Deck 4: A Sense of Style: Writing With Conciseness and Clarity

Question 1

Revise the following sentences so that they are written as simply and concisely as possible. Be alert for hidden verbs.
1. We should not make reference to projections that are unrealistic in our plan.
2. These techniques will provide for an improved control of inventory.
3. This is to acknowledge receipt of your letter of April 30.
4. We will endeavor to complete your returns prior to April 15.
5. I am in need of improved writing skills.
6. In conclusion, I would like to state that I feel this seminar is an excellent opportunity.
7. There are several benefits that can come from attending the seminar.
8. Per the discussion held with you during our recent visit, there are several control objectives within the above-mentioned cycles that need to have techniques established or refined to assure that these objectives are met.
9. Utilization of linear models alone may lead to unnecessary limitations as to the inferences that one may be able to draw from the data.
10. This method provides proper allocation of costs.

Answer 1

Sentences written in simple and concise way are precise and easy to understand. Usage of hidden verbs increases the chances of making sentences wordy and uninteresting. One way to boost the effectiveness is to use short sentences with descriptive nouns.
Following are the revised sentences written as concisely as possible:
1.
We should not refer to unrealistic projections in our plan.
Explanation: 'make reference to' is changed to 'refer' as it was a hidden verb making the sentence less lengthy.
2.
These techniques will improve inventory control.
Explanation: 'provide for an improved control for inventory' is modified to 'improve inventory control' , improve is the hidden verb here making the sentence precise.
3.
Thank you for your letter of April 30.
Explanation: 'this is to acknowledge receipt of' is revised to 'thank you for' making the sentence clear and concise.
4.
We will try to complete your returns before April 15.
Explanation: 'endeavor' is revised to 'try' and 'prior to' is revised to 'before'. Usage of easy to understand vocabulary makes the sentence concise and simple.
5.
I need to improve my writing skills.
Explanation: 'I am in need of improved' is revised to 'I need to improve my' which makes the sentence clear, improve is the hidden verb in present sentence.
6.
In conclusion, this seminar is an excellent opportunity.
Explanation: 'I would like to state that I feel that' makes the sentence unnecessarily wordy and uninteresting which is revised by eliminating it.
7.
The seminar will benefit participants in several ways.
Explanation 'there are several benefits that can come from attending the seminar' can be revised to the above given sentence to be more clear and precise, starting the sentence with 'the seminar' instead of 'there are' sounds more professional.
8.
During our recent visit, we discussed the need for improved techniques to meet the control objectives within the above mentioned cycles.
Explanation: Discussed is hidden verb here which can be used directly by avoiding the sentence introduction 'per the discussion held with you' to be less wordy.
9.
Use of linear models may limit unnecessarily the inferences we can draw from the data.
Explanation: Simple vocabulary makes a sentence simple and holds the attention of the reader, like here 'use' in place of 'utilization' looks easy to understand maintains the flow of the sentence. 'Lead to unnecessary limitations' is revised to 'limit unnecessarily' , limit is a hidden verb here making the sentence concise and clear.
10.
This method properly allocates costs.
Explanation: 'Provides proper allocation' is revised to 'properly allocates' to enhance the meaning and understanding of the sentence.
Hence it is concluded that hidden verbs weaken the meaningfulness of a sentence.

Question 2

Review the lists of simplified word choices in Table 4-1. Then, without looking at the list again, write a shorter and/or simpler version of the following words and phrases.
1. i.e.
2. enclosed please find
3. facilitate
4. initiate
5. prior to
6. so as to
7. the major part of
8. make a purchase
9. make an analysis of
10. for the purpose of
11. in the amount of
12. optimum
13. maintain cost control
14. the writer
15. this is to acknowledge

Answer 2

An average sentence should be less than 15 words long. Some times smaller phase is easier to longer phase of words hence, smaller phase of words must be used for making sentence simpler. Hence, the above table shows that the short phrases can be used in the place of long phrases.

Question 3

Identify the jargon in the following sentences.
1. We'll have to research the regs and rules that apply to this problem.
2. Negative cash flows may affect our position with our creditors.
3. SOX requirements have created additional work for our department.
4. The FASB and the SEC, as well as the AICPA, are organizations that concern the profession of accounting.
5. GAAP requires a different treatment of inventory costs.
6. The project's NPV was negative, so it was rejected.
7. My CPA advised me to file a Schedule C with my return.
8. Because of her income this year, she will be able to recapture.
9. Our auditors must follow all requirements of the PCAOB.
10. Credit Cash for $200.

Answer 3

Jargons are the terms used by people from a particular genre specifically related to their area of work. Some are subject specific and cannot be understood by everyone so whenever a jargon specific to a particular subject is used, it is explained in parentheses to make it easily understandable.
Jargons used in the sentences given are as follows:
1.
regs : regulations
Explanation: regs is a jargon used for regulations.
2.
Negative cash flows
Explanation: It is used to specify disparity of income and expenditure. Negative cash flows do not mean loss always, continuing differences in income and expenditure may lead to loss.
3.
SOX : Sarbanes - Oxley Act, 2002
Explanation: It is a regulation to protect the rights of stakeholders and general public from accounting errors and deceitful practices in enterprises.
4.
FASB : Financial Accounting Standards Boards
Explanation: It is a private, non-profit organization, based in Norwalk Connecticut. It creates financial accounting and standards for both public and private sectors corporations following generally accepted accounting principles (GAAP).
The Securities Exchange Commission has recognized FASB as elected accounting standards setter for public corporations
SEC : Securities and Exchange Commission
Explanation: It's the federal government's top agency for market regulation, also protects the investors, maintain fair and orderly practices.
AICPA : American Institute of Certified Public Accountants
Explanation:AICPA is the largest association in the world representing the accounting profession. The members represent various areas like public practice, education, consulting, business and industry, and government.
The ethical and auditing values for private corporations, nonprofit administrations, state, local, state and federal governments are set by AICPA. It also develops and grades the Uniform CPA examination.
5.
GAAP : Generally accepted accounting principles
Explanation: GAAP is a set of principles, and procedures which companies have to follow while preparing their financial statements. It is a combination of authoritative standards and generally accepted ways of reporting and recording information related to accounting, it improves the financial communication.
6.
NPV : Net Present Value
Explanation: It is the difference of cash inflows and outflows comparing the present value of cash to the future cash receipts.
7.
CPA : Certified Public Accountants
Explanation: CPAs are qualified and licensed accountants, the title is awarded after clearing the uniform CPA examination to make sure that only deserving candidates enter the field.
Schedule C
Explanation:Schedule C is a form used to report income or loss from a business operated or a profession as a sole proprietor. An activity whose primary purpose was profit and involvement of the applicant was regular qualifies as a business.
8.
Recapture
Explanation: It means recovering from any losses faced.
9.
PCAOB : Public Company Accounting Oversight Board
Explanation: It's a nonprofit organization recognized by Congress to supervise the audits of public companies to safeguard stakeholders and the public at large by encouraging useful, precise and self-regulating audit reports.
10.
Credit
Explanation:It's a term used for cash or loan taken by an individual or an organization.
Hence, jargons play a crucial role in the formation of a sentence and needs to be properly explained wherever required.

Question 4

The meaning of the following sentences is not clear. Revise the sentences so that they are unambiguous and precise.
1. The unexpected retirement of six auditors created a heavier workload for the remaining staff, causing them to miss several deadlines. This is a problem.
2. The branch office will be located at a new cite.
3. The stock's price dropped by a negligent amount.
4. This product is unique. Only two manufacturers produce it.
5. The HB Transportation Company's improved position is due to decreasing fuel prices and the company's response in increasing prices.
6. Expense recognition states that once a cost expires, we should recognize expense.
7. After calculating the tax effects, the selling price of the property seemed more reasonable.
8. This policy is based on a logical rational.
9. The FASB has not officially written a pronouncement on the handling of requisition costs.
10. These financial statements upset two accounting standards.

Question 5

The following sentences are abstract or vague. Revise them, using facts, details, or examples to make them more concrete. You may need to replace one vague sentence with several concrete sentences, or even a short paragraph. Alternatively, you could introduce a short paragraph with an abstraction and then develop the idea with more concrete, specific sentences. Feel free to invent details that make the ideas more specific.
1. This will be difficult to implement.
2. The financial statements surprised investors.
3. The new legal action is encouraging.
4. Accounting for leases is tricky.
5. Investors were interested in the president's report.
6. The firm sold the asset for its cost. [Hint: What cost ]
7. Morale is a problem.
8. The audit did not satisfy me.
9. I've discovered a shocking thing about our pension plan.
10. Communication is important.

Question 6

Identify the passive-voice constructions in the following sentences and revise them to active voice. Be careful not to substitute weak active verbs for passive voice. For some sentences you may need to invent a subject for the active verb.
Example:
PASSIVE: That alternative could have been followed.
ACTIVE: We (or the firm, our client, McDonough Corporation, etc.) could have followed that alternative.
1. This information was prepared by our research department.
2. No audit work on XYZ's internal control was performed by our firm.
3. Our opinion on the financial statements may have to be modified.
4. These disclosures are required for external reporting,
5. This procedure can easily be implemented.
6. It is recommended that finished parts inventories be physically controlled.
7. Although our computer was purchased last year, it is already obsolete.
8. At the seminar guidelines will be provided for lease accounting.
9. In many college accounting courses effective writing skills are emphasized.
10. The prior years' working papers were reviewed.

Question 7

Identify the prepositional phrases in the following sentences. Where too many phrases are linked together, revise the sentence.
Example:
The problem of our client will be solved through the selection of one of the accounting methods presented.
Prepositional phrases identified:
The problem of our client will be solved through the selection of one of the accounting methods presented.
Revised:
One of the accounting methods should solve our client's problem.
1. The effects of the ruling by the IRS will affect the reported income of XYZ Corporation.
2. The controller of the company called a meeting for 9:00 a.m. to discuss problems with the quarterly financial statements of the company.
3. An accrual of expenses reports a more accurate picture of the operations of the current business period of the company.
4. Improvements of the efficiency of production will change the forecast for income in the year to come.
5. The main problem of the staff is the determination of the cost at which to record the purchase.
6. The effect on our audit report of the sale of the bonds is twofold.
7. The income tax return for Steve Warren was filed on April 10.
8. The calculation of the present values of the principal of the bonds and their cash flows will reveal our risk.
9. The amortization of the discount of the bond will allow us to realize the cash flows of the bond at an even rate throughout the life of the bond.
10. The determination of the net income of the company will pose no problems for the accountants in our department.

Question 8

Read this paragraph aloud and notice how monotonous it sounds. Then revise it so that sentence lengths and structures are more varied. Note also when a word or phrase is repeated too often.
Regional Coach Lines (RCL) runs bus service between several cities in three states. RCL also carries freight for several regional businesses. RCL's financial statements have reported poor profits for several years. Poor profits were caused by increased costs of operations including fuel costs, labor costs, and other costs. Increased costs caused RCL to increase passenger fares and freight prices. These increases caused passenger and freight volume to decrease drastically. Therefore, 2014 was a disastrous year for RCL. Preliminary information shows RCL is on the verge of bankruptcy.

Question 9

Revise the following sentences so that they are more effective, based on the guidelines discussed in this chapter.
1. The CEO made reference to the pension plan in his address.
2. A qualified opinion was issued on the 2014 financial statements.
3. Two weeks of vacation will be taken by new employees.
4. The completion of the project by the due date of next week will challenge the accountants in the department.
5. Wordiness is the problem that makes my writing less effective than it ought to be.
6. This memo provides an explanation of our policies on the use of company email.
7. The auditors came to the conclusion that additional procedures should be performed by them on inventory.
8. There are several benefits that can come from investing in new equipment.
9. Expense recognition states that once a cost expires, we should recognize expense.
10. The option kept the land available until a decision was reached about whether to buy it.

Question 10

Revise the following paragraph, using the techniques covered in the chapter, as necessary.
The purpose of this memo is an attempt to explain the three alternatives that have been proposed for recording the cost of the land that has been purchased by our company. The reasons for the recommendation I decided upon are discussed below along with the strong and weak points of the other proposed alternatives that I do not recommend. If one of these alternatives had been more consistent with GAAP, that alternative could have been followed.