instruction, needed by the CPU to function correctly

5- Memory which can be expanded by adding SIMMs of 8 MB, 16MB, 32MB or other major increments

6- Information is permanent and cannot be deleted

7- You can save and store your documents and applications

CPU- THE PROCESSOR Task 1: Reading

It is common practice in computer science for the words “computer” and “processor” to

be used in interchangeably More precisely, ‘computer’ refers to the central processing unit (CPU) together with an internal memory The internal memory or main storage control and processing components make up the heart of the computer system Manufacturers design the CPU to control and carry out basic instructions for their particular computer

The CPU coordinates all the activities of the various components the computer It determines which operations should be carried out and in what order The CPU can also retrieve information from memory and can store the results of manipulations back into the memory unit for later reference

In digital computers the CPU can be divided into two functional units called the control unit (CU) and the arithmetic-logical unit (ALU) These two units are made up of electronic circuits which millions of switches that can be in one of two states, either on or off

The function of the control unit within the central processor is to transmit coordination control signal and commands The control unit is that portion of the computer that directs the sequence or step-by-step operations of the system, selects instructions and data from memory, interprets the program instructions and controls the follow between main storage and the arithmetic-logical unit

The arithmetic-logical unit, on the other hand, is at portion of the computer in which the actual arithmetic operations, namely, addition, subtraction, multiplication, division and exponentiation, called for in the instructions are performed It also performs some kinds

of logical operations such as comparing or selecting information All the operations of the ALU are under the direction of the control unit

Programs and the data, on which the control unit and the ALU operate, must be in internal memory in order to be processed Thus, if located on secondary memory devices such as disks or tapes, programs and data are first loaded into internal memory

Main storage and the CPU are connected to a console, where manual control operations can be performed by an operator The console is an important, but special purpose, piece

of equipment It is used mainly when the computer is being started up or during maintenance and repair Many mini and micro system do not have a console

Decide whether the following statements are true or false (T/F) by referring to the information in the text Then make the necessary changes so that the false statements become true

1- The central processing unit is made up of three components

2- The CPU is responsible for all the activities taking place within a computer

3- The processor itself has three components

4- The control unit directs the flow of information within a processor

HARDWARE and SOFTWARE

Computer systems may be catalogued into two parts:

The first part is hardware – the physical, electronic and electromechanical devices that are thought of and recognized as “computers” The second part is software – the program that controls and coordinates the activities of the computer hardware and that direct the processing of data

The basic components of computer hardware joined together in a computer system The centerpiece is called either the computer the processor, or usually the central processing unit.(CPU) The term ‘computer’ usually refers to those parts of the hardware in which calculations are performed and the internal memory in which other data and instructions are stored during the actual execution of programs The various peripherals, which include input and /or output devices, various secondary memory devices, and so on, are attached to the CPU

Computer software can be divided into two very broad categories system software and applications software The former is often simply referred to as ‘systems’ These, when brought into internal memory, direct the computer to perform tasks The latter may be provided along with the hardware by a system supplier as part of a computer product designed to answer a specific need in certain areas These complete hardware/software products are called turnkey systems

The success or failure of any computer systems depends on the skill which the hardware and software components are selected and blended A poorly chosen system can be a monstrosity incapable of performing the tasks for which it was original acquired

UNDERSTANDING THE PASSAGE

Indicate whether the following idea are stated or not stated (S/NS) in the text

1- A system implies as good mixture of parts working together

2- Input and output devices operate more slowly than the decision-making devices 3- The control unit and the arithmetic-logical unit are parts of the processor

4- The ‘computer’ is the hardware

5- Software is the program on cards, tapes and disks

6- The processor is usually referred to as the computer

7- The word ‘computer’ means the processor and the internal memory

8- Systems software is usually referred to as programs

9- Complete hardware/software products are called turnkey systems

10- Computers process specially prepared items of information

Unit 3

WORD PROCESSING Task 1: Warm up

Try to answer these questions

1- What is a word processor?

2- What makes word processors superior to traditional typewriters?

3- Make a list of the most important features offered by word processors

Task 2: Reading

Word-processing facilities

Writing letters, memos or reports are the ways most people use computers They manipulate words and text on a screen- primarily to print at some later time and store for safe keeping Computers alleviate much of the tedium associated with typing, proofing and manipulating words Because computers can store and recall information so readily, documents need not be retyped form scratch just to make corrections or changes The real strength of word processing lies on this ability to store, retrieve and change information Typing is still necessary (at least, for now) to put the information into the computer initially, but once in, the need to retype only applies to new information

Word processing is more than just typing, however Features such search and replace allow users to find a particular phrase or word no matter where it is in a body of text This becomes more useful as the amount of text grows

Word processors usually include different ways to view the text Some include a view that displays the text with editor’s marks that show hidden characters or commands (spaces, returns, paragraph endings, applied styles, etc ) Many word processors include the ability to show exactly how the text will appear on paper when printed This is called WYSWYG(What YOU SEE IS WHAT YOU GET, pronounced ‘wizzy-wig’) WYSIWYG shows bold, italic, underline and other type style characteristics on the

screen so that the user can clearly see what he or she is typing Another feature is the correct display of different typefaces and format characteristics (margins, indents, super- and sub-scripted characters, etc) This allows the user to plan the document more accurately and reduces the frustration of printing something that doesn’t look right Many word processors now have so many features that they approach the capabilities of layout applications for desktop publishing They can import graphics, format multiple columns of text, run text around graphics, etc

Two important features offered by word processors are automatic hyphenation and mail merging Automatic hyphenation is the splitting of a word between two lines so that the txt will fit better on the page The word processor constantly monitors words typed and when it reaches the end of a line, if a word is too long to fit, it checks that word in a hyphenation dictionary This dictionary contains a list of words with the preferred places

to split it If one of these cases fits part of the word at the end of the lien, the word processor splits the word, adds a hyphen at the end and places the rest on the next line This happens extremely fast and gives text a more polished and professional look

Mail merge applications are largely responsible for the explosion of ‘personalize’ mail Form letters with designated spaces for name and addresses are stored as documents with links to lists of names and addresses of potential buyers or client By designating what information goes into which blank space, a computer can process a huge amount of correspondence substituting the ‘personal’ information into a form letter The final document appears to be typed specifically to the person addressed

Many word processors can also generate tables of numbers or figures, sophisticated indexes and comprehensive tables of contents

A- Read the text and underline any word-processing capabilities that you did not list