财务英语 第二次作业(含答案)

1.True or false statements

(1) Increasing assets is the impact of credit entries.

(2) Salaries, telephone, and rent are asset accounts.

(3) The accounting equation is liabilities= assets + equity.

(4) Items owned by a business that has money value are known as assets.

(5) To purchase “on account” is to create a liability.

(6) A withdrawal of cash reduces cash and capital.

(7) When all the transactions have been posted and footed, the debits should equal the credits. The test to see if this is so is called a trial balance.

(8) The twofold effect of every entry is recorded in double-entry system.

(9) Increases in all asset accounts are credited.

(10) Increases in all liability accounts are debited.

2.Multiple choice

(1)Which statement best describes prepaid expense(预付费用)?

A.Amounts due to the entity from others.

B.Amounts received by the entity for services yet to be performed.

C.Amounts paid in advance for services the entity will receive in the future

D.Outflows of assets from providing products or services to customers.

(2)Peter Ali received $5,000 for some excavation work to be done when the weather permits. Peter thinks it will be at least three weeks before he can start the job. Which statement best describes how the transaction is recorded?

A.An asset is debited, and a liability is credited.

B.A liability is debited, and an asset if credited.

C.A withdrawal is debited, and an asset is credited.

D.An asset is debited, and a revenue is credited.

(3)During the month of November, Western Company had cash receipts of $15,000 and cash disbursements of $17,250. The November 30 cash balance was $9,500. What was the beginning (November 1) cash balance?

A.$(7,250)

B.$2,250

C.$7,250

D.$11,750

(4)Which of the following statements about normal account balance is false?

A.The normal account balance for a revenue account is a debit balance.

B.The normal account balance for a liability is a credit balance.

C.The normal account balance for an asset account is a debit balance.

D.The normal account balance for an expense account is a debit balance.

(5)On October 31, accounts receivable had a normal balance of $3,200. During October, the account was credited for a total of $9,300 and debited for a total of $4,500. What was the balance in the accounts receivable account at the beginning of October?

A.A $1,600 credit balance.

B.A $1,600 debit balance.

C.An $8,000 credit balance.

D.An $8,000 debit balance.

(6)Which of the following statement is true?

A.A journal entry may have one account debited and two accounts credited.

B.Prepaid expense is an asset account that has a credit balance.