《会计专业英语习题》参考答案
会计专业英语习题答案
会计专业英语习题答案Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: "The company covered up the first report, and the local newspaper uncovered the company's secret. The company was forced to not locate here (Collier County). It became patently clear that doing the least that is legally allowed is not enough."1-21. B2. B3. E4. F5. B6. F7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 – $15,000)c. $19,500 ($37,000 – $17,500)1-4a. $275,000 ($475,000 – $200,000)b. $310,000 ($275,000 + $75,000 – $40,000)c. $233,000 ($275,000 – $15,000 – $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 – $105,000 – $275,000) 1-5a. owner's equityb.liabilityc.assetd.assete.owner'sequity f. asset1-6a. Increases assets and increases owner’s equity.b. Increases assets and increases owner’s equity.c. Decreases assets and decreases owner’s equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase2. decrease3.increase4. decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 – $4,400)c. $5,600 ($64,100 – $58,500)d. $7,600 ($25,000 – $16,000 – $1,400)e. $5,600 ($7,600 – $2,000)1-9It would be incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owner’s EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006 ...... $297,200 Net income for the month ................ $73,000Less withdrawals ........................... 12,000Increase in owner’s equity................ 61,000 Leo Perkins, capital, April 30, 2006 .... $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned ................................ $232,120 Operating expenses:Wages expense .......................... $100,100Rent expense ............................. 35,000Supplies expense ........................ 4,550Miscellaneous expense.................. 3,150Total operating expenses ............. 142,800 Net income .................................. $89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k1-151. b–investing activity2.a–operating activity3. c–financing activity4.a–operating activity1-16a. 2003: $10,209 ($30,011 – $19,802)2002: $8,312 ($26,394 – $18,082)b. 2003: 0.52 ($10,209 ÷ $19,802)2002: 0.46 ($8,312 ÷ $18,082)c. The ratio of liabilities to stockholders’ equity increased from2002 to 2003, indicating an increase in risk for creditors.However, the assets of The Home Depot are more than sufficient to satisfy creditor claims.Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expense 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15Equipment2. Liabilities21 Accounts Payable22Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41Fees Earned5. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. andb.Account Debited Account Credited Transaction T ype Effect Type Effect(1) asset + owner's equity +(2) asset + asset –(3) asset + asset –liability +(4) expense + asset –(5) asset + revenue +(6) liability –asset –(7) asset + asset –(8) drawing + asset –(9) expense + asset –Ex. 2–4(1) Cash...................................... 40,000Ira Janke, Capital ................... 40,000 (2) Supplies ................................. 1,800Cash................................... 1,800 (3) Equipment ............................... 24,000Accounts Payable ................... 15,000Cash................................... 9,000 (4) Operating Expenses ................... 3,050Cash................................... 3,050 (5) Accounts Receivable .................. 12,000Service Revenue ..................... 12,000 (6) Accounts Payable ...................... 7,500Cash................................... 7,500 (7) Cash...................................... 9,500Accounts Receivable ............... 9,500 (8) Ira Janke, Drawing ..................... 5,000Cash................................... 5,000 (9) Operating Expenses ................... 1,050Supplies .............................. 1,0502-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a. Liability—credit f. Revenue—creditb. Asset—debit g. Asset—debitc. Asset—debit h. Expense—debitd. Owner's equity i. Asset—debit(Cindy Yost, Capital)—credit j. Expense—debite. Owner's equity(Cindy Yost, Drawing)—debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf. credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 – $4,000– $8,000). Such a negative balance means that the liabilities of Seth’s business exceed the assets.b. Y es. The balance sheet prepared at December 31will balance, with Seth Fite, Capital, being reported in the owner’s equity section as a negative $1,500.2-9a. T he increase of $28,750 in the cash accountdoes not indicate earnings of that amount.Earnings will represent the net change in allassets and liabilities from operatingtransactions.b. $7,550 ($36,300 – $28,750)2-10a. $40,550 ($7,850 + $41,850 – $9,150)b. $63,000 ($61,000 + $17,500 – $15,500)c. $20,800 ($40,500 – $57,700 + $38,000)2-112005Aug.1 Rent Expense ........................... 1,500Cash................................... 1,5002 Advertising Expense (700)Cash (700)4 Supplies ................................. 1,050Cash................................... 1,0506 Office Equipment ....................... 7,500Accounts Payable ................... 7,5008 Cash...................................... 3,600Accounts Receivable ............... 3,60012 Accounts Payable ...................... 1,150Cash................................... 1,15020 Gayle McCall, Drawing ................ 1,000Cash................................... 1,00025 Miscellaneous Expense (500)Cash (500)30 Utilities Expense (195)Cash (195)31 Accounts Receivable .................. 10,150Fees Earned ......................... 10,15031 Utilities Expense (380)Cash (380)2-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit 2006Oct.27 Supplies .......................... 15 1,320Accounts Payable ............ 21 1,320Purchased supplies on account.b.,c.,d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr.Dr. Cr.2006Oct. 1 Balance ................ ✓...... ...... 585 ......27 .......................... 43 1,320 ...... 1,905 ...... Accounts Payable 21 2006Oct. 1 Balance ................ ✓...... ...... ..... 6,15027 .......................... 43 ...... 1,320 ..... 7,4702-13Inequality of trial balance totals would be caused by errors described in (b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash ........................................... 13,375 Accounts Receivable .......................... 24,600Prepaid Insurance .............................. 8,000 Equipment ...................................... 75,000 Accounts Payable .............................. 11,180 Unearned Rent ................................. 4,250 Erin Capelli, Capital ........................... 82,420 Erin Capelli, Drawing .......................... 10,000Service Revenue ................................ 83,750 Wages Expense ................................ 42,000 Advertising Expense ........................... 7,200 Miscellaneous Expense ....................... 1,425 181,600 181,6002-15a. Gerald Owen, Drawing ................ 15,000Wages Expense ..................... 15,000b. Prepaid Rent ............................ 4,500Cash................................... 4,5002-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999 Amount Percent1. Sales .......................... $37,028 $35,925 .......................... $ 1,1033.1%2. Cost of sales ................ (29,658)(28,111) ......................... 1,5475.5%3. Selling, general, and admin.expenses ..................... (7,415) (6,514) 901 13.8%4. Operating income (loss)before taxes ................. $ (45) $1,300$(1,345)(103.5%)b. The horizontal analysis of Kmart Corporation revealsdeteriorating operating results from 1999 to 2000.While sales increased by $1,103 million, a 3.1%increase, cost of sales increased by $1,547 million, a5.5% increase. Selling, general, and administrativeexpenses also increased by $901 million, a 13.8%increase. The end result was that operating incomedecreased by $1,345 million, over a 100% decrease,and created a $45 million loss in 2000. Little over ayear later, Kmart filed for bankruptcy protection. It hasnow emerged from bankruptcy, hoping to return toprofitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid expense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense (801)Supplies (801)3-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated.Net income will be overstated.b. Prepaid insurance (or assets) will be overstated.Owner’s equity will be overstated.3-5a.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,215 b.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,2153-6Unearned Fees ................................... 9,570Fees Earned ............................ 9,5703-7a.Salary Expense ................................ 9,360Salaries Payable ........................ 9,360 b.Salary Expense ................................ 12,480Salaries Payable ........................ 12,480 3-8$59,850 ($63,000 – $3,150)3-9$195,816,000 ($128,776,000 + $67,040,000)3-10Error (a) Error (b)Over- Under- Over-Under-stated stated stated stated1. Revenue for the year would be $ 0 $6,900 $ 0 $ 02. Expenses for the year would be 0 0 0 3,7403. Net income for the year would be 0 6,900 3,740 04. Assets at December 31 would be 0 0 0 05. Liabilities at December 31 would be 6,900 0 0 3,7406. Own er’s equity at December 31would be ......................... 0 6,900 3,740 03-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable .......................... 11,500Fees Earned ............................ 11,500b. No. If the cash basis of accounting is used, revenuesare recognized only when the cash is received.Therefore, earned but unbilled revenues would not berecognized in the accounts, and no adjusting entrywould be necessary.3-13a. Fees earned (or revenues) will be understated. Netincome will be understated.b. Accounts (fees) receivable (or assets) will beunderstated. Owner’s equity will be understated.3-14Depreciation Expense ........................... 5,200Accumulated Depreciation ............ 5,200 3-15a. $204,600 ($318,500 – $113,900)b. No. Depreciation is an allocation of the cost of theequipment to the periods benefiting from its use. Itdoes not necessarily relate to value or loss of value.3-16a. $2,268,000,000 ($5,891,000,000 – $3,623,000,000)b. No. Depreciation is an allocation method, not avaluation method. That is, depreciation allocates thecost of a fixed asset over its useful life. Depreciationdoes not attempt to measure market values, whichmay vary significantly from year to year.3-17a.Depreciation Expense ......................... 7,500Accumulated Depreciation ............ 7,500 b. (1) D epreciation expense would be understated. Netincome would be overstated.(2) A ccumulated depreciation would be understated,and total assets would be overstated. Owner’sequity would be overstated.3-181.Accounts Receivable (4)Fees Earned (4)2.Supplies Expense (3)Supplies (3)3.Insurance Expense (8)Prepaid Insurance (8)4.Depreciation Expense (5)Accumulated Depreciation—Equipment 5 5.Wages Expense (1)Wages Payable (1)3-19a. Dell Computer CorporationAmount Percent Net sales $35,404,000 100.0Cost of goods sold (29,055,000) 82.1Operating expenses (3,505,000) 9.9Operating income (loss) $2,844,000 8.0b. Gateway Inc.Amount Percent Net sales $4,171,325 100.0Cost of goods sold (3,605,120) 86.4Operating expenses (1,077,447) 25.8Operating income (loss) $(511,242)(12.2)c. Dell is more profitable than Gateway. Specifically,Dell’s cost of goods sold of 82.1% is significantly less(4.3%) than Gateway’s cost of goods sold of 86.4%.In addition, Gateway’s operating expenses are over one-fourth of sales, while Dell’s operating expenses are 9.9% of sales. The result is that Dell generates an operating income of 8.0% of sales, while Gateway generates a loss of 12.2% of sales. Obviously, Gateway must improve its operations if it is to remain in business and remain competitive with Dell.4-1e, c, g, b, f, a, d4-2a. Income statement: 3, 8, 9b. Balance sheet: 1, 2, 4, 5, 6, 7, 104-3a. Asset: 1, 4, 5, 6, 10b. Liability: 9, 12c. Revenue: 2, 7d. Expense: 3, 8, 114-41. f2. c3. b4. h5. g6. j7. a8. i9. d10. e4–5ITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006AdjustedTrial Balance Adjustments TrialBalanceAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable50 (a) 7 57 23 Supplies 8 (b) 5 3 34 Prepaid Insurance 12 (c) 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 2 (d) 5 7 78 Accounts Payable 26 26 89 Wages Payable 0 (e) 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 60 (a) 7 67 1213 Wages Expense 16 (e) 1 17 1314 Rent Expense 8 8 1415 Insurance Expense 0 (c) 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense0 (d) 5 5 1718 Supplies Expense 0 (b) 5 5 1819 Miscellaneous Expense 2 2 120 Totals 200 200 24 24213 213 20ContinueITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006Adjusted Income BalanceTrial Balance StatementSheetAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable57 57 23 Supplies 3 3 34 Prepaid Insurance 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 7 7 78 Accounts Payable 26 26 89 Wages Payable 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 67 67 1213 Wages Expense 17 17 1314 Rent Expense 8 8 1415 Insurance Expense 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense5 5 1718 Supplies Expense 5 5 1819 Miscellaneous Expense 2 2 120 Totals 213 213 49 67 164 146 2021 Net income (loss) 18 18 2122 67 67 164 164 224-6ITHACA SERVICES CO.Income StatementFor the Year Ended January 31, 2006Fees earned .................................... $67Expenses:Wages expense ............................ $17Rent expense (8)Insurance expense (6)Utilities expense (6)Depreciation expense (5)Supplies expense (5)Miscellaneous expense (2)Total expenses ...........................49Net income ...................................... $18ITHACA SERVICES CO.Statement of Owner’s EquityFor the Year Ended January 31, 2006 Terry Dagley, capital, February 1, 2005 .... $112 Net income for the year ....................... $18 Less withdrawals . (8)Increase in owner’s equity....................10Terry Dagley, capital, January 31, 2006 ... $122ITHACA SERVICES CO.Balance SheetJanuary 31, 2006Assets LiabilitiesCurrent assets: Current liabilities:Cash ............... $ 8 Accounts payable $26 Accounts receivable 57 .. Wages payable 1 Supplies ........... 3 Total liabilities . $ 27 Prepaid insurance 6Total current assets $ 74Property, plant, and Owner’s Equityequipment: Terry Dagley, capital (12)Land ............... $50Equipment ........ $32Less accum. depr. 7 25Total property, plant,and equipment 75 Total liabilities andTotal assets ......... $149 owner’s equity .. $1494-72006Jan.31 Accounts Receivable (7)Fees Earned (7)31 Supplies Expense (5)Supplies (5)31 Insurance Expense (6)Prepaid Insurance (6)31 Depreciation Expense (5)Accumulated Depreciation—Equipment 531 Wages Expense (1)Wages Payable (1)4-82006Jan.31 Fees Earned (67)Income Summary (67)31 Income Summary (49)Wages Expense (17)Rent Expense (8)Insurance Expense (6)Utilities Expense (6)Depreciation Expense (5)Supplies Expense (5)Miscellaneous Expense (2)31 Income Summary (18)Terry Dagley, Capital (18)31 Terry Dagley, Capital (8)Terry Dagley, Drawing (8)4-9SIROCCO SERVICES CO.Income StatementFor the Year Ended March 31, 2006Service revenue ................................$103,850Operating expenses:Wages expense ............................ $56,800Rent expense ............................... 21,270Utilities expense ............................ 11,500Depreciation expense ..................... 8,000Insurance expense ......................... 4,100Supplies expense .......................... 3,100Miscellaneous expense .................... 2,250Total operating expenses ....... 107,020Net loss ..........................................$ (3,170)4-10SYNTHESIS SYSTEMS CO.Statement of Owner’s EquityFor the Year Ended October 31, 2006 Suzanne Jacob, capital, November 1, 2005$173,750Net income for year ........................... $44,250 Less withdrawals ............................... 12,000 Increase in owner’s equity....................32,250Suzanne Jacob, capital, October 31, 2006 $206,0004-11a. Current asset: 1, 3, 5, 6b. Property, plant, and equipment: 2, 44-12Since current liabilities are usually due within one year, $165,000 ($13,750 × 12 months) would be reported as a current liability on the balance sheet. The remainder of $335,000 ($500,000 – $165,000) would be reported as a long-term liability on the balance sheet.4-13TUDOR CO.Balance SheetApril 30, 2006AssetsLiabilitiesCurrent assetsCurrent liabilities:Cash $31,500Accounts payable ........... $9,500Accounts receivable 21,850 Salaries payable1,750Supplies ............ 1,800 Unearned fees ............... Prepaid insurance 7,200 Total liabilitiesPrepaid rent ....... 4,800Total current assets $67,150 Owner’s E Property, plant, and equipment: Vernon Posey,capital 114,200Equipment ....... $80,600Less accumulated depreciation 21,100 59,500Total liabilities andTotal assets $126,650 owner’s equity ...............4-14Accounts Receivable ............................ 4,100Fees Earned ......................... 4,100 Supplies Expense ...................... 1,300Supplies .............................. 1,300 Insurance Expense ..................... 2,000Prepaid Insurance ................... 2,000 Depreciation Expense ................. 2,800Accumulated Depreciation—Equipment 2,800 Wages Expense ........................ 1,000Wages Payable ...................... 1,000 Unearned Rent .......................... 2,500Rent Revenue ........................ 2,5004-15c. Depreciation Expense—Equipmentg. Fees Earnedi. Salaries Expensel. Supplies Expense4-16The income summary account is used to close the revenue and expense accounts, and it aids in detectingand correcting errors. The $450,750 represents expense account balances, and the $712,500 represents revenue account balances that have been closed.4-17a.Income Summary ............................. 167,550Sue Alewine, Capital ................... 167,550 Sue Alewine, Capital ............................ 25,000Sue Alewine, Drawing ................. 25,000b. $284,900 ($142,350 + $167,550 – $25,000)4-18a. Accounts Receivableb. Accumulated Depreciationc. Cashe. Equipmentf. Estella Hall, Capitali. Suppliesk. Wages Payable4-19a. 2002 2001Working capital ($143,034)($159,453)Current ratio 0.81 0.80b. 7 Eleven has negative working capital as of December31, 2002 and 2001. In addition, the current ratio is below one at the end of both years. While the working capital and current ratios have improved from 2001 to 2002, creditors would likely be concerned about the ability of 7 Eleven to meet its short-term credit obligations. This concern would warrant further investigation to determine whether this is a temporaryissue (for example, an end-of-the-periodphenomenon) and the company’s plans to address itsworking capital shortcomings.4-20a. (1) Sales Salaries Expense ................ 6,480Salaries Payable ........................ 6,480(2) Accounts Receivable ................... 10,250Fees Earned ............................. 10,250b. (1) Salaries Payable ........................ 6,480Sales Salaries Expense ................ 6,480(2) Fees Earned ............................. 10,250Accounts Receivable ................... 10,2504-21a. (1) Payment (last payday in year)(2) Adjusting (accrual of wages at end of year)(3) Closing(4) Reversing(5) Payment (first payday in following year)b. (1) W ages Expense ........................ 45,000Cash ...................................... 45,000(2) Wages Expense ......................... 18,000Wages Payable .......................... 18,000(3) Income Summary .......................1,120,800Wages Expense ......................... 1,120,800(4) Wages Payable .......................... 18,000Wages Expense ......................... 18,000(5) Wages Expense ......................... 43,000Cash ...................................... 43,000 Chapter6（找不到答案，自己处理了哦）Ex. 8–1a. Inappropriate. Since Fridley has a large number ofcredit sales supported by promissory notes, a notesreceivable ledger should be maintained. Failure tomaintain a subsidiary ledger when there are asignificant number of notes receivable transactionsviolates the internal control procedure that mandates proofs and security. Maintaining a notes receivable ledger will allow Fridley to operate more efficiently and will increase the chance that Fridley will detect accounting errors related to the notes receivable. (The total of the accounts in the notes receivable ledger must match the balance of notes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation ofduties is violated. The accounts receivable clerk is responsible for too many related operations. The clerk also has both custody of assets (cash receipts) and accounting responsibilities for those assets.c. Appropriate. The functions of maintaining theaccounts receivable account in the general ledger should be performed by someone other than the accounts receivable clerk.d. Appropriate. Salespersons should not be responsiblefor approving credit.e. Appropriate. A promissory note is a formal creditinstrument that is frequently used for credit periods over 45 days.Ex. 8–2-aa.Customer Due Date Number of DaysPast DueJanzen Industries August 29 93 days (2 + 30+ 31 + 30)Kuehn Company September 3 88 days (27 + 31+ 30)Mauer Inc. October 21 40 days (10 +30)Pollack Company November 23 7 daysSimrill Company December 3 Not past dueEx. 8–3Nov.30 Uncollectible Accounts Expense ..... 53,315*Allowances for Doubtful Accounts 53, *$60,495 – $7,180 = $53,315Ex. 8–4Estimated Uncollectible AccountsAge Interval Balance Percent AmountNot past due .............. $450,000 2% $9,0001–30 days past due...... 110,000 4 4,40031–60 days past due .... 51,000 6 3,06061–90 days past due .... 12,500 20 2,50091–180 days past due .. 7,500 60 4,500Over 180 days past due 5,500 80 4,400 Total .................... $636,500 $27,860Ex. 8–52006Dec. 31 Uncollectible Accounts Expense ..... 29,435*.A llowance for Doubtful Accounts 29,435 *$27,860 + $1,575 = $29,435Ex. 8–6a. $17,875 c. $35,750b. $13,600 d. $41,450Ex. 8–7a.Allowance for Doubtful Accounts ........... 7,130Accounts Receivable .................. 7,130b.Uncollectible Accounts Expense ............ 7,130Accounts Receivable .................. 7,130Ex. 8–8Feb.20 Accounts Receivable—Darlene Brogan 12,100 Sales .................................. 12,10020 Cost of Merchandise Sold ............ 7,260Merchandise Inventory .............. 7,260May30 Cash...................................... 6,000Accounts Receivable—Darlene Brogan 6,030 Allowance for Doubtful Accounts .... 6,100Accounts Receivable—Darlene Brogan 6,1Aug. 3Accounts Receivable—Darlene Brogan 6,100 Allowance for Doubtful Accounts . 6,1003 Cash...................................... 6,100Accounts Receivable—Darlene Brogan 6,1$223,900 [$212,800 + $112,350 –($4,050,000 × 21/2%)]Ex. 8–10Due Date Interesta. Aug. 31 $120b. Dec. 28 480c. Nov. 30 250d. May 5 150e. July 19 100Ex. 8–11a. August 8b. $24,480c. (1) N otes Receivable .......................... 24,000Accounts Rec.—Magpie Interior Decorators 24,(2) C ash......................................... 24,480Notes Receivable ....................... 24,000Interest Revenue (480)1. Sale on account.2. Cost of merchandise sold for the sale on account.3. A sales return or allowance.4. Cost of merchandise returned.5. Note received from customer on account.6. Note dishonored and charged maturity value of note tocustomer’s account receivable.7. Payment received from customer for dishonored noteplus interest earned after due date.Ex. 8–132005Dec.13 Notes Receivable ....................... 25,000Accounts Receivable—Visage Co. 25,31 Interest Receivable ..................... 75*Interest Revenue (75)31 Interest Revenue (75)Income Summary (75)2006。
会计专业英语教程-练习参考答案
会计专业英语教程课后练习参考答案Chapter 1Solutions to Self-TestST1-1 ABCDST1-2 BCDST1-3 CDSolutions to Questions for DiscussionOmittedSolutions to ExercisesOmittedChapter 2Solutions to Self-TestST2-1 CST2-2 CST2-3 AST2-4 DST2-5 BST2-6 BST2-7 ABDSolutions to ExercisesEx2-1 A.S B.W C.W D.W E.S F.W G.W H.SEx2-2A. Allowance for Doubtful Accounts 51,840Accounts Receivable 51,840B. Allowance for Doubtful Accounts 15,660Accounts Receivable 14,850Interest Receivable 810C. Accounts Receivable 7,020Allowance for Doubtful Accounts 7,020Cash 7,020Accounts Receivable 7,020D. Bad Debts Expense 20,520Allowance for Doubtful Accounts 20,520Ex2-3A. Jan. 4, Inventory 23,900Accounts Payable 23,900Jan. 9, Accounts Receivable 36,800Sales 36,800Cost of Goods Sold 27,200Inventory 27,200B. 124,600＋23,900－27, 200＝121,300C. Omitted.Chapter 3Solutions to Self-TestST3-1 CST3-2 CST3-3 DChapter 4Solutions to Self-TestST4-1 ABST4-2 ACST4-3 ABCDSolutions to Questions for DiscussionOmittedSolutions to ExercisesEx4-1 OmittedEx4-2 OmittedEx4-3A. 1,000,000×7.2%×5＝360,000B. 1,000,000×7.2%＝72,000C. 1,000,000×7.2%×1/12＝6,000Ex4-4A. June 1, Cash 20,000Notes Payable (Holden Investments) 20,000 July 19, Office Equipment 18,000Notes Payable (Western Supply) 18,000 Sept. 1, Cash 240,000Discount on Notes Payable 4,800Notes Payable (Midwest Bank) 244,800 Oct. 1, Inventory 162,000Discount on Notes Payable 405Notes Payable (Earthware Imports) 162,405Oct. 19, Interest Payable 350Interest Expense 100Cash 450For the replacement of an old note with a new one, the company needs to take notes in the memo records.B. Oct. 31, Interest Expense 195Discount on Notes Payable 135Interest Payable 60Oct. 31, Interest Expense 3,200Discount on Notes Payable 3,200Ex4-5 20,000,000×12%－(20,000,000×12%×35%)＝2,400,000－840,000＝1,560,000 Or 20,000,000×12%×(1－35%)＝1,560,000Chapter 5Solutions to Self-TestST5-1 CST5-2 BST5-3 BST5-4 CST5-5 DST5-6 CST5-7 AST5-8 DST5-9 DSolutions to Questions for DiscussionOmittedSolutions to ExercisesEx5-1 BEx5-2 AEx5-3 CEx5-4 DEx5-5 AEx5-6 DEx5-7 CEx5-8 BEx5-9 AEx5-10 BEx5-11 CEx5-12 BEx5-13 CEx5-14 DEx5-15 CChapter 6Solutions to Self-TestST6-1 AST6-2 CSolutions to Questions for DiscussionOmittedSolutions to ExercisesEx6-1a. The balance sheetThe balance sheetAssets LiabilitiesCash 100,000 Accounts payable 55,000 Buildings and equipment 600,000 Notes payable 400,000Owner’s EquityShare capital 150,000Retained earnings 95,000 Total assets 700,000 Total liabilities and owner’s equity 700,000 b. No, because most businesses have more transactions.Ex6-2Pale CompanyIncome StatementItem Amount of this periodI. Total sales 591,762 Including: Sales 591,762 II. Total cost of salesIncluding: Cost of sales 482,355 Taxes and associate chargesSelling expenses and distribution 98,576 Administrative expenses 1,257 Financial expenseImpairment lossGain/(loss) from investment (“-” means loss)11,218III. Business pr ofit (“-” means loss) 20,792 Add: non-business income 9,033 Less: non-business expenseIV. Total profit (“-” means loss) 29,825 Less: Tax expense 522 V. Net profit (“-” means loss) 29,303Chapter 7Solutions to Self-TestST7-1 Direct-labor-hour basisOverhead recovery rate = ￡12000/1,600=￡7.50 per direct-labor-hourMachine-hour basisOverhead recovery rate = ￡8000/1,000=￡8.00 per direct-labor-hourOverheads charged to jobsJob 1 Job 2￡￡Direct-labor-hour basis￡7.5×800 6,000￡7.5×800 6,000Machine-hour basis￡8.0×700 5,600￡8.0×300 2,400Total 11,600 8,400Solutions to Questions for DiscussionOmittedSolutions to ExercisesEx7-1 (a) Direct-labor-hour baissOverhead recovery rate＝￡50,000/2000＝￡25 per machine-hour.A ￡25×1500＝￡37500B ￡25×500＝￡12500(b) Machine-hour basisOverhead recovery rate＝￡50,000/1200＝￡41.6667 per machine-hour.A ￡41.6667×800＝￡33333B ￡41.6667×400＝￡16667Ex7-2The budget may be summarized as:Sales revenue ￡196,000Direct materials ￡38,000Direct labor ￡32,000Total overheads ￡77,000 (2,400+3,000+27,600+36,000+8,000)Profit ￡49,000The job may be priced on the basis that both overheads and profit should be apportioned to it on the basis of direct labor cost, as follows:Direct materials ￡4,000Direct labor ￡3,600Overheads ￡8,663 (￡77,000×3,600/32,000)Profit ￡5,513 (￡49,000×3,600/32,000)￡21,776This answer assumes that variable overheads vary in proportion to direct labor cost.Various other bases of charging overheads and profit loading the job could have been adopted. For example, materials cost could have been included (with direct labor) as the basis for profit-loading, or even apportioning overheads.Ex7-3Sales price per unitAunit OutputB￡Total sales revenueC＝A×B￡Variable costD＝B×￡20￡Total costE＝￡2500＋D￡Profit/lossH￡100 0 0 0 2500 -250095 10 950 200 2700 -175090 20 1800 400 2900 -110085 30 2550 600 3100 -55080 40 3200 800 3300 -10075 50 3750 1000 3500 25070 60 4200 1200 3700 50065 70 4550 1400 3900 65060 80 4800 1600 4100 70055 90 4950 1800 4300 65050 100 5000 2000 4500 500 An output of 80 units each week will maximize profit at ￡700 a week. The sales price per units is ￡60.Chapter 8Solutions to Self-TestST8-1The minimum price is:￡Opportunity cost of the car 3,500Cost of the reconditioned engine 300Total 3,800The original cost of the car is irrelevant. The cost of the new engine is relevant because, if thework is done, the garage will have to pay ￡300 for the engine.The labor cost 15 irrelevant because the same cost will be incurred whether the mechanic undertakes the work or not. This is because the mechanic is being paid to do nothing if this job is not undertaken; thus the additional labor cost arising from this job is zero.ST8-2Product (code name) B14 B17 B22 (￡)Selling price per unit 25 20 23Variable cost per unit (10) (8) (12)Contribution per unit 15 12 11Machine time per unit(hours) 4 3 4Contribution per machine-hour 3.75 4.00 2.75Order of priority 2nd1st3rdLabor time per unit (hours) 5 3 6Therefore:Produce 20 unit of product B17 using 60 hours22unit of product B14 using 88 hours148 hoursSolutions to Questions for DiscussionOmittedSolutions to ExercisesEx8-1The minimum price is:Opportunity cost of the car ￡3,500Cost of the reconditioned engine ￡300Labor cost (7×￡20)￡140Total ￡3,940Ex8-2The relevant costs to be included in the minimum price are:Stock item: A1 ￡6×500=￡3,000B2 ￡8×800=￡6,400We are told that the stock of item A1 is in frequent use and so, if it is used on the contract, it will need to be replaced. We are told the stock of item B2 will never be used by the business unless the contract is undertaken. Thus, if the contract is not undertaken, the only reasonable thing for the business to do is sell the stock. This means that the opportunity cost is ￡8 a unit.Ex8-3(a) Estimated monthly profit from basket making:Without the machine With the machine￡￡Sales (500×￡14) 7,000 7000 Less Materials (500×￡2)1000 1000 Labor(500×2×￡5) 5000 (500×1×￡5) 2500 Fix costs 500 3000 Profit 500500(b) The BEP with the machine:unitper ts Variable unit per revenus Sales tsFixed － ＝cos cos＝）＋－（5214000,3＝429 baskets per month.There seems to be nothing to choose between the two manufacturing strategies regarding profit, at the estimated sales volume. There is, however, a distinct difference between the two strategies regarding the BEP. Without the machine, the actual volume of sales could fall by a half of that which is expected (from 500 to 250) before the business would fail to make a profit. With the machine, however, a 14 per cent fall (from 500 to 429) would be enough to cause the business to fail to make a profit.Ex8-4 (a) BEP ＝unitper ts Variable unit per revenus Sales tsFixed － ＝cos cos＝=++++)3121420(60)000,60000,80(－＝12,127 radiosSales value is ￡763,620 (12,127×￡60).(b) The margin of safety is 7,273 radios (that is, 20,000－12,727).The margin would have a sales value of ￡436,380 (that is, 7,273×￡60).Chapter 9Solutions to Self-TestST9-1 (a) and (b)(c) Feasible explanations include the following:Sales volumeSales priceMaterials usageLabor rateLabor efficiencyOverheads(d)￡Planning variance(10%×4000) ×￡2.24 896 ‘New’ sales volume variance[4000－（10%×4000）－3500] ×￡2.24224 Original sales volume variance 1120Solutions to Questions for DiscussionOmittedSolutions to ExercisesEx9-1The original budget, the flexed budget and the actual re as follows:Budget Actual Flexed budgetOutput (production and sales) 1,000 units 1050 units 1050 units￡￡￡Sale revenue 100,000 104,300 105,000Raw materials 40,000 41,200 42,000Labor 20,000 12,300 21,000Fixed overheads 20,000 19,400 20,000Operating profit 20,000 22,400 22,000 Reconciliation of the budgeted and actual operating profits for JulyBudgeted profit 20,000Add favorable variances:Sales volume (22,000－20,000) 2,000Direct materials usage {[(1050×40)－40,500]×￡1} 1,500Direct labor efficiency{[(1050×2.5)－2,600]×￡8} 200Fixed overhead spending (20,000－19,400) 60024,300Less Adverse variances:Sales price variance (105,000－104,300) 700Direct materials price[(40,500×￡1)－41,200] 700Direct labor rate[(2,600×￡8) －21,300] 500Actual profit 22,400Ex9-2Pilot Ltd(a)and (b)BudgetActualOriginal FlexedOutput (units)(production and sales)5,000 5,400 5,400￡￡￡Sales revenue 25,000 27,000 26,460Raw materials (7,500) (8,100) (2,700 kg) (8,770) (2,830 kg) Labor (6,250) (6,750) (1,350 hr) 6,885 (1,300 hr) Fixed overheads (6,000) (6,000) (6,350)Operating profit 5,250 6,150 4,455￡Manager accountableSales volume varianceSales price variance Materials usage variance Materials price variance Labor efficiency variance Labor rate variance Fixed overhead variance5250－615027000－26460[(5400×0.5）－2830]×￡3（2830×3）－8770[(5400×0.25)－1300]×￡5(1300×5)－68856000－6350900 (F)(540) (A)(280) (A)(390) (A)(385) (A)250(F)(350) (A)SalesSalesBuyerProductionPersonnelProductionDepends on the natureof the overheadsTotal net variances 795(A)Note: F－favorable; A－adverseChapter 10Solutions to Self-TestST10-1A. stock price ￥112.00-5% underpricing 5.60Issue price ￥106.40-6% spread 7.45Net to company ￥98.95Number of shares=￥200 million/￥98.95=2.02 millionB. Investment bankers’ revenue=￥7.45×2.02 million=￥15.01 millionC. Underpricing is not a cash flow. It is, however, an opportunity cost to current owners because it means that more shares must be sold to raise ￥200 million and each share will represent a smaller ownership interest in the company.ST10-2Let X equals the end-of-year payment. ￥100,000=X(3.791); X=￥26,378.26. With this annual payment, the NPV on the loan from the bank’s perspective is 0, so its IRR is 10 percent.Solutions to Questions for DiscussionOmittedSolutions to ExercisesEx10-1A.The holding period return is -2.9 percent.B.The bond’s price might have fallen because investor perceptions of its risk rose or becauseinterest rates rose.Ex10-2A.PV=1,000(0.507)=￥507B.PV=1,000(0.257)=￥257. Present value is less because the present sum has more time togrow into ￥1,000.C.PV=5,000(0.893)+3,000(0.797)+10,000(0.322)=￥10,076D.PV=80(6.628)+1,000(0.205)=￥735.24Chapter 11Solutions to Self-TestST11-1 TrueST11-2 TrueST11-3 FalseST11-4 TrueST11-5 FalseST11-6 FalseSolutions to Questions for DiscussionOmittedSolutions to ExercisesEX11-1A.ROE will undoubtedly fall. The numerator of the ratio, net income, will decline because theacquired company is losing money.B.This, however, is not important to the decision. This is another example of the timing problem.If the Internet company has great promise, it may make complete sense to acquire the business even though it is currently losing money. The proper way to evaluate the acquisition is to calculate a time-adjusted figure of merit that takes into account the company’s future performance.EX11-2Leverage ratios provide information about the degree of financial risk management faces in levering the business. Liquidity ratios offer information about the ready financial reserves the company has available to meet unanticipated needs. Control ratios provide insight into the management of important operating assets and liabilities. Finally, the fixed-asset turnover ratio indicates the degree of operating leverage the firm employs and its vulnerability to sales declines. Largely missing from this list is information about the business risks inherent in the markets in which the firm competes.EX11-3Collection period=Accounts receivable/Sales per dayAccounts receivable= Collection perio d×Sales per day=45×￥52 million/365=￥6.4 millio nChapter 12Solutions to Self-TestOmittedSolutions to ExercisesEx12-1A.(3)B.dC.bD.bEx12-2A.dB.dEx12-3A.bB.cC.aChapter 13Solutions to Self-TestOmittedSolutions to ExercisesEx13-1 OmittedEx13-2 OmittedEx13-3 OmittedEx13-4 OmittedEx13-5A.aB.aC.bD.cE.aF.cChapter 14Solutions to Self-TestOmittedSolutions to ExercisesEx14-1A.dB.cC.aD.cEx14-2A.aB.cC.d。
会计学英语试题及答案
会计学英语试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Sales Report2. The term "Double Entry Accounting" refers to the practice of recording:A. All transactions twiceB. Transactions in two different accountsC. Transactions in two different currenciesD. Transactions in two different formats3. What is the purpose of an "Adjusting Entry"?A. To close the books at the end of the yearB. To correct an error in the accounting recordsC. To ensure that the accounting equation is balancedD. To update the accounts to reflect the current financial position4. The "Accrual Basis" of accounting records revenues and expenses when:A. They are received or paidB. They are earned or incurredC. They are budgetedD. They are forecasted5. What does the term "Depreciation" represent?A. The increase in the value of an assetB. The decrease in the value of an asset over time due to useC. The sale of an assetD. The purchase of an asset6. Which of the following is an example of a "Liability"?A. Cash on handB. Accounts ReceivableC. Accounts PayableD. Inventory7. The "Net Income" is calculated by:A. Subtracting expenses from revenuesB. Adding expenses to revenuesC. Multiplying expenses by revenuesD. Dividing expenses by revenues8. A "Journal Entry" is used to:A. Record the initial transactionB. Adjust the trial balanceC. Close the booksD. Prepare financial statements9. What is the formula for calculating "Return on Investment" (ROI)?A. ROI = (Net Income / Total Assets) * 100B. ROI = (Net Income / Investment) * 100C. ROI = (Total Assets / Net Income) * 100D. ROI = (Investment / Net Income) * 10010. The "Going Concern" assumption in accounting means that:A. The business will always be profitableB. The business will continue to operate indefinitelyC. The business will be sold in the near futureD. The business will stop operating in the next year二、填空题（每题1分，共10分）11. The __________ is a record of all financial transactions of a business.12. In accounting, the __________ is the difference between the total debits and total credits.13. The __________ is the process of allocating the cost of a tangible asset over its useful life.14. An __________ is a financial statement that shows the changes in equity during a period.15. The __________ is the amount of money that a company owes to its creditors.16. The __________ is the process of estimating the value ofa company's assets.17. The __________ is the amount of money that a company has earned but has not yet received.18. The __________ is the amount of money that a company is owed by others.19. The __________ is the process of preparing financial statements at the end of an accounting period.20. The __________ is the amount of money that a company has spent but has not yet been billed.三、简答题（每题5分，共30分）21. Explain the difference between "Cash Basis" and "AccrualBasis" accounting.22. What is the purpose of "Bad Debts" in accounting?23. Describe the "Matching Principle" in accounting.24. What is the significance of "Financial Statement Analysis"?四、案例分析题（共40分）25. A company has the following transactions for the year: - Sales revenue of $500,000- Cost of goods sold of $300,000- Depreciation expense of $20,000- Interest expense of $10,000- Income tax expense of $30,000- Dividends paid of $15,000Calculate the company's net income and explain how each item affects the calculation.答案一、选择题1. D2. B3. D4. B5. B6. C7. A8. A9. B10. B二、填空题11. General Journal12. Trial Balance13. Depreciation14. Statement of Changes in Equity15. Liabilities16. Valuation17. Unearned Revenue18. Accounts Receivable19. Closing the Books20. Prepaid Expenses三、简答题21. Cash Basis accounting records transactions when cash is received。
会计英语课后习题参考答案.
Suggested SolutionChapter 11.Effect on the accounting equation (1) (2) (3) (4) (5) (6) (a) Increase in one asset, decrease inanother asset.√(b) Increase in an asset, increase in a liability.(c) Increase in an asset, increase in capital. √√(d) Decrease in an asset, decrease in aliability.√(e) Decrease in an asset, decrease in capital. √√2.Transactions Assets+/-Liabilities+/-Owner’s equity+/-1 + +2 + +3 - -4 + +5 + +6 - -7 - -8 +/-9 - -10 - -3.Describe each transaction based on the summary above.Transactions1 Purchased land for cash, $6,000.2 Investment for cash, $3,200.3 Paid expense $1,200.4 Purchased supplies on account, $800.5 Paid owner’s personal use, $750.6 Paid creditor, $1,5007 Supplies used during the period, $630.4.Assets Liabilities Equity Beginning 275,000 80,000 195,000Add. investment 48,000Add. Net income 27,000Less withdrawals -35,000 Ending 320,000 85,000 235,0005.(a)March 31, 20XX April 30, 20XXAssetsCash 4,500 5,400 Accounts receivable 2,560 4,100 Supplies 840 450 Total assets 7,900 9,950 LiabilitiesAccounts payable 430 690 EquityTina Pierce, Capital7,470 9,260(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease Prepaid Insurance -CRf.To decrease Cash - CRg.To increase Utilities Expense -DRh.To increase Fees Earned -CRi.To increase Store Equipment -DRj.To increase Owner, Withdrawal -DR2.a.Cash 1,800Accounts payable ................................................... 1,800 b.Revenue ................................................................... 4,500Accounts receivable ...................................... 4,500c.Owner’s withdrawals ................................................ 1,500Salaries Expense ............................................ 1,500 d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,000 4.1. $388,4002. $22,5203. $366,6004. $21,8005.1. net loss for the year ended June 30, 2002: $60,0002. DR Jon Nissen, Capital 60,000CR income summary 60,0003. post-closing balance in Jon Nissen, Capital at June 30, 2002: $54,000Chapter 31. Dundee Realty bank reconciliationOctober 31, 2009Reconciled balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 27.73. (a) As a whole: the ending inventory=685(b) applied separately to each product: the ending inventory=6254. The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 41. (a) second-year depreciation = (114,000 – 5,700) / 5 = 21,660;(b) second-year depreciation = 8,600 * (114,000 – 5,700) / 36,100 = 25,800;(c) first-year depreciation = 114,000 * 40% = 45,600second-year depreciation = (114,000 – 45,600) * 40% = 27,360;(d) second-year depreciation = (114,000 – 5,700) * 4/15 = 28,880.2. (a) weighted-average accumulated expenditures (2008) = 75,000 * 12/12 + 84,000 *9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000(b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 –60,000) * 10% =49,5003. (1) depreciation expense = 30,000(2) book value = 600,000 – 30,000 * 2=540,000(3) depreciation expense = ( 600,000 – 30,000 * 8)/16 =22,500(4) book value = 600,000 – 30,000 * 8 – 22,500 = 337,5004. Situation 1:Jan 1st, 2008 Investment in M 260,000Cash 260,000June 30 Cash 6000Dividend revenue 6000Situation 2:January 1, 2008 Investment in S 81,000Cash 81,000June 15 Cash 10,800Investment in S 10,800December 31 Investment in S 25,500Investment Revenue 25,5005. a. December 31, 2008 Investment in K 1,200,000Cash 1,200,000June 30, 2009 Dividend Receivable 42,500Dividend Revenue 42,500December 31, 2009 Cash 42,500Dividend Receivable 42,500b. December 31, 2008 Investment in K 1,200,000Cash 1,200,000 December 31, 2009 Cash 42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000 c. In a, the investment amount is 1,200,000net income reposed is 42,500In b, the investment amount is 1,303,500Net income reposed is 146,000Chapter 51.a. June 1: Dr: Inventory 198,000Cr: Accounts Payable 198,000 June 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000 June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Notes Payable 498,000Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000 Interest Payable 12,100Interest Expense 7,700 Cr: Cash 217,800 For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825 Cr: Cash 327,0002.(1) 208 Deferred income tax is a liability 2,400Income tax payable 21,600 209 Deferred income tax is an asset 600 Income tax payable 26,100(2) 208: Dr: Tax expense 24,000Cr: Income tax payable 21,600 Deferred income tax 2,400 209: Dr: Tax expense 25,500 Deferred income tax 600Cr: Income tax payable 26,100 (3) 208: Income statement: tax expense 24,000Balance sheet: income tax payable 21,600 209: Income statement: tax expense 25,500 Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))b. 7.8% (20000000*12 %* (1-35%)/20000000)4.maturity value numberofinterestperiodsstated rate perinterest-periodeffective interestrate perinterest-periodpaymentamountper periodpresentvalue ofbonds atdate ofissue1 $10 40 3.75% 3% $0.375 $11.732 20 10 10% 12% 2 17.743 25 10 0% 12% 0 8.055.Notes Payable 14,400Interest Payable 1,296Accounts Payable 60,000+Unearned Rent Revenue 7,200Current Liabilities 82,896Chapter 61. Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000 Mar. 15Organization Expense 50,000Common Stock 50,000 Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000 The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2. July.1Treasury Stock 180,000Cash 180,000 The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000 Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000 The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d. Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. Thesebenefits include the right to receive dividends before the common stockholders and theright to receive assets before the common stockholders if the corporation liquidates. Corporation pay a fixed amount of dividends on preferred stock.The 7% cumulative term indicates that the investors earn 7% fixed dividends.b. 7%*120%*20,000=504,000c. If corporation issued debt, it has obligation to repay principald. The date of declaration decrease the stockholders’ equity; the date of record and thedate of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000 To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 12,500e. June 30Retained Earnings 37,500Common Stock 25,000Additional Paid-in Capital 12,500 To record issuance of 10% stock dividend: 10%*25,000=2,500 shares;2500*$15=$37,500f. Dec. 31Depreciation Expense 14,000Accumulated Depreciation 14,000 Original depreciation: $40,000/40=$10,000 per year. Book value on Jan.1, 2009 is $350,000(=$400,000-5*$10,000). Deprecation for 2009 is $14,000(=$350,000/25).g. The company does not need to make entry in the accounting records. But the amountof Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be usedto record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Sales revenue ......................................................................... 310,000 To record sale of goods on accountCost of goods sold ........................................................................ 220,000 Inventory ................................................................................. 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ......................................................................... 15,500* Allowance for sales returns (B/S) ........................................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ......................................................................... 31,000* Provision for warranties (B/S) ................................................. 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns .......................................................... 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) ....................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures in year 1 for warranty workCash .............................................................................................. 297,600*Accounts receivable ............................................................... 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) ....................................................... 8,400 Cash/Accounts payable .......................................................... 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, the following journalentries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Inventory ................................................................................. 220,000 Deferred gross margin ............................................................ 90,000 To record sale of goods on accountDeferred gross margin .................................................................. 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within the 30-day return period. It is assumed the goods haveno value and are disposed of.Deferred warranty costs (B/S) ...................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred aredeferred because the related revenue has not yet been recognizedCash .............................................................................................. 297,600* Accounts receivable ............................................................... 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................................................ 8,400 Cash/Accounts payable .......................................................... 8,400 To record warranty costs incurred in year 2 related to year 1 sales. The warranty costsincurred are deferred because the related revenue has not yet been recognized.Deferred gross margin .................................................................. **77,600Cost of goods sold ........................................................................ 220,000 Sales revenue ......................................................................... 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold atexpiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ......................................................................... 27,000* Deferred warranty costs ......................................................... 27,000 To record recognition of warranty expense at same time as related sales revenuerecognition* $18,600 + $8,400Requirement 3Allied Auto Parts Inc. might choose to recognize revenue only after the warranty periodhas expired if they are not able to make a good estimate, at the time of sale, of the amountof warranty work that will be required under the terms of the one-year warranty. If Allied isnot able, at the time of sale, to make a good estimate of the warranty work that will berequired, then the measurability criterion of revenue recognition is not met at the time ofsale. The measurability criterion means that the amount of revenue can be reliablymeasured. If the seller is not able to estimate the amount of work that will have to be doneunder the warranty agreement, then it is not able to reasonably measure the profit that itwill eventually earn on the sales. The performance criteria might also be invoked here.The performance criterion means that the seller has transferred the significant risks andrewards of ownership to the buyer. As long as there is warranty work to be performed afterthe sale that is the responsibility of the seller, you might argue that performance is notsubstantially complete. However, if the seller was able to reliably estimate the amount ofwarranty work, then performance would be satisfied on the assumption that we couldmeasure the risk that remains with the seller, and make a provision for it.2.Percentage-of-completion method:The first step in applying revenue recognition using the percentage-of-completion method(using costs incurred to date compared to estimated total costs to determine thepercentage of completion) is to estimate the percentage of completion of the project at theend of each year. This is done in the following table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%Once the percentage of completion at the end of each year has been calculated as above,the next step is to allocate the appropriate amount of revenue to each year, based on thepercentage completed to date, less what has previously been recorded in revenue. This isdone in the following table (in $000s):2005 2006 20072005 $20,000 × 30% $ 6,0002006 $20,000 × 70% $ 14,0002007 $20,000 × 100% $ 20,000 Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction project would be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under thepercentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress .................. 5,400 7,550 5,850 Cash, payables, etc. ..... 5,400 7,550 5,850 2. Progress billings:Accounts receivable ............ 3,100 4,900 12,000 Progress billings ............ 3,100 4,900 12,000 3. Collections on billings:Cash .................................... 2,400 4,000 12,400 Accounts receivable ...... 2,400 4,000 12,400 4. Recognition of profit:Construction in progress ..... 600 450 150Construction expense.......... 5,400 7,550 5,850 Revenue from long-termcontract ...................... 6,000 8,000 6,000 5. To close construction in progress:Progress billings .................. 20,000 Construction in progress .20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000 Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 450 $ 1503.a. The three criteria of revenue recognition are performance, measurability, andcollectibility.Performance means that the seller or service provider has performed the work.Depending on the nature of the product or service, performance may mean quitedifferent points of revenue recognition. For example, for the sale of products, IAS18defines performance as the point when the seller of the goods has transferred therisks and rewards of ownership to the buyer. Normally, this means that performance isdone at the time of sale. Although the seller may have performed much of the workprior to the sale (production, selling efforts, etc.), there is still significant risk to theseller that a buyer may not be found. Therefore, from a reliability point of view,revenue recognition is delayed until the point of sale. Also, there may be significantrisks remaining with the seller of the product even after the sale. Warranties given bythe seller are a risk that remains with the seller. However, if this risk can be reliablyestimated at the time of sale, revenue can be recognized at the point of sale.Performance is quite different under a long-term construction contract. Here,performance really is considered to be a measure of the work done. Revenue isrecognized over the production period as the work is performed. It is intended toreflect the amount of effort expended by the seller (contractor). Although legal titlewon’t transfer to the buyer until the project is completed, revenue can be recognizedbecause there is a known and committed buyer. If the contractor is not able toestimate how much of the work has been done (perhaps because he or she can’t reliably estimate how much work must still be done), then profit would not berecognized until the extent of performance is known.Measurability means that the seller or service provider must be able to reliablyestimate the amount of the revenue from the sale or service. For the sale of productsthis is generally known at the time of sale (the sales price is set). However, if the sellerprovides a return period, it may be necessary to estimate the volume of returns at thetime of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurancethat the sales price will actually be collected. In most cases for the sales of products,the seller is able to recognize revenue at the time of sale even if the sale is on account.This is because the seller has experience with its customers and is able to estimatereliably the risk of non payment. As long as the seller is able to make this estimate, itis appropriate to recognize the revenue but to offset it with a provision for possible noncollection. If the seller is unable to make reliable estimates of future collection ofamounts owing, the recognition of revenue would be delayed until the cash is actuallyreceived. This is what is done using the instalment sales method of revenuerecognition.b. Because of the performance criterion of revenue recognition, it would seem to bemost appropriate to recognize most revenue as the seller or service provider performs thework. This would be the best measure of performance. This would mean, for example,that sellers of products would recognize their revenue over the whole production, selling,and post sales servicing periods. As we saw above, this is not commonly done because,in many cases, there are still significant risks that are retained by the seller (risk of notbeing able to sell the product, for example). There are also measurement risks (knowingthe selling price) that exist prior to the sale. The percentage-of-completion method ofrevenue used for some long-term construction contracts would seem to most closelyrecognize revenue as the work is performed. As mentioned in Part 1, we are able torecognize revenue on this basis since a contract exists which commits the purchaser tobuy the project (assuming certain conditions are met) and the sales price is knownbecause of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:$100) $ 20,000 Manuals and initial lessons (200 ×Additional lessons ((200 ×8) ×$30) 48,00080%) × $130) 20,800 Examinations ((200 ×Total sales revenue 88,800 Cost of sales:($15 + $3)) 3,600 Manuals and initial lessons (200 ×8) ×$3)) 4,800 Additional lessons ((200 ×Examinations ((200 ×80%) × $30) 4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000) 36,000Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division 2,100,000 Enterprise net profit $ 3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effectPayment of long-term debt. financingAcquisition of building by issuance of common stock. no effectAccrual of salary expense. no effect2.(a) Cash received from customers = 816,000(b) Cash payments for purchases of merchandise. =468,000(c) Cash payments for operating expenses. = 268,200(d) Income taxes paid. =36,9003.Cash sales …………………………………………... $9,000 Payment of accounts payable ………………………．-48,000 Payment of income tax ………………………………-13,000 Payment of interest ……………………………..…..-16,000 Collection of accounts receivable ……………………93,000-34,000 Payment of salaries and wages ………………………..Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000Add: increases in current liabilities 180,000Net cash flows from operating -200,000Investing activitiesSale of land -50,000Purchase of PPE -1,500,000Net cash flows from investing -1,550,000Financing activitiesIssuance of common shares 400,000Payment of cash dividend -50,000Issuance of non-current liabilities 1,000,000Net cash flows from financing 1,350,000 Net changes in cash -400,000 5.。
会计专业英语习题答案共73页word资料
Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: "The company covered up the first report, and the local newspaper uncovered the company's secret. The company was forced to not locate here (Collier County). It became patently clear that doing the least that is legally allowed is not enough."1-21. B2. B3. E4. F5. B6. F7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 – $15,000)c. $19,500 ($37,000 – $17,500)1-4a. $275,000 ($475,000 – $200,000)b. $310,000 ($275,000 + $75,000 – $40,000)c. $233,000 ($275,000 – $15,000 – $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 – $105,000 – $275,000)1-5a. owner's equityb.liabilityc.assetd.assete.owner's equityf. asset1-6a. Increases assets and increases owner’s equity.b. Increases assets and increases owner’s equity.c. Decreases assets and decreases owner’s equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase2. decrease3.increase4.decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 – $4,400)c. $5,600 ($64,100 – $58,500)d. $7,600 ($25,000 – $16,000 – $1,400)e. $5,600 ($7,600 – $2,000)1-9It would be incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owner’s EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006 ........ $297,200Net income for the month ................... $73,000Less withdrawals ........................... 12,000Increase in owner’s equity................ 61,000Leo Perkins, capital, April 30, 2006 ....... $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned ................................ $232,120Operating expenses:Wages expense ............................ $100,100Rent expense ............................. 35,000Supplies expense ......................... 4,550Miscellaneous expense .................... 3,150Total operating expenses ............... 142,800 Net income ................................. $ 89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k1-151. b–investing activity2.a–operating activity3. c–financing activity4.a–operating activity1-16a. 2003: $10,209 ($30,011 – $19,802)2002: $8,312 ($26,394 – $18,082)b. 2003: 0.52 ($10,209 ÷ $19,802)2002: 0.46 ($8,312 ÷ $18,082)c. T he ratio of liabilities to stockholders’ equity increased from 2002to 2003, indicating an increase in risk for creditors. However, the assets of The Home Depot are more than sufficient to satisfy creditor claims.Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expense 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15Equipment2. Liabilities21 Accounts Payable22Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41Fees Earned5. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. andb.Account Debited Account Credited Transaction Type Effect Type Effect(1) asset + owner's equity +(2) asset + asset –(3) asset + asset –liability +(4) expense + asset –(5) asset + revenue +(6) liability –asset –(7) asset + asset –(8) drawing + asset –(9) expense + asset –Ex. 2–4(1) Cash ................................... 40,000Ira Janke, Capital .................. 40,000(2) Supplies ............................... 1,800Cash ................................ 1,800(3) Equipment .............................. 24,000Accounts Payable .................... 15,000Cash ................................ 9,000(4) Operating Expenses ..................... 3,050Cash ................................ 3,050(5) Accounts Receivable .................... 12,000Service Revenue ..................... 12,000(6) Accounts Payable ....................... 7,500Cash ................................ 7,500(7) Cash ................................... 9,500Accounts Receivable ................. 9,500(8) Ira Janke, Drawing ..................... 5,000Cash ................................ 5,000(9) Operating Expenses ..................... 1,050Supplies ............................ 1,050 2-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a. Liability—credit f. Revenue—creditb. Asset—debit g. Asset—debitc. Asset—debit h. Expense—debitd. Owner's equity i. Asset—debit(Cindy Yost, Capital)—credit j. Expense—debite. Owner's equity(Cindy Yost, Drawing)—debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf. credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 –$4,000 –$8,000).Such a nega tive balance means that the liabilities of Seth’s business exceed the assets.b. Yes. The balance sheet prepared at December 31 will balance,with Seth Fite, Capital, being reported in the owner’s equity section as a negative $1,500.2-9a. The increase of $28,750 in the cash account does not indicateearnings of that amount. Earnings will represent the net change in all assets and liabilities from operating transactions.b. $7,550 ($36,300 – $28,750)2-10a. $40,550 ($7,850 + $41,850 – $9,150)b. $63,000 ($61,000 + $17,500 – $15,500)c. $20,800 ($40,500 – $57,700 + $38,000)2-112005Aug. 1 Rent Expense ........................... 1,500Cash ................................ 1,5002 Advertising Expense (700)Cash (700)4 Supplies ............................... 1,050Cash ................................ 1,0506 Office Equipment ....................... 7,500Accounts Payable .................... 7,5008 Cash ................................... 3,600Accounts Receivable ................. 3,60012 Accounts Payable ....................... 1,150Cash ................................ 1,15020 Gayle McCall, Drawing .................. 1,000Cash ................................ 1,00025 Miscellaneous Expense (500)Cash (500)30 Utilities Expense (195)Cash (195)31 Accounts Receivable .................... 10,150Fees Earned ......................... 10,15031 Utilities Expense (380)Cash (380)2-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit 2006Oct. 27 Supplies ........................ 15 1,320Accounts Payable .............. 21 1,320 Purchased supplies on account.b.,c.,d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr.Dr. Cr.2006Oct. 1 Balance ................ ..... ..... 585 .....27 ....................... 43 1,320 ..... 1,905 ..... Accounts Payable 21 2006Oct. 1 Balance ................ ..... ..... ..... 6,15027 ....................... 43 ..... 1,320 ..... 7,4702-13Inequality of trial balance totals would be caused by errors described in (b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash ................................. 13,375Accounts Receivable ............................ 24,600Prepaid Insurance .............................. 8,000 Equipment ...................................... 75,000Accounts Payable ............................... 11,180 Unearned Rent .................................. 4,250 Erin Capelli, Capital .......................... 82,420 Erin Capelli, Drawing .......................... 10,000Service Revenue ................................ 83,750 Wages Expense .................................. 42,000 Advertising Expense ............................ 7,200 Miscellaneous Expense .......................... 1,425 181,600 181,6002-15a. Gerald Owen, Drawing ................... 15,000Wages Expense ....................... 15,000b. Prepaid Rent ........................... 4,500Cash ................................ 4,500 2-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999 Amount Percent1. Sales ........................ $37,028 $35,925 $ 1,103 3.1%2. Cost of sales................. (29,658) (28,111) 1,547 5.5%3. Selling, general, and admin.expenses ..................... (7,415) (6,514) 901 13.8%4. Operating income (loss)before taxes.................. $ (45) $ 1,300 $(1,345) (103.5%) b. The horizontal analysis of Kmart Corporation revealsdeteriorating operating results from 1999 to 2000. While salesincreased by $1,103 million, a 3.1% increase, cost of salesincreased by $1,547 million, a 5.5% increase. Selling, general,and administrative expenses also increased by $901 million, a13.8% increase. The end result was that operating incomedecreased by $1,345 million, over a 100% decrease, and createda $45 million loss in 2000. Little over a year later, Kmart filedfor bankruptcy protection. It has now emerged from bankruptcy,hoping to return to profitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid expense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense (801)Supplies (801)3-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated. Net incomewill be overstated.b. Prepaid insurance (or assets) will be overstated. Owner’sequity will be overstated.3-5a.Insurance Expense ............................. 1,215Prepaid Insurance ...................... 1,215 b.Insurance Expense ............................. 1,215Prepaid Insurance ...................... 1,215 3-6Unearned Fees ................................... 9,570Fees Earned ............................ 9,570 3-7a.Salary Expense ................................ 9,360Salaries Payable ....................... 9,360 b.Salary Expense ................................ 12,480Salaries Payable ....................... 12,480 3-8$59,850 ($63,000 – $3,150)3-9$195,816,000 ($128,776,000 + $67,040,000)3-10Error (a) Error (b)Over- Under- Over- Under-stated stated stated stated1. Revenue for the year would be .... $ 0 $6,900 $ 0 $ 02. Expenses for the year would be ... 0 0 0 3,7403. Net income for the year would be . 0 6,900 3,740 04. Assets at December 31 would be ... 0 0 0 05. Liabilities at December 31 would be 6,900 0 0 3,7406. Owner’s equity at December 31would be ......................... 0 6,900 3,740 03-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable ........................... 11,500Fees Earned ............................ 11,500b. No. If the cash basis of accounting is used, revenues arerecognized only when the cash is received. Therefore, earned butunbilled revenues would not be recognized in the accounts, andno adjusting entry would be necessary.3-13a. Fees earned (or revenues) will be understated. Net income willbe understated.b. Accounts (fees) receivable (or assets) will be understated.Owner’s equity will be unde rstated.3-14Depreciation Expense ............................ 5,200Accumulated Depreciation ............... 5,200 3-15a. $204,600 ($318,500 – $113,900)b. No. Depreciation is an allocation of the cost of the equipmentto the periods benefiting from its use. It does not necessarilyrelate to value or loss of value.3-16a. $2,268,000,000 ($5,891,000,000 – $3,623,000,000)b. No. Depreciation is an allocation method, not a valuationmethod. That is, depreciation allocates the cost of a fixed assetover its useful life. Depreciation does not attempt to measuremarket values, which may vary significantly from year to year.3-17a.Depreciation Expense .......................... 7,500Accumulated Depreciation ............... 7,500b. (1) Depreciation expense would be understated. Net income wouldbe overstated.(2) Accumulated depreciation would be understated, and totalassets would be overstated. Owner’s equity would beoverstated.3-181.Accounts Receivable (4)Fees Earned (4)2.Supplies Expense (3)Supplies (3)3.Insurance Expense (8)Prepaid Insurance (8)4.Depreciation Expense (5)Accumulated Depreciation—Equipment (5)5.Wages Expense (1)Wages Payable (1)3-19a. Dell Computer CorporationAmount Percent Net sales $35,404,000 100.0Cost of goods sold (29,055,000) 82.1Operating expenses (3,505,000) 9.9Operating income (loss) $ 2,844,000 8.0 b. Gateway Inc.Amount Percent Net sales $4,171,325 100.0 Cost of goods sold (3,605,120) 86.4 Operating expenses (1,077,447) 25.8 Operating income (loss) $ (511,242) (12.2) c. Dell is more profitable than Gateway. Specifically, Dell’s costof goods sold of 82.1% is significantly less (4.3%) than Gateway’s cost of goods sold of 86.4%. In addition, Gateway’s operating expenses are over one-fourth of sales, while Dell’s operating expenses are 9.9% of sales. The result is that Dell generates an operating income of 8.0% of sales, while Gateway generates a loss of 12.2% of sales. Obviously, Gateway must improve its operations if it is to remain in business and remain competitive with Dell.4-1e, c, g, b, f, a, d4-2a. Income statement: 3, 8, 9b. Balance sheet: 1, 2, 4, 5, 6, 7, 104-3a. Asset: 1, 4, 5, 6, 10b. Liability: 9, 12c. Revenue: 2, 7d. Expense: 3, 8, 114-41. f2. c3. b4. h5. g6. j7. a8. i9. d10. e4–5ITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006AdjustedTrial Balance Adjustments Trial BalanceAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable 50 (a) 7 57 23 Supplies 8 (b) 5 3 34 Prepaid Insurance 12 (c) 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 2 (d) 5 7 78 Accounts Payable 26 26 89 Wages Payable 0 (e) 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing 8 8 1112 Fees Earned 60 (a) 7 67 1213 Wages Expense 16 (e) 1 17 1314 Rent Expense 8 8 1415 Insurance Expense 0 (c) 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense 0 (d) 5 5 1718 Supplies Expense 0 (b) 5 5 1819 Miscellaneous Expense 2 2 1920 Totals 200 200 24 24 213 213 20 ContinueITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006Adjusted Income BalanceTrial Balance StatementSheetAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable 57 57 23 Supplies 3 3 34 Prepaid Insurance 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 7 7 78 Accounts Payable 26 26 89 Wages Payable 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing 8 8 1112 Fees Earned 67 67 1213 Wages Expense 17 17 1314 Rent Expense 8 8 1415 Insurance Expense 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense 5 5 1718 Supplies Expense 5 5 1819 Miscellaneous Expense 2 2 1920 Totals 213 213 49 67 164 146 2021 Net income (loss) 18 182122 67 67 164 164 22 4-6ITHACA SERVICES CO.Income StatementFor the Year Ended January 31, 2006Fees earned .................................... $67Expenses:Wages expense .............................. $17Rent expense (8)Insurance expense (6)Utilities expense (6)Depreciation expense (5)Supplies expense (5)Miscellaneous expense (2)Total expenses ............................49Net income ..................................... $18ITHACA SERVICES CO.Statemen t of Owner’s EquityFor the Year Ended January 31, 2006Terry Dagley, capital, February 1, 2005 ........ $112Net income for the year ........................ $18Less withdrawals (8)Increase in owner’s equity....................10Terry Dagley, capital, January 31, 2006 ........ $122ITHACA SERVICES CO.Balance SheetJanuary 31, 2006Assets LiabilitiesCurrent assets: Current liabilities: Cash ............... $ 8 Accounts payable ... $26Accounts receivable 57 Wages payable (1)Supplies ........... 3 Total liabilities $ 27 Prepaid insurance .. 6Total current assets $ 74Property, plant, and Owner’s E quity equipment: Terry Dagley, capital 122 Land ............... $50Equipment .......... $32Less accum. depr. .. 7 25Total property, plant,and equipment 75 Total liabilities andTotal assets ......... $149 owner’s equity .. $149 4-72006Jan. 31 Accounts Receivable (7)Fees Earned (7)31 Supplies Expense (5)Supplies (5)31 Insurance Expense (6)Prepaid Insurance (6)31 Depreciation Expense (5)Accumulated Depreciation—Equipment .. 531 Wages Expense (1)Wages Payable (1)4-82006Jan. 31 Fees Earned (67)Income Summary (67)31 Income Summary (49)Wages Expense (17)Rent Expense (8)Insurance Expense (6)Utilities Expense (6)Depreciation Expense (5)Supplies Expense (5)Miscellaneous Expense (2)31 Income Summary (18)Terry Dagley, Capital (18)31 Terry Dagley, Capital (8)Terry Dagley, Drawing (8)4-9SIROCCO SERVICES CO.Income StatementFor the Year Ended March 31, 2006Service revenue ................................$103,850Operating expenses:Wages expense .............................. $56,800Rent expense ............................... 21,270Utilities expense .......................... 11,500Depreciation expense ....................... 8,000Insurance expense .......................... 4,100Supplies expense ........................... 3,100Miscellaneous expense ...................... 2,250Total operating expenses ............ 107,020 Net loss ....................................... $ (3,170) 4-10SYNTHESIS SYSTEMS CO.Statement of Owner’s EquityFor the Year Ended October 31, 2006Suzanne Jacob, capital, November 1, 2005 ....... $173,750 Net income for year ............................ $44,250 Less withdrawals ............................... 12,000 Increase in owner’s equity....................32,250Suzanne Jacob, capital, October 31, 2006 ....... $206,0004-11a. Current asset: 1, 3, 5, 6b. Property, plant, and equipment: 2, 44-12Since current liabilities are usually due within one year, $165,000($13,750 × 12 months) would be reported as a current liability onthe balance sheet. The remainder of $335,000 ($500,000 –$165,000)would be reported as a long-term liability on the balance sheet.4-13TUDOR CO.Balance SheetApril 30, 2006Assets LiabilitiesCurrent assets Current liabilities:Cash $31,500 Accountspayable ...................... $9,500Accounts receivable 21,850 Salaries payable1,750Supplies .............. 1,800 Unearned fees .................Prepaid insurance ..... 7,200 Total liabilities Prepaid rent .......... 4,800Total current assets $67,150Owner’s EquityProperty, plant, and equipment: Vernon Posey, capital .............Equipment ........... $80,600Less accumulated depreciation 21,100 59,500 Totalliabilities andTotal assets $126,650 owner’s equity......... $126 4-14Accounts Receivable ............................. 4,100Fees Earned ......................... 4,100 Supplies Expense ....................... 1,300Supplies ............................ 1,300 Insurance Expense ...................... 2,000Prepaid Insurance ................... 2,000 Depreciation Expense ................... 2,800Accumulated Depreciation—Equipment .. 2,800 Wages Expense .......................... 1,000Wages Payable ....................... 1,000 Unearned Rent .......................... 2,500Rent Revenue ........................ 2,5004-15c. Depreciation Expense—Equipmentg. Fees Earnedi. Salaries Expensel. Supplies Expense4-16The income summary account is used to close the revenue and expense accounts, and it aids in detecting and correcting errors. The $450,750 represents expense account balances, and the $712,500 represents revenue account balances that have been closed.4-17a.Income Summary ................................ 167,550Sue Alewine, Capital ................... 167,550 Sue Alewine, Capital ............................ 25,000Sue Alewine, Drawing ................... 25,000 b. $284,900 ($142,350 + $167,550 – $25,000)4-18a. Accounts Receivableb. Accumulated Depreciationc. Cashe. Equipmentf. Estella Hall, Capitali. Suppliesk. Wages Payable4-19a. 2002 2001Working capital ($143,034) ($159,453)Current ratio 0.81 0.80b. 7 Eleven has negative working capital as of December 31, 2002and 2001. In addition, the current ratio is below one at the endof both years. While the working capital and current ratios haveimproved from 2001 to 2002, creditors would likely be concernedabout the ability of 7 Eleven to meet its short-term creditobligations. This concern would warrant further investigationto determine whether this is a temporary issue (for example, anend-of-the-period phenomenon) and the company’s plans toaddress its working capital shortcomings.4-20a. (1) Sales Salaries Expense .................. 6,480Salaries Payable ........................ 6,480(2) Accounts Receivable ..................... 10,250Fees Earned ............................. 10,250 b. (1) Salaries Payable ........................ 6,480Sales Salaries Expense .................. 6,480(2) Fees Earned ............................. 10,250Accounts Receivable ..................... 10,250 4-21a. (1) Payment (last payday in year)(2) Adjusting (accrual of wages at end of year)(3) Closing(4) Reversing(5) Payment (first payday in following year)b. (1) Wages Expense .......................... 45,000Cash .................................... 45,000(2) Wages Expense ........................... 18,000Wages Payable ........................... 18,000(3) Income Summary .......................... 1,120,800Wages Expense ........................... 1,120,800(4) Wages Payable ........................... 18,000Wages Expense ........................... 18,000(5) Wages Expense ........................... 43,000Cash .................................... 43,000 Chapter6（找不到答案，自己处理了哦）Ex. 8–1a. Inappropriate. Since Fridley has a large number of credit salessupported by promissory notes, a notes receivable ledger shouldbe maintained. Failure to maintain a subsidiary ledger whenthere are a significant number of notes receivable transactionsviolates the internal control procedure that mandates proofs and security. Maintaining a notes receivable ledger will allow Fridley to operate more efficiently and will increase the chance that Fridley will detect accounting errors related to the notes receivable. (The total of the accounts in the notes receivable ledger must match the balance of notes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation of duties isviolated. The accounts receivable clerk is responsible for too many related operations. The clerk also has both custody of assets (cash receipts) and accounting responsibilities for those assets.c. Appropriate. The functions of maintaining the accountsreceivable account in the general ledger should be performed by someone other than the accounts receivable clerk.d. Appropriate. Salespersons should not be responsible forapproving credit.e. Appropriate. A promissory note is a formal credit instrumentthat is frequently used for credit periods over 45 days.Ex. 8–2-aa.Customer Due Date Number of Days PastDueJanzen Industries August 29 93 days (2 + 30 + 31+ 30)Kuehn Company September 3 88 days (27 + 31 + 30)Mauer Inc. October 21 40 days (10 + 30)Pollack Company November 23 7 daysSimrill Company December 3 Not past dueEx. 8–3Nov. 30 Uncollectible Accounts Expense ......... 53,315*Allowances for Doubtful Accounts..... 53,315 *$60,495 – $7,180 = $53,315Ex. 8–4Estimated Uncollectible Accounts Age Interval Balance Percent AmountNot past due .............. $450,000 2% $ 9,0001–30 days past due ....... 110,000 4 4,40031–60 days past due ...... 51,000 6 3,06061–90 days past due ...... 12,500 20 2,50091–180 days past due ..... 7,500 60 4,500Over 180 days past due .... 5,500 80 4,400 Total .................. $636,500 $27,860Ex. 8–52006Dec. 31 Uncollectible Accounts Expense ......... 29,435*..... Allowance for Doubtful Accounts 29,435 *$27,860 + $1,575 = $29,435Ex. 8–6a. $17,875 c. $35,750b. $13,600 d. $41,450Ex. 8–7a.Allowance for Doubtful Accounts ............... 7,130Accounts Receivable .................... 7,130b.Uncollectible Accounts Expense ................ 7,130Accounts Receivable .................... 7,130Ex. 8–8Feb. 20 Accounts Receivable—Darlene Brogan .... 12,100Sales ............................... 12,10020 Cost of Merchandise Sold ............... 7,260Merchandise Inventory ............... 7,260 May 30 Cash ................................... 6,000Accounts Receivable—Darlene Brogan .. 6,00030 Allowance for Doubtful Accounts ........ 6,100Accounts Receivable—Darlene Brogan .. 6,100 Aug. 3 Accounts Receivable—Darlene Brogan .... 6,100Allowance for Doubtful Accounts ..... 6,1003 Cash ................................... 6,100Accounts Receivable—Darlene Brogan .. 6,100 Ex. 8–9$223,900 [$212,800 + $112,350 –($4,050,000 × 2 1/2%)]Ex. 8–10Due Date Interesta. Aug. 31 $120b. Dec. 28 480c. Nov. 30 250d. May 5 150e. July 19 100a. August 8b. $24,480c. (1) Notes Receivable .......................... 24,000Accounts Rec.—Magpie Interior Decorators 24,0(2) Cash ...................................... 24,480Notes Receivable ....................... 24,000Interest Revenue (480)Ex. 8–121. Sale on account.2. Cost of merchandise sold for the sale on account.3. A sales return or allowance.4. Cost of merchandise returned.5. Note received from customer on account.6. Note dishonored and charged maturity value of note tocustomer’s account recei vable.7. Payment received from customer for dishonored note plus interestearned after due date.。
会计专业英文笔试题及答案
会计专业英文笔试题及答案一、选择题（每题2分，共20分）1. What is the primary purpose of financial statements?A. To provide information for decision-makingB. To promote the company's imageC. To comply with tax regulationsD. To attract investors答案：A2. Which of the following is not a fundamental accounting principle?A. Going concernB. Historical costC. Accrual basis of accountingD. Cash basis of accounting答案：D3. The matching principle is used to:A. Match expenses with the revenues they generateB. Match assets with the liabilities they generateC. Match revenues with the assets they generateD. Match liabilities with the expenses they generate答案：A4. What is the formula for calculating return on investment (ROI)?A. ROI = Net Income / Total AssetsB. ROI = (Net Income / Sales) * 100C. ROI = (Return on Sales + Return on Assets) / 2D. ROI = (Net Income / Average Investment) * 100答案：D5. Which of the following is not a type of depreciation method?A. Straight-lineB. Double-declining balanceC. Units of productionD. FIFO (First-In, First-Out)答案：D二、简答题（每题5分，共30分）6. Define "Double-Entry Accounting" and explain its importance in maintaining the integrity of financial records.答案：Double-entry accounting is a system of accounting where every transaction is recorded twice, once as a debit and once as a credit. This system ensures that the accounting equation remains balanced and helps in maintaining the integrity of financial records by providing a check and balance mechanism to prevent errors and fraud.7. Explain the difference between "Liabilities" and "Equity".答案：Liabilities are obligations of a company to pay cash, provide services, or give up assets to other entities in the future. They represent the company's debts and are a source of funds that the company is obligated to repay. Equity, on the other hand, represents the ownership interest of the shareholders in the company. It is the residual interest in the assets of the company after deducting liabilities.8. What is the purpose of "Financial Statement Analysis"?答案：The purpose of financial statement analysis is to assess the financial health and performance of a company. It involves evaluating the company's liquidity, profitability, solvency, and efficiency. This analysis helps investors, creditors, and other stakeholders make informed decisions about the company.9. Describe the "Balance Sheet" and its components.答案：The balance sheet is a financial statement that presents the financial position of a company at a specific point in time. It includes assets, liabilities, and equity. Assets are what the company owns, liabilities are what the company owes, and equity is the net worth of the company, calculated as assets minus liabilities.10. What is "Cash Flow Statement" and why is it important?答案：The cash flow statement is a financial statement that provides information about the cash inflows and outflows of a company over a period of time. It is important because it shows the company's ability to generate cash and meet its financial obligations, which is crucial for the survival and growth of the business.三、案例分析题（每题25分，共50分）11. Assume you are a financial analyst for a company. The company has reported the following financial data for the current year:- Sales: $500,000- Cost of Goods Sold: $300,000- Operating Expenses: $100,000- Depreciation: $20,000- Interest Expense: $10,000- Taxes: $30,000Calculate the company's net income.答案：Net Income = Sales - Cost of Goods Sold - Operating Expenses - Depreciation - Interest Expense - TaxesNet Income = $500,000 - $300,000 - $100,000 - $20,000 - $10,000 - $30,000Net Income = $50,00012. A company is considering purchasing a new machine for $100,000. The machine is expected to generate additional annual revenue of $30,000 and will have annual operating costs of $15,000. The machine is expected to last for 5 years and will have no residual value. Calculate the payback period for the machine.答案：Payback Period = Initial Investment / Annual Cash Inflow Annual Cash Inflow = Additional Revenue。
会计英语练习题及答案
会计英语练习题及答案《会计英语》练习题及答案⼀、单选题1. Which of the following statements about accounting concepts or assumptions are correct? 1） The money measurement assumption is that items in accounts are initially measured at their historical cost.2）In order to achieve comparability it may sometimes be necessary to override the prudence concept.3） To facilitate comparisons between different entities it is helpful if accounting policies and changes in them are disclosed. 4）To comply with the law, the legal form of a transaction must always be reflected in financial statements.A 1 and 3B 1 and 4C 3 onlyD 2 and 32.Johnny had receivables of $5 500 at the start of 2010. During the year to 31 Dec 2010he makes credit sales of $55 000 and receives cash of $46 500 from credit customers. What is the balance on the accounts receivables at 31 Dec 2010?A.$8 500 DrB.$8 500 CrC.$14 000 DrD.$14 000 Cr3.Should dividends paid appear on the face of a company’s cash flow statement?A. YesB. NoC. Not sureD. Either4.Which of the following inventory valuation methods is likely to lead to the highestfigure for closing inventory at a time when prices are dropping?A. Weighted Average costB. First in first out (FIFO)C. Last in first out (LIFO)D. Unit cost5. Which of following items may appear as non-current assets in a company’s the statement of financial position?(1) plant, equipment, and property(2) company car(3) €4000 cash(4) €1000 chequeA. (1), (3)B. (1), (2)C. (2), (3)D. (2), (4)6. Which of the following items may appear as current liabilities in a company’s balance sheet?(1) investment in subsidiary(2) Loan matured within one year.(3) income tax accrued untill year end.(4) Preference dividend accruedA (1), (2) and (3)B (1), (2) and (4)C (1), (3) and (4)D (2), (3) and (4)7. The trial balance totals of Gamma at 30 September 2010 are:Debit $992,640Credit $1,026,480Which TWO of the following possible errors could, when corrected, cause the trial balance to agree?1. An item in the cash book $6,160 for payment of rent has not been entered in the rent payable account.2. The balance on the motor expenses account $27,680 has incorrectly been listed in the trial balance as a credit.3. $6,160 proceeds of sale of a motor vehicle has been posted to the debit of motor vehicles asset account.4. The balance of $21,520 on the rent receivable account has been omitted from the trial balance.A 1 and 2B 2 and 3C 2 and 4D 3 and 48. Listed below are some characteristics of financial information.(1) True(2) Prudence(3) Completeness(4) CorrectWhich of these characteristics contribute to reliability?A (1), (3) and (4) onlyB (1), (2) and (4) onlyC (1), (2) and (3) onlyD (2), (3) and (4) only9. Which of the following statements are correct?(1) to be prudent, company charge depreciation annually on the fixed asset(2) substance over form means that the commercial effect of a transaction must always be shown in the financial statements even if this differs from legal form(3) in order to achieve the comparable, items should be treated in the same way year on yearA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only10. which of the following about accruals concept are correct?(1) all financial statements are based on the accruals concept(2) the underlying theory of accruals concept and matching concept are same(3) accruals concept deals with any figure that incurred in the period irrelevant with it’s paid or notA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only⼆、翻译题1、将下列分录翻译成英⽂1.借：固定资产清理 30 000累计折旧 10 000贷：固定资产 40 0002．借：应付票据 40 000贷：银⾏存款 40 0002、将下列词组按要求翻译（中翻英，英翻中）(1) 零⽤资⾦(2) 本票(3) 试算平衡(4) 不动产、⼚房和设备(5) Notes and coins(6) money order(7) general ledger(8) direct debt(9) 报销(10) revenue and gains三、业务题Johnny set up a business and in the first a few days of trading the following transactions occurred (ignore all the tax):1)He invests $80 000 of his money in his business bank account2)He then buys goods from Isabel, a supplier for $4 000 and pays by cheque, the goods isdelivered right after the payment3) A sale is made for $3 000 –the customer pays by cheque4)Johnny makes another sale for $2 000 and the customer promises to pay in the future5)He then buys goods from another supplier, Kamen, for $2 000 on credit, goods isdelivered on time6)He pays a telephone bill of $800 by cheque7)The credit customer pays the balance on his account8)He returened some faulty goods to his supplier Kamen, which worth $400.9)Bank interest of $70 is received10)A cheque customer returned $400 goods to him for a refund参考答案1、单选题1-5 CCACB 6-10 DCABA2、翻译题1）中翻英1.Dr disposal of fixed assetDepreciationCr fixed asset2．Dr notes payableCr bank4、业务题1)Dr CashCr capital2)Dr finished goodsCr Cash3)Dr CashCr sales revenue4)Dr accounts receivableCr sales revenue5)Dr finished goodsCr accounts receivable6)Dr administrative expenseCr Cash7)Dr CashCr accounts receivable 8)Dr CashCr finished goods9)Dr CashCr financial expense 10)Dr sales revenue Cr Cash。
会计专业英语试题及答案
会计专业英语试题及答案一、选择题（每题2分，共20分）1. Which of the following is not an accounting principle?A. Accrual BasisB. Going ConcernC. ConsistencyD. Cash BasisAnswer: D2. The process of summarizing, analyzing, and reporting financial data is known as:A. BudgetingB. AccountingC. AuditingD. TaxationAnswer: B3. What is the term used to describe the systematic and periodic recording of financial transactions?A. BookkeepingB. PayrollC. TaxationD. AuditingAnswer: A4. Which of the following is not a component of the balance sheet?A. AssetsB. LiabilitiesC. EquityD. RevenueAnswer: D5. The matching principle requires that:A. Expenses are recognized when incurredB. Expenses are recognized when paidC. Expenses are recognized in the same period as the revenue they generateD. Expenses are recognized when the cash is received Answer: C6. The accounting equation is:A. Assets = Liabilities + EquityB. Assets - Liabilities = EquityC. Assets + Equity = LiabilitiesD. Assets = Equity - LiabilitiesAnswer: A7. The term "double-entry bookkeeping" refers to the practice of:A. Recording transactions twiceB. Recording transactions in two accountsC. Recording debits and credits for every transactionD. Recording transactions in two different booksAnswer: C8. Which of the following is not a type of intangible asset?A. PatentsB. TrademarksC. GoodwillD. InventoryAnswer: D9. The purpose of an income statement is to show:A. The financial position of a company at a point in timeB. The changes in equity over a period of timeC. The financial performance of a company over a period of timeD. The cash flows of a company over a period of time Answer: C10. The statement of cash flows is used to report:A. How cash is generated and used during a periodB. The net income of a company for a periodC. The changes in equity for a periodD. The changes in assets and liabilities for a period Answer: A二、填空题（每题2分，共20分）1. The accounting cycle includes the following steps:journalizing, posting, __________, adjusting entries, and closing entries.Answer: trial balance2. The __________ principle requires that all business transactions should be recorded at their fair value in the accounting records.Answer: Fair Value3. The __________ is a summary of all the journal entries fora period, listed in date order.Answer: General Journal4. __________ are expenses that have been incurred but not yet paid.Answer: Accrued Expenses5. The __________ is a report that shows the beginning cash balance, cash receipts, cash payments, and the ending cash balance for a period.Answer: Cash Flow Statement6. The __________ ratio is calculated by dividing current assets by current liabilities.Answer: Current Ratio7. __________ are assets that are expected to be converted into cash or used up within one year or one operating cycle. Answer: Current Assets8. __________ is the process of determining the cost of goodssold and the value of ending inventory.Answer: Costing9. __________ is the process of estimating the useful life of an asset and allocating its cost over that period.Answer: Depreciation10. __________ is the process of adjusting the accounts to reflect the proper revenue and expenses for the period. Answer: Accrual Accounting三、简答题（每题10分，共20分）1. Explain the difference between revenue and profit. Answer: Revenue is the income generated from the normal business activities of an entity during a specific period, before deducting expenses. Profit, on the other hand, is the excess of revenues and gains over expenses and losses for a period. It represents the net income or net earnings of a business.2. What are the main components of a balance sheet?Answer: The main components of a balance sheet are assets, liabilities, and equity. Assets represent what a company owns or controls with future economic benefit. Liabilities are obligations or debts that a company owes to others. Equity is the residual interest in the assets of the entity after deducting all its liabilities, representing the ownership interest of the shareholders.四、计算题（每题15分，共30分）1. Calculate the net income for the year if the revenue is$500,000, the cost of goods sold is $300,000, operating expenses are $80,000, and other expenses are $20,000. Answer: Net Income = Revenue - Cost of Goods Sold - Operating。
会计专业英语试题含答案
注意：请将所有答案手写在答题纸上！Ⅰ. Identify true (T) or false (F) statements (12X1′=12′)F . 1. An income statement is a summary of the revenues and expenses of a business as of a specific date.T 2. Accounting is thought to be the “language of business”because business information is communicated to stakeholders.F 3. If a building is appraised for $90,000, offered for sale at $95,000, and the buyer pays $85,000 cash for it, the buyer would record the building at $90,000.F 4. Cash equivalents are short-term highly liquid investment assets that are readily converted to a known cash amount, and have maturities of one year.F 5. For good internal control over cash, all payments should be made from the petty cash, except for very large payments.T 6. The aging method of determining bad debts expense is based on the knowledge that the longer a receivable is past due, the lower the likelihood of collection.F 7. Land improvements are generally charged to the Land account.T 8. Recording depreciation each period is an application of the matching principle.T 9. The cost of an inventory item includes its invoice cost minus any discount, and plus any added or incidental costs necessary to put it in a place and condition for sale.T 10. A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.F 11. Whether purchase costs are rising or falling, FIFO always will yield the highest gross profit and net income.T 12. If the perpetual inventory system is used and a physical count disclosed a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited.Ⅱ. Insert “+” for increase and “-”for decrease in the appropriate columns below, based on double-entry bookkeeping rules (6X2′=12′)Ⅲ. Translate the accounting terms from English to Chinese (No. 1-6) and from Chinese to English (No. 7-10) (10X2′=20′)1. General journal （总分类账）2. Accounting elements （会计要素）3. Closing entries（结账分录）4. CICPA（中国注册会计师协会）5. Net realizable value（可变现净值）6. Accrual-basis accounting （应计制会计）7. 非流动负债（non-current liabilities）8. 历史成本（Historical cost）9. 分类账（ledger）10. 经营周期（Operating cycle）Ⅳ. Short answer questions (3X6′=18′)1.What is accounting?Accounting may be described as the process of identifying, measuring, recording,and communicating economic information to permit informed judgments anddecisions by users of that information2.What is depreciation of plant assets? What is the basic purpose of depreciation?Depreciation, as the term is used in accounting, is the allocation of the cost of atangible plant asset to expense in the periods in which services are received from theasset. In short, the basic purpose of depreciation is to achieve the matching principlethat is, to offset the revenue of an accounting period with the costs of the goodsand services being consumed in the effort to generate that revenue.3.Identify the tools of financial statement analysis.The analysis of financial data employs various techniques to emphasize thecomparative and relative significance of the data presented and to evaluate theposition of the firm. Three commonly used tools are as following.Horizontal analysisevaluates a series of financial statement data over a periodof time.Verticalanalysis evaluates financial statement data by expressing each item in afinancial statement as a percent of a base amount.Ratio analysisexpresses the relationship among selected items of financialstatement data.Ⅴ. Problem Solving (38′)1. Analyze the effects of business transactions on the Accounting Equation. (2X5′=10′)Transaction (1): paid a $6,500 premium on July 1 for one year’s insurance in advance.Transaction (2): bought office equipment from Brown Company on account $2,800.2. Prepare journal entries for the two transactions in No. 1 above-mentioned. (2X5′=10′)3. Samuel Co. Ltd issued a $15,000, 6%, 9-month note payable. How much is the interest payment at maturity?(Calculating process is required) (6′)4. Assume the financial position data of Sue Company consist of the following items: (2X6′=12′)Sue CompanyBalance Sheet (Partial)January 31, 2011Required: Calculate its current ratio and acid-test ratio. Calculating steps are needed.。
《会计专业英语》习题答案人大版Chapter 5
Chapter 5 LiabilitiesAnswers to Multiple Choice QuestionsAnswers to Discussion Questions1. a. Receiving goods and services prior to making paymentb. Receiving payment prior to delivering goods and services2. Short-term notes payable may be issued to purchase merchandise or other assets or to satisfy an account payable created earlier.3. To match revenues and expenses properly, the liability to cover product warranties should be recorded in the period during which the sale of the product is made.4. When the defective product is repaired, the repair costs would be recorded by debiting Provisions-Warranties and crediting Cash, Supplies, or another appropriate account.5. Liabilities are debts or obligations arising from past transactions or events, and which require settlement at a future date. Liabilities and owners’ equity are the two primary means by which a business finances ownership of its assets and its business operations.The feature which most distinguishes liabilities from equity is that liabilities mature and must be paid at some future date, whereas owners’ equity does not. In the event of liquidation of the business, the claims of creditors (liabilities) have priorityover the claims of owners (equity). Also, interest paid to creditors is deductible in the determination of taxable income, whereas dividends paid to stockholders are not deductible.6. In the event of liquidation of a business, the claims of creditors (liabilities) have priority over the claims of owners (equity). The relative priorities of individual creditors, however, vary greatly. Secured creditors have top priority with respect to proceeds stemming from the sale of the specific assets that have been pledged as collateral securing their loans. The priority of unsecured creditors is determined by legal statutes and indenture contracts.7. Current liabilities are those maturing within one year or the company’s operating cycle (whichever is longer) and expected to be paid from current assets. Liabilities classified as long-term include obligations maturing more than one year in the future, and also shorter term obligations that will be refinanced or paid from noncurrent assets.A 10-year bond issue would be classified as a current liability once its due date comes within 12 months of the maturity date, assuming that the issue will be paid from current assets.A note payable maturing in 30 days could be classified as a long-term liability if (a) management had both the intent and the ability to refinance this obligation on a long-term basis, or (b) the liability will be paid from noncurrent assets.8. Employers are required by law to pay the following payroll taxes and insurance premiums: Social Security and Medicare taxes, unemployment taxes, and workers’ compensation insurance premiums. In addition, many employers include the following as part of the “compensation package” provided to employees: group health insurance premiums, contributions to employee pension plans, and postretirement benefits (such as health insurance). Both mandated and discretionary costs are included as part of total payroll cost in addition to the wages and salaries earned by employees.9. From an investor’s perspective, a bond represents a series of futur e cash receipts that are fixed in amount by the contract rate of interest on the bonds and bythe bonds’ maturity value. As market interest rates rise, a series of future receipts that are fixed in dollar amount become less attractive in relation to other investment opportunities, and the price of the bond falls. As interest rates fall, any series of fixed cash receipts become more attractive in relation to other opportunities, and bond prices rise.10. Bonds with contract rates of interest above current market interest rates should be trading at prices above their face values. Bond prices vary inversely with market interest rates.11. Estimated liabilities have two basic characteristics: (1) the liability is known to exist at the balance sheet date and (2) the precise dollar amount cannot be determined until a later date. Examples include the liability to honor warranties on products sold and an accrual of a liability relating to a loss contingency.12. A loss contingency is a possible loss (or expense) stemming from past events that will be resolved as to existence and amount by some future event. Examples include pending litigation, the allowance for uncollectible accounts, and the risk that the political climate in foreign countries has impaired the value of assets in those locations.Loss contingencies are accrued (recorded) if it is both (1) probable that a loss has been incurred, and (2) the amount of loss can be estimated reasonably. Even if these conditions are not met, loss contingencies should be disclosed in financial statements if it is reasonably possible that a material loss has been incurred.Answers to ProblemsProblem 5-2Problem 5-3Notes Receivable 60,000Interest Revenue 500Problem 5-4Nov. 1 Merchandise Inventory 30,000Accounts Payable 30,000Dec. 1 Accounts Payable 30,000Short-Term Notes Payable 30,00031 Financial Expenses-Interest Expenses 125Interest Payable 125Mar. 1 Short-Term Notes Payable 30,000Financial Expenses-Interest Expenses 250Interest Payable 125Cash 30,375Problem 5-5Jun. 30 Fixed Assets 230,000Notes Payable 180,000Cash 50,000Dec. 31 Notes Payable 36,000Financial Expenses-Interest Expenses 4,500Cash 40,500Jun. 30 Notes Payable 36,000Financial Expenses-Interest Expenses 360Cash 39,600Problem 5-61. The contingent liability should not be accrued because the loss is not probable, but should be disclosed in the notes to the financial statements the existence of a possible contingent liability related to the law suit and the range of the possible loss.2.Dec. 31 Administration Expenses 600,000Provisions- Pending Litigation 600,000 The accrual is made because it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The lowest amount of the range of possible losses is used when no amount is a better estimate than any other amount.Tom Co. should disclose the following in the notes to the financial statements: the amount of the suit, the nature of the contingency, the reason for the accrual, and the range of the possible loss.3. Peter should not record the gain contingency until it’s realized. Usually, gain contingencies are neither accrued nor disclosed. The $1,000,000 gain contingency should be disclosed only if the probability that it will be realized is very high.Problem 5-7Problem 5-8Problem 5-92019 Jan. 1 Fixed Assets 3,559Discount on Note Payable 1,441Note Payable 5,0002019 Dec. 31 Financial Expenses-Interest Expenses 427.08Discount on Note Payable 427.082020 Dec. 31 Financial Expenses-Interest Expenses 478.33Discount on Note Payable 478.33Discount on Note Payable 535.732022 Jan. 1 Note Payable 5,000Cash 5,0004.The present value of the interest and principal payments is $27,118The entries to record this note would be as follows.2019 Jan. 1 Fixed Assets 27,118Discount on Note Payable 2,882Note Payable 30,000 2019 Dec. 31 Financial Expenses-Interest Expenses 3,254Discount on Note Payable 854Cash 2,400 2020 Dec. 31 Financial Expenses-Interest Expenses 3,357Discount on Note Payable 957Cash 2,400 2021 Dec. 31 Financial Expenses-Interest Expenses 3,471Discount on Note Payable 1,071Cash 2,400 2022 Jan. 1 Note Payable 30,000Cash 30,000Problem 5-101 Cash 4,434,676Discount on Bonds 565,324。
会计专业英语习题答案.doc
Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: "The company covered up the first report, and the local newspaper uncovered the company's secret. The company was forced to not locate here (Collier County). It became patently clear that doing the least that is legally allowed is not enough."1-21. B2. B3. E4. F5. B6. F7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 – $15,000)c. $19,500 ($37,000 – $17,500)1-4a. $275,000 ($475,000 – $200,000)b. $310,000 ($275,000 + $75,000 – $40,000)c. $233,000 ($275,000 – $15,000 – $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 – $105,000 – $275,000) 1-5a. owner's equityb.liabilityc.assetd.assete.owner'sequity f. asset1-6a. Increases assets and increases owner’s equity.b. Increases assets and increases owner’s equity.c. Decreases assets and decreases owner’s equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase2. decrease3.increase4. decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 – $4,400)c. $5,600 ($64,100 – $58,500)d. $7,600 ($25,000 – $16,000 – $1,400)e. $5,600 ($7,600 – $2,000)1-9It would be incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owner’s EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006 ...... $297,200 Net income for the month ................ $73,000Less withdrawals ........................... 12,000Increase in owner’s equity................ 61,000 Leo Perkins, capital, April 30, 2006 .... $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned ................................ $232,120 Operating expenses:Wages expense .......................... $100,100Rent expense ............................. 35,000Supplies expense ........................ 4,550Miscellaneous expense.................. 3,150Total operating expenses ............. 142,800 Net income .................................. $89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k1-151. b–investing activity2.a–operating activity3. c–financing activity4.a–operating activity1-16a. 2003: $10,209 ($30,011 – $19,802)2002: $8,312 ($26,394 – $18,082)b. 2003: 0.52 ($10,209 ÷ $19,802)2002: 0.46 ($8,312 ÷ $18,082)c. The ratio of liabilities to stockholders’ equity increased from2002 to 2003, indicating an increase in risk for creditors.However, the assets of The Home Depot are more than sufficient to satisfy creditor claims.Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expense 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15Equipment2. Liabilities21 Accounts Payable22Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41Fees Earned5. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. andb.Account Debited Account Credited Transaction T ype Effect Type Effect(1) asset + owner's equity +(2) asset + asset –(3) asset + asset –liability +(4) expense + asset –(5) asset + revenue +(6) liability –asset –(7) asset + asset –(8) drawing + asset –(9) expense + asset –Ex. 2–4(1) Cash...................................... 40,000Ira Janke, Capital ................... 40,000 (2) Supplies ................................. 1,800Cash................................... 1,800 (3) Equipment ............................... 24,000Accounts Payable ................... 15,000Cash................................... 9,000 (4) Operating Expenses ................... 3,050Cash................................... 3,050 (5) Accounts Receivable .................. 12,000Service Revenue ..................... 12,000 (6) Accounts Payable ...................... 7,500Cash................................... 7,500 (7) Cash...................................... 9,500Accounts Receivable ............... 9,500 (8) Ira Janke, Drawing ..................... 5,000Cash................................... 5,000 (9) Operating Expenses ................... 1,050Supplies .............................. 1,0502-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a. Liability—credit f. Revenue—creditb. Asset—debit g. Asset—debitc. Asset—debit h. Expense—debitd. Owner's equity i. Asset—debit(Cindy Yost, Capital)—credit j. Expense—debite. Owner's equity(Cindy Yost, Drawing)—debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf. credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 – $4,000– $8,000). Such a negative balance means that the liabilities of Seth’s business exceed the a ssets.b. Y es. The balance sheet prepared at December 31will balance, with Seth Fite, Capital, being reported in the owner’s equity section as a negative $1,500.2-9a. T he increase of $28,750 in the cash account doesnot indicate earnings of that amount. Earnings will represent the net change in all assets and liabilities from operating transactions.b. $7,550 ($36,300 – $28,750)2-10a. $40,550 ($7,850 + $41,850 – $9,150)b. $63,000 ($61,000 + $17,500 – $15,500)c. $20,800 ($40,500 – $57,700 + $38,000)2-112005Aug.1 Rent Expense ........................... 1,500Cash................................... 1,5002 Advertising Expense (700)Cash (700)4 Supplies ................................. 1,050Cash................................... 1,0506 Office Equipment ....................... 7,500Accounts Payable ................... 7,5008 Cash...................................... 3,600Accounts Receivable ............... 3,60012 Accounts Payable ...................... 1,150Cash................................... 1,15020 Gayle McCall, Drawing ................ 1,000Cash................................... 1,00025 Miscellaneous Expense (500)Cash (500)30 Utilities Expense (195)Cash (195)31 Accounts Receivable .................. 10,150Fees Earned ......................... 10,15031 Utilities Expense (380)Cash (380)2-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit 2006Oct.27 Supplies .......................... 15 1,320Accounts Payable ............ 21 1,320Purchased supplies on account.b.,c.,d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr.Dr. Cr.2006Oct. 1 Balance ................ ✓...... ...... 585 ......27 .......................... 43 1,320 ...... 1,905 ...... Accounts Payable 21 2006Oct. 1 Balance ................ ✓...... ...... ..... 6,15027 .......................... 43 ...... 1,320 ..... 7,4702-13Inequality of trial balance totals would be caused by errors described in (b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash ........................................... 13,375 Accounts Receivable .......................... 24,600Prepaid Insurance .............................. 8,000 Equipment ...................................... 75,000 Accounts Payable .............................. 11,180 Unearned Rent ................................. 4,250 Erin Capelli, Capital ........................... 82,420 Erin Capelli, Drawing .......................... 10,000Service Revenue ................................ 83,750 Wages Expense ................................ 42,000 Advertising Expense ........................... 7,200 Miscellaneous Expense ....................... 1,425 181,600 181,6002-15a. Gerald Owen, Drawing ................ 15,000Wages Expense ..................... 15,000b. Prepaid Rent ............................ 4,500Cash................................... 4,5002-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999 Amount Percent1. Sales .......................... $37,028 $35,925 .......................... $ 1,1033.1%2. Cost of sales ................ (29,658)(28,111) ......................... 1,5475.5%3. Selling, general, and admin.expenses ..................... (7,415) (6,514) 901 13.8%4. Operating income (loss)before taxes ................. $ (45) $1,300$(1,345)(103.5%)b. The horizontal analysis of Kmart Corporation revealsdeteriorating operating results from 1999 to 2000.While sales increased by $1,103 million, a 3.1%increase, cost of sales increased by $1,547 million, a5.5% increase. Selling, general, and administrativeexpenses also increased by $901 million, a 13.8%increase. The end result was that operating incomedecreased by $1,345 million, over a 100% decrease,and created a $45 million loss in 2000. Little over ayear later, Kmart filed for bankruptcy protection. It hasnow emerged from bankruptcy, hoping to return toprofitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid expense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense (801)Supplies (801)3-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated.Net income will be overstated.b. Prepaid insurance (or assets) will be overstated.Owner’s equity will be ove rstated.3-5a.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,215 b.Insurance Expense ............................ 1,215Prepaid Insurance ...................... 1,2153-6Unearned Fees ................................... 9,570Fees Earned ............................ 9,5703-7a.Salary Expense ................................ 9,360Salaries Payable ........................ 9,360 b.Salary Expense ................................ 12,480Salaries Payable ........................ 12,480 3-8$59,850 ($63,000 – $3,150)3-9$195,816,000 ($128,776,000 + $67,040,000)3-10Error (a) Error (b)Over- Under- Over-Under-stated stated stated stated1. Revenue for the year would be $ 0 $6,900 $ 0 $ 02. Expenses for the year would be 0 0 0 3,7403. Net income for the year would be 0 6,900 3,740 04. Assets at December 31 would be 0 0 0 05. Liabilities at December 31 would be 6,900 0 0 3,7406. Owner’s equity at December 31would be ......................... 0 6,900 3,740 03-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable .......................... 11,500Fees Earned ............................ 11,500b. No. If the cash basis of accounting is used, revenuesare recognized only when the cash is received.Therefore, earned but unbilled revenues would not berecognized in the accounts, and no adjusting entrywould be necessary.3-13a. Fees earned (or revenues) will be understated. Netincome will be understated.b. Accounts (fees) receivable (or assets) will beunderstated. Owner’s equity will be unde rstated.3-14Depreciation Expense ........................... 5,200Accumulated Depreciation ............ 5,200 3-15a. $204,600 ($318,500 – $113,900)b. No. Depreciation is an allocation of the cost of theequipment to the periods benefiting from its use. Itdoes not necessarily relate to value or loss of value.3-16a. $2,268,000,000 ($5,891,000,000 – $3,623,000,000)b. No. Depreciation is an allocation method, not avaluation method. That is, depreciation allocates thecost of a fixed asset over its useful life. Depreciationdoes not attempt to measure market values, whichmay vary significantly from year to year.3-17a.Depreciation Expense ......................... 7,500Accumulated Depreciation ............ 7,500 b. (1) D epreciation expense would be understated. Netincome would be overstated.(2) A ccumulated depreciation would be understated,and total assets would be overstated. Owner’sequity would be overstated.3-181.Accounts Receivable (4)Fees Earned (4)2.Supplies Expense (3)Supplies (3)3.Insurance Expense (8)Prepaid Insurance (8)4.Depreciation Expense (5)Accumulated Depreciation—Equipment 5 5.Wages Expense (1)Wages Payable (1)3-19a. Dell Computer CorporationAmount Percent Net sales $35,404,000 100.0Cost of goods sold (29,055,000) 82.1Operating expenses (3,505,000) 9.9Operating income (loss) $2,844,000 8.0b. Gateway Inc.Amount Percent Net sales $4,171,325 100.0Cost of goods sold (3,605,120) 86.4Operating expenses (1,077,447) 25.8Operating income (loss) $(511,242)(12.2)c. Dell is more profitable than Gateway. Specifically,Dell’s cost of goods sold of 82.1% is significantly less(4.3%) than Gateway’s cost of goods sold of 86.4%.In addition, Gateway’s operating expenses are over one-fourth of sales, while Dell’s operating expenses are 9.9% of sales. The result is that Dell generates an operating income of 8.0% of sales, while Gateway generates a loss of 12.2% of sales. Obviously, Gateway must improve its operations if it is to remain in business and remain competitive with Dell.4-1e, c, g, b, f, a, d4-2a. Income statement: 3, 8, 9b. Balance sheet: 1, 2, 4, 5, 6, 7, 104-3a. Asset: 1, 4, 5, 6, 10b. Liability: 9, 12c. Revenue: 2, 7d. Expense: 3, 8, 114-41. f2. c3. b4. h5. g6. j7. a8. i9. d10. e4–5ITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006AdjustedTrial Balance Adjustments TrialBalanceAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable50 (a) 7 57 23 Supplies 8 (b) 5 3 34 Prepaid Insurance 12 (c) 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 2 (d) 5 7 78 Accounts Payable 26 26 89 Wages Payable 0 (e) 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 60 (a) 7 67 1213 Wages Expense 16 (e) 1 17 1314 Rent Expense 8 8 1415 Insurance Expense 0 (c) 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense0 (d) 5 5 1718 Supplies Expense 0 (b) 5 5 1819 Miscellaneous Expense 2 2 120 Totals 200 200 24 24 213 2 ContinueITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006Adjusted Income BalanceTrial Balance StatementSheetAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1 Cash 8 8 12 Accounts Receivable57 57 23 Supplies 3 3 34 Prepaid Insurance 6 6 45 Land 50 50 56 Equipment 32 32 67 Accum. Depr.—Equip. 7 7 78 Accounts Payable 26 26 89 Wages Payable 1 1 910 Terry Dagley, Capital 112 112 1011 Terry Dagley, Drawing8 8 1112 Fees Earned 67 67 1213 Wages Expense 17 17 1314 Rent Expense 8 8 1415 Insurance Expense 6 6 1516 Utilities Expense 6 6 1617 Depreciation Expense5 5 1718 Supplies Expense 5 5 1819 Miscellaneous Expense 2 2 120 Totals 213 213 49 67 164 146 2021 Net income (loss) 18 18 2122 67 67 164 164 224-6ITHACA SERVICES CO.Income StatementFor the Year Ended January 31, 2006Fees earned .................................... $67Expenses:Wages expense ............................ $17Rent expense (8)Insurance expense (6)Utilities expense (6)Depreciation expense (5)Supplies expense (5)Miscellaneous expense (2)Total expenses ...........................49Net income ...................................... $18ITHACA SERVICES CO.Statement of Owner’s EquityFor the Year Ended January 31, 2006 Terry Dagley, capital, February 1, 2005 .... $112 Net income for the year ....................... $18 Less withdrawals . (8)Increase in owner’s equity....................10Terry Dagley, capital, January 31, 2006 ... $122ITHACA SERVICES CO.Balance SheetJanuary 31, 2006Assets LiabilitiesCurrent assets: Current liabilities:Cash ............... $ 8 Accounts payable $26 Accounts receivable 57 .. Wages payable 1 Supplies ........... 3 Total liabilities . $ 27 Prepaid insurance 6Total current assets $ 74Property, plant, and Owner’s E quityequipment: Terry Dagley, capital (12)Land ............... $50Equipment ........ $32Less accum. depr. 7 25Total property, plant,and equipment 75 Total liabilities andTotal assets ......... $149 owner’s equity .. $1494-72006Jan.31 Accounts Receivable (7)Fees Earned (7)31 Supplies Expense (5)Supplies (5)31 Insurance Expense (6)Prepaid Insurance (6)31 Depreciation Expense (5)Accumulated Depreciation—Equipment 531 Wages Expense (1)Wages Payable (1)4-82006Jan.31 Fees Earned (67)Income Summary (67)31 Income Summary (49)Wages Expense (17)Rent Expense (8)Insurance Expense (6)Utilities Expense (6)Depreciation Expense (5)Supplies Expense (5)Miscellaneous Expense (2)31 Income Summary (18)Terry Dagley, Capital (18)31 Terry Dagley, Capital (8)Terry Dagley, Drawing (8)4-9SIROCCO SERVICES CO.Income StatementFor the Year Ended March 31, 2006Service revenue ................................$103,850Operating expenses:Wages expense ............................ $56,800Rent expense ............................... 21,270Utilities expense ............................ 11,500Depreciation expense ..................... 8,000Insurance expense ......................... 4,100Supplies expense .......................... 3,100Miscellaneous expense .................... 2,250Total operating expenses ....... 107,020Net loss ..........................................$ (3,170)4-10SYNTHESIS SYSTEMS CO.Statement of Owner’s EquityFor the Year Ended October 31, 2006 Suzanne Jacob, capital, November 1, 2005$173,750Net income for year ........................... $44,250 Less withdrawals ............................... 12,000 Increase in owner’s equity....................32,250Suzanne Jacob, capital, October 31, 2006 $206,0004-11a. Current asset: 1, 3, 5, 6b. Property, plant, and equipment: 2, 44-12Since current liabilities are usually due within one year, $165,000 ($13,750 × 12 months) would be reported as a current liability on the balance sheet. The remainder of $335,000 ($500,000 – $165,000) would be reported as a long-term liability on the balance sheet.4-13TUDOR CO.Balance SheetApril 30, 2006AssetsLiabilitiesCurrent assetsCurrent liabilities:Cash $31,500Accounts payable ........... $9,500Accounts receivable 21,850 Salaries payable1,750Supplies ............ 1,800 Unearned fees ............... Prepaid insurance 7,200 Total liabilitiesPrepaid rent ....... 4,800Total current assets $67,150 Owner’s E Property, plant, and equipment: Vernon Posey,capital 114,200Equipment ....... $80,600Less accumulated depreciation 21,100 59,500Total liabilities andTotal assets $126,650 own er’s equity ...............4-14Accounts Receivable ............................ 4,100Fees Earned ......................... 4,100 Supplies Expense ...................... 1,300Supplies .............................. 1,300 Insurance Expense ..................... 2,000Prepaid Insurance ................... 2,000 Depreciation Expense ................. 2,800Accumulated Depreciation—Equipment 2,800 Wages Expense ........................ 1,000Wages Payable ...................... 1,000 Unearned Rent .......................... 2,500Rent Revenue ........................ 2,5004-15c. Depreciation Expense—Equipmentg. Fees Earnedi. Salaries Expensel. Supplies Expense4-16The income summary account is used to close the revenue and expense accounts, and it aids in detectingand correcting errors. The $450,750 represents expense account balances, and the $712,500 represents revenue account balances that have been closed.4-17a.Income Summary ............................. 167,550Sue Alewine, Capital ................... 167,550 Sue Alewine, Capital ............................ 25,000Sue Alewine, Drawing ................. 25,000b. $284,900 ($142,350 + $167,550 – $25,000)4-18a. Accounts Receivableb. Accumulated Depreciationc. Cashe. Equipmentf. Estella Hall, Capitali. Suppliesk. Wages Payable4-19a. 2002 2001Working capital ($143,034)($159,453)Current ratio 0.81 0.80b. 7 Eleven has negative working capital as of December31, 2002 and 2001. In addition, the current ratio is below one at the end of both years. While the working capital and current ratios have improved from 2001 to 2002, creditors would likely be concerned about the ability of 7 Eleven to meet its short-term credit obligations. This concern would warrant further investigation to determine whether this is a temporary issue (for example, an end-of-the-periodphenomenon) and the company’s plans to address itsworking capital shortcomings.4-20a. (1) Sales Salaries Expense ................ 6,480Salaries Payable ........................ 6,480(2) Accounts Receivable ................... 10,250Fees Earned ............................. 10,250b. (1) Salaries Payable ........................ 6,480Sales Salaries Expense ................ 6,480(2) Fees Earned ............................. 10,250Accounts Receivable ................... 10,2504-21a. (1) Payment (last payday in year)(2) Adjusting (accrual of wages at end of year)(3) Closing(4) Reversing(5) Payment (first payday in following year)b. (1) W ages Expense ........................ 45,000Cash ...................................... 45,000(2) Wages Expense ......................... 18,000Wages Payable .......................... 18,000(3) Income Summary .......................1,120,800Wages Expense ......................... 1,120,800(4) Wages Payable .......................... 18,000Wages Expense ......................... 18,000(5) Wages Expense ......................... 43,000Cash ...................................... 43,000 Chapter6（找不到答案，自己处理了哦）Ex. 8–1a. Inappropriate. Since Fridley has a large number ofcredit sales supported by promissory notes, a notesreceivable ledger should be maintained. Failure tomaintain a subsidiary ledger when there are asignificant number of notes receivable transactionsviolates the internal control procedure that mandatesproofs and security. Maintaining a notes receivable ledger will allow Fridley to operate more efficiently and will increase the chance that Fridley will detect accounting errors related to the notes receivable. (The total of the accounts in the notes receivable ledger must match the balance of notes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation ofduties is violated. The accounts receivable clerk is responsible for too many related operations. The clerk also has both custody of assets (cash receipts) and accounting responsibilities for those assets.c. Appropriate. The functions of maintaining theaccounts receivable account in the general ledger should be performed by someone other than the accounts receivable clerk.d. Appropriate. Salespersons should not be responsiblefor approving credit.e. Appropriate. A promissory note is a formal creditinstrument that is frequently used for credit periods over 45 days.Ex. 8–2-aa.Customer Due Date Number of DaysPast DueJanzen Industries August 29 93 days (2 + 30+ 31 + 30)Kuehn Company September 3 88 days (27 + 31+ 30)Mauer Inc. October 21 40 days (10 +30)Pollack Company November 23 7 daysSimrill Company December 3 Not past dueEx. 8–3Nov.30 Uncollectible Accounts Expense ..... 53,315*Allowances for Doubtful Accounts 53, *$60,495 – $7,180 = $53,315Ex. 8–4Estimated Uncollectible AccountsAge Interval Balance Percent AmountNot past due .............. $450,000 2% $9,0001–30 days past due...... 110,000 4 4,40031–60 days past due .... 51,000 6 3,06061–90 days past due .... 12,500 20 2,50091–180 days past due .. 7,500 60 4,500Over 180 days past due 5,500 80 4,400 Total .................... $636,500 $27,860Ex. 8–52006Dec. 31 Uncollectible Accounts Expense ..... 29,435*.A llowance for Doubtful Accounts 29,435 *$27,860 + $1,575 = $29,435Ex. 8–6a. $17,875 c. $35,750b. $13,600 d. $41,450Ex. 8–7a.Allowance for Doubtful Accounts ........... 7,130Accounts Receivable .................. 7,130b.Uncollectible Accounts Expense ............ 7,130Accounts Receivable .................. 7,130Ex. 8–8Feb.20 Accounts Receivable—Darlene Brogan 12,100 Sales .................................. 12,10020 Cost of Merchandise Sold ............ 7,260Merchandise Inventory .............. 7,260May30 Cash...................................... 6,000Accounts Receivable—Darlene Brogan 6,030 Allowance for Doubtful Accounts .... 6,100Accounts Receivable—Darlene Brogan 6,1Aug. 3Accounts Receivable—Darlene Brogan 6,100 Allowance for Doubtful Accounts . 6,1003 Cash...................................... 6,100Accounts Receivable—Darlene Brogan 6,1$223,900 [$212,800 + $112,350 –($4,050,000 × 21/2%)]Ex. 8–10Due Date Interesta. Aug. 31 $120b. Dec. 28 480c. Nov. 30 250d. May 5 150e. July 19 100Ex. 8–11a. August 8b. $24,480c. (1) N otes Receivable .......................... 24,000Accounts Rec.—Magpie Interior Decorators 24,(2) C ash......................................... 24,480Notes Receivable ....................... 24,000Interest Revenue (480)1. Sale on account.2. Cost of merchandise sold for the sale on account.3. A sales return or allowance.4. Cost of merchandise returned.5. Note received from customer on account.6. Note dishonored and charged maturity value of note tocustomer’s account recei vable.7. Payment received from customer for dishonored noteplus interest earned after due date.Ex. 8–132005Dec.13 Notes Receivable ....................... 25,000Accounts Receivable—Visage Co. 25,31 Interest Receivable ..................... 75*Interest Revenue (75)31 Interest Revenue (75)Income Summary (75)2006。
会计英语课后练习题含答案
会计英语课后练习题含答案一、选择题1.Which of the following is an example of a current asset?A. LandB. BuildingsC. Accounts payableD. Long-term bonds payableAnswer: C2.Which of the following is an example of a non-current asset?A. InventoryB. Accounts receivableC. EquipmentD. Prepd expensesAnswer: C3.Which of the following is an example of a current liability?A. Long-term loans payableB. Owner’s equityC. Accounts receivableD. Accounts payableAnswer: D4.Which of the following is an example of a non-currentliability?A. Accounts payableB. Salaries payableC. Long-term loans payableD. Rent payableAnswer: C5.Which of the following is not included in the calculation ofreturn on equity (ROE)?A. Net incomeB. Total assetsC. Average stockholders’ equityD. SalesAnswer: D二、填空题1._________ is the process of recording, classifying, andsummarizing financial transactions to produce financial statements.Answer: Accounting2.The balance sheet reports the financial position of acompany as of a specific __________.Answer: Date3.The __________ principle states that expenses should berecognized when they are incurred, regardless of when they are pd.Answer: Expense recognition4.The __________ principle states that expenses should bematched to the revenues they help generate.Answer: Matching5.The __________ is the excess of total assets over totalliabilities.Answer: Stockholders’ equity三、简答题1.What is the difference between a current asset and a non-current asset?Answer: A current asset is an asset that is expected to beconverted to cash within one year or during the normal operating cycle of the business, whichever is longer. A non-current asset is an asset that is expected to be held for more than one year and is not expected to be converted to cash during the normal operating cycle of the business.2.What is the difference between a current liability and anon-current liability?Answer: A current liability is a liability that is expected to be pd off within one year or during the normal operating cycle of the business, whichever is longer. A non-current liability is aliability that is expected to be pd off more than one year in the future and is not expected to be pd off during the normaloperating cycle of the business.3.How is the income statement different from the balance sheet?Answer: The income statement reports a company’s revenues,expenses, and net income or net loss for a specific period of time, usually one year or a quarter. The balance sheet reports acompany’s financial position as of a specific date, showing it s assets, liabilities, and stockholders’ equity.4.What is the equation for the balance sheet?Answer: Assets = Liabilities + Stockholders’ equity5.What is the purpose of financial accounting?Answer: The purpose of financial accounting is to provide useful information to external users, such as investors, creditors, and regulators, to help them make informed decisions about the company. It does this by recording and reporting a company’s financial activities in a standardized format.。
《会计专业英语》习题答案人大版Chapter 1
Chapter 1 Introduction to AccountingMultiple choice questions:1. D2. C3. C4. C5. B6. A7. C8. D9. C 10. CDiscussion questions1. What are the three basic forms of business entities?The forms of business entities are generally divided into sole proprietorships, partnerships, or corporations.A sole proprietorship is an unincorporated business only owned by one person. A sole proprietorship often has the following characteristics: (1) The owner also acts as the manager. (2) The owner is personally liable for the debts of the business. If the business has financial difficulties, creditors can force the owner to sell his or her personal assets to pay for the business debts. (3) Its advantage is simplicity.A partnership is usually an unincorporated business owned by two or more persons voluntarily acting as partners. The owners of a partnership, when unincorporated, are also personally liable for the debts of the business. In comparison he sole proprietorship, the partnership has the ability to raise larger amounts of capital investment from multiple owners. Since the personal skills of the individuals are vital to the partnership, covenants are usually drawn up which makes it difficult for individual partners to exit the legal entity.A corporation is a business organization as a separate legal entity owned by stockholders. Investors in a corporation receive shares of stock to indicate ownership claims. Shares of stock are easy to sell. Individuals can become stockholders by investing small amounts of money.2. Compared with sole proprietorship and partnership, what are the advantages of corporation as a form of business entity?Compared with sole proprietorships and partnerships,a corporation is easy for corporations to raise larger amounts of funds. Successful corporations often havethousands of stockholders, and their stocks are traded on organized stock exchanges like the New York Stock Exchange. Different from sole proprietorships and partnerships, corporate stockholders have no personal liability to the legal entity and their risks are limited to their purchase amount only.3. Who are the external users of accounting information? Give examples.External users have a current or potential financial interest in the reporting entity, but are not directly involved in managing and operating the business. The main external users include investors and creditors. Investors use accounting information to decide whether to buy, hold, or sell stocks. Creditors use accounting information to decide whether to sell goods or services on credit or lend money to an entity. Other external users of accounting information are government agencies, suppliers, customers, general public, and so on.4. What are the three main types of business activities? Give examples of each activity.All business can be classified into three types of activity: financing activity, investing activity, and operating activity. A company usually obtains cash through financing activities to start and grow its business. It then invests the cash in to run the business, such as delivery vehicles. Once this equipment is in place, it can begin the operating activities of making and selling goods.Financing activity: A company has two primary sources to raise funds. One is borrowing money and the other is issuing (selling) shares of stock in exchange for cash. Persons or entities to whom a company owes money are creditors. Amounts owed to creditors are called liabilities. A company may also obtain funds by selling shares of stock to investors in exchange for ownership rights. The total amount paid in by stockholders is ownership of shares of common stock and called paid-in capital. A creditor has a legal right to be paid at the agreed-upon time. However, stockholders have no legal right to expect any payments on a regular basis. The payments paid to stockholders are called dividends.Investing activity: Investing activities involve the purchase of the resources a company needs in order to operate. These resources can be buildings, furniture, computers, and delivery trucks among many other capital investments. Resources owned by a business are called capital assets. Assets have different types and names. Various, non-current, and tangible assets are called property, plant, and equipment (PPE).Operating activity: Once a business has assets, it can begin its operations. The amounts earned on the sale of its products or services are called revenues. Sources of revenues common to many businesses are sales revenues, service revenues, and interest revenues (typically not operating revenues but financing revenues).5. Accounting is sometimes described as the language of business. What is meant by this description?Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. Specifically, accounting provides information about the reporting entity that is useful to present and potential investors, creditors, and other information users in decisions about providing resources to the entity. As we often say, accounting is a business language.。
《会计专业英语》习题答案人大版Chapter 8
Chapter 8 Financial Statements and Financial Statement AnalysisMultiple Choice Questions1. A2. C3. B4. B5. D6. C7. B8. D9. A 10. B 11. A 12. C 13.D 14. A 15. A 16. A 17. B 18. B 19. B 20. DDiscussion Questions1. Is the measurement of net income absolutely accurate? Why or why not?The measurement of net income is not absolutely accurate due to the assumptions and estimates in the accounting process. An Income Statement has certain limitations. For example, the amounts shown for depreciation expense are based upon estimates of the useful lives of the company’s tool, equipment, and building. In addition, the Income Statement includes only those events that have been evidenced by actual business transactions. Perhaps during the year, the company’s advertising has caught the attention of many potential customers, who may be the sources of future income. However, the Income Statement cannot reflect the unrealized revenue. Only after the real transactions take place, can the sales revenues be recognized.2. What are the three types of business activities? Give examples of each type of activity.The three types of business activities include operating, investing, and financing activities. Operating activities include the cash effects of transactions that create revenues and expenses in normal course of business. This category is the most important. It shows the cash provided by company operations, which is generally considered to be the best measure of a company’s ability to generate sufficient cash to continue as a going concern. They include sales of goods and services, payments to supplies of merchandise and services.Investing activities include the cash effects of transactions involving plant assets, intangible assets, and investments. They include purchase of property, plant, andequipment, investments in debt or equity securities of other entities.Financing activities involve liability and owners’ equity items. They include: (1) obtaining resources from owners and providing them with a return on their investments, and (2) borrowing money from creditors and repaying the amounts borrowed.3. What types of information are presented in the notes to the financial statements?A set of financial statements is normally accompanied by several notes. Notes to the financial statements are the means of explaining the items presented in the main body of financial statements. Notes disclose information useful in interpreting the statements and are an integral part of the financial statements.Many items are disclosed in notes accompanying the financial statements. Among the most useful are the followings:(1) Accounting policies and methods;(2) Unused lines of credit;(3) Significant commitments and loss contingencies;(4) Dividends in arrears;(5) Assets pledged to secure specific liabilities;(6) Changes in accounting policies and methods.4. Distinguish between trend change analysis and component percentage analysis. Which will be better suited for analyzing the changes in sales over several years?Trend changes are the changes in financial statement items from a base year to the following or preceding years. To compute trend change, a base year is firstly selected and each item in the financial statements for the base year is given a weight of 100 percent. Then, each item in the financial statements for the following or preceding years is expressed as a percentage of the base-year amount.Component percentage analysis is the proportional expression of each financial statement item in a given period to a base amount within the financial statement.Trend change analysis is better for analyzing the changes in sales over several years.5. Explain the ratios used to evaluate profitability. Explain briefly how each is computed.Profitability ratios measure the degree of success or failure of a company in a given year. Usually the key ratios include gross profit ratio, profit margin on sales, return on assets, return on equity, earnings per share, price-earnings ratio, and payout ratio.(1) Gross profit ratio.Gross profit ratio is computed by dividing gross profit by net sales. Gross profit (also known as gross margin) is the difference between net sales and the cost of goods sold.Gross profit = Net sales - Cost of goods soldGross profit ratio = Gross profitNet sales(2) Profit margin on sales.Profit margin on sales is computed as dividing net income by net sales. Net income is the difference between net sales and all expenses (including cost of goods sold). A company can improve its profit margin on sales by increasing its gross profit rate and/or by controlling its operating expense and other expenses.Profit margin on sales = Net incomeNet sales(3) Return on assets (ROA).ROA is computed by dividing net income by average total assets. Average total assets are computed by adding the beginning and ending values of total assets and dividing the total by two.ROA = Net incomeAverage total assets(4) Return on common owners equity (ROE).ROE equals net income less preferred dividends, divided by average common owners’ equity. Average common owners’ equity is computed by adding the beginning and ending values of total common owners’ equity and dividing the total by two.ROE = Net income-PreferreddividendsAverage common owners’ equity(5) Earnings per share (EPS).EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. The weighted-average number of shares outstanding for the year is determined by multiplying the number of shares outstanding by the fraction of the year in which the number of shares outstanding remained unchanged.EPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding(6) Price-earnings ratio (P/E ratio).P/E ratio is computed by dividing the current market price per share of a company’s stock by its annual EPS.P/E ratio = Stock price pershareEarning pershare(7) Payout ratio.Payout ratio equals cash dividends paid to common stockholders divided by net income (less preferred dividends).Payout ratio = Cash dividendsNet income -Preferreddividends6. Why might earnings per share be more significant to a stockholder in a large corporation than the total amount of net income?Earnings per share shows the dollars earned by each share of common stock. EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. That is, a stockholder can know the net income he earns on the share of common stocks he owns.However, based on the total amount of net income, a stockholder cannot know how much he earns from his shares.7. Company C has a current ratio of 3 to pany D has a current ratio of 2 to 1. Does this mean that company C’s operating cycle is longer than company D’s? Why or why not?No, this does not mean that company C’s operating cycle is longer than company D’s. A company’s operating cycle is calculated as”Operating cycle=days to collect accounts receivable + days to sell inventoryDays to collect accounts receivable = 365Accounts receivable turnover rateDays to sell inventory = 365Inventory turnover rateAlthough Company C has a higher current ratio, we cannot calculate days to Days to collect accounts receivable and Days to sell inventory based on the information.8. Which ratio or ratios do you think should be of the greatest interest to:(1) A bank contemplating a short-term loan?A bank contemplating a short-term loan should be interested in such financial ratios as working capital, current ratio, quick ratio, and current cash debt coverage ratios.(2) An investor in common stock?An investor in common stock should be interested in such financial ratio as gross profit ratio, profit margin on sales, return on assets, return on equity, return on investment, earnings per share, price-earnings ratio, and payout ratio.9. Mr. Wang, the chief marketing officer, wants to reduce the selling price of his company’s products by 10% to increase market share. He says, “I know this will reduce our gross profit rate, but the increased number of units sold will make up for the lost margin.” Before this action is taken, what other factors does the company need to consider?Gross profit rate = Gross profitNet salesGross profit = Net sales - Cost of goods soldFrom the above, we know that gross profit rate is determined both by net sales and cost of goods sold. Reducing the net sales does not always lead to a reduced gross profit rate. If cost of goods sold greatly reduces, it is possible that gross profit ratio increases. If cost of goods sold increases, it is possible that the increased number of units sold will not make up for the lost margin. Therefore, before this action is taken, the company needs to consider cost of goods sold of his company’s products.10. Mr. Gao, the chief executive officer (CEO), is puzzled. During last year,his company experienced a net loss of $960,000, yet its cash increased by $540,000in the same year. Explain to the CEO how this could occur.Profit is the difference between revenues and expenses for a specified period oftime. If expenses are greater than revenues, the difference is net loss. Net income/netloss is measured on an accrual basis, while cash flows are measured on a cash basis.Under accrual basis of accounting, companies report revenue when earned, even if cashhas not been received, and they report expenses when incurred, even if cash has notbeen paid. As a result, net income/net loss is not the same as net cash.In this case, the net loss of $960,000 is the result of revenues minus expensesduring last year. It is measured on an accrual basis. However, the increased cash of $540,000 is the net cash from operating, investing, and financing activities during lastyear. It is measured on a cash basis. So, it is not strange that his company experienceda net loss of $960,000, and its cash increased by $540,000 in the same year.ProblemsProblem 8-1A condensed balance sheet for Company E prepared at the end of the year is as follows:AssetsCash $ 90,000Accounts receivable 168,000 Accounts payable 85,000 Inventory 350,000 Long-term liabilities 300,000 Prepaid expenses 75,000 Capital stock ($3 par) 330,000 Plant and equipment (net) 520,000 Retained earnings 563,000 Other assets 105,000Total $1,308,000 Total $1,308,000During the year the company earned a gross profit of $1,550,000 on sales of$3,200,000. Accounts receivables, inventory, and plant assets remained almost constantin amount through the year, so year-end figures may be used rather than the average.This company issued no preferred stocks. (红字标黄色是更正信息)RequiredCompute the following: (Carry to two decimal places)(1) Current ratioCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000+$168,000+$350,000+$75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Current ratio = Current assets Current liabilities = $683,000$115,000 = 5.94(2) Quick ratioQuick assets = cash + accounts receivable= $90,000 + $168,000= $258,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Quick ratio = Quick assets Current liabilities = $258,000$115,000 = 2.24(3) Working capitalCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000 + $168,000 + $350,000 + $75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Working capital = current assets - current liabilities= $683,000 - $115,000= $568,000(4) Debt ratioTotal assets = $1,308,000Total liabilities = notes payable + accounts payable + long-term liabilities = $30,000 + $85,000 + $300,000= $415,000Debt ratio = Total liabilitiesTotal assets = $415,000$1,308,000= 31.72%(5) Accounts receivable turnover (all sales were on credit) Net sales = $3,200,000Average accounts receivable = $168,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$3,200,000$168,000=19.05 times per year(6) Inventory turnoverCost of goods sold = net sales – gross profit= $3,200,000 - $1,550,000= $1,650,000Average inventory = $350,000Inventory turnover rate = Cost of goods soldAverage (net) inventory= $1,650,000$350,000= 4.71 times per year(7) Profit margin on salesNet sales = $3,200,000Net income = retained earnings = $563,000Profit margin on sales = Net incomeNet sales = $563,000$3,200,000= 17.59%(8) Return on assetsNet income = retained earnings = $563,000 Average total assets = $1,308,000ROA = Net incomeAverage total assets = $563,000$1,308,000= 43.04%(9) Return on equity (this company issued no preferred stocks) Net income = retained earnings = $563,000Average common owners’ equity = capital stock + retained earnings= $330,000 + $563,000= $893,000ROE = Net income-Preferreddividends Average common owners’ equity = $563,000$893,000= 63.05%(10) Earnings per share (this company issued no preferred stocks)Net income = retained earnings = $563,000Weighted-average number of shares outstanding = $330,000/$3 = 110,000 sharesEPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding =$563,000110,000= $5.12 per shareProblem 8-2The following selected data are from a recent annual report of company F. Dollar amounts are stated in millions.Beginning of the year End of the yearTotal current assets $9,230 $9,378Total current liabilities 4,836 5,902Total assets 31,125 33,561Total owners’ equity16,028 17,162Operating income 4,280Net income $3,735The company has long-term liabilities that bear interests at annual rate from 7 percent to 10 percent.Required1. Compute the company’s current ratio at: (1) the beginning of the year and, (2) the end of the year. (Carry to two decimal places)(1) Current ratio at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Current ratio = Current assetsCurrent liabilities = $9,230$4,836= 1.91(2) Current ratio at the end of the year Total current assets = $9,378Total current liabilities = $5,902Current ratio = Current assetsCurrent liabilities = $9,378$5,902= 1.592. Compute the company’s working capital at: (1) the beginning of the year and, (2) the end of the year. (Express dollar amounts in thousands)(1) Working capital at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Working capital = current assets - current liabilities= $9,230 - $4,836= $4,394(2) Working capital at the end of the yearTotal current assets = $9,378Total current liabilities = $5,902Working capital = current assets - current liabilities= $9,378 - $5,902= $3,4763. Is the company’s short-term, debt-paying ability improving or deteriorating? Company F’s short-term debt-paying ability has declined, as evidenced by its lower current ratio at the end of the year (1.59 vs. 1.91). The dollar amount of working capital has also decreased ($4,394 million to $3,476 million) which means that the company has a lesser ‘cushion’ between its currently-maturing obligations and its most liquid assets.4. Compute the company’s (1) return on average total assets and (2) return on average total owners’ equity. (Round the average assets and average equity to the nearest dollar and final computations to the nearest 1 percent)(1) Return on average total assetOperating income = $4,280Average total assets = ($31,125 + $33,561)/2 = $32,343ROA = Net incomeAverage total assets = $4,280$32,343= 13.23%(2) Return on average total owners’ equity Net income = $3,735Average owners’ equity = ($16,028 + $17,162)/2= $16,595ROE = Net income-Preferreddividends Average common owners’ equity = $3,735$16,595= 22.51%e. As an equity investor, do you think that company F’s management is utilizing the company’s resources in a reasonably efficient manner? Explain.Yes, company F’s management is using the company’s assets to generate a strong return on both assets (13.23%) and owners’ equity (22.51%), while maintaining strong liquidity with which to satisfy its obligations as they mature.Problem 8-3The following selected data for company M and company N for the year end are as follows:company M company NNet credit sales $1,600,000 $1,500,000Cost of goods sold 1,250,000 1,120,000Cash 175,000 89,000 Accounts receivable (net) 180,000 155,000 Inventory 72,000 218,000Current liabilities $210,000 $190,000Assume that the year-end balances shown for accounts receivable and for inventory also represent the average balances of these items throughout the year.Required1. For each of the two companies, compute the following:(1) Working capitalCompany M:Total current assets = cash + accounts receivable + inventory= $175,000 + $180,000 + $72,000= $427,000Total current liabilities = $210,000Working capital = current assets - current liabilities= $427,000 - $210,000= $217,000Company N:Total current assets = cash + accounts receivable + inventory= $89,000 + $155,000 + $218,000= $462,000Total current liabilities = $190,000Working capital = current assets - current liabilities= $462,000 - $190,000= $272,000(2) Current ratio Company M:Total current assets = $427,000 Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $427,000$210,000 = 2.03 Company N:Total current assets = $462,000 Total current liabilities = $190,000Current ratio = Current assetsCurrent liabilities = $462,000$190,000 = 2.43(3) Quick ratio Company M:Total quick assets = cash + accounts receivable= $175,000 + $180,000 = $355,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $355,000$210,000 = 1.69 Company N:Total quick assets = cash + accounts receivable= $89,000 + $155,000 = $244,000Total current liabilities = $190,000Quick ratio = Quick assetsCurrent liabilities = $244,000$190,000 = 1.28(4) Number of times inventory turned over during the year and the average number of days required to turn over inventory (round computation the nearestday)Company M:Cost of goods sold = $1,250,000 Average inventory = $72,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,250,000$72,000= 17.36 times per yearDays to sell inventory = 365Inventory turnover rate = 36517.36= 21 daysCompany N:Cost of goods sold = $1,120,000 Average inventory = $218,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,120,000$218,000= 5.14 times per yearDays to sell inventory = 365Inventory turnover rate = 3655.14= 71 days(5) Number of times accounts receivable turned over during the year and the average number of days required to collect account receivable (round computation the nearest day)Company M:Net credit sales = $1,600,000Average accounts receivable = $180,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,600,000$180,000=8.89 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3658.89= 41 daysCompany N:Net credit sales = $1,500,000Average accounts receivable = $155,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,500,000$155,000= 9.68 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3659.68= 38 days2. From the viewpoint of short-term creditor, comment on the quality of each company’s working capital. To which company would you prefer to sell $65,000 in merchandise on a 30-day open account?As Company M’s working capital ($217,000) is more than company N’s working capital ($272,000), from the viewpoint of short-term creditor, the quality of company N’s working capital is better than that of company M’s.I prefer to sell $65,000 in merchandise on a 30-day open account to company M,as company M spends less days (21 days) to sell inventory than company N (71 days).Problem 8-4The following data are selected from the financial statements of company G, a retail store:From the balance sheet:AssetsCash $46,000 Accounts receivable (net) 205,000 Inventory (at cost) 295,000 Plant & equipment (net of depreciation) 605,000 Current liabilities 210,000 Total owners’ equity600,000 Total assets 1,700,000 From the income statement:Net sales $3,000,000 Cost of goods sold 2,250,000 Operating expenses 525,000 Interest expense 85,000 Income tax expense 22,400 Net income 117,600 From the statement of cash flows:Net cash provided by operating activities $62,000 (including interest paid of $65,000) (68,000) Net cash used in investing activitiesFinancing activities:Amounts borrowed$52,000 Repayment of amounts borrowed (23,000) Dividends paid(21,000)Net cash provided by financing activities 8,000 Net increase in cash during the year$2,000Assume that the year-end balances shown for total assets and total owners’ equity also represent the average balances of these items throughout the year. This company issued no preferred shares. Required1. Explain how the interest expense shown in the income statement could be $85,000, when the interest payment appearing in the statement of cash flows is only $65,000.In the statement of cash flows, amounts are reported on a cash basis, whereas in the income statement, they are reported under the accrual basis. Apparently $20,000 of the interest expense incurred during the year had not been paid as of year-end. This amount should be included among the accrued expenses appearing as a current liability in the company’s balance sheet.2. Compute the following ratios/Dollar Amounts (round to one decimal place): (1) Current ratioTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000 = $546,000Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $546,000$210,000 = 2.6(2) Working capitalTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000= $546,000Total current liabilities = $210,000Working capital = Total current assets - Total current liabilities= $546,000 - $210,000= $336,000(3) Quick ratioTotal quick assets = = cash + accounts receivable= $46,000 + $205,000= $251,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $251,000$210,000= 1.2(4) Debt ratioTotal liabilities = total assets – total owners’ equity= $1,700,000 - $600,000= $1,100,000Total assets = $1,700,000Debt ratio = Total liabilitiesTotal assets = $1,100,000$1,700,000=64.7%(5) Times interest earnedIncome before income taxes and interest expense= net income + income taxes + interest expense= $117,600 + $22,400 + $85,000= $225,000Interest expense = $85,000Times interest earned = Income before income taxes and interestexpenseInterestexpense= $225,000$85,000= 2.6 times(6) Cash debt coverage ratioNet cash provided by operating activities = $62,000Average total liabilities = $1,100,000Cash debt coverage ratio = Net cashprovided by operating activitiesAverage total liabilities=$62,000$1,100,000= 0.06 times3. Comment on these measurements and evaluate Company G’s short-term debt-paying ability.By traditional measures, company G’s current ratio (2.6 to 1) and quick ratio (1.2 to 1) appear quite adequate. The company also generates a positive cash flow from operating activities ($62,000) which is about triple the amount of its dividend payments to stockholders ($21,000).4. Compute the following ratios:(1) Gross profit rateGross profit = Net sales - Cost of goods sold = $3,000,000 - $2,250,000 = $750,000 Net sales = $3,000,000Gross profit ratio = Gross profitNet sales = $750,000$3,000,000= 25%(2) Profit margin on sales Net income = $117,600 Net sales = $3,000,000Profit margin on sales = Net incomeNet sales = $117,600$3,000,000= 3.9%(3) Return on assetsNet income = $117,600 Average total assets = $1,700,000ROA = Net incomeAverage total assets = $117,600$1,700,000= =6.9%(4) Return on equityThis company issued no preferred shares. Net income = $117,600Average common owners’ equity = $600,000ROE = Net income-Preferreddividends Average common owners’ equity = $117,600$600,000= 19.6%(5) Payout ratioThis company issued no preferred shares. Net income = $117,600Cash dividends = $21,000Payout ratio = Cash dividendsNet income -Preferreddividends = $21,000$117,600= 17.9%5. Comment on Company G’s performance under these measurements.Company G’s profit margin on sales is 3.9%, indicating that one dollar of net sales results in net income of 3.9 cents. Investors and management can assess the company’s profitability by comparing its profit margin ratio with its competitors’ in the same industry. Profit margin on sales vary across industries. Retail stores generally experience lower profit margins.The 6.9% return on assets is not adequate by traditional standards to a retail store. However, the 19.6% return on equity is high. The problem arises because of company G’s relatively large interest expense, which is stated as $85,000 for the year.At year-end, company G has total liabilities of $1,100,000 ($1,700,000 total assets less $600,000 in owners’ equity). But $210,000 of these are current liabilities, most of which do not bear interest. Thus, company G has about $890,000 in interest-bearing debt.Interest expense of $85,000 on $890,000 of interest-bearing debt indicates an interest rate of approximately 9.55%. Obviously, it is not profitable to borrow moneyat 9.55%, and then reinvest these borrowed funds to earn a pretax return of only 6.9%. If company G cannot earn a return on assets that is higher than the cost of borrowing, it should not borrow money.Company G has a payout ratio of 17.9%, indicating that it has decided that it can and should pay 17.9% of its earnings to its owners. A higher percentage could mean that it has more cash than it has business opportunities to use that cash. A lower percentage could mean that it has very little cash to spare due to a declining business, or, very little cash to spare because it has many internal opportunities to invest that same cash.6. Discuss the safety of long-term creditors’ claims.Long-term creditors do not appear to have a high margin of safety. The debt ratio of 64.7% is high for American (or Chinese) industry. Also, debt is continuing to rise. During the current year, the company borrowed an additional $52,000, while repaying only $23,000 of existing liabilities. In the current year, interest payments alone ($65,000) was more than the net cash flow from operating activities ($62,000).A general rule of thumb is that a cash debt coverage ratio below 0.20 times is cause for additional examination. Company G’s cash debt coverage ratio is 0.06 times, below the 0.20 threshold, suggesting that the company is not solvent.。
会计专业英语章节练习题及答案(共17章)chapter 3
Chapter 3Discussion questions1.Why trading securities are usually regarded as current assets?Trading securities consist of surplus cash invested in government or corporate debt obligations, or in shares (equity securities) that can be readily sold (marketable) and ate held as a source of mature or be sold within the next year or operating period to be classified as current assets, although it is probable that they will. Trading securities ate considered current assets if they are marketable, and management’s intent of holding them for a longer period, they should be classified as long-term investment in securities.2.In making the annual adjusting entry for uncollectible accounts, a company mayutilize a balance sheet approach to make the estimate or it may use an income statement approach. Explain these two alternative approaches.A balance sheet is a financial statement listing a company’s assets, liabilities and owners’ or shareholders’ equity on a specific date. A balance sheet approach to an audit is a limited audit that only examines the accounts on a company's balance sheet.The income statement, also known as the profit and loss, or P&L, statement, runs down the revenues and expenses of a company over a specified time period, showing the company's net profit for the period. All publicly traded companies are required to produce an income statement at least annually, but many firms choose to produce quarterly income statements as well.3.Which inventory valuation method should a company use if it wants to minimizeincome taxes?When prices are rising, LIFO results in lower reported income and thus may provide a related tax benefit.When prices are decreasing, FIFO results in lower reported income and thus may provide a related tax benefit.4.What are the advantages by using the retail method to estimate inventories?The retail inventory method is widely used by department stores and other types of retail business that are likely to keep periodic inventory records. Such firms typically mark each item of merchandise with the retail price and record purchased at both cost and retail price. A firm can estimate its ending inventory at retail price merely by subtracting the net sales for the month from the retail price of goods available for sale. The ending inventory at retail is then converted to most on the basis of the ratio of cost to selling retail price for the current period. One of the major advantages of the retail method is that it provides inventory figures for use inpreparing interim statements.Exercises1.In general terms, financial assets appear in the balance sheet at:A．Face valueB．Current valueC．Market valueD．Estimated future sales valueAnswer: B2. On January 1, CL Company had a $3100credit balance in the Allowance forDoubtful Accounts. During the year, sales totaled $78000 and &6900 of accounts receivable were written off as uncollectible. A December 31 aging of accounts receivable indicated the amount probably uncollectible to be $5300. (No recoveries of accounts previously written off were made during the year.) CL Company’s financial statements for the current year should include:A．Uncollectible accounts expense of $9100B．Uncollectible accounts expense of $5300C．Allowance for Doubtful Accounts with a credit balance of $1500D．Allowance for Doubtful Accounts with a credit balance of $8400Answer: A3. Why do companies prefer the LIFO inventory method during a period of risingprices?A．Higher reported incomeB．Lower income taxesC．Lower reported incomeD．Higher ending inventoryAnswer: B4. Which of the following statements is true?A. Separation of duties is not an important element of internal control forinventories.B. The perpetual system is used primarily for low-unit-cost inventory.C. An annual physical count of inventory is needed regardless of the type ofinventory system used.D. All the above are true.Answer: C5. If a firm purchases $100000 of bonds of Z Company at 101 plus accrued interestof $2000 and pays broker’s commissions of $50, the amount debited to Investment in Z Company Bonds may be:A. $100000B. $101050C. $103000D. none of the aboveAnswer: C6. ABC Company needs to determine the approximate amount of inventory at theend of each month without taking a physical inventory of merchandise. From the following information, you are required to determine the cost of the July 31The cost of the July 31inventory is determined as follows:Ending inventory of July 31 at retail selling price=$640,000-$375,000=$364,800 Ratio of cost to selling retail price=$435,200/$640,000=68%Ending inventory of July 31 at cost=$364,000×68%=$248,064。
会计英语试题及答案
会计英语试题及答案一、选择题（每题2分，共20分）1. What is the term for the systematic, periodic assessmentof the performance and financial position of a business?A. AuditingB. BudgetingC. Financial AnalysisD. Forecasting答案：C. Financial Analysis2. Which of the following is not a basic accounting principle?A. Accrual Basis AccountingB. ConsistencyC. Cash Basis AccountingD. Going Concern答案：C. Cash Basis Accounting3. The process of recording transactions in a journal isknown as:A. PostingB. JournalizingC. ClosingD. Adjusting答案：B. Journalizing4. What does the term "Double Entry" refer to in accounting?A. Recording transactions twiceB. Recording transactions in two different accountsC. Recording transactions in two different waysD. Recording transactions in two different periods答案：B. Recording transactions in two different accounts5. The financial statement that provides a snapshot of a company's financial condition at a specific point in time is:A. Income StatementB. Balance SheetC. Cash Flow StatementD. Statement of Changes in Equity答案：B. Balance Sheet二、填空题（每题2分，共20分）6. The __________ is the accounting equation that shows the relationship between assets, liabilities, and equity.答案：Accounting Equation7. In accounting, the term __________ refers to theallocation of the cost of a tangible asset over its useful life.答案：Depreciation8. The __________ is the process of summarizing the transactions recorded in the ledger accounts and presentingthem in a more condensed form.答案：Trial Balance9. __________ is the method of accounting where revenues and expenses are recognized when they are earned or incurred, not necessarily when cash is received or paid.答案：Accrual Accounting10. The __________ is the financial statement that shows the changes in a company's cash and cash equivalents during a period.答案：Cash Flow Statement三、简答题（每题10分，共30分）11. Explain the purpose of a balance sheet in a business context.答案：The purpose of a balance sheet is to provide stakeholders with a snapshot of a company's financialposition at a specific point in time. It lists the company's assets, liabilities, and equity, and is used to assess the company's liquidity, solvency, and overall financial health.12. What are the main differences between an income statement and a statement of cash flows?答案：The income statement reports a company's financial performance over a period, focusing on revenues and expenses to determine net income. The statement of cash flows, on the other hand, shows the inflows and outflows of cash during thesame period, highlighting how the company generates and uses cash.13. Describe the concept of "matching principle" in accounting.答案：The matching principle in accounting requires that expenses be recognized in the same accounting period as the revenues they helped generate. This principle ensures that the financial statements reflect the actual economic activity of the period, providing a more accurate picture of the company's financial performance.四、计算题（每题15分，共30分）14. Given the following trial balance figures, calculate the total current assets and total current liabilities.| Account | Debit ($) | Credit ($) ||||-|| Cash | 12,000 | || Accounts Receivable | | 8,000 || Inventory | | 15,000 || Prepaid Expenses | 2,000 | || Accounts Payable | | 5,000 || Wages Payable | 1,000 | || Total Current Liabilities | | 6,000 |答案：Total current assets = Cash + Accounts Receivable + Inventory + Prepaid Expenses = 12,000 + 8,000 + 15,000 +2,000 = 37,000Total current liabilities = Accounts Payable + Wages Payable + Total Current Liabilities = 5,000 + 1,000 + 6,000 = 12,00015. If a company has a net income of $50,000 and an increase in retained earnings of $75,000, calculate the dividends paid by the company.答案：Dividends paid = Increase in retained earnings - Net income = 75,000 -。
《会计专业英语》习题答案人大版Chapter 6
Chapter 6 Stockholders9 EquityKey Terms and Concepts1.Boards of directors （董事会）：individuals elected by the stockholders to govern a corporation.2.Capital reserves （资本公积）：the amounts received at issuance in excess of the par orstated value of capital stock and amounts received from other transactions involving entity's stock and/or stockholders.3.Capital stock （or Paid-in Capital, Share Capital, Invested Capital 月殳本）：the portion ofowners' equity contributed by investors （the owners） through the issuance of stock.mon stock （普通股）：the class of stock most frequently issued by corporations; itconfers a voting right in the corporation; dividend and liquidation rights generally come second to those of preferred stock.5.Contributed capital （实收资本）：the actual amount of capital contributed by the investorsin an enterprise in accordance with the memorandum Articles ofIncorporation/establishment of the enterprise, investment contracts or agreements.6.Corporation （公司）：a legal entity chartered by relevant authorities; ownership isrepresented by transferable shares of stock.7.Date of record （登IB 日）:the date selected by a corporation's board of directors on whichthe shareholders of record are identified as those who will receive dividends.8.Declaration date （宣告日）:the date on which a corporation's board of directors formallydecides to pay a dividend to shareholders.9.Dividends （股禾U）: periodic distributions of earnings in the form of cash, stock, or otherproperty to the owners （shareholders） of a corporation.10.Equity （权益）：the residual interest in the assets of the entity after deducting all of itsliabilities.11.Legal capital （注册资本）：the aggregate par value of stock.12. Limited liability （有限责任）：the legal protection given to stockholders whereby they areresponsible for the debts and obligations of a corporation only to the extent of their capital contributions.13. Outstanding stock （流通在外股票）：issued stock that is still being held by investors. 14. Payment date （支付 日）:the date on which a corporation pays dividends to its shareholders. 15. Preferred stock （优先月殳）：a class of stock issued by corporations; it confers dividend andliquidation rights that take precedence over those of common stock.Surplus Reserve （or Appropriation of Retained Earnings ）, and Undistributed Profits （or Unappropriated Profit ）.17. Stock certificate （月殳票）：a document issued by a corporation to stockholders evidencingownership in the corporation.18. Stockholders （股东）：individuals or organizations that own a portion （shares of stock ） of acorporation.19. Stock split （股票分害U ）: a reduction in the par or stated value of stock and a proportionateincrease in the number of shares outstanding.20. Surplus reserve （盈余公积）：a segregation of retained earnings to communicate theunavailability of a portion for dividend distributions.21. Treasury stock （库藏月殳）：issued stock that has subsequently been reacquired by thecorporation.16. Retained Earningsearned capital that is divided into two major categories:Undistributed profits （未分酉己利）闰）：the profit reserved for future distribution or not22.distributed yet.1.a. Each partner is individually liable to creditors for the debts incurred by the partnership. Thus, if a partnership is not able to pay its debts, the partners are required to contribute sufficient personal assets to settle the business debts.b. Each stockholder's liability for corporation debts is limited to the amount invested in the corporation. A corporation is responsible for its own obligations, and therefore, its creditors may not look beyond the assets of the corporation for satisfaction of their claims.2.A corporation must pay federal income taxes on its earnings, and when any part of the remaining earnings are distributed to stockholders as dividends, the stockholders must also pay federal income taxes on them.3.The large investments needed by large businesses are usually obtainable only through the pooling of the resources of many people. The corporation also has the advantages over proprietorships and partnerships of transferable shares of ownership, and thus the continuity of existence, and limited liability of its owners (stockholders).4.Paid-in capital is investments contributed by the stockholders and others; retained earnings is net income retained in the business.5.a. Net lossb. Deficit6.No. Common stock with a higher par is not necessarily a better investment than common stock with a lower par because par is an amount assigned to the shares.7.The right to vote, the right to share in distributions of earnings, and the right to share in assets on liquidation.8.Premium or paid-in capital in excess of par.9.a. Unissued stock has never been issued, but treasury stock has been issued as fully paid and has subsequently been reacquired.b. As a deduction from the total of other stockholders* equity accounts.10.The primary purpose of a stock split is to bring about a reduction in the market price per share and thus to encourage more investors to buy the company's shares.11.Sufficient retained earnings, sufficient cash, and formal action by the board of directors.12.October 1, declaration date; November 15, record date; and December 30, payment date.13.a. Current liabilityb. Stockholders1 equity14(1)Treasury stock is debited for the purchase price of the shares even though the purchase priceis less than par value.(2)Treasury stock is credited for the original cost (purchase price) of the shares, and the excess ofthe original cost (purchase price) over the sales price first is debited to paid-in capital from treasury stock from earlier sales of treasury stock and any remainder then is debited to retained earnings.(3)Treasury stock is credited for the original cost (purchase price) of the shares, and the excess ofthe sales price over the original cost (purchase price) is credited to paid-in capital from treasury stock.(4)There is no effect on net income as a result of treasury stock transactions.15Par Value per ShareTotal Par OutstandingRetained EarningsTotal Stockholders' EquityComposition of Stockholders* EquityAnswers to ProblemsProblem 6-11.270000-6000=45900000+3600x(50-45) +2400x(41-45) =9084002.5340000-270000+3600x50+2400x41+1450000 =6798400Problem 6-21.150000-60000x5x0.08x3=780002.63000 (60000x5x0.08x3=72000>63000)Problem 6-3Treasury Stock, Common ...................................................... 18,600Cash ................................................................................................ 18,600300x62=18600Cash ........................................................................................ 4,800Undistributed Profits (160)Treasury Stock, Common .................................................................. 4,960 80x62=4960 80x60=4800Cash ........................................................................................ 2,720 Treasury Stock, Common .................................................................. 2,480 Capital Reserves, Treasury Stock (240)40x62=2480 40x68=2720**12x20000=240000=5x20000+7x20000***430000x30%=12900。