B. Will you mark out the peculiarities of American and Japanese work management and fill in the following table (copy this table into your copybook)

Text 4 What Are the Basic Accounting Theories?

A. While reading the text find answers to the following questions.

1) What are the basic accounting concepts supposed to underline?

2) What has the accounting profession developed the basic concepts for?

3) What is the basis for all financial accounting?

4) When can the accounting method be changed? When does it never take effect?

5) What does the going concern state?

6) What should be stated in the financial statements in any case?

7) What principle is applied to liabilities and not revenues? Why?

8) What kind of transactions has to be recorded?

9) What facts must.be disclosed in the financial statements?

The basic accounting theories are the basis and fundamental ideas, or assumptions, underlying the practice of financial accounting. These theories are a set of broad rules for all accounting activities and were developed over time by accounting professionals. The accounting profession has evolved and developed these basic concepts (theories) to standardize the way in which companies perform financial accounting in the United States.