财务会计英语练习及答案ch03

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财务英语试卷含答案

一、单项选择题，每道题只有一个正确选项（20 题，每题2 分，共40 分）（1）In the process of investment, enterprises must take into account(考虑) what factors（因素）first?A. the scale of investmentB. the risk of investment（2）In order to ensure correct and effective business investment(为了确保正确有效的商业投资), the firm should make good deal with the relationship between ( ) and ( )A. the investment direction and financing structureB. the inner conditions of enterprise and its macroeconomic environment.（3）In terms of profit maximization, in the free competition capital markets, the right of using capital belongs to () enterprises.A. the most profitable enterprisesB. the most advanced enterprises（4）The shareholders wealth is determined by ( ) and ( ).A. the number of shares owned and the stock market priceB. the size of the company and the stage of development（5）Municipal bonds are also referred to as 也partnership.A. individuallyB. jointly（7）All partners have ( ) liability.A.limitedB.unlimited（8）The investors receive in exchange for their funds usually ( ) in the company.A. take the form of stockB. take the form of debt（9）The only way for equity investors to recover（vt.重新获得；弥补）their investment is ( ).A. to sell the stock at a higher value laterB. to get the dividend of the stock later（10）The main disadvantage of equity financing is that ( ).A. the entrepreneur must make monthly principal and interest paymentB. the founders must give up some control of the business.（11）The second factor that the company considered for choosing a method of financing is that ( ).A. capacity to make set monthly payments on a loanB. Leverage and ratio of debt to equity（12）Closed-up investment 封闭式投资companies usually concentrate on ( ) rather than start-up companies.A. low-growth companies with good track recordsB. high-growth companies with good track r B. should not be considered（19）Sunk costs are （）for project valuation because they remain unaffected by the decision to accept or reject a project.A. irrelevantB. relevant（20）”The ability to meet credit obligations from existing assets if necessary.” This statement is to describe which “C” within The Five C’s of Credit ?A. CapitalB. Capacity二、单词翻译，英译中（20 题，每题1 分，共20 分）（1）Hedging risk（2）Sunk Cost（3）Securities and Exchange Commission（4）ESOP（5）Initial Public Offerings（6）NPV（7）PP（8）IRR（9）Acid test（10）The current ratio（11）Liquidity（12）Credit-worthy customer（13）Legal filings（14）JIT System（15）EOQ Model（16）Solvency（17）ROCE（18）Inventory Turnover Period（19）ROE（20）Dividend Yield三、判断题，请用T 或F 作答（15 题，每题1 分，共15 分）（1）在Equity Financing 中，“ Equity Investors ”需要每月偿还贷款。

财务英语试题及答案

财务英语试题及答案一、选择题（每题2分，共20分）1. What is the term for the process of recording, summarizing, and reporting financial transactions?A. BudgetingB. AccountingC. AuditingD. Forecasting答案：B2. Which of the following is a financial statement that showsa company's financial position at a specific point in time?A. Income StatementB. Balance SheetC. Cash Flow StatementD. Statement of Retained Earnings答案：B3. The difference between the purchase price and the fair market value of an asset is known as:A. DepreciationB. AmortizationC. GoodwillD. Capital Gains答案：C4. What is the term for the systematic allocation of the cost of a tangible asset over its useful life?A. DepreciationB. AmortizationC. AccrualD. Provision答案：A5. Which of the following is not a type of revenue recognition?A. Cash basisB. Accrual basisC. Installment methodD. All of the above答案：D6. The process of estimating the cost of completing a project is known as:A. BudgetingB. Cost estimationC. Project managementD. Cost accounting答案：B7. Which of the following is a non-current liability?A. Accounts payableB. Wages payableC. Long-term debtD. Income tax payable答案：C8. The term used to describe the process of adjusting the accounts at the end of an accounting period is:A. Closing the booksB. JournalizingC. PostingD. Adjusting entries答案：D9. What is the term for the financial statement that shows the changes in equity of a company over a period of time?A. Balance SheetB. Income StatementC. Statement of Changes in EquityD. Cash Flow Statement答案：C10. The process of verifying the accuracy of financial records is known as:A. BudgetingB. AuditingC. ForecastingD. Valuation答案：B二、填空题（每空1分，共10分）1. The __________ is the process of determining the value of an asset or liability.答案：valuation2. A __________ is a type of financial instrument that represents a creditor's claim on a company's assets.答案：bond3. The __________ is the difference between the cost of an asset and its depreciation.答案：book value4. __________ is the process of converting non-cash items into cash equivalents.答案：Liquidation5. A __________ is a financial statement that provides information about a company's cash inflows and outflows during a specific period.答案：Cash Flow Statement6. The __________ is the process of estimating the useful life of an asset.答案：depreciation schedule7. __________ is the practice of recording revenues and expenses when they are earned or incurred, not when cash is received or paid.答案：Accrual accounting8. __________ is the process of recording transactions in the order they are received.答案：Journalizing9. __________ is the practice of matching expenses with the revenues they helped to generate.答案：Matching principle10. A __________ is a document that provides evidence of a transaction.答案：voucher三、简答题（每题5分，共20分）1. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity.2. Explain the concept of "double-entry bookkeeping."答案：Double-entry bookkeeping is a system of recording financial transactions in which every entry to an account requires a corresponding and opposite entry to another account, ensuring that the total of debits equals the total of credits.3. What is the purpose of an income statement?答案：The purpose of an income statement is to summarize a company's revenues, expenses, and profits or losses over a specific period of time.4. Describe the role of a financial controller in anorganization.答案：A financial controller is responsible for overseeing the financial operations of an organization, including budgeting, financial reporting, and ensuring compliance with financial regulations and policies.四、论述题（每题15分，共30分）1. Discuss the importance of financial planning in business management.答案：Financial planning is crucial in business management as it helps in setting financial goals。

financial-accounting-习题答案文档

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. asset 1-6a. 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 ......................................... 61,000Leo 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. T he ratio of liabilities to stockholders’ equity increased from 2002 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 Insurance15 Equipment2. Liabilities21 Accounts Payable22 Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41 Fees 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 anega tive balance means that the liabilities of Seth’s busine ssexceed the assets.b. Yes. The balance sheet prepared at December 31 will balance, withSeth Fite, Capital, being reported in the owner’s equity section as anegative $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 inall 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 .............................................................. 8,000Equipment .......................................................................... 75,000Accounts Payable .............................................................. 11,180 Unearned Rent ................................................................... 4,250 Erin Capelli, Capital ........................................................... 82,420 Erin Capelli, Drawing ......................................................... 10,000Service Revenue ................................................................ 83,750 Wages Expense .................................................................. 42,000Advertising 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 reveals deterioratingoperating results from 1999 to 2000. While sales increased by $1,103million, a 3.1% increase, cost of sales increased by $1,547 million, a5.5% increase. Selling, general, and administrative expenses alsoincreased by $901 million, a 13.8% increase. The end result was thatoperating income decreased by $1,345 million, over a 100%decrease, and created a $45 million loss in 2000. Little over a yearlater, Kmart filed for bankruptcy protection. It has now emerged frombankruptcy, 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 income willbe overstated.b. Prepaid insurance (or assets) will be overstated. Owner’s equity willbe 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 0 3-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable ......................................................... 11,500Fees Earned ......................................................... 11,500 b. No. If the cash basis of accounting is used, revenues are recognizedonly when the cash is received. Therefore, earned but unbilledrevenues would not be recognized in the accounts, and no adjustingentry would be necessary.3-13a. Fees earned (or revenues) will be understated. Net income will beunderstated.b. Accounts (fees) receivable (or assets) will be understated. Owner’sequity 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 the equipment to theperiods benefiting from its use. It does not necessarily relate to valueor 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 valuation method.That is, depreciation allocates the cost of a fixed asset over its usefullife. Depreciation does not attempt to measure market values, whichmay vary significantly from year to year.3-17a.Depreciation Expense ....................................................... 7,500Accumulated Depreciation ................................. 7,500 b. (1) Depreciation expense would be understated. Net income wouldbe overstated.(2) Accumulated depreciation would be understated, and total assetswould be overstated. Owner’s equity would be ove rstated.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 ofg oods sold of 82.1% is significantly less (4.3%) than Gateway’s costof goods sold of 86.4%. In addition, Gateway’s operating expensesare over one-fourth of sales, while Dell’s operating expenses are9.9% of sales. The result is that Dell generates an operating incomeof 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 inbusiness 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 Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr.1Cash 8 8 1 2Accounts Receivable 50 (a) 7 57 2 3Supplies 8 (b) 5 3 3 4Prepaid Insurance 12 (c) 6 6 4 5Land 50 50 5 6Equipment 32 32 6 7Accum. Depr.—Equip. 2 (d) 5 7 7 8Accounts Payable 26 26 8 9Wages Payable 0 (e) 1 1 9 10Terry Dagley, Capital 112 112 10 11Terry Dagley, Drawing 8 8 11 12Fees Earned 60 (a) 7 67 12 13Wages Expense 16 (e) 1 17 13 14Rent Expense 8 8 1415Insurance Expense 0 (c) 6 6 15 16Utilities Expense 6 6 16 17Depreciation Expense 0 (d) 5 5 17 18Supplies Expense 0 (b) 5 5 18 19Miscellaneous Expense 2 2 19 20Totals 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.1Cash 8 8 1 2Accounts Receivable 57 57 2 3Supplies 3 3 3 4Prepaid Insurance 6 6 4 5Land 50 50 5 6Equipment 32 32 6 7Accum. Depr.—Equip. 7 7 7 8Accounts Payable 26 26 8 9Wages Payable 1 1 9 10Terry Dagley, Capital 112 112 10 11Terry Dagley, Drawing 8 8 11 12Fees Earned 67 67 12 13Wages Expense 17 17 13 14Rent Expense 8 8 14 15Insurance Expense 6 6 15 16Utilities Expense 6 6 16 17Depreciation Expense 5 5 17 18Supplies Expense 5 5 18 19Miscellaneous Expense 2 2 19 20Totals 213 213 49 67 164 146 20 21Net income (loss) 18 1821 2267 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 . (6)Total 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 (5)31 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, 2006Suzanne Jacob, capital, November 1, 2005 ..................... $173,750Net income for year ........................................................... $44,250Less withdrawals ............................................................... 12,000Increase 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, 2006Assets LiabilitiesCurrent assets Current liabilities:Cash $31,500 Accounts payable $9,500Accounts receivable ....................... 21,850 Salaries payable1,750Supplies................................................. 1,800 Unearned fees1,200Prepaid insurance ................................ 7,200 Total liabilities$12,450Prepaid rent ........................................... 4,800Total current assets $67,150 Owner’s EquityProperty, plant, and equipment: Vernon Posey, capital 114,200 Equipment ......................................... $80,600Less accumulated depreciation 21,100 59,500 Total liabilities andTotal assets $126,650 owner’s equity $126,6504-14Accounts 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 ...... 2,800Wages Expense ................................................... 1,000Wages Payable ............................................... 1,000 Unearned Rent ..................................................... 2,500Rent Revenue ................................................. 2,500 4-15c. 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, 2002 and2001. In addition, the current ratio is below one at the end of bothyears. While the working capital and current ratios have improvedfrom 2001 to 2002, creditors would likely be concerned about theability of 7 Eleven to meet its short-term credit obligations. Thisconcern would warrant further investigation to determine whetherthis is a temporary issue (for example, an end-of-the-periodphenomenon) and the company’s plans to address its workingcapital 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 should bemaintained. Failure to maintain a subsidiary ledger when there are asignificant number of notes receivable transactions violates theinternal control procedure that mandates proofs and security.Maintaining a notes receivable ledger will allow Fridley to operatemore efficiently and will increase the chance that Fridley will detectaccounting errors related to the notes receivable. (The total of theaccounts in the notes receivable ledger must match the balance ofnotes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation of duties isviolated. The accounts receivable clerk is responsible for too many。

财务会计英文影印版第十版课后练习题含答案 (2)

财务会计英文影印版第十版课后练习题含答案简介本文档为《财务会计英文影印版第十版》的课后练习题及答案。

该书是一本介绍财务会计的教材，涵盖了财务会计理论和实践，适用于财务会计初学者。

练习题Chapter 11.1 Expln the difference between management accounting and financial accounting.1.2 Expln the purpose of financial statements.1.3 Expln the role of the audit committee.1.4 Expln the difference between the balance sheet and the income statement.Chapter 22.1 Expln the difference between revenue and profit.2.2 Expln the difference between cash basis accounting and accrual basis accounting.2.3 Expln the purpose of the statement of cash flows.Chapter 33.1 Expln the difference between current and non-current assets.3.2 Expln the difference between current and non-current liabilities.3.3 Expln the difference between financing activities and investing activities.Chapter 44.1 Expln the purpose of the double-entry accounting system.4.2 Expln the difference between debits and credits.4.3 Expln the purpose of the trial balance.Chapter 55.1 Expln the difference between the cost of goods sold and operating expenses.5.2 Expln the purpose of the income statement.5.3 Expln the difference between gross profit and net profit.答案Chapter 11.1 Management accounting is concerned with providing information for internal decision-making, while financial accounting is concerned with providing information to external users.1.2 The purpose of financial statements is to provide information about an entity’s financial performance, financial position, and cash flows.1.3 The audit committee is responsible for overseeing the financial reporting process and ensuring the integrity of financial statements.1.4 The balance sheet shows an entity’s financial position at a specific point in time, while the income statement shows an entity’s financial performance over a period of time.Chapter 22.1 Revenue represents the amounts earned from the sale of goods or services, while profit represents the difference between revenue and expenses.2.2 Cash basis accounting recognizes revenue and expenses when cash is received or pd, while accrual basis accounting recognizes revenue and expenses when they are earned or incurred, regardless of when cash is received or pd.2.3 The statement of cash flows is used to show the inflows and outflows of cash from operating, investing, and financing activities.Chapter 33.1 Current assets are expected to be converted to cash within one year, while non-current assets are expected to be held for more than one year.3.2 Current liabilities are expected to be pd within one year, while non-current liabilities are expected to be pd after one year.3.3 Financing activities involve obtning funds from external sources and paying dividends to shareholders, while investing activities involve acquiring and disposing of property, plant, and equipment, and other long-term investments.Chapter 44.1 The double-entry accounting system ensures that everytransaction is recorded in two accounts, with equal debits and credits,in order to mntn the equality of debits and credits in the accounting equation.4.2 Debits are used to record increases in assets and expenses and decreases in liabilities and equity, while credits are used to record increases in liabilities and equity and decreases in assets and expenses.4.3 The trial balance is a list of all the accounts in the ledgerwith their balances, used to ensure that the total of the debits equals the total of the credits.Chapter 55.1 The cost of goods sold represents the cost of the goods or services sold by a company, while operating expenses represent the other costs of running a business.5.2 The income statement shows a company’s revenue, expenses, andnet income or loss for a period of time.5.3 Gross profit represents revenue minus the cost of goods sold, while net profit represents gross profit minus operating expenses.结论本文档为《财务会计英文影印版第十版》课后练习题及答案，涵盖了财务会计的基本理论和实践。

CH03Reports on Audited Financial statements(审计学,英文版)

（2）Qualified Report, except for p74
[nature of the GAAP departure explained in the report] In my opinion, Except for the effects of the failure to [the departure] as described in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the company as at _____, 2002, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.
2.2 Reservation in the Standard Unqualified Report
• 1.departure from GAAP Materiality • 2.scope limitation Materiality • ck independence
3. Audit report reservation
保留意见的审计报告
• 第一段同无保留意见的审计报告，此略。 • 除下段所述事项外，我们按照中国注册会计师独立审计准则计划和实施审计工作，以合理确信会计报表是否不存在重大错报。审计工作包括在抽查的基础上检查支持会计报表金额和披露的证据，评价管理当局在编制会计报表时采用的会计政策和作出的重大会计估计，以及评价会计报表的整体反映。我们相信，我们的审计工作为发表意见提供了合理的基础。

中级财务会计英文版.课后答案(Chap03)

Requirement 2
Cost of goods available for sale:
Beginning inventory(600 x $80)$ 48,000
Purchases:
1,000 x $ 95$95,000
800 x $10080,000175,000
Cost of goods available(2,400 units)$223,000
First-in, first-out (FIFO)
Cost of goods available for sale(2,400 units)$223,000
Less: Ending inventory(below)(80,000)
Cost of goods sold$143,000
Cost of ending inventory:
6,000(from 8/8 purchase)5.5033,000
Aug. 254,000(from 8/8 purchase)5.5022,000
3,000(from 8/18 purchase)5.0015,000
Total15,000$82,200
Ending inventory= 3,000 units x $5.00 =$15,000
Cost of ending inventory:
Date of
purchaseUnitsUnit costTotal cost
August 183,000$5.00$15,000
Last-in, first-out (LIFO)
Cost of goods available for sale(18,000 units)$97,200
6,000 @ $5.00

财务英语练习题(含答案)

Question1.What are the three basic types of accounts and two additional ones?2.Describe the effects of each of the following business transactions on assets, liabilities, and owners’ equity.(写出借方发生的变化及贷方发生的变化)A.bought equipment on creditAssets , debit for increaseLiabilities , credit for increaseB.Paid salaries to employeesLiabilities , debit for decreaseAssets , credit for decreaseC.Sold services for cashAssets , debit for increaseOwners’ equaties , credit for increaseD.Paid cash to a creditorLiabilities , debit for decreaseAssets , credit for decreaseE.Paid cash for furnitureAssets , debit for increaseAssets , credit for decreaseF.Sold services on creditAssets , debit for increaseOwners’ equaties , credit for increase3.Describe the rules of debit and credit（只需填入debit/credit）Requirement: Complete each of the following statement by using the word debit and credit wherever appropriate.1.Assets accounts normally have debit balances. These accounts increase on the debit side and decrease on the credit side.2.Liabilities accounts normally have credit balances. These accounts increase on the credit side and decrease on the debit side.3.The owners’ capital account normally has credit balance. This account increase on the credit side and decrease on the debit side.。

财务会计英语试题3

FINANCIAL ACCOUNTING编号成绩true or fault1.R ussll'Retail bought goods at $10000 which are marked up to $12500.What was the gross profit rate?a) $25% b)20% c)12.5% d)15%2.G ooden Company purchased and began depreciating a new truck on April 1,1999.The truck cost $60000,has a five-year service life, and a $12000 residual value. Assuming use of the double-declining method, what is the 1999 depreciation expense?a) $13440 b)$14400 c)$16800 d)$180003.A Co. purchased $8000 of merchandise on July 9 from B Co., FOB shipping point, term 2/10,n/30. Freight charges of $200 were paid by B Co. If A Co. settled the transaction on July 17, the company would pay:a)$7840 b)8040 c)8036 d)82004.Extraordinary items are:a)d isclosed on the statement of retained earnings.b)disclosed as part of income from continuing operationsc)unusual or infrequent in natured)unusual and infrequent in nature5.Accumulated depreciation, as the term is used on financial accounting represents:a)cash set aside to replace plant assets when they are worn outb)earnings retained in the business that will be used to purchase another plant asset when thepresent asset becomes fully depreciatedc) the portion of the cost of an asset that has been written off as expense since acquisitiond)an expense to be shown on the income statementing the data presented below, calculate the cost of goods sold for the ABC Company for 1999.Current ratio 3.5Acid ratio 3Current liabilities 12/31/1999 $600000Inventory 12/31/1998 $500000Inventory turnover 8The cost of goods sold for the ABC Company of 1999 was:a)$1600000 b)$2400000 c)$3200000 d)$64000007.Which of the following transactions would result in an increase in the current ratio if the ratio is presently 2:1?a)r epaid a 90-day loanb)purchased merchandise on accountc)liquidated a long-term liabilityd)received payment of an accounts receivablee)none of the above8.An aging schedule indicated that M Co. had $12500 of uncollectible accounts. Yet, the adjusting entry for bad debts expense was prepared for only $6000. This situation arose because:a)T here was a $6500 debit balance in the Allowance for Bad Debts account prior to adjustment.b) There was a $6500 credit balance in the Allowance for Bad Debts account prior to adjustment.c) The Bad Debts expense account had an existing balance of $6500d) $6500 of uncollectible accounts were written off during the accounting period.9.The LIFO inventory valuation method:a)i s acceptable only if a company sells its newest goods first.b)will result in higher income levels than FIFO in periods of rising prices.c)will result in a match of fairly current inventory cost against recent selling prices on the income statement.d)cannot be used with a periodic inventory system .10.Four years ago, Harrison company invested $500,000,acquired 25% interest equity in M Co. During the next 3 years, M Co. reported earnings of $300,000 and paid dividends of $200,000. In the current year, M Co. reported earnings of $30,000 and paid dividends of $10,000. If Harrison use the equity method, the balance of the investment account and the current income from the investment should be respectively:a) $582,500 and $7500b)$530,000 and $7500c)$530,000 and $2500d)$500000 and $2500Bonds Transactions(15%):ABC company sold $800,000 of its 9%, 20 years bonds on April 1,1999, at 105. The semi-annual interest payment dates are April 1 and October 1.The effective interest rate is 8%. The company fiscal year ends Dec.31. Requirements:Prepare journal entries to record:1.T he bond issuance on April.1, 1999.2.T he first interest payment and amortization of premium on Oct.1(using effective interest method)3.T he amortization of premium and interest expense on Dec.31,1999.(using straight-line method).XYZ Co. was formed on Jan.1999. The company is authorized to issue 100000 shares of $20 par-value common stock and 30000 shares of 6%, $10 par-value preferred stock. The following selected transactions occurred during the year(15%):1.I ssued 80000 shares of common stock at $35 per share.2.I ssued 14000 shares of preferred stock at $12 per share.3.R equired 5000 shares of treasury stock for $40 per share.4.S old 500 shares of treasury stock at $25 per share.5.D eclared cash dividend for $15000.Requirement:Make journal entries based on the information given above(compute the cash dividend for common stock and preferred stock respectively)Statement of cash flow(30%)Paper 1 Accounting ReportsInformation One：Colwell CorporationIncome StatementFor 2003Sales $ 3,000,000Cost of goods sold 1,200,000$ 1,800,000ExpensesSelling &administrative $ 1,455,000Building depreciation 25,000Equipment depreciation 70,000 $ 1,550,000$ 250,000Other revenue (expense)Interest expense $ (200,000)Loss on sale of equipment (5,000)Gains on sale of L-T investment 15,000 (190,000 )Income before income taxes $ 60,000Income taxes 20,000Net income $ 40,000Information Two：Statement of Retained earningFor 2003Retained earnings, 1/1/2003 $ 450,000Add: Net income 40,000$ 490,000Less: Cash dividends 15,000Retained earnings,12/31/2003 $ 475,000Information Three：Colwell CorporationComparative Balance SheetDec.31,2002 and 2003Assets 2003 2002Current assetsCash $ 100,000 $ 50,000Accounts receivable (net) 400,000 375,000Inventory 425,000 450,000Prepaid selling expenses 5,000 4,000Total current assets $ 930,000 $ 879,000Property, plant & equipmentLand $ 200,000 $ 115,000Building 1,450,000 1,250,000Accumulated depreciation: building (50,000) (25,000)Equipment 725,000 800,000Accumulated depreciation: equipment (250,000) (260,000)Total property, plant & equipment $2,075,000 $ 1,880,000Other assetsL--T investment $ 880,000 $ 1,000,000Total assets $ 3,885,000 $ 3,759,000Liabilities & Stockholders' EquityCurrent liabilitiesAccounts payable $ 470,000 $ 340,000Notes payable --- 300,000Income taxes payable 40,000 39,000Total current liabilities $ 510,000 $ 679,000L-T liabilitiesBonds payable $ 2,070,000 $ 2,000,000Stockholders' equityCommon stock, par value $ 1 $ 195,000 $ 130,000Paid-in capital in excess of par 635,000 500,000Retained earnings 475,000 450,000Total stockholders' equity $ 1,305,000 $ 1,080,000Total liabilities &stockholders' equity $ 3,885,000 $ 3,759,000Additional Information extracted from Colwell's accounting records:1.A parcel of land which cost $85,000 was purchased for cash on Oct.19.2.A building having a fair market value of $200,000 was acquired on the last day of the year inexchange for 65,000 shares of the company's $1 par-value common stock.3.Equipment of $100,000 was disposed of for cash on May 1.4.E quipment of $25,000 was purchased on Nov.1.5.T he notes payable relate to money borrowed from First Pacific Trust in late 1998.6.$120,000 of long-term investments was sold for $135,000, generated a gain of $15,000.7.B onds of $70,000 were issued at face value on Feb.14.Requirements:Prepare the Statement of Cash Flow in good form for Colwell Corporation under indirect approach.。

财务会计英语练习及答案ch

财务会计英语练习及答案ch个人收集整理勿做商业用途CHAPTER 16 STATEMENT OF CASH FLOWS个人收集整理勿做商业用途Chapter 16—Statement of Cash FlowsTRUE/FALSE1. The statement of cash flows is not one of the basic financial statements.ANS: F DIF: 1 OBJ: 012. Cash, as the term is used for the statement of cash flows, could indicate either cash or cashequivalents.ANS: T DIF: 1 OBJ: 013. The statement of cash flows is an optional financial statement.ANS: F DIF: 1 OBJ: 014. The statement of cash flows shows the effects on cash ofa company's operating, investing,and financing activities.ANS: T DIF: 1 OBJ: 015. The statement of cash flows reports a firm's major sources of cash receipts and major uses ofcash payments for a period.ANS: T DIF: 1 OBJ: 016. Cash flows from operating activities, as part of the statement of cash flows, include cashtransactions that enter into the determination of net income.ANS: T DIF: 1 OBJ: 017. To arrive at cash flows from operations, it is necessary toconvert the income statement froman accrual basis to the cash basis of accounting.ANS: T DIF: 2 OBJ: 018. Cash flows from investing activities, as part of the statement of cash flows, include receiptsfrom the sale of land.ANS: T DIF: 2 OBJ: 019. Cash flows from financing activities, as part of the statement of cash flows, include paymentsfor dividends.ANS: T DIF: 2 OBJ: 0110. Cash flows from investing activities, as part of the statement of cash flows, include paymentsfor the purchase of treasury stock.ANS: F DIF: 2 OBJ: 0111. Cash flows from investing activities, as part of the statement of cash flows, include receiptsfrom the issuance of bonds payable.ANS: F DIF: 2 OBJ: 0112. There are two alternatives to reporting cash flows from operating activities in the statement ofcash flows: (1) the direct method and (2) the indirect method.ANS: T DIF: 1 OBJ: 0113. The direct method of preparing the operating activities section of the statement of cash flowsreports major classes of gross cash receipts and gross cash payments.ANS: T DIF: 1 OBJ: 0114. Under the direct method of reporting cash flows from operations, the major source of cash iscash received from customers.ANS: T DIF: 1 OBJ: 0115. The main disadvantage of the direct method of reporting cash flows from operating activitiesis that the necessary data are often costly to accumulate.ANS: T DIF: 2 OBJ: 0116. A major disadvantage of the indirect method of reporting cash flows from operating activitiesis that the difference between the net amount of cash flows from operating activities and net income is not emphasized.ANS: F DIF: 2 OBJ: 01个人收集整理勿做商业用途17. Cash outflows from financing activities include the payment of cash dividends, theacquisition of treasury stock, and the repayment of amounts borrowed.ANS: T DIF: 2 OBJ: 0118. Cash flows from investing activities, as part of the statement of cash flows, include paymentsfor the acquisition of fixed assets.ANS: T DIF: 2 OBJ: 0119. The acquisition of land in exchange for common stock is an example of noncash investing andfinancing activity.ANS: T DIF: 2 OBJ: 0120. If a business issued bonds payable in exchange for land, the transaction would be reported in aseparate schedule on the statement of cash flows.ANS: T DIF: 2 OBJ: 0121. A cash flow per share amount should be reported on thestatement of cash flows.ANS: F DIF: 1 OBJ: 0122. Although there is no order in which the noncash balance sheet accounts must be analyzed indetermining data for preparing the statement of cash flows by the indirect method, time can be saved and greater accuracy can be achieved by selecting the accounts in the reverse order in which they appear on the balance sheet.ANS: T DIF: 1 OBJ: 0223. The 2002 edition of Accounting Trends and Techniques reported that 90% of the companiessurveyed used the indirect method to report changes in cash flows from operations.ANS: F DIF: 2 OBJ: 0224. Rarely would the cash flows from operating activities, as reported on the statement of cashflows, be the same as the net income reported on the income statement.ANS: T DIF: 2 OBJ: 0225. If land costing $75,000 was sold for $135,000, the amount reported in the investing activitiessection of the statement of cash flows would be $75,000.ANS: F DIF: 2 OBJ: 0226. If land costing $150,000 was sold for $205,000, the $55,000 gain on the sale would be addedto net income in converting the net income reported on the income statement to cash flows from operating activities for the statement of cash flows prepared by the indirect method.ANS: F DIF: 2 OBJ: 0227. In preparing the cash flows from operating activitiessection of the statement of cash flows bythe indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.ANS: T DIF: 2 OBJ: 0228. In determining the cash flows from operating activities for the statement of cash flows by theindirect method, the depreciation expense for the period is added to the net income for the period.ANS: T DIF: 2 OBJ: 0229. In preparing the cash flows from operating activities section of the statement of cash flows bythe indirect method, the amortization of bond discount for the period is deducted from the net income for the period.ANS: F DIF: 2 OBJ: 02个人收集整理勿做商业用途30. If cash dividends of $145,000 were declared during the year and the decrease in dividendspayable from the beginning to the end of the year was $7,000, the statement of cash flows would report $152,000 in the financing activities section.ANS: T DIF: 2 OBJ: 0231. The declaration and issuance of a stock dividend would be reported on the statement of cashflows.ANS: F DIF: 2 OBJ: 0232. If 900 shares of $40 par common stock are sold for $48,000, the $48,000 would be reported inthe cash flows from financing activities section of the statement of cash flows.ANS: T DIF: 2 OBJ: 0233. If $500,000 of bonds payable are sold at 101, $500,000 would be reported in the cash flowsfrom financing activities section of the statement of cash flows.ANS: F DIF: 2 OBJ: 0234. Net income was $ 52,000 for the year. The accumulated depreciation balance increased by$17,000 over the year. There were no sales of fixed assets or changes in noncash current assets or liabilities. The cash flow from operations is $35,000ANS: F DIF: 2 OBJ: 0235. Net income for the year was $29,000. Accounts receivable increased $2,500, and accountspayable increased $5,100. The cash flow from operations is $31,600.ANS: T DIF: 2 OBJ: 0236. A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an$11,000 gain. The cash generated from this investing activity was $121,000.ANS: F DIF: 2 OBJ: 0237. The indirect method reports cash received from customers in the cash flows from operatingactivities section of the statement of cash flows.ANS: F DIF: 2 OBJ: 0238. Cash paid to acquire treasury stock should be shown on the statement of cash flows frominvesting activities.ANS: F DIF: 2 OBJ: 0239. Repayments of bonds would be shown as a cash outflow in the investing section of thestatement of cash flows.ANS: F DIF: 2 OBJ: 0240. Acquiring equipment by issuing a six-month note should be shown on the statement of cashflows under the investing activities section.ANS: F DIF: 2 OBJ: 0241. In reporting cash flows from investing activities on the statement of cash flows, the cashinflows are usually reported first, followed by the cash outflows.ANS: T DIF: 1 OBJ: 0242.Cash inflows and outflows are not netted in any activity section of the statement of cash flows but are separately disclosed to give the reader full information.ANS: T DIF: 1 OBJ: 0243. The manner of reporting cash flows from investing and financing activities will be differentunder the direct method as compared to the indirect method.ANS: F DIF: 1 OBJ: 0344. Sales reported on the income statement were $375,000. The accounts receivable balancedeclined $6,500 over the year. The amount of cash received from customers was $368,500.个人收集整理勿做商业用途ANS: F DIF: 2 OBJ: 0345. To determine cash payments for merchandise for the cash flow statement using the directmethod, a decrease in accounts payable is added to the cost of merchandise sold.ANS: T DIF: 2 OBJ: 0346. To determine cash payments for operating expenses for the cash flow statement using thedirect method, a decrease in prepaid expenses is added to operating expenses other thandepreciation.ANS: F DIF: 2 OBJ: 0347. To determine cash payments for operating expenses for the cash flow statement using thedirect method, a decrease in accrued expenses is added to operating expenses other thandepreciation.ANS: T DIF: 2 OBJ: 0348. To determine cash payments for income tax for the cash flow statement using the directmethod, an increase in income taxes payable is added to the income tax expense.ANS: F DIF: 2 OBJ: 0349. Free cash flow is cash flow from operations, less cash used to purchase fixed assets tomaintain productive capacity and cash used for dividends.ANS: T DIF: 1 OBJ: 0450. Free cash flow is the measure of operating cash flow available for corporate purposes afterproviding sufficient fixed asset additions to maintain current productive capacity anddividends.ANS: T DIF: 1 OBJ: 04MULTIPLE CHOICE1. Which of the following is not one of the four basic financial statements?a. balance sheetb. statement of cash flowsc. statement of changes in financial positiond. income statementANS: C DIF: 1 OBJ: 012. Which of the following concepts of cash is not appropriate to use in preparing the statementof cash flows?a. cashb. cash and money market fundsc. cash and cash equivalentsd. cash and U.S. treasury bondsANS: D DIF: 2 OBJ: 013. The statement of cash flows reportsa. cash flows from operating activitiesb. total assetsc. total changes in stockholders' equityd. changes in retained earningsANS: A DIF: 1 OBJ: 014. On the statement of cash flows, the cash flows from operating activities section would includea. receipts from the issuance of capital stockb. receipts from the sale of investmentsc. payments for the acquisition of investments个人收集整理勿做商业用途d. cash receipts from sales activitiesANS: D DIF: 2 OBJ: 015. Preferred stock issued in exchange for land would be reported in the statement of cash flowsina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: C DIF: 2 OBJ: 016. Cash paid to purchase long-term investments would be reported in the statement of cash flowsina. the cash flows from operating activities sectionb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. a separate scheduleANS: C DIF: 2 OBJ: 017. A statement of cash flows would not disclose the effects of which of the followingtransactions?a. stock dividends declaredb. bonds payable exchanged for capital stockc. purchase of treasury stockd. capital stock issued to acquire fixed assetsANS: A DIF: 2 OBJ: 018. Which of the following does not represent an outflow of cash and therefore would not bereported on the statement of cash flows as a use of cash?a. purchase of noncurrent assetsb. purchase of treasury stockc. discarding an asset that had been fully depreciatedd. payment of cash dividendsANS: C DIF: 2 OBJ: 019. Which of the following represents an inflow of cash and therefore would be reported on thestatement of cash flows?a. appropriation of retained earningsb. acquisition of treasury stockc. declaration of stock dividendsd. issuance of long-term debtANS: D DIF: 2 OBJ: 0110. A ten-year bond was issued at par for $150,000 cash. This transaction should be shown on astatement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activitiesd. operating activitiesANS: B DIF: 1 OBJ: 0111. Cash paid for preferred stock dividends should be shown on the statement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activities个人收集整理勿做商业用途d. operating activitiesANS: B DIF: 2 OBJ: 0112. The last item on the statement of cash flows prior to the schedule of noncash investing andfinancing activities reportsa. the increase or decrease in cashb. cash at the end of the yearc. net cash flow from investing activitiesd. net cash flow from financing activitiesANS: B DIF: 2 OBJ: 0113. Which of the following is a noncash investing and financing activity?a. payment of a cash dividendb. payment of a six-month note payablec. purchase of merchandise inventory on accountd. issuance of common stock to acquire landANS: D DIF: 2 OBJ: 0114. Which of the following should be shown on a statement of cash flows under the financingactivity section?a. the purchase of a long-term investment in the common stock of another companyb. the payment of cash to retire a long-term notec. the proceeds from the sale of a buildingd. the issuance of a long-term note to acquire landANS: B DIF: 2 OBJ: 0115. A company purchases equipment for $29,000 cash. This transaction should be shown on thestatement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activitiesd. operating activitiesANS: A DIF: 2 OBJ: 0116. Cash flow per share isa. required to be reported on the balance sheetb. required to be reported on the income statementc. required to be reported on the statement of cash flowsd. not required to be reported on any statementANS: D DIF: 1 OBJ: 0117. On the statement of cash flows prepared by the indirect method, the cash flows from operatingactivities section would includea. receipts from the sale of investmentsb. amortization of premium on bonds payablec. payments for cash dividendsd. receipts from the issuance of capital stockANS: B DIF: 2 OBJ: 0118. The statement of cash flows may be used by management toa. assess the liquidity of the businessb. assess the major policy decisions involving investments and financingc. determine dividend policyd. do all of the aboveANS: D DIF: 1 OBJ: 01个人收集整理勿做商业用途19. Depreciation on factory equipment would be reported in the statement of cash flows preparedby the indirect method ina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: D DIF: 2 OBJ: 0220. Which of the following should be added to net income incalculating net cash flow fromoperating activities using the indirect method?a. an increase in inventoryb. a decrease in accounts payablec. preferred dividends declared and paidd. a decrease in accounts receivableANS: D DIF: 2 OBJ: 0221. Which of the following should be deducted from net income in calculating net cash flow fromoperating activities using the indirect method?a. depreciation expenseb. amortization of premium on bonds payablec. a loss on the sale of equipmentd. dividends declared and paidANS: B DIF: 2 OBJ: 0222. Which of the following below increases cash?a. depreciation expenseb. acquisition of treasury stockc. borrowing money by issuing a six-month noted. the declaration of a cash dividendANS: C DIF: 2 OBJ: 0223. Which one of the following below would not be classified as an operating activity?a. interest expenseb. income taxesc. payment of dividendsd. selling expensesANS: C DIF: 2 OBJ: 0224. Which one of the following below should be added to net income in calculating net cash flowfrom operating activities using the indirect method?a. a gain on the sale of landb. a decrease in accounts payablec. an increase in accrued liabilitiesd. dividends paid on common stockANS: C DIF: 2 OBJ: 0225. On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale ofinvestments would bea. deducted from net income in converting the net income reported on the incomestatement to cash flows from operating activitiesb. added to net income in converting the net income reported on the income statementto cash flows from operating activitiesc. added to dividends declared in converting the dividends declared to the cash flowsfrom financing activities related to dividends个人收集整理勿做商业用途d. deducted from dividends declared in converting the dividends declared to the cashflows from financing activities related to dividendsANS: A DIF: 2 OBJ: 0226. Accounts receivable arising from trade transactions amounted to $45,000 and $52,000 at thebeginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method isb. $112,000c. $98,000d. $140,000ANS: C DIF: 2 OBJ: 0227. The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:End Beginning Cash $ 50,000 $ 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 89,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?a. $198,000b. $324,000c. $352,000d. $296,000ANS: D DIF: 3 OBJ: 0228. The following information is available from the current period financial statements:Net income .................................... $140,000Depreciation expense ..................... 28,000Increase in accounts receivable ....... 16,000Decrease in accounts payable ......... 21,000The net cash flow from operating activities using the indirect method isb. $163,000c. $107,000d. $205,000ANS: A DIF: 3 OBJ: 0229. On the statement of cash flows, the cash flows from investing activities section would includea. receipts from the issuance of capital stockb. payments for dividendsc. payments for retirement of bonds payabled. receipts from the sale of investmentsANS: D DIF: 2 OBJ: 02个人收集整理勿做商业用途30. A building with a book value of $ 45,000 is sold for $50,000 cash. Using the indirect method,this transaction should be shown on the statement of cash flows as follows:a. an increase of $45,000 from investing activitiesb. an increase of $50,000 from investing activities and a deduction from net income of$5,000c. an increase of $50,000 from investing activitiesd. an increase of $45,000 from investing activities and an addition to net income of$5,000ANS: B DIF: 2 OBJ: 0231. Cash paid for equipment would be reported in the statement of cash flows ina. the cash flows from operating activities sectionb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. a separate scheduleANS: C DIF: 2 OBJ: 0232. If a gain of $9,000 is incurred in selling (for cash) office equipment having a book value of$55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows isa. $46,000b. $9,000c. $55,000d. $64,000ANS: D DIF: 2 OBJ: 0233. Which of the following types of transactions would be reported as a cash flow from investingactivity on the statement of cash flows?a. issuance of bonds payableb. issuance of capital stockc. purchase of treasury stockd. purchase of noncurrent assetsANS: D DIF: 2 OBJ: 0234. Land costing $47,000 was sold for $78,000 cash. The gain on the sale was reported on theincome statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?a. $78,000b. $47,000c. $109,000d. $31,000ANS: A DIF: 2 OBJ: 0235. Equipment with an original cost of $50,000 and accumulated depreciation of $20,000 wassold at a loss of $7,000. As a result of this transaction, cash woulda. increase by $23,000b. decrease by $7,000c. increase by $43,000d. decrease by $30,000ANS: A DIF: 2 OBJ: 0236. On the statement of cash flows, the cash flows from financing activities section would includea. receipts from the sale of investmentsb. payments for the acquisition of investmentsc. receipts from a note receivabled. receipts from the issuance of capital stockANS: D DIF: 2 OBJ: 0237. On the statement of cash flows, the cash flows from financing activities section would includeall of the following excepta. receipts from the sale of bonds payableb. payments for dividendsc. payments for purchase of treasury stockd. payments of interest on bonds payableANS: D DIF: 2 OBJ: 0238. Cash dividends paid on capital stock would be reported in the statement of cash flows ina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: A DIF: 2 OBJ: 0239. Cash dividends of $80,000 were declared during the year. Cash dividends payable were$10,000 and $15,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year isa. $85,000b. $80,000c. $95,000d. $75,000ANS: D DIF: 2 OBJ: 0240. On the statement of cash flows, a $20,000 gain on the sale of fixed assets would bea. added to net income in converting the net income reported on the income statementto cash flows from operating activitiesb. deducted from net income in converting the net income reported on the incomestatement to cash flows from operating activitiesc. added to dividends declared in converting the dividends declared to the cash flowsfrom financing activities related to dividendsd. deducted from dividends declared in converting the dividends declared to the cashflows from financing activities related to dividendsANS: B DIF: 2 OBJ: 0241. A business issues 20-year bonds payable in exchange for preferred stock. This transactionwould be reported on the statement of cash flows ina. a separate scheduleb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. the cash flows from operating activities sectionANS: A DIF: 2 OBJ: 0242. Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on theincome statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?a. $50,000b. $78,000c. $118,000d. $68,000ANS: A DIF: 2 OBJ: 0243. The current period statement of cash flows includes the flowing:Cash balance at the beginning of the period................... $410,000Cash provided by operating activities ............................ 185,000 Cash used in investing activities .................................... 43,000Cash used in financing activities .................................... 97,000 The cash balance at the end of the period isa. $45,000b. $735,000c. $455,000d. $85,000ANS: C DIF: 2 OBJ: 0244. On the statement of cash flows, the cash flows from operating activities section would includea. receipts from the issuance of capital stockb. payment for interest on short-term notes payablec. payments for the acquisition of investmentsd. payments for cash dividendsANS: B DIF: 2 OBJ: 0345. The cost of merchandise sold during the year was $50,000. Merchandise inventories were$12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise totala. $49,000b. $47,000c. $51,000d. $53,000ANS: A DIF: 2 OBJ: 0346. Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at thebeginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method isa. $700,000b. $600,000c. $580,000d. $620,000ANS: D DIF: 2 OBJ: 0347. Operating expenses other than depreciation for the year were $400,000. Prepaid expensesincreased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expensesto be reported on the cash flow statement using the direct method would bea. $353,000b. $413,000c. $447,000d. $383,000ANS: C DIF: 2 OBJ: 0348. The following selected account balances appeared on the financial statements of the FranklinCompany:Accounts Receivable, Jan. 1 ........... $13,000Accounts Receivable, Dec. 31 ........ 9,000Accounts Payable, Jan 1 ................ 4,000Accounts payable Dec. 31 .............. 7,000Merchandise Inventory, Jan 1 ......... 10,000Merchandise Inventory, Dec 31 ...... 15,000Sales ............................................. 56,000Cost of Goods Sold ........................ 31,000The Franklin Company uses the direct method to calculate net cash flow from operatingactivities. Cash collections from customers area. $56,000b. $52,000c. $60,000d. $45,000ANS: C DIF: 3 OBJ: 0349. The following selected account balances appeared on the financial statements of the FranklinCompany:Accounts Receivable, Jan. 1 ......... $13,000Accounts Receivable, Dec. 31 ...... 9,000Accounts Payable, Jan 1 .............. 4,000Accounts payable Dec. 31 ............ 7,000Merchandise Inventory, Jan 1 ....... 10,000Merchandise Inventory, Dec 31 .... 15,000Sales ........................................... 56,000Cost of Goods Sold ....................... 31,000The Franklin Company uses the direct method to calculate net cash flow from operatingactivities. Cash paid to suppliers isa. $39,000b. $33,000c. $29,000d. $23,000ANS: B DIF: 3 OBJ: 0350. Income tax was $400,000 for the year. Income tax payable was $30,000 and $40,000 at thebeginning and end of the year. Cash payments for income tax reported on the cash flow statement using the direct method isa. $400,000b. $390,000c. $430,000d. $440,000ANS: B DIF: 2 OBJ: 0351. Free cash flow isa. all cash in the bankb. cash from operationsc. cash from financing, less cash used to purchase fixed assets to maintain productive。

财务会计题库英文及答案

财务会计题库英文及答案1. Question: What is the purpose of the statement of cash flows in financial accounting?Answer: The purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of an entity, showing how the changes in balance sheet accounts and income affect cash and cash equivalents, and to reveal the entity's financing and investing activities.2. Question: Explain the difference between a debit and a credit in double-entry bookkeeping.Answer: In double-entry bookkeeping, a debit is an entry on the left side of an account that either increases an asset or expense, or decreases a liability, equity, or revenue. A credit is an entry on the right side of an account that increases a liability, equity, or revenue, or decreases an asset or expense.3. Question: What is the accrual basis of accounting?Answer: The accrual basis of accounting is a method of accounting in which revenues and expenses are recognized when they are earned or incurred, not when cash is received or paid. This method provides a more accurate picture of a company's financial performance over a period of time.4. Question: How does depreciation affect a company's financial statements?Answer: Depreciation is a non-cash expense that allocates the cost of a tangible asset over its useful life. It affects the company's financial statements by reducing the asset's carrying value on the balance sheet and decreasing the net income on the income statement, which in turn can affect the retained earnings.5. Question: What is the primary goal of financial statement analysis?Answer: The primary goal of financial statement analysis is to assess the performance and financial condition of a company. It helps investors, creditors, and other stakeholders make informed decisions by evaluating the company's profitability, liquidity, solvency, and overall financial health.6. Question: What is the difference between a journal entry and a ledger entry?Answer: A journal entry records the initial transaction in the general journal, showing the date, accounts affected, and the amounts debited and credited. A ledger entry, on the other hand, is the posting of the journal entry to the appropriate accounts in the general ledger, which summarizes the transactions for each account.7. Question: Explain the matching principle in financialaccounting.Answer: The matching principle in financial accounting requires that expenses be recognized in the same period asthe revenues they helped to generate. This principle ensures that the income statement reflects the actual economic performance of the period and avoids distortions that could arise from recognizing revenues and expenses in different periods.8. Question: What is the purpose of adjusting entries?Answer: Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect the current financial position and performance of the company. They adjust for revenues and expenses that have been incurred but not yet recorded, or cash received or paid butnot yet recognized.9. Question: What is the difference between a budget and a forecast?Answer: A budget is a detailed financial plan thatoutlines expected revenues and expenses for a specific period, often used for internal management and control. A forecast,on the other hand, is a projection of future financial performance based on assumptions and trends, and is typically used for strategic planning and decision-making.10. Question: What is the role of the balance sheet infinancial accounting?Answer: The balance sheet is a financial statement that presents a company's financial position 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 stability. The balance sheet must always balance, with total assets equaling the sum of liabilities and equity.。

会计英语试题及答案

会计英语试题及答案精品文档会计英语试题及答案会计专业英语是会计专业人员职业发展的必要工具。

学习会计专业英语就是学习如何借助英语解决与完成会计实务中涉外的专业性问题和任务。

以下为你收集了会计英语练习题及答案，希望给你带来一些参考的作用。

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 3 B 1 and 4 C 3 only D 2 and 32. Johnny had receivables of $5 500 at the startof 2010. During the year to 31 Dec 2010 he makes credit sales of $55 000 and receives cash of $46 500 fromcredit2016 全新精品资料-全新公文范文-全程指导写作–独家原创1 / 88/乙Xjeipisqns uι IUoUJlSoMl!⑴乙IOOlIS θ□ue∣eq S <="">sθψ∣!qeι∣ IllaI」noSe 」eθdde XeUJ SuJ列βu∣M0∣∣0j oιμ joq□ιq∕v? 9 (i7)t U) α (ε) t U) O ⑵t(L) a(C) t(L) ? Onboip OOOL ⑹ MSeo OooI7(C) 」e□ XUedUJOo(乙)Xpedojd PUe t Iueujdinbe tιue∣d (I z) 乙IIO虫SOd ∣eι□ueu? jo juθuuθjejs θq; S <="">SlOSSe IllaI」nO-UOU Se 」eθdde XeUJ SuJ列βu∣M0∣∣0j jo q□ιq∕v?giso□ *Unα (OZnI)川0 e」!j ui tseη O (Odld) JnO jsj? ui JSJIJ g JSOo θβejθΛ?/ POIlIbQM ?<="" p="" sθ□μd="" uoiim="" θjb="" θlui;="">XJOJUΘΛUIβuιso∣□ 」oj ΘJ∩B?ιsθq6ιq θq; OJ peθ∣ OJ 人剛∣ si SPO屮OuJuoμen∣e ?X JOJUΘΛUIβUIM0∣∣0jo屮jo M□!M∕?Λ-PJθMl!3 a ΘJ∩S ION O ON a SO人?UllOuJOl印SMOIj qse□S < Auedωo□e jo θ□ej θq; UO」eθdde pied spuθp∣Λ∣p PInOqS CJOOOO17L$ a Ja 00017L$ 0 JO 009 8$a 」Cl OOG 8$ ??0L02 θθa Le 样sθ∣qeA∣θ□θJSJUnOooe oιμ UO θ□ue∣eq oιμ si Ie ilMsjθωojsn□(￡) θ□uθp ru c∣ (乙)on」丄(I z) uoμeωjθjuι∣eι□ueu? jo s□μsμθpejeq□ ΘLUOS ΘJB MOlθqpθjs∏ g厂PUe ￡ G厂PUe乙o ￡ PUe乙日乙PUe I z Vθ□ue∣eq ∣eμ; oιμ UJOJj pθμιujo uθθq Seq JUnOooe θ∣qeA∣θ□θj }UΘJθq;UO 0乙$7乙$ P θoue∣eq oι∣丄PIUnOooe lθsse sθ∣□ιqθA 」OIOuJ jo *qop θq; 0] POlSOduθθqSeq θ∣□ιqθA」OIOuJ EjO OleSjO spθθ□ojd 09「9$ C4!PaK) e Se θ□ue∣eq ∣eμ; θq; uι pθisι∣ uθθq X∣PΘJJO□UI Seq 089t Z乙$ JUnOooe sesuθdxθ 」OlOuJ oιμ UO θ□ue∣eq oι∣丄?乙JUnOooe θ∣qeλed IIlal o屮uι PalolUOuθθq JOU Seq IIlal jo juθωXed JOj 09「9$ Oq IlSeo oιμ uι UJ列UV - I z <="" θ□ue∣eq="" ∣eμ;=""> t pθj□θjjo□ UoIIM t p∣no□ SJ O JJθ θ∣qιssod βu∣M0∣∣0j oι∏jθ o∕?ΛlL P!Ψ?Λ08l7t920t L$ l!Pθ-∣O 0国266$:θje (Ho乙」OquJOIdoS OC lBωuue9 jo SIeJOJ θ□ue∣eq ∣eμ;oι∣丄Y(17)PUe (C)'⑵ α(17)PUe (C)t(L) O(17)PUe ⑵ t(L) a (C) PUe ⑵'⑴ ? pθ∏J□□e puθp∣Λ∣p θ□uθjθjθj c∣ (^) puθ 」eθλ IInllnpθ∏j□□eXeJ θuuo□u! @) JeeX ΘUO uiq;iM PaInleuJ ueoη (乙) 8/frθωes ΘJB jdθ□uo□ Buiqojeuj PUejdθ□uo□ SIenJooe jo XJOOιμ BuiXpepunoιμ (乙) ldθ□uo□ SIenJooe θq;UO peseq ΘJB SlUouJO冋S ∣eι□ueuy Ile (I z) ΘJBjdθ□uo□ SIenJooe JnOqe βu∣M0∣∣0joι∏jθ q□ιqM OLXIUO ￡ Cl XIUOZ PUe L O LUoln jo ∣∣? a AlUO C PUe乙 P 」eθλ UO 」eθλ XeM θωes oιμ uι pθjeθjj θq PInOqSSuJO* t θ∣qejedωo□ θq; θAθ∣q□e OJ 」θpjo uι (g)UJ 」Oj∣e6θ∣ UJOJj SJΘ?∣P sιq; j∣ UΘΛΘ SlllOuJ 印印S ∣eι□ueu ? θq; ui UMOqS θq SXeMIe JSnUJ uoμ□esuejj e jo J □Θ?Θ ∣eι□jθujujo□ OilHeιμ sueeuu U J 」Oj 」ΘΛO θ□uejsqns (乙) jθsse pexy oιμ UO XlIenUUe IIOwQaIdOP θβjeq□ XUedUJOo Suoprud θq o↑ (I z ) ΘJB SlllOuJoI 印S βu∣M0∣∣0j oι∏jθ q□ιq∕v ? Q ：({ H69d790εn..:P! })usnd ([] H XeJJVOJd□Mopu∣M = XeJJVOJ do ■ MO p u ι M )QaUOO ⑹ SSoUoelduJOO精品文档(3) accruals concept deals with any figure thatincurred in the period irrelevant with it ' s paid or not AlUO (I 7) PUe(C) t U)α AlUO (C) PUe (乙)t(L)0 AlUO ⑹ PUe ⑵ t (L) a AlUO ⑹ PUe (C) t (L) ? 乙心!∣!qm∣aιOtθtnqμιuo□ s□μsμθpejeq□ θseqj jo q□ιq∕v ?A. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only二、翻译题1 、将下列分录翻译成英文1. 借：固定资产清理30 000累计折旧10 000贷：固定资产40 0002 ．借：应付票据40 000贷：银行存款40 0002 、将下列词组按要求翻译(中翻英，英翻中) (1) 零用资金(2) 本票(3) 试算平衡(4) 不动产、厂房和设备(5) Notes and coins (6) money order (7) general ledger (8) direct debt (9) 报销(10) revenue and gains三、业务题Johnny set up a business and in the first a few days of trading the following transactions occurred (ignore2016 全新精品资料-全新公文范文-全程指导写作–独家原创5 / 88/9：({ HLZeI790ε∩..:P! })usnd?([] H XeJJVOJd□Mopu∣M = XeJJVOJ do ■ MO p u ιM)pu∏jθj e」oj UJIq OJ spooβ OOH Pθu」n?」OUJOlSrK)OnboIP V (OL PΘAIΘ□ΘJ si oz$ jθ ISalolι∣! >∣ueg(6 OOH 屮」OM M□!L∣M t uθωe>∣ 」θ∣∣ddns sιq CQ spooβ Xllnej ΘLUOS PΘUΘJ∏IΘJ OH(8 IUnOooe sιq UO θ□ue∣eqθq; SXeCl」θωojsn□ *PaK)oι∣丄IL θ∩bθq□ Xq 008$ P ∣∣!Q θuoqdθ∣θ; e SXeCl OH(9 ΘLUI;UO pθJθ?∣∣θp si spooβ t jιpθJ□ UO oOO 乙$ 」Oj t uθωe>∣t Jθ∣∣ddns 」θqjoue UJOJjspooβSXnq UOln OH (G θJ∩l∩j OLn uι XeCl o] sesiuuojd」OuJOlSnC) θq; PUe OOO 乙$」Oj OIeS」θqjoue sθ>∣euj XUUqOr (厂θ∩bθq□ Xq SXeCl」θuuoιsn□ θq; - OOOC$」Oj θpθω si θ∣es V (g luθiL∣Xed θq;」eye iq6μ pθJθ?∣∣θp si spooβ OIn tθ∩bθq□ Xq SXeCl PUe OOO 」oj」θ∣∣ddns e t∣θqes∣ UJOJj spooβ SXnq uθq; OH (乙JUnOooe Ieq sseuisnq sιq uι XΘUOLU sιq jo OOO 08$ SJSΘAUI Θ∏(I z :(X印o屮Ile8/ZIISeO 」0 θsuθdxθ eAijejjsiuiuupe 」CI (9θ∣qeA∣θ□9j SlUnOooe 」。

财务会计模拟试卷（英文版）

TRUE/FALSE1.The excess of revenue over the expenses incurred in earning the revenue is called capital.FANS: F DIF: 2 OBJ: 082.Drawings are an example of an expense.ANS: F DIF: 2 OBJ: 013.An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.ANS: T DIF: 2 OBJ: 024.A company depreciates its equipment $350 a year. The adjusting entry for December 31 is debitDepreciation Expense, $350 and credit Equipment, $350.TANS: F DIF: 4 OBJ: 035.After Net Income or Loss is entered on the work sheet, the debit column total must equal the creditcolumn total for the Balance Sheet pair of columns.TANS: T DIF: 3 OBJ: 026.The income summary account is closed to the owner's capital account.TANS: T DIF: 1 OBJ: 047.Accounts in the ledger are usually maintained in alphabetical order.ANS: F DIF: 2 OBJ: 018.The increase side of all accounts is the normal balance.FANS: T DIF: 2 OBJ: 039.The ending merchandise inventory for 2005 is the same as the beginning merchandise inventory for2006.TANS: T DIF: 2 OBJ: 0210.In a perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Soldis one of the accounts debited to record the transaction.YANS: T DIF: 2 OBJ: 0311.When an account receivable that has been written off is subsequently collected, the accountreceivable is reinstated.YANS: T DIF: 2 OBJ: 0412.A note receivable can be sold to a financial institution to secure cash before the maturity date. Thistype of transaction is called discounting the note receivable.YANS: T DIF: 1 OBJ: App13.All property, plant, and equipment assets are depreciated over time.FANS: F DIF: 2 OBJ: 0114.Capital expenditures are costs that are charged to Stockholders' Equity accounts.YANS: F DIF: 1 OBJ: 0315.Interest expense is reported in the operating expense section of the income statement.FANS: F DIF: 2 OBJ: 0216.Dividends in arrears are liabilities of the corporation.FANS: F DIF: 2 OBJ: 0317.A large retained earnings account means that there is cash available to pay dividends.YANS: F DIF: 2 OBJ: 0718.The amortization of a premium on bonds payable decreases bond interest expense.ANS: T DIF: 2 OBJ: 0419.The effective-interest method of amortizing a bond discount or premium is the preferred methodANS: T DIF: 2 OBJ: 0420.If two companies have the same current ratio, their ability to pay short-term debt is the same.FANS: F DIF: 2 OBJ: 02MULTIPLE CHOICE1.Which of the following is not a step in providing accounting information to stakeholders?Aa. design the accounting information systemb. prepare accounting surveysc. identify stakeholdersd. record economic dataANS: B DIF: 3 OBJ: 022.Which of the following applications of the rules of debit and credit is true?a. decrease Prepaid Insurance with a credit and the normal balance is a creditb. increase Accounts Payable with a credit and the normal balance is a debitc. increase Supplies Expense with a debit and the normal balance is a debitd. decrease Cash with a debit and the normal balance is a creditANS: C DIF: 3 OBJ: 033.A debit may signify a(n)a. decrease in asset accountsb. decrease in liability accountsc. increase in the capital accountd. decrease in the drawing accountANS: B DIF: 1 OBJ: 034.Which of the following applications of the rules of debit and credit is true?a. decrease Prepaid Insurance with a credit and the normal balance is a creditb. increase Accounts Payable with a credit and the normal balance is a debitc. increase Supplies Expense with a debit and the normal balance is a debitd. decrease Cash with a debit and the normal balance is a creditANS: C DIF: 3 OBJ: 03ing accrual accounting, expenses are recorded and reported onlya. when they are incurred, whether or not cash is paidb. when they are incurred and paid at the same timec. if they are paid before they are incurredd. if they are paid after they are incurredANS: A DIF: 3 OBJ: 016.If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n)Aa. deferralb. accrualc. revenued. liabilityANS: A DIF: 2 OBJ: 037.A net loss appears on the work sheet in thea. debit column of the Balance Sheet columnsb. credit column of the Balance Sheet columnsc. debit column of the Income Statement columnsd. credit column of the Adjustments columnsANS: A DIF: 2 OBJ: 028.On August 1, a company collects revenue in advance for the next twelve months and credits a liabilityaccount. The adjusting entry at year end on the work sheet wouldABCa. increase a liability accountb. decrease an asset accountc. decrease a revenue accountd. decrease a liability accountANS: D DIF: 3 OBJ: 029. A company, using the periodic inventory system, has merchandise inventory costing $140 on handat the beginning of the period. During the period, merchandise costing $400 is purchased. At year-end, merchandise inventory costing $180 is on hand. The cost of merchandise sold for the year isa. $720b. $550c. $360d. none of the aboveANS: C DIF: 4 OBJ: 0210.Which of the following accounts should be closed to Income Summary at the end of the fiscalyear?ACD？a. Merchandise Inventoryb. Accumulated Depreciationc. Drawingd. Cost of Merchandise SoldANS: D DIF: 1 OBJ: Ap211.The two methods of accounting for uncollectible receivables are the allowance method and the Ba. equity methodb. direct write-off methodc. interest methodd. cost methodANS: B DIF: 2 OBJ: 0312.Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (beforeadjustment), and an analysis of customers' accounts indicates doubtful accounts of $12,900.Which of the following entries records the proper provision for doubtful accounts?Da. debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts,$14,000b. debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense,$14,000c. debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense,$11,800d. debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts,$11,800ANS: D DIF: 3 OBJ: 0413.A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?Aa. $15,000b. $30,000c. $16,250d. $32,500ANS: C DIF: 3 OBJ: 0214.A capital expenditure results in a debit to Da. an expense accountb. a capital accountc. a liability accountd. an asset accountANS: D DIF: 1 OBJ: 0315.Pilgrim Company sells merchandise with a one year warranty. In 2008, sales consisted of 1,500 units.It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2008 and 70% in 2009. In the 2008 income statement, Pilgrim should show warranty expense of Aa. $4,500b. $10,500c. $15,000d. $0ANS: C DIF: 3 OBJ: 0316.The journal entry a company uses to record the issuance of a note for the purpose of borrowing funds forthe business is Ba. debit Accounts Payable; credit Notes Payableb. debit Cash; credit Notes Payablec. debit Notes Payable; credit Cashd. debit Cash and Interest Expense; credit Notes PayableANS: B DIF: 2 OBJ: 0217.The par value per share of common stock represents Aa. the minimum selling price of the stock established by the articles of incorporation.b. the minimum amount the stockholder will receive when the corporation is liquidatedc. an arbitrary amount established in the articles of incorporationd. the amount of dividends per share to be received each yearANS: C DIF: 1 OBJ: 03, 0418.Hurd Company acquired a building valued at $160,000 for property tax purposes in exchange for 10,000shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Hurd Company?Aa. $50,000b. $150,000c. $160,000d. $200,000ANS: B DIF: 1 OBJ: 0419.The entry to record the amortization of a premium on bonds payable isa. debit Premium on Bonds Payable, credit Interest Expenseb. debit Interest Expense, credit Premium on Bond Payablec. debit Interest Expense, debit Premium on Bonds Payable, credit Cashd. debit Bonds Payable, credit Interest ExpenseANS: C DIF: 3 OBJ: 0420. The following information is available for Duncan Co.:2006 Dividends per share of common stock $ 1.40Market price per share of common stock 17.50Which of the following statements is correct?Ca. The dividend yield is 8.0%, which is of interest to investors seeking an increase in marketprice of their stocks.b. The dividend yield is 8.0%, which is of special interest to investors seeking current returns ontheir investments.c. The dividend yield is 12.5%, which is of interest to bondholders.d. The dividend yield is 8.0 times the market price, which is important in solvency analysis.ANS: B DIF: 3 OBJ: 03Problems8.The balances in the ledger of Landscape Services as of December 31, 2005 before adjustments, are asfollows:Cash $ 4,500 Capital Stock $20,000 Supplies 4,150 Retained Earnings 13,050 Prepaid Insurance 8,700 Dividends 2,900 Equipment 42,000 Service Revenue 52,500 Accumulated Salary Expense 28,500 Depreciation 10,200 Rent Expense 5,000Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31, $1,000.(a) Prepare a ten-column worksheet for Landscape Services for December, 2005.(b) On the basis of the worksheet in (a), present the following in good order: (1) incomestatement, (2) retained earnings statement (no additional investments were made duringthe month), and (3) balance sheet.(c) On the basis of the worksheet in (a), journalize the closing entries as of December 31,2005.ANS:(a)Landscape ServicesWorksheetFor the Month Ended December 31, 2005 ) ) ) )Trial Balance Adjustments ) Account Title Dr. Cr. Dr. Cr. )Cash 4,500 ..... ..... ..... ) Supplies 4,150 ..... ..... (a) 3,150 ) Prepaid Insurance 8,700 ..... ..... (b) 900 ) Equipment 42,000 ..... ..... ..... ) Accumulated Depreciation ..... 10,200 ..... (c) 1,500 ) Capital Stock ..... 20,000 ..... ..... ) Retained Earnings ..... 13,050 ..... ..... ) Dividends 2,900 ..... ..... ..... ) Service Revenue ..... 52,500 ..... ..... ) Salary Expense 28,500 ..... (d) 1,000 ..... ) Rent Expense 5,000 ..... ..... ..... )95,750 95,750 )) Supplies Expense ..... ..... (a) 3,150 ..... ) Insurance Expense ..... ..... (b) 900 ..... ) Depreciation Expense ..... ..... (c) 1,500 ..... )Salaries Payable ..... ..... ..... d) 1,000 ) Net Income 6,550 6,550 )) (( Adjusted(Trial Balance Income Statement Balance Sheet( Dr. Cr. Dr. Cr. Dr. Cr. (( 4,500 ..... ..... ..... 4,500 ..... ( 1,000 ..... ..... ..... 1,000 ..... ( 7,800 ..... ..... ..... 7,800 ..... (42,000 ..... ..... ..... 42,000 ..... ( ..... 11,700 ..... ..... ..... 11,700 ( ..... 20,000 ..... ..... ..... 20,000 ( ..... 13,050 ..... ..... ..... 13,050 ( 2,900 ..... ..... ..... 2,900 ..... (...... 52,500 ..... 52,500 ..... ..... ( 29,500 ..... 29,500 ..... ..... ..... ( 5,000 ..... 5,000 ..... ..... ..... ( 3,150 ..... 3,150 ..... ..... ..... ( 900 ..... 900 ..... ..... ..... ( 1,500 ..... 1,500 ..... ..... ..... ( ..... 1,000 ..... ..... ..... 1,000 (98,250 98,250 40,050 52,500 58,200 45,750 (====== ====== 12,450 ...... ...... 12,450 ( 52,500 52,500 58,200 58,200 ( ====== ====== ====== ======(b) (1)Landscape ServicesIncome StatementFor the Month Ended December 31, 2005Service revenue $52,500 Operating expenses:Salary expense $29,500Rent expense 5,000Supplies expense 3,150 Depreciation expense 1,500Insurance expense 900Total operating expenses 40,050 Net income $12,450(2)Landscape ServicesRetained Earnings StatementFor the Month Ended December 31, 2005Retained Earnings, December 1, 2005 $13,050 Net income for the month $12,450Less dividends2,900Increase in owner's equity 9,550 Retained Earnings, December 31, 2005 $22,600(3)Landscape ServicesBalance SheetDecember 31, 2005Assets LiabilitiesCurrent assets:Cash $ 4,500 Current liabilities:Supplies 1,000 Salaries payable $ 1,000 Prepaid insurance 7,800Total currentassets $13,300 Stockholders' EquityCapital Stock 20,000 Property, plant, andRetained Earnings 13,050 equipment:Equipment... $42,000 Total stockholders' Equity 33,050 Less accumulated$43,600 depreciation 11,700 Total Liabilities andStockholders'Total property, Equityplant, andequipment 30,300Total assets $43,600(c)Closing EntriesJan. 31 Service Revenue 52,500Income Summary 52,50031 Income Summary 40,050Salary Expense 29,500Rent Expense 5,000Supplies Expense 3,150Insurance Expense 900Depreciation Expense 1,50031 Income Summary 12,450Retained Earnings 12,45031 Retained Earnings 2,900Dividends 2,900。

财务类英语试题及答案

财务类英语试题及答案一、选择题（每题1分，共10分）1. Which of the following is a common financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. All of the above2. The term "equity" in finance refers to:A. Money owed to a company.B. Money invested in a company.C. Money earned by a company.D. Money spent by a company.3. What is the formula for calculating the return on investment (ROI)?A. ROI = (Net Income / Total Assets) * 100B. ROI = (Total Assets / Net Income) * 100C. ROI = (Net Profit / Cost of Investment) * 100D. ROI = (Cost of Investment / Net Profit) * 1004. The process of forecasting a company's future financial position is known as:A. BudgetingB. ForecastingC. PlanningD. Analysis5. Which of the following is not a type of financial risk?A. Credit riskB. Market riskC. Liquidity riskD. Fixed risk6. The term "leverage" in finance is used to describe:A. The use of borrowed money to increase potential returns.B. The process of selling a financial asset.C. The amount of money a company has in the bank.D. The ratio of a company's equity to its debt.7. What does "EBIT" stand for in financial analysis?A. Earnings Before Interest and TaxesB. Earnings Before Income and TaxesC. Earnings Before Interest and TotalD. Earnings Before Interest, Taxes, and Depreciation8. The "time value of money" concept implies that:A. Money received in the future is worth less than money received today.B. Money received in the past is worth more than money received today.C. Money has no value over time.D. The value of money is constant over time.9. Which of the following is a method of financial analysis?A. SWOT analysisB. PEST analysisC. Ratio analysisD. Porter's Five Forces analysis10. The "break-even point" in finance is the point at which:A. A company's revenue equals its expenses.B. A company's net income is zero.C. A company's assets equal its liabilities.D. A company's cash flow is positive.答案：1. D2. B3. C4. B5. D6. A7. A8. A9. C10. A二、填空题（每题1分，共5分）11. The __________ is a financial statement that shows a company's assets, liabilities, and equity at a particular point in time.Answer: Balance Sheet12. The __________ is the difference between revenue and expenses during a specific period.Answer: Net Income13. In finance, the term "capital" often refers to the__________ of the business.Answer: Owners' Equity14. If a company's current assets are greater than itscurrent liabilities, it is said to have a positive __________. Answer: Working Capital15. The __________ is a measure of how well a company can pay its current debts.Answer: Quick Ratio三、简答题（每题5分，共10分）16. What is the purpose of a financial statement analysis?Answer: The purpose of financial statement analysis is to assess the performance and financial health of a company. It helps investors, creditors, and other stakeholders to make informed decisions about the company's financial stability, profitability, and risk.17. Explain the difference between "operating activities" and "financing activities" in the context of a cash flow statement.Answer: Operating activities in a cash flow statement referto the cash transactions that are directly related to thecore business operations of the company, such as cashreceived from sales and cash paid for expenses. Financing activities, on the other hand, involve cash transactions related to the company's financing arrangements, such as issuing or repaying debt, issuing or buying back shares, and paying dividends.四、计算题（每题5分，共5分）18. If a company has a net profit of $100,000 and a cost of investment of $500,000, what is the ROI?Answer: ROI = (Net Profit / Cost of Investment) * 100ROI = (100,000 / 500,000) * 100ROI = 20%五、论述题（每题10分，共10分）19. Discuss the importance of financial planning in business management.Answer: Financial planning is a critical component of business management as it helps in setting financial goals, allocating resources efficiently, and forecasting。

会计英语的考试题目及答案

会计英语的考试题目及答案会计英语考试题目及答案一、选择题（每题2分，共20分）1. What is the term used to describe the process of recording financial transactions in a company's books?A. BudgetingB. AccountingC. AuditingD. Forecasting答案：B2. Which of the following is not a type of financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Sales Report答案：D3. The process of ensuring that the financial records are accurate and complete is known as:A. BookkeepingB. AccountingC. AuditingD. Reporting答案：C4. What is the primary purpose of an income statement?A. To show the financial position of a company at a specific point in time.B. To show the changes in equity of a company over a period of time.C. To show the profitability of a company over a period of time.D. To show the cash inflows and outflows of a company over a period of time.答案：C5. Which of the following is not a principle of accounting?A. Accrual BasisB. ConsistencyC. MaterialityD. Fair Value答案：D6. The term "double-entry bookkeeping" refers to the practice of:A. Recording transactions twice in different accounts.B. Recording transactions in two different ways.C. Recording debits and credits for every transaction.D. Recording transactions in two different books.答案：C7. The accounting equation is:A. Assets = Liabilities + EquityB. Assets - Liabilities = EquityC. Liabilities - Equity = AssetsD. Equity - Assets = Liabilities答案：A8. What is the purpose of depreciation in accounting?A. To increase the value of an asset.B. To allocate the cost of a tangible asset over its useful life.C. To sell an asset.D. To calculate the profit of a company.答案：B9. Which of the following is a non-current liability?A. Accounts PayableB. Wages PayableC. Long-term DebtD. Taxes Payable答案：C10. The term "revenue recognition" refers to the process of:A. Recognizing expenses when they are paid.B. Recognizing revenues when they are earned.C. Recognizing assets when they are acquired.D. Recognizing liabilities when they are incurred.答案：B二、简答题（每题5分，共20分）1. Explain the difference between "cash basis" and "accrual basis" accounting.答案：Cash basis accounting records transactions when cash is received or paid, whereas accrual basis accounting records transactions when they are earned or incurred, regardless of the cash flow.2. What is the purpose of a balance sheet?答案：The purpose of a balance sheet is to present thefinancial position of a company at a specific point in time, showing what the company owns (assets), what it owes (liabilities), and the net worth of the company's owners (equity).3. Define "depreciation" in the context of accounting.答案：Depreciation is the systematic allocation of the costof a tangible asset over its useful life, reflecting the consumption of the asset's economic benefits over time.4. What is the importance of an audit in the financial reporting process?答案：An audit provides an independent assessment of the accuracy and completeness of a company's financial statements, enhancing their credibility and reliability for stakeholders.三、案例分析题（每题15分，共30分）1. Assume you are an accountant for a company that has just sold a product for $10,000 on credit. Prepare the journalentry for this transaction under both cash basis and accrual basis accounting.答案：Under cash basis, no journal entry is made until cashis received. Under accrual basis, the journal entry would be: Dr. Accounts Receivable $10,000Cr. Revenue $10,0002. A company has the following transactions in January: purchased office supplies for $500 in cash, received $2,000for services provided in December, and accrued $1,500 in wages for January. Prepare the adjusting entries for these transactions at the end of January.答案：The adjusting entries would be:Dr. Office Supplies Expense $500Cr. Office Supplies $500 (for cash purchase)Dr. Accounts Receivable $2,000Cr. Revenue $2,000 (for services provided in December)Dr. Wages Payable $1,500Cr. Wages Expense $1,500 (for accrued wages)四、论述题（每题15分，共30分）1. Discuss the role of ethics in accounting and provide examples of ethical dilemmas that an accountant might face. 答案。

财务会计英语unit3

Section 1 Current Liabilities
• 1.7 Taxes payable (应交税费)
Sales taxes (销售税) These taxes are paid by customers to the sellers, who in turn forward to the state or city.
• 1.1 Accounts Payable Accounts payable are amounts owed to suppliers. They are incurred when purchase occurs. Example 3.1 To illustrate, let’s refer to the information in Example 2.7. In the book of Lott Law Firm, there was a debit entry of $550 in Accounts Receivable, but in Dickson Hunter’s book the entry would be: Legal Consultancy Services 550 Other Accounts Payable 550
Purchase 1000 Accounts Payable 1000
April 28 Purchase 2000 Accounts Payable 2000
Section 1 Current Liabilities
• 1.2 Notes payable Notes payable are of both short and long terms. Short-term notes payable are obligations represented by promissory notes.

高教版《财会英语》自学练习题附答案完整版共13Chapters

Self StudyI. Choose the best answer for each question below.1. What is the time period assumption?A) Companies should recognize revenue in the accounting period in which it is earned.B) Companies should match expenses with revenues.C) The economic life of a business can be divided into artificial time periods.D) The fiscal year should correspond with the calendar year.2. An interim period is generally ______.A) less than one yearB) more than one yearC) more than one year but less than the life of the companyD) the life of the company3. Which principle dictates that efforts (expenses) be recorded with accomplishments(revenues)?A) Matching principle.B) Cost principle.C) Periodicity principle.D) Revenue recognition principle.4. The objectivity principle of accounting ______.A) maintains that each organization or section of an organization stands apart from otherorganizations and individualsB) ensures that accounting records and statements are based on the most reliable dataavailableC) holds that the entity will remain in operation for the foreseeable futureD) enables accountants to ignore the effect of inflation in the accounting records5. The stable-monetary-unit concept of accounting ______.A) maintains that each organization or section of an organization stands apart from otherorganizations and individualsB) ensures that accounting records and statements are based on the most reliable dataavailableC) holds that the entity will remain in operation for the foreseeable futureD) enables accountants to ignore the effect of inflation in the accounting records6. The going-concern concept of accounting ______.A) maintains that each organization or section of an organization stands apart from otherorganizations and individualsB) ensures that accounting records and statements are based on the most reliable dataavailableC) holds that the entity will remain in operation for the foreseeable futureD) enables accountants to ignore the effect of inflation in the accounting records7. The principle which states that assets acquired by the business should be recorded at their actual price is the ______.A) objectivity principleB) stable dollar principleC) cost principleD) reliability principle8. The CEO of a business owns a residence in Phoenix. The company the CEO works for ownsa residence in Tucson used for strategic planning meetings by its executives. Which of these properties is considered assets of the business?A) The Phoenix residence only.B) The Tucson residence only.C) Both the Phoenix and Tucson residences.D) Neither the Phoenix nor Tucson residences.9. Generally accepted accounting principles are ______.A) a set of standards and rules that are recognized as a general guide for financial reportingB) usually established by tax bureauC) the guidelines used to resolve ethical dilemmasD) fundamental truths that can be derived from the laws of nature10. There are two methods used to account for transactions. These methods are ______.A) cash and deferralB) cash and accrualC) accrual and deferralD) deferral and prepaid11. Which of the following generally provides a better indication of an enterprise’s present andcontinuing ability to generate favorable cash flows?A) Cash basis accounting.B) Accrual basis accounting.C) Managerial basis accounting.D) Financial basis accounting.12. Financial statements are ______.A) reports issued by outside consultants who are hired to analyze key operations of thebusinessB) reports created by management that states it is responsible for the acts of thecorporationC) standard documents that tell us how well a business is performing and where it stands infinancial termsD) standard documents issued by outside consultants who are hired to analyze keyoperations of the business in financial terms13. Which of the following best describes a liability?A) Liabilities are a form of paid-in capital.B) Liabilities are future economic benefits to which a company is entitled.C) Liabilities are accounts receivable of the corporation.D) Liabilities are economic obligations to creditors to be paid at some future date by thecorporation.14. The owners’ interest in the assets of a corporation is known as ______.A) long-term assetsB) stockholders’ equityC) operating expensesD) common stock15. Net income is computed as ______.A) revenues – expensesB) revenues + expensesC) revenues – expenses + dividendsD) revenues – expenses – dividends16. The accounting equation can be stated as ______.A) Assets + Liabilities = Stockholders’ equityB) Assets = Liabilities + Stockholders’ equityC) Assets = Liabilities - Stockholders’ equityD) Assets + Stockholders’ equity = Liabilities17. An investor wishing to assess a company’s financial position at the end of the period wouldprobably examine ______.A) the statement of cash flowsB) the income statementC) the balance sheetD) the statement of retained earnings18. Which of the following statements regarding accounts is false?A) An asset is increased by a debit and decreased by a credit.B) Dividends are increased by credits and decreased by debits.C) A liability is decreased by a debit and increased by a credit.D) Revenue is increased by a credit and an expense is increased by a debit.19. Double-entry accounting means that each transaction ______.A) is recorded in both the journal and in the ledgerB) increases at least one account and decreases at least one accountC) affects both an income statement account and a balance sheet accountD) debits at least one account and credits at least one account20. All of the following statements about the conceptual framework are correct except it _____.A) is a coherent system of interrelated objectives and fundamentals that can lead toconsistent standardsB) prescribes the nature, function, and limits of financial accounting and financialstatementsC) increases financial statement users’ understanding of and confidence in financialreportingD) all of these options are correctII. Fill in the blanks with the proper words.1. ________________________are the principal means through which financial information iscommunicated to those outside an enterprise.2. The cash basis of accounting recognizes revenues and expenses only when _____is receivedor paid.3. Under the _______ basis of accounting, the accountant recognizes the impact of a businesstransaction on an entity when the transaction occurs, whether or not cash is received or paid.4. Financial accounting information must meet certain standards of relevance and _______.5. _____________________provides a reference point for developing and adopting accountingstandards in countries.6. A soundly developed conceptual framework should enable the standards-setters to issue moreuseful and consistent ________ over time.7. Accounting ___________ is the process of determining the monetary amounts at which theelements of the financial statements are to be recognized and carried in the financial statements.III. True or False questions.1. The stable monetary unit concept means that the type of currency used for the financialstatements is not expected to change. ( )2. The objectivity principle states that assets and services should be recorded at their actual cost,since cost is a reliable measure to use in financial accounting. ( )3. Using accrual accounting, revenues are not recorded until the cash for the revenue is received.( )4. Accrual accounting is more complete and complex than cash accounting. ( )5. The matching principle requires the identification of liabilities and matching them with theassets used to pay them. ( )6. Under the revenue principle, businesses should record revenue when it is earned regardless ofwhen payment is received from the customer. ( )7. The application of the matching principle results in the recognition of net income or net loss.( )8. Accrual accounting provides some ethical challenges that cash accounting avoids. ( )9. The historical cost principle applies even when a firm is not a going concern. ( )10. There are no exceptions to the revenue recognition rule that revenue is only recognized atthe time of sale. ( )IV. CaseRelevance and reliability are the two primary qualities that make accounting informationuseful for decision making. Subject to constraints imposed by cost and materiality, increased relevance and increased reliability are the characteristics that make information a more desirable commodity—that is, one useful in making decisions. If either of those qualities is completely missing, the information will not be useful. Though, ideally, the choice of an accounting alternative should produce information that is both more reliable and more relevant, it may be necessary to sacrifice some of one quality for a gain in another.Questions:1. Is the following statement true or false?The pervasive criterion of accounting information is decision usefulness. ( )2. The primary qualities of accounting information are ______.A)comparability and consistencyB)relevance and consistencyC)comparability and reliabilityD)reliability and relevance3. In providing information with the qualitative characteristics that make it useful, twooverriding constraints that must be considered are ______.A) industry practices and conservatismB) materiality and conservatismC) cost-benefit relationship and industry practicesD) cost-benefit relationship and materialityV. Supplementary reading.Deferrals and AccrualsAt the end of accounting period, the business reports its financial statements. Before the preparation, some accounts must be adjusted to update. Accounting adjustments fall into two basic categories: deferrals and accruals.A deferral is an adjustment for which the business paid or received cash in advance. Prepaid rent, prepaid insurance and all other prepaid expenses require deferral adjustments. Depreciation is the most common long-term deferral. This kind of deferrals is deferred expenses. As to the expired part of the cost, a certain expense account is debited and prepaid asset account is credited.There are also deferral adjustments for liabilities, such as unearned revenue. This earning process requires an adjustment at the end of each accounting period. The adjustment decreases the liability and increases the revenue for the amount of revenue earned. Publishers of newspaper sell subscriptions and collect cash in advance. This kind of deferrals is deferred revenue. As to the expired part of the liability, a certain revenue account is credited and liability account is debited.An accrual is the opposite of a deferral. For an accrued expense, the business records an expense before paying cash. For accrued revenue, it records the revenue before collecting cash. The term accrued expense refers to a liability that arises from an expense that has not yet beenpaid. For example, companies don’t accrue tax expenses daily or weekly until the end of month when tax return is prepared for tax payment in the following month. Adjusting entry should include a debit to expense account and a credit to liability account.Businesses often earn revenues before they receive the cash. A revenue that has been earned but not yet collected is called an accrued revenue. Adjusting entry includes a debit to asset account and a credit to revenue account.Notes:deferral 递延项目accrual 应计项目depreciation 折旧adjusting entry 调整分录Self-examination:1. Indicate whether the resulting adjustment will be a deferral or an accrual. The first item iscompleted as an example.2. Multiple-choice questions.(1) An accrual refers to an event ______.A) where the expense or revenue is recorded after the cash settlementB) where the liability is recorded after the cash settlementC) where the expense or revenue is recorded before the cash settlementD) where the asset is recorded after the cash settlement(2)The term deferral refers to an event ______.A) where the recognition of an expense or revenue is recorded before the cash is paid orreceivedB) where the liability for an expense is recorded after the expense is actually incurredC) where the liability for an expense is recorded before the expense is actually incurredD) where the recognition of an expense or revenue is recorded after the cash is paid orreceivedKeysI. 1. C 2. A 3. A 4. B 5. D 6. C 7. C 8. B 9. A 10. B 11. B 12. C 13. D 14.B 15. A 16. B 17.C 18. B 19.D 20. DII. 1. Financial statements 2. cash 3. accrual 4. reliability 5. Conceptual framework6. standards7. measurementIII. 1. F 2. F 3. F 4. T 5. F 6. T 7. T 8. T 9. F 10. FIV. 1. T 2. D 3. DV. 1.2. (1) C (2) DSelf StudyI. Choose the best answer for each question below.1. The ledger ________ .A). should always have a credit balance.B). is the book of original entry.C). accumulates the increases and decreases that occur during the period for a single balance sheetor income statement item.D). compiles all source documents.2. The trial balance is ________ .A). a listing of all accounts with their balances.B). the listing of all accounts.C). a place where a running balance of an account is kept.D). the book of original entry.3. Which is the correct order of accounting process?A). ledger, journal, trial balance, balance sheet, income statementB). journal, ledger, trial balance, balance sheet, income statementC). journal, trial balance, ledger, balance sheet, income statementD). journal, ledger, trial balance, income statement, balance sheet4. Which is the correct description of a general ledger?A). a journal in which transactions are first recordedB). the primary ledger, when used in conjunction with subsidiary ledgers, that contains all of thebalance sheet and income statement accountsC). a book in which a complete record of transactions is first recorded and from which transactionamounts are posted to the accountsD). a document containing detailed descriptions of all transactions5. A debit may signify________ .A）. an increase in an asset accountB）. a decrease in an asset accountC）. an increase a liability accountD）. an increase in the owner’s capital account6. To find an explanation of a transaction, one should look at________ .A). general ledgerB). journalC). trial balanceD). chart of accounts7. The trial balance ensures that________ .A). the proper accounts are affectedB). the debits equal the credits in the journal.C). the debits equal the credits in the ledger.D). none of the above8. Which of the following errors can cause the trial balance to be out of balance?A). the balance of an account is incorrectly computedB). an entire journal entry is not posted to the journalC). an entire transaction is not recorded in the journalD). a debit entry is entered in the wrong debit account9.The receipt of cash from customers in payment of their accounts would be recorded by a________ .A). debit to Accounts Receivable; credit to CashB). debit to Cash; credit to accounts payableC). debit to Accounts Payable; credit to CashD). debit to cash, credit to Accounts Receivable10. The beginning cash balance of the company was $4000. At the end of the period, the balance was $6,200. If total cash paid out during the period was $24,000, the amount of cash receipts was_______ .A）$26,200 B）$21,800 C）$36,200 D）$34,200II. Fill in the blanks with the proper words.plete the following statements by using the word debit and credit.A. Asset accounts normally have ______ balances. These accounts increase on the _______side and decrease on the ______ side.B. Liability accounts normally have _____ account. These accounts increase on the ______ sideand decrease on the ______ side.C. Expenses decrease owner’s equity and are ______ to the appropriate expense account.2. A company receives cash and issues stock. Cash and Common Stock are affected. Cash is______ and Common Stock is ______. Both cash and Common Stock increase. ______ cash to record an increase in this asset. ______ common stock to record an increase in the equity account.III. True or False questions.1. The general ledger contains the accounts that make up the entity’s financial statements. ( )2. When special journals are used, the more the transactions that are involved, the more theposting time is saved. ( )3. Even if the trial balance provides arithmetical proof that debits equal credits, it does not detectall errors. ( )4. A $800 receipt from a customer in payment of his account posted as a $800 debit to Cash and a$8 credit to Accounts Receivable will not cause the trial balance to be out of balance. ( )5. If the equipment account has a balance of $22,500 and its accumulated depreciation account hasa balance of $14,000, the book value of the equipment is $8,500. ( )IV. CaseTime Warner Cable offers Digital Cable TV, High-Speed Online and Digital Phone services to many areas across the United States. Suppose that the company began business in 2010 by issuing common stock for $100 million and completed the following transactions.Time Warner Cable paid $70 million to purchase satellite and other communication equipment.During the remainder of the year, the company bought supplies and other equipment on account for $60 million. Before year end the company paid $55 million on account. Time Warner borrowed $35 million on a note payable. Revenues for the year totaled $26 million, and expenses were $22 million. All revenues were collected in cash, and $21 million of the expenses were paid during the year. Time Warner has a liability for the remaining expenses.The top managers of the company are evaluating Time Warner at December 31, 2010, and they want to know where the company stands financially. They would like you to provide the answers to the following questions:1.How much are the company’s total assets?2.How much does the company owe?3.What was the net income or net loss for the year?V. Prepare journal entries, a partial list of the account titles used by the company includes:Cash, Accounts Receivable, Office Supplies, Office Equipment, Vehicles, Notes Payable, Accounts Payable, Capital Stock, Client Revenue, Office Rent Expense, Salaries Expense, Utilities Expense.May 3 Issued capital stock in exchange for $800 000 cash.May 4 Paid May office rent expense of $1 000.May 5 Purchased office supplies for $400 cash, the supplies will last for several months.May 15 Purchased office equipment for $8 000 on account. The entire amount is due June 15.May 18 Purchased a company car for $27 000. Paid $ 7000 cash and issued a note payable for the remaining amount owed.May 20 Billed client $32 000 on account.May 26 Paid May utilities of $ 200May 30 Received $30 000 from clients billed on May 20.May 31 Recorded and paid salary expense of $14 000.VI. Supplementary Reading.Is It Fair to Blame Fair Value Accounting (公平价值会计)for the Financial Crisis?What was the primary cause of the current financial crisis? Subprime mortgages, credit default swaps(信用违约交换), or excessive debt? None of those, says Steve Forbes, chairman of Forbes Media and sometime political candidate. In his view, mark-to-market (按市价入账的会计) accounting was “the principal reason” that the U.S. financial system melted down in 2008.Do accounting rules actually pack such a wallop(猛击、痛打)? For readers not schooled in financial jargon, marking to market is the practice of revaluing an asset quarterly according to the price it would fetch if sold on the open market, regardless of what was actually paid for it. Because the practice allows for no outdated or wishful-thinking （一厢情愿）valuations, it is a key component of what is known as fair value accounting. And it is at the center of the hottest accounting debate in decades.Many bankers pilloried（公开抨击）fair value accounting when the sudden seize-up of credit markets in the fall of 2008 drove the clearing prices for key assets held by their institutions to unprecedented lows. Economist Brian Wesbury represented the views of that group when he declared, “Mark-to-market accounting rules have turned a large problem into a humongous one. A vast majority of mortgages, corporate bonds, and structured debts are still performing. But because the market is frozen, the prices of these assets have fallen below their true value.” Wesbury and Forbes argue that marking to market pushed many banks toward insolvency （无力常债、倒闭）and forced them to unload assets at fire-sale prices, which then caused values to fall even further. Persuaded by such arguments, some politicians in the United States and Europe have called for the suspension of fair value accounting in favor of historical cost accounting, in which assets are generally valued at original cost or purchase price.Yet mark-to-market accounting continues to have its proponents, who are equally adamant. Lisa Koonce, an accounting professor at the University of Tex as, wrote in Texas magazine: “This is simply a case of blaming the messenger. Fair value accounting is not the cause of the current crisis. Rather, it communicated the effects of such bad decisions as granting subprime loans and writing credit default swap s.… The alternative, keeping those loans on the books at their original amounts, is akin to（类似地、相似地）ignoring reality.” Shareholder groups have gone even further, asserting that marking to market is all the more necessary in today’s environment. The invest ment advisory group of the Financial Accounting Standards Board (FASB) stressed that “it is especially critical that fair value information be available to capital providers and other users of financial statements in periods of market turmoil accompanied b y liquidity crunches.” In this view, if banks did not mark their bonds to market, investors would be very uncertain about asset values and therefore reluctant to help recapitalize troubled institutions.Which camp has the right answer? Perhaps neither. We do not want banks to become insolvent because of short-term declines in the prices of mortgage-related securities. Nor do we want to hide bank losses from investors and delay the cleanup of toxic assets—as happened in Japan in the decade after 1990. To meet the legitimate needs of both bankers and investors, regulatory officials should adopt new multidimensional approaches to financial reporting.Before we can begin to implement sensible reforms, though, we must first clear up some misperceptions about accounting methods. Critics have often lambasted the requirement to write down impaired assets to their fair value, but in reality impairment is a more important concept for historical cost accounting than for fair value accounting. Many journalists have incorrectly assumed that most assets of banks are reported at fair market value, rather than at historical cost. Similarly, many politicians have assumed that most illiquid assets must be valued at market prices,despite several FASB rulings to the contrary. Each of these myths bears close examination.KeysI. 1. C 2. A 3. D 4. B 5. A 6. B 7. C 8. A 9. D 10. AII. 1. A. debit debit creditB. credit credit debitC. debited2. asset equity Debit CreditIII. 1. T 2. F 3. T 4. F 5. TIV. 1. $145 mil2. $41 mil3. Net inc. $4 milV.May 3Cash 800 000 Capital Stock 800 000 May 4Office Rent Expense 1 000 Cash 1 000. May 5Office Supplies 400 Cash 400 May 15Office Equipment 8 000 Accounts Payable 8 000 May 18Vehicles 27 000. Cash 7 000 Notes Payable 20 000 May 20Accounts Receivable 32 000 Client Revenue 32 000. May 26Utilities Expense 200 Cash 200 May 30Cash 30 000 Accounts Receivable 30 000 May 31Salaries Expense 14 000. CashSelf StudyI. Choose the best answer for each question below.1. Which of the following is not one of the features of the balance sheet?A) Assets, liabilities and owners’ equity are three classified items of balance sheet.B) The balance sheet can be prepared from the work sheet.C) The balance sheet presents detailed and specific data that are enormous and difficult toread.D) The balance sheet can help lenders to make lending decisions.2. Which of the following is NOT one of the basic financial statements?A) Balance sheet.B) Accounting work sheet.C) Income statement.D) Statement of cash flows.3. Which of the following can be considered a current asset?A) Inventory.B) Equipment.C) Land.D) Franchise.4. Intangible assets do NOT include ______.A) copyrightsB) brandC) goodwillD) bonds5. Current liabilities include the following except ______.A) accrued liabilitiesB) dividends payableC) notes payableD) prepaid expenses6. Which of the following is the feature of liabilities?A) Current liabilities and long-term liabilities constitute the two categories of liabilities.B) Liabilities are not desirable because it means debts to the firm.C) A firm must pay all its liabilities by the same deadline in the future.D) A liability arises when a business liquidates a portion of its debts.7. Which of the following descriptions is NOT right about owners’ equity?A) Owners’ equity is the resources invested by the owner of the company.B) Owners’ equity is always equal to the total assets plus the liabilities.C) The owner of the company can claim his benefits after the creditors.D) Owners’ equity is also called shareholders’ equity in a corporation.8. Shareholder s’ equity in a corporate form of ownership is ______.A) solely composed of paid-in capitalB) solely composed of retained earningsC) not any more complicated than owners’ equity in a partnershipD) more complicated than owners’ equity in a partnership9. Which of the following descriptions about the balance sheet is NOT right?A) The balance sheet can be arranged in the account form.B) The balance sheet can be arranged in the report form.C) The assets and the liabilities can be listed on the left-hand side and the owners’ equityon the right-hand side.D) The assets can be listed at the top and followed by the liabilities and owners’ equity.10. Which of the following is a correct statement about the balance sheet?A) In the balance sheet, assets are listed in the order of intangible assets, current assets andlong-term assets.B) Notes receivable are always listed before accounts receivable, inventories, and cash.C) Preferred stock, common stock and paid-in capital are usually listed before retainedearnings.D) Liabilities are always listed before the owners’ equity.II. Fill in the blanks with the proper words.1. Cash includes bank deposits, currency, coin, checks, bank _______, and money _______, etc.2. Accounts receivable are owed by a customer for sales of services or merchandise _______and are _______ by customers to pay in the future.3. When a sum of money is borrowed by the firm, a _______ is incurred.4. Owner s’ equity is a _______ claim because the claims of the ________ legally come first.5. Decreases of the owners’ equity are caused in two ways: _______ of cash and _______ fromunprofitable operation.6. A balance sheet sets forth two major parts in its format: ________ and ________ of thestatement.7. If ABC Company has assets of $300,000 and owner’s equity of $50,000, its liabilities shouldbe ________.III. True or False questions.1. The balance sheet presents a flowing picture of the company’s financial position at a specifictime. ( )2. Tangible assets have no physical existence, but they do have value that may bring thebusiness huge profits. ( )3. A company that borrows money from an external party is called a creditor.( )4. Long-term liabilities are obligations that a business does not expect to liquidate within thenormal operating cycle or one year. ( )5. Retained earnings refers to the business’s cumulative net incomes. ( )IV. CaseTask #1 Classify each account listed below into one of the following categories.Task #2 Rearrange the account items in the order in which you would expect to find them in a typical balance sheet and explain why you put them in that order.Task #3 Prepare a balance sheet and determine the missing number.。

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Chapter 1Page 81.Classify following items as either an expense (E),a revenue(R),an asset(A),or a liability( L);Cash, buildings, salaries of the sales force, $5 owed to a company for work performed, Mortgage to a bank, sales.Answer:Cash—A Buildings—A Salaries of the sales force—E$5 owed—L Mortgage to a bank—L Sales—R2. Classify each of the following as n operating (O), bank (I) , or financing (F) in a statement of cash flows; Wage paid to workers, Cash received form a bank in the form of a mortgage, cash dividends paid to a supplier of inventory, Cash paid to purchase a new machine.Answer:Wage paid—O Cash of mortgage-- F Cash dividends paid -- FCash paid to supplier of inventory—O Cash paid to purchase a machine—IPage111.List several economic decisions that rely on accounting information.Answer:·Whether to grant a loan·How much to pay for a share of common stock.·Whether to grant a rate increase to an electric utility·How much in damages the loser of a lawsuit must pay ·How much of a bonus to pay a plant manager·Whether to enter a new market2. Why do financial statements have footnotes, and what kinds of information might you find in them?Answer:Financial statements have footnotes because financial disclosure is a complex business. The notes tell us some of the specifics about the company environment , what accounting methods the company has used, what the accounting numbers might be if alternative methods had been used, and some of the major contingencies that are not formally included in the statement proper.Page 201.Describe the process of setting accounting standards. What are the roles of all the parties you mention?Answer:The FASB, a private, not-for-profit organization ,sets GAAP in the U.S. It publicly declares an agenda, promulgates "ExposureDrafts" of proposed standards, holds open meetings, and invites input from interested parties. The FASB has been delegated this authority by the SEC, a government agency with legal authority to determine GAAP.2.Think of an example, like the executive compensation example in the chapter, where incentives might exist to bias accounting numbers one way or another.Answer:There are other examples, but here is one that is different. A taxpayer has incentives to bias reported income downward in order to minimize income tax payments. However, it is important to understand that tax accounting rules are different from GAAP, and this book is about GAAP. Chapter 14 covers GAAP for taxes in more detail.Other examples include:·An entrepreneur seeking a loan from a bank or funding from a venture capitalist might have incentives to bias accounting numbers to look favorable.·A firm that is subject to scrutiny for earning excess profits(e.g.,an oil company）might have incentives to bias accounting numbers to look less favorable.·A utility subject to rate regulation might have an incentive tobias accounting numbers to look less favorable in order to gain more generous increases in its rates. (At this writing, there is a rather severe controversy about whether electric utilities in California are genuinely in financial difficulty and should be allowed to continue to impose large rate increase.)Chapter 2Page 381 Define assets, liabilities, and equities.Gave an example ofeach. How are assets valued? How are liabilities valued? Answer:An asset is a probable future economic benefit obtained or controlled by an entity as a result of a past transaction. Cash marketable securities, accounts receivable, inventories, prepaid expenses, patents, copyrights, trademarks, and property, plant and equipment are all examples of assets. A liability isa probable future sacrifice of economic benefits arisingfrom present obligations of an entity to transfer assets or provide services as a result of a past transaction or event.Accounts payable, accrued liabilities, unearned revenues, warranties, and bonds payable are all examples of liabilities.Accounting valuation of assets uses severaldifferent methods, including market value, expected realizable value, lower of cost or market, present value of future cash flows, and historical cost. Accounting valuation of liabilities is the expected amount that will be paid, perhaps adjusted for the time value of money.2. Explain what is meant by the entity concept. Answer:The entity is the person or organization about which accounting's financial history is being written.3 .A company signs a ten-year employee contract with a vicepresident. The salary is $ per year, guaranteed. Is this contract an asset? Would it appear on the balance sheet?Explain.Answer:The rights conveyed by the contrat may be an asset from an economic point of view, but they are not an asset under GAAP. The contract would not appear on the balance sheet as an asset, because GAAP does not record executory contracts, which are contracts that require future performance form both parties. That is ,GAAP views the contract as determining what services will be provided, no asset is recognized under GAAP.(Neither is a liability for payment recognized until services have beenperformed.)4 .A company purchased a parcel of land 10 years ago at a cost of $.The land has recently been appraised at $. At what value is the land carried in the balance sheet? How does the appraisal affect the carrying value in the balance sheet? Answer:The land is on the balance sheet at its historical cost of $.The carrying value of the land is unaffected by the appraisal. Page 421、Define debit and credit .What kind of balance ,debit or credit ,would you expect to find in the inventory T-account？In the Common Stock T-account?Answer:A debit is an entry on the left side of a T-account. A credit is an entry on the right side of a T-account. We would except to find a debit balance in Inventory, and credit balances in Bonds Payable and Common Stock. The reason is the convention that increases in assets are debits and increases in liabilities and equities are credits.2、If the trial balances, it means that you have analyzed all the effects of transactions correctly. True or false？Explain.Answer:False. A balanced means that the trial balance is consistent, not necessarily correct. For example. If an arbitrary entry is made that debits Cash and credits Common Stock for an equal amount, the trial balance will balance but it will be wrong. An accounting can receipt of cash and the issuance of common stock, but it alone can not make cash or additional common shares.3﹑Suppose Web sell leases a portion of its space to another company. Web sell’s accounts are debited and credited to record this transaction?Answer:Web sell would debit Cash and a liability, Rent Received in Advance, for the prepayment.Chapter 3Page 571. Define revenue and expense. How does one decide to list an item as revenue in an income statement? What is matching? Answer:Revenues are increases in net assets resulting from operations over a period of time .Expense are decreases in net assets resulting from operations over a period of time .Revenue isrecognized the earnings process is substantially complete , a transaction2. Give an example not found in the text , of an expense that is paid for in cash in a prior accounting period .In a subsequent accounting period.Answer:There are many allowable responses . An example is a patent that is purchased and paid for in one year and used in next .3. Give an example, not found in the text , of a revenue that is received in cash in a prior accounting period . In a subsequent accounting period .Answer:An example is a house painting contractor that receives payment for one-third of the contract price before beginning the painting .4. Explain why it is right to think of an asset as a cost and an expense as an expired cost .Answer:An asset is a future benefit . And there is an opportunity cost associated with not selling it for cash or exchanging it to settleChapter 6Page 120:1.The following table lists the adjustments and has an X in thecolumn indicating the approach:2. We first take adjustment for prepaid insurance and insurance expense. It would be easy to think of this adjustment as focusing on how much of the insurance coverage remained, as opposed to how much was used. In fact, the same type of logic could be used---computing a monthly rate for the coverage and applying that to the months reminding, instead of the months used.Now take adjustment for depreciation expense and accumulated depreciation. Estimating the value of the equipment at year end might be easy, for example, if there is a market for used equipment, or very difficult, for example, if the equipment was specially designed for Websell. Once a value estimate for the equipment at year end is obtained, depreciation expense would be the change in value over the year.Page 1231.$5000×(1+0.06)^10=$5000×1.79085=$8954.242.$5000×(1+0.06/2)^(10×2)=$5000×(1+0.03)^20=$5000×1.80611=$9030.563. $1000×(1.05)^3+$1000×(1.05)^2+$1000×(1.05)^1=$3310.134. ($1000×0.05/5)^13+$1000×(1+0.05/5)^10+$1000×(1+0.05/5)^5=($1000×(1.01)^15)+($1000×(1.01)^10)+($1000×(1.01)^5) =$1160.97+$1104.62+$1051.01=$3316.6Page 1241.x×.(1.07)^3=$3000 x=$3000/(1.07)^3=$2448.892. Calculate the present value at 10% of $1300 received two years from now. If that is greater than $1000, you are better offwith the $1300 to be received in two years. If its present value is less that $1000, you better off with $1000 now. $1300/(1.10)^2=$1074.38Therefore, you are better off receiving $1300 two years from now.Another way to do this problem is to take the future value at 10% of $1000. At the end of two years, the $1000 would compound up to:$1000×(1.10)^2=$1210,Which is less than you would have at that point if you took the $1300.3．The most I would be willing to pay is the present value at 8% of the stream of $1000 payment:$1000/(1.08)^1+$1000/(1,08)^2+$1000/(1,08)^3=$925.926+857.339+793.832=$ 2577.1(rounded)Chapter 8Page 1681.Aging takes the balance in accounts receivable at the end of the year, and sorts it by how long ago the transaction occurred that gave rise to that receivable. Experience has shown that “older” accounts have less likelihood of ever being collected.Percentages of likely uncollectibles for each category are applied to the totals in that category , and the results added to obtain an estimate of the allowance for uncollectibles required to value properly the estimated amount that will be collected from the accounts receivable. The bad debts expense then falls out as a “plug” in the allowance for uncollectibles.The percentage-of-sales method just estimates bad debt expense as a percent of sales, and plug the balance in the allowance account.2. Cash (118)Accounts receivable (118)12/31/2003(to recognize collection of cash from companies owing service co. from 2002 sales)Allow ance for doubtful accounts (7)Accounts receivable (7)12/31/2003(to write off accounts we know will not be collected) Ac counts receivable (125)Sales reven ue (125)12/31/2003(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2003, we would record.06×$=$7500 in baddebts expense.B ad debts expense………………………………………7.5 Allowan ce for doubtful accounts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accounts(10.5 is the “plug”,i.e., the number that drops out)Now we move to 2004, where events now proceed as expected . Collections are $117.5 thousand. Cash………………………………………………..117.5 Accounts receivable…………………………………117.512/31/2004(to recognize collection of cash form companies owing service co. from 2003 sales)Allowance for doubtful ac counts………………………7.5 Accounts receivable………………………………….7.512/31/2004(to write off accounts we know will not be collected)Accounts receivable (125)Sales revenue (125)12/31/2004(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2004, we would record.06×$=$7500 in bad debts expense.Bad debts expense……………………………………7.5 Allowance for doubtful acco unts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)The allowance for doubtful accounts using the peentage-of-sales method looks like this:Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accountsOnly the entries recording bad debt expense are different using the aging method. Instead of the above entries recording bad debt expense, we would have the following analysis: Each year, we would adjust the balance in the allowance for doubtful accounts so that the net receivable ends up at $. That is, we would solve $-X=$,and find that the ending balance in the allowance for doubtful accounts must be $7500.Analyzing the account, we would determine that at 12/31/2003 we must add $4500 to the allowance for doubtful accounts: Bad debts expense………………………………..4.5 Allowanc e for doubtful accounts…………………….4.512/31/2004(to record bad debt expense in anticipation of not collecting 100% of receivables)At 12/31/2004, we must add $7500 to the allowance for doubtful accounts:Bad debts expense………………………………..7.5 Allowan ce for doubtful accounts…………………….7.512/31/2004(to record bad debt expense in anticipation of not collecting 100% of receivables)Using aging, the allowance for doubtful accounts T-account looks like this:Method two: focus on the ending balance in the allowance for doubtful accounts.Allowance for doubtful accountsChapter 9Page 1831.LIFO is last-in first-out. It means that in computing ending inventoryand cost of goods sold, the cost of items sold is assigned in reverse chronological order of their purchase, beginning from the most regent items purchased in a period. FIFO is first-in, first-out .It means that in computing ending inventory and cost of goods sold, the cost of items sold is assigned in chronological order of their purchase, beginning from the goods on hand at the beginning of the period. Average cost means that in computing ending inventory and cost of goods sold, the average unit cost of the beginning inventory and items purchased in a period is used to determine the cost of goods sold and remaininginventory.2.Yes, it is still a positive net present value project. In fact, its netpresent value is higher than when the purchase was made at$1.05 per unit, since the cash outflow is reduced but the cash inflow remains the same. The cash outflow on 12/31/01 when purchases are at $0.95 per unit is $114.This means the net cash flow at 12/31/01 is ($4) instead of ($16),and the NPV for Widget Company is:NPV=-100-$4/1.1+$10/ (1.1^2) +$144/ (1.1^3) =$12.82First, we redo the case of FIFO. The inventory T-account is:Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Net incomes are:Widget Incomes using FIFONow we redo the case of FIFO. First, the inventory T-account is: Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Net incomes are:Page 186To calculate the market-to-book ratios and accounting returns on equity: Market-to-book Ratios under Average CostAccounting Rates of Return under Average CostCollecting the results for FIFO from the chapter and these results for average cost, we have:Market-to-book Ratios under Various Cost Flow AssumptionAccounting Rates of Return under Various Cost Flow AssumptionAs is apparent, the market-to-book ratios and accounting rates of return for average cost are between for LIFO and FIFO.2. Because it has more recent costs on the balance sheet in the inventory account, FIFO has market-to-book ratios closer to 1regardless of whether prices rise or fall.Chapter 10Page 1961. The total profit on the transaction is the sales price of $880.00 less the original cost of $734.03:Sales price of securities $880.00Less : original cost ($735.03)Profit on transaction $144.97The cash flows were: $735.03 out on January1, 2001, and $880.00 in on January 3, 2003.There were profit in 2001, 2002, and 2003.In 2001, therewas a profit of $81.17.In 2003,there was a profit of $5.00.2. The unadjusted book value of the security on December 31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing its carrying value by $3.83 is required to write it down to its market value: Unrealized loss on market value securities-trading ……3.83 Marketable securities –trading ………… 3.83 If the security were sold for $810.00 on January 3, 2003, the entry would be:Cash ………………………………810.00Marketable securities –trading ………………790.00Gain on marketable securities-trading …………20.001/03/2003(To record the sale of the Marketable securities—trading )Page 1981. When a securities is classified as trading security, profits or losses show up on the income statement in every period from when the security is purchased until when it is sold. when a security is classified as available-for-sale ,profits or losses only show up on the income statement in the period in which the security is sold.2. the unadjusted book value of the security on December31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing it’s carrying value by $3.83 is required to write it down to it’s market value. however unlike the trading security case ,the unrealized loss is an equity account ,not a temporary account:Unrealized loss on marketable securities-available-for-sale 3.38 Marketable securities –trading ………………3.83To record the sale of the security for $810.00 on January 3,2003: Cash ………810.00Unrealized gain on marketable securities-available-for-sale(58.80-3.83) ………54.97Marketable securities-trading …………790.00Realized gain on marketable securities-available-for-sale ……………74.9712/31/2002(To mark-to-market the Marketable securities—available-for-sale)Chapter 111．a. Under straight-line depreciation, the depreciation expense each year is$600-$100/5 years=$100 per year.b. Under double-declining balance depreciation, the depreciation expense each year is given in the following table:c. Under sum-of-year’-digits depreciation, the depreciation expense each year is given in the following table:Sum-of years’-digits depreciation2. Intangible assets are most often shown in one line that is cost net of amortization. Tangible assets are sometimes shown in three lines: cost , accumulated depreciation, and net .3. Economic depreciation is the change in the economic value of the asset. Economic depreciation can be appreciation when the asset increases in value. We seen this already with marketable debt securities, which sometimes increase in valuebecause of unpaid interest4.It is easy and fulfills the requirement of GAAP to provide depreciation using a systematic and rational method. No GAAP depreciation method likely correctly reflects economic depreciation anyway ,so a simple expedient may be good enough.1．Sraight-line depreciation is $100 per year ($300/3 years).Double-declining balance depreciation is given in the following table:2.For straight-line depreciation,the entry is the same each year:Depreciation expense (100)Accumulateddepreciation (100)For double-declining balance depreciation,the entries are: Year1Depr eciation expense (200)Accu mulated depreciation (200)Year2Depreciation expense………………………………66.67 Acc umulated depreciation………………………66.67 Year3.declining balance because depreciation expense under straight-line is only $100,while under double-declining balance depreciation expense is $200.4.If the company buys one asset every year and each asset lasts three years,then in year 4 it will have three assets.Under straight-line depreciation,each of those assets generates a depreciation expense of $100;therefore total depreciation expense would be 3*$100,or $300.Under double-declining balance depreciation,total depreciation expense depends on the age of each asset.The company would have one asset in its first year of life,one in its second year of life,and one in its third year.Therefore,totaldepreciation expense would be:$200+$66.67+$33.33=$300,the same as under straight-line.Both depreciation methods give the same total depreciation because:1.Both methods fully depreciate the assets over their lives.2.The cost of the assets has remained constant.3.The company is in a steady state in which the number ofnew assets purchased in a period equals the number ofold assets being retired in that period.。

财务会计(英)答案

CHAPTER 11-1 Accounting is a process of identifying, recording, summarizing and reporting economic information to decision makers.1-2 No. Accounting is about real information about real companies.In learning accounting it is helpful to see accounting reports from various companies. This helps put the rules and techniques of accounting into a framework that makes them easier to understand.1-3 Examples of decisions that are likely to be influenced by financial statements include choosing where to expand or reduce operations, lending money, investing ownership capital, and rewarding mangers.1-4 Users of financial statements include managers, lenders, suppliers, owners, income tax authorities, and government regulators.1-5 The major distinction between financial accounting and management accounting is their use by two classes of decision makers. Management accounting is concerned mainly with how accounting can serve internal decision makers such as the chief executive officer and other executives. Financial accounting is concerned with supplying information to external users.1-6 Balance sheets are also called statements of financial condition and statements of financial position.1-7 No. Every transaction should leave the balance sheet equation in balan ce. Accounting is often called “double-entry” because at least two entries are required for each transaction to keep the equation in balance.1-8 This is true. When a company buys inventory for cash, one asset is traded for another, and neither total assets nor total liabilities change. Thus, the balance sheet equation stays in balance. When a company buys inventory on credit, both inventory and accounts payable increase. Thus, both total assets and total liabilities increase by the same amount, again keeping the balance sheet equation in balance.1-9 The evidence for a note payable includes a promissory note, but the evidence for an account payable does not.1-10 Owners' equity is also called capital (for proprietorships and partnerships) and shareholders' equity or stockholders' equity (for corporations).1-11 Limited liability means that corporate owners are not personally liable for the debts of the corporation. Creditors' claims can be satisfied only by the assets of the particular corporation.1-12 The corporation is the most prominent type of entity and corporations do by far the largest volume of business.1-13 Yes. In the United Kingdom corporations frequently use the word limited (Ltd.) in their name. In many countries whose laws trace back to Spain, the initials S.A. refer to a “society anonymous” meaning that multiple unidentified owners stand behind the company, essentially the same as a corporation.21-14 No. The fundamental accounting principles apply equally to nonprofit (that is, not-for-profit) and profit-seeking organizations.Managers and accountants in hospitals, universities, government agencies, and other nonprofit organizations use financial statements. Money must be raised and spent, budgets must be prepared, and financial performance must be judged.Nonprofit organizations need to use their limited resources wisely, and financial statements are essential for judging their use of resources.1-15 Almost all states forbid the issuance of stock at below par; thus, par values are customarily set at very low amounts and have no real importance in affecting economic behavior of the issuing entity.1-16 The board of directors is the link between stockholders and the actual managers. It is the board’s duty to ensure that managers act in the interests of shareholders.1-17CPA is a Certified Public Accountant. One becomes a CPA by a combination of education, qualifying experience, and the passing of a two-day national examination.1-18The auditor increases the value of financial statements by reassuring the reader of the statements that an “independent”and a “qualified” third party has reviewed managements disclosures and believes they fairly present the company’s performance. The fact that you personally do not recognize the name of the audit firm should not be a problem, because only CPAs can perform public audits and sign audit opinions. Every state has strict procedures for licensing CPAs, so such people are qualified.Chapter 1 Accounting: The Language of Business 31-19Such arguments are fun but can never be truly resolved. The notion behind the importance of the corporation and business law is that for any substantial growth to occur there must be a system for organizing resources and using them over long periods of time. The corporate form of ownership helps companies raise large amounts of capital via stock issuance as well as borrowing; it allows us to separate ownership from management; it protects the personal assets of shareholders and, because their maximum losses can be limited, more risky undertakings can be financed; and it has perpetual life so its activity is not disruptive by the death of any shareholder. The general arguments in favor of business law as an important element are similar. Business law provides a set of established rules of behavior for entering into contracts and being sure that other parties can be relied upon to uphold their side of an agreement. Hopefully, some adventurous student will suggest that the question leaves out another really important innovation . . . accounting.1-20Double-entry refers to the concept that every transaction involving two or more accounts with the effect being to retain the balance in the accounting equation. The double-entry concept is important conceptually because it emphasizes that there are assets and claims on assets. In the balance sheet, for example, borrowing money provides an asset, cash, and creates a liability.In addition to this conceptual benefit there is a clerical benefit.Maintaining a balanced relationship provides an indicator of errors. If the accounting equation does not balance, an error has been made.41-21Historians are primarily concerned with events that have already occurred. In that sense, the financial statements do report on transactions that are complete. The negative side of this is that many important things that affect the value of a firm are based on what will happen in the future. Thus, investors often worry about expectations and predictions. Of course, there is no way to agree on the accuracy of expectations and predictions. The positive side of historical financial statements is that they present a no-nonsense perspective on what actually happened, where the company was at a point in time, or what it accomplished over a period of time. It is easier to predict the future when you know where you are. You might liken the importance of historical financial statements to the importance of navigation instruments. If you do not know where you are and where you are headed, it is very hard to get to where you want to go.Chapter 1 Accounting: The Language of Business 51-22 (15-20 min.)May 11 Owners invested $6,000 additional cash in LaTech Company.12 Owners invested an additional $4,000 into thecompany by contributing additional store fixturesvalued at $4,000.15 LaTech Company purchased additional inventory for$3,000 cash.16 LaTech Company purchased inventory on accountfor $5,000.17 LaTech Company collected $3,000 cash on accountsreceivable.18 LaTech Company purchased $6,000 of store fixtures,paying $5,000 cash now and agreeing to pay $1,000later.19 LaTech Company paid $2,000 on accounts payable.22 LaTech Company returned $400 of computermerchandise for credit against accounts payable.23 Owners withdrew $3,000 cash from LaTech Company. 61-23 (10-20 min.)Sept. 1 Monterrey Company collected $2,000 cash on account.2 Monterrey purchased $2,500 of store fixtures onaccount.3 Owner withdrew $3,000 cash.4 Monterrey sold $5,000 of computers for $1,000 cashand $4,000 accounts receivable5 Computers valued at $7,000 were invested in thecompany by owners.8 Monterrey paid $500 on accounts payable.9 Monterrey purchased $3,000 of store fixtures, paying$500 now and agreeing to pay $2,500 later.10 Monterrey returned $300 of store fixtures for creditagainst accounts payable.11. Monterrey collected $3,000 cash from accountsreceivable.Chapter 1 Accounting: The Language of Business 71-24 (15-25 min.)ALBANY CORPORATIONBalance SheetMarch 31, 20X1Liabilities andAssets Stockholders' Equity Cash $ 6,000 (a)Liabilities:Accounts receivable 14,000 Accounts payable $ 11,000(f) Notes receivable 2,000 Notes payable 10,000 Merchandise inventory 43,000 (b) Long-term debt 32,000 (g) Furniture and fixtures 2,000 (c) Total liabilities 53,000 Machinery and equipment 27,000 (d)Stockholders' equity:Land 31,000 (e) Paid-in capital 92,000 (h) Building 20,000Total $145,000 Total $145,000(a) Cash: 10,000 + 1,000 – 5,000 = 6,000(b) Merchandise inventory: 40,000 + 3,000 = 43,000(c) Furniture and fixtures: 3,000 – 1,000 = 2,000(d) Machinery and equipment: 15,000 + 12,000 = 27,000(e) Land: 6,000 + 25,000 = 31,000(f) Accounts payable: 8,000 + 3,000 = 11,000(g) Long-term debt: 12,000 + 20,000 = 32,000(h) Paid-in capital: 80,000 + 12,000 = 92,000Note: Event 5 requires no change in the balance sheet.81-25 (25-35 min.)BROADWAY CORPORATIONBalance SheetNovember 30, 20X1Liabilities andAssets Stockholders’ EquityCash $ 13,000 (a) Liabilities:Accounts receivable 16,000 (b) Accounts payable $ 10,000 (e) Notes receivable 8,000 Notes payable 31,000 (f) Merchandise inventory 29,000 Long-term debt 119,000 (g) Furniture and fixtures 8,000 Total liabilities 160,000 Machinery and equip. 34,000 (c) Stockholders’ equity:Land 35,000 (d) Paid-in Capital 213,000 (h) Building 230,000Total $373,000 Total $373,000(a) Cash: 22,000 – 6,000 – 3,000 = 13,000(b) Accounts receivable: 10,000 + 6,000 = 16,000(c) Machinery and equipment: 20,000 + 14,000 = 34,000(d) Land: 41,000 – 6,000 = 35,000(e) Accounts payable: 16,000 – 6,000 = 10,000(f) Notes payable: 20,000 + (14,000 – 3,000) = 31,000(g) Long-term debt: 142,000 – 23,000 = 119,000(h) Paid-in capital: 190,000 + 23,000 = 213,000Note: Event 4 requires no change in the balance sheet.Chapter 1 Accounting: The Language of Business 91-26 (5-10 min.)1. Total liabilities = Total assets -stockholders’ equity= $405,000,000,000 - $43,000,000,000= $362,000,000,0002. Common stock, par value = $.16 x 3,715,018,000 =$594,402,880.Like other items on General Electric’s balance sheet, the amount would be rounded off to millions:Common stock, par value $5941-27 (15-20 min.)SOPHIA BRENTANO, REALTORBalance SheetNovember 30, 20X1Liabilities andAssets Owners' EquityCash $ 9,000 Liabilities:Accounts receivable 1,000 Accounts payable $ 6,000 Undeveloped land 180,000 Mortgage payable 95,000 Office furniture 16,000 (a) Total liabilities 101,000 Franchise 15,000 (b)Owner's equity:Lisa Angelo, capital 120,000 (c)Total liabilities andTotal assets $221,000 owner's equity $221,000 a$17,000 – $1,000 = $16,000b A franchise is an economic resource that has been purchased tobenefit future operations.c$221,000 – $101,000 = $120,000101-27 (continued)Note that Goldstein's death may have considerable negative influence on future operations, but the account does not formally measure its monetary impact. Moreover, transactions 3 and 4 are personal rather than business transactions.1-28 (20-30 min.) See Exhibit 1-28, on the following page.1-29 (15-25 min.) See Exhibit 1-29 on page 13.Chapter 1 Accounting: The Language of Business 11EXHIBIT 1–28CRYSTAL CLEANERSAnalysis of April 20X1 Transactions(In Thousands of Dollars)Assets Liabilities and Owners' EquityAccounts Equipment Note Accounts Stockholders' Description of Transactions Cash + Receivable + and Furniture = Payable + Payable + Equity1. Issuance of stock +40 = +402. Issuance of stock +20 = +203. Borrowing +35 = +354. Acquisition for cash –30 +30 =5. Acquisition on account +10 = +106. Payments to creditors – 4 = – 47. Sale of equipment +8 – 8 =8. No entry =9. Cash collections + 3 –3 =+44 +5 +52 = +35 + 6 + 60CRYSTAL CLEANERSBalance SheetApril 30, 20X1Assets Liabilities and Stockholders' EquityLiabilities:Cash $ 44,000 Note payable $ 35,000Accounts receivable 5,000 Accounts payable 6,000Equipment and furniture 52,000 Total liabilities $ 41,000Owners' equity 60,000 Total $101,000 Total $101,00012EXHIBIT 1–29WALGREEN COMPANYAnalysis of Transactions(In Millions of Dollars)Assets Liabilities and Owners' EquityAccounts Inven- and Other Notes Accounts Other holders' Description of Transactions Cash + Receivable + tories + Assets = Payable + Payable + Liabilities + Equity Balance August 31 13 614 2,831 3,646 = 1,364 1,506 4,2341. Issuance of stock +30 = + 302. Issuance of stock +45 = + 453. Borrowing +12 = +124. Acquisition for cash –13 +13 =5. Acquisition on account +90 = +906. Payments to creditors –35 = –357. Sale of equipment +1 –1 =8. Cash collections +8 – 8 =Balance September 2 15 607 2,921 3,703 = 12 1,419 1,506 4,309WALGREEN COMPANYBalance SheetSeptember 2, 2000(In Thousands of Dollars)Assets Liabilities and Stockholders' EquityCash $ 15 Notes payable $ 12Accounts receivable 607 Accounts payable 1,419Inventories 2,921 Other liabilities 1,506Property and other assets 3,703 Stockholders' equity 4,309Total $7,246 Total $7,246Chapter 1 Accounting: The Language of Business 131-30 (20-35 min.)1. See Exhibit 1-30 on the following page.2. NIKE, INC.Balance SheetJune 3, 2000Liabilities andAssets Shareholders' Equity Cash $ 376 Total liabilities 2,778 Accounts receivable 1,589 Shareholders' equity 3,226 Inventories 1,477Equipment and otherassets 2,562Total $6,004 Total $6,004 14EXHIBIT 1–30NIKE, INC.Analysis of Transactions(In Millions of Dollars)AssetsLiabilities and Owners’ EquityDescription of Transactions Cash + AccountsReceiv-able +Inven-tories +Equipmentand OtherAssets =TotalLiabil-ities +Share-holders’EquityBalance May 31 254 1,567 1,446 2,590 2,721 3,1361. Inventory purchased -16 +16 =2. Inventory purchased +19 = +193. Return of Inventoryto supplier -4 = -44. Purchase of equipment -3 +12 = +95. Sale of equipment +40 -40 =6. No entry =7. Payment to creditor -17 = -178. Collection from debtor +18 -18 =9. Borrowed from bank +50 = +5010. Issued common stock +90 = +9011. No entry except ondetailed underlyingrecords = Balance, June 3 376 1,589 1,477 2,562 =Chapter 1 Accounting: The Language of Business 151-31 (20-35 min.)1. See Exhibit 1-31 on the following page.2. XYZ CORPORATIONJanuary 31,20X1Analysis of Transactions(In Thousands of Dollars)Liabilities andAssets Stockholders' EquityLiabilities:Cash $142 Note payable $ 30 Accounts receivable 2 Accounts payable 104 Merchandise inventory 254 Total liabilities $134 Equipment 36 Stockholders' equity:Capital stock, common,$1 par,60,000 sharesissued and outstanding $ 30Additional paid-in capitalin excess of par value 270 300 Total $434 Total $434 16EXHIBIT 1–31XYZ CORPORATIONJanuary 20X1Analysis of Transactions(In Thousands of Dollars)Assets Liabilities + Owners' EquityAccounts Merch- Capital AdditionalReceiv- andise Equip- Notes Accounts Stock Paid-in Description of Transactions Cash + able + Inventory + ment = Payable + Payable + (at par) + Capital1. Original incorporation +300 = + 30 + 2702. Inventory purchased –80 +80 =3. Inventory purchased +85 = + 854. Return of inventory tosupplier –11 = – 115. Purchase of equipment –10 +40 = +306. Sale of equipment + 4 – 4 =7. Payment to creditor –20 = – 208. Collection from debtor + 2 – 2 =9. Inventory purchased –50 +100 = + 5010. No entry except ondetailed underlyingrecords =Balance, January 31, 19X1=Chapter 1 Accounting: The Language of Business 171-32 (20-35 min.)1. See Exhibit 1-32 on the following page.2. YUKON PRODUCTSBalance SheetMarch 31, 20X1Liabilities andAssets Stockholders' EquityCash $41,800 Liabilities:Receivables 2,600 Accounts payable $ 4,500 Inventory 16,600 Note payable 9,000 Equipment 17,500 Total liabilities $13,500You, capital 65,000 Total $78,500 Total $78,500 The individual receivables and payables could be identified separately18EXHIBIT 1–32YUKON PRODUCTSAnalysis of TransactionsFor the Month Ended March 31, 20X1Assets Liabilities + Owners' EquityReceiv- Equip- Accounts Note You, Description of Transactions Cash + ables +Inventory + ment = Payable + Payable + Capital1. Initial investment +60,000 = +60,0002. Inventory acquired for cash 10,000 +10,000 =3. Inventory acquired on credit + 8,000 = + 8,0004. Equipment acquired – 5,000 +15,000 = +10,0005. No entry =6. Gloves for family + 600 – 600 =7. Gloves returned tosupplier for cash + 300 – 300 =8. No effect on total inventory =9. Caps returned tosupplier for credit – 500 = – 50010. Payment on note – 1,000 = –1,00011. Equipment acquired + 5,000 = +5,00012. Payment to creditors – 3,000 = –3,00013. No entry14. No entry15. Exchange of equipment + 500 +2,000 – 4,000 =+ 1,500+41,800 +2,600 +16,600 +17,500 =Chapter 1 Accounting: The Language of Business 191-33 (25-40 min.)1. See Exhibit 1-33 on the following page.2. JOSE GOMEZ, ATTORNEY-AT-LAWBalance SheetDecember 31, 20X1Liabilities andAssets Owners' EquityLiabilities:Cash in bank $31,000 Note payable $ 2,000 Note receivable 2,000 Account payable 1,000 Rental damage deposit 1,000 Total liabilities $ 3,000 Legal supplies on hand 1,000 Owner's equity:Computer 4,000 Jose Gomez, capital 40,000 Office furniture 4,000 Total liabilities andTotal assets $43,000 owner's equity $43,0001-34 (10 min.)1. Cash would rise by $1,000 and the liability, Deposits,would rise by the same amount.2. Deposits are liabilities because Citigroup owes theseamounts to depositors. They are depositors' claims on the assets of the bank.3. Loans receivable would increase and Cash woulddecrease by $50,000.4. Deposits would decrease and Cash would decrease by$4,000.20EXHIBIT 1–33JOSE GOMEZ ATTORNEYAnalysis of Business Transactions(In Thousands of Dollars)Assets = Liabilities & Owner's EquityOwner's Cash Note Rental Legal Office Liabilities Equity Description in Receiv- Damage Supplies Furni- Note Account K. Green of Transactions Bank able Deposit on Hand Computer ture Payable Payable Capital 2. Openinginvestment +40 = +404. Rental deposit – 1 +1 =5. Computer – 2 +4 = +26. Purchased supplies +1 = +17. Purchasedfurniture – 4 +4 =9. Note receivablefrom G. Kulp – 2 +2 =Balance, December31, 20X1 +31 +2 +1 +1 +4 +4 = +2 +1 +40General Comments:•Transactions 1 and 3 are personal rather than business transactions.•In transaction 4, no obligation (liability) is set up for the rent because it is not payable until January 2 and no rental services will occur until January.•Transaction 8 requires no entry because no services have been performed during December.Chapter 1 Accounting: The Language of Business 211-35 (10 min.) Amounts are in millions.1. a. Cash = Total assets - Noncash assets= $10,549 - $9,046= $1,503b. Stockholders’ equity = Total assets - Total liabilities= $10,549 - $8,105= $2,4442. Total liabilities and stoc kholders’ equity = total assets =$10,549.1-36 (10 min.)1. The par value line would increase by 1,000,000,000 x$.01 = $10,000,000 and the number of shares outstanding would increase by 1 billion. Additional paid-in capital would increase by 1,000,000,000 x ($70.00 –$.01) = $69,990,000,000.2. IBM shows all of its paid-in capital as a one-line item.Therefore, its common stock line would increase by $100,000,000 and the number of outstanding shares would increase by 1 million.221-37 (5-10 min.)The common stock line should show 957,599,006 x $1.00 = $957,599,006. The average price per share paid by the original investors for the Honeywell common stock was $957,599,006 + $2,318,000,000 = $3,275,599,006 ÷ 957,599,006 = $3.42. Note that the par value is small, $1.00 as compared to $3.42. (Avoid introducing any complications such as the effects of common-on-common stock dividends.)The relatively large difference between the original issuance price ($3.42) and the current market price ($50) is quite typical of many large successful companies. This is usually caused by increased investment attractiveness based on a record of profitable operations over many years.1-38 (5-10 min.)1. The common stock line should show 974 x ¥50 = ¥48,700 million.2. The average price per share paid by the original investors was¥226.5: ¥48,700 + ¥171,910 = ¥220,610 million; ¥220,610 ÷ 974 = ¥226.5. Note that the ¥226.5 easily exceeds the par value of ¥50.(Avoid introducing any complications such as the effects of common-on-common stock dividends.)3. The large difference between the original issuance price of¥226.5 and the current market price of ¥580 is typical for many successful companies. This phenomenon is usually caused by increased investment attractiveness based on a record of profitable operations over many years.Chapter 1 Accounting: The Language of Business 231-39 (20-30 min.)AMAZONBalance SheetDecember 31, 1999(In Millions of Dollars)Liabilities andAssets Stockholders' EquityCash $ 590 (1)Accounts payable $ 463 Property, plant and Other liabilities 276` equipment 317 Long term debt 1,466 Other assets 1,564 Total liabilities 2,205 (3)Capital stock $ 3Additional stockequity 263 (2b)Total stockholders'equity 266 (2a)Total liabilities andTotal assets $2,471 stockholders' equity $2,471 Notations (1), (2), and (3) designate the answers to the requirements. (1) The $590 cash was computed by taking total assets minus all assets except cash. To calculate (2) and (3) note that total assets must equal total liabilities plus stockholders' equity, $2,471 million. Furthermore, (3), total liabilities, is $463 + $276 + $1,466 = $2,205. Therefore, total stockholders' equity is $2,471 – $2,205 = $266, denoted by (2a) above. Additional stockholders' equity is $266 –$3 = $263, denoted by (2b) above.This condensed balance sheet simplifies an important issue. Amazon has an accumulated deficit of $882 million as of the 1999 Balance Sheet date. You may want to introduce this fact into the discussion.241-40 (20 min.)MAY DEPARTMENT STORESBalance SheetJanuary 29, 2000(In Millions of Dollars)Liabilities andAssets Stockholders' EquityCash $ 16*(1)Accounts payable $ 1,030 Accounts receivable 2,173 Long-term debt payable 3,560 Inventories 2,817 Other liabilities 2,268 Property, plant, Total liabilities $ 6,858 (3) and equipment 4,769 Common stock $ 163Other assets 1,160 Additional stock-holders' equity 3,914Total stockholders'equity 4,077 (2)Total liabilities andTotal assets $10,935 stockholders’ equity$10,935*Amount computed by taking total assets minus all assets except cash.Notations (1), (2), and (3) designate the answers to the requirements. Cash is calculated by subtracting the values given for the other assets from total assets: $10,935 - $2,173 -$2,817 -$4,769 -$1,160 = $16. Cash is the smallest individual asset. Companies try to keep cash balances small because they do not earn large returns on cash accounts. To calculate (2) simply add the components $163 + $3,914; similarly for (3), $1,030 + $3,560 + $2,268.Chapter 1 Accounting: The Language of Business 251-41 (10 min)Credibility of accounting reports is essential. Decision makers both within and outside of an organization rely on accounting reports for important decisions. For accounting reports to have credibility, users must have confidence in both the preparers and the auditors of those reports.Internal accountants have access to much sensitive data, and they have access to information across an entire organization. They need to be trusted to keep certain types of information confidential as well as to report fully and accurately to managers who need information for their decisions. Because of their access to so much information, accountants also often act as the conscience of an organization, identifying areas where managers may intentionally or unintentionally be misusing organizational resources. This is a large responsibility, and it requires the trust of managers throughout the organization.External audits have value because they add credibility to the financial statements. Management prepares the financial statements and may be prone to overstate operating results either because of natural optimism or because their reputation or compensation is linked to operating performance. If investors and other users of financial statement do not have faith in the competence, fairness, and objectivity of the auditors, audits will have little value. Therefore, developing and maintaining high ethical standards is a hallmark of the auditing profession.261-41 (continued)Not only are individual accountants cognizant of the need to develop and maintain a reputation for ethical behavior, but they recognize the need to be collectively regarded as highly ethical. Any breach of ethical conduct by one accountant has spillover effects on others. It is important to all accountants that the profession of accounting be regarded as highly ethical. Therefore, professional accounting organizations have developed standards of ethical conduct. Certification examinations, such as the Certified Public Accountant (CPA) and Certified Management Accountant (CMA) exams, test applicants’ knowledge of ethical standards, and the associations enforce compliance to ethical standards by penalizing those who violate the standards. In this way the public can be reasonably assured that when they deal with a certified accountant he or she will be familiar with ethical standards and will have been in compliance with them.1-42 (10-15 min.) ($ in millions)1. Cash = $4,2342. Total assets = $32,870 on July 29, 200014,893 on July 31, 19993. Assets = Liabilities + Stockholders' Equity$32,870 = $6,373 + $26,497NOTE: The statement does not give a subtotal for liabilities.It must be backed out. Some analysts treat minorityinterests or deferred taxes as if they were notliabilities.Chapter 1 Accounting: The Language of Business 271-43 (15-30 min.)Each solution is unique and will change each year. The purpose of this problem is for students to recognize the format of a balance sheet and to see how it relates to the balance sheet equation.1-44 (60 or more min.)The purpose of this exercise is to learn how to find a company’s balance sheet, to pick out significant items on it, and to understand how basic transactions affect the balance sheet. Each student will become an “expert” on one or two types of transactions and will be required to explain the accounting for that transaction to the rest of the group. Requirement 2 is a test of how well the “experts” explained the effects of their transactions1-45 (30-60 min.)A solution to this Internet case is located on Prentice Hall's PHLIP web site (/phlip). Because companies' web sites change often, the student web site contains an up-to-date URL for accessing the information and any changes in the case requirement necessitated by changes in the information available. We encourage you to visit the PHLIP web site before assigning this problem.28。

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36.If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted, the assets at the end of the period will be understated.
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13.An adjusting entry would adjust an expense account so the expense is reported when incurred.
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14.An adjusting entry to accrue an incurred expense will affect total liabilities.
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15.The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.
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34.The balance in the prepaid insurance account before adjustment at the end of the year is $4,000. The amount of the journal entry required to record insurance expense will be $2,500 if the amount of unexpired insurance applicable to future periods is $1,500.
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26.A contra asset account for Land will normally appear in the balance sheet.
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27.Depreciation Expense is reported on the balance sheet as an addition to the related asset.
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24.Accumulated Depreciation is reported on the income sheet.
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25.A building was purchased for $75,000. Assuming annual depreciation of $2,500, the book value of the building one year later is $77,500.
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4.The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.
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5.The matching concept requires expenses be recorded in the same period that the related revenue is recorded.
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29.A company pays $240 for a yearly trade magazine on August 1. The adjusting entry on December 31 is debit Unearned Subscription Revenue, $100 and credit Subscription Revenue, $100.
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2.The accrual basis of accounting requires revenue be recorded when cash is received from customers.
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3.Generally accepted accounting principles require accrual-basis accounting.
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16.Deferrals are recorded transactions that delay the recognition of an expense or revenue.
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17.Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.
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32.A company pays $5,600 for two season tickets on September 1. If $1,400 is earned by December 31, the adjusting entry made at that time is debit Cash, $1,400 and credit Ticket Revenue, $1,400.
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31.A company payfive day work week, Monday - Friday. The adjusting entry on December 31, which is a Wednesday, is debit Wages Expense, $200 and credit Wages Payable, $200.
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28.A company pays $12,000 for twelve month's rent on October 1. The adjusting entry on December 31 is debit Rent Expense, $4,000 and credit Prepaid Rent, $4,000.
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11.Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.
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12.An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.
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6.The financial statements measure precisely the financial condition and results of operations of a business.
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7.Adjusting entries are made at the end of an accounting period to adjust accounts onthe balancesheet.
CHAPTER 3
THE MATCHING CONCEPT AND THE ADJUSTING PROCESS
Chapter 3—The Matching Concept and the Adjusting Process
TRUE/FALSE
1.The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.
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37.If the adjustment of the unearned rent account at the end of the period to recognize the amount of rent earned is inadvertently omitted, the net income for the period will be overstated.
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30.A company depreciates its equipment $350 a year. The adjusting entry for December 31 is debit Depreciation Expense, $350 and credit Equipment, $350.
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22.The Accumulated Depreciation's account balance is the sum of depreciation expense recorded in past periods.
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23.Accumulated Depreciation accounts are liability accounts.
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