ACCOUNTING ASSUMPTIONS AND PRINCIPLES PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 8. ACCOUNTING ASSUMPTIONS AND PRINCIPLES

 

A Assumptions When writing accounts and financial statements, accountants have to follow a number of assumptions, principles, and conventions. An assumption is something that is generally accepted as being true. The following are the main assumptions used by accountants: B Principles The following are the most important accounting principles (as well as the consistency principle and the historical cost principle)   EXERCISES 8.1 Match the accounting assumptions and principles (1-6) to the activities they prevent (a-f). look at A and B opposite to help you. 1 conservatism principle 2 matching principle 3 separate entity assumption 8.2 Complete the sentences. Look at A and B opposite to help you. 1 A company’s _____________ _______________ does not have to begin on 1 January, like the calendar year. 2 If an American company owns a company in Britain, this is a _____________. 8.3 Complete the table with words from A, B and C opposite and related forms. Put a stress mark in front of the stressed syllable in each word. The first one has been done for you. Then complete the sentences below with words from the table. 1 Both the internal and external auditors have to ______________ the accounts. 2 Companies have to ________________ all relevant financial information in their annual reports.

 

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