会计英语课后题
(完整版)会计英语课后习题参考答案解析
Suggested SolutionChapter 11.3.4.5.(a)(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease Prepaid Insurance -CRf.To decrease Cash - CRg.To increase Utilities Expense -DRh.To increase Fees Earned -CRi.To increase Store Equipment -DRj.To increase Owner, Withdrawal -DR2.a.Cash 1,800Accounts payable ........................... 1,800 b.Revenue ..................................... 4,500Accounts receivable ................... 4,500 c.Owner’s withdrawals ........................ 1,500Salaries Expense ....................... 1,500 d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,000 4.1. $388,4002. $22,5203. $366,6004. $21,8005.1. net loss for the year ended June 30, 2002: $60,0002. DR Jon Nissen, Capital 60,000CR income summary 60,0003. post-closing balance in Jon Nissen, Capital at June 30, 2002: $54,000Chapter 31. Dundee Realty bank reconciliationOctober 31, 2009Reconciled balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 27.73. (a) As a whole: the ending inventory=685(b) applied separately to each product: the ending inventory=6254. The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 41. (a) second-year depreciation = (114,000 – 5,700) / 5 = 21,660;(b) second-year depreciation = 8,600 * (114,000 – 5,700) / 36,100 = 25,800;(c) first-year depreciation = 114,000 * 40% = 45,600second-year depreciation = (114,000 – 45,600) * 40% = 27,360;(d) second-year depreciation = (114,000 – 5,700) * 4/15 = 28,880.2. (a) weighted-average accumulated expenditures (2008) = 75,000 * 12/12 + 84,000 * 9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000(b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 – 60,000) * 10% =49,5003. (1) depreciation expense = 30,000(2) book value = 600,000 – 30,000 * 2=540,000(3) depreciation expense = ( 600,000 – 30,000 * 8)/16 =22,500(4) book value = 600,000 – 30,000 * 8 – 22,500 = 337,5004. Situation 1:Jan 1st, 2008 Investment in M 260,000Cash 260,000June 30 Cash 6000Dividend revenue 6000Situation 2:January 1, 2008 Investment in S 81,000Cash 81,000June 15 Cash 10,800Investment in S 10,800December 31 Investment in S 25,500Investment Revenue 25,5005. a. December 31, 2008 Investment in K 1,200,000Cash 1,200,000June 30, 2009 Dividend Receivable 42,500Dividend Revenue 42,500December 31, 2009 Cash 42,500Dividend Receivable 42,500 b. December 31, 2008 Investment in K 1,200,000Cash 1,200,000December 31, 2009 Cash 42,500Investment in K 42,500 Investment in K 146,000 Investment revenue 146,000 c. In a, the investment amount is 1,200,000net income reposed is 42,500In b, the investment amount is 1,303,500Net income reposed is 146,000Chapter 51.a. June 1: Dr: Inventory 198,000Cr: Accounts Payable 198,000 June 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000 June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100 Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Notes Payable 498,000Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000 Interest Payable 12,100Interest Expense 7,700Cr: Cash 217,800For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825Cr: Cash 327,0002.(1) 20⨯8 Deferred income tax is a liability 2,400 Income tax payable 21,60020⨯9 Deferred income tax is an asset 600Income tax payable 26,100(2) 20⨯8: Dr: Tax expense 24,000Cr: Income tax payable 21,600 Deferred income tax 2,400 20⨯9: Dr: Tax expense 25,500Deferred income tax 600Cr: Income tax payable 26,100 (3) 20⨯8: Income statement: tax expense 24,000Balance sheet: income tax payable 21,600 20⨯9: Income statement: tax expense 25,500Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))b. 7.8% (20000000*12 %* (1-35%)/20000000)4.5.Notes Payable 14,400 Interest Payable 1,296 Accounts Payable 60,000+Unearned Rent Revenue 7,200 Current Liabilities 82,896Chapter 61. Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15Organization Expense 50,000Common Stock 50,000Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2. July.1Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d. Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation pay a fixed amount of dividends on preferred stock.The 7% cumulative term indicates that the investors earn 7% fixed dividends.b. 7%*120%*20,000=504,000c. If corporation issued debt, it has obligation to repay principald. The date of declaration decrease the stockholders’ equity; the date of record and the date of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 12,500e. June 30Retained Earnings 37,500Common Stock 25,000Additional Paid-in Capital 12,500To record issuance of 10% stock dividend: 10%*25,000=2,500 shares;2500*$15=$37,500f. Dec. 31Depreciation Expense 14,000Accumulated Depreciation 14,000Original depreciation: $40,000/40=$10,000 per year. Book value on Jan.1, 2009 is $350,000(=$400,000-5*$10,000). Deprecation for 2009 is $14,000(=$350,000/25). g. The company does not need to make entry in the accounting records. But the amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:Year 1Inventory............................................... 480,000 Cash/Accounts payable ............................... 480,000 To record purchase of inventoryInventory............................................... 124,000 Cash/Accounts payable ............................... 124,000 To record refurbishment of inventoryAccounts receivable ..................................... 310,000 Sales revenue ....................................... 310,000 To record sale of goods on accountCost of goods sold ...................................... 220,000 Inventory ........................................... 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ..................................... 15,500* Allowance for sales returns (B/S) ................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ........................................ 31,000* Provision for warranties (B/S) ...................... 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns ............................. 12,400 Accounts receivable ................................. 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) .......................... 18,600 Cash/Accounts payable ............................... 18,600 To record expenditures in year 1 for warranty workCash ................................................... 297,600*Accounts receivable ................................. 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) .......................... 8,400 Cash/Accounts payable ............................... 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, the following journal entries would be used to record the transactions for the two years:Year 1Inventory............................................... 480,000 Cash/Accounts payable ............................... 480,000 To record purchase of inventoryInventory............................................... 124,000 Cash/Accounts payable ............................... 124,000 To record refurbishment of inventoryAccounts receivable ..................................... 310,000 Inventory ........................................... 220,000 Deferred gross margin ............................... 90,000 To record sale of goods on accountDeferred gross margin ................................... 12,400 Accounts receivable ................................. 12,400 To record return of goods within the 30-day return period. It is assumed the goods have no value and are disposed of.Deferred warranty costs (B/S) ........................... 18,600 Cash/Accounts payable ............................... 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred are deferred because the related revenue has not yet been recognizedCash ................................................... 297,600* Accounts receivable ................................. 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................. 8,400 Cash/Accounts payable ............................... 8,400 To record warranty costs incurred in year 2 related to year 1 sales. The warranty costs incurred are deferred because the related revenue has not yet been recognized.Deferred gross margin ................................... **77,600Cost of goods sold ...................................... 220,000 Sales revenue ....................................... 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold at expiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ........................................ 27,000* Deferred warranty costs ............................. 27,000 To record recognition of warranty expense at same time as related sales revenue recognition* $18,600 + $8,400Requirement 3Allied Auto Parts Inc. might choose to recognize revenue only after the warranty period has expired if they are not able to make a good estimate, at the time of sale, of the amount of warranty work that will be required under the terms of the one-year warranty. If Allied is not able, at the time of sale, to make a good estimate of the warranty work that will be required, then the measurability criterion of revenue recognition is not met at the time of sale. The measurability criterion means that the amount of revenue can be reliably measured. If the seller is not able to estimate the amount of work that will have to be done under the warranty agreement, then it is not able to reasonably measure the profit that it will eventually earn on the sales. The performance criteria might also be invoked here. The performancecriterion means that the seller has transferred the significant risks and rewards of ownership to the buyer. As long as there is warranty work to be performed after the sale that is the responsibility of the seller, you might argue that performance is not substantially complete. However, if the seller was able to reliably estimate the amount of warranty work, then performance would be satisfied on the assumption that we could measure the risk that remains with the seller, and make a provision for it.2.Percentage-of-completion method:The first step in applying revenue recognition using the percentage-of-completion method (using costs incurred to date compared to estimated total costs to determinethe percentage of completion) is to estimate the percentage of completion of the project at the end of each year. This is done in the following table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%Once the percentage of completion at the end of each year has been calculated as above, the next step is to allocate the appropriate amount of revenue to each year, based on the percentage completed to date, less what has previously been recordedin revenue. This is done in the following table (in $000s):2005 2006 20072005 $20,000 × 30%$ 6,0002006 $20,000 × 70%$ 14,0002007 $20,000 × 100%$ 20,000 Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction project would be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under the percentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress ....... 5,400 7,550 5,850 Cash, payables, etc. 5,400 7,550 5,850 2. Progress billings:Accounts receivable ..... 3,100 4,900 12,000 Progress billings ... 3,100 4,900 12,000 3. Collections on billings:Cash .................... 2,400 4,000 12,400 Accounts receivable . 2,400 4,000 12,400 4. Recognition of profit:Construction in progress 600 450 150Construction expense .... 5,400 7,550 5,850 Revenue from long-termcontract .......... 6,000 8,000 6,000 5. To close construction in progress:Progress billings ....... 20,000 Construction in progress 20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 450 $ 1503.a. The three criteria of revenue recognition are performance, measurability, andcollectibility.Performance means that the seller or service provider has performed the work.Depending on the nature of the product or service, performance may mean quitedifferent points of revenue recognition. For example, for the sale of products,IAS18 defines performance as the point when the seller of the goods hastransferred the risks and rewards of ownership to the buyer. Normally, this meansthat performance is done at the time of sale. Although the seller may haveperformed much of the work prior to the sale (production, selling efforts, etc.),there is still significant risk to the seller that a buyer may not be found.Therefore, from a reliability point of view, revenue recognition is delayed untilthe point of sale. Also, there may be significant risks remaining with the sellerof the product even after the sale. Warranties given by the seller are a riskthat remains with the seller. However, if this risk can be reliably estimatedat the time of sale, revenue can be recognized at the point of sale. Performanceis quite different under a long-term construction contract. Here, performancereally is considered to be a measure of the work done. Revenue is recognizedover the production period as the work is performed. It is intended to reflectthe amount of effort expended by the seller (contractor). Although legal titlewon’t transfer to the buyer until the project is completed, revenue can berecognized because there is a known and committed buyer. If the contractor is not able to estimate how much of the work has been done (perhaps because he or she can’t reliably estimate how much work must still be done), then profit would not be recognized until the extent of performance is known.Measurability means that the seller or service provider must be able to reliably estimate the amount of the revenue from the sale or service. For the sale of products this is generally known at the time of sale (the sales price is set).However, if the seller provides a return period, it may be necessary to estimate the volume of returns at the time of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurance that the sales price will actually be collected. In most cases for the sales of products, the seller is able to recognize revenue at the time of sale even if the sale is on account. This is because the seller has experience with its customers and is able to estimate reliably the risk of non payment.As long as the seller is able to make this estimate, it is appropriate to recognize the revenue but to offset it with a provision for possible non collection. If the seller is unable to make reliable estimates of future collection of amounts owing, the recognition of revenue would be delayed until the cash is actually received. This is what is done using the instalment sales method of revenue recognition.b. Because of the performance criterion of revenue recognition, it would seem to be most appropriate to recognize most revenue as the seller or service provider performs the work. This would be the best measure of performance. This would mean, for example, that sellers of products would recognize their revenue over the whole production, selling, and post sales servicing periods. As we saw above, this is not commonly done because, in many cases, there are still significant risks that are retained by the seller (risk of not being able to sell the product, for example). There are also measurement risks (knowing the selling price) that exist prior to the sale. The percentage-of-completion method of revenue used for some long-term construction contracts would seem to most closely recognize revenue as the work is performed. As mentioned in Part 1, we are able to recognize revenue on this basis since a contract exists which commits the purchaser to buy the project (assuming certain conditions are met) and the sales price is known because of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:Manuals and initial lessons (200 × $100)$ 20,000 Additional lessons ((200 × 8) × $30)48,000 Examinations ((200 × 80%) × $130)20,800 Total sales revenue 88,800Cost of sales:Manuals and initial lessons (200 × ($15 + $3))3,600 Additional lessons ((200 × 8) × $3))4,800 Examinations ((200 × 80%) × $30)4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000)36,000Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division2,100,000$ 3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effect Payment of long-term debt. financingAcquisition of building by issuance of common stock. no effect Accrual of salary expense. no effect2.(a) Cash received from customers = 816,000(b) Cash payments for purchases of merchandise. =468,000(c) Cash payments for operating expenses. = 268,200(d) Income taxes paid. =36,9003.Cash sales …………………………………………... $9,000 Payment of accounts payable ………………………. -48,000Payment of income tax ………………………………-13,000Payment of interest ……………………………..…..-16,000 Collection of accounts receivable ……………………93,000 Payment of salaries and wages ………………………..-34,000 Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000 Add: increases in current liabilities 180,000 Net cash flows from operating-200,000Investing activitiesSale of land -50,000 Purchase of PPE -1,500,000Net cash flows from investing-1,550,000Financing activitiesIssuance of common shares 400,000 Payment of cash dividend -50,000 Issuance of non-current liabilities 1,000,000 Net cash flows from financing1,350,000Net changes in cash-400,0005.。
会计英语课后习题参考答案解析(可编辑修改word版)
Suggested SolutionChapter 12.3.Describe each transaction based on the summary above.4.5.(a)(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease Prepaid Insurance -CRf.To decrease Cash - CRg.To increase Utilities Expense -DRh.To increase Fees Earned -CRi.To increase Store Equipment -DRj.To increase Owner, Withdrawal -DR2.a.Cash 1,800Accounts payable ............................ 1,800 b.Revenue ......................................Accounts receivable ....................c. 4,5004,500Owner’s withdrawals........................ 1,500Salaries Expense ....................... 1,500d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue Service revenue 2,1002,100Consultant expense Prepaid consultant 9009004. Unearned revenueService revenue3,0003,0001. $388,4002. $22,5203. $366,6004. $21,8005.1. net loss for the year ended June 30, 2002: $60,0002. DR Jon Nissen, Capital 60,000CR income summary 60,0003. post-closing balance in Jon Nissen, Capital at June 30, 2002: $54,000Chapter 31.Dundee Realty bank reconciliationOctober 31, 2009Reconciled balance $6,220 Reconciled balance $6,2202.April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 27.73.(a) As a whole: the ending inventory=685(b)applied separately to each product: the ending inventory=6254.The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 41. (a) second-year depreciation = (114,000 – 5,700) / 5 = 21,660;(b) second-year depreciation = 8,600 * (114,000 – 5,700) / 36,100 = 25,800;(c)first-year depreciation = 114,000 * 40% = 45,600second-year depreciation = (114,000 – 45,600) * 40% = 27,360;(d) second-year depreciation = (114,000 – 5,700) * 4/15 = 28,880.2.(a) weighted-average accumulated expenditures (2008) = 75,000 * 12/12 + 84,000 * 9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000 (b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 – 60,000) * 10% =49,5003.(1) depreciation expense = 30,000(2) book value = 600,000 – 30,000 * 2=540,000(3) depreciation expense = ( 600,000 – 30,000 * 8)/16 =22,500(4) book value = 600,000 – 30,000 * 8 – 22,500 = 337,5004.Situation 1:Jan 1st, 2008 Investment in M 260,000Cash 260,000June 30 Cash 6000Dividend revenue 6000Situation 2:January 1, 2008 Investment in S 81,000Cash 81,000June 15 Cash 10,800Investment in S 10,800December 31 Investment in S 25,500Investment Revenue 25,5005.a. December 31, 2008 Investment in K 1,200,000Cash 1,200,000June 30, 2009 Dividend Receivable 42,500Dividend Revenue 42,500December 31, 2009 Cash 42,500Dividend Receivable 42,500 b. December 31, 2008 Investment in K 1,200,000Cash 1,200,000 December 31, 2009 Cash42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000 c. In a, the investment amount is 1,200,000net income reposed is 42,500In b, the investment amount is 1,303,500Net income reposed is 146,000Chapter 51.a. June 1: Dr: Inventory198,000 Cr: Accounts Payable198,000 June 11: Dr: Accounts Payable198,000Cr: Notes Payable198,000 June 12: Dr: Cash300,000Cr: Notes Payable300,000 b. Dr: Interest Expenses (for notes on June 11) 12,100 Cr: Interest Payable12,100 Dr: Interest Expenses (for notes on June 12) 8,175 Cr: Interest Payable8,175 c. Balance sheet presentation:dFor Western: Dr: Notes Payable 300,000 Interest Payable 8,175 Interest Expense 18,825Cr: Cash 327,0002.(1) 20⨯8 Deferred income tax is a liability2,400Income tax payable21,600 20⨯9 Deferred income tax is an asset600 Income tax payable 26,100 (2) 20⨯8: Dr: Tax expense24,000Cr: Income tax payable 21,600 Deferred income tax2,400 20⨯9: Dr: Tax expense25,500 Deferred income tax 600Cr: Income tax payable 26,100 (3) 20⨯8: Income statement: tax expense24,000 Balance sheet: income tax payable21,600 20⨯9: Income statement: tax expense25,500 Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))Notes Payable498,000 Accrued Interest on Notes Payable20,275 . For Green:Dr: Notes Payable198,000 Interest Payable12,100 Interest Expense 7,700 Cr: Cash 217,800b. 7.8% (20000000*12 %* (1-35%)/20000000)4.5.Notes Payable 14,400 Interest Payable 1,296 Accounts Payable 60,000+Unearned Rent Revenue 7,200 Current Liabilities 82,896Chapter 61.Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15Organization Expense 50,000Common Stock 50,000Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000 The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2.July.1Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3.a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d.Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation pay a fixed amount of dividends on preferred stock.The 7% cumulative term indicates that the investors earn 7% fixed dividends.b. 7%*120%*20,000=504,000c. If corporation issued debt, it has obligation to repay principald. The date of dec laration decrease the stockholders’ equity; the date of record and the date of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000 To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 12,500e. June 30Retained Earnings 37,500Common Stock 25,000Additional Paid-in Capital 12,500To record issuance of 10% stock dividend: 10%*25,000=2,500 shares;2500*$15=$37,500f. Dec. 31Depreciation Expense 14,000Accumulated Depreciation 14,000Original depreciation: $40,000/40=$10,000 per year. Book value on Jan.1, 2009 is $350,000(=$400,000-5*$10,000). Deprecation for 2009 is $14,000(=$350,000/25).g. The company does not need to make entry in the accounting records. But the amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ............................................... 480,000 Cash/Accounts payable................................ 480,000 To record purchase of inventoryInventory ............................................... 124,000 Cash/Accounts payable................................ 124,000 To record refurbishment of inventoryAccounts receivable ..................................... 310,000 Sales revenue........................................ 310,000 To record sale of goods on accountCost of goods sold ...................................... 220,000 Inventory............................................ 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ..................................... 15,500* Allowance for sales returns (B/S).................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ........................................ 31,000* Provision for warranties (B/S)....................... 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns ............................. 12,400 Accounts receivable.................................. 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) ..........................Cash/Accounts payable................................ 18,60018,600To record expenditures in year 1 for warranty workCash .................................................... 297,600*Accounts receivable.................................. 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) .......................... 8,400 Cash/Accounts payable................................ 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, thefollowing journal entries would be used to record the transactions for the two years:Year 1Inventory ...............................................Cash/Accounts payable................................ To record purchase of inventory 480,000480,000Inventory ...............................................Cash/Accounts payable................................ To record refurbishment of inventory 124,000124,000Accounts receivable .....................................Inventory............................................ 310,000220,000Deferred gross margin................................To record sale of goods on account90,000Deferred gross margin ...................................Accounts receivable.................................. 12,40012,400To record return of goods within the 30-day return period.goods have no value and are disposed of.It is assumed theDeferred warranty costs (B/S) ........................... 18,600 Cash/Accounts payable................................ 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred are deferred because the related revenue has not yet been recognizedCash .................................................... 297,600* Accounts receivable.................................. 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................. 8,400 Cash/Accounts payable................................ 8,400 To record warranty costs incurred in year 2 related to year 1 sales. Thewarranty costs incurred are deferred because the related revenue has not yet been recognized.Deferred gross margin ................................... **77,600Cost of goods sold ...................................... 220,000 Sales revenue........................................ 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold at expiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ........................................ 27,000* Deferred warranty costs.............................. 27,000 To record recognition of warranty expense at same time as related sales revenue recognition* $18,600 + $8,400Requirement 3Allied Auto Parts Inc. might choose to recognize revenue only after thewarranty period has expired if they are not able to make a good estimate, at the time of sale, of the amount of warranty work that will be required under the terms of the one-year warranty. If Allied is not able, at the time of sale, to make a good estimate of the warranty work that will be required, then the measurability criterion of revenue recognition is not met at the time of sale.The measurability criterion means that the amount of revenue can be reliably measured. If the seller is not able to estimate the amount of work that will have to be done under the warranty agreement, then it is not able to reasonably measure the profit that it will eventually earn on the sales. The performance criteria might also be invoked here. The performance criterion means that the seller has transferred the significant risks and rewards of ownership to the buyer. As long as there is warranty work to be performed after the sale that is the responsibility of the seller, you might argue that performance is notsubstantially complete. However, if the seller was able to reliably estimate the amount of warranty work, then performance would be satisfied on theassumption that we could measure the risk that remains with the seller, andmake a provision for it.2.Percentage-of-completion method:The first step in applying revenue recognition using the percentage-of-completion method (using costs incurred to date compared to estimated totalcosts to determine the percentage of completion) is to estimate the percentageof completion of the project at the end of each year. This is done in thefollowing table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%Once the percentage of completion at the end of each year has been calculatedas above, the next step is to allocate the appropriate amount of revenue toeach year, based on the percentage completed to date, less what has previously been recorded in revenue. This is done in the following table (in $000s):2005 2006 20072005 $20,000 × 30% $ 6,0002006 $20,000 × 70% $ 14,0002007 $20,000 × 100% $ 20,000Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction projectwould be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under the percentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress ....... 5,400 7,550 5,850 Cash, payables, etc. . 5,400 7,550 5,8502. Progress billings:Accounts receivable ..... 3,100 4,900 12,000 Progress billings .... 3,100 4,900 12,000 3. Collections on billings:Cash .................... 2,400 4,000 12,400 Accounts receivable .. 2,400 4,000 12,400 4. Recognition of profit:Construction in progress 600 450 150Construction expense .... 5,400 7,550 5,850Revenue from long-termcontract ........... 6,000 8,000 6,0005.To close construction in progress:Progress billings ....... 20,000Construction in progress 20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 450 $ 1503.a.The three criteria of revenue recognition are performance, measurability,and collectibility.Performance means that the seller or service provider has performed thework. Depending on the nature of the product or service, performance maymean quite different points of revenue recognition. For example, for thesale of products, IAS18 defines performance as the point when the seller ofthe goods has transferred the risks and rewards of ownership to the buyer.Normally, this means that performance is done at the time of sale. Althoughthe seller may have performed much of the work prior to the sale(production, selling efforts, etc.), there is still significant risk to theseller that a buyer may not be found. Therefore, from a reliability pointof view, revenue recognition is delayed until the point of sale. Also,there may be significant risks remaining with the seller of the producteven after the sale. Warranties given by the seller are a risk that remainswith the seller. However, if this risk can be reliably estimated at thetime of sale, revenue can be recognized at the point of sale. Performanceis quite different under a long-term construction contract. Here,performance really is considered to be a measure of the work done. Revenue is recognized over the production period as the work is performed. It is intended to reflect the amount of effort expended by the seller(contractor). Although legal title won’t transfer to the buyer until the project is completed, revenue can be recognized because there is a known and committed buyer. If the contractor is not able to estimate how much of the work has been done (perhaps because he or she can’t reliably estimate how much work must still be done), then profit would not be recognizeduntil the extent of performance is known.Measurability means that the seller or service provider must be able toreliably estimate the amount of the revenue from the sale or service. For the sale of products this is generally known at the time of sale (the sales price is set). However, if the seller provides a return period, it may be necessary to estimate the volume of returns at the time of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurance that the sales price will actually be collected. In most cases for the sales of products, the seller is able to recognize revenue at the time of sale even if the sale is on account. This is because the seller has experience with its customers and is able to estimate reliably the risk of non payment. As long as the seller is able to make this estimate, it isappropriate to recognize the revenue but to offset it with a provision for possible non collection. If the seller is unable to make reliable estimates of future collection of amounts owing, the recognition of revenue would be delayed until the cash is actually received. This is what is done using the instalment sales method of revenue recognition.b.Because of the performance criterion of revenue recognition, it would seem to be most appropriate to recognize most revenue as the seller or service provider performs the work. This would be the best measure of performance. This would mean, for example, that sellers of products would recognize their revenue over the whole production, selling, and post sales servicing periods. As we saw above, this is not commonly done because, in many cases, there are still significant risks that are retained by the seller (risk of not being able tosell the product, for example). There are also measurement risks (knowing the selling price) that exist prior to the sale. The percentage-of-completion method of revenue used for some long-term construction contracts would seem to most closely recognize revenue as the work is performed. As mentioned in Part 1, we are able to recognize revenue on this basis since a contract exists which commits the purchaser to buy the project (assuming certain conditions are met) and the sales price is known because of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:Manuals and initial lessons (200 × $100)$ 20,000 Additional lessons ((200 × 8) × $30)48,000 Examinations ((200 × 80%) × $130) 20,800 Total sales revenue 88,800Cost of sales:Manuals and initial lessons (200 × ($15+ $3)) 3,600 Additional lessons ((200 × 8) × $3))4,800 Examinations ((200 × 80%) × $30) 4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000) 36,000 Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division2,100,000Enterprise net profit $3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effect Payment of long-term debt. financingAcquisition of building by issuance of common stock. no effect Accrual of salary expense. no effect2.(a)Cash received from customers = 816,000(b)Cash payments for purchases of merchandise. =468,000(c)Cash payments for operating expenses. = 268,200(d)Income taxes paid. =36,9003.Cash sales..................................... $9,000Payment of accounts payable ………………………. -48,000Payment of income tax ……………………………… -13,000Payment of inter est ……………………………..….. -16,000 Collection of accounts receivable .................. 93,000 Payment of salaries and wages ………………………..-34,000 Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000 Add: increases in current liabilities 180,000 Net cash flows from operating - 200,000Investing activitiesSale of land -50,000 Purchase of PPE -1,500,000Net cash flows from investing - 1,550,000Financing activitiesIssuance of common shares 400,000 Payment of cash dividend -50,000 Issuance of non-current liabilities 1,000,000 Net cash flows from financing1,350,000Net changes in cash - 400,0005.。
会计英语课后题
Unlimited liability is an advantage of a sole proprietorship. ×A sole proprietorship is a business owned by one or more persons. ×As a general rule, revenues should not be recognized in the accounting records until it is received in cash. ×In the partnership form of business, the owners are called stockholders. ×The area of accounting aimed at serving the decision making needs of internal users is:A Financial accounting.B Managerial accounting.C External auditing.D SEC reporting.E Bookkeeping.The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:A Business entity assumption.B Monetary unit assumption.C Going-concern assumption.D Time-period assumption.E ObjectivityExternal users of accounting information include all of the following except:A Shareholders.B Customers.C Purchasing managers.D Government regulators.E Creditors.The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:A Time-period assumption.B Business entity assumption.C Going-concern assumption.D Revenue recognition principle.E Cost principle.If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:A $95,000.B $137,000.C $138,500.D $140,000.E $150,000.The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?A Monetary unit assumption.B Going-concern assumption.C Cost principle.D Business entity assumption.E Revenue recognition principle.If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:A Decreased $105,000.B Decreased $45,000.C Increased $30,000.D Increased $45,000.E Increased $105,000.If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:A Increased $22,000.B Decreased $22,000.C Increased $89,000.D Decreased $156,000.E Increased $156,000. If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?A Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.B Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.C Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.D There would be no effect on the accounts because the accounts are affected by the same amount.E None of these.How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?A +$10,000 accounts receivable, -$10,000 accounts payable.B +$10,000 accounts receivable, +$10,000 accounts payable.C +$10,000 accounts receivable, +$10,000 cash.D +$10,000 accounts receivable, +$10,000 revenue.E +$10,000 accounts receivable, -$10,000 revenueAssets created by selling goods and services on credit are:A Accounts payable.B Accounts receivable.C Liabilities.D Expenses.E Equity.On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of June 30 of the current year?A $8,300B $13,050C $20,500D $31,100E $40,400The excess of expenses over revenues for a period is:A Net assets.B Equity.C Net loss.D Net income.E A liability.The accounting equation implies that: Assets + Liabilities = Equity.×owner's equity are the owner's claim on assets.√Increases in liability accounts are recorded as debits.×Crediting an expense account decreases it.√If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.√The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.√If a company provides services to a customer on credit the selling company should credit Accounts Receivable.×A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):A Journal.B Posting.C Trial balance.D Account.E Chart of accounts. Which of the following statements is correct?A When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.B Promises of future payment by the buyer are called accounts receivable.C Increases and decreases in cash are always recorded in the owner's capital account.D An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.E Accrued liabilities include accounts receivable.Prepaid expenses are:A Payments made for products and services that do not ever expire.B Classified as liabilities on the balance sheet.C Decreases in equity.D Assets that represent prepayments of future expenses.E Promises of payments by customers.A debit:A Always increases an account.B Is the right-hand side of a T-account.C Always decreases an account.D Is the left-hand side of a T-account.E Is not need to record a transaction.Which of the following statements is incorrect?A The normal balance of accounts receivable is a debit.B The normal balance of owner's withdrawals is a debit.C The normal balance of unearned revenues is a credit.D The normal balance of an expense account is a credit.E The normal balance of the owner's capital account is a credit.The first step in the processing of a transaction is to analyze the transaction and source documents.√Preparation of a trial balance is the first step in the analyzing and recording process.×Source documents provide evidence of business transactions and are the basis for accounting entries.√A revenue account normally has a debit balance.×Accounts are normally decreased by debits.×All of the following statements regarding a sales invoice are true except:A A sales invoice is a type of source document.B A sales invoice is used by sellers to record the sale.C A sales invoice is used by buyers to record purchases.D A sales invoice gives rise to an entry in the accounting process.E A sales invoice does not provide objective evidence about a transaction.The accounting process begins with:A Analysis of business transactions and source documents.B Preparing financial statements and other reports.C Summarizing the recorded effect of business transactions.D Presentation of financial information to decision-makers.E Preparation of the trial balance.Source documents include all of the following except:A Sales tickets.B Ledgers.C Checks.D Purchase orders.A ledger is:A A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.B A journal in which transactions are first recorded.C A collection of documents that describe transactions and events entering the accounting process.D A list of all accounts with their debit balances at a point in time.E A record containing all accounts and their balances used by a company.Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?A Debit Assets $200,000; credit Haddon, Capital, $200,000.B Debit Cash and Land, $200,000; credit Haddon, Capital, $200,000.C Debit Cash $70,000; debit Land $130,000; credit Haddon, Capital, $200,000.D Debit Haddon, Capital, $200,000; credit Cash $70,000, credit Land, $130,000.On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:A Debit Prepaid Insurance, $1,800; credit Cash, $1,800.B Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.C Debit Prepaid Insurance, $360; credit Insurance Expense, $360.D Debit Insurance Expense, $360; credit Prepaid Insurance, $360.E Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?A $75.B $125.C $175.D $250On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31?A $1,350.00.B $450.00.C $1,012.50.D $337.50.If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:A Debit Cash and credit Legal Fees Earned.B Debit Cash and credit Unearned Legal Fees.C Debit Unearned Legal Fees and credit Legal Fees Earned.D Debit Legal Fees Earned and credit Unearned Legal Fees.E Debit Unearned Legal Fees and credit Accounts Receivable.The periodic expense created by allocating the cost of plant and equipment to the periods inwhich they are used, representing the expense of using the assets, is called:A Accumulated depreciation.B A contra account.C The matching principle.D Depreciation expense.An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):A Accrued expense.B Contra account.C Accrued revenue.D Intangible asset.On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include:A A debit to an expense for $5,625.B A debit to a prepaid expense for $5,625.C A debit to an expense for $1,875.D A debit to a prepaid expense for $1,875.On June 30 Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30 Apricot should record:A A credit to an expense for $7,500.B A debit to an expense for $7,500.C A debit to a prepaid expense for $7,500.D A credit to a prepaid expense for $7,500. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:A An overstatement of net income.B An overstatement of assets.C An overstatement of liabilities.D An overstatement of equity.An adjusting entry could be made for each of the following except:A Prepaid expenses.B Depreciation.C Owner withdrawals.D Unearned revenues.Revenues are:A The same as net income.B The excess of expenses over assets.C Resources owned or controlled by a companyD The increase in equity from a company’s earning activities.E The costs of assets or services used.Another name for equity is:A Net income.B Expenses.C Net assets.D Revenue.E Net loss.A payment to an owner is called a(n):A Liability.B Withdrawal.C Expense.D Contribution.E Investmen The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?A 900,000.B $700,000.C $500,000.D 200,000.E It is impossible to determine unless the amount of this owners' investment is known. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effectsof this transaction on the accounting equation?A Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?A Assets increase by $75,000 and expenses increase by $75,000.B Assets increase by $75,000 and expenses decrease by $75,000.C Liabilities increase by $75,000 and expenses decrease by $75,000.D Assets decrease by $75,000 and expenses decrease by $75,000.E Assets increase by $75,000 and liabilities increase by $75,000.Every business transaction leaves the accounting equation in balance. √Owner's investments are increases in equity from a company's earnings activities. ×Owner’s withdrawals are expenses. ×Net income occurs when revenues exceed expenses. √In a double-entry accounting system, the total amount debited must always equal the total amount credited. √Increases in liability accounts are recorded as credits. √Asset accounts normally have credit balances and revenue accounts normally have debit balances. ×If a company purchases land paying cash, the journal entry to record this transaction will include a debit to Cash. ×If a company provides services to a customer on credit the selling company should debit cash. ×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. ×A formal promise to pay (in the form of a promissory note) a future amount is a(n):A Unearned revenue.B Prepaid expense.C Credit account.D Note payable.A credit is used to record:A An increase in an expense account.B A decrease in an asset account.C A decrease in an unearned revenue account.D A decrease in a revenue account.Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include aA Debit to Telephone Expense for $300.B Credit to Accounts Payable for $300.C Debit to Cash for $300.D Credit to Telephone Expense for $300. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a:A Debit to Unearned Management Fees for $60,000.B Credit to Management Fees Earned for $60,000.C Credit to Cash for $60,000.D Credit to Unearned Management Fees for $60,000。
会计英语东北财经大学第四版课后习题答案
会计英语东北财经大学第四版课后习题答案一、语法精练1.My brother plays——football very well．A．a B．the C. all D. /2.Birds ——when there isn’t enough food for them．A． starve B．are starving C．starved D．starves3.I can see an apple ________ the apple tree and a bird ________ the banana tree.A．on, in B．in，in C．on，on D．in，on4.I have a red box．It’s full ________ toys，so it’s very ________.A．of, light B．for，big C．like，small D．of，heavy5.Your football shoes are under the chair．Please ________.A．put away it B．put it away C．put away them D．put them away6.Mom’s in a bad _____，so be nice to her．A．time B．trouble C. manner D．mood二、阅读理解Mr.White looks out of his window．There is a boy at the otherside of the street．The boy takes some bread out of a bag and begins eating it．There is a very thin dog in the street, too．The boy says to it, “I’ll give you some bread.” The dog is hungry and goes to the boy, but he does not give it any bread．He kicks the dog．It runs away, and the boy laughs．Then Mr.White comes out of his house and says to the boy．“I’ll give you a shilling (先令).”The boy is happy and says，“Yes.”“Come here.” Mr.White says．The boy goes to him，but Mr.White does not give him a shilling．He hits him with a stick. The boy cries and says, “Why do you hit me? I do not ask you for any money.” “No,” Mr.White says，“And the dog does not ask you for any bread，but you kick it.”1．Where is Mr.White at first?A．He is in the roomB．He is in the street．C．He is in front of the house．D．He stands close to the boy．2．Why does the dog go to the boy? Because__________．A．it wants to eatB．the boy asks it to do soC．the boy is the dog’s ownerD．the boy is friendly to it3．Why does the dog run away? Because__________．A．the boy gives some breadB．the dog doesn’t like breadC．the dog doesn’t like the boyD．the boy kicks the dog4．Why does Mr.White tell the boy to come up to him? Because he wants to__________．A．give him a shillingB．give him a good lesson(教训)C．give him some more breadD．help the boy5．What kind of man do you think Mr.White is? He is a __________man．A．cruel (粗鲁的)B．sympathetic (富有同情心的)C．friendlyD．polite (有礼貌的)一、语法精练1.D 解析：本题考查冠词的用法，在球类的名词前不加冠词。
会计专业英语习题答案.doc
Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: "The company covered up the first report, and the local newspaper uncovered the company's secret. The company was forced to not locate here (Collier County). It became patently clear that doing the least that is legally allowed is not enough."1-21. B2. B3. E4. F5. B6. F7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 – $15,000)c. $19,500 ($37,000 – $17,500)1-4a. $275,000 ($475,000 – $200,000)b. $310,000 ($275,000 + $75,000 – $40,000)c. $233,000 ($275,000 – $15,000 – $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 – $105,000 – $275,000) 1-5a. owner's equityb.liabilityc.assetd.assete.owner'sequity f. asset1-6a. Increases assets and increases owner’s equity.b. Increases assets and increases owner’s equity.c. Decreases assets and decreases owner’s equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase2. decrease3.increase4. decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 – $4,400)c. $5,600 ($64,100 – $58,500)d. $7,600 ($25,000 – $16,000 – $1,400)e. $5,600 ($7,600 – $2,000)1-9It would be incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owner’s EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006 ...... $297,200 Net income for the month ................ $73,000Less withdrawals ........................... 12,000Increase in owner’s equity................ 61,000 Leo Perkins, capital, April 30, 2006 .... $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned ................................ $232,120 Operating expenses:Wages expense .......................... $100,100Rent expense ............................. 35,000Supplies expense ........................ 4,550Miscellaneous expense.................. 3,150Total operating expenses ............. 142,800 Net income .................................. $89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k1-151. b–investing activity2.a–operating activity3. c–financing activity4.a–operating activity1-16a. 2003: $10,209 ($30,011 – $19,802)2002: $8,312 ($26,394 – $18,082)b. 2003: 0.52 ($10,209 ÷ $19,802)2002: 0.46 ($8,312 ÷ $18,082)c. The ratio of liabilities to stockholders’ equity increased from2002 to 2003, indicating an increase in risk for creditors.However, the assets of The Home Depot are more than sufficient to satisfy creditor claims.Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expense 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15Equipment2. Liabilities21 Accounts Payable22Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41Fees Earned5. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. andb.Account Debited Account Credited Transaction T ype Effect Type Effect(1) asset + owner's equity +(2) asset + asset –(3) asset + asset –liability +(4) expense + asset –(5) asset + revenue +(6) liability –asset –(7) asset + asset –(8) drawing + asset –(9) expense + asset –Ex. 2–4(1) Cash...................................... 40,000Ira Janke, Capital ................... 40,000 (2) Supplies ................................. 1,800Cash................................... 1,800 (3) Equipment ............................... 24,000Accounts Payable ................... 15,000Cash................................... 9,000 (4) Operating Expenses ................... 3,050Cash................................... 3,050 (5) Accounts Receivable .................. 12,000Service Revenue ..................... 12,000 (6) Accounts Payable ...................... 7,500Cash................................... 7,500 (7) Cash...................................... 9,500Accounts Receivable ............... 9,500 (8) Ira Janke, Drawing ..................... 5,000Cash................................... 5,000 (9) Operating Expenses ................... 1,050Supplies .............................. 1,0502-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a. Liability—credit f. Revenue—creditb. Asset—debit g. Asset—debitc. Asset—debit h. Expense—debitd. Owner's equity i. Asset—debit(Cindy Yost, Capital)—credit j. Expense—debite. Owner's equity(Cindy Yost, Drawing)—debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf. credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 – $4,000– $8,000). Such a negative balance means that the liabilities of Seth’s business exceed the a ssets.b. Y es. The balance sheet prepared at December 31will balance, with Seth Fite, Capital, being reported in the owner’s equity section as a negative $1,500.2-9a. T he increase of $28,750 in the cash account doesnot indicate earnings of that amount. Earnings will represent the net change in all assets and liabilities from operating transactions.b. $7,550 ($36,300 – $28,750)2-10a. $40,550 ($7,850 + $41,850 – $9,150)b. $63,000 ($61,000 + $17,500 – $15,500)c. $20,800 ($40,500 – $57,700 + $38,000)2-112005Aug.1 Rent Expense ........................... 1,500Cash................................... 1,5002 Advertising Expense (700)Cash (700)4 Supplies ................................. 1,050Cash................................... 1,0506 Office Equipment ....................... 7,500Accounts Payable ................... 7,5008 Cash...................................... 3,600Accounts Receivable ............... 3,60012 Accounts Payable ...................... 1,150Cash................................... 1,15020 Gayle McCall, Drawing ................ 1,000Cash................................... 1,00025 Miscellaneous Expense (500)Cash (500)30 Utilities Expense (195)Cash (195)31 Accounts Receivable .................. 10,150Fees Earned ......................... 10,15031 Utilities Expense (380)Cash (380)2-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit 2006Oct.27 Supplies .......................... 15 1,320Accounts Payable ............ 21 1,320Purchased supplies on account.b.,c.,d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr.Dr. Cr.2006Oct. 1 Balance ................ ✓...... ...... 585 ......27 .......................... 43 1,320 ...... 1,905 ...... Accounts Payable 21 2006Oct. 1 Balance ................ ✓...... ...... ..... 6,15027 .......................... 43 ...... 1,320 ..... 7,4702-13Inequality of trial balance totals would be caused by errors described in (b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash ........................................... 13,375 Accounts Receivable .......................... 24,600Prepaid Insurance .............................. 8,000 Equipment ...................................... 75,000 Accounts Payable .............................. 11,180 Unearned Rent ................................. 4,250 Erin Capelli, Capital ........................... 82,420 Erin Capelli, Drawing .......................... 10,000Service Revenue ................................ 83,750 Wages Expense ................................ 42,000 Advertising Expense ........................... 7,200 Miscellaneous Expense ....................... 1,425 181,600 181,6002-15a. Gerald Owen, Drawing ................ 15,000Wages Expense ..................... 15,000b. Prepaid Rent ............................ 4,500Cash................................... 4,5002-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999 Amount Percent1. Sales .......................... $37,028 $35,925 .......................... $ 1,1033.1%2. Cost of sales ................ (29,658)(28,111) ......................... 1,5475.5%3. Selling, general, and admin.expenses ..................... (7,415) (6,514) 901 13.8%4. Operating income (loss)before taxes ................. $ (45) $1,300$(1,345)(103.5%)b. The horizontal analysis of Kmart Corporation revealsdeteriorating operating results from 1999 to 2000.While sales increased by $1,103 million, a 3.1%increase, cost of sales increased by $1,547 million, a5.5% increase. Selling, general, and administrativeexpenses also increased by $901 million, a 13.8%increase. The end result was that operating incomedecreased by $1,345 million, over a 100% decrease,and created a $45 million loss in 2000. Little over ayear later, Kmart filed for bankruptcy protection. It hasnow emerged from bankruptcy, hoping to return toprofitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid expense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense (801)Supplies (801)3-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated.Net income will be overstated.b. Prepaid insurance (or assets) will be overstated.Owner’s equity will be ove rstated.3-5a.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,215 b.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,2153-6Unearned Fees ................................... 9,570Fees Earned ............................ 9,5703-7a.Salary Expense ................................ 9,360Salaries Payable ........................ 9,360 b.Salary Expense ................................ 12,480Salaries Payable ........................ 12,480 3-8$59,850 ($63,000 – $3,150)3-9$195,816,000 ($128,776,000 + $67,040,000)3-10Error (a) Error (b)Over- Under- Over-Under-stated stated stated stated1. Revenue for the year would be $ 0 $6,900 $ 0 $ 02. Expenses for the year would be 0 0 0 3,7403. Net income for the year would be 0 6,900 3,740 04. Assets at December 31 would be 0 0 0 05. Liabilities at December 31 would be 6,900 0 0 3,7406. Owner’s equity at December 31would be ......................... 0 6,900 3,740 03-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable .......................... 11,500Fees Earned ............................ 11,500b. No. If the cash basis of accounting is used, revenuesare recognized only when the cash is received.Therefore, earned but unbilled revenues would not berecognized in the accounts, and no adjusting entrywould be necessary.3-13a. Fees earned (or revenues) will be understated. Netincome will be understated.b. Accounts (fees) receivable (or assets) will beunderstated. Owner’s equity will be unde rstated.3-14Depreciation Expense ........................... 5,200Accumulated Depreciation ............ 5,200 3-15a. $204,600 ($318,500 – $113,900)b. No. Depreciation is an allocation of the cost of theequipment to the periods benefiting from its use. Itdoes not necessarily relate to value or loss of value.3-16a. $2,268,000,000 ($5,891,000,000 – $3,623,000,000)b. No. Depreciation is an allocation method, not avaluation method. That is, depreciation allocates thecost of a fixed asset over its useful life. Depreciationdoes not attempt to measure market values, whichmay vary significantly from year to year.3-17a.Depreciation Expense ......................... 7,500Accumulated Depreciation ............ 7,500 b. (1) D epreciation expense would be understated. Netincome would be overstated.(2) A ccumulated depreciation would be understated,and total assets would be overstated. Owner’sequity would be overstated.3-181.Accounts Receivable (4)Fees Earned (4)2.Supplies Expense (3)Supplies (3)3.Insurance Expense (8)Prepaid Insurance (8)4.Depreciation Expense (5)Accumulated Depreciation—Equipment 5 5.Wages Expense (1)Wages Payable (1)3-19a. Dell Computer CorporationAmount Percent Net sales $35,404,000 100.0Cost of goods sold (29,055,000) 82.1Operating expenses (3,505,000) 9.9Operating income (loss) $2,844,000 8.0b. Gateway Inc.Amount Percent Net sales $4,171,325 100.0Cost of goods sold (3,605,120) 86.4Operating expenses (1,077,447) 25.8Operating income (loss) $(511,242)(12.2)c. Dell is more profitable than Gateway. Specifically,Dell’s cost of goods sold of 82.1% is significantly less(4.3%) than Gateway’s cost of goods sold of 86.4%.In addition, Gateway’s operating expenses are over one-fourth of sales, while Dell’s operating expenses are 9.9% of sales. The result is that Dell generates an operating income of 8.0% of sales, while Gateway generates a loss of 12.2% of sales. Obviously, Gateway must improve its operations if it is to remain in business and remain competitive with Dell.4-1e, c, g, b, f, a, d4-2a. Income statement: 3, 8, 9b. Balance sheet: 1, 2, 4, 5, 6, 7, 104-3a. Asset: 1, 4, 5, 6, 10b. Liability: 9, 12c. Revenue: 2, 7d. Expense: 3, 8, 114-41. f2. c3. b4. h5. g6. j7. a8. i9. d10. e4–5ITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006AdjustedTrial Balance Adjustments TrialBalanceAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable50 (a) 7 57 23 Supplies 8 (b) 5 3 34 Prepaid Insurance 12 (c) 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 2 (d) 5 7 78 Accounts Payable 26 26 89 Wages Payable 0 (e) 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 60 (a) 7 67 1213 Wages Expense 16 (e) 1 17 1314 Rent Expense 8 8 1415 Insurance Expense 0 (c) 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense0 (d) 5 5 1718 Supplies Expense 0 (b) 5 5 1819 Miscellaneous Expense 2 2 120 Totals 200 200 24 24 213 2 ContinueITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006Adjusted Income BalanceTrial Balance StatementSheetAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable57 57 23 Supplies 3 3 34 Prepaid Insurance 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 7 7 78 Accounts Payable 26 26 89 Wages Payable 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 67 67 1213 Wages Expense 17 17 1314 Rent Expense 8 8 1415 Insurance Expense 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense5 5 1718 Supplies Expense 5 5 1819 Miscellaneous Expense 2 2 120 Totals 213 213 49 67 164 146 2021 Net income (loss) 18 18 2122 67 67 164 164 224-6ITHACA SERVICES CO.Income StatementFor the Year Ended January 31, 2006Fees earned .................................... $67Expenses:Wages expense ............................ $17Rent expense (8)Insurance expense (6)Utilities expense (6)Depreciation expense (5)Supplies expense (5)Miscellaneous expense (2)Total expenses ...........................49Net income ...................................... $18ITHACA SERVICES CO.Statement of Owner’s EquityFor the Year Ended January 31, 2006 Terry Dagley, capital, February 1, 2005 .... $112 Net income for the year ....................... $18 Less withdrawals . (8)Increase in owner’s equity....................10Terry Dagley, capital, January 31, 2006 ... $122ITHACA SERVICES CO.Balance SheetJanuary 31, 2006Assets LiabilitiesCurrent assets: Current liabilities:Cash ............... $ 8 Accounts payable $26 Accounts receivable 57 .. Wages payable 1 Supplies ........... 3 Total liabilities . $ 27 Prepaid insurance 6Total current assets $ 74Property, plant, and Owner’s E quityequipment: Terry Dagley, capital (12)Land ............... $50Equipment ........ $32Less accum. depr. 7 25Total property, plant,and equipment 75 Total liabilities andTotal assets ......... $149 owner’s equity .. $1494-72006Jan.31 Accounts Receivable (7)Fees Earned (7)31 Supplies Expense (5)Supplies (5)31 Insurance Expense (6)Prepaid Insurance (6)31 Depreciation Expense (5)Accumulated Depreciation—Equipment 531 Wages Expense (1)Wages Payable (1)4-82006Jan.31 Fees Earned (67)Income Summary (67)31 Income Summary (49)Wages Expense (17)Rent Expense (8)Insurance Expense (6)Utilities Expense (6)Depreciation Expense (5)Supplies Expense (5)Miscellaneous Expense (2)31 Income Summary (18)Terry Dagley, Capital (18)31 Terry Dagley, Capital (8)Terry Dagley, Drawing (8)4-9SIROCCO SERVICES CO.Income StatementFor the Year Ended March 31, 2006Service revenue ................................$103,850Operating expenses:Wages expense ............................ $56,800Rent expense ............................... 21,270Utilities expense ............................ 11,500Depreciation expense ..................... 8,000Insurance expense ......................... 4,100Supplies expense .......................... 3,100Miscellaneous expense .................... 2,250Total operating expenses ....... 107,020Net loss ..........................................$ (3,170)4-10SYNTHESIS SYSTEMS CO.Statement of Owner’s EquityFor the Year Ended October 31, 2006 Suzanne Jacob, capital, November 1, 2005$173,750Net income for year ........................... $44,250 Less withdrawals ............................... 12,000 Increase in owner’s equity....................32,250Suzanne Jacob, capital, October 31, 2006 $206,0004-11a. Current asset: 1, 3, 5, 6b. Property, plant, and equipment: 2, 44-12Since current liabilities are usually due within one year, $165,000 ($13,750 × 12 months) would be reported as a current liability on the balance sheet. The remainder of $335,000 ($500,000 – $165,000) would be reported as a long-term liability on the balance sheet.4-13TUDOR CO.Balance SheetApril 30, 2006AssetsLiabilitiesCurrent assetsCurrent liabilities:Cash $31,500Accounts payable ........... $9,500Accounts receivable 21,850 Salaries payable1,750Supplies ............ 1,800 Unearned fees ............... Prepaid insurance 7,200 Total liabilitiesPrepaid rent ....... 4,800Total current assets $67,150 Owner’s E Property, plant, and equipment: Vernon Posey,capital 114,200Equipment ....... $80,600Less accumulated depreciation 21,100 59,500Total liabilities andTotal assets $126,650 own er’s equity ...............4-14Accounts Receivable ............................ 4,100Fees Earned ......................... 4,100 Supplies Expense ...................... 1,300Supplies .............................. 1,300 Insurance Expense ..................... 2,000Prepaid Insurance ................... 2,000 Depreciation Expense ................. 2,800Accumulated Depreciation—Equipment 2,800 Wages Expense ........................ 1,000Wages Payable ...................... 1,000 Unearned Rent .......................... 2,500Rent Revenue ........................ 2,5004-15c. Depreciation Expense—Equipmentg. Fees Earnedi. Salaries Expensel. Supplies Expense4-16The income summary account is used to close the revenue and expense accounts, and it aids in detectingand correcting errors. The $450,750 represents expense account balances, and the $712,500 represents revenue account balances that have been closed.4-17a.Income Summary ............................. 167,550Sue Alewine, Capital ................... 167,550 Sue Alewine, Capital ............................ 25,000Sue Alewine, Drawing ................. 25,000b. $284,900 ($142,350 + $167,550 – $25,000)4-18a. Accounts Receivableb. Accumulated Depreciationc. Cashe. Equipmentf. Estella Hall, Capitali. Suppliesk. Wages Payable4-19a. 2002 2001Working capital ($143,034)($159,453)Current ratio 0.81 0.80b. 7 Eleven has negative working capital as of December31, 2002 and 2001. In addition, the current ratio is below one at the end of both years. While the working capital and current ratios have improved from 2001 to 2002, creditors would likely be concerned about the ability of 7 Eleven to meet its short-term credit obligations. This concern would warrant further investigation to determine whether this is a temporary issue (for example, an end-of-the-periodphenomenon) and the company’s plans to address itsworking capital shortcomings.4-20a. (1) Sales Salaries Expense ................ 6,480Salaries Payable ........................ 6,480(2) Accounts Receivable ................... 10,250Fees Earned ............................. 10,250b. (1) Salaries Payable ........................ 6,480Sales Salaries Expense ................ 6,480(2) Fees Earned ............................. 10,250Accounts Receivable ................... 10,2504-21a. (1) Payment (last payday in year)(2) Adjusting (accrual of wages at end of year)(3) Closing(4) Reversing(5) Payment (first payday in following year)b. (1) W ages Expense ........................ 45,000Cash ...................................... 45,000(2) Wages Expense ......................... 18,000Wages Payable .......................... 18,000(3) Income Summary .......................1,120,800Wages Expense ......................... 1,120,800(4) Wages Payable .......................... 18,000Wages Expense ......................... 18,000(5) Wages Expense ......................... 43,000Cash ...................................... 43,000 Chapter6（找不到答案，自己处理了哦）Ex. 8–1a. Inappropriate. Since Fridley has a large number ofcredit sales supported by promissory notes, a notesreceivable ledger should be maintained. Failure tomaintain a subsidiary ledger when there are asignificant number of notes receivable transactionsviolates the internal control procedure that mandatesproofs and security. Maintaining a notes receivable ledger will allow Fridley to operate more efficiently and will increase the chance that Fridley will detect accounting errors related to the notes receivable. (The total of the accounts in the notes receivable ledger must match the balance of notes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation ofduties is violated. The accounts receivable clerk is responsible for too many related operations. The clerk also has both custody of assets (cash receipts) and accounting responsibilities for those assets.c. Appropriate. The functions of maintaining theaccounts receivable account in the general ledger should be performed by someone other than the accounts receivable clerk.d. Appropriate. Salespersons should not be responsiblefor approving credit.e. Appropriate. A promissory note is a formal creditinstrument that is frequently used for credit periods over 45 days.Ex. 8–2-aa.Customer Due Date Number of DaysPast DueJanzen Industries August 29 93 days (2 + 30+ 31 + 30)Kuehn Company September 3 88 days (27 + 31+ 30)Mauer Inc. October 21 40 days (10 +30)Pollack Company November 23 7 daysSimrill Company December 3 Not past dueEx. 8–3Nov.30 Uncollectible Accounts Expense ..... 53,315*Allowances for Doubtful Accounts 53, *$60,495 – $7,180 = $53,315Ex. 8–4Estimated Uncollectible AccountsAge Interval Balance Percent AmountNot past due .............. $450,000 2% $9,0001–30 days past due...... 110,000 4 4,40031–60 days past due .... 51,000 6 3,06061–90 days past due .... 12,500 20 2,50091–180 days past due .. 7,500 60 4,500Over 180 days past due 5,500 80 4,400 Total .................... $636,500 $27,860Ex. 8–52006Dec. 31 Uncollectible Accounts Expense ..... 29,435*.A llowance for Doubtful Accounts 29,435 *$27,860 + $1,575 = $29,435Ex. 8–6a. $17,875 c. $35,750b. $13,600 d. $41,450Ex. 8–7a.Allowance for Doubtful Accounts ........... 7,130Accounts Receivable .................. 7,130b.Uncollectible Accounts Expense ............ 7,130Accounts Receivable .................. 7,130Ex. 8–8Feb.20 Accounts Receivable—Darlene Brogan 12,100 Sales .................................. 12,10020 Cost of Merchandise Sold ............ 7,260Merchandise Inventory .............. 7,260May30 Cash...................................... 6,000Accounts Receivable—Darlene Brogan 6,030 Allowance for Doubtful Accounts .... 6,100Accounts Receivable—Darlene Brogan 6,1Aug. 3Accounts Receivable—Darlene Brogan 6,100 Allowance for Doubtful Accounts . 6,1003 Cash...................................... 6,100Accounts Receivable—Darlene Brogan 6,1$223,900 [$212,800 + $112,350 –($4,050,000 × 21/2%)]Ex. 8–10Due Date Interesta. Aug. 31 $120b. Dec. 28 480c. Nov. 30 250d. May 5 150e. July 19 100Ex. 8–11a. August 8b. $24,480c. (1) N otes Receivable .......................... 24,000Accounts Rec.—Magpie Interior Decorators 24,(2) C ash......................................... 24,480Notes Receivable ....................... 24,000Interest Revenue (480)1. Sale on account.2. Cost of merchandise sold for the sale on account.3. A sales return or allowance.4. Cost of merchandise returned.5. Note received from customer on account.6. Note dishonored and charged maturity value of note tocustomer’s account recei vable.7. Payment received from customer for dishonored noteplus interest earned after due date.Ex. 8–132005Dec.13 Notes Receivable ....................... 25,000Accounts Receivable—Visage Co. 25,31 Interest Receivable ..................... 75*Interest Revenue (75)31 Interest Revenue (75)Income Summary (75)2006。
会计英语课后练习题含答案
会计英语课后练习题含答案一、选择题1.Which of the following is an example of a current asset?A. LandB. BuildingsC. Accounts payableD. Long-term bonds payableAnswer: C2.Which of the following is an example of a non-current asset?A. InventoryB. Accounts receivableC. EquipmentD. Prepd expensesAnswer: C3.Which of the following is an example of a current liability?A. Long-term loans payableB. Owner’s equityC. Accounts receivableD. Accounts payableAnswer: D4.Which of the following is an example of a non-currentliability?A. Accounts payableB. Salaries payableC. Long-term loans payableD. Rent payableAnswer: C5.Which of the following is not included in the calculation ofreturn on equity (ROE)?A. Net incomeB. Total assetsC. Average stockholders’ equityD. SalesAnswer: D二、填空题1._________ is the process of recording, classifying, andsummarizing financial transactions to produce financial statements.Answer: Accounting2.The balance sheet reports the financial position of acompany as of a specific __________.Answer: Date3.The __________ principle states that expenses should berecognized when they are incurred, regardless of when they are pd.Answer: Expense recognition4.The __________ principle states that expenses should bematched to the revenues they help generate.Answer: Matching5.The __________ is the excess of total assets over totalliabilities.Answer: Stockholders’ equity三、简答题1.What is the difference between a current asset and a non-current asset?Answer: A current asset is an asset that is expected to beconverted to cash within one year or during the normal operating cycle of the business, whichever is longer. A non-current asset is an asset that is expected to be held for more than one year and is not expected to be converted to cash during the normal operating cycle of the business.2.What is the difference between a current liability and anon-current liability?Answer: A current liability is a liability that is expected to be pd off within one year or during the normal operating cycle of the business, whichever is longer. A non-current liability is aliability that is expected to be pd off more than one year in the future and is not expected to be pd off during the normaloperating cycle of the business.3.How is the income statement different from the balance sheet?Answer: The income statement reports a company’s revenues,expenses, and net income or net loss for a specific period of time, usually one year or a quarter. The balance sheet reports acompany’s financial position as of a specific date, showing it s assets, liabilities, and stockholders’ equity.4.What is the equation for the balance sheet?Answer: Assets = Liabilities + Stockholders’ equity5.What is the purpose of financial accounting?Answer: The purpose of financial accounting is to provide useful information to external users, such as investors, creditors, and regulators, to help them make informed decisions about the company. It does this by recording and reporting a company’s financial activities in a standardized format.。
《会计专业英语》习题答案人大版Chapter 1
Chapter 1 Introduction to AccountingMultiple choice questions:1. D2. C3. C4. C5. B6. A7. C8. D9. C 10. CDiscussion questions1. What are the three basic forms of business entities?The forms of business entities are generally divided into sole proprietorships, partnerships, or corporations.A sole proprietorship is an unincorporated business only owned by one person. A sole proprietorship often has the following characteristics: (1) The owner also acts as the manager. (2) The owner is personally liable for the debts of the business. If the business has financial difficulties, creditors can force the owner to sell his or her personal assets to pay for the business debts. (3) Its advantage is simplicity.A partnership is usually an unincorporated business owned by two or more persons voluntarily acting as partners. The owners of a partnership, when unincorporated, are also personally liable for the debts of the business. In comparison he sole proprietorship, the partnership has the ability to raise larger amounts of capital investment from multiple owners. Since the personal skills of the individuals are vital to the partnership, covenants are usually drawn up which makes it difficult for individual partners to exit the legal entity.A corporation is a business organization as a separate legal entity owned by stockholders. Investors in a corporation receive shares of stock to indicate ownership claims. Shares of stock are easy to sell. Individuals can become stockholders by investing small amounts of money.2. Compared with sole proprietorship and partnership, what are the advantages of corporation as a form of business entity?Compared with sole proprietorships and partnerships,a corporation is easy for corporations to raise larger amounts of funds. Successful corporations often havethousands of stockholders, and their stocks are traded on organized stock exchanges like the New York Stock Exchange. Different from sole proprietorships and partnerships, corporate stockholders have no personal liability to the legal entity and their risks are limited to their purchase amount only.3. Who are the external users of accounting information? Give examples.External users have a current or potential financial interest in the reporting entity, but are not directly involved in managing and operating the business. The main external users include investors and creditors. Investors use accounting information to decide whether to buy, hold, or sell stocks. Creditors use accounting information to decide whether to sell goods or services on credit or lend money to an entity. Other external users of accounting information are government agencies, suppliers, customers, general public, and so on.4. What are the three main types of business activities? Give examples of each activity.All business can be classified into three types of activity: financing activity, investing activity, and operating activity. A company usually obtains cash through financing activities to start and grow its business. It then invests the cash in to run the business, such as delivery vehicles. Once this equipment is in place, it can begin the operating activities of making and selling goods.Financing activity: A company has two primary sources to raise funds. One is borrowing money and the other is issuing (selling) shares of stock in exchange for cash. Persons or entities to whom a company owes money are creditors. Amounts owed to creditors are called liabilities. A company may also obtain funds by selling shares of stock to investors in exchange for ownership rights. The total amount paid in by stockholders is ownership of shares of common stock and called paid-in capital. A creditor has a legal right to be paid at the agreed-upon time. However, stockholders have no legal right to expect any payments on a regular basis. The payments paid to stockholders are called dividends.Investing activity: Investing activities involve the purchase of the resources a company needs in order to operate. These resources can be buildings, furniture, computers, and delivery trucks among many other capital investments. Resources owned by a business are called capital assets. Assets have different types and names. Various, non-current, and tangible assets are called property, plant, and equipment (PPE).Operating activity: Once a business has assets, it can begin its operations. The amounts earned on the sale of its products or services are called revenues. Sources of revenues common to many businesses are sales revenues, service revenues, and interest revenues (typically not operating revenues but financing revenues).5. Accounting is sometimes described as the language of business. What is meant by this description?Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. Specifically, accounting provides information about the reporting entity that is useful to present and potential investors, creditors, and other information users in decisions about providing resources to the entity. As we often say, accounting is a business language.。
《会计专业英语》习题答案人大版Chapter 8
Chapter 8 Financial Statements and Financial Statement AnalysisMultiple Choice Questions1. A2. C3. B4. B5. D6. C7. B8. D9. A 10. B 11. A 12. C 13.D 14. A 15. A 16. A 17. B 18. B 19. B 20. DDiscussion Questions1. Is the measurement of net income absolutely accurate? Why or why not?The measurement of net income is not absolutely accurate due to the assumptions and estimates in the accounting process. An Income Statement has certain limitations. For example, the amounts shown for depreciation expense are based upon estimates of the useful lives of the company’s tool, equipment, and building. In addition, the Income Statement includes only those events that have been evidenced by actual business transactions. Perhaps during the year, the company’s advertising has caught the attention of many potential customers, who may be the sources of future income. However, the Income Statement cannot reflect the unrealized revenue. Only after the real transactions take place, can the sales revenues be recognized.2. What are the three types of business activities? Give examples of each type of activity.The three types of business activities include operating, investing, and financing activities. Operating activities include the cash effects of transactions that create revenues and expenses in normal course of business. This category is the most important. It shows the cash provided by company operations, which is generally considered to be the best measure of a company’s ability to generate sufficient cash to continue as a going concern. They include sales of goods and services, payments to supplies of merchandise and services.Investing activities include the cash effects of transactions involving plant assets, intangible assets, and investments. They include purchase of property, plant, andequipment, investments in debt or equity securities of other entities.Financing activities involve liability and owners’ equity items. They include: (1) obtaining resources from owners and providing them with a return on their investments, and (2) borrowing money from creditors and repaying the amounts borrowed.3. What types of information are presented in the notes to the financial statements?A set of financial statements is normally accompanied by several notes. Notes to the financial statements are the means of explaining the items presented in the main body of financial statements. Notes disclose information useful in interpreting the statements and are an integral part of the financial statements.Many items are disclosed in notes accompanying the financial statements. Among the most useful are the followings:(1) Accounting policies and methods;(2) Unused lines of credit;(3) Significant commitments and loss contingencies;(4) Dividends in arrears;(5) Assets pledged to secure specific liabilities;(6) Changes in accounting policies and methods.4. Distinguish between trend change analysis and component percentage analysis. Which will be better suited for analyzing the changes in sales over several years?Trend changes are the changes in financial statement items from a base year to the following or preceding years. To compute trend change, a base year is firstly selected and each item in the financial statements for the base year is given a weight of 100 percent. Then, each item in the financial statements for the following or preceding years is expressed as a percentage of the base-year amount.Component percentage analysis is the proportional expression of each financial statement item in a given period to a base amount within the financial statement.Trend change analysis is better for analyzing the changes in sales over several years.5. Explain the ratios used to evaluate profitability. Explain briefly how each is computed.Profitability ratios measure the degree of success or failure of a company in a given year. Usually the key ratios include gross profit ratio, profit margin on sales, return on assets, return on equity, earnings per share, price-earnings ratio, and payout ratio.(1) Gross profit ratio.Gross profit ratio is computed by dividing gross profit by net sales. Gross profit (also known as gross margin) is the difference between net sales and the cost of goods sold.Gross profit = Net sales - Cost of goods soldGross profit ratio = Gross profitNet sales(2) Profit margin on sales.Profit margin on sales is computed as dividing net income by net sales. Net income is the difference between net sales and all expenses (including cost of goods sold). A company can improve its profit margin on sales by increasing its gross profit rate and/or by controlling its operating expense and other expenses.Profit margin on sales = Net incomeNet sales(3) Return on assets (ROA).ROA is computed by dividing net income by average total assets. Average total assets are computed by adding the beginning and ending values of total assets and dividing the total by two.ROA = Net incomeAverage total assets(4) Return on common owners equity (ROE).ROE equals net income less preferred dividends, divided by average common owners’ equity. Average common owners’ equity is computed by adding the beginning and ending values of total common owners’ equity and dividing the total by two.ROE = Net income-PreferreddividendsAverage common owners’ equity(5) Earnings per share (EPS).EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. The weighted-average number of shares outstanding for the year is determined by multiplying the number of shares outstanding by the fraction of the year in which the number of shares outstanding remained unchanged.EPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding(6) Price-earnings ratio (P/E ratio).P/E ratio is computed by dividing the current market price per share of a company’s stock by its annual EPS.P/E ratio = Stock price pershareEarning pershare(7) Payout ratio.Payout ratio equals cash dividends paid to common stockholders divided by net income (less preferred dividends).Payout ratio = Cash dividendsNet income -Preferreddividends6. Why might earnings per share be more significant to a stockholder in a large corporation than the total amount of net income?Earnings per share shows the dollars earned by each share of common stock. EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. That is, a stockholder can know the net income he earns on the share of common stocks he owns.However, based on the total amount of net income, a stockholder cannot know how much he earns from his shares.7. Company C has a current ratio of 3 to pany D has a current ratio of 2 to 1. Does this mean that company C’s operating cycle is longer than company D’s? Why or why not?No, this does not mean that company C’s operating cycle is longer than company D’s. A company’s operating cycle is calculated as”Operating cycle=days to collect accounts receivable + days to sell inventoryDays to collect accounts receivable = 365Accounts receivable turnover rateDays to sell inventory = 365Inventory turnover rateAlthough Company C has a higher current ratio, we cannot calculate days to Days to collect accounts receivable and Days to sell inventory based on the information.8. Which ratio or ratios do you think should be of the greatest interest to:(1) A bank contemplating a short-term loan?A bank contemplating a short-term loan should be interested in such financial ratios as working capital, current ratio, quick ratio, and current cash debt coverage ratios.(2) An investor in common stock?An investor in common stock should be interested in such financial ratio as gross profit ratio, profit margin on sales, return on assets, return on equity, return on investment, earnings per share, price-earnings ratio, and payout ratio.9. Mr. Wang, the chief marketing officer, wants to reduce the selling price of his company’s products by 10% to increase market share. He says, “I know this will reduce our gross profit rate, but the increased number of units sold will make up for the lost margin.” Before this action is taken, what other factors does the company need to consider?Gross profit rate = Gross profitNet salesGross profit = Net sales - Cost of goods soldFrom the above, we know that gross profit rate is determined both by net sales and cost of goods sold. Reducing the net sales does not always lead to a reduced gross profit rate. If cost of goods sold greatly reduces, it is possible that gross profit ratio increases. If cost of goods sold increases, it is possible that the increased number of units sold will not make up for the lost margin. Therefore, before this action is taken, the company needs to consider cost of goods sold of his company’s products.10. Mr. Gao, the chief executive officer (CEO), is puzzled. During last year,his company experienced a net loss of $960,000, yet its cash increased by $540,000in the same year. Explain to the CEO how this could occur.Profit is the difference between revenues and expenses for a specified period oftime. If expenses are greater than revenues, the difference is net loss. Net income/netloss is measured on an accrual basis, while cash flows are measured on a cash basis.Under accrual basis of accounting, companies report revenue when earned, even if cashhas not been received, and they report expenses when incurred, even if cash has notbeen paid. As a result, net income/net loss is not the same as net cash.In this case, the net loss of $960,000 is the result of revenues minus expensesduring last year. It is measured on an accrual basis. However, the increased cash of $540,000 is the net cash from operating, investing, and financing activities during lastyear. It is measured on a cash basis. So, it is not strange that his company experienceda net loss of $960,000, and its cash increased by $540,000 in the same year.ProblemsProblem 8-1A condensed balance sheet for Company E prepared at the end of the year is as follows:AssetsCash $ 90,000Accounts receivable 168,000 Accounts payable 85,000 Inventory 350,000 Long-term liabilities 300,000 Prepaid expenses 75,000 Capital stock ($3 par) 330,000 Plant and equipment (net) 520,000 Retained earnings 563,000 Other assets 105,000Total $1,308,000 Total $1,308,000During the year the company earned a gross profit of $1,550,000 on sales of$3,200,000. Accounts receivables, inventory, and plant assets remained almost constantin amount through the year, so year-end figures may be used rather than the average.This company issued no preferred stocks. (红字标黄色是更正信息)RequiredCompute the following: (Carry to two decimal places)(1) Current ratioCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000+$168,000+$350,000+$75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Current ratio = Current assets Current liabilities = $683,000$115,000 = 5.94(2) Quick ratioQuick assets = cash + accounts receivable= $90,000 + $168,000= $258,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Quick ratio = Quick assets Current liabilities = $258,000$115,000 = 2.24(3) Working capitalCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000 + $168,000 + $350,000 + $75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Working capital = current assets - current liabilities= $683,000 - $115,000= $568,000(4) Debt ratioTotal assets = $1,308,000Total liabilities = notes payable + accounts payable + long-term liabilities = $30,000 + $85,000 + $300,000= $415,000Debt ratio = Total liabilitiesTotal assets = $415,000$1,308,000= 31.72%(5) Accounts receivable turnover (all sales were on credit) Net sales = $3,200,000Average accounts receivable = $168,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$3,200,000$168,000=19.05 times per year(6) Inventory turnoverCost of goods sold = net sales – gross profit= $3,200,000 - $1,550,000= $1,650,000Average inventory = $350,000Inventory turnover rate = Cost of goods soldAverage (net) inventory= $1,650,000$350,000= 4.71 times per year(7) Profit margin on salesNet sales = $3,200,000Net income = retained earnings = $563,000Profit margin on sales = Net incomeNet sales = $563,000$3,200,000= 17.59%(8) Return on assetsNet income = retained earnings = $563,000 Average total assets = $1,308,000ROA = Net incomeAverage total assets = $563,000$1,308,000= 43.04%(9) Return on equity (this company issued no preferred stocks) Net income = retained earnings = $563,000Average common owners’ equity = capital stock + retained earnings= $330,000 + $563,000= $893,000ROE = Net income-Preferreddividends Average common owners’ equity = $563,000$893,000= 63.05%(10) Earnings per share (this company issued no preferred stocks)Net income = retained earnings = $563,000Weighted-average number of shares outstanding = $330,000/$3 = 110,000 sharesEPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding =$563,000110,000= $5.12 per shareProblem 8-2The following selected data are from a recent annual report of company F. Dollar amounts are stated in millions.Beginning of the year End of the yearTotal current assets $9,230 $9,378Total current liabilities 4,836 5,902Total assets 31,125 33,561Total owners’ equity16,028 17,162Operating income 4,280Net income $3,735The company has long-term liabilities that bear interests at annual rate from 7 percent to 10 percent.Required1. Compute the company’s current ratio at: (1) the beginning of the year and, (2) the end of the year. (Carry to two decimal places)(1) Current ratio at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Current ratio = Current assetsCurrent liabilities = $9,230$4,836= 1.91(2) Current ratio at the end of the year Total current assets = $9,378Total current liabilities = $5,902Current ratio = Current assetsCurrent liabilities = $9,378$5,902= 1.592. Compute the company’s working capital at: (1) the beginning of the year and, (2) the end of the year. (Express dollar amounts in thousands)(1) Working capital at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Working capital = current assets - current liabilities= $9,230 - $4,836= $4,394(2) Working capital at the end of the yearTotal current assets = $9,378Total current liabilities = $5,902Working capital = current assets - current liabilities= $9,378 - $5,902= $3,4763. Is the company’s short-term, debt-paying ability improving or deteriorating? Company F’s short-term debt-paying ability has declined, as evidenced by its lower current ratio at the end of the year (1.59 vs. 1.91). The dollar amount of working capital has also decreased ($4,394 million to $3,476 million) which means that the company has a lesser ‘cushion’ between its currently-maturing obligations and its most liquid assets.4. Compute the company’s (1) return on average total assets and (2) return on average total owners’ equity. (Round the average assets and average equity to the nearest dollar and final computations to the nearest 1 percent)(1) Return on average total assetOperating income = $4,280Average total assets = ($31,125 + $33,561)/2 = $32,343ROA = Net incomeAverage total assets = $4,280$32,343= 13.23%(2) Return on average total owners’ equity Net income = $3,735Average owners’ equity = ($16,028 + $17,162)/2= $16,595ROE = Net income-Preferreddividends Average common owners’ equity = $3,735$16,595= 22.51%e. As an equity investor, do you think that company F’s management is utilizing the company’s resources in a reasonably efficient manner? Explain.Yes, company F’s management is using the company’s assets to generate a strong return on both assets (13.23%) and owners’ equity (22.51%), while maintaining strong liquidity with which to satisfy its obligations as they mature.Problem 8-3The following selected data for company M and company N for the year end are as follows:company M company NNet credit sales $1,600,000 $1,500,000Cost of goods sold 1,250,000 1,120,000Cash 175,000 89,000 Accounts receivable (net) 180,000 155,000 Inventory 72,000 218,000Current liabilities $210,000 $190,000Assume that the year-end balances shown for accounts receivable and for inventory also represent the average balances of these items throughout the year.Required1. For each of the two companies, compute the following:(1) Working capitalCompany M:Total current assets = cash + accounts receivable + inventory= $175,000 + $180,000 + $72,000= $427,000Total current liabilities = $210,000Working capital = current assets - current liabilities= $427,000 - $210,000= $217,000Company N:Total current assets = cash + accounts receivable + inventory= $89,000 + $155,000 + $218,000= $462,000Total current liabilities = $190,000Working capital = current assets - current liabilities= $462,000 - $190,000= $272,000(2) Current ratio Company M:Total current assets = $427,000 Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $427,000$210,000 = 2.03 Company N:Total current assets = $462,000 Total current liabilities = $190,000Current ratio = Current assetsCurrent liabilities = $462,000$190,000 = 2.43(3) Quick ratio Company M:Total quick assets = cash + accounts receivable= $175,000 + $180,000 = $355,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $355,000$210,000 = 1.69 Company N:Total quick assets = cash + accounts receivable= $89,000 + $155,000 = $244,000Total current liabilities = $190,000Quick ratio = Quick assetsCurrent liabilities = $244,000$190,000 = 1.28(4) Number of times inventory turned over during the year and the average number of days required to turn over inventory (round computation the nearestday)Company M:Cost of goods sold = $1,250,000 Average inventory = $72,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,250,000$72,000= 17.36 times per yearDays to sell inventory = 365Inventory turnover rate = 36517.36= 21 daysCompany N:Cost of goods sold = $1,120,000 Average inventory = $218,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,120,000$218,000= 5.14 times per yearDays to sell inventory = 365Inventory turnover rate = 3655.14= 71 days(5) Number of times accounts receivable turned over during the year and the average number of days required to collect account receivable (round computation the nearest day)Company M:Net credit sales = $1,600,000Average accounts receivable = $180,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,600,000$180,000=8.89 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3658.89= 41 daysCompany N:Net credit sales = $1,500,000Average accounts receivable = $155,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,500,000$155,000= 9.68 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3659.68= 38 days2. From the viewpoint of short-term creditor, comment on the quality of each company’s working capital. To which company would you prefer to sell $65,000 in merchandise on a 30-day open account?As Company M’s working capital ($217,000) is more than company N’s working capital ($272,000), from the viewpoint of short-term creditor, the quality of company N’s working capital is better than that of company M’s.I prefer to sell $65,000 in merchandise on a 30-day open account to company M,as company M spends less days (21 days) to sell inventory than company N (71 days).Problem 8-4The following data are selected from the financial statements of company G, a retail store:From the balance sheet:AssetsCash $46,000 Accounts receivable (net) 205,000 Inventory (at cost) 295,000 Plant & equipment (net of depreciation) 605,000 Current liabilities 210,000 Total owners’ equity600,000 Total assets 1,700,000 From the income statement:Net sales $3,000,000 Cost of goods sold 2,250,000 Operating expenses 525,000 Interest expense 85,000 Income tax expense 22,400 Net income 117,600 From the statement of cash flows:Net cash provided by operating activities $62,000 (including interest paid of $65,000) (68,000) Net cash used in investing activitiesFinancing activities:Amounts borrowed$52,000 Repayment of amounts borrowed (23,000) Dividends paid(21,000)Net cash provided by financing activities 8,000 Net increase in cash during the year$2,000Assume that the year-end balances shown for total assets and total owners’ equity also represent the average balances of these items throughout the year. This company issued no preferred shares. Required1. Explain how the interest expense shown in the income statement could be $85,000, when the interest payment appearing in the statement of cash flows is only $65,000.In the statement of cash flows, amounts are reported on a cash basis, whereas in the income statement, they are reported under the accrual basis. Apparently $20,000 of the interest expense incurred during the year had not been paid as of year-end. This amount should be included among the accrued expenses appearing as a current liability in the company’s balance sheet.2. Compute the following ratios/Dollar Amounts (round to one decimal place): (1) Current ratioTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000 = $546,000Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $546,000$210,000 = 2.6(2) Working capitalTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000= $546,000Total current liabilities = $210,000Working capital = Total current assets - Total current liabilities= $546,000 - $210,000= $336,000(3) Quick ratioTotal quick assets = = cash + accounts receivable= $46,000 + $205,000= $251,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $251,000$210,000= 1.2(4) Debt ratioTotal liabilities = total assets – total owners’ equity= $1,700,000 - $600,000= $1,100,000Total assets = $1,700,000Debt ratio = Total liabilitiesTotal assets = $1,100,000$1,700,000=64.7%(5) Times interest earnedIncome before income taxes and interest expense= net income + income taxes + interest expense= $117,600 + $22,400 + $85,000= $225,000Interest expense = $85,000Times interest earned = Income before income taxes and interestexpenseInterestexpense= $225,000$85,000= 2.6 times(6) Cash debt coverage ratioNet cash provided by operating activities = $62,000Average total liabilities = $1,100,000Cash debt coverage ratio = Net cashprovided by operating activitiesAverage total liabilities=$62,000$1,100,000= 0.06 times3. Comment on these measurements and evaluate Company G’s short-term debt-paying ability.By traditional measures, company G’s current ratio (2.6 to 1) and quick ratio (1.2 to 1) appear quite adequate. The company also generates a positive cash flow from operating activities ($62,000) which is about triple the amount of its dividend payments to stockholders ($21,000).4. Compute the following ratios:(1) Gross profit rateGross profit = Net sales - Cost of goods sold = $3,000,000 - $2,250,000 = $750,000 Net sales = $3,000,000Gross profit ratio = Gross profitNet sales = $750,000$3,000,000= 25%(2) Profit margin on sales Net income = $117,600 Net sales = $3,000,000Profit margin on sales = Net incomeNet sales = $117,600$3,000,000= 3.9%(3) Return on assetsNet income = $117,600 Average total assets = $1,700,000ROA = Net incomeAverage total assets = $117,600$1,700,000= =6.9%(4) Return on equityThis company issued no preferred shares. Net income = $117,600Average common owners’ equity = $600,000ROE = Net income-Preferreddividends Average common owners’ equity = $117,600$600,000= 19.6%(5) Payout ratioThis company issued no preferred shares. Net income = $117,600Cash dividends = $21,000Payout ratio = Cash dividendsNet income -Preferreddividends = $21,000$117,600= 17.9%5. Comment on Company G’s performance under these measurements.Company G’s profit margin on sales is 3.9%, indicating that one dollar of net sales results in net income of 3.9 cents. Investors and management can assess the company’s profitability by comparing its profit margin ratio with its competitors’ in the same industry. Profit margin on sales vary across industries. Retail stores generally experience lower profit margins.The 6.9% return on assets is not adequate by traditional standards to a retail store. However, the 19.6% return on equity is high. The problem arises because of company G’s relatively large interest expense, which is stated as $85,000 for the year.At year-end, company G has total liabilities of $1,100,000 ($1,700,000 total assets less $600,000 in owners’ equity). But $210,000 of these are current liabilities, most of which do not bear interest. Thus, company G has about $890,000 in interest-bearing debt.Interest expense of $85,000 on $890,000 of interest-bearing debt indicates an interest rate of approximately 9.55%. Obviously, it is not profitable to borrow moneyat 9.55%, and then reinvest these borrowed funds to earn a pretax return of only 6.9%. If company G cannot earn a return on assets that is higher than the cost of borrowing, it should not borrow money.Company G has a payout ratio of 17.9%, indicating that it has decided that it can and should pay 17.9% of its earnings to its owners. A higher percentage could mean that it has more cash than it has business opportunities to use that cash. A lower percentage could mean that it has very little cash to spare due to a declining business, or, very little cash to spare because it has many internal opportunities to invest that same cash.6. Discuss the safety of long-term creditors’ claims.Long-term creditors do not appear to have a high margin of safety. The debt ratio of 64.7% is high for American (or Chinese) industry. Also, debt is continuing to rise. During the current year, the company borrowed an additional $52,000, while repaying only $23,000 of existing liabilities. In the current year, interest payments alone ($65,000) was more than the net cash flow from operating activities ($62,000).A general rule of thumb is that a cash debt coverage ratio below 0.20 times is cause for additional examination. Company G’s cash debt coverage ratio is 0.06 times, below the 0.20 threshold, suggesting that the company is not solvent.。
会计英语课后题答案Answer for lesson4
Exercise4.1 Select the best answer for each of the following unrelated items1. C. This is not a business combination as control has not been achieved given Mr. Bill's veto power. XYZ has significant influence and should account for this investment using the equity method.2. A. When control exists, the parent must consolidate the subsidiary.3. B. This is the acquisition method; it includes 100% of the fair value of the subsidiary.4. B. The subsidiary’s shares are eliminated upon consolidation.5. C. 600,000 + 1,432,000 – 56,000 – 45,000 + 120,000 = 2,051,000.6. C. Undepreciated goodwill = €80,000 –20,000 = €60,000.7. C. Net income using the equity method is the same as consolidated net income, except that it is reported on one line.8. B. Cost and equity methods are the two acceptable methods to record investment transactions.4.2 Consolidation of 100% owned subsidiaries at the date of acquisitionOn January 1, 20X6, Persistent Inc. purchased 100% of the outstanding ordinary shares of Reluctant Co. f or €500,000. The Statements of Financial Position for both enterprises immediately after the transaction appear below. Reluctant’s book values equaled their fair values, except for the following:Persistent Inc. Reluctant Co.Book value Fair valueCash € 15,000€ 20,000 € 20,000 Accounts receivable 205,000 90,000 90,000 Inventory 160,000 130,000 160,000Plant and equipment 700,000 560,000 540,000Land 80,000 90,000 120,000 Investment in Reluctant Co. 500,000 —Goodwill — 25,000 —€ 1,660,000 € 915,000Accounts payable € 250,000 € 170,000 170,000Long-term debt 640,000 440,000 450,000 Ordinary shares 350,000 240,000Retained earnings 420,000 65,000€ 1,660,000€ 915,000EnquiredPrepare consolidated financial statements for Persistent Inc. immediately after its acquisition of Reluctant Co., using the direct method.Calculation and allocation of purchase discrepancyCost of investment in Reluctant Co.: € 500,000Notice that goodwill that existed on Reluctant’s books at the date of acquisition had a fair value of €0 at the date of acquisition. The amount provides evidence of a previous acquisition of another enterprise by Reluctant. From Persistent’s point of view, this intangible asset has no value and represents a decrease in Reluctant’s net asset value. This issue will be covered in more depth in the next topic.4.3Consolidation less than 100% owned subsidiaries after the date of acquisition using working paper approach On January 1, 20X5, Pascal Ltd. purchased 90% of Socrates Co. for €1,655,000 cash. At that time, Socrates had the following Statement of Financial Position.SOCRATES CO.Statement of Financial PositionAt January 1, 20X5Book value Fair valueCash € 165,000€ 165,000Accounts receivable 285,000 270,000Inventory 300,000 345,000Plant and equipment — Net 2,250,000 2,400,000€ 3,000,000Accounts payable € 270,000 270,000Long-term debt 1,200,000 1,150,000Ordinary shares 600,000Retained earnings 930,000€ 3,000,000The long-term debt is payable in 10 years. The plant and equipment have an average remaining useful life of 10 years and are being depreciated on a straight-line basis. The annual goodwill impairment tests revealed a €2,000 loss in 20X5 and a €5,100 loss in 20X6. (These losses pertain to Pascal’s 90% ownership of Socrates. As such, the full amounts should be deducted from the consolidated earnings.) The following occurred in 20X5: Socrates earned €1,300,000 and paid dividends of €75,000.Pascal uses the equity method to record its investment in Socrates but must report on a consolidated basis. At December 31, 20X6, the following financial statements were available:Statements of Financial PositionAt December 31, 20X6Pascal SocratesCash € 371,600€ 239,000Accounts receivable 252,500 517,500Inventory 1,455,000 562,500Plant and equipment — Net 3,946,500 2,994,500Investment in subsidiary 2,876,400€ 8,902,000€ 4,313,500Accounts payable € 675,000€ 73,500Long-term debt — 1,200,000Future income taxes 160,000 75,000Ordinary shares 1,500,000 600,000Retained earnings 6,567,000 2,365,000€ 8,902,000€ 4,313,500Statements of Income and Retained EarningsFor the year ended December 31, 20X6Pascal SocratesSales €14,609,550€ 2,475,000Investment income 183,900 —Other income — 100,000Cost of sales 11,500,000 1,710,000Depreciation 159,000 156,000Other expenses 606,750 421,500Income tax expense 506,250 57,50012,772,000 2,345,000Net income 2,021,450 230,000Beginning balance, retained earnings 5,045,550 2,155,000Dividends (500,000) (20,000)Ending balance, retained earnings € 6,567,000 € 2,365,000Assume that Pascal elects to value the non-controlling interest in Socrates’ at the NCI’s percentile interest in the identifiable net assets of the subsidiary.Required1. Complete the calculation and allocation of purchase discrepancy and non-controlling interest.2. Complete the purchase discrepancy and adjustment schedule.3. Prepare eliminating entries for 20X6. Be sure to include appropriate commentary in support of each entry. Solution:1. Calculation and allocation of purchase discrepancy and non-controlling interestCost of 90% of Socrates at January 1, 20X5 € 1,655,000Fair value of identifiable net assets(€1,760,000 ×90%) 1,584,000Balance — Goodwill € 71,000Purchase discrepancy allocated toAccounts receivable –15,000Inventory 45,000Plant and equipment 150,000Long term debt 50,000 € 230,000TOTAL € 301,000Non-controlling interest: €1,760,000 ×10% = €176,0002.Purchase discrepancy adjustment schedule3. Eliminating entries#1 Investment income (230,000 ×90% – 23,100) ............ 183,900Dividends — S ........................................................ 18,000Investment in subsidiary ......................................... 165,900To eliminate 20X6 equity basis investment income and the parent’s share of Socrates’ 20X6 dividends against the investment account#2 Ordinary shares ............................................................. 600,000Retained earnings, January 1, 20X6 ............................. 2,155,000Purchase discrepancy .................................................... 249,000Investment in subsidiary ......................................... 2,710,500Non-controlling interest .......................................... 293,500To eliminate start-of-the-year retained earnings and ordinary shares of Socrates against the start-of-the-year balance of the investment account and to establish the purchase discrepancy and non-controlling interest at the end of December 31, 20X5#3 Other expenses (interest) .............................................. 5,000Depreciation expense .................................................... 15,000Goodwill impairment loss ............................................ 5,100Plant and equipment ..................................................... 120,000Goodwill ....................................................................... 63,900Long-term debt ............................................................. 40,000Purchase discrepancy .............................................. 249,000To allocate the purchase discrepancy amount at the end of 20X5, to record depreciation of purchase discrepancies for 20X6, and to set up the undepreciated purchase discrepancy balances at the end of 20X6#4 Non-controlling interest — I/S ..................................... 21,000Non-controlling interest — SFP ............................. 21,000To allocate the non-controlling interest’s share of 20X6 net income#5 Non-controlling interest — SFP ................................... 2,000Dividends — I/S ..................................................... 2,000To allocate non-controlling interest’s percentage of dividends paid by Socrates in 20X64.4Consolidation less than 100% owned subsidiaries after the date of acquisition using direct method and working paper methodOn January 1, 20X2, Ping Inc. acquired 75% of Sing Co. for €1,500,000. Sing’s condensed balance sheet and fair values immediately before the acquisition were as follows:SING CO. Statement of Financial PositionAt December 31, 20X1Book value Fair valueCash and accounts receivable € 540,000 € 540,000Inventory 250,000 270,000Plant and equipment (net) 1,435,000 1,575,000€ 2,225,000 € 2,385,000Current liabilities € 785,000€785,000Ordinary shares 1,200,000Retained earnings 240,000€ 2,225,000•Sing’s inventory turns over 6 times in a year.•Plant and equipment have an estimated useful life of 10 years.•Ping’s annual goodwill impairment test revealed a €30,000 loss for 20X3. The impairment is attributed to economic decline.•On December 31, 20X3, Ping owes Sing €18,000 related to an intercompany interest-free loan.The separate entity financial statements for the two companies at December 31, 20X3, are as follows:Income StatementsFor the year ended December 31, 20X3PING SINGSales € 3,600,000€ 2,800,000Investment income 237,000 —Total revenue 3,837,000 2,800,000Cost of goods sold 1,600,000 1,500,000Amortization expense 294,000 730,000Administration and other expenses 600,000 200,000Total expenses 2,494,000 2,430,000Net income € 1,343,000€ 370,000Statements of Changes in EquityFor the year ended December 31, 20X3Balance, January 1 — Retained earnings € 2,504,000€ 1,546,000Net income 1,343,000 370,0003,847,000 1,916,000Dividends 400,000 200,000Balance, December 31 — Retained earnings € 3,447,000€ 1,716,000Statements of Financial PositionAt December 31, 20X3Cash € 100,000€ 40,000Accounts receivable 960,000 840,000Inventory 1,200,000 500,000Plant and equipment (net) 1,914,000 1,956,000Investment in Sing Co. 2,541,000 —€ 6,715,000€ 3,336,000Current liabilities € 1,068,000€ 420,000Ordinary shares 2,200,000 1,200,000Retained earnings 3,447,000 1,716,000€ 6,715,000€ 3,336,000Additional information:(1) Company PING selected to value the NCI at NCI’s share of the fair value of the identifiable net asset of Sing.(2) Parent amortizes 100% of goodwill, FVI is amortized according to the proportionate share the parent and NCI own Required1. Prepare the Year 3 consolidated statements for Ping Inc. for the year ended December 31, Year 3, using the direct approach.2. Prepare a schedule of the changes in non-controlling interest since acquisition.3. Prepare the five entries necessary for the working paper approach and provide descriptions.Solutions:1.1112。
会计英语课后题word版本
Unlimited liability is an advantage of a sole proprietorship. ×A sole proprietorship is a business owned by one or more persons. ×As a general rule, revenues should not be recognized in the accounting records until it is received in cash. ×In the partnership form of business, the owners are called stockholders. ×The area of accounting aimed at serving the decision making needs of internal users is:A Financial accounting.B Managerial accounting.C External auditing.D SEC reporting.E Bookkeeping.The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:A Business entity assumption.B Monetary unit assumption.C Going-concern assumption.D Time-period assumption.E ObjectivityExternal users of accounting information include all of the following except:A Shareholders.B Customers.C Purchasing managers.D Government regulators.E Creditors.The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:A Time-period assumption.B Business entity assumption.C Going-concern assumption.D Revenue recognition principle.E Cost principle.If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:A $95,000.B $137,000.C $138,500.D $140,000.E $150,000.The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?A Monetary unit assumption.B Going-concern assumption.C Cost principle.D Business entity assumption.E Revenue recognition principle.If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:A Decreased $105,000.B Decreased $45,000.C Increased $30,000.D Increased $45,000.E Increased $105,000.If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:A Increased $22,000.B Decreased $22,000.C Increased $89,000.D Decreased $156,000.E Increased $156,000. If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?A Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.B Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.C Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.D There would be no effect on the accounts because the accounts are affected by the same amount.E None of these.How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?A +$10,000 accounts receivable, -$10,000 accounts payable.B +$10,000 accounts receivable, +$10,000 accounts payable.C +$10,000 accounts receivable, +$10,000 cash.D +$10,000 accounts receivable, +$10,000 revenue.E +$10,000 accounts receivable, -$10,000 revenueAssets created by selling goods and services on credit are:A Accounts payable.B Accounts receivable.C Liabilities.D Expenses.E Equity.On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of June 30 of the current year?A $8,300B $13,050C $20,500D $31,100E $40,400The excess of expenses over revenues for a period is:A Net assets.B Equity.C Net loss.D Net income.E A liability.The accounting equation implies that: Assets + Liabilities = Equity. ×owner's equity are the owner's claim on assets. √Increases in liability accounts are recorded as debits. ×Crediting an expense account decreases it. √If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance. √The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable. √If a company provides services to a customer on credit the selling company should credit Accounts Receivable. ×A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):A Journal.B Posting.C Trial balance.D Account.E Chart of accounts.Which of the following statements is correct?A When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.B Promises of future payment by the buyer are called accounts receivable.C Increases and decreases in cash are always recorded in the owner's capital account.D An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.E Accrued liabilities include accounts receivable.Prepaid expenses are:A Payments made for products and services that do not ever expire.B Classified as liabilities on the balance sheet.C Decreases in equity.D Assets that represent prepayments of future expenses.E Promises of payments by customers.A debit:A Always increases an account.B Is the right-hand side of a T-account.C Always decreases an account.D Is the left-hand side of a T-account.E Is not need to record a transaction.Which of the following statements is incorrect?A The normal balance of accounts receivable is a debit.B The normal balance of owner's withdrawals is a debit.C The normal balance of unearned revenues is a credit.D The normal balance of an expense account is a credit.E The normal balance of the owner's capital account is a credit.The first step in the processing of a transaction is to analyze the transaction and source documents. √Preparation of a trial balance is the first step in the analyzing and recording process. ×Source documents provide evidence of business transactions and are the basis for accounting entries. √A revenue account normally has a debit balance. ×Accounts are normally decreased by debits. ×All of the following statements regarding a sales invoice are true except:A A sales invoice is a type of source document.B A sales invoice is used by sellers to record the sale.C A sales invoice is used by buyers to record purchases.D A sales invoice gives rise to an entry in the accounting process.E A sales invoice does not provide objective evidence about a transaction.The accounting process begins with:A Analysis of business transactions and source documents.B Preparing financial statements and other reports.C Summarizing the recorded effect of business transactions.D Presentation of financial information to decision-makers.E Preparation of the trial balance.Source documents include all of the following except:A Sales tickets.B Ledgers.C Checks.D Purchase orders.A ledger is:A A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.B A journal in which transactions are first recorded.C A collection of documents that describe transactions and events entering the accounting process.D A list of all accounts with their debit balances at a point in time.E A record containing all accounts and their balances used by a company.Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?A Debit Assets $200,000; credit Haddon, Capital, $200,000.B Debit Cash and Land, $200,000; credit Haddon, Capital, $200,000.C Debit Cash $70,000; debit Land $130,000; credit Haddon, Capital, $200,000.D Debit Haddon, Capital, $200,000; credit Cash $70,000, credit Land, $130,000.On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:A Debit Prepaid Insurance, $1,800; credit Cash, $1,800.B Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.C Debit Prepaid Insurance, $360; credit Insurance Expense, $360.D Debit Insurance Expense, $360; credit Prepaid Insurance, $360.E Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?A $75.B $125.C $175.D $250On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31?A $1,350.00.B $450.00.C $1,012.50.D $337.50.If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:A Debit Cash and credit Legal Fees Earned.B Debit Cash and credit Unearned Legal Fees.C Debit Unearned Legal Fees and credit Legal Fees Earned.D Debit Legal Fees Earned and credit Unearned Legal Fees.E Debit Unearned Legal Fees and credit Accounts Receivable.The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:A Accumulated depreciation.B A contra account.C The matching principle.D Depreciation expense.An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):A Accrued expense.B Contra account.C Accrued revenue.D Intangible asset.On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include:A A debit to an expense for $5,625.B A debit to a prepaid expense for $5,625.C A debit to an expense for $1,875.D A debit to a prepaid expense for $1,875.On June 30 Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30 Apricot should record:A A credit to an expense for $7,500.B A debit to an expense for $7,500.C A debit to a prepaid expense for $7,500.D A credit to a prepaid expense for $7,500. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:A An overstatement of net income.B An overstatement of assets.C An overstatement of liabilities.D An overstatement of equity.An adjusting entry could be made for each of the following except:A Prepaid expenses.B Depreciation.C Owner withdrawals.D Unearned revenues.Revenues are:A The same as net income.B The excess of expenses over assets.C Resources owned or controlled by a companyD The increase in equity from a company’s earning activities.E The costs of assets or services used.Another name for equity is:A Net income.B Expenses.C Net assets.D Revenue.E Net loss.A payment to an owner is called a(n):A Liability.B Withdrawal.C Expense.D Contribution.E Investmen The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?A 900,000.B $700,000.C $500,000.D 200,000.E It is impossible to determine unless the amount of this owners' investment is known. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?A Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?A Assets increase by $75,000 and expenses increase by $75,000.B Assets increase by $75,000 and expenses decrease by $75,000.C Liabilities increase by $75,000 and expenses decrease by $75,000.D Assets decrease by $75,000 and expenses decrease by $75,000.E Assets increase by $75,000 and liabilities increase by $75,000.Every business transaction leaves the accounting equation in balance. √Owner's investments are increases in equity from a company's earnings activities. ×Owner’s withdrawals are expenses. ×Net income occurs when revenues exceed expenses. √In a double-entry accounting system, the total amount debited must always equal the total amount credited. √Increases in liability accounts are recorded as credits. √Asset accounts normally have credit balances and revenue accounts normally have debit balances. ×If a company purchases land paying cash, the journal entry to record this transaction will include a debit to Cash. ×If a company provides services to a customer on credit the selling company should debit cash. ×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. ×A formal promise to pay (in the form of a promissory note) a future amount is a(n):A Unearned revenue.B Prepaid expense.C Credit account.D Note payable.A credit is used to record:A An increase in an expense account.B A decrease in an asset account.C A decrease in an unearned revenue account.D A decrease in a revenue account.Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include aA Debit to Telephone Expense for $300.B Credit to Accounts Payable for $300.C Debit to Cash for $300.D Credit to Telephone Expense for $300. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a:A Debit to Unearned Management Fees for $60,000.B Credit to Management Fees Earned for $60,000.C Credit to Cash for $60,000.D Credit to Unearned Management Fees for $60,000。
会计英语第四版参考答案
会计英语第四版参考答案会计英语第四版参考答案会计英语是会计专业学生必修的一门课程，它旨在帮助学生掌握会计领域的专业术语和表达方式。
《会计英语第四版》是一本广泛使用的教材，其中包含了大量的习题和案例，供学生练习和巩固知识。
本文将为大家提供《会计英语第四版》的参考答案，希望对学习者有所帮助。
第一章：会计概述1. 会计的定义是什么？会计是一门研究经济活动并提供相关信息的学科，它通过记录、分类、汇总和报告财务信息，帮助用户做出经济决策。
2. 什么是会计要素？会计要素是构成会计信息的基本要素，包括资产、负债、所有者权益、收入和费用。
3. 会计的目标是什么？会计的目标是提供有关企业财务状况、经营成果和现金流量的信息，帮助用户做出正确的经济决策。
第二章：会计准则和规范1. 什么是会计准则？会计准则是规范会计信息记录和报告的原则和规则，它确保财务报表的准确性、可比性和可理解性。
2. 什么是国际财务报告准则（IFRS）？国际财务报告准则是由国际会计准则委员会制定的全球通用的会计准则，旨在提高财务报告的质量和可比性。
3. 什么是美国通用会计准则（US GAAP）？美国通用会计准则是美国财务会计准则委员会制定的会计准则，适用于在美国注册的公司。
第三章：资产负债表1. 什么是资产负债表？资产负债表是一份反映企业财务状况的报表，它列出了企业的资产、负债和所有者权益。
2. 资产负债表的基本公式是什么？资产负债表的基本公式是：资产=负债+所有者权益。
3. 什么是流动资产和非流动资产？流动资产是指在一年内可以变现或消耗的资产，如现金、应收账款等；非流动资产是指长期持有的资产，如固定资产和投资。
第四章：利润表1. 什么是利润表？利润表是一份反映企业经营成果的报表，它列出了企业的收入、费用和利润。
2. 利润表的基本公式是什么？利润表的基本公式是：利润=收入-费用。
3. 什么是毛利润和净利润？毛利润是指企业在销售产品或提供服务后剩余的金额，净利润是指扣除所有费用后的利润。
会计英语参考答案
会计英语参考答案一、选择题1. A. 正确。
本题考查了会计术语"Assets"（资产）的概念。
2. C. 正确。
"Liabilities"（负债）是指企业所欠的债务或责任。
3. B. 正确。
"Equity"（所有者权益）是指企业所有者对企业净资产的所有权。
4. D. 正确。
"Revenue"（收入）是指企业在正常经营活动中产生的经济利益流入。
5. A. 正确。
"Expenses"（费用）是指企业为获取收入而发生的经济利益流出。
二、填空题1. 会计信息的三个主要特征是：__reliability_（可靠性）、__timeliness_（及时性）和__understandability_（可理解性）。
2. 会计的基本假设包括：__accrual basis_（权责发生制）、__continuity_（持续经营）和__consistency_（一致性）。
3. 会计的基本原则包括：__materiality_（重要性）、__objectivity_（客观性）和__prudence_（谨慎性）。
4. 会计的确认原则要求：收入和费用在__profit and lossstatement_（损益表）中体现。
5. 会计的计量原则要求：资产和负债在__balance sheet_（资产负债表）中以__current value_（当前价值）或__historical cost_（历史成本）进行记录。
三、简答题1. 会计信息的作用是什么？答：会计信息的作用包括：帮助投资者和债权人做出投资和融资决策；帮助管理层进行企业经营决策；满足政府监管和税收的需要；以及提供社会公众了解企业经营状况的渠道。
2. 什么是会计循环？答：会计循环是指从收集原始凭证开始，经过记录、分类、汇总、试算平衡、调整、编制报表等一系列会计处理过程，最终生成财务报表的整个流程。
会计英语课后题答案Answerforlesson5
5.1 Select the best answer for each of the following unrelated items1.A2. A3.D4. B5.C6. D7. B0.20 x Prime cost = Direct labor0.20 x Prime cost = $13,000Prime cost = $65,000Prime cost = Direct materials + Direct labor$65,000 = Direct materials + $13,000Direct materials = $52,0008. A0.25 x Conversion costs = Direct labor0.75 x Conversion costs = Manufacturing overhead0.75 x Conversion costs = $45,000Conversion costs = $60,000Conversion costs = Direct labor + Manufacturing overhead$60,000 = Direct labor + $45,000Direct labor = $15,0009.D10. D11.A12. A13.D14. B15.C16. D17. DVariable cost = Change in cost Change in activity= ($11,250 - $9,000) (11,000 - 8,000) = $0.75Fixed cost element = Total cost - Variable cost element= $11,250 - ($0.75 x 11,000) = $3,000Therefore, the cost formula for total shipping cost is $3,000 per period plus $0.75 per pound shipped, or Y = $3,000 + $0.75X.At an activity level of 9,000 pounds shipped, total cost is estimated to be:Y = $3,000 + ($0.75 x 9,000) = $9,75018.C19. D20.C5.2 A partial listing of costs incurred at Rust Corporation during August appears below:Direct materials $ 135,000Utilities, factory $ 11,000Sales commissions $ 69,000Administrative salaries $ 101,000Indirect labour $ 29,000Advertising $ 94,000Depreciation of production equipment $ 31,000Direct labour $ 73,000Depreciation of administrative equipment $ 40,000Required:1. What is the total amount of product cost listed above? Show your work.2. What is the total amount of period cost listed above? Show your work. Solution:1. Product costs consist of direct materials, direct labor, and manufacturing overhead: 25.3 Dinius Corporation has provided the following data for the month of December: Raw material purchases $ 55,000Direct labour cost $ 22,000Manufacturing overhead $ 68,000Inventories:Beginning EndingRaw materials $ 25,000 $ 27,000Work in process $ 16,000 $ 22,000Finished goods $ 39,000 $ 25,000Required:Prepare a Schedule of Cost of Goods Manufactured for December.Solution:Schedule of Cost of Goods Manufactured5.4 Lavell Corporation reported the following data for the month of February: Inventories:Beginning EndingRaw materials $ 34,000 $ 37,000Work in process $ 11,000 $ 23,000Finished goods $ 31,000 $ 56,000Additional information:Sales $ 250,000Raw materials purchases $ 66,000Direct labour cost $ 38,000 Manufacturing overhead $ 70,000Selling expense $ 19,000 Administrative expense $ 37,000Required:1. What is the total amount of manufacturing cost for February? Show your work.2. What is the cost of goods manufactured for February? Show your work.3. What is the cost of goods sold for February? Show your work.4. What is the net operating income for February? Show your work.Solution:1. What is the total amount of manufacturing cost for February? Show your work.2. What is the cost of goods manufactured for February? Show your work.3. What is the cost of goods sold for February? Show your work.4. What is the net operating income for February?5.5 In July, Neidich Inc., a merchandising company, had sales of $295,000, selling expenses of $24,000, and administrative expenses of $29,000. The cost of merchandise purchased during the month was $215,000. The beginning balance in the merchandise inventory account was $25,000 and the ending balance was $30,000. Required:Prepare an Income Statement in good form for July.Solution:5.6 At an activity level of 2,400 units, Koter Corporation's total variable cost is $118,008 and its total fixed cost is $9,000.Required:For the activity level of 2,500 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.Solution:5.7 Parter Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year the operating cost is 7.5 cents per mile. This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year.Required:Estimate the cost formula for truck operating costs using the high-low method. Solution:Total cost at high level of activity: 110,000 x $0.075 = $8,250Total cost at low level of activity: 60,000 x $0.0875 = $5,250Variable cost = Change in cost Change in activity= $3,000 50,000 miles = $0.06 per mileFixed cost element = $8,250 - ($0.06 per mile x 110,000 miles) = $1,650The cost formula is $1,650 per year plus $0.06 per mile.5.8 Siber Inc., a manufacturing company, has provided the following financial data for October:Sales $ 590,000Variable production expense $ 106,000Variable selling expense $ 18,000Variable administrative expense $ 78,000Fixed production expense $ 145,000Fixed selling expense $ 72,000Fixed administrative expense $ 132,000The company had no beginning or ending inventories.Required:a. Prepare an income statement in good form for October using the traditional approach.b. Prepare an income statement in good form for October using the contribution approach.Solution:5.9 Eag Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years:Variable costing net operating income, last year $84,400Variable costing net operating income, this year $87,900Increase in ending inventory, last year 1,300Increase in ending inventory, this year 0Fixed manufacturing overhead cost per unit $2Required:1. Calculate the absorption costing net operating income for last year.2. Calculate the absorption costing net operating income for this year.Solution:5.10 Data concerning Emma Corporation's single product appear below:Per Unit Percent of SalesSelling price $130 100%Variable expenses $26 20%Contribution margin $104 80%Fixed expenses are $650,000 per month. The company is currently selling 8,000 units per month.Required:The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $79,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. Calculate the overall effect on the company's monthly net operating income of this change.Solution:5.11 The following monthly budgeted data are available for the International company:Product A Product B Product CSelling price $500,000 $300,000 $900,000 Variable expenses $300,000 $210,000 $720,000 Contribution margin $200,000 $90,000 $180,000 Budgeted net operating income for the month is $220,000.Required:1. Calculate the break-even dollar sales for the month.2. Calculate the margin of safety.3. Calculate the operating leverage.Solution:1. Break-even salesDollar sales to break even = Fixed ExpensesCM Ratio = $250,000 0.28 =$892,857 Product A Product B Product C2. Margin of safety= Total sales - Break-even sales = $1,700,000 - $892,857 = $807,1433. Operating leverage = Contribution margin Net operating income = $470,000$220,000 = 2.145.12 Houn Corporation produces and sells a single product. Data concerning that product appear below:Selling price per unit $120.00Variable expense per unit $50.40Fixed expense per month $257,520Required:1. Assume the company's monthly target profit is $20,880. Calculate the unit sales to attain that target profit.2. Assume the company's monthly target profit is $6,960. Calculate the dollar sales to attain that target profit.Solution:1. Unit sales to attain target profit = (Target profit + Fixed expenses)/Unit CM = ($257,520 + $20,880)/$69.60 = 4,0002. Dollar sales to attain target profit = (Target profit + Fixed expenses)/CM ratio = ($257,520 + $6,960)/0.58 = $456,000。
会计英语西南财经第二版课后题答案
会计英语西南财经第二版课后题答案1、There _______ some milk in the glass. [单选题] *A. is(正确答案)B. areC. haveD. has2、5 He wants to answer the ________ because it is an interesting one. [单选题] * A．problemB．question(正确答案)C．doorD．plan3、Don’t _______. He is OK. [单选题] *A. worry(正确答案)B. worried aboutC. worry aboutD. worried4、—Can you play tennis?—______. But I can play basketball.（）[单选题] *A. Yes, I canB. Yes, I doC. No. I can’t(正确答案)D. No, I don’t5、15．The restaurant ________ many complaints because of the terrible service since last month. [单选题] *A．receivesB．is receivingC．has received(正确答案)D．will receive6、—When are you going to Hainan Island for a holiday? —______ the morning of 1st May.（）[单选题] *A. InB. AtC. On(正确答案)D. For7、( ) --------Please take my seat here.-------- __________________________. [单选题]*A. That is nice of you(正确答案)B. I think it is my seatC. No, you sit hereD. I don’t think it’s a good seat.8、What’s your _______ for the coming new year? [单选题] *A. playB. plantC. plan(正确答案)D. plans9、He’s so careless that he always _______ his school things at home. [单选题] *A. forgetsB. leaves(正确答案)C. putsD. buys10、_____ before we leave the day after tomorrow,we should have a wonderful dinner party. [单选题] *A. Had they arrived(正确答案)B. Were they arriveC. Were they arrivingD. Would they arrive11、My dog is very _______. It is safe to touch it if you want to. [单选题] *A. luckyB. deliciousC. friendly(正确答案)D. helpful12、The scenery is so beautiful. Let’s _______. [单选题] *A. take photos(正确答案)B. take mapsC. take busD. take exams13、You should finish your homework as soon as possible. [单选题] *A. 赶快地B. 尽能力C. 一...就D. 尽快地(正确答案)14、We have made a _______ tour plan to Sydney. [单选题] *A. two dayB. two daysC. two-day(正确答案)D. two-days15、42．—________ meat do you want?—Half a kilo. [单选题] *A．How much(正确答案)B．How manyC．WhatD．Which16、Is there ____ for one more in the car? [单选题] *A. seatB. situationC. positionD. room(正确答案)17、You should stick to your（）and tell him you won' t do the thing. [单选题] *A. principle(正确答案)B. qualityC. contactD. influence18、With all the work on hand, he _____ to the cinema last night. [单选题] *A.should goB.must have goneC.might goD..shouldn’t have gone(正确答案)19、_______ is on September the tenth. [单选题] *A. Children’s DayB. Teachers’Day(正确答案)C. Women’s DayD. Mother’s Day20、This seat is vacant and you can take it. [单选题] *A. 干净的B. 没人的(正确答案)C. 舒适的D. 前排的21、77．You can watch TV when you finish________ your homework. [单选题] *A．to doB．doC．to doingD．doing(正确答案)22、Lily is a very_____person and never wastes anything. [单选题] *A.generousB.economical(正确答案)C.economicD.efficient23、We are looking forward to _______ you again. [单选题] *A. seeB. sawC. seeing(正确答案)D. seen24、—Why is Mary asking Bob about the school trip? —Because she wants to know ______.（）[单选题] *A. how does he think of the tripB. what does he think of the tripC. what he likes the tripD. how he likes the trip(正确答案)25、---Where’s that report?---I brought it to you ____you were in Mr. Black’s office yesterday. [单选题] *A. ifB. when(正确答案)C. becauseD. before26、I have only two tickets for TF Boys’concert. ______ you ______ he can go with me.（）[单选题] *A. Either; or(正确答案)B. Either; norC. Both; andD. Not only; but also27、I have to _______ my glasses, without which I can’t read the book. [单选题] *A. put upB. put awayC. put downD. put on(正确答案)28、If people _____ overanxious about remembering something, they will forget it. [单选题] *A. will beB. would beC. wereD. are(正确答案)29、I was astonished when I heard that Louise was getting married. [单选题] *A. 惊讶(正确答案)B. 气愤C. 高兴D. 想念30、( ) They have_____ useful dictionary. They want to lend it___ us. [单选题] *A. an; forB. a; fromC. an; toD. a; to(正确答案)。
会计英语袁蓉丽课后题
会计英语袁蓉丽课后题一、听力理解(共15小题，15分)第一节听下面5段对话。
每段对话后有1小题，从题中所给的A、B、C三个选项中选出最佳选项，并标在试卷的相应位置。
听完每段对话后，你都有10秒钟的时间来回答有关小题和阅读下一小题。
每段对话仅读一遍。
听力原文Text 1M：A table for four，please.W：It will be about twenty minutes.Won’t you sit down?Text 2W：That looks nice.I’ll have a cheeseburger and fries.M：Anything to drink?w：A chocolate milkshake.M：That’ll be $2.75.Text 3M：Would you mind turning down the TV a bit? I’m answering the phone.W：Not at all.Text 4M：I don’t often visit museums，but I like to whenever possible.W：I’ve never visited the Modern Museum，but I plan to tomorrow.Text 5M：I met Sam on the street today.W：Really? Did he say anything about his sister?M：Yes.She ought to be leaving New York verysoon，because her husband has taken a job in Los Angeles.第二节：听到下面4段对话或对白。
每段对话或对白后存有几个大题，从题中Rewa的A、B、C三个选项中挑选出最佳选项，并标在试卷的适当边线。
听到每段对话或对白前，你将存有时间写作各小题，每小题5秒中;看完后，每小题将命同5秒钟的答题时间。
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Unlimited liability is an advantage of a sole proprietorship. ×A sole proprietorship is a business owned by one or more persons. ×As a general rule, revenues should not be recognized in the accounting records until it is received in cash. ×In the partnership form of business, the owners are called stockholders. ×The area of accounting aimed at serving the decision making needs of internal users is:A Financial accounting.B Managerial accounting.C External auditing.D SEC reporting.E Bookkeeping.The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:A Business entity assumption.B Monetary unit assumption.C Going-concern assumption.D Time-period assumption.E ObjectivityExternal users of accounting information include all of the following except:A Shareholders.B Customers.C Purchasing managers.D Government regulators.E Creditors.The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:A Time-period assumption.B Business entity assumption.C Going-concern assumption.D Revenue recognition principle.E Cost principle.If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:A $95,000.B $137,000.C $138,500.D $140,000.E $150,000.The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?A Monetary unit assumption.B Going-concern assumption.C Cost principle.D Business entity assumption.E Revenue recognition principle.If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:A Decreased $105,000.B Decreased $45,000.C Increased $30,000.D Increased $45,000.E Increased $105,000.If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:A Increased $22,000.B Decreased $22,000.C Increased $89,000.D Decreased $156,000.E Increased $156,000. If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?A Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.B Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.C Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.D There would be no effect on the accounts because the accounts are affected by the same amount.E None of these.How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?A +$10,000 accounts receivable, -$10,000 accounts payable.B +$10,000 accounts receivable, +$10,000 accounts payable.C +$10,000 accounts receivable, +$10,000 cash.D +$10,000 accounts receivable, +$10,000 revenue.E +$10,000 accounts receivable, -$10,000 revenueAssets created by selling goods and services on credit are:A Accounts payable.B Accounts receivable.C Liabilities.D Expenses.E Equity.On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of June 30 of the current year?A $8,300B $13,050C $20,500D $31,100E $40,400The excess of expenses over revenues for a period is:A Net assets.B Equity.C Net loss.D Net income.E A liability.The accounting equation implies that: Assets + Liabilities = Equity. ×owner's equity are the owner's claim on assets. √Increases in liability accounts are recorded as debits. ×Crediting an expense account decreases it. √If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance. √The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable. √If a company provides services to a customer on credit the selling company should credit Accounts Receivable. ×A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):A Journal.B Posting.C Trial balance.D Account.E Chart of accounts.Which of the following statements is correct?A When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.B Promises of future payment by the buyer are called accounts receivable.C Increases and decreases in cash are always recorded in the owner's capital account.D An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.E Accrued liabilities include accounts receivable.Prepaid expenses are:A Payments made for products and services that do not ever expire.B Classified as liabilities on the balance sheet.C Decreases in equity.D Assets that represent prepayments of future expenses.E Promises of payments by customers.A debit:A Always increases an account.B Is the right-hand side of a T-account.C Always decreases an account.D Is the left-hand side of a T-account.E Is not need to record a transaction.Which of the following statements is incorrect?A The normal balance of accounts receivable is a debit.B The normal balance of owner's withdrawals is a debit.C The normal balance of unearned revenues is a credit.D The normal balance of an expense account is a credit.E The normal balance of the owner's capital account is a credit.The first step in the processing of a transaction is to analyze the transaction and source documents. √Preparation of a trial balance is the first step in the analyzing and recording process. ×Source documents provide evidence of business transactions and are the basis for accounting entries. √A revenue account normally has a debit balance. ×Accounts are normally decreased by debits. ×All of the following statements regarding a sales invoice are true except:A A sales invoice is a type of source document.B A sales invoice is used by sellers to record the sale.C A sales invoice is used by buyers to record purchases.D A sales invoice gives rise to an entry in the accounting process.E A sales invoice does not provide objective evidence about a transaction.The accounting process begins with:A Analysis of business transactions and source documents.B Preparing financial statements and other reports.C Summarizing the recorded effect of business transactions.D Presentation of financial information to decision-makers.E Preparation of the trial balance.Source documents include all of the following except:A Sales tickets.B Ledgers.C Checks.D Purchase orders.A ledger is:A A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.B A journal in which transactions are first recorded.C A collection of documents that describe transactions and events entering the accounting process.D A list of all accounts with their debit balances at a point in time.E A record containing all accounts and their balances used by a company.Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?A Debit Assets $200,000; credit Haddon, Capital, $200,000.B Debit Cash and Land, $200,000; credit Haddon, Capital, $200,000.C Debit Cash $70,000; debit Land $130,000; credit Haddon, Capital, $200,000.D Debit Haddon, Capital, $200,000; credit Cash $70,000, credit Land, $130,000.On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:A Debit Prepaid Insurance, $1,800; credit Cash, $1,800.B Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.C Debit Prepaid Insurance, $360; credit Insurance Expense, $360.D Debit Insurance Expense, $360; credit Prepaid Insurance, $360.E Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?A $75.B $125.C $175.D $250On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31?A $1,350.00.B $450.00.C $1,012.50.D $337.50.If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:A Debit Cash and credit Legal Fees Earned.B Debit Cash and credit Unearned Legal Fees.C Debit Unearned Legal Fees and credit Legal Fees Earned.D Debit Legal Fees Earned and credit Unearned Legal Fees.E Debit Unearned Legal Fees and credit Accounts Receivable.The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:A Accumulated depreciation.B A contra account.C The matching principle.D Depreciation expense.An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):A Accrued expense.B Contra account.C Accrued revenue.D Intangible asset.On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include:A A debit to an expense for $5,625.B A debit to a prepaid expense for $5,625.C A debit to an expense for $1,875.D A debit to a prepaid expense for $1,875.On June 30 Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30 Apricot should record:A A credit to an expense for $7,500.B A debit to an expense for $7,500.C A debit to a prepaid expense for $7,500.D A credit to a prepaid expense for $7,500. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:A An overstatement of net income.B An overstatement of assets.C An overstatement of liabilities.D An overstatement of equity.An adjusting entry could be made for each of the following except:A Prepaid expenses.B Depreciation.C Owner withdrawals.D Unearned revenues.Revenues are:A The same as net income.B The excess of expenses over assets.C Resources owned or controlled by a companyD The increase in equity from a company’s earning activities.E The costs of assets or services used.Another name for equity is:A Net income.B Expenses.C Net assets.D Revenue.E Net loss.A payment to an owner is called a(n):A Liability.B Withdrawal.C Expense.D Contribution.E Investmen The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?A 900,000.B $700,000.C $500,000.D 200,000.E It is impossible to determine unless the amount of this owners' investment is known. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?A Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?A Assets increase by $75,000 and expenses increase by $75,000.B Assets increase by $75,000 and expenses decrease by $75,000.C Liabilities increase by $75,000 and expenses decrease by $75,000.D Assets decrease by $75,000 and expenses decrease by $75,000.E Assets increase by $75,000 and liabilities increase by $75,000.Every business transaction leaves the accounting equation in balance. √Owner's investments are increases in equity from a company's earnings activities. ×Owner’s withdrawals are expenses. ×Net income occurs when revenues exceed expenses. √In a double-entry accounting system, the total amount debited must always equal the total amount credited. √Increases in liability accounts are recorded as credits. √Asset accounts normally have credit balances and revenue accounts normally have debit balances. ×If a company purchases land paying cash, the journal entry to record this transaction will include a debit to Cash. ×If a company provides services to a customer on credit the selling company should debit cash. ×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. ×A formal promise to pay (in the form of a promissory note) a future amount is a(n):A Unearned revenue.B Prepaid expense.C Credit account.D Note payable.A credit is used to record:A An increase in an expense account.B A decrease in an asset account.C A decrease in an unearned revenue account.D A decrease in a revenue account.Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include aA Debit to Telephone Expense for $300.B Credit to Accounts Payable for $300.C Debit to Cash for $300.D Credit to Telephone Expense for $300. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a:A Debit to Unearned Management Fees for $60,000.B Credit to Management Fees Earned for $60,000.C Credit to Cash for $60,000.D Credit to Unearned Management Fees for $60,000。