会计学原理 快速测试(英文版)

TEST FOR CHAPTER 1-4

注：判断题红色标记句为错句，选择题加下划线选项为正确答案

PART I TRUE OR FALSE

1)Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable,

and comparable formation about an organization's business activities.

2)Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of

internal users.

3)The primary objective of financial accounting is to provide general purpose financial statements to help external users

analyze and interpret an organization's activities.

4)Internal users include lenders, shareholders, brokers and managers.

5)In the partnership form of business, the owners are called stockholders.

6)The business entity principle means that a business will continue operating for an indefinite period of time.

7)As a general rule, revenues should not be recognized in the accounting records until it is received in cash.

8)Accrued expenses at the end of one accounting period are expected to result in cash payments in a future period.

9)The idea that a business will continue to operate until it can sell its assets to pay its creditors underlies the

going-concern assumption.

10)The monetary unit assumption means that all international transactions must be expressed in dollars.

11)The International Accounting Standards Board (IASB) is the government group that establishes reporting requirements

for companies that issue stock to the public.

12)Expenses decrease equity and are the costs of assets or services used to earn revenues.

13) A company might provide a service or product on credit. "On credit" implies that the cash payment will occur on a

later date.

14)Each adjusting entry affects only one or more income statement account and never cash.

15)The legitimate claims of a business's creditors take precedence over the claims of the business owner.

16)Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrued items.

17)From an accounting perspective, an event is a happening that affects an entity's accounting equation, but cannot be

measured.

18)The income statement is a financial statement that shows revenues earned and expenses incurred during a specified

period of time.

19)Chuck Taylor withdrew $6,000 in cash from FastForward. This amount should be included as an expense on the

income statement.

20)Source documents provide evidence of business transactions and are the basis for accounting entries.

21)Items such as sales tickets, bank statements, checks, and purchase orders are source documents.

22)It is not necessary to keep separate accounts for all items of importance for business decisions.

23)Closing entries are necessary so that owner's capital will begin each period with a zero balance.

24)Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business.

25)When a company provides services for which cash will not be received until some future date, the company should

record the amount received as unearned revenue for the amount charged to the customer.

26)Double entry accounting requires that each transaction affect, and be recorded in, at least two accounts.

27)Asset accounts normally have credit balances and revenue accounts normally have debit balances.

28) A transaction that decreases an asset account and increases a liability account must also affect one or more other

accounts.

29)Adjusting entries are used to bring asset or liability accounts to their proper amount and update the related expense or

revenue account.

30)When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will

include a $600 debit to Services Revenue.

31)The journal is known as the book of final entry because financial statements are prepared from it.

32)The closing process takes place after financial statements have been prepared.