NOTE 5 Financial Accounting of Sole Trader Financial account 财务会计教学课件

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acceptance 承兑account 账户accountant 会计员accounting 会计accounting system 会计制度accounts payable 应付账款accounts receivable 应收账款accumulated profits 累积利益adjusting entry 调整记录adjustment 调整administration expense 管理费用advances 预付advertising expense 广告费agency 代理agent 代理人agreement 契约allotments 分配数allowance 津贴amalgamation 合并amortization 摊销amortized cost 应摊成本annuities 年金applied cost 已分配成本applied expense 已分配费用applied manufacturing expense 己分配制造费用apportioned charge 摊派费用appreciation 涨价article of association 公司章程assessment 课税assets 资产attorney fee 律师费audit 审计auditor 审计员average 平均数average cost 平均成本bad debt 坏账balance 余额balance sheet 资产负债表bank account 银行账户bank balance 银行结存bank charge 银行手续费bank deposit 银行存款bank discount 银行贴现bank draft 银行汇票bank loan 银行借款bank overdraft 银行透支bankers acceptance 银行承兑bankruptcy 破产bearer 持票人beneficiary 受益人bequest 遗产bill 票据bill of exchange 汇票bill of lading 提单bills discounted 贴现票据bills payable 应付票据bills receivable 应收票据board of directors 董事会bonds 债券bonus 红利book value 账面价值bookkeeper 簿记员bookkeeping 簿记branch office general ledger 支店往来账户broker 经纪人brought down 接前brought forward 接上页budget 预算by-product 副产品by—product sales 副产品销售capital 股本capital income 资本收益capital outlay 资本支出capital stock 股本capital stock certificate 股票carried down 移后carried forward 移下页cash 现金cash account 现金账户cash in bank 存银行现金cash on delivery 交货收款cash on hand 库存现金cash payment 现金支付cash purchase 现购cash sale 现沽cashier 出纳员cashiers check 本票certificate of deposit 存款单折certificate of indebtedness 借据certified check 保付支票certified public accountant 会计师charges 费用charge for remittances 汇水手续费charter 营业执照chartered accountant 会计师chattles 动产check 支票checkbook stub 支票存根closed account 己结清账户closing 结算closing entries 结账纪录closing stock 期末存货closing the book 结账columnar journal 多栏日记账combination 联合commission 佣金commodity 商品common stock 普通股company 公司compensation 赔偿compound interest 复利consignee 承销人consignment 寄销consignor 寄销人consolidated balance sheet 合并资产负债表consolidated profit and loss account 合并损益表consolidation 合并construction cost 营建成本construction revenue 营建收入contract 合同control account 统制账户copyright 版权corporation 公司cost 成本cost accounting 成本会计cost of labour 劳工成本cost of production 生产成本cost of manufacture 制造成本cost of sales 销货成本cost price 成本价格credit 贷方credit note 收款通知单creditor 债权人crossed check 横线支票current account 往来活期账户current asset 流动资产current liability 流动负债current profit and loss 本期损益debit 借方debt 债务debtor 债务人deed 契据deferred assets 递延资产deferred liabilities 递延负债delivery 交货delivery expense 送货费delivery order 出货单demand draft 即期汇票demand note 即期票据demurrage charge 延期费deposit 存款deposit slip 存款单depreciation 折旧direct cost 直接成本direct labour 直接人工director 董事discount 折扣discount on purchase 进货折扣discount on sale 销货折扣dishonoured check 退票dissolution 解散dividend 股利dividend payable 应付股利documentary bill 押汇汇票documents 单据double entry bookkeeping 复式簿记draft 汇票drawee 付款人drawer 出票人drawing 提款duplicate 副本duties and taxes 税捐earnings 业务收益endorser 背书人entertainment 交际费enterprise 企业equipment 设备estate 财产estimated cost 估计成本estimates 概算exchange 兑换exchange loss 兑换损失expenditure 经费expense 费用extension 延期face value 票面价值factor 代理商fair value 公平价值financial statement 财务报表financial year 财政年度finished goods 制成品finished parts 制成零件fixed asset 固定资产fixed cost 固定成本fixed deposit 定期存款fixed expense 固定费用foreman 工头franchise 专营权freight 运费funds 资金furniture and fixture 家俬及器具gain 利益general expense 总务费用general ledger 总分类账goods 货物goods in transit 在运货物goodwill 商誉government bonds 政府债券gross profit 毛利guarantee 保证guarantor 保证人idle time 停工时间import duty 进口税income 收入income tax 所得税income from joint venture 合营收益income from sale of assets 出售资产收入indirect cost 间接成本indirect expense 间接费用indirect labour 间接人工indorsement 背书installment 分期付款insurance 保险intangible asset 无形资产interest 利息interest rate 利率interest received 利息收入inter office account 内部往来intrinsic value 内在价值inventory 存货investment 投资investment income 投资收益invoice 发票item 项目job 工作job cost 工程成本joint venture 短期合伙journal 日记账labour 人工labour cost 人工成本land 土地lease 租约leasehold 租约ledger 分类账legal expense 律师费letter of credit 信用状liability 负债limited company 有限公司limited liability 有限负债limited partnership 有限合夥liquidation 清盘loan 借款long term liability 长期负债loss 损失loss on exchange 兑换损失machinery equipment 机器设备manufacturing expense 制造费用manufacturing cost 制造成本market price 市价materials 原村料material requisition 领料单medical fee 医药费merchandise 商品miscellaneous expense 杂项费用mortgage 抵押mortgagor 抵押人mortgagee 承押人movable property 动产net amount 净额net asset 资产净额net income 净收入net loss 净亏损net profit 纯利net value 净值notes 票据notes payable 应付票据notes receivable 应收票据opening stock 期初存货operating expense 营业费用order 订单organization expense 开办费original document 原始单据outlay 支出output 产量overdraft 透支opening stock 期初存货operating expense 营业费用order 订单organization expense 开办费original document 原始单据outlay 支出output 产量overdraft 透支quotation 报价rate 比率raw material 原料rebate 回扣receipt 收据receivable 应收款recoup 补偿redemption 偿还refund 退款remittance 汇款rent 租金repair 修理费reserve 准备residual value 剩余价值retailer 零售商returns 退货revenue 收入salary 薪金sales 销货sale return 销货退回sale discount 销货折扣salvage 残值sample fee 样品scrap 废料scrap value 残余价值securities 证券security 抵押品selling commission 销货佣金selling expense 销货费用selling price 售价share capital 股份share certificate 股票shareholder 股东short term loan 短期借款sole proprietorship 独资spare parts 配件standard cost 标准成本stock 存货stocktake 盘点stock sheet 存货表subsidies 补助金sundry expense 杂项费用supporting document 附表surplus 盈余suspense account 暂记账户taxable profit 可徵税利润tax 税捐temporary payment 暂付款temporary receipt 暂收款time deposit 定期存款total 合计total cost 总成本trade creditor 进货客户trade debtor 销货客户trademark 商标transaction 交易transfer 转账transfer voucher 转账传票transportation 运输费travelling 差旅费trial balance 试算表trust 信托turnover 营业额unappropriated surplus 未分配盈余unit cost 单位成本unlimited company 无限公司unlimited liability 无限责任unpaid dividend 未付股利valuation 估价value 价值vendor 卖主voucher 传票wage rate 工资率wage 工资wage allocation sheet 工资分配表warehouse receipt 仓库收据welfare expense 褔利费wear and tear 秏损work order 工作通知单year end 年结Account 帐户Accounting system 会计系统American Accounting Association 美国会计协会American Institute of CPAs 美国注册会计师协会Audit 审计Balance sheet 资产负债表Bookkeepking 簿记Cash flow prospects 现金流量预测Certificate in Internal Auditing 内部审计证书Certificate in Management Accounting 管理会计证书Certificate Public Accountant注册会计师Cost accounting 成本会计External users 外部使用者Financial accounting 财务会计Financial Accounting Standards Board 财务会计准则委员会Financial forecast 财务预测Generally accepted accounting principles 公认会计原则General—purpose information 通用目的信息Government Accounting Office 政府会计办公室Income statement 损益表Institute of Internal Auditors 内部审计师协会Institute of Management Accountants 管理会计师协会Integrity 整合性Internal auditing 内部审计Internal control structure 内部控制结构Internal Revenue Service 国内收入署Internal users 内部使用者Management accounting 管理会计Return of investment 投资回报Return on investment 投资报酬Securities and Exchange Commission 证券交易委员会Statement of cash flow 现金流量表Statement of financial position 财务状况表Tax accounting 税务会计Accounting equation 会计等式Articulation 勾稽关系Assets 资产Business entity 企业个体Capital stock 股本Corporation 公司Cost principle 成本原则Creditor 债权人Deflation 通货紧缩Disclosure 批露Expenses 费用Financial statement 财务报表Financial activities 筹资活动Going-concern assumption 持续经营假设Inflation 通货膨涨Investing activities 投资活动Liabilities 负债Negative cash flow 负现金流量Operating activities 经营活动Owner’s equity 所有者权益Partnership 合伙企业Positive cash flow 正现金流量Retained earning 留存利润Revenue 收入Sole proprietorship 独资企业Solvency 清偿能力Stable-dollar assumption 稳定货币假设Stockholders 股东Stockholders’ equity 股东权益Window dressing 门面粉饰。

财务管理专业英语business企业商业业务financialrisk财务风险sole

财务管理专业英语business 企业商业业务financial risk 财务风险sole proprietorship 私人业主制企业partnership 合伙制企业limited partner 有限责任合伙人general partner 一般合伙人separation of ownership and control 所有权与经营权分离claim 要求主张要求权management buyout 管理层收购tender offer 要约收购financial standards 财务准则initial public offering 首次公开发行股票private corporation 私募公司未上市公司closely held corporation 控股公司board of directors 董事会executove director 执行董事non- executove director 非执行董事chairperson 主席controller 主计长treasurer 司库revenue 收入profit 利润earnings per share 每股盈余return 回报market share 市场份额social good 社会福利financial distress 财务困境stakeholder theory 利益相关者理论value (wealth) maximization 价值（财富）最大化common stockholder 普通股股东preferred stockholder 优先股股东debt holder 债权人well-being 福利diversity 多样化going concern 持续的agency problem 代理问题free-riding problem 搭便车问题information asymmetry 信息不对称retail investor 散户投资者institutional investor 机构投资者agency relationship 代理关系net present value 净现值creative accounting 创造性会计stock option 股票期权agency cost 代理成本bonding cost 契约成本monitoring costs 监督成本takeover 接管corporate annual reports 公司年报balance sheet 资产负债表income statement 利润表statement of cash flows 现金流量表statement of retained earnings 留存收益表fair market value 公允市场价值marketable securities 油价证券check 支票money order 拨款但、汇款单withdrawal 提款accounts receivable 应收账款credit sale 赊销inventory 存货property,plant,and equipment 土地、厂房与设备depreciation 折旧accumulated depreciation 累计折旧liability 负债current liability 流动负债long-term liability 长期负债accounts payout 应付账款note payout 应付票据accrued espense 应计费用deferred tax 递延税款preferred stock 优先股common stock 普通股book value 账面价值capital surplus 资本盈余accumulated retained earnings 累计留存收益hybrid 混合金融工具treasury stock 库藏股historic cost 历史成本current market value 现行市场价值real estate 房地产outstanding 发行在外的a profit and loss statement 损益表net income 净利润operating income 经营收益earnings per share 每股收益simple capital structure 简单资本结构dilutive 冲减每股收益的basic earnings per share 基本每股收益complex capital structures 复杂的每股收益diluted earnings per share 稀释的每股收益convertible securities 可转换证券warrant 认股权证accrual accounting 应计制会计amortization 摊销accelerated methods 加速折旧法straight-line depreciation 直线折旧法statement of changes in shareholders’equity 股东权益变动表source of cash 现金来源use of cash 现金运用operating cash flows 经营现金流cash flow from operations 经营活动现金流direct method 直接法indirect method 间接法bottom-up approach 倒推法investing cash flows 投资现金流cash flow from investing 投资活动现金流joint venture 合资企业affiliate 分支机构financing cash flows 筹资现金流cash flows from financing 筹资活动现金流time value of money 货币时间价值simple interest 单利debt instrument 债务工具annuity 年金future value 终至present value 现值compound interest 复利compounding 复利计算pricipal 本金mortgage 抵押credit card 信用卡terminal value 终值discounting 折现计算discount rate 折现率opportunity cost 机会成本required rate of return 要求的报酬率cost of capital 资本成本ordinary annuity普通年金annuity due 先付年金financial ratio 财务比率 deferred annuity 递延年金restrictive covenants 限制性条款 perpetuity 永续年金bond indenture 债券契约 face value 面值financial analyst 财务分析师 coupon rate 息票利率liquidity ratio 流动性比率 nominal interest rate 名义利率current ratio 流动比率 effective interest rate 有效利率window dressing 账面粉饰 going-concern value 持续经营价值marketable securities 短期证券 liquidation value 清算价值quick ratio 速动比率 book value 账面价值cash ratio 现金比率 marker value 市场价值debt management ratios 债务管理比率 intrinsic value 内在价值debt ratio 债务比率 mispricing 给……错定价格debt-to-equity ratio 债务与权益比率 valuation approach 估价方法equity multiplier 权益乘 discounted cash flow valuation 折现现金流量模型long-term ratio 长期比率 undervaluation 低估debt-to-total-capital 债务与全部资本比率 overvaluation 高估leverage ratios 杠杆比率 option-pricing model 期权定价模型interest coverage ratio 利息保障比率 contingent claim valuation 或有要求权估价earnings before interest and taxes 息税前利润 promissory note 本票cash flow coverage ratio 现金流量保障比率 contractual provision 契约条款asset management ratios 资产管理比率 par value 票面价值accounts receivable turnover ratio 应收账款周转率 maturity value 到期价值inventory turnover ratio 存货周转率 coupon 息票利息inventory processing period 存货周转期 coupon payment 息票利息支付accounts payable turnover ratio 应付账款周转率coupon interest rate 息票利率cash conversion cycle 现金周转期 maturity 到期日asset turnover ratio 资产周转率 term to maturity 到期时间profitability ratio 盈利比率 call provision赎回条款gross profit margin 毛利润 call price 赎回价格operating profit margin 经营利润 sinking fund provision 偿债基金条款net profit margin 净利润 conversion right 转换权return on asset 资产收益率 put provision 卖出条款return on total equity ratio 全部权益报酬率 indenture 债务契约return on common equity 普通权益报酬率 covenant 条款market-to-book value ratio 市场价值与账面价值比率 trustee 托管人market value ratios 市场价值比率 protective covenant 保护性条款dividend yield 股利收益率 negative covenant 消极条款dividend payout 股利支付率 positive covenant 积极条款financial statement财务报表 secured deht担保借款profitability 盈利能力 unsecured deht信用借款viability 生存能力 creditworthiness 信誉solvency 偿付能力 collateral 抵押品collateral trust bonds 抵押信托契约 debenture 信用债券bond rating 债券评级current yield 现行收益yield to maturity 到期收益率default risk 违约风险interest rate risk 利息率风险authorized shares 授权股outstanding shares 发行股treasury share 库藏股repurchase 回购right to proxy 代理权right to vote 投票权independent auditor 独立审计师straight or majority voting 多数投票制cumulative voting 积累投票制liquidation 清算right to transfer ownership 所有权转移权preemptive right 优先认股权dividend discount model 股利折现模型capital asset pricing model 资本资产定价模型constant growth model 固定增长率模型growth perpetuity 增长年金mortgage bonds 抵押债券。

principles of financial accounting CH3 答案

Principles of FinancialAccounting 2e (AGE)John J WildWinston KwokKen W ShawBarbara ChiappettaSolutions ManualProprietary and ConfidentialThis Manual is the property of McGraw-Hill Education (Asia) and protected by copyright laws. This Manual is provided only to authorized professors and instructors for use in preparing for the classes using the affiliated textbook. No other use or distribution of this Manual is permitted. This Manual may not be sold or distributed to or used by any student or other third party. No part of this Manual may be reproduced, displayed or distributed in any form or by any means, electronic or otherwise, without the prior written permission of McGraw-Hill Education (Asia).Chapter 3Adjusting Accounts and Preparing Financial StatementsDISCUSSION QUESTIONS1. The cash basis of accounting reports revenues when cash is received while theaccrual basis reports revenues when they are earned. The cash basis reports expenses when cash is paid while the accrual basis reports expenses when they are incurred and matched with revenues they generated.2. The accrual basis of accounting generally provides a better indication of companyperformance and financial condition than does the cash basis. Also, the accrual basis increases the comparability of financial statements from one period to the next. Thus, business decision makers generally prefer the accrual basis.3. Businesses that have major seasonal variations in sales are most likely to select thenatural business year as the fiscal year.4. A prepaid expense is an item paid for in advance of receiving its benefits. As such, itis reported as an asset on the statement of financial position.5. Long-term tangible property, plant and equipment such as equipment, buildings, andmachinery lead to adjustments for depreciation. Generally, land is the only long-term tangible plant asset that does not require depreciation.6. The Accumulated Depreciation contra asset account is used for depreciation. Itprovides financial statement users with additional information about the relative age of the assets. Without the contra account information, the reader would not be able to tell whether the assets are new or in need of replacement.7. Deferred Income is another term for Unearned or Deferred revenue, which refers tocash received in advance of providing products and services.8. Accrued revenue is revenue that is earned but is not yet received in cash (and/orother assets) and the customer has not been billed prior to the end of the period.Therefore, end-of-period adjustments are made to record accrued revenue.Examples are interest income that has been earned but not collected and revenues from services performed that are neither collected nor billed.9.A If prepaid expenses are initially recorded with debits to expense accounts, then theprepaid expenses asset accounts are debited in the adjusting entries.10. For Adidas, all of the accounts under the category of Property, plant and equipment,require adjusting entries. The expense related to the depreciation expense account would be understated on the consolidated income statement if Adidas fails to adjust these asset accounts. If the adjusting entries are not made, net profit would be overstated. Note: Students might also correctly identify accounts receivables (for allowance for doubtful accounts), inventories (for lower of cost and net realizable value), as well as amortization of finite-life intangible assets as needing adjustment.11. ‘Advance received’ would probably be another term for unearned revenues which iscash received in advance of providing products and services. Accrued expenses refer to costs that are incurred in a period but are both unpaid and unrecorded12. The accrued wages expense would probably be reported as part of “Other currentliabilities” on Puma’s consolidated statement of financial position. The items reported on the statements of financial position of companies are often summarized amounts and details or breakdown can sometimes be found in the notes to the financial statements.13. The amount of Property, plant and equipment (PPE) for 2013 is RMB 974.627 million.For its adjusting entry, 361 Degrees would need to record Depreciation Expense (debit) on the PPE and Accumulated Depreciation (credit) as the contra to the PPE account. Separate accounts must be set up for different items of PPE since each item would have different useful life and residual value.QUICK STUDIESQuick Study 3-1 (10 minutes)a. UR Unearned revenueb. PE Prepaid expenses (Depreciation)c. AE Accrued expensesd. AR Accrued revenuee. PE Prepaid expensesQuick Study 3-2 (10 minutes)a. Insurance Expense ....................................................... 1,800Prepaid Insurance ................................................. 1,800 To record 6-month insurance coverage expired.b. Supplies Expense ......................................................... 2,700Supplies .................................................................. 2,700 To record supplies used during the year.($1,000 + $3,000 – [?] = $1,300)Quick Study 3-3 (10 minutes)a. Depreciation Expense—Equipment ............................ 5,000Accumulated Depreciation—Equipment ............. 5,000 To record depreciation expense for the year.($30,000 - $5,000) / 5 years = $5,000b. No depreciation adjustments are made for land as it is expected to lastindefinitely.Quick Study 3-4 (15 minutes)a. Unearned Revenue ........................................................ 15,000Legal Revenue ....................................................... 15,000 To recognize legal revenue earned (20,000 x 3/4).b. Unearned Subscription Revenue ................................ 2,400Subscription Revenue ........................................... 2,400 To recognize subscription revenue earned.[100 x ($48 / 12 month) x 6 months]Salaries Expense (400)Salaries Payable (400)To record salaries incurred but not yet paid.[One student earns, $100 x 4 days, M-R]Quick Study 3-6 (15 minutes)Accounts Debited and Credited Financial Statementa. Debit Unearned Revenue Statement of FinancialPositionCredit Revenue Earned Income Statementb. Debit Depreciation Expense Income StatementCredit Accumulated Depreciation Statement of FinancialPositionc. Debit Wages Expense Income StatementCredit Wages Payable Statement of FinancialPositiond. Debit Accounts Receivable Statement of FinancialPositionCredit Revenue Earned Income Statemente. Debit Insurance Expense Income StatementCredit Prepaid Insurance Statement of FinancialPositionCash Accounting:Revenues (cash receipts) ...................................................... $33,000 Expenses (cash payments: $22,500 - $2,250 + $3,750) ...... 24,000 Net profit ................................................................................ $ 9,000 Accrual Accounting:Revenues (earned) ................................................................ $39,000 Expenses (incurred) .............................................................. 22,500 Net profit ................................................................................. $16,500 Quick Study 3-8 (10 minutes)The answer is c.Explanation:The debit balance in Prepaid Insurance was reduced by $400, implying a $400 debit to Insurance Expense. The credit balance in Interest Payable increased by $800, which implies an $800 debit to Interest Expense.The answer is 2.Explanation:Insurance premium error:Understates expenses (and overstates assets) by .......... $1,600 Accrued salaries error:Understates expenses (and understates liabilities) by .... 1,000 Combination of errors:Understates expenses by ....................................................$2,600Overstates assets by ............................................................$1,600Understates liabilities by .....................................................$1,000Quick Study 3-10 (15 minutes)Adjusting entry Debit Credit1. Accrue salaries expense b d2. Adjust the Unearned Services Revenue accountg cto recognize earned revenueh c3. Record the earning of services revenue for whichcash will be received the following periodQuick Study 3-11 (10 minutes)Profit margin = $37,925 / $390,000 = 9.7%Interpretation: For each one dollar that Yang Company records as revenue, it earns 9.7 cents in net profit. Yang’s 9.7% is markedly lower than the competitors’ average profit margin of 15%. Thus, it must improve performance.Quick Study 3-12A (5 minutes)The answer is d.EXERCISESExercise 3-1 (10 minutes)1. B 4. F2. E 5. D3. C 6. AExercise 3-2 (30 minutes)a. Unearned Fee Revenue ...................................................10,000Fee Revenue .................................................................10,000 To record earned portion of fee received in advance.b. Wages Expense ................................................................9,000Wages Payable .............................................................9,000 To record wages accrued but not yet paid.c. Depreciation Expense—Equipment ...............................19,127Accumulated Depreciation—Equipment....................19,127 To record depreciation expense for the year.d. Office Supplies Expense .................................................5,242Office Supplies*............................................................5,242 To record office supplies used ($480 + $5,349 - $587).e. Insurance Expense ..........................................................2,800Prepaid Insurance**......................................................2,800 To record insurance coverage expired ($5,000 - $2,200).f. Interest Receivable (750)Interest Revenue (750)To record interest earned but not yet received.g. Interest Expense ............................................................3,500Interest Payable..........................................................3,500 To record interest incurred but not yet paid.Notes:Office Supplies*Prepaid Insurance** Beg. Bal. 480 Beg. Bal. 5,000Purch. 5,349? Used ? Used End. Bal. 587 End. Bal. 2,200Exercise 3-3 (25 minutes)a. Depreciation Expense—Equipment ...............................16,000Accumulated Depreciation—Equipment....................16,000 To record depreciation expense for the year.b. Insurance Expense ..........................................................5,960Prepaid Insurance*.......................................................5,960 To record insurance coverage that expired($7,000 - $1,040).c. Office Supplies Expense .................................................2,626Office Supplies**...........................................................2,626 To record office supplies used ($300 + $2,680 - $354).d. Unearned Fee Revenue ...................................................5,000Fee Revenue .................................................................5,000 To record earned portion of fee received in advance($10,000 x 1/2).e. Insurance Expense ..........................................................4,600Prepaid Insurance ........................................................4,600 To record insurance coverage that expired.f. Wages Expense ................................................................4,000Wages Payable .............................................................4,000 To record wages accrued but not yet paid.Notes:Prepaid Insurance*Office Supplies** Bal. Bal. 7,000 Beg. Bal. 300Purch. 2,680? Used ? Used End. Bal. 1,040 End. Bal. 354a.Apr. 30 Legal Fees Expense ........................................... 2,500Legal Fees Payable ..................................... 2,500 To record accrued legal fees.May 12 Legal Fees Payable ............................................ 2,500Cash ............................................................. 2,500 To pay accrued legal fees.b.Apr. 30 Interest Expense ................................................ 2,080Interest Payable .......................................... 2,080 To record accrued interest expense (9.6% x$780,000 x 10/360) or ($6,240 x 10/30).May 20 Interest Payable .................................................. 2,080Interest Expense ................................................. 4,160Cash ............................................................ 6,240 T o record payment of accrued and currentinterest expense (9.6% x $780,000 x 20/360).c.Apr. 30 Salaries Expense ................................................. 3,600Salaries Payable.......................................... 3,600 To record accrued salaries($9,000 x 2/5 week).May 3 Salaries Payable ................................................. 3,600Salaries Expense ................................................ 5,400Cash ............................................................. 9,000 To record payment of accrued andcurrent salaries ($9,000 x 3/5 week).a. $ 1,650b. $ 5,700c. $10,080d. $ 1,375Proof:Total supplies available ............................ 2,400 7,000 11,440 7,375 Supplies available – current year-end ..... (750) (5,700) (1,840) (800) Supplies expense for current year........... $1,650 $1,300 $ 9,600 $6,575Exercise 3-6 (15 minutes)a. Adjusting entry:2015Dec. 31 Wages Expense (500)Wages Payable (500)To record accrued wages for one day.(5 workers x $100 x 1 day)b. Payday entry:2016Jan. 4 Wages Expense................................................... 1,500Wages Payable (500)Cash .............................................................2,000 To record accrued and current wages.Dec. 31 Accounts Receivable .............................................. 1,800Fees Earned ..................................................... 1,800 To record earned but unbilled fees(30% x $6,000).31 Unearned Fees ......................................................... 4,200Fees Earned ..................................................... 4,200 To record earned fees collected inadvance (70% x $6,000).31 Depreciation Expense—Computers ...................... 1,500Accumulated Depreciation—Computers ...... 1,500 To record depreciation on computers.31 Depreciation Expense—Office Furniture .............. 1,750A ccumulated Depreciation—Office Furniture ... 1,750To record depreciation on office furniture.31 Salaries Expense ..................................................... 2,450Salaries Payable.............................................. 2,450 To record accrued salaries.31 Insurance Expense .................................................. 1,300Prepaid Insurance ........................................... 1,300 To record expired prepaid insurance.31 Office Supplies Expense (480)Office Supplies (480)To record use of office supplies.31 Utilities Expense (70)Utilities Payable (70)To record incurred and unpaid utility costs.Exercise 3-8 (20 minutes)Statement of Financial PositionInsurance Asset usingInsurance Expense usingAccrual Basis*CashBasisAccrualBasis**CashBasisDec. 31, 2013 ...$11,700 $0 2013 ............$ 4,500 $16,200 Dec. 31, 2014 ...6,300 0 2014 ............5,400 0 Dec. 31, 2015 ...900 0 2015 ............ 5,400 0 Dec. 31, 2016 ...0 0 2016 ............ 900 0Total ...........$16,200 $16,200EXPLANATIONS:*Accrual asset balance equals months left in the policy x $450 per month (monthly cost is computed as $450, from $16,200 divided by 36 months).Months Left Balance12/31/2013 .... 26 $11,70012/31/2014 .... 14 6,30012/31/2015 .... 2 90012/31/2016 .... 0 0**Accrual insurance expense equals months covered in the year x $450 per month.Months Covered Expense2013 .............10 $ 4,5002014 .............12 5,4002015 .............12 5,4002016 ............. 2 900$16,200Exercise 3-9 (10 minutes)a. $5,390 / $44,830 = 12.0%b. $87,644 / $398,954 = 22.0%c. $93,385 / $257,082 = 36.3%d. $55,234 / $1,458,999 = 3.8%e. $70,158 / $435,925 = 16.1%Analysis and Interpretation: Company c has the highest profitability according to the profit margin ratio. Company c earns 36.3 cents in net profit for each one dollar of net sales recorded.Exercise 3-10A (25 minutes)a. Initial credit recorded in the Unearned Fees account:July 1 Cash ....................................................................... 2,000Unearned Fees .............................................. 2,000 Received fees for work to be done.6 Cash ....................................................................... 8,400Unearned Fees .............................................. 8,400 Received fees for work to be done.12 Unearned Fees ...................................................... 2,000Fees Earned ................................................... 2,000 Completed work for customer.18 Cash ....................................................................... 7,500Unearned Fees .............................................. 7,500 Received fees for work to be done.27 Unearned Fees ...................................................... 8,400Fees Earned ................................................... 8,400 Completed work for customer.31 No adjusting entries required.b. Initial credit recorded in the Fees Earned account:July 1 Cash ....................................................................... 2,000Fees Earned ................................................... 2,000 Received fees for work to be done.6 Cash ....................................................................... 8,400Fees Earned ................................................... 8,400 Received fees for work to be done.12 No entry required.18 Cash ....................................................................... 7,500Fees Earned ................................................... 7,500 Received fees for work to be done.27 No entry required.31 Fees Earned .......................................................... 7,500Unearned Fees .............................................. 7,500 Adjusted to reflect unearned fees for unfinished job.Exercise 3-10A - (Continued)c. Under the first method (and using entries from a):Unearned Fees = $2,000 + $8,400 - $2,000 + $7,500 - $8,400 = $7,500 Fees Earned = $2,000 + $8,400 = $10,400Under the second method (and using entries from b):Unearned Fees = $7,500Fees Earned = $2,000 + $8,400 + $7,500 - $7,500 = $10,400[Note: Both procedures yield identical results in the financial statements.] Exercise 3-11A (30 minutes)a.Dec. 1 Supplies Expense ............................................ 3,000Cash .......................................................... 3,000 Purchased supplies.b.Dec. 2 Insurance Expense .......................................... 1,440Cash .......................................................... 1,440 Paid insurance premiums.c.Dec. 15 Cash .................................................................. 12,000Remodeling Fees Earned ........................ 12,000 Received fees for work to be done.d.Dec. 28 Cash .................................................................. 3,600Remodeling Fees Earned ........................ 3,600 Received fees for work to be done.e.Dec. 31 Supplies ............................................................. 1,920Supplies Expense .................................... 1,920 Adjust expenses for unused supplies.f.Dec. 31 Prepaid Insurance ($1,440 - $240).................. 1,200Insurance Expense .................................. 1,200 Adjust expenses for unexpired coverage.g.Dec. 31 Remodeling Fees Earned .............................. 9,300Unearned Remodeling Fees ................... 9,300 Adjusted revenues for unfinishedprojects ($12,000 + $3,600 - $6,300).PROBLEM SET AProblem 3-1A (35 minutes)Part 1Adjustment (a)Dec. 31 Office Supplies Expense ............................. 12,760Office Supplies ...................................... 12,760 T o record cost of supplies used($3,000 + $12,400 - $2,640).Adjustment (b)31 Insurance Expense ....................................... 12,312Prepaid Insurance ................................. 12,312 To record annual insurance coverage expense.Policy Cost per Month Months Active in 2015 2015 CostA $660 ($15,840/24 mo.) 12 $ 7,920B 363 ($13,068/36 mo.) 9 3,267C 225 ($ 2,700 /12 mo.) 5 1,125Total $12,312Adjustment (c)31 Salaries Expense (2 days x $2,100) ............ 4,200Salaries Payable.................................... 4,200 To record accrued but unpaid wages.Adjustment (d)31 Depreciation Expense—Building ................ 27,000Accumulated Depreciation—Building 27,000 To record annual depreciation expense[($855,000 -$45,000) / 30 years = $27,000].Adjustment (e)31 Rent Receivable ............................................ 2,400Rent Earned ........................................... 2,400 To record earned but unpaid Dec. rent.Adjustment (f)31 Unearned Rent .............................................. 4,350Rent Earned ........................................... 4,350 To record the amount of rent earned forNovember and December (2 x 2,175).Part 2Cash Payment for (c)Jan. 6 Salaries Payable ........................................... 4,200Salaries Expense* ........................................ 6,300Cash ....................................................... 10,500 To record payment of accrued andcurrent salaries. *(3 days x $2,100)Cash Payment for (e)15Cash ............................................................... 2,400Rent Receivable .................................... 2,400 To record past due rent for December.Problem 3-2A (10 minutes)1. G 5. G 9. F2. E 6. C 10. D3. I 7. H 11. A4. B 8. E 12. DParts 1 and 2Part 2Adjustment (a)Dec. 31 Insurance Expense ...........................................3,000Prepaid Insurance .......................................3,000 To record the insurance expired.Adjustment (b)31 Teaching Supplies Expense ............................7,400Teaching Supplies ......................................7,400 To record supplies used ($10,000-$2,600).Adjustment (c)31 Depreciation Expense—Equipment ................12,000Accumulated Depreciation—Equipment ........12,000 To record equipment depreciation.Adjustment (d)31 Depreciation Expense—Profess. Library .......6,000A ccumul. Depreciation—Profess. Library.....6,000To record professional library depreciation.Adjustment (e)31 Unearned Training Fees ...................................4,400Training Fees Earned .................................4,400 To record training fees earned that werecollected in advance.Adjustment (f)31 Accounts Receivable ........................................7,500Tuition Fees Earned....................................7,500 To record tuition earned ($3,000 x 2 1/2 months).Adjustment (g)31 Salaries Expense (400)Salaries Payable (400)To record accrued salaries (2 days x $100 x 2).Adjustment (h)31 Rent Expense ....................................................2,000Prepaid Rent ................................................2,000 To record expiration of prepaid rent.Part 3Watson Technical InstituteAdjusted Trial BalanceDecember 31, 2015Debit Credit Cash .......................................................................... $ 26,000Accounts receivable ................................................ 7,500Teaching supplies ................................................... 2,600Prepaid insurance .................................................... 12,000Prepaid rent 0Professional library ................................................. 30,000 Accumulated depreciation—Professional library ... $ 15,000 Equipment ................................................................ 70,000 Accumulated depreciation—Equipment ................ 28,000 Accounts payable .................................................... 36,000 Salaries payable . (400)Unearned training fees ............................................ 6,600 T. Watson, Capital .................................................... 63,600 T. Watson, Withdrawals .......................................... 40,000Tuition fees earned .................................................. 109,500 Training fees earned ................................................ 42,400 Depreciation expense—Professional library ........ 6,000 Depreciation expense—Equipment ....................... 12,000Salaries expense ..................................................... 48,400Insurance expense .................................................. 3,000Rent expense ............................................................ 24,000Teaching supplies expense .................................... 7,400 Advertising expense ................................................ 7,000Utilities expense....................................................... 5,600 _______ Totals ........................................................................ $301,500 $301,500Part 4WATSON TECHNICAL INSTITUTEIncome StatementFor Year Ended December 31, 2015RevenuesTuition fees earned ............................................ $109,500Training fees earned .......................................... 42,400Total revenues .................................................... $151,900 ExpensesDepreciation expense—Professional library ... (6,000)Depreciation expense—Equipment .................. (12,000)Salaries expense ................................................ (48,400)Insurance expense ............................................. (3,000)Rent expense ...................................................... (24,000)Teaching supplies expense ............................... (7,400)Advertising expense .......................................... (7,000)Utilities expense ................................................. (5,600)Total expenses ................................................... (113,400) Net profit ............................................................... $ 38,500WATSON TECHNICAL INSTITUTEStatement of Changes in EquityFor Year Ended December 31, 2015T. Watson, Capital, December 31, 2014 .............. $ 63,600 Net profit .............................................................. 38,500102,100 Owner withdrawals .............................................. (40,000) T. Watson, Capital, December 31, 2015 .............. $ 62,100WATSON TECHNICAL INSTITUTEStatement of Financial PositionDecember 31, 2015AssetsCash ................................................................................. $ 26,000 Accounts receivable ...................................................... 7,500 Teaching supplies .......................................................... 2,600 Prepaid insurance .......................................................... 12,000 Professional library ........................................................ $30,000 Accumulated depreciation—Professional library ....... (15,000) 15,000 Equipment ....................................................................... 70,000 Accumulated depreciation—Equipment ...................... (28,000) 42,000 Total assets ..................................................................... $105,100LiabilitiesAccounts payable ........................................................... $ 36,000 Salaries payable . (400)Unearned training fees .................................................. 6,600 Total liabilities ................................................................ 43,000EquityT. Watson, Capital .......................................................... 62,100 Total liabilities and equity ............................................. $105,100。

金融英语中级考试笔记-会计

CHAPTER 1Assets：things owned by a business which carried a value，they can be considered as economic resources，providing benefits to the business.Liabilities：amount owed by a business to various parties，they can be considered as debts or obligations owned by the business to outside bodies.Posting：recording transactions and entering accounts are often called “posting”。

A trail balance：is therefore defined as a list of balances of ledger accounts worked out periodically to test the calculation accuracy of account.---------every account in the ledger is labelled (with debit or credit )---------the items can come in any order---------when the debit balance agree with the credit balances, it confirm that there has been a debit entry for every credit entry in the posting of the account---------it is an interim summary of the information shown by the account，it should carry date.---------the main difference between trial balance statements and balance sheets is that in the trial balance，all accounts in the ledger are shown as simple balances （debit or credit ）whereas in the balance sheet，they are shown not as debit or credit balances but as assets and liabilities respectively. ---------trial balance is unable to detect the following type of errors:1）omission in the recording of the accounting data2）an entry is made into the wrong account of the same group3）an entry is entered into the wrong group of the account4）there are mistakes in the book of original entry in amount5）mistake is made on the wrong side in the book of original entry6）mistake is covered up by a same mistakeNominal account：do not represent an asset or a liability. They simply store up information needed to work out a profit or loss for the business at the year end. Nominal account includes：purchases ，sale，rent，wages，lights and other such expenses. The nominal accounts will give us the information needed to calculate the profit or loss periodically. At the end of a financial year，the nominal accounts are written off by transferring the amounts to the trading and profit and loss account，leaving he nominal accounts empty.Journal：the journal，or the book of original entry ，is a chronological record，showing for each transaction the debit and credit changes in specific ledger accounts. The debit and credit entries recorded in the journal are transferred to the accounts in the ledger at appropriate intervals. Structure of journal：date ，accounting titles and explanation，ledger page ，debit ，credit.CHAPTER 2Purchases in accounting means the purchase of those goods which the firm buys，and the main objective is to sell them.Sales in accounting means the sale of those goods which the firm normally deals with and which were acquired with resale being the main objective.Creditor and debtorA person to whom money is owed for goods is known as creditor，while a person who owes the firm money is known as a debtor.Balancing off accountsIt is the process of calculating how much the balance of an account should be carried forward to the nest period. If the debit total is greater，the difference should be entered into the debit side of the account.Correction of ErrorsErrors of commission （not affecting the trial balance agreement）i.e. in the wrong person's accountErrors of principle （not affecting the trial balance agreement）i.e. entered in the wrong type of account：motor or motor expenseErrors of original entry （not affecting the trial balance agreement）Such errors are made where the original amount is incorrect.Errors of omission （not affecting the trial balance agreement）Such errors are made where transactions are not entered into the books at all.Compensating errors （not affecting the trial balance agreement）Such errors are made where mistakes cancel each other outComplete reversal of entries （not affecting the trial balance agreement）Such mistakes are made where the correct amount are entered in the correct accounts，but each item is shown on the wrong side of each account. We have to make the amount twice the amount of the error.Chapter 3 accounting and accounting cyclesAccounting is the process of providing quantitative information about business entities to help users in making decisions regarding the allocation of economic resources.The process of accounting consists of ：1. Identification——the observation of activity and the selection of particular events that are evidence of economic activities to an entity.2. Measurement ——the quantification fo the events in monetary terms3. Recording ——the keeping of a chronological diary of the measured events.4. Communication ——the preparation and distribution of financial statements to users.Financial accounting ：involves the recording and presentation of factual transactions.Managerial accounting ：involves the use of financial information to interpret its implications for decision-making purposes.Forms of business organizations：Sole proprietorship：is owned and usually managed by one individual ，partnership has more than one owner；limited company is a separate legal entity that is owned by many individuals，called shareholders，who are issued shares of capital as evidence of their ownership.AccountAn account is a business document used to record ad retain monetary information about a company's transaction. The company‟s full set of accounts are kept in a general ledger and accounts are sometimes called general ledger accounts.PostingIt is the process of transferring the debit and credit information record in each journal entry to the proper accounts in the general ledger.Accounting periodIt is the period of time for which the net profit of a company is computed. An accounting period of less than one year is called interim period.RevenueIt is derived from the charge to customers for goods or services provided，resulting in increase in assets or decrease in liabilities.ExpenseThey are the cost of purchasing goods or services used in running the business ，resulting in decrease in assets or increase in liabilities.Accrual accounting and cash base accounting1. In accrual accounting ，revenues are recorded in the period in which goods or services are provided，regardless of when cash is received. The revenues and expenses of the same period are matched so that the company's profit can be determined.2. Under the cash basis accounting system，net profit is the difference between cash receipt from operations and cash payments made during the accounting period. It may distort the net profit.Depreciation1. Provision for depreciation is the process of allocation of the cost of aphysical asset to each accounting period in which the asset is used.2. Depreciation represents the portion consumed during the accountingperiod.3. When depreciation expense is debited，the provision for depreciation is credited.4. Provision for depreciation represents the total depreciation expenses recorded since the asset was purchased.Chapter 4 accounting principlesBusiness entity assumption1. economic events can be identified with a particular unit of accountability.2. Accounting is mainly concerned with the business organization as a separate entity.3. The revenues and expenses of a business are regarded as affecting its assets and liabilities but not the individual investor's assets and liabilities.Monetary unit assumption1. only transaction data capable of being expressed in terms of money should be included in the accounting records and the unit of measurement remains constant over a specific period of time.2. The use of the monetary nit assumption has two major limitations. First ，it limits the scope of accounting reports，i.e. goodwill. Second，the purchasing power of money continually changes.Periodic assumption1. the economic life of a business can be divided into artificial time periods.2. We must therefore prepare periodic reports on operations and financial position fordecision-makers such as management and other parties.3. The accounting period concept creates many difficulties . i.e. adjusted entries are needed to report net income for a period of time. The inventory costing，estimating bad debt provisions，and selecting depreciation methods are also directly related to measuring periodic profit.Going concern assumption1. The business will continue in operation long enough to carry out itsexisting objectives and commitments.2. The going concern assumption also supports the recording of prepaid expenses as assets although in most cases the prepayments cannot be sold.3. The assumption justifies our recording fixed assets at cost and depreciating them without reference to their current replacement costs.4. When the ability of a business to continue as a going concern is doubtful，this fact should be disclosed in a note to the financial statement.5. The financial statement s should be prepared from the quitting concern or even liquidation point of view instead of a going concern point of view.Contingent liabilitiesContingent liabilities are potential obligations that will become liabilities only if certain events happen in the future. If the liabilities are probable and the amount of the liabilities can be reasonably estimated，it should be recorded in the accounts.Capital expenditure and revenue expenditureCapita expenditure is the amount of investment by a business in its assets retained for the purpose of earning profits，which are termed fixed assets.Revenue expenditure are those costs incurred in running a business on a current or daily basis.Chapter 5 accounting for trading companiesCredit memo （credit note）——sales returnDebit memo——purchase returnPerpetual inventory system and periodic inventory system*In a perpetual inventory system， a continuous record is kept for the cost of goods sold and the cost of stock on hand. It is usually employed for items that have high selling prices and costs that are easily determined. When a sale occurs and a perpetual inventory system is used，two journal entries must be made at the same time，namely one journal entry to record sales and another entry to record cost of sales.**A periodic inventory system is used when items are sold at a very low rice，when the cost of the individual items is not easily determined，or when high volumes of items are sold. Cost of goods sold can only be determined by counting the unsold items in the warehouse at the end of the accounting period. Under the periodic inventory system，the amount in the stock account remains unchanged during the accounting period.Special journalsSpecial journals are used to record transactions efficiently and to summarize many similar transactions.Subsidiary ledgerA subsidiary ledger is a group of similar accounts that are taken out of the general ledger and show details of every customer and supplier.It should be noted that if subsidiary ledgers are used，an entry that affects a subsidiary ledger account must be posted twice——once to the subsidiary ledger account and once to the control account in the general ledger. DR. Debtor subsidiary ledger （named debtor）and debtors account （as control account）CR. Sales account.Chapter 6 accounting procedures for asset and liabilitiesImprest systemIt implies a fixed amount of cash，a float is supplied. From the float，expenses are paid，which are reimbursed at the end of the period bringing the amount in hand up to the original amount.Bank reconciliation statementA bank reconciliation statement is normally prepared each month to analyze the differences between the ending cash balance on the bank statement and the ending cash balance in the firm…s accounting records.Its begin is …balance per bank statement‟ ends at …balance per cash book‟ （correct version or adjusted one）。

FinancialAccounting第五版课后作业答案（部分）

FinancialAccounting第五版课后作业答案（部分）EXERCISE 1-31. (c) 5. (d)2. (d) 6. (b)3. (a) 7. (e)4. (b) 8. (f)EXERCISE 1-7(a) Total assets (beginning of year) $ 97,000Total liabilities (beginning of year) 85,000Total stockholders’ equity (beginning of year) $ 12,000(b) Total stockholders’ equity (end of year) $ 40,000 Total stockholders’ equity (beginning of year) 12,000 Increase in stockholders’ equity $ 28,000Total revenues $215,000Total expenses 175,000Net income $ 40,000Increase in stockholders’ equity $ 28,000Less: Net income $(40,000)Add: Dividends 24,000) (16,000 )Additional investment $ 12,000(c) T otal assets (beginning of year) $129,000Total stockholder s’ equity (beginning of year) 75,000Total liabilities (beginning of year) $ 54,000EXERCISE 1-7 (Continued)(d) Total stockholders’ equity (end of year) $130,000 Total stockholders’ equity (beginning of year) 75,000 Increase in stockholders’ equity $ 55,000Total revenues $100,000Total expenses 55,000Net income $ 45,000Increase in stockholders’ equity $55,000Less: Net income $(45,000)Additional investment (25,000) (70,000)Dividends $15,000PROBLEM 1-1A (Continued)Key to Retained Earnings column on previous page.(a) Rent Expense(b) Advertising Expense(c) Service Revenue(d) Dividends(e) Salaries Expense(b) Service revenue $7,500ExpensesSalaries $2,200Rent 400Advertising 300 2,900Net income $4,600P1-3A(a) DIVINE COSMETICS CO.Income StatementFor the Month Ended June 30, 2006RevenuesService revenue $5,500 ExpensesSupplies expense $1,600Gas and oil expense 800 Advertising expense 500Utilities expense 300Total expenses 3,200Net income $2,300DIVINE COSMETICS CO. Retained Earnings StatementFor the Month Ended June 30, 2006Retained Earnings, June 1 $ 0 Add: Net income 2,3002,300Less: Dividends 1,700Retained Earnings, June 30 $ 600DIVINE COSMETICS CO.Balance SheetJune 30, 2006AssetsCash $10,000Accounts receivable 4,000 Cosmetic supplies 2,000 Equipment 25,000Total assets $41,000Liabilities and Stockholders’ Equity LiabilitiesNotes payable $13,000Accounts payable 1,200Total liabilities ?14,200Stoc kholders’ equityCommon stock $26,200Retained earnings 600Total stockholders’ equity ?26,800Total liabilities and stockholders’ equity $41,000(b) DIVINE COSMETICS CO.Income StatementFor the Month Ended June 30, 2006RevenuesService revenue ($5,500 + $800) $6,300 ExpensesSupplies expense $1,600Gas and oil expense ($800 + $100) 900 Advertising expense 500Utilities expense 300Total expenses 3,300Net income $3,000DIVINE COSMETICS CO.Retained Earnings StatementFor the Month Ended June 30, 2006Retained Earnings, June 1 $ 0 Add: Net income 3,0003,000Less: Dividends 1,700Retained Earnings, June 30 $1,300。

note 005 Financial Accounting of Sole Trader Finan

Revenues
Minus
Equals Expenses
Net income
FA1
Liana Mohamad
Merchandising Activities
Merchandising Companies
Manufacturer
Wholesaler
Retailer
Customer
FA1
Liana Mohamad
Liana Mohamad
Trade Discounts
Used by manufacturers and wholesalers to offer better prices for greater quantities purchased.
Example
Matrix, Inc. offers a 30% trade discount on orders of 1,000 units or more of their popular product Racer. Each
Terms Time
Discount Period
Due
Full amount less discount
Purchase or Sale
FA1
Credit Period Full amount due
Liana Mohamad
Purchase Returns and Allowances
Purchase Return . . .
Merchandise returned by the purchaser to the supplier.
Purchase Allowance . . .
A reduction in the cost of defective merchandise received by a purchaser from a supplier.

Introduction to Financial Accounting Chapter 1

Operating activities
Involves transactions in primary operations of business
1-5
Basic Accounting Equation
Company’s resources
Claims to those resources
Investors and Creditors would like to know about
Operating cash flows
Investing cash flows
Financing cash flows
1-16
Statement of Cash Flows for Eagle Golf Academy
EAGLE GOLF ACADEMY Statement of Cash Flows For the month ended January 31 Cash Flows from Operating Activities Cash inflows: From customers $4,200 Cash outflows: For salaries (2800) For rent (6000) Net cash flows from operating activities Cash Flows from Investing Activities Purchase equipment (24000) Net cash flows from investing activities Cash Flows from Financing Activities Issue common stock 25,000 Borrow from bank 10,000 Pay dividends (200) Net cash flows from financing activities Net increase in cash Cash at the beginning of the month Cash at the end of the month

2009 F-5 Class Notes

FINANCIAL 5 CLASS NOTESFinancial 5 includes the following:I. ACCOUNTING FOR OPERATING LEASESleases are essentially ‘rentals’ and all cash flows have to be straight-linedA. Operatingover the lease period as the periodic expense to the lessee and as lease revenue to thelessor (matching principle). Cash payments intended to be returned to the lessee areexcluded from the expense/revenue calculation and are treated as deposits.improvements by a lessee must be expensed over the shorter of theB. Leaseholdremaining lease term or the life of the improvement.II. CAPITAL LEASES AND LESSEESA. Lessees account for capital leases as though purchased if one or more of 4 (OWNS)tests is met:1.O wnership transfers to lessee at end of lease2.W ritten bargain purchase option exists [PO<estimated fair value]3.N inety percent of the leased property’s fair value is less than or equal to thepresent value of the minimum lease payments4.S eventy-five percent of the asset’s economic life will be consumed in the leaseterm.B. Lessees record the capital leased asset and the lease liability at the present value ofthe minimum lease payments, not to exceed fair value of asset.C. Minimum lease payments include the required periodic payments and the bargainpurchase and/or guaranteed residual value (if any). Executory costs (maintenance,insurance, taxes, etc.) are excluded.D. The interest rate used is the lesser of the rate implicit in the lease (if known) or thelessee’s incremental borrowing rate. The lease liability is amortized using the effectiveinterest method.E. Depreciation is based on the lease term unless the lease has a bargain purchase optionor ownership transfers to lessee at end of the term.III. CAPITAL LEASES AND LESSORSA. Lessors with capital leases may have sales type or direct financing leases. Lessorshave capital leases when meeting one of the 4 OWNS tests as described for lesseesabove. In addition, there can be no material uncertainties about collectibility orunreimbursable costs.B.Sales type leases recognize a dealer profit or gross margin at lease inception. Aspayments are received, interest revenue will also be recognized by the effective interestmethod.C. Indirect-financing type lease, the lessor acts essentially as a finance company andadoes not recognize gross profit on sale. Interest revenue is recognized by the effectiveinterest method.IV. SALES AND LEASEBACKSA. If the seller/lessee retains substantially all (90+%) of the rights, any gain is deferred overthe leased asset.B. “Minor” (<10%) retention allows full recognition of any gain.C. Mid-range rights retention (10%-90%) requires that any gain be deferred up to thepresent value of the minimum lease payments (operating lease) or capitalized asset(capital lease), with any excess gain recognized immediately.V. LONG-TERM LIABILITIES AND BONDS PAYABLEA. Bonds are long-term debt instruments issued by an entity. Debentures are unsecured.Bonds may also be convertible into common stock and may have detachable warrants.Typically the face value of individual bonds will be $1,000. Interest at the coupon ratemay be payable annually or semiannually and bond prices are quoted as 100’s (% of facevalue). The market will adjust the price paid for the bond to reflect the market, oreffective, interest rate.B. Bond selling price is the sum of the present value of the total face value of the bond plusthe present value of future interest payments, both discounted at the effective (market)interest rate. When the bond coupon rate exceeds the market rate the bond will sell ata premium. If the bond coupon rate is below the market, the market will adjust and thebond will sell at a discount.C. Bonds can be issued for more or less than their face amounts. If sold above the 100 facevalue, the excess is premium. If sold below 100, the difference is discount. Premiumand discount result from market interest rate fluctuations and they are amortized tointerest expense using the straight-line or effective interest (GAAP) method.Unamortized discount or premium is a component of the carrying value of a bond.Carrying value is eventually face value at the maturity of the bond and it is used tocalculate the interest expense when using the effective interest method ofpremium/discount amortization.D. Bond issue costs are amortized using the straight-line method over the period the bondsare outstanding.E. When bonds are issued between interest payment dates, the selling price includes theaccrued interest to date.F. Interest is accrued at year-end from the last interest payment date.G. Convertible bondholders have the option of converting the bonds into common equity.The two accounting methods for conversion are Book Value and Market Value. TheMarket Value method can result in a gain or loss on conversion.H. Detachable stock purchase warrants have a value separate from the bond and the valueof the warrants is part of stockholders’ equity. The warrants only or market valuemethod may be used.I. Extinguishment of debt can occur at maturity or earlier (if the issuer calls the bond).Early extinguishment can result in an extraordinary gain or loss if it is both unusualand infrequent.VI. TROUBLED DEBT RESTRUCTURINGtroubled debt restructuring generally involves a creditor giving concessions to aA. Adebtor that would not be likely under normal circumstances. The debtor will recognize again in the excess of the carrying amount of the payable (including accrued interest) overthe fair value of the assets given up. The restructuring gain may be an extraordinaryitem if it meets the requirements for such treatment. An ordinary gain or loss may resultfrom the difference between the FMV and the NBV of the asset transferred.anequity interest is transferred, there may be a gain to the extent that the FMV of theB. Ifequity transferred exceeds the face of the payable. This gain may also be classified asextraordinary if it meets the requirements.C. If there is a modification of terms, the debtor does not change the carrying amount ofthe debt unless it exceeds the total future cash payments under the new terms.D. A restructuring may involve a combination of asset transfers, equity transfers andmodification of terms.E. From the creditor’s standpoint, these loans are treated as impaired and a loss accrualmay be necessary.Present Value techniques are in the introductory part of the F5 lecture. Since these apply to many topics, they are important to understand. Capital leases, bonds and pension plans are just three of the accounting topics that require present value computations.Investments in Debt Securities is also covered in this class. Prior to this, the topic was also covered in F3 - Marketable Securities. Investments in debt securities may be classified as “held-to-maturity” if management has the intent and ability to do so.The general subject of Liabilities is given more extensive coverage in the Required Reading section. Imputing interest on payables (and receivables) is also covered in the readings.The F5 lecture covers two of the more difficult subject areas in leases and bonds payable. Doing the simulations will definitely help to solidify the concepts for you.。

财务管理

CHAPTER 1ACCOUNTING MATTERS!MULTIPLE CHOICE QUESTIONS41. Accountants refer to an economic event as aa. purchase.b. sale.c. transaction.d. change in ownership.42. The process of recording transactions has become more efficient becausea. fewer events can be quantified in financial terms.b. computers are used in processing business events.c. more people have been hired to record business transactions.d. business events are recorded only at the end of the year.43. Communication of economic events is the part of the accounting process that involvesa. identifying economic events.b. quantifying transactions into dollars and cents.c. preparing accounting reports.d. recording and classifying information.44. Which of the following events is not an accounting transaction?a. Purchasing an office building.b. Selling a delivery truck.c. Paying income taxes.d. Hiring a payroll clerk.45. The use of computers in recording business eventsa. has made the recording process more efficient.b. does not use the same principles as manual accounting systems.c. has greatly impacted the identification stage of the accounting process.d. is economical only for large businesses.46. The accounting process involves all of the following excepta. identifying economic transactions that are relevant to the business.b. communicating financial information to users by preparing financial reports.c. recording nonquantifiable economic events.d. analyzing and interpreting financial reports.47. The accounting process is correctly sequenced asa. identification, communication, recording.b. recording, communication, identification.c. identification, recording, communication.d. communication, recording, identification.48. Which of the following techniques are not used by accountants to interpret and report financialinformation?a. Graphsb. Special memos for each class of external usersTest Bank for Financial Accounting, Fifth Edition1 - 2d. Ratios49. Which of the following would be considered an internal user of accounting data for the RaintreeCompany?a. Staff accountant for the Securities Exchange Commissionb. Production managerc. Credit analyst for BankOned. President of the employees' labor union50. Which of the following would be considered an external user of accounting data for the RaintreeCompany?a. Internal Revenue Service Agentb. Vice-president of financec. Production supervisord. Cost accountant51. Which of the following would not be considered internal users of accounting data for a company?a. The president of a companyb. The controller of a companyc. Creditors of a companyd. Salesmen of the company52. Which of the following is an external user of accounting information?a. Labor unionsb. Finance directorsc. Company officersd. Managers53. Which one of the following is not an external user of accounting information?a. Regulatory agenciesb. Customersc. Investorsd. All of these are external users54. Bookkeeping differs from accounting in that bookkeeping primarily involves which part of theaccounting process?a. Identificationb. Communicationc. Recordingd. Analysis55. All of the following are services offered by public accountants excepta. budgeting.b. auditing.c. tax planning.d. consulting.56. Which list below best describes the major services performed by public accountants?a. Bookkeeping, mergers, budgetsb. Employee training, auditing, bookkeepingAccounting Matters! 1 - 3d. Cost accounting, production scheduling, recruiting57. Preparing tax returns and engaging in tax planning is performed bya. public accountants only.b. private accountants only.c. both public and private accountants.d. IRS accountants only.58. Creditors use financial accounting information toa. determine whether the company is following regulatory guidelines.b. determine whether the company is complying with tax lawsc. evaluate the risks of lending moneyd. make decisions to about buying, holding, or selling stock.59. The origins of accounting are generally attributed to the work ofa. Christopher Columbus.b. Abner Doubleday.c. Luca Pacioli.d. Leonardo da Vinci.60. A private accountant can perform many activities in a business organization but would not work ina. budgeting.b. accounting information systems.c. external auditing.d. tax accounting.61. An accountant working in the not-for-profit sector would not be employed bya. a local government.b. the Red Cross.c. a large retail department store.d. the Internal Revenue Service.62. The first step in solving an ethical dilemma is toa. identify and analyze the principal elements in the situation.b. identify the alternatives.c. recognize an ethical situation and the ethical issues involved.d. weigh the impact of each alternative on various stakeholders.63. Ethics are the standards of conduct by which one's actions are judged asa. right or wrong.b. honest or dishonest.c. fair or unfair.d. all of these.64. Generally accepted accounting principles area. income tax regulations of the Internal Revenue Service.b. standards that indicate how to report economic events.c. theories that are based on physical laws of the universe.d. principles that have been proven correct by academic researchers.65. The cost principle requires that when assets are acquired, they be recorded ata. appraisal value.b. exchange price paid.c. selling price.d. list price.1 - 4Test Bank for Financial Accounting, Fifth Edition66. The cost of an asset and its fair market value area. never the same.b. the same when the asset is sold.c. irrelevant when the asset is used by the business in its operations.d. the same on the date of acquisition.67. The body of theory underlying accounting is not based ona. physical laws of nature.b. concepts.c. principles.d. definitions.68. The private sector organization involved in developing financial accounting principles is thea. Securities Exchange Commission.b. Internal Revenue Service.c. Financial Accounting Standards Board.d. Accounting Principles Board.69. The SEC and FASB are two organizations that are primarily responsible for establishing generallyaccepted accounting principles. It is true thata. they are both governmental agencies.b. the SEC is a private organization of accountants.c. the SEC often mandates guidelines when no accounting principles exist.d. the SEC and FASB rarely cooperate in developing accounting standards.70. GAAP stands fora. Generally Accepted Auditing Procedures.b. Generally Accepted Accounting Principles.c. Generally Accepted Auditing Principles.d. Generally Accepted Accounting Procedures.71. Which of the following is not a characteristic of the cost principle?a. Reliabilityb. Subjectivityc. Objectivityd. Verifiability72. Actup Company purchased a manufacturing facility for $20 million in 1999. The fair market value atthe end of 2006 of the facility is $25 million. The facility will be reported on the 2006 balance sheet ata. $5 million.b. $20 million.c. $25 million.d. $45 million.73. All of the following are advantages cost has over other valuations except that ita. is reliable.b. can be objectively measured.c. can be verified.d. is relevant.74. The proprietorship form of business organizationa. must have at least three owners in most states.b. represents the largest number of businesses in the United States.c. combines the records of the business with the personal records of the owner.d. is characterized by a legal distinction between the business as an economic unit and the owner.Accounting Matters! 1 - 575. The economic entity assumption requires that the activitiesa. of different entities can be combined if all the entities are corporations.b. must be reported to the Securities and Exchange Commission.c. of a sole proprietorship cannot be distinguished from the personal economic events of itsowners.d. of an entity be kept separate from the activities of its owner.76. A business organized as a corporationa. is not a separate legal entity in most states.b. requires that stockholders be personally liable for the debts of the business.c. is owned by its stockholders.d. terminates when one of its original stockholders dies.77. The partnership form of business organizationa. is a separate legal entity.b. is a common form of organization for service-type businesses.c. enjoys an unlimited life.d. has limited liability.78. Which of the following is not an advantage of the corporate form of business organization?a. Limited liability of stockholdersb. Transferability of ownershipc. Unlimited personal liability for stockholdersd. Unlimited life79. An international telecommunications company would likely be organized as aa. joint venture.b. partnership.c. corporation.d. proprietorship.80. Joan and Sara met at law school and decide to start a small law practice after graduation. Theyagree to split revenues and expenses evenly. The most common form of business organization fora business such as this would be aa. joint venture.b. partnership.c. corporation.d. proprietorship.81. Which of the following is true regarding the corporate form of business organization?a. Corporations are the most prevalent form of business organization.b. Corporate businesses are generally smaller in size than partnerships and proprietor-ships.c. The revenues of corporations are greater than the combined revenues of partnerships andproprietorships.d. Corporations are separate legal entities organized exclusively under federal law.82. A basic assumption of accounting that requires activities of an entity be kept separate from theactivities of its owner is referred to as thea. stand alone concept.b. monetary unit assumption.c. corporate form of ownership.d. economic entity assumption.1 - 6Test Bank for Financial Accounting, Fifth Edition83. Deb Smith is the proprietor (owner) of Smitty's, a retailer of athletic apparel. When recording thefinancial transactions of Smitty's, Deb does not record an entry for a car she purchased for personal use. Deb took out a personal loan to pay for the car. What accounting concept guides Deb's behavior in this situation?a. Pay back conceptb. Economic entity assumptionc. Cash basis conceptd. Monetary unit assumption84. A basic assumption of accounting assumes that the dollar isa. unrelated to business transactions.b. a poor measure of economic activities.c. the common unit of measure for all business transactions.d. useless in measuring an economic event.85. The assumption that the unit of measure remains sufficiently constant over time is part of thea. economic entity assumption.b. cost principle.c. historical cost principle.d. monetary unit assumption.86. A business that enjoys limited liability is aa. proprietorship.b. partnership.c. corporation.d. sole proprietorship.87. A problem with the monetary unit assumption is thata. the dollar has not been stable over time.b. the dollar has been stable over time.c. the dollar is a common medium of exchange.d. it is impossible to account for international transactions.88. The common characteristic possessed by all assets isa. long life.b. great monetary value.c. tangible nature.d. future economic benefit.89. Ample Company has total assets of $100,000 and total liabilities of $60,000. The company’sstockholders’ equity isa. $40,000.b. $60,000.c. $100,000.d. $160,000.90. The basic accounting equation may be expressed asa. Assets = Equities.b. Assets –Liabilities = Stockholders’ Equity.c. Assets = Liabilities + Stockholders’ Equity.d. all of these.91. Liabilitiesa. are future economic benefits.Accounting Matters! 1 - 7c. possess service potential.d. are things of value used by the business in its operation.92. Liabilities of a company would not includea. notes payable.b. accounts payable.c. wages payable.d. cash.93. Liabilities of a company are owed toa. debtors.b. benefactors.c. creditors.d. underwriters.94. Stockholders’ equity can be described asa. creditorship claim on total assets.b. ownership claim on total assets.c. benefactor's claim on total assets.d. debtor claim on total assets.95. Stockholders’ equity is often referred to asa. residual equity.b. leftovers.c. spoils.d. second equity.96. When a distribution of cash or other assets is made to stockholders, this distribution is termed aa. depletion.b. consumption.c. dividend.d. credit line.97. Common stock isa. a stockholders’ permanent investment in the business.b. equal to liabilities minus stockh olders’ equity.c. equal to assets minus stockholders’ equity.d. equal to liabilities plus dividends.98. Revenues would not result froma. sale of merchandise.b. initial investment of cash by owner.c. performance of services.d. rental of property.99. Sources of increases to stockholders’ equity area. additional investments by owners.b. purchases of merchandise.c. distributions to owners.d. expenses.100. Best Enterprises reports total assets of $200,000, total liabilities of $125,000 and stockholders’ equity of $75,000. The company’s accounting equation can be stated all of the following ways except:1 - 8Test Bank for Financial Accounting, Fifth Editionb. $200,000 – $75,000 = $125,000.c. $75,000 + $125,000 = $200,000.d. $200,000 + $125,000 = $325,000.101. Stockholders’ equity is decreased by all of the following excepta. owner's investments.b. owner's withdrawals.c. expenses.d. owner's drawings.102. A net loss will result during a time period whena. liabilities exceed assets.b. drawings exceed investments.c. expenses exceed revenues.d. revenues exceed expenses.103. Stockholders’ equity is increased bya. dividends.b. revenues.c. expenses.d. liabilities.104. Stockholders’ equity is decreased bya. assets.b. revenues.c. expenses.d. liabilities.105. If Carmine Company purchases goods on account for $4,000, thena. assets and liabilities both decrease by $4,000.b. stockholders’ equity increases by $4,000.c. assets increase by $4,000 and liabilities decrease by $4,000.d. assets and liabilities both increase by $4,000.106. Delta Company owes Franco Company $500 on account. When Delta pays the debt, the transaction recorded on Franco’s books willa. increase an asset $500 and decreases an asset $500.b. increase an asset $500 and decrease a liability $500.c. decrease a liability $500 and increase Stockholders’ equity $500.d. decrease an asset $500 and decrease a liability $500.107. Revenues area. the cost of assets consumed during the period.b. gross increases in Stockholders’ equity resulting from business activities.c. the cost of services used during the period.d. actual or expected cash outflows.108. The accounting equation for Goodboys Enterprises is as follows:Assets Liabilities Stockholders’ Equity$120,000 = $60,000 + $60,000If Goodboys purchases office equipment on account for $12,000, the accounting equation will change to:Assets Liabilties Stockholders’ EquityAccounting Matters! 1 - 9b. $132,000 = $60,000 + $72,000c. $132,000 = $66,000 + $66,000d. $132,000 = $72,000 + $60,000109. If services are rendered for credit, thena. assets will decrease.b. liabilities will increase.c. Stockholders’ equity will increase.d. liabilities will decrease.110. If expenses are paid in cash, thena. assets will increase.b. liabilities will decrease.c. Stockholders’ equity will increase.d. assets will decrease.111. If a shareholder receives a dividend from a corporation, thena. there has been a violation of accounting principles.b. Stockholders’ equity will increase.c. Stockholders’ equity will decrease.d. there will be a new liability showing the owner owes money to the business.112. If supplies that have been purchased are used in the course of business, thena. a liability will increase.b. an asset will increase.c. Stockholders’ equity will decrease.d. Stockholders’ equity will increase.113. As of June 30, 2006, Houston Company has assets of $100,000 and stockholders’ equity of $5,000.What are the liabilities for Houston Company as of June 30, 2006?a. $85,000.b. $90,000.c. $95,000.d. $100,000.114. Which of the following events is not a business transaction?a. Investment of $20,000 cash by the ownerb. Hired employees for $9/ hourc. Incurred utility expenses of $450 for the monthd. Earned revenue of $2,200 for services provided115. Net income results whena. Assets > Liabilities.b. Revenues = Expenses.c. Revenues > Expenses.d. Revenues < Expenses.116. Ironton Company’s stockholders’ equity at the beginning of August 2006 was $300,000. During the month, the company earned net income of $60,000 and paid dividends of $20,000. At the end of August 2006, what is the balance in stockholders’ equity?a. $260,000b. $300,000c. $340,000d. $380,000117. A balance sheet showsa. revenues, liabilities, and stockholders’ equity.Test Bank for Financial Accounting, Fifth Edition1 - 10c. revenues, expenses, and drawings.d. assets, liabilities, and stockholders’ equity.118. An income statementa. summarizes the changes in stockholders’ equity for a specific period of time.b. reports the changes in assets, liabilities, and stockholders’ equity over a period of time.c. reports the assets, liabilities, and stockholders’ equity at a specific date.d. presents the revenues and expenses for a specific period of time.119. On January 1, 2006, Jackson Company reported stockholders’ equity of $470,000. During the year, the company paid dividends of $20,000. At December 31, 2006, the balance in stockholders’equity was $500,000. What amount of net income or net loss would the company report for 2006?a. net income of $30,000.b. net loss of $50,000.c. net income of $10,000.d. net income of $50,000.Use the following information for questions 120–122.India Star Catering started the year with total assets of $20,000 and total liabilities of $5,000. During the year the business recorded $16,000 in catering revenues and $8,000 in expenses. Stockholders made additional investments of $3,000 and the company paid dividends of $5,000 during the year.120. The stockholders’ equity at the end of the year wasa. $21,000.b. $18,000.c. $8,000.d. $2,000.121. The net income reported by India Star Catering for the year wasa. $16,000.b. $11,000.c. $8,000.d. $3,000.122. S tockholders’ equity changed by what amount from the beginning of the year to the end of the year?a. $15,000.b. $14,000.c. $6,000.d. $3,000.123. The balance sheet is frequently referred to asa. an operating statement.b. the statement of financial position.c. the statement of cash flows.d. the statement of retained earnings.124. The primary purpose of the statement of cash flows is to reporta. a company's investing transactions.b. a company's financing transactions.c. information about cash receipts and cash payments of a company.125. All of the financial statements are for a period of time except thea. income statement.b. statement pf retained earnings.c. balance sheet.d. statement of cash flows.126. The ending retained earnings balance is shown ona. the balance sheet only.b. the statement of retained earnings only.c. both the income statement and the statement of retained earnings.d. both the balance sheet and the statement of retained earnings.127. Which of the following is not part of the accounting process?a. Recordingb. Identifyingc. Financial decision makingd. Communicating128. The first part of the accounting process isa. communicating.b. identifying.c. processing.d. recording.129. Keeping a chronological diary of measured events in an orderly and systematic manner is calleda. communicating.b. identifying.c. processing.d. recording.130. Auditing isa. the examination of financial statements by a CPA in order to express an opinion on theirfairness.b. a part of accounting that involves only recording of economic events.c. an area of accounting that involves such activities as cost accounting, budgeting, andaccounting information systems.d. conducted by the Securities and Exchange Commission to ensure that registered financialstatements are presented fairly.131. Internal users of accounting information include all of the following excepta. company officers.b. investors.c. marketing managers.d. production supervisors.132. The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) theFASB SECa. no nob. yes noc. no yesd. yes yes133. A private organization that establishes broad reporting standards of general applicability, as well as specific accounting rules, is thea. Financial Accounting Standards Board.b. General Accounting Office.c. Internal Revenue Service.d. Securities and Exchange Commission.134. A proprietorship is a businessa. owned by one person.b. owned by two or more persons.c. organized as a separate legal entity under state corporation law.d. owned by a governmental agency.135. A net loss will result during a time period whena. assets exceed liabilities.b. assets exceed owner's equity.c. expenses exceed revenues.d. revenues exceed expenses.136. The Hoka Cafe received a bill of $600 from their CPA at the end of April. The company is postponing payment of the bill until late May. The impact of receiving the bill on the basic accounting equation isa. a decrease in Cash of $600 and an increase in Accounts Payable of $600.b. a decrease in Cash of $600 and an increase in Stockholders’ Equity of $600.c. an increase in Accounts Payable of $600 and a decrease in Stockholders’ Equity of $600.d. no impact on the basic accounting equation until the bill is paid137. James Company purchases $600 of equipment from Mundelein Inc. for cash. The effect on the components of the basic accounting equation of James Company isa. an increase in assets and liabilities.b. a decrease in assets and liabilities.c. no change in total assets.d. an increase in assets and a decrease in liabilities.138. Morreale Beaver Company buys a $12,000 van on credit. The transaction will affect thea. income statement only.b. balance sheet only.c. income statement and statement of retained earnings only.d. income statement, statement of retained earnings, and balance sheet.139. Baxter and Banter CPAs performed auditing services and billed their client $1,500. This tranaction willa. increase assets and decrease liabilities by $1,500.b. increase assets and decrease retained earnings by $1,500c. decrease liabilities and retained earnings by $1,500d. increase assets and increase retained earnings by $1,500140. MFP Tutoring performed services and collected $120 in cash. This transaction will afffect thea. income statement onlyb. balance sheet onlyc. income statement and balance sheet onlyd. income statement, statement of retained earnings, and balance sheet.141. During the year 2006, Toronto Enterprises earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and paid dividends to the shareholders of $3,000. Net income for the year is:a. $45,000b. $20,000c. $17,000d. $15,000142. At October 1, Bennington Enterprises reported Stockholders’ Equity of $35,000. During Octobe r, no additional investments were made and the company earned net income of $4,000. If Stockholders’ Equity at October 31 totals $32,000, what amount of dividends were paid during the month?a. $0b. $1,000c. $3,000d. $7,000143. At October 1, Bennington Enterprises reported Stockholders’ Equity of $35,000. During October, no additional investments were made and the company posted a net loss of of $3,000. If Stockholders’ Equity at October 31 totals $32,000, what amount of dividends were paid during the month?a. $0b. $1,000c. $3,000d. $7,000144. At October 1, Bennington Enterprises reported Stockholders’ Equity of $35,000. During October, thw owners made additional investments of $2,000 and the company earned net income of $6,000.If Stockholders’ Equity at October 31 totals $40,000, what amount of dividends were paid during the month?a. $0b. $3,000c. $4,000d. $5,000145. At October 1, Bennington Enterprises reported Stockholders’ Equity of $35,000. During Octo ber, the stockholders made additional investments of $5,000 and the company posted a net loss of $3,000. If Stockholders’ Equity at October 31 totals $35,000, what amount of dividends were paid during the month?a. $0b. $2,000c. $3,000d. $5,000Answers to Multiple Choice Questions。

Financial Accounting第五版课后作业答案(部分)

Less: Net income $(40,000)
Add: Dividends 24,000) (16,000 )
Additional investment $ 12,000
(c) Total assets (beginning of year) $129,000
Less: Dividends 1,700
Retained Earnings, June 30 $ 600
DIVINE COSMETICS CO.
Balance Sheet
June 30, 2006
Assets
Retained Earnings, June 1 $ 0
Add: Net income 3,000
3,000
Less: Dividends 1,700
Retained Earnings, June 30 $1,300
Gas and oil expense 800
Advertising expense 500
Utilities expense 300
Total expenses 3,200
Net income $2,300
DIVINE COSMETICS CO.
PROBLEM 1-1A (Continued)
Key to Retained Earnings column on previous page.
(a) Rent Expense
(b) Advertising Expense
(c) Service Revenue
(d) Dividends
(e) Salaries Expense
(b) Service revenue $7,500

财务会计英文版原书第5版ch02bwzg

Steps in the Recording
Process
Journal Ledger
The Recording Process Illustrated
Summary illustration of journalizing and posting
The Trial Balance
Limitations of a trial balance Locating errors Use of dollar signs
Expense
Debit / Dr.
Credit / Cr.
Normal Balance
Chapter 3-25
Revenue
Debit / Dr.
Credit / Cr.
Chapter 2-8
Normal Balance
Chapter 3-27
Normal Balance
Chapter 3-26
SO 2
See notes page for discussion
Chapter 2-11
SO 2 Define debits and credits and explain their use in recording business transactions.
Assets and Liabilities
Common Stock
Debit / Dr.
Credit / Cr.
Retained Earnings
Debit / Dr.
Credit / Cr.
Dividends
Debit / Dr.
Credit / Cr.
Chapter 3-25
Chapter 2-13

mba fa 《financial accounting》习题答案4

CHAPTER 4THE MECHANICS OF FINANCIAL ACCOUNTINGBRIEF EXERCISESBE4–1Transaction Assets = Liabilities + Stockholders’ Equity Paid $3,656 to purchase + 3,656property, plant and equip. - 3,656Issued common stock + 967 = + 967for $967Recorded depreciation -4,651 = -4,651of $4,651Net effect -3,684 = -3,684b. The transaction to purchase property, plant and equipment does not appear to affect theaccounting equation. This is because both sides of the transaction affect the asset side of the balance sheet. Intel pays cash for p,p,&e; this reduces cash and increases fixed assets. All of the other transactions affect both sides of the balance sheet.BE4–2Transaction Assets = Liabilities + Stockholders’ Equity Borrowed $350 from banks, + 350 = +350issuing long-term debtPaid cash dividends of $208 - 208 = - 208Issued common stock for $28 + 28 = +28Paid $250 to reducelong-term debt -250 = -250 ___Net effect - 80 = +100 -180b. The net effect on the company’s long-term debt balance is to increase it by $100. Two sourcesthat could have provided the cash to finance the net effect of these four transactions are funds from operations and funds from investing activities. All of the transactions shown here are financing activities, which show a use of $80 for financing activities.1BE4–3Transaction Assets = Liabilities + Stockholders’ Equity Recognized revenues +953 = +953of $953, in exchange foraccounts receivable.Paid $431 for sales and -431 = -431marketing.Issued common stock for $78 +78 = +78Purchased marketable -1,166securities for $1,166 +1,166 = _____Net effect +600 = +600b. The first and second transactions would be reflected on the income statement. Yahoo wouldshow $953 of revenue on the income statement. Yahoo would also show sales and marketing expense of $431.All of these transactions would directly or indirectly be reflected on the statement of cash flows.The first two transactions would be netted in the cash from operations section, the third transaction would be in the financing section and the fourth transaction would be in the operations section.EXERCISESE4–1Assets = Liabilities + Stockholders' Equity(1) + 30,000 + 30,000(2) – 20,000+ 20,000(3) + 9,000 +9,000(4) + 8,000 + 8,000(5) – 5,500 – 5,500(6) – 500 – 500Total 41,000 9,000 32,000Note:Transactions (4), (5), and (6) are initially recorded in temporary accounts and are closed into the Retained Earnings account, which is part of stockholders' equity.E4–2Assets = Liabilities +Stockholders' EquityAccounts Notes Contributed RetainedCash + Receivable + Land = Payable + Capital + Earnings(1) + 30,000 +30,000(2) – 20,000 +20,000(3) + 9,000 +9,000(4) +8,000 + 8,000(5) – 5,500 – 5,500(6) – 500 – 500 Total 13,000 8,000 20,000 9,000 30,000 2,000Note:Transactions (4), (5), and (6) are initially recorded in temporary accounts and are closed into the Retained Earnings account, which is part of stockholders' equity.E4–3X CompanyIncome StatementFor the Year EndedRevenues..................................................................................................$ 8,000Operating expenses..................................................................................5,500Net income................................................................................................$ 2,500X CompanyStatement of Stockholders’ EquityFor the Year EndedContributed RetainedCapital EarningsBeginning balance $ 0 $ 0Net income 2,500Dividends (500)Owner contribution 30,000 _______Ending balance $ 30,000 $ 2,000X CompanyBalance SheetAs ofAssets Liabilities and Stockholders' EquityCash ....................................$ 13,000 Notes payable........................$ 9,000Accounts receivable.............8,000 Contributed capital.................30,000Land ....................................20,000 Retained earnings..................2,000Total liabilities andTotal assets..........................$41,000 stockholders' equity...........$ 41,000E4–3 ConcludedX CompanyStatement of Cash FlowsFor the Year EndedCash flows from operating activities:Cash payments for expenses..................................... $ (5,500) Cash flows from investing activities:Purchase of land......................................................... (20,000) Cash flows from financing activities:Cash contributions from owners................................ $ 30,000Proceeds from bank loan........................................... 9,000Payments of cash dividend (500)Net cash flow from financing activities.................. 38,500 Net increase in cash........................................................ $ 13,000 Beginning cash balance.. 0Ending cash balance....................................................... $ 13,000 E4–4Assets = Liabilities + Stockholders' Equity(1) +10,000 + 10,000(2) + 8,000 + 8,000(3) – 3,000 + 3,000 – 6,000(4) +12,000 + 10,000– 2,000(5) – 400 – 400(6) + 7,000 + 1,000– 6,000Total 25,600 13,000 12,600Cathedral EnterprisesIncome StatementFor the Year EndedFees earned.................................................................................................$ 8,000 Expenses......................................................................................................(6,000) Gain on sale of land.....................................................................................1,000 Net income...................................................................................................$ 3,000 E4–4 ConcludedCathedral EnterprisesStatement of Stockholders’ EquityFor the Year EndedContributed RetainedCapital EarningsBeginning balance $ 0 $ 0Net income 3,000Dividends (400)Stockholder contribution 10,000 ______Ending balance $ 10,000 $ 2,600Cathedral EnterprisesBalance SheetAs ofAssets Liabilities and Stockholders' EquityCash ....................................$ 17,600 Misc. payable.........................$ 3,000Receivables..........................2,000 Long-term note......................10,000Land ....................................6,000 Contributed capital.................10,000Retained earnings..................2,600Total liabilities andTotal assets..........................$25,600 stockholders' equity...........$25,600Cathedral EnterprisesStatement of Cash FlowsFor the Year EndedCash flows from operating activities:Cash collected from customers.................................. $ 6,000Cash paid for expenses.............................................. (3,000)Net cash increase from operating activities.......... $ 3,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 7,000Cash paid for land...................................................... (2,000)Net cash increase from investing activities........... 5,000 Cash flows from financing activities:Contributions from stockholders................................ $ 10,000Dividends paid to stockholders (400)Net cash increase from financing activities........... 9,600 Increase in cash.............................................................. $ 17,600Beginning cash balance 0Ending cash balance....................................................... $ 17,600Note: Even though $12,000 worth of land was purchased only $2,000 is shown on this statement because the balance ($10,000) was paid for with a promise to pay cash in the future (loan). So only $2,000 of cash was used this year.E4–5(1) This financial event does not have accounting significance. Entries are made to record financialevents that affect the company's current financial condition. In this case, the new contract will affect the company's future financial condition by affecting the dollar value of future events as the new contract is implemented. Simply signing the contract does not affect the company's current financial position.(2) This financial event does have accounting significance. The receipt of cash in exchange forissuing debt affects the company's current financial position by increasing both the amount of cash the company has and the obligations the company has to other entities. Thus, an entry is necessary, and the entry would be:Cash (+A)................................................................................. 200,000Bonds Payable (+L)............................................................ 200,000 Issued bonds.(3) This event does not have accounting significance. The retirement of an official does notinfluence the company's current financial position.(4) This financial event does have accounting significance. Receiving cash from a customer wouldchange the company's current financial position. The entry would be:Cash (+A)................................................................................. 10,000Accounts Receivable (–A).................................................. 10,000 Collected cash from customers.(5) This financial event does have accounting significance. Payment of a liability will change acompany's current financial position by decreasing both the amount of cash the company has and the company's obligations to other entities. The entry would be:Accrued Interest Payable (–L).................................................. 1,000Cash (–A)........................................................................... 1,000 Paid interest previously incurred.(6) This financial event does not have accounting significance. Long-lived assets are reported atoriginal cost less accumulated depreciation. Increases in market value above the reported amounts are not reported because market values on long-lived assets are not objective (i.e., are not reliable).(7) This financial event does have accounting significance. The purchase of an insurance policyrepresents a change in the company's financial position because the company has less cash and because the company has acquired the benefit of insurance coverage. However, the value of the policy has no influence on the company. The appropriate entry would be:Prepaid Insurance (+A)............................................................ 1,500Cash (–A)........................................................................... 1,500 Purchased insurance coverage.(8) This financial event does not have accounting significance. Simply placing an order does notaffect a company's financial position. That is, the company has not experienced a change in the amount of cash it has, the amount it owes other entities, and so forth. The company's position does not change until it legally owns the goods.E4–6Account Financial Statement Accounting EquationFlight Equipment Balance Sheet AssetsPassenger Revenue Income Statement Owners’ EquityRetained Earnings Balance Sheet Owners’ EquityNotes Payable Balance Sheet LiabilitiesInterest Expense Income Statement Owners’ EquityAccounts Receivable Balance Sheet AssetsDividends Balance Sheet Owners’ EquityPrepaid Expenses Balance Sheet AssetsAccounts Payable Balance Sheet LiabilitiesCommon Stock Balance Sheet Owners’ EquityFuel Expense Income Statement Owners’ EquityOther Revenues Income Statement Owners’ EquityShort-Term Investments Balance Sheet AssetsDepreciation Expense Income Statement Owners’ EquityGain - Sale of Investment Income Statement Owners’ EquityE4–7Bristol-Myers SquibbIncome StatementFor the Year Ended December 31, 2002Revenue:Sales........................................................................... $18,106Loss on sales of business (30)Total revenue......................................................... $ 18,076 Expenses:Cost of goods sold...................................................... $ 6,532Selling and adm. Expense.......................................... 4,124Advertising and product expense............................... 1,143Research and dev. expense....................................... 2,206Other expenses.......................................................... 1,934Total expenses....................................................... 15,939 Net income...................................................................... $ 2,137 E4–7 ConcludedBristol-Myers SquibbBalance SheetAs of December 31, 2002Assets Liabilities and Stockholders' EquityCash and equivalents...........$ 2,367 Accounts payable...................$ 1,551 Marketable securities...........1,622Accounts receivable.............2,968 Accrued payables..................5,087 Other current assets.............3,103 Short-term borrowings...........1,379Other current liabilities (470)Property, plant and equipment 5,334 Long-term liabilities................7,779Other noncurrent assets.......9,628 Stockholders’ equity...............8,756Total liabilities andTotal assets..........................$ 25,022 stockholders’ equity $ 25,022Bristol-Myers SquibbStatement of Cash FlowsFor the Year Ended December 31, 2002Cash flows from operating activities:Net income................................................... $ 2,137Adjustments:Total adjustments.................................... (1,192)Net cash increase (decrease)due to operating activities................... $ 945 Cash flows from investing activities:Net cash increase (decrease) due toinvesting activities............................... (2,030) Cash flows from financing activities:Net cash increase (decrease) due tofinancing activities............................... (1,117) Increase in cash balance.................................. $ (2,202)Beginning cash balance.................................... 4,569Ending cash balance......................................... $ 2,367The company appears to be in very good financial condition. The company is very profitable with a 12% net income margin ($2,137/$18,106). The company has an extremely strong balance sheet with very good liquidity; working capital is $1,573 ($10,060 - $8,487).E4–8a. Ending cash = Beginning cash + Cash inflows – Cash outflows= $9,000 + $133,500 – $99,500= $43,000Note: Since Cash is an asset, cash inflows are recorded on the debit, or left-hand side of the T account, and cash outflows are recorded on the credit, or right-hand side of the Taccount.b.Miller ManufacturingStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collections from customers............................... $ 95,000Payment of salaries.................................................... (26,500)Payment of miscellaneous expenses......................... (13,000)Payment of rent.......................................................... (7,000)Payment of interest..................................................... (3,000)Net cash increase from operating activities.......... $ 45,500 Cash flows from investing activities:Proceeds from sale of land........................................ $ 7,500Purchase of long-term investments........................... (10,000)Purchase of equipment.............................................. (24,000)Net cash decrease from investing activities.......... (26,500) Cash flows from financing activities:Proceeds from issuance of common stock................ $ 15,000Proceeds from borrowing........................................... 16,000Payment of bank loan................................................. (12,000)Payment of dividends................................................. (4,000)Net cash increase from financing activities........... 15,000 Increase (decrease) in cash balance.............................. $ 34,000 Beginning cash balance.................................................. 9,000 Ending cash balance....................................................... $ 43,000E4–9a.(1) Cash (+A)........................................................................... 15,000Common Stock (+SE)................................................... 15,000 Issued common stock.(2) Cash (+A)........................................................................... 4,000Fees Earned (R, +SE)................................................... 4,000 Sold services for cash.(3) Wage Expense (E, –SE).................................................... 1,600Cash (–A)...................................................................... 1,600 Incurred and paid wages.(4) Investment in Land (+A)..................................................... 9,000Cash (–A)...................................................................... 9,000Purchased land as an investment.(5) Dividends (–SE)................................................................. 2,000Cash (–A)...................................................................... 2,000 Declared and paid dividend.(6) Cash (+A)........................................................................... 3,500Land (–A)....................................................................... 3,000Gain on Sale of Land (Ga, +SE) (500)Sold land.(7) Interest Expense (E, –SE) (600)Note Payable (+L) (900)Cash (–A)...................................................................... 1,500 Made principal and interest payment.(8) Miscellaneous Expenses (E, –SE)..................................... 1,800Cash (–A)...................................................................... 1,800 Incurred and paid miscellaneous expenses.b.E4–9 Concludedc.Small and AssociatesStatement of Cash FlowsFor the Month Ended January 31, 2006Cash flows from operating activities:Collections from customers........................................ $ 4,000Payment of wages...................................................... (1,600)Payment of interest (600)Payment of miscellaneous expenses......................... (1,800)Net cash decrease from investing activities.......... $ 0 Cash flows from investing activities:Proceeds from sale of land........................................ $ 3,500Purchase of land......................................................... (9,000)Net cash decrease from investing activities.......... (5,500)Cash flows from financing activities:Proceeds from issuance of stock............................... $15,000Repayment of note (900)Dividend payment....................................................... (2,000)Net cash increase from financing activities........... 12,100 Increase in cash balance................................................ $ 6,600 Beginning cash balance.................................................. 5,000 Ending cash balance....................................................... $ 11,600E4–10a. Assets = Liabilities + Stockholders' EquityAccounts Notes Contributed Retained Cash + Receivable + Land = Payable + Capital + Earnings(1) + 12,000 +12,000(2) + 5,000 + 5,000(3) – 10,000 + 10,000(4) – 5,000 – 5,000(5) + 10,000 +4,000 + 14,000(6) – 4,000 – 4,000(7) + 2,800 – 3,000 – 200(8) – 2,200 – 2,200 Total 8,600 4,000 7,000 5,000 12,000 2,600Ed's Lawn ServiceIncome StatementFor the Year Ended December 31, 2006Revenue.......................................................................... $14,000 Rent expense.................................................................. (5,000) Miscellaneous expense................................................... (4,000) Loss on sale of land.. (200)Net income...................................................................... $ 4,800Ed's Lawn ServiceStatement of Stockholders’ EquityFor the Year Ended December 31, 2006Contributed RetainedCapital EarningsBeginning balance, January 1, 2006 $ 0 $ 0Net income 4,800Dividends (2,200)Stockholder contribution 12,000 ______Ending balance, December 31, 2006 $ 12,000 $ 2,600Ed's Lawn ServiceBalance SheetAs of December 31, 2006Assets Liabilities and Stockholders' EquityCash ....................................$ 8,600 Notes payable........................$ 5,000 Accounts receivable.............4,000 Contributed capital.................12,000 Land ....................................7,000 Retained earnings..................2,600Total liabilities andTotal assets..........................$19,600 stockholders' equity...........$ 19,600E4–10 ContinuedEd's Lawn ServiceStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collected from customers.................................. $ 10,000Rent payments on lawn equipment............................ (5,000)Payment of miscellaneous expenses......................... (4,000)Net cash increase from operating activities.......... $ 1,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 2,800Cash paid for land...................................................... (10,000)Net cash decrease from investing activities.......... (7,200) Cash flows from financing activities:Stockholder contributions........................................... $ 12,000Proceeds from bank loan........................................... 5,000Dividend payments..................................................... (2,200)Net cash increase from financing activities........... 14,800 Increase in cash.............................................................. $ 8,600 Beginning cash balance.. 0Ending cash balance....................................................... $ 8,600b.(1) Cash (+A)........................................................................... 12,000Contributed Capital (+SE)............................................. 12,000 Collected cash from stockholders.(2) Cash (+A)........................................................................... 5,000Notes Payable (+L)........................................................ 5,000 Borrowed cash from bank.(3) Land (+A)........................................................................... 10,000Cash (–A)...................................................................... 10,000 Purchased land.(4) Rent Expense (E, –SE)...................................................... 5,000Cash (–A)...................................................................... 5,000 Incurred and paid rent expense.(5) Cash (+A)........................................................................... 10,000Accounts Receivable (+A)................................................. 4,000Fees Earned (R, +SE)................................................... 14,000 Rendered services.(6) Miscellaneous Expenses (E, –SE)..................................... 4,000Cash (–A)...................................................................... 4,000 Incurred and paid miscellaneous expenses.E4–10 Continued(7) Cash (+A)........................................................................... 2,800Loss on Sale of Land (Lo, –SE) (200)Land (–A)....................................................................... 3,000 Sold land.(8) Dividends (–SE)................................................................. 2,200Cash (–A)...................................................................... 2,200 Declared and paid cash dividend.*The Ending Balance in the Retained Earnings account is derived by the following formula: Beginning Balance + Revenues – Expenses – Dividends.For a check, refer to the statement of retained earnings.E4–10 ConcludedEd's Lawn ServiceIncome StatementFor the Year Ended December 31, 2006Revenue................................................................................................. $ 14,000 Rent expense......................................................................................... (5,000) Miscellaneous expense.......................................................................... (4,000) Loss on sale of land. (200)Net income............................................................................................. $ 4,800Ed's Lawn ServiceStatement of Stockholders’ EquityFor the Year Ended December 31, 2006Contributed RetainedCapital EarningsBeginning balance, January 1, 2006 $ 0 $ 0Net income 4,800Dividends (2,200)Stockholder contribution 12,000 _____Ending balance, December 31, 2006 $ 12,000 $ 2,600Ed's Lawn ServiceBalance SheetAs of December 31, 2006Assets Liabilities and Stockholders' EquityCash .................................... $ 8,600 Notes payable........................ $ 5,000 Accounts receivable.............4,000 Contributed capital................. 12,000 Land ....................................7,000 Retained earnings.................. 2,600Total liabilities andTotal assets..........................$19,600 stockholders' equity........... $19,600Ed's Lawn ServiceStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collected from customers.................................. $ 10,000Rent payments on lawn equipment............................ (5,000)Payment of miscellaneous expenses......................... (4,000)Net cash increase from operating activities.......... $ 1,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 2,800Cash paid for land...................................................... (10,000)Net cash decrease from investing activities.......... (7,200) Cash flows from financing activities:Stockholder contributions........................................... $ 12,000Proceeds from bank loan........................................... 5,000Dividend payments..................................................... (2,200)Net cash increase from financing activities........... 14,800 Increase in cash.............................................................. $ 8,600 Beginning cash balance.. 0Ending cash balance....................................................... $ 8,600E4–11a. Ending cash balance = $8,000 + $109,500 – $90,000 = $27,500b.Holcomb ManufacturingStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collections from customers............................... $ 74,000Payments for inventory............................................... (34,000)Payment of wages...................................................... (16,000)Payment of administrative expenses......................... (12,000)Payment of interest..................................................... (3,000)Net cash increase due to operating activities........ $ 9,000 Cash flows from investing activities:Proceeds from long-term investments....................... $ 12,500Purchase of equipment.............................................. (11,000)Net cash increase due to investing activities........ $ 1,500 Cash flows from financing activities:Proceeds from issuance of common stock................ $ 14,000Proceeds from borrowing........................................... 9,000Repayment of bank loan............................................ (10,000)Payment of dividends................................................. (4,000)Net cash increase due to financing activities........ 9,000 Increase in cash balance................................................ $ 19,500 Beginning cash balance.................................................. 8,000 Ending cash balance....................................................... $ 27,500 E4–12a. (1) The entry is to record rent incurred but not yet paid.(2) The entry is to record the expiration of a previously purchased insurance policy.(3) The entry is to record the expiration of a portion of a fixed asset cost.(4) The entry is to record interest revenue earned but not yet collected.(5) The entry is to record the expiration of a deferred revenue.b. (1) Accrual adjusting entry(2) Cost expiration adjusting entry(3) Cost expiration adjusting entry(4) Accrual adjusting entry(5) Cost expiration adjusting entryE4–13(1) Accrual adjusting entry (7) Investing cash flow(2) Operating cash flow (8) Cost expiration adjusting entry(3) Financing cash flow (9) Operating cash flow(4) Cost expiration adjusting entry (10) Cost expiration adjusting entry(5) Cost expiration adjusting entry (11) Operating cash flow(6) Operating cash flow (12) Cost expiration adjusting entry。

会计英文词汇

AccountAccounting systemAmerican Accounting Association American Institute of CPAsAuditBalance sheetBookkeepkingCash flow prospectsCertificate in Internal Auditing Certificate in Management Accounting Certificate Public AccountantCost accountingExternal usersFinancial accountingFinancial Accounting Standards Board Financial forecastGenerally accepted accounting principles General-purpose information Government Accounting OfficeIncome statementInstitute of Internal AuditorsInstitute of Management Accountants IntegrityInternal auditingInternal control structureInternal Revenue ServiceInternal usersManagement accountingReturn of investmentReturn on investmentSecurities and Exchange Commission Statement of cash flowStatement of financial positionTax accountingAccounting equationArticulationAssetsBusiness entityCapital stockCorporationCost principleCreditorDeflationDisclosureExpensesFinancial statementFinancial activitiesGoing-concern assumptionInflationInvesting activitiesLiabilitiesNegative cash flowOperating activitiesOwners equityPartnershipPositive cash flowRetained earningRevenueSole proprietorshipSolvencyStable-dollar assumptionStockholdersStockholders equityWindow dressing（1）会计与会计理论accountingDecision MakerInvestorShareholderCreditorFinancial AccountingManagement AccountingCost AccountingPrivate AccountingPublic AccountingCPA( Certified Public Accountant )IASC (International Accounting Standards Committee) AICPA(American Institute of Certified Public Accountants) FASB (Finacial accounting standard board)IMA (Institute of Management Accountants)AAA (American Accounting Association )IRS (Internal Revenue Service)ProprietorshipPartnershipCorporationAccounting ObjectivesAccounting AssumptionsAccounting ElementsAccounting PrinciplesAccounting ProceduresFinancial StatementsFinancial AnalysisSeparate entity AssumptionUnit-of-measure AssumptionContinuity（Going-concern） Assumption Time-period AssumptionAssetLiabilityOwners EquityRevenueExpenseIncomeLossHistorical Cost PrincipleRevenue PrincipleMatching PrincipleFull-disclosure （Reporting） Principle Objective PrincipleConsistent PrincipleComparability PrincipleMateriality PrincipleConservatism PrincipleAccrual BasisCash BasisFinancial ReportCurrent assetslong-term assetsCurrent LiabilitiesLong-term LiabilitiesContributed CapitalRetained Earning（2）会计循环 Accounting Procedure/Accounting Cycle Accounting information SystemLedgerAccount subjectJournal entrySource DocumentJournalGeneral LedgerSubsidiary LedgerTrial BalanceCash receipt journalCash disbursements journalSales JournalPurchase JournalGeneral JournalWorksheetAdjusting entriesClosing entries（3）现金与应收帐款 CashCash in bankCash in handCurrent assetsSinking fundImprest petty cashCheck（cheque）Bank statementBank reconciliation statement Outstanding depositOutstanding checkVouchers payableAccount receivableNote receivableF.O.B shipping pointF.O.B destination pointTrade discountCash discountSales return and allowanceBad debt expenseAllowance methodBad debt allowanceIncome statement approachBalance sheet approachAging analysis methodDirect write-off methodInterest bearing noteNon-interest bearing noteMakerPayeePrincipalInterest rateMaturity datePromissory noteDiscountEndorseProtest fee（4）存货 InventoryMerchandise inventoryFinished goods inventoryWork in process inventoryRaw materials inventoryF.O.B shipping pointF.O.B destinationConsignmentConsignorConsigneePeriodic inventoryPerpetual inventoryPurchasePurchase allowance and discounts Inventory overages and shortages Specific identificationWeighted averageFirst-in, first-out or FIFOLost-in, first-out or LIFOMoving averageLower of cost or market or LCM Market valueReplacement costNet realizable valueUpper limitLower limitGross margin methodRetail methodCost ratio（5）长期投资 Long-term investmentInvestment on stocksInvestment on bondsCost methodEquity methodConsolidation methodDeclaration dateDate of recordEx-dividend datePayment dateFace value, Par valueDiscount on bondsPremium on bondsContract interest rate, stated rate Market interest ratio, Effective rateCommon StockPreferred StockCash dividendsStock dividendsLiquidating dividendsMaturity dateMaturity valueStraight-Line method of amortization Effective-interest method of amortization（6）固定资产Plant assets or Fixed assetsOriginal valueExpected useful lifeEstimated residual valueDepreciation expenseAccumulated depreciationCarrying valueDepreciation costNet valueConstruction-in-processWear and tearObsolescenceStraight-line method （SL）Units-of-production method （UOP） Accelerated depreciation methodDouble-declining balance method （DDB） Sum-of-the-years-digits method （SYD） Trade inOperating leaseCapital leaseBargain purchase option （BPO）Off-balance-sheet financingMinimum lease payments（7）无形资产Intangible assetsPatentsTrademarks, Trade namesCopyrightsFranchisesGoodwillOrganization costLeaseholdAmortization－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（8）流动负债LiabilityCurrent liabilityAccount payableNotes payableDiscount notesCurrent maturities of long-term liabilitiesDividends payablePrepayments by customersRefundable depositsAccrual expensevalue added taxBusiness taxIncome tax payableBonuses payableEstimated liabilities under product warranties Premiums, coupons and trading stampsContingencyContingentLoss contingenciesGain contingenciesPermanent differenceTiming differenceTaxes payable methodTax effect accounting methodDeferred income tax liability method－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（9）长期负债Long-term LiabilitiesBonds payableSecured BondsMortgage BondsGuaranteed BondsDebenture BondsTerm BondsSerial BondsConvertible BondsCallable BondsRedeemable BondsRegistered BondsCoupon BondsOrdinary BondsIncome BondsNominal rateActual rateEffective ratePremiumDiscountPar valueStraight-line methodEffective interest methodRepayment at maturityRepayment at advanceSinking fundLong-term notes payableMortgage loan－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（10）业主权益EquityOwners equityStockholders equityContributed capitalPaid-in capitalCapital stockCapital surplusRetained earningsAuthorized capital stockIssued capital stockOutstanding capital stockTreasury stockCommon stockPreferred stockCumulative preferred stockNoncumulative preferred stockFully participating preferred stockPartially participating preferred stockNonpartially participating preferred stockIssuance for cashIssuance for noncash considerationLump-sum sales of stockIssuance costCost methodPar value methodDonated capitalDistribution of earningsDividendDividend policyDate of declarationDate of recordEx-dividend dateDate of paymentCash dividendStock dividendappropriation－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（11）财务报表Financial StatementBalance SheetIncome StatementAccount FormReport FormPrepareWorksheetMulti-stepSingle-step－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-（12）财务状况变动表SCFP.Cash Basis（现金流量表）SCFP.Working Capital Basis（资金来源与运用表）Working CapitalAll-resources conceptDirect exchangesNormal operating activitiesFinancing activitiesInvesting activities－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-（13）财务报表分析Analysis of financial statementsComparative financial statementsTrend percentageRatiosEarnings per share of common stockDividend yield ratioPrice-earnings ratioBook value per share of common stock Return on investmentReturn on total assetYield rate on bondsNumber of times interest earnedDebt ratioYield rate on preferred stockWorking CapitalTurnoverInventory turnoverAccounts receivable turnoverCurrent ratioQuick ratioAcid test ratio（14）合并财务报表Consolidated financial statements MergerConsolidationParent companySubsidiary companyMinority interestPooling of interestCombination by purchaseEquity methodCost method－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（15）物价变动中的会计计量Price-level changes accountingGeneral price-level accountingPurchasing-power accountingConstant dollar accountingHistorical costCurrent value accountingCurrent costReplacement costPrice-level indexGross national product implicit price deflator （or GNP deflator） Consumer price index （or CPI）Wholesale price indexMonetary assetsMonetary liabilitiesPurchasing-power gains or lossesHolding gains or lossesUnrealized holding gains or lossesConstant dollar and current cost accountingaccounts payableaccounts payableAccounts Payableaccounts payable-related partiesAccounts Prepaymentaccounts receivableaccounts receivableAccounts Receivableaccounts receivable-related partiesAccounts Received in Advanceaccrued expensesaccrued interest payableAccrued Interest PayableAccrued Interest Receivableaccrued liabilities for land value increment taxaccrued payrollaccrued pension liabilitiesaccrued pension liabilitiesaccrued rent payableaccrued taxes payable-otheraccrued VAT (value added tax）/business tax payable Accumulated AmortizationAccumulated Depletionaccumulated depletion-natural resourcesaccumulated depreciation-assets leased to others accumulated depreciation-buildingsaccumulated depreciation-land improvements accumulated depreciation-leased assetsaccumulated depreciation-leasehold improvements accumulated depreciation-machineryaccumulated depreciation-miscellaneous property,plant, and equipmentaccumulated profit or lossAccumulative DepreciationAccumulative Depreciation of Productive Biological Assets additional paid-in capitaladditional paid-in capital from investee under equity methodadditional paid-in capital-treasury stock transactions advance receiptsadvances to employeesadvertisement expense, advertisementadvertisement expense, advertisementagency costsagency costsagency revenueagency revenueagency revenueAllocation of Profitsallowance for excess of cost over market value of long-term investmentsallowance for reduction of inventory to market allowance for reduction of inventory to market allowance for reduction of short-term investment tomarketallowance for uncollectible accounts-accounts receivable allowance for uncollectible accounts-long-term notes, accounts and overdue receivablesallowance for uncollectible accounts-notes receivable allowance for uncollectible accounts-other receivables Amortized Compensation ExpensesAmortized Deposit for DutyAmortized Reinsurance ExpendituresAppropriation of Deposit for DutyAppropriation of Deposit for Undue DutyArbitrage ToolsArbitraged ItemsassetsassetsAssets Devaluationassets leased to othersassets leased to othersassets leased to others-incremental value from revaluationBad Debit ReserveBalance of Materialsbank acceptanceBank Depositbank loanbank overdraftBiological Assets for Commonwealbonus payableBorrowings from Banks and Other Financial Institutions Borrowings from the Central Bankbuildingsbuildingsbuildings-revaluation incrementsBusiness ReputationBusiness Tax and Surchargesby-productscapitalcapitalcapitalcapital collected in advanceCapital for Debt PaymentCapital in Independent AccountsCapital in Vicarious BusinessCapital Surpluscapital surplus from assets revaluation capital surplus from assets revaluation capital surplus from business combination capital surplus from business combination capital surplus from gain on disposal of assets capital surplus from gain on disposal of assets capital-common stockcapital-preferred stockcash and cash equivalentscash equivalentscash in bankscash in transitcash on handCash on Handcash surrender value of life insurance casualty losscertificate of deposit-restrictedcertificate of deposit-restrictedcharges on purchased materialcharges on purchased merchandise commercial paper payablecommission (expense)commission (expense)Commission ExpensesCommission Incomecommission revenue/incomeCommodity StocksCompensation Expensescompensation payable to directors and supervisors computer softwarecomputer software costconsigned finished goodsconsigned goodsConstruction in Processconstruction in progressconstruction in progress and prepayments for equipment Consumptive Biological Assetscontingency fundcontingency reservecopyrightcopyrightcorporate bonds payablecorporate bonds payablecorporate bonds payable-current portioncost of goods soldcost of goods soldcost of goods soldcumulative effect of changes in accounting principles cumulative effect of changes in accounting principles cumulative effect of changes in accounting principles cumulative translation adjustmentcumulative translation adjustmentscurrent account with otherscurrent account with otherscurrent assetscurrent liabilitiesdeferred assetsdeferred bond issuance costsdeferred foreign exchange gain deferred foreign exchange losses deferred income tax assetsdeferred income tax assetsDeferred Income Tax Assetsdeferred income tax liabilitiesdeferred income tax liabilitiesDeferred Income Tax Liabilities deferred liabilitiesdeferred pension costsDeferred Profitsdeferred revenuedepletable assetsdepletable assetsDeposit for Capital Recognizance Deposit for Duty of Reinsurance Deposit for RecognizanceDeposit for Undue Duty of Reinsurance Deposit in the Central BankDeposit of Capital DiscountedDeposit of the InsuredDeposit Received for Recognizance Deposit Reservation for Balance deposits receiveddepreciation expensedepreciation expensedepreciation expensedepreciation expenseaDerivative ToolsDifference between Purchase and Sales of Commodities direct labordirect labordiscount on forward exchange contractdiscount on short-term notes and bills payable discounted notes receivableDisposal of Fixed AssetsDividend Expenses for The Insureddividend payableDividend PayableDividend Payable for ReinsuranceDividend Payable for The InsuredDividend Receivabledividends incomedonated surplusdonated surplusdonation (expense)donation (expense)donation incomeDue from Placements with Banks and Other Financial Institutions Due to Placements with Banks and Other Financial Institutions earned revenue receivableEarned Surplusemployee benefits/welfareemployee benefits/welfareemployee benefits/welfareemployee benefits/welfareEngineer MaterialEngineering ConstructonEngineering Settlemententertainment (expense)entertainment (expense)entertainment (expense)equity adjustmentservice costsestimated accrued land value incremental tax pay-able Estimated Liabilitiesestimated warranty liabilitiesexcess VAT paid (or overpaid VAT)Exchange Gain or LossExpensive Metalsextraordinary gain or lossextraordinary gain or lossextraordinary gain or lossFinancial Assets Available for SaleFinancial Assets Sold for RepurchaseFinancial Leasing AssetsFinancing Costsfinished goodsFixed AssetsForeign Exchange Buy and Saleforeign exchange gainforeign exchange gainforeign exchange lossforeign exchange lossforward exchange contract payableforward exchange contract payable-foreign currencies forward exchange contract receivableforward exchange contract receivable-foreign currencies franchisefranchiseFull-year Profitfund for improvement and expansionfundsfunds and long-term investmentsgain from price recovery of inventorygain on disposal of assetsgain on disposal of assetsgain on disposal of investmentsgain on disposal of investmentsgain on market price recovery of short-term investment gain on physical inventorygain on reversal of bad debtsgain(loss) from discontinued operationsgain(loss) from disposal of discontinued segmentgain(loss) from disposal of discontinued segments gency costsgeneral & administrative expensesgeneral & administrative expensesGeneric Risk Reservegoods in transitGoods in Transitgoodwillgoodwillguarantee deposit receivedHeld-To-Maturity Investmentidle assetsidle assetsimprovement and expansion reserveIncome on InvestmentIncome Taxincome tax expense ( or benefit)income tax expense (or benefit)income tax expense (or benefit)income tax expense (or benefit)income tax payableincome tax refund receivableincome taxes payableincome(loss) from operations of discontinued segment income(loss) from operations of discontinued segments indirect laborindirect materialsinstallment accounts receivableinstallment cost of goods soldinstallment sales revenueinsurance (expense)insurance (expense)insurance (expense)insurance (expense)intangible assetsIntangible Assetsinterest expenseinterest expenseInterest ExpensesInterest Incomeinterest revenueinterest revenue/incomeinventoriesinvestment incomeinvestment income recognized under equity method investment lossinvestment loss recognized under equity method Investment Real Estatelandlandland improvementsland improvementsland improvements-revaluation incrementsland-revaluation incrementsleased assetsleased assetsleasehold improvementsleasehold improvementsleasehold improvementsLeasehold Incomelegal reservelegal reserveLendings to Banks and Other Financial Institutions liabilitiesliabilitiesLiabilities from Vicarious BusinessLiabilities of Capital DiscountedLiabilities of Independent AccountsLiquidation of Inter Bank BusinessLoan ValueLoansLoans Impairment Reservelong-term accounts payableLong-term Accounts Payablelong-term accounts receivableLong-term Accounts Receivablelong-term bond investmentsLong-term BondsLong-term Borrowingslong-term capital lease liabilitiesLong-term Deferred ExpensesLong-term Equity Investmentlong-term equity investmentslong-term investmentslong-term liabilitieslong-term liabilities-current portionlong-term loans payablelong-term loans payable-banklong-term loans payable-current portionlong-term loans payable-employeeslong-term loans payable-otherlong-term loans payable-ownerslong-term loans payable-related partieslong-term notes , accounts and overdue receivableslong-term notes and accounts payablelong-term notes and accounts payable due within one year or one operating cycleLong-term notes and accounts payable-related parties long-term notes and accounts payables to related parties-current portionlong-term notes payablelong-term notes receivablelong-term notes,accounts and overdue receivables-related partieslong-term prepaid insurancelong-term prepaid rentlong-term real estate investmentsloss for market price decline and obsolete and slow-moving inventoriesloss on disposal of assetsloss on disposal of assetsloss on disposal of investmentsloss on disposal of investmentsloss on export salesloss on physical inventoryloss on uncollectible accountsloss on uncollectible accountsloss on work stoppagesmachinerymachinery and equipmentmachinery-revaluation incrementsManaging CostsManufacturing Expendituresmanufacturing overheadmanufacturing overhead-outsourced Marketing Costsmaterial purchase allowancesmaterial purchase returnsmaterial purchasedmaterials and supplies in transitMaterials for Consigned Processing Materials in Transitmaterials purchasedmeal (expenses)meal (expenses)meal (expenses)meal (expenses)Mechanical Operationsmerchandise inventoryminority interestminority interestminority interestminority interest incomeminority interest incomeminority interest incomemiscellaneous assetsmiscellaneous assets-othermiscellaneous liabilitiesmiscellaneous liabilities-other miscellaneous property, plant, and equipmentmiscellaneous property, plant, and equipment miscellaneous property,plant,and equipment-revaluation incrementsnatural resourcesnatural resources-revaluation incrementsnet income or loss for current periodnet loss not recognized as pension costnet loss not recognized as pension costsNonoperating Expensesnon-operating expensesnon-operating revenuenon-operating revenue and expenses,other income(expense)nonrecurring gain or lossNonrevenue Receiptnotes payablenotes payableNotes Payablenotes payable-related partiesnotes receivablenotes receivableNotes Receivablenotes receivable-related partiesoffice suppliesoffice suppliesoffice suppliesoffice supplies (expense)office supplies (expense)Oil and Gas Assetsoperating costsoperating expensesoperating revenueorganization costsorganization costsOther Accounts PayableOther Accounts Receivableother accrued expenses payableother additional paid-in capitalother advance receiptsother assetsOther Business Incomeother cash and cash equivalentsother current assetsother current assets-otherother current liabilitiesother current liabilities-othersother deferred assetsother deferred liabilitiesother fundsother general and administrative expenses other intangible assets-otherother intangiblesother liabilitiesother long-term investmentsother long-term liabilitiesother long-term liabilities-current portion other long-term liabilities-otherother long-term payablesother long-term receivablesother manufacturing expensesOther Monetary Capitalother non-operating expensesother non-operating expenses-other other non-operating revenueother non-operating revenue-other items other notes payableother notes receivableOther Operating Costother operating costsother operating costs-otherother operating costs-otherother operating revenueother operating revenueother operating revenue-otherother payablesother payables-otherother payables-related partiesother prepaid expensesother prepaymentsother receivablesother receivables-otherother receivables-related partiesother research and development expenses other selling expensesother short-term notes and bills payable other special reserveoverdue receivablesowners' equityowners' current accountowners' equityowners'(stockholders') current accountpacking expensesPaid-in Capitalpaid-in capital in excess of parpaid-in capital in excess of par-common stock paid-in capital in excess of par-preferred stock patentspatentsPayables on equipmentpayables on land and building purchased payment on behalf of otherspayroll expensepayroll expensepayroll expensePayroll Payablepension fundpetty cash/revolving fundspostage (expenses)postage (expenses)postage (expenses)postage (expenses)Premium Incomepremium on forward exchange contract premium(discount) on corporate bonds payableprepaid expensesprepaid income taxprepaid insuranceprepaid payrollprepaid pension costprepaid rentsprepayment for equipmentprepayment for purchasesprepaymentsPrime Operating CostPrime Operating Revenueprior period adjustmentsProcurement of MaterialsProduction CostsProductive Biological Assetsprofessional service feesProfit and Loss Adjustment of Former Years Profit and Loss from Fair Value Changes property , plant, and equipment Prospecting Costspurchase expensespurchase returnspurchasespurchasesraw materialsRaw Materialsreceipts under custodyReceivable Deposit for Duty of ReinsuranceReceivable Deposit for Undue Duty of Reinsurance Receivable Deposit from the InsuredReceivings from Vicariously Cashed Securities Receivings from Vicariously Sold Securities Receivings from Vicariously Traded Securities redemption fund (or sinking fund)Redemptory Monetary Capital for Sale refundable depositrefundable depositsrefundable depositsReinsurance Accounts ReceivableReinsurance ExpensesReinsurance PremiumReinsurance Premium Incomerent expense, rentrent expense, rentrent expense, rentrent expense, rentrent revenue/incomerepair(s) and maintenance (expense )repair(s) and maintenance (expense)repair(s) and maintenance (expense)repair(s) and maintenance (expense)Research and Development Expenditures research and development expenseresearch and development expensesresearch and development expensesReserve for Fixed Assets ImpairmentReserve for Held-To-Maturity Investment Impairment Reserve for Intangible Assets ImpairmentReserve for Long-term Equity Investment Impairment Reserve For Stock Depreciationretained earnings (accumulated deficit)retained earnings-unappropriated(or accumulated deficit)revenue from sale of scrapsrevenue received in advanceRevolving Materialssales allowancessales discounts and allowancessales returnsales returnsales revenuesales revenuesales revenuesales revenue received in advanceSalvage Value Of Insured PropertiesSavings Absorptionselling expensesselling expensesservice costsservice costsService Costsservice revenueservice revenueservice revenueshipping expenses, freightshipping expenses, freightshipping expenses, freightshipping expenses,freightShort-term Borrowingsshort-term borrowings(debt)short-term borrowings-employeesshort-term borrowings-othershort-term borrowings-ownersshort-term borrowings-related partiesshort-term investmentshort-term investments-beneficiary certificates short-term investments-corporate bondsshort-term investments-government bondsshort-term investments-othershort-term investments-short-term notes and bills short-term investments-stockshort-term notes and bills payableSpecial Accounts Payablespecial reservespecial reserve for redemption of liabilitiesstock dividends to be distributedSubrogation ReceivablessuppliesTax Payabletaxestaxestaxestaxes。

《金融英语听说》Unit5

《金融英语听说》Unit5Unit 5 Financial InstrumentsShort DialogsMultiple ChoiceScripts & AnswersDialog 1M: I don’t know why the presentation of my check for payment is refused by the paying bank.W: Let me have a look. Oh, I see. Your check is written in lead pencil. It is not accepted by any bank. You should write it in ink.M: I see. Thank you very much.W: And your check has no signature by the writer. It is invalid, I think. It is a false check. Are you the named payee? Where did you get the check? You are kidding, aren’t you?M: Don’t get mad, I’m kidding. I only want to know how much you’ve learnt about a check.Question: What do you know about the check mentioned in the conversation? (C)译文男：我不知为什么付款行拒绝了我的支票提示付款。

女：我看看。

哦，我知道了。

您的支票是铅笔填写的。

没有哪家银行会接受这种支票。

您应该用钢笔填写支票。

男：我知道了。

非常感谢。

女：还有，您的支票没有签发人的签名。

这种支票是无效的。

这是一张假支票。

金融会计与分析（Financial Accounting and Analysis）课程大纲说明书

Equity
Recap
Ungraded Quiz
Graded Quiz
3.
A Closer Look at the
Introduction to the week
Income Statement, Cash Flow Statement and
A closer look at the Income Statement and its Elements
Statement of Changes in Equity
Depreciation, Amortisation and Impairment
A Closer look at Cash Flow Statement
Statement of Comprehensive Income and Statement of Changes in Equity
Recap – Week 4
Ratio Analysis Part 2
Recap – Course Summary
Ungraded Quiz
Graded Quiz
Case study - Webinar
TIME COMMITMENT
Course Length
5 Weeks (one week of course orientation and one week of break). Each week is released across the globe on Thursday, 03:30 UTC.
4
Financial Statement
Introduction to the week
Analysis – I
What is Financial Statement Analysis

财务专业术语(中英文对照)

Account 帐户Accounting system 会计系统American Accounting Association 美国会计协会American Institute of CPAs 美国注册会计师协会Audit 审计Balance sheet 资产负债表Bookkeepking 簿记Cash flow prospects 现金流量预测Certificate in Internal Auditing 内部审计证书Certificate in Management Accounting 管理会计证书Certificate Public Accountant注册会计师Cost accounting 成本会计External users 外部使用者Financial accounting 财务会计Financial Accounting Standards Board 财务会计准则委员会Financial forecast 财务预测Generally accepted accounting principles 公认会计原则General-purpose information 通用目的信息Government Accounting Office 政府会计办公室Income statement 损益表Institute of Internal Auditors 内部审计师协会Institute of Management Accountants 管理会计师协会Integrity 整合性Internal auditing 内部审计Internal control structure 内部控制结构Internal Revenue Service 国内收入署Internal users 内部使用者Management accounting 管理会计Return of investment 投资回报Return on investment 投资报酬Securities and Exchange Commission 证券交易委员会Statement of cash flow 现金流量表Statement of financial position 财务状况表Tax accounting 税务会计Accounting equation 会计等式Articulation 勾稽关系Assets 资产Business entity 企业个体Capital stock 股本Corporation 公司Cost principle 成本原则Creditor 债权人Deflation 通货紧缩Disclosure 批露Expenses 费用Financial statement 财务报表Financial activities 筹资活动Going-concern assumption 持续经营假设Inflation 通货膨涨Investing activities 投资活动Liabilities 负债Negative cash flow 负现金流量Operating activities 经营活动Owners equity 所有者权益Partnership 合伙企业Positive cash flow 正现金流量Retained earning 留存利润Revenue 收入Sole proprietorship 独资企业Solvency 清偿能力Stable-dollar assumption 稳定货币假设Stockholders 股东Stockholders equity 股东权益Window dressing 门面粉饰财会名词汉英对照表（1）会计与会计理论会计 accounting决策人 Decision Maker投资人 Investor股东 Shareholder债权人 Creditor财务会计 Financial Accounting管理会计 Management Accounting成本会计 Cost Accounting私业会计 Private Accounting公众会计 Public Accounting注册会计师 CPA Certified Public Accountant国际会计准则委员会 IASC美国注册会计师协会 AICPA财务会计准则委员会 FASB管理会计协会 IMA美国会计学会 AAA税务稽核署 IRS独资企业 Proprietorship合伙人企业 Partnership公司 Corporation会计目标 Accounting Objectives会计假设 Accounting Assumptions会计要素 Accounting Elements会计原则 Accounting Principles会计实务过程 Accounting Procedures财务报表 Financial Statements财务分析Financial Analysis会计主体假设 Separate-entity Assumption货币计量假设 Unit-of-measure Assumption持续经营假设 Continuity（Going-concern） Assumption 会计分期假设 Time-period Assumption资产 Asset负债 Liability业主权益 Owners Equity收入 Revenue费用 Expense收益 Income亏损 Loss历史成本原则 Cost Principle收入实现原则 Revenue Principle配比原则 Matching Principle全面披露原则 Full-disclosure （Reporting） Principle客观性原则 Objective Principle一致性原则 Consistent Principle可比性原则 Comparability Principle重大性原则 Materiality Principle稳健性原则 Conservatism Principle权责发生制 Accrual Basis现金收付制 Cash Basis财务报告 Financial Report流动资产 Current assets流动负债 Current Liabilities长期负债 Long-term Liabilities投入资本 Contributed Capital留存收益 Retained Earning－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（2）会计循环会计循环 Accounting Procedure/Cycle会计信息系统 Accounting information System帐户 Ledger会计科目 Account会计分录 Journal entry原始凭证 Source Document日记帐 Journal总分类帐 General Ledger明细分类帐 Subsidiary Ledger试算平衡 Trial Balance现金收款日记帐 Cash receipt journal现金付款日记帐 Cash disbursements journal销售日记帐 Sales Journal购货日记帐 Purchase Journal普通日记帐 General Journal工作底稿 Worksheet调整分录 Adjusting entries结帐 Closing entries－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（3）现金与应收帐款现金 Cash银行存款 Cash in bank库存现金 Cash in hand流动资产 Current assets偿债基金 Sinking fund定额备用金 Imprest petty cash支票 Check（cheque）银行对帐单 Bank statement银行存款调节表 Bank reconciliation statement在途存款 Outstanding deposit在途支票 Outstanding check应付凭单 Vouchers payable应收帐款 Account receivable应收票据 Note receivable起运点交货价 F.O.B shipping point目的地交货价 F.O.B destination point商业折扣 Trade discount现金折扣 Cash discount销售退回及折让 Sales return and allowance坏帐费用 Bad debt expense备抵法 Allowance method备抵坏帐 Bad debt allowance损益表法 Income statement approach资产负债表法 Balance sheet approach帐龄分析法 Aging analysis method直接冲销法 Direct write-off method带息票据 Interest bearing note不带息票据 Non-interest bearing note出票人 Maker受款人 Payee本金 Principal利息率 Interest rate到期日 Maturity date本票 Promissory note贴现 Discount背书 Endorse拒付费 Protest fee－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（4）存货存货 Inventory商品存货 Merchandise inventory产成品存货 Finished goods inventory在产品存货 Work in process inventory原材料存货 Raw materials inventory起运地离岸价格 F.O.B shipping point目的地抵岸价格 F.O.B destination寄销 Consignment寄销人 Consignor承销人 Consignee定期盘存 Periodic inventory永续盘存 Perpetual inventory购货 Purchase购货折让和折扣 Purchase allowance and discounts存货盈余或短缺 Inventory overages and shortages分批认定法 Specific identification加权平均法 Weighted average先进先出法 First-in, first-out or FIFO后进先出法 Lost-in, first-out or LIFO移动平均法 Moving average成本或市价孰低法 Lower of cost or market or LCM市价 Market value重置成本 Replacement cost可变现净值 Net realizable value上限 Upper limit下限 Lower limit毛利法 Gross margin method零售价格法 Retail method成本率 Cost ratio－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（5）长期投资长期投资 Long-term investment长期股票投资 Investment on stocks长期债券投资 Investment on bonds成本法 Cost method权益法 Equity method合并法 Consolidation method股利宣布日 Declaration date股权登记日 Date of record除息日 Ex-dividend date付息日 Payment date债券面值 Face value, Par value债券折价 Discount on bonds债券溢价 Premium on bonds票面利率 Contract interest rate, stated rate市场利率 Market interest ratio, Effective rate普通股 Common Stock优先股 Preferred Stock现金股利 Cash dividends股票股利 Stock dividends清算股利 Liquidating dividends到期日 Maturity date到期值 Maturity value直线摊销法 Straight-Line method of amortization实际利息摊销法 Effective-interest method of amortization－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-（6）固定资产固定资产 Plant assets or Fixed assets原值 Original value预计使用年限 Expected useful life预计残?nbsp;Estimated residual value折旧费用 Depreciation expense累计折旧 Accumulated depreciation帐面价值 Carrying value应提折旧成本 Depreciation cost净值 Net value在建工程 Construction-in-process磨损 Wear and tear过时 Obsolescence直线法 Straight-line method （SL）工作量法 Units-of-production method （UOP）加速折旧法 Accelerated depreciation method双倍余额递减法 Double-declining balance method （DDB）年数总和法 Sum-of-the-years-digits method （SYD）以旧换新 Trade in经营租赁 Operating lease融资租赁 Capital lease廉价购买权 Bargain purchase option （BPO）资产负债表外筹资 Off-balance-sheet financing最低租赁付款额 Minimum lease payments－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（7）无形资产无形资产 Intangible assets专利权 Patents商标权 Trademarks, Trade names著作权 Copyrights特许权或专营权 Franchises商誉 Goodwill开办费 Organization cost租赁权 Leasehold摊销 Amortization－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（8）流动负债负债 Liability流动负债 Current liability应付帐款 Account payable应付票据 Notes payable贴现票据 Discount notes长期负债一年内到期部分 Current maturities of long-term liabilities应付股利 Dividends payable预收收益 Prepayments by customers存入保证金 Refundable deposits应付费用 Accrual expense增值税 value added tax营业税 Business tax应付所得税 Income tax payable应付奖金 Bonuses payable产品质量担保负债 Estimated liabilities under product warranties赠品和兑换券 Premiums, coupons and trading stamps或有事项 Contingency或有负债 Contingent或有损失 Loss contingencies或有利得 Gain contingencies永久性差异 Permanent difference时间性差异 Timing difference应付税款法 Taxes payable method纳税影响会计法 Tax effect accounting method递延所得税负债法 Deferred income tax liability method－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（9）长期负债长期负债 Long-term Liabilities应付公司债券 Bonds payable有担保品的公司债券 Secured Bonds抵押公司债券 Mortgage Bonds保证公司债券 Guaranteed Bonds信用公司债券 Debenture Bonds一次还本公司债券 Term Bonds分期还本公司债券 Serial Bonds可转换公司债券 Convertible Bonds可赎回公司债券 Callable Bonds可要求公司债券 Redeemable Bonds记名公司债券 Registered Bonds无记名公司债券 Coupon Bonds普通公司债券 Ordinary Bonds收益公司债券 Income Bonds名义利率，票面利率 Nominal rate实际利率 Actual rate有效利率 Effective rate溢价 Premium折价 Discount面值 Par value直线法 Straight-line method实际利率法 Effective interest method到期直接偿付 Repayment at maturity提前偿付 Repayment at advance偿债基金 Sinking fund长期应付票据 Long-term notes payable抵押借款 Mortgage loan－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（10）业主权益权益 Equity业主权益 Owners equity股东权益 Stockholders equity投入资本 Contributed capital缴入资本 Paid-in capital股本 Capital stock资本公积 Capital surplus留存收益 Retained earnings核定股本 Authorized capital stock实收资本 Issued capital stock发行在外股本 Outstanding capital stock库藏股 Treasury stock普通股 Common stock优先股 Preferred stock累积优先股 Cumulative preferred stock非累积优先股 Noncumulative preferred stock完全参加优先股 Fully participating preferred stock部分参加优先股 Partially participating preferred stock非部分参加优先股 Nonpartially participating preferred stock现金发行 Issuance for cash非现金发行 Issuance for noncash consideration股票的合并发行 Lump-sum sales of stock发行成本 Issuance cost成本法 Cost method面值法 Par value method捐赠资本 Donated capital盈余分配 Distribution of earnings股利 Dividend股利政策 Dividend policy宣布日 Date of declaration股权登记日 Date of record除息日 Ex-dividend date股利支付日 Date of payment现金股利 Cash dividend股票股利 Stock dividend拨款 appropriation－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（11）财务报表财务报表 Financial Statement资产负债表 Balance Sheet收益表 Income Statement帐户式 Account Form报告式 Report Form编制（报表） Prepare工作底稿 Worksheet多步式 Multi-step单步式 Single-step－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-（12）财务状况变动表财务状况变动表中的现金基础 SCFP.Cash Basis（现金流量表）财务状况变动表中的营运资金基础 SCFP.Working Capital Basis（资金来源与运用表）营运资金 Working Capital全部资源概念 All-resources concept直接:)业务 Direct exchanges正常营业活动 Normal operating activities财务活动 Financing activities投资活动 Investing activities－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-（13）财务报表分析财务报表分析 Analysis of financial statements比较财务报表 Comparative financial statements趋势百分比 Trend percentage比率 Ratios普通股每股收益 Earnings per share of common stock股利收益率 Dividend yield ratio价益比 Price-earnings ratio普通股每股帐面价值 Book value per share of common stock资本报酬率 Return on investment总资产报酬率 Return on total asset债券收益率 Yield rate on bonds已获利息倍数 Number of times interest earned债券比率 Debt ratio优先股收益率 Yield rate on preferred stock营运资本 Working Capital周转 Turnover存货周转率 Inventory turnover应收帐款周转率 Accounts receivable turnover流动比率 Current ratio速动比率 Quick ratio酸性试验比率 Acid test ratio（14）合并财务报表合并财务报表 Consolidated financial statements吸收合并 Merger创立合并 Consolidation控股公司 Parent company附属公司 Subsidiary company少数股权 Minority interest权益联营合并 Pooling of interest购买合并 Combination by purchase权益法 Equity method成本法 Cost method－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－（15）物价变动中的会计计量物价变动之会计 Price-level changes accounting一般物价水平会计 General price-level accounting货币购买力会计 Purchasing-power accounting统一币值会计 Constant dollar accounting历史成本 Historical cost现行价值会计 Current value accounting现行成本 Current cost重置成本 Replacement cost物价指数 Price-level index国民生产总值物价指数 Gross national product implicit price deflator （or GNP deflator）消费物价指数 Consumer price index （or CPI）批发物价指数 Wholesale price index货币性资产 Monetary assets货币性负债 Monetary liabilities货币购买力损益 Purchasing-power gains or losses资产持有损益 Holding gains or losses未实现的资产持有损益 Unrealized holding gains or losses现行价值与统一币值会计 Constant dollar and current cost accounting。

西方财务会计全英文版第五章课后练习答案_ch05[1]

Chapter 5Short-Term Investments and Receivables Check Points(5 min.) CP 5-1 1. Trading investments are reported at their current marketvalue.2. A trading investment is always a current asset because theinvestor intends to sell the trading investment in the very near future — days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year.(10 min.) CP 5-2 BALANCE SHEETCurrent assets:Short-term trading investments, at market value.. $74,000 INCOME STATEMENTOther revenue and gains (losses):Unrealized loss on investment……………………...$ (6,000)(10 min.) CP 5-3 1. Paid $100,0002. Unrealized Loss on Investment ($100,000 – $98,000)…2,000Short-Term Investment……………………………….. 2,000 Adjusted investment to market value.BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$98,000 INCOME STATEMENTOther revenue (loss):Unrealized loss on investment……………………………$ (2,000)(5 min.) CP 5-4 Jennings, the accountant, should not handle the company’s cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customer’s acc ount receivable as uncollectible.(5 min.) CP 5-5 1. Uncollectible-Account Expense ($900,000 ⨯.01)…..9,000Allowance for Uncollectible Accounts……………9,000 2. Balance sheetAccounts receivable…………………………………$90,000Less Allowance fo r uncollectible accounts…….. (9,000)Accounts receivable, net……………………………$81,000(5-10 min.) CP 5-6 1. Accounts Receivable…………………………………. 800,000Sales Revenue………………………………………800,000 2. Cash………………………………………………………780,000Accou nts Receivable………………………………780,000 3. Allowance for Uncollectible Accounts…………….. 5,000Accounts Receivable……………………………….5,000 4. Uncollectible-Account Expense ($800,000 ⨯.01)… 8,000Allowance for Uncollectible Accounts………….8,000(10 min.) CP 5-7 1.Amount customersowe the company2.Amount Spitzerexpects not tocollect3. and4.BALANCE SHEET:Accounts receivable, net($105,000 –$12,000)…………………………$93,000Amount Spitzerexpects tocollect INCOME STATEMENT:Sales revenue…………………………………...$800,000Uncollectible-account expense………………8,000(5-10 min.) CP 5-8 (a) Accounts Receivable………………………..700,000Sales Revenue…………………………….700,000 (b) Cash…………………………………………….720,000Accounts Receivable…………………….720,000 (c) Allowance for Uncollectible Accounts…..6,000Accounts Receivable…………………….6,000 (d) Uncollectible-Account Expe nse…………..7,000Allowance for Uncollectible Accounts.. 7,000= 7,000(10 min.) CP 5-9 1. and 2.3.BALANCE SHEETAccounts receivable…………………………….$74,000Less Allowance for uncollectible accounts… (9,000)Accounts receivable, net……………………….$65,000(5-10 min.) CP 5-10 a. May 19 Note Receivable —R. Kroll……..100,000Cash………………………………100,000 b. Nov. 19 Cash…………………………………103,000Note Receivable —R. Kroll…..100,000Interest Revenue($100,000 ⨯ .06 ⨯6/12)………3,000(10 min.) CP 5-11 1. Interest for:20X7 ($200,000 ⨯ .09 ⨯8/12)……………….$12,00020X8 ($200,000 ⨯.09)……………………….18,00020X9 ($200,000 ⨯ .09 ⨯4/12)……………….6,0002. Tradewinds Bank has a note receivable and interest revenue.Mike Toby has a note payable and interest expense.3. Payoff at November 30, 20X7:Principal………………………………………….$200,000Interest ($200,000 ⨯ .09 ⨯7/12)………………. 10,500Total……………………………………………….$210,500(10 min.) CP 5-1220X5a. Aug. 31 Note Receivable —L. Holland……………1,000Cash………………………………….…….1,000 To lend money.20X6b. June 30 Interest Receivable ($1,000 ⨯ .09 ⨯ 10/12).75Interest Revenue (75)To accrue interest revenue.20X6c. Aug. 31 Cash ($1,000 + $90)………………………...1,090Interest Receivable (75)Interest Revenue ($1,000 ⨯ .09 ⨯ 2/12). 15Note Receivable…………………………1,000 To collect on note receivable.(5-10 min.) CP 5-13 a. BALANCE SHEETJune 30, 20X6Current assets:Note receivable…………………………………… $1,000Interest receivable (75)b. INCOME STATEMENTYear ended June 30, 20X6Revenues:Interest revenue……………………………….….$ 75 c. BALANCE SHEETJune 30, 20X7Nothing to report because the note wascollected on August 31, 20X6.d. INCOME STATEMENTYear ended June 30, 20X7Revenues:Interest revenue……………………………….….$ 15(10 min.) CP 5-14 Req. 120X6Cash + Short-term investments $4,000 + $15,000Acid-test ratio =+ Net current receivables=+ $73,000 Total current liabilities $101,000= .91The company’s acid-test ratio compares favorably to the industry average of .90.Req. 2One day’s sales= $743,000 = $2,036365Days’ sales in average accounts receivableAverage net=accounts receivable=($73,000 + $68,000) / 2= 35 daysThe company’s days’-sales-in-receivables ratio (35) is okay relative to the 30-day period of the credit terms.(10-15 min.) CP 5-15Income Statement Balance SheetDebit Credit Debit Credit 1. Classifications Balance Balance Balance BalanceService revenue (X)Other assets (X)Property, plant, andequipment (X)Cost of services sold.. XCash (X)Notes payable (X)Unearned revenues (X)Allowance fordoubtful accounts (X)Other expenses (X)Accounts receivable (X)Accounts payable (X)Millions 2. Service revenue………………………………………$23,613Cost of services sold……………………………….. (11,620) Other expenses………………………………………. (12,569) Net income (net loss)………………………………..$ (576)3. Current ratio = $239 + $4,417 – $389= 1.48 $607 + $2,285Exercises(10-15 min.) E 5-1 1. This is a trading investment because Exxonintends to sell the stock within a short time.2. Dec. 20 Short-Term Investment (10,000 ⨯$60)….600,000Cash……………………………………….600,000 Purchased investment.Dec. 31 Short-Term Investment[(10,000 ⨯ $63) –$600,000]………………..30,000Unrealized Gain on Investment………30,000 Adjusted investment to market value.3. BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$630,000 INCOME STATEMENTOther revenue and gains:Unrealized gain on investment……………………………$ 30,000(10-20 min.) E 5-2 INCOME STATEMENTOther revenue and (expense):Dividend revenue………………………………………$ 500 Unrealized gain on investment ($101,000 – $98,000).3,000 BALANCE SHEETCurrent assets:Short-term investments, at market value………….$101,000(15-30 min.) E 5-3 Req. 1Short-Term DividendUnrealized Gain (Loss) Gain on Sale*2,000 shares $.85 = $1,700Req. 2December 31 BALANCE SHEET 20X3 20X4 Current assets:Short-term investments…………………… $65,000 $ —Year Ended INCOME STATEMENT 20X3 20X4 Other revenue and expense:Dividend revenue…………………………… $ 1,700 $ —Unrealized (loss) on investment………….(2,000) —Gain on sale of investment………………..— 7,000(5-10 min.) E 5-4 MEMORANDUMDATE:TO: Bob O’ReillyFROM: Student NameRE: Essential element of internal control over collection from customersSeparation of duties is the essential element in a system to ensure that cash received by mail from customers is properly handled and accounted for. It is very important to separate cash-handling duties from accounting duties. Otherwise, an employee can steal a cash receipt from a customer and cover the theft by writing off the customer account as uncollectible.Student responses may vary.(15-20 min.) E 5-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8Dec. 31Year-end entry:Doubtful-Account Expense($600,000 .01)………………………...6,000Allowance for Doubtful Accounts. 6,000 BALANCE SHEETCurrent assets:Accounts receivable, net of allowancefor doubtful accounts of $6,9001…………... $84,1002 _____ _____1$900 + $6,000 = $6,900 2$91,000 – $6,900 = $84,100(15 min.) E 5-6 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Accounts Receivable……………………...100,000Sales Revenue…………………………..100,000Oct. Cash…………………………………………..94,000Accounts Receivable…………………...94,000 Oct. Allowance for Uncollectible Accounts…1,700Accounts Receivable…………………...1,700 Oct. Uncollectible-Account Expense($100,000 .02)……………………………..2,000Allowance for Uncollectible Accounts 2,000Req. 2Allowance forNet accounts receivable = $30,400 ($32,300 – $1,900)The store expects to collect an amount approximating the net receivable.Req. 3BALANCE SHEETCurrent assets:Accounts receivable, net of allowance foruncollectible accounts of $1,900…………………$30,400(10-15 min.) E 5-7 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Uncollectible-Account Expense…..1,700Accounts Receivable……………..1,700Req. 2Net accounts receivable is $32,300, the balance in Accounts Receivable, computed as follows:The store does not expect to collect the full $32,300 because some credit customers are likely not to pay their accounts.(15-30 min.) E 5-8 Req. 1The credit balance at December 31 in Allowance for Doubtful Accounts should be $13,400.($106,000 ⨯ .005) + ($78,000 ⨯ .015) + ($70,000 ⨯ .06) + ($15,000 ⨯.50) = $13,400. The current balance is $7,400. Thus, the balance of the allowance account is too low.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Doubtful-Account Expense……………..6,000Allowance for Doubtful Accounts….6,000Req. 3BALANCE SHEETCurrent assets:Cash.................................................. $ XX Short-term investments (XX)Accounts receivable, net of allowancefor doubtful accounts of $13,400……..255,600* _____*Another way to report accounts receivable isAccounts receivable……………………….$269,000Less All owance for doubtful accounts… (13,400) 255,600(15-20 min.) E 5-9 Req. 12% is reasonable because for each year’s sales and for the entire three-year period, the ratio of total write-offs to sales is very close to 2%.(Dollars in thousands) 20X4 20X5 20X6 TotalWrite offs= $139 $138 $144 $421Sales $6,800 $7,000 $7,100 $20,900= .0204 = .0197 = .0203 = .0201Req. 2Thousands20X6 Accounts Receivable……………………7,100Sales Revenue………………………...7,100 Recorded sales on account.20X6 Bad-Debt Expense ($7,100 .02) (142)Allowance for Bad Debts (142)Recorded expense for the year.20X6 Allowance for Bad Debts (144)Accounts Receivable (144)Wrote off uncollectible receivables.(10-15 min.) E 5-10JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 1 Note Receivable —Al Sperry………… 40,000Cash…………………………………….40,000 Dec. 3 Note Receivable —Acura, Inc……….. 5,000Ser vice Revenue……………………..5,00016 Note Receivable —Vanguard Co……. 2,000Accounts Receivable — Vanguard Co. 2,00031 Interest Receivable…………………….. 656*Interest Revenue (656)_____**Fraction can also be stated as .5/12Harrison earned interest revenue of $656 this year.(15 min.) E 5-1120X8 20X9 BALANCE SHEETCurrent assets:Note receivable…………………………….…$100,000 $ —Interest receivable ($100,000 ⨯ .08 ⨯ 9/12). 6,000 —INCOME STATEMENTInterest revenue…………………………………6,000 2,000* _____*$100,000 ⨯ .08 ⨯ 3/12 = $2,000(10 min.) E 5-12 1. Stockton Bank has interest receivable and interest revenue.California Company has interest payable and interestexpense.Interest for one month ($100,000 ⨯ .06 ⨯1/12)……… $5002. Stockton Bank: Assets = Liabilities + Equity Affected ByCalifornia Company: 0 Interest expense3. True4. The net amount of receivables —the amount the companyexpects to collect —is more interesting because the company will probably collect this amount in cash.5. Accounts receiva ble…………………….$XXXLess Allowance for uncollectibles (X)Accounts receivable, net……………….$ XXBALANCE SHEETCurrent assets:CashShort-term investmentsAccounts receivable, net6. False. The direct write-off method overstates assets becauseit fails to show the amount of the receivables the company expects to collect.(10-15 min.) E 5-13 Amounts in millions of dollarsShort-term Net current(a) Acid-test= Cash + investments + receivablesratio Total current liabilities= $137 + $30 + $37 $40 + $158= $204 $198= 1.03An acid-test ratio of 1.03 is normal.(b) One Sales andday's= service revenue=$415= $1.137sales 365 365 Days’ sales Average netin average= accounts receivable=($37 + $42) / 2receivables One day’s sales$1.137= 35 days35 days’ sales in average receivables is okay relative to credit terms of net 30 days.(10-15 min.) E 5-14 Req. 1Average collection period: Millions of dollarsOne day’s sales= $256,329= $702.3 365Days’ sales in average receivables= ($1,254 + $1,569) / 2= 2 days(average collection period) $702.3Req. 2Wal-Mart’s collection period is short because Wal-Mart sells for cash and on credit cards and bank cards. Receivables are very low.(15-20 min.) E 5-15 Actualwithout BankCards Expected with Bank CardsSales revenue ……………………...$400,000 $440,000* Cost of goods sold……………….$210,000 $231,000** Uncollectible-account expense…6,000 —Bank-card discount expense……4,800*** Other expenses…………………… 68,000 66,000**** Total expenses……………………. 284,000 301,800 Ne t income………………………….$116,000 $138,200 Decision: Accept bank cards because of the expected increase in net income._____*$400,000 ⨯ 1.10 = $440,000**$210,000 ⨯ 1.10 = $231,000***$440,000 – $200,000 = $240,000 ⨯ .02 = $4,800The switch to bank cards should produce bankcard discount expense on only the portion of sales that are made on bank cards.****$68,000 – $2,000 = $66,000(15-20 min.) E 5-16 Analysis of T-accounts is helpful, as follows (in millions):(b) ($354 .01)(c)(10-15 min.) E 5-17Collections= $940,000=$940,000= .91Beg. bal. + Sales on account $80,000 + $950,000 $1,030,000Therefore, the percentage discount that Columbia should be willing to absorb is 9% (100% – 91%).。