会计专业英语名词解释

会计专业英语名词解释

Chapter 1

1. Accounting: Accounting is the process of identifying, measuring, recording, and

communicating economic information to permit informed judgments and decisions by users of the information.

2. Accrual basis accounting: Accrual basis accounting refers to an accounting method

that records financial events based on economic activity rather than financial activity.

Under accrual accounting, revenue is recorded when it is earned and realized, regardless of when actual payment is received. Similarly, expenses are matched with revenue regardless of when they are actually paid.

3. Balance sheet: Balance sheet is the financial statement showing the financial position

of an entity by summarizing its assets, liabilities, and owner’s equity at one sp ecific date.

4. Business entity: Business entity refers to an economic unit that controls resources,

incurs obligations, and engages in business activities.

5. CAS: Chinese Accounting Standards refer to the accounting concepts, measurement

techniques, and standards of presentation used in financial statements made by the PRC Financial Apartment.

6. Cash basis accounting: Cash basis accounting is a method of bookkeeping that

records financial events based on cash flows and cash position. Revenue is recognized when cash is received and expense is recognized when cash is paid out.

7. Conservatism: Conservatism states that when alternative accounting valuations are

equally possible, the accountant should select the one that is least likely to overstate assets and income in the current period.

8. Consistency: Consistency means that a company uses the same accounting

principles and methods from year to year.

9. Continuity: Continuity refers to an accounting assumption, also known as the

going-concern assumption, that the company will continue to operate in the near future, unless substantial evidence to the contrary exists.

10. Corporation: Corporation is a business organized as a separate legal entity under

state corporation law and having ownership divided into transferable shares of stock.

11. Cost principle: Cost principle is a widely used principle of accounting for assets at their

original cost to the current owner.

12. Financial accounting: Financial accounting refers to the development and use of

accounting information describing the financial position of an entity and the results of its operations.

13. Financial position: Financial position refers to the financial resources and obligations

of an organization, as described in a balance sheet.

14. Financial reporting: Financial reporting refers to the process of periodically providing

“general-purpose”financial information (such as financial statements) to persons outside the business organization.

15. Financial statements: Financial statements refer to the four related accounting reports

the summarize the current financial position of an entity and the results of its operations for the preceding year ( or other time period).