会计英语

张念念

目录

  • 1 Introduction to Accounting
    • 1.1 What is Accounting
    • 1.2 The History and Development of Accounting
    • 1.3 The Role of Accounting
    • 1.4 The Qualitative Characteristics of Financial Information
    • 1.5 Accounting Elements and Accounting Equation
  • 2 Basic Accounting Standards
    • 2.1 Accounting Underlying Assumptions
    • 2.2 Accounting Basis
    • 2.3 Accounting Principles
  • 3 Recording Transactions
    • 3.1 Types of Transactions
    • 3.2 Source Documents
    • 3.3 Accounting Cycle
    • 3.4 The Ledger Accounts
    • 3.5 Chart of Accounts
    • 3.6 Double-Entry Accounting
    • 3.7 Recording Transactions in a Journal
    • 3.8 Posting from Journal to Ledger
    • 3.9 Trial Balance
    • 3.10 Correcting Errors
  • 4 Current and Non-current Asset
    • 4.1 Basic Concepts of Asset
    • 4.2 Current Asset
    • 4.3 Non-current Asset
  • 5 Current and Non-current Liability
    • 5.1 Basic Concepts of Liability
    • 5.2 Current Liability
    • 5.3 Non-current Liability
  • 6 Owner's Equity
    • 6.1 Forms of Business Organization
    • 6.2 Basic Concepts of Stock
    • 6.3 Ordinary Shares and Preference Shares
    • 6.4 Dividend
    • 6.5 Owner's Equity
  • 7 Revenue and Expense
    • 7.1 Revenue
    • 7.2 Revenue from Sales
    • 7.3 Common Types of Transaction
    • 7.4 Expense
  • 8 Basic Financial Statements
    • 8.1 Statement of Financial Position
    • 8.2 Income Statement
    • 8.3 Statement of Cash Flow
  • 9 Financial Management
    • 9.1 Working Captial Management
    • 9.2 Investment Appraisal
    • 9.3 Business Finance
  • 10 Audit and Assurance
    • 10.1 Internal Control
    • 10.2 Substantive Procedure
    • 10.3 Review and Reporting
The Qualitative Characteristics of Financial Information

1.4 Qualitative Characteristics of Financial Information

 Information that is prepared using the same measurement techniques and reported in a similar fashion is considered comparable information because this information is similar and can be judged side by side other similar financial information. It enables users to identify and understand similarities in, and differences among.

In other words, companies shouldn’t bounce between accounting rules and treatments to manipulate profits or other financial statement elements. Accounting methods should be used consistently. 

Understandability 

the quality of information that enables users to perceive 

its significance.

Relevance

deals with the usefulness of financial information to 

users during the decision making process. 

Relevant information has predictive value or confirmatory value, or both.

Reliability 

refers to whether financial information can be verified and used consistently by investors and creditors with the same results. Basically, reliability refers to the trustworthiness of the financial statements.

Comparability 

is a quality of accounting information that addresses the 

usability of financial information.

Consistency 

refers to the principle that companies should use the same accounting methods to record similar transactions over 

time.

Neutrality  

is known as the quality of ‘freedom from bias’ or 

objectivity.

Materiality 

permeates the entire field of accounting and auditing. 

Financial information need or should be communicated in accounting reports-only material information should be 

reported.

Timeliness 

means having information available to decision-makers 

before it loses its capacity to influence decisions.