- •What is the main task of accountants?
- •What changes have taken place in accountings? What does the modern accountant look like?
- •4. What should modern accountant be like?
- •5.What is the difference between book-keeping and accounting,book-keeper and accountant?
- •6.What kind of information permits users to make informed judgments and decisions?
- •7.Why do so many users are in need of accounting information?
- •8.What kind of information permits users to make informed judgments and decisions? Why do so many users are in need of accounting information?
- •9.What kind of accounting information does suppliers of goods and services need?
- •10.What kind of accounting information do managers require?
- •11.What kind of accounting information do customers and employees need?
- •12. For what reasons governments may require information concerning a business?
- •13 For what reasons competitors may require information concerning a business?
- •17. What does timeliness of accounting information suggest?
- •18. Why do users compare accounting information produced by different businesses?
- •27. Auditing.
- •28. Internal and external auditors .
- •30. Valuation and measurement.
- •31.Consistency principle of accounting policies.
- •32.What does mean “historical cost principle” ?
- •33. What does mean “current replacement cost”?
- •34.In what way can accounting be defined?
- •35. Why has accounting developed over time? What are the most important conventions of accounting?
- •38. Going concern as the one of the basic accounting concept.
- •39. Materiality and aggregation as the basic accounting concepts.
- •40. Notion of “Assumption”
- •41. The separate entity or business entity assumption and the time-period assumption.
- •42. The continuity or going concern, the unit-of-measure assumption.
- •43. The full-disclosure and the principle of conservatism.
- •44. The objective principle, the revenue recognition and the matching principles.
- •45. Fixed assets and valuation.
- •49. The corporate income tax. Individual income tax
- •Value added tax (vat)
- •51. Social tax . Property tax
33. What does mean “current replacement cost”?
Historical cost and inflation accounting
The aim of accounting standards is to provide shareholders with the information that will allow them to make financial decisions. This one reason why in many countries accounting follows the historical cost principle: companies record the original purchase price of assets, and not their (estimated) current selling price or replacement cost. This is more objective, and the current value is not important if the business is going concern – a successful company that will continue to do business –as its assets are not going to be sold, or do not currently need to be replaced.
34.In what way can accounting be defined?
It has also adapted to meet the needs of users and those needs have changed as commercial life has become more complex. As a result of his development certain rules have emerged in accounting to meet practical needs. These rules or conventions need to be applied, otherwise communication will be damaged in a way.
35. Why has accounting developed over time? What are the most important conventions of accounting?
Accounting is, in effect, a language through which financial and economic information is collected, stored, analyzed, classified and finally, communicated to users. As with what we normally think of as languages (French, English, etc.) accounting has gradually developed over time. The most important of them are often referred to as concepts.
In accordance with International Accounting Standards the basic accounting concepts are: fair presentation, accruals, going concern, consistency, materiality and aggregation.
36. Fair presentation as the one of the basic accounting concept. This concept is the overriding when requirement when preparing financial statements. It means that all financial statements should contain adequate information concerning the financial position of an enterprise. Fair presentation means that all the financial statements should be prepared on the basis of accounting legislation and in the context of normal accounting practices. Apart from that there should be a full disclosure of all the information in order to ensure transparency of financial statements. Extra information must be disclosed if this is necessary to present financial statements fairly.
37. Accruals and Consistency as the basic accounting concepts. Accruals .This concept states that profit or loss for a period is the difference between the total revenues and total expenses for that period rather than between cash receipts and payments for the period. Thus, the accruals concept tends to underpin the matching conventions. Consistency assumes that accounting treatment of like items is the same within each accounting period and from one period to another. It requires similar methods to be used from year to year.