Informativo

DIALOG
LUIS: Tom, I've found that not always is English as easy as it seems
TOM: Why? Is there anything wrong?
LUIS: No, it's just that sometimes I find that some words are not what 1 thought they were. For example, I thought there was an exposition principle, but it was not «exposition». It was «disclosure».
TOM: Oh, yes. I know what you mean. But the reason is that you are learning anotherlanguage, and each language is unique. You'll find some similarities in comparing Spanish and English, but finally both are different languages and each one has its own grammatical structure and its not always identical
LUIS: Yes, I'm noticing that now. Well at least it'll be worthy learning it.
TOM: Of course, Luis! And don't forget what is your goal.
LUIS: Yes, get the job in SCPA!
SUMMARYA guideline is needed to avoid different sets of accounting practices.
- GAAP are established by the FASB and the SEC.
GAAP are like rules that accountants follow to prepare financial statements.

Some GAAPs are: Entity concept, Reliability, Cost Principle, Going Concern, Monetary. Unit, Matching, Disclosure, Consistency, Materiality, and Conservatism.

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C: Answer thefollowing statements as true or false
1. Accounting information should not always be reliable.
2. Assets should be recorded at their ac.tual cost.
3. It is supposed that the entity will continue for less than a year.
4. Transactions not expressed in money terms are recorded.
5. Accounting procedures should conform with those used before. T
D: Listen carefully and fill inthe blanks
1. It's needed a to avoid each firm working its own way
in accounting.
2. GAAP have been established by the
3. The Accounting Standards Board is one of the entities
which set these standards.
4. It is very important that the accounting information is
and comparable.
5. The entity concept that a firm is separate from the owners.6. The cost principle states that should be recorded at their
actual cost.
7. The states that revenue and expenses must be
compared.
8. The states that accounting procedures should always
be the same.
I 9. The materiality concept relates to the in all the
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financials.


10. The constraint is tochoose the method that won't
overstate assets and income.
Weygandt, Jerry J. y otros (2000) Financial Accounting, New York, JOHN WILEY & SONS, INC. pp. 286-296.
Horngren, Charles T. y otros (1996) Accounting, New Jersey, PRENTICE HALL, pp. 8-10.

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VOCABULARY
1. Acquired adquirido(s)
2. Actual real, verdadero
3.Amount monto
4. Assets activos
5. Assume asumir
6. Avoid evitar
7. Bias prejuicio, predisposición
8. Board comité
9. Bring about producir
10. Capable capaz
11. Concern empresa
12. Conform conformarse
13. Conservatism conservadurismo
14. Consistency consistencia
15.Constraint restricción, [imitación 15. Depended dependiente
17. Disclosure exposición
18. Distinct distinto, claro
19. Doubt duda
20. Enterprise empresa
21. Errors errores
22. Events eventos, casos
23. Expenses gastos, egresos
24. Free libre
25. Fulfill cumplir26. Going en marcha
27. Guideline pauta, lineamiento
28. Holds sostiene
29. Income ganancias
30. Item partida, asiento
31. Law ley
32. Least menos
33. Liabilities pasivos
34. Likely probable
35. Matching equidad, relacionar
36. Materiality materialidad...