Financial English

[Cao Minh]

Good morning!

I am happy to join webketoan community where invaluable knowledge and experience have been shared and tutored. I become much mature in terms of professional and social skill development. I have learnt a lot from the members whom I have never met in person or had face - to -face discussion with. To thank you all for your dedicated work, I’m devoted to develop the thread of Financial English. Hopefully, this thread will be actively welcomed and positively enlarged.


‘There’s a will, there’s a way’
BlessYou

 

[Cao Minh]

Accounting
(Financial English by Ian MacKenzie)

Activity 1 Match up these six accounting principles with the definition below
1.The separate –entity or accounting entity assumption
2.The continuity or going-concern assumption
3.The unit- of – measure assumption
4.The time – period or accounting period assumption
5.The historical cost principle
6.The revenue or realization principle

a.All transactions and other items to be accounted for must be in a single, supposedly stable monetary unit.
b.An enterprise is an accounting unit separate from its owners, creditors, etc.
c.Financial data must be reported for particular (short) periods, which makes accrual and deferral necessary.
d.Revenue is realized at the moment when goods are sold (or change hands) or when services are rendered.
e.The business will continue indefinitely into the future.
f.The initial price paid for the acquisition of assets is the one that is recorded in accounts.

1 2 3 4 5 6

Activity 2 Which principles do these sentences refer to?
1.This accords with a company’s legal status as an artificial person.
2.This implies that the current market value of fixed assets is irrelevant, as they are not for sale.
3.This makes it unnecessary to estimate current market values every year.
4.This means that each company has its own financial year (US: fiscal year)
5.This requires multinational companies to convert their consolidated statements into a single currency.
6.This is why balance sheets often contain an entry for debtors: goods that have been sold, but are not yet paid for.


‘There’s a will, there’s a way’
BlessYou

 

[peter]

Dear Cao Minh,

what you are mention here is principle, asking all your information must be give you a lot of information and times. I hope will explaint to you latter when I am available.

regards,

 

[Cao Minh]

Thank you for your joining the thread.

Keys and explanation will be provided week after week.


'There's a will, there's a way.'
BlessYou

 

[Cao Minh]

Accounting
​

(Financial English by Ian MacKenzie)
​

Activity 1 Match up these six accounting principles with the definitions below

1. The matching principle

2. The objectivity principle

3. The consistency principle

4. The full- disclosure principle

5. The principle of conservatism (or prudence)



a. All data recorded should be verified and free from bias.

b. Financial reporting must include all significant information.

c. The revenues generated in an accounting period are identified with related costs whenever they were incurred.

d. The same methods (of inventory valuation, depreciation, etc.) must be used from one period to the next.

e. Where alternative accounting methods are possible, one understates rather than overstates profits.

1

2

3

4

5

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Activity 2 Which principles do these sentences refer to?

1. This is the contrary of recording ‘below- the-line’ items.

2. This is one of the justifications for historical cost accounting, which requires no subjunctive assessments of replacement values.

3. This leads to the accrual (accumulation) and deferral (postponements) of costs.

4. This means that insignificant trivial expenses, like each pencil or typewriter ribbon, need not to be accounted for separately, but are exempted by the principle of materiality.

5. This prevents companies selecting methods according to the inflation rate, etc.