Self-study 20. Task Read the text and write the definitions of the words in bold. Preparation of the accounts

Self-study 20.
Task 1. Read the text and write the definitions of the words in bold.
Preparation of the accounts
The accounting process starts with inputs, and these arc things such as sales documents (eg invoices), purchasing documents (eg receipts), payroll records, bank records, travel and entertainment records. The data in these inputs is then processed by specialized software:
Entries are recorded chronologically into 'journals'. Information from the journals is posted (- transferred) into 'ledgers', where it accumulates in specific categories (eg cash account, sales account, or account for one particular customer)
A 'trial balance' is prepared at the end of each accounting period: this is a summary of the ledger information to check whether the figures are accurate. It is used directly to prepare the main financial statements (income statement, balance sheet and cash flow statement).
The financial statements of large companies have to be checked by an external firm of auditors, who 'sign off on the accounts' (= officially declare the accounts are correct). They are publicly available, and appear in the company's annual report. Users of financial statements include: shareholders, potential shareholders, creditors (lenders, eg banks), customers, suppliers, journalists, financial analysts, government agencies, etc.
Profit and Loss Account
The profit and loss account (= income statement, or just 'the P&L') summarizes business activity over a period of time. It begins with total sales (= revenue) generated during a month, quarter or year. Subsequent lines then deduct (- subtract) all of the costs related to producing that revenue.
Inputs what is put in, taken in, or operated on by any process or system.
Data information
Accumulates gather together or acquire an increasing number or quantity of