1.6　Accounting Principles

The following are eight generally accepted principles:

Cost Principle.The Cost Principle specifies that cash-equivalent cost is the most useful basis for the initial accounting of the elements that are recorded in the accounts and reported on the financial statements.For example，an asset may be acquired with a debt given as settlement.Cost in this instance is the present value of the amount of cash to be paid in the future.The Cost Principle provides guidance at the original recognition date.

Realization Principle.The Realization or Revenue Principle specifies when revenue should be recognized in the accounts and reported in the financial statements.Revenue is measured as the market value of the resources received or the product or service given.The Realization or Revenue Principle requires that all the discounts be viewed as adjustments of the amount of revenue earned.For example，in determining the cash exchanging value of sales subject to a discount，sales discount should be subtracted from gross sales revenue is measuring the net amount of sale revenue.

Matching Principle.A major objective of accounting is the determination of periodic net income by matching appropriate costs against revenue.The principle recognizes that streams of revenues continually flow into a business，and it requires a.there be a precise“cutoff”in these stream at the end of an accounting period，b.the inflows of the period be measured，c.the costs incurred into the securing the inflows be determined，and d.the sum of the costs be deducted from the sum of the inflows to determine the period's net income.

Objectivity Principle.The Objectivity Principle holds that changes in account should be supported to the fullest extent possible by objective evidence.Bargained transactions supported by verifiable business documents originating outside the business are the best objective evidence obtainable;and whenever possible，accounting data should be supported by such documents.

Full-disclosure Principle.The Full-disclosure Principle requires that the financial statements of a business clearly report all the relevant information about the economic affairs of the enterprise.This principle rests upon the primary characteristic of relevance.Full disclosure requires a reporting of all information that can make a difference in a decision and that the accounting information reported must be understandable.Full disclosure also requires that the major accounting policies and any special accounting policies used by the company be explained in the notes to the financial statements.

Consistency Principle.In many cases two or more methods or procedures have been derived in accounting objective.While recognizing the validity of different methods under varying circumstances，it is still necessary in order to ensure a high degree of comparability in any concern's accounting data to insist one consistent application in the company of any given accounting method，period after period.It is also necessary to insist that any departures from this doctrine of consistence be fully disclosed in the financial statements.

Principle of Conservatism.The Principle of Conservatism holds that the accountant should be conservative in his or her estimates and opinions and in the selection of procedures.Balance sheet conservatism commonly resulted in over conservatism，which in turn resulted in an understatement of asset and equity amounts，or an overstatement of costs.

Principle of Materiality.A strict adherence to accounting principles is not required for times of little significance.Consequently，the accountant must always weigh the costs of complying with an accounting principle against the extra accuracy gained thereby;and in those situations where the cost is relatively great and the lack of compliances will have no material effect on the financial statements，compliances is not necessary.As a guide，the amount of an item is material if its omission，in the light of the surrounding circumstances，makes it problem that the judgment of a reasonable person would have been changed or influenced.

Words＆Expressions

1.1

be dated back回溯到

clay tablets黏土片

Mesopotamians美索不达米亚人

ancient civilization古代文明

alike类似的

profound丰富的

preservation储存;保护

Franciscan方济各会

monk僧人

comprehensive全面的

double-entry复式计账

bookkeeping system簿记系统

the Industrial Revolution工业革命

generate产生

large amounts of大量的

capital资金，资本

enterprise企业

supplant取代

individual个人的

craftsmen工匠

corporate公司的

entrust to委托……给……

operation运作

content内容

target目标

expand扩大

Chartered Accountant特许会计师

be acknowledged as被认为是……

designed to被设计用来……

accumulate积累

thanks to归因于

telecommunication远程通信

time-consuming耗时间的

handle处理

in addition to除了

microcomputer微机

assist with辅助以……

financial application财务应用

correspondence一致

manual system手工(记账)系统

1.2

entity实体

interpret解释

classify分类

summarize总结

monetary unit货币单位

criterion标准

primarily主要地;首先地

decision-making process决策过程

illustrate解释;阐述

identify确定

accountant会计师，会计员

1.3

assemble收集

objectively客观地

free from免于

bias偏见

inconsistency不一致

financial accounting财务会计

standard标准

impart传递;传授

generally accepted accounting principle

(GAAP)(美国)一般公认会计准则

the International Accounting Standard

Committee(IASC)国际会计准则委员会

Mexico墨西哥

Netherlands荷兰

promote提升;晋级

observation贯彻，执行

the International Accounting Standards

Board(IASB)国际会计准则理事会

restructuring effort工作重组

assume all responsibilities承担所有责任

previously先前的

carried out承担

disband遣散，解散

private私人的

uniform standards统一标准

achieve实现

1.4

specialized field专业领域

financial accounting财务会计

management accounting管理会计

cost accounting成本会计

environmental accounting环境会计

tax accounting税务会计

international accounting国际会计

not-for-profit accounting非营利会计

social accounting社会会计

external外部的

option选项

principal主要的

creditor债权人

governmental agencies政府机构

is related to与……相关

the internal accounting内部会计

performance evaluation表现评估

relevant相关的

timely及时地

stockholder股东

invest投资

differ不同于

essential主要的

variability类型

competitive竞争的

availability适用

evaluation评价

1.5

postulation假设

unfamiliar situation不熟悉的情况

procedure过程

account for说明;解释

the Business Entity Concept会计主体

假设

separate分开的

the Ongoing-Concern Concept持续经

营假设

evidence证据

to the contrary正好相反

assume假设

reasonable有理由的

the life expectancy使用寿命

the Stable-Dollar Concept币值稳定假设

trace跟踪;追踪

commitment承诺

reinvest再投资

gross总的;毛的

recapture重温;再次体验

excess过度

concede承认

subjectively主观地

constantly不断地

balance sheet资产负债表

commit拨出，调配

the Time-Period Concept会计分期假设

be divided into分为

relatively相对地

precisely精确地

last transactions最后的交易

converted to转化为

1.6

Cost Principle历史成本原则

specify详述

equivalent平衡

initial首先的

statement报表

in this instance以……为例

guidance指导

original recognition date原始确认日期

Realization Principle收入实现原则

market value市场价值

adjustment调节

determining决定性的

exchanging交易

discount折扣

be subtracted from从……减去

gross sales revenue总销售收入

sale revenue销售收入

Matching Principle配比原则

major objective主要目标

net income净收入

match against与……相比较

appropriate合适的

stream趋势

flow into流入

precise精确的

cutoff终止，截止

incur into发生

securing(使)获得

be deducted from从……中扣除

Objectivity Principle客观性原则

to the fullest extent最大程度上

bargain做交易

transaction交易(经济业务)

verifiable能作证的

document凭证

Full-disclosure Principle完全披露原则

the economic affairs经济事件

relevance相关性

make a difference in在……方面造成

不同

understandable可理解的

disclosure揭露

Consistency Principle一致性原则

case案例

derive来自

validity效力

under varying circumstances在变化的

情况下

ensure确保

comparability可比较性

consistent一贯的

departure from不符合

doctrine教条，原则

consistence一致性

Principle of Conservatism谨慎性原则

estimate估计

result in结果是

in turn反过来又会

understatement低估

equity权益

overstatement高估

Principle Materiality重要性原则

a strict adherence to严格遵循

accounting principles会计原则

significance重要性

consequently因此

weigh against与……相比

comply with与……一致

extra accuracy特别精确

thereby因此

compliance遵守

material物质的;实质性的

omission忽略

in the light of从……来看

Notes

1.Similarly，in ancient civilization of China，Babylon，Greece，and Egypt，the alike earliest information records were also profound in preservation.与此类似，在中国、巴比伦、希腊和埃及这些文明古国，也有保存丰富的最早的信息记录。该句为简单句。由介词in引导的部分为介词短语作状语。

2.This need resulted in the corporate form of organization marked by absentee owners，or investors，who entrusted their money to managers.这种需要产生了公司的组织形式，公司这种形式的特征是所有人或投资者不参与直接经营，而是把资金交给管理者，授予他们经营。该句为主从复合句。主句的谓语是resulted in，而marked by是分词短语作定语，修饰前面的organization;由who引导的部分为非限制性定语从句，修饰先行词investors。

3.Thanks to telecommunications，time-consuming accounting tasks when done by hand are handled quickly and easily by computer.由于远程通信技术的发展，本来由手工完成、耗时的会计任务可以快速而轻松地通过计算机来处理。该句为简单句。主语是time-consuming accounting tasks，句中when done by hand为分词短语作状语，修饰tasks，句首的Thanks to为名词短语作状语。

4.It is an information system of interpreting，recording，measuring，classifying，summarizing，reporting and describing business economic activities with monetary unit as its main criterion.会计是以货币为主要计量单位来解释、记录、测量、分类、汇总、报告和描述经济活动的信息系统。该句为简单句，主系表结构。其表语部分带有多个由of引起的介词结构短语作定语，修饰system;其中由and连接的describing business economic activities又带有一个with结构作状语。

5.Accounting is also called“language of business”，because it is the means by which most business information is communicated.因为会计是大多数商业信息进行沟通的方法，所以又被称为“商业的语言”。该句为主从复合句。主句为主谓宾结构，从句由连词because引导，表示原因;在该原因状语从句中，又带有一个“介词+关系代词”的定语从句，修饰means。

6.These needs determine which economic data and activities are recorded by the accounting system.这些需要决定哪些经济数据和活动应该被会计系统记录。该句为主谓结构。主语为these needs，谓语为determine，后面为省掉that的宾语从句，在句中作宾语。

7.Financial accounting information must be assembled and reported objectively so as to be useful.财务会计信息组成和报道必须客观，这样的信息才是有用的。该句为简单句。so as to be useful是不定式短语作状语。

8.For this reason，financial accounting relies on certain standards or guides that have proved useful over the years in imparting economic data.出于这个原因，财务会计有赖于一定的标准或指南，多年来这些标准或指南在传达经济信息方面已被证明非常有用。该句为主从复合句。由that引导的是定语从句，修饰先行词guides。

9.Although now supported by more than 100 nations，the development of uniform standards has been an almost impossible objective to achieve.虽然现在有100多个支持国，但是要制定统一的标准几乎是不可能实现的目标。该句为简单句。Although now supported by为分词短语作状语。

10.Financial accounting is concerned with reporting to external parties an organization's financial option，changes in that position and results of the organization.财务会计给外部单位报告企业组织的财政选项、某一职位的变化以及组织的结果。该句为简单句。属主谓宾结构，其宾语为三个并列成分，即:①an organization's②changes in that position③results of the organization。

11.The focus of management accounting is providing managers with relevant and timely information and reports.管理会计的重心在于向管理者提供有关并及时的信息和报告。该句为简单句。句中provide sb.with sth.为固定表达，意为“向某人提供某物”。

12.The following postulations and principles provide general descriptions of existing accounting practices，which help accountants analyze unfamiliar situations and develop procedures to account for those situations.下面的假设与原则提供了现有会计处理惯例总的描述，这些描述帮助会计人员分析不熟悉的情况并开发对这些情况进行解释的程序。该句为主从复合句。which引导的非限制性定语从句修饰先行词descriptions。

13.Unless there is strong evidence to the contrary，it is assumed that a business will continue to operate as a going concern，earning a reasonable profit for a period longer than the life expectancy of any of its assets.除非有确凿的相反证据，否则将会认为企业是持续经营的，企业在超过任意资产使用寿命的经营期间赚取合理的利润。该句为主从复合句，由unless引导的是条件状语从句，主句是由it作形式主语的句子，真正的主语是that引导的从句，在该主从复合句中，有多个并列成分作operate as的宾语，并带有一个longer than的比较状语。

14.Therefore，it is recognized that a balance sheet prepared under this concept simply shows the number of dollars received from all sources and shows where these dollars are committed.因此，在币值稳定的假设下，资产负债表只能简单地反映资金的来源与用途。该句为主从复合句，从句为that引导的主语从句，在该主语从句中，过去分词短语prepared under this concept为定语，修饰主语a balance sheet，主语从句的谓语有两个shows，第一个shows之后接的是宾语，第二个shows后接的是由where引导的地点状语从句。

15.Yet，it is generally agreed that earning cannot be measured precisely over a short period and that it is impossible to learn the exact earnings of a business until it has completed its last transactions and converted all its assets to cash.然而，人们一致认为在一个较短的会计期间不能准确地计量经营成果，除非企业完成它的最后一笔交易并把所有资产转化为资金，否则不可能知道企业的精准收入。该句为并列复合句。由连接词and将两个带有形式主语的主语从句连接在一起，第二个分句之后又带有一个由until引导的时间状语从句。

16.The Cost Principle specifies that cash-equivalent cost is the most useful basis for the initial accounting of the elements that are recorded in the accounts and reported on the financial statements.历史成本原则是指企业的各种资产应按照其取得时所实际支付的现金及其他等价物入账并在财务报表上反映。该句为主从复合句，主句的主语为The Cost Principle，谓语动词为specifies，that引导的从句为宾语从句，在该宾语从句中，系动词is之后的表语又带有一个由关系代词that引导的定语从句，修饰其先行词。

17.The full-disclosure principle requires that the financial statements of a business clearly report all the relevant information about the economic affairs of the enterprise.完全披露原则要求企业财务报表应该清楚地报告企业经济活动的所有相关信息。该句为主从复合句，主句主语为The Full-disclosure Principle，谓语为requires，宾语由that引导的整个从句来担当。因为有requires一词，故宾语从句中用了“should+动词原形”的虚拟式，而should又往往被省略，故report用了动词原形。

18.While recognizing the validity of different methods under varying circumstances，it is still necessary in order to ensure a high degree of comparability in any concern's accounting data to insist one consistent application in the company of any given accounting method，period after period.为了确保不同会计期间会计资料的高度可比性，在确定不同环境下不同跨级处理方法的有效性时，仍有必要坚持一致性原则。该句为简单句。While recognizing是分词短语作状语，主句中的主语it是形式主语，真正的主语应该是in order to这一不定式短语，该不定式短语中又带有多个修饰成分，修饰不同的词组。

19.Consequently，the accountant must always weigh the costs of complying with an accounting principle against the extra accuracy gained thereby;and in those situations where the cost is relatively great and the lack of compliances will have no material effect on the financial statements， compliances is not necessary.因此，会计人员必须在遵守会计原则与保持精确性之间进行权衡。在会计核算的成本相对很大，而且不完全遵守会计原则对会计报表并无实质性影响的情况下，完全遵守会计原则是不必要的。该句为并列复合句，由分号和and连接两个句子。在第一个分句的末尾，gained thereby是分词短语作定语，修饰前面的accuracy，而where the cost is relatively great and the lack of compliance will have no material effect on the financial statements可以看作由where引导的定语从句，修饰前面的situations。

Exercises

1.For each of the following，which choice—(A)，(B)，(C)，or(D)—should be inserted in the blank to make a correct statement?

(1)The Realization Principle indicates that revenue usually should be recognized and recorded in the accounting record，_______.

A.when goods are sole or services are rendered to customers

B.when cash is collected from customers

C.at the end of the accounting period

D.only when the revenue can be matched by an equal dollar amount of expenses

(2)Which of the following concepts belongs to accounting assumption?_______.

A.Conservation　B.Money measurement

C.Materiality　D.Consistency

(3)The Matching Principle_______.

A.applies only to situations in which a cash payment occurs before an expense is recognized

B.applies only to situations in which a cash receipt occurs before revenue is recognized

C.is used in accrual accounting to determine the proper period for recognition of expenses

D.is used in accrual accounting to determine the proper period in which to recognize revenue

2.Classify each of the following statements as True or False.

(1)Accounting provides financial information that is only useful to business management.(　)

(2)The accounting reporting period agrees to the calendar year.(　)

(3)The accounting process generates financial reports for both“internal”and“external”users.(　)

3.Translate the following terms into Chinese.

(1)entity

(2)ongoing concern

(3)Time-Period

(4)realization

(5)comparability

(6)keeping-up

(7)accrual basis

(8)conservatism

(9)profit cost and capital cost

(10)objectivity

(11)relativity

(12)consistency

(13)full-disclosure

(14)matching

(15)cost

(16)materiality

课文翻译