会计英语第二章解答.ppt

CHAPTER 2 Accounting Standards;What Govern Accounting Practice?;2.1 Accounting Assumptions;2.1 Accounting Assumptions;2.1 Accounting Assumptions;independent of 不依赖的，不受...支配的;identified 经鉴定的，被认定的;1. Separate Entity Assumption; ABC Company; suppose ABC company is a business entity, and Ann Schmidt is its owner. Ann withdraws $100 from the business. In preparing financial accounts for ABC company, we should record the effect of this withdrawal on the accounts of (Ann Schmidt/the entity) ; Ann Schmidt withdraws $100 from ABC Company, of she is the sole owner. Schmidt now has $100 more cash, but she has $100 less equity in ABC Company. ;What about ABC Company? It now has ($100 more/the same amount/$100 less) in assets.; The accounting entity is, therefore, identified as the smallest unit of activity with self-contained accounting system.;failure 破产 （ liquidate 清算）;2. going-concern assumption; The assumption does not refer simply to its continued existence, it also assumes that it will continue in the same lines of business as those in which it is currently involved.;3. Monetary Unit Assumption; add 加 subtract 减; In financial accounting, an entity’s transactions are recorded in the accounts in the monetary unit of the country in which it is operating; In the first place, transactions must be expressed in money terms before they can be recorded in the accounts, this assumption means that many important aspects of a modern business’s operations cannot be embodied in the financial statements. ; second, the price of the monetary unit is variable, with which the purchasing power is varied with the inflation or deflation, but those changes would be ignored in accounting conventions