ACCOUNTING: STANDARDS, POLICIES,

ASSUMPTIONS, PRINCIPLES

PROFESSIONAL ENGLISH IN USE:FINANCE

Units 7, 8

1. What is the purpose of accounting standards?2. Why are there different accounting policies?3. What is the difference between GAAP and IFRS?4. What is the consistency principle?5. How are accounting policies disclosed to

shareholders?6. What kind of effect can depreciation, valuation

of stock and provisions have on the final profit figure?

7. How are assets valued according to the historical cost principle and replacement cost accounting?

9. Explain the following assumptions that accountants use:

a)separate-entity (business entity assumption)b)time-period assumptionc) going-concern assumptiond)unit-of-measure assumption

10. Explain the following accounting principles: a)Consistencyb)Historical costc) Full-disclosured)Materialitye)Conservatismf) Objectivityg)Revenue recognitionh)Matching p. 21, 23

DEPRECIATION AND AMORTIZATION

Investopedia videosPROFESSIONAL ENGLISH

IN USE:FINANCEUnit 9

1. What is the difference between fixed and current assets?

2. What happens to fixed assets over time?3. How are fixed assets depreciated?4. Is land usually depreciated?5. Which methods of revaluation of appreciating

fixed assets do you know?6. In which countries is appreciation only recorded?7. What is the straight-line method of

depreciation?8. What is accelerated depreciation?9. How is accelerated depreciation an incentive to

businesses?p. 25