会计英语练习题
会计英语复习题
一:Choose the best answer for each statement below（ A ）1. Postings from the purchases journal to the subsidiary ledger are generally made:A. Daily.B. Weekly.C. Monthly.D. Yearly.（ D ）2 If beginning inventory is $50,000, cost of goods purchased is $260,000, and ending inventory is $40,000, cost of goods sold is:A.$300.000.B. $280,000.C. $210,000.D. $270,000.（ B ）3. ABC Company sells merchandise on Feb15 on account to XYZ Co. for $11,000, terms 2/10, n/30. On Feb24, payment is received from XYZ Co. What is the amount of cash received?A. $11,000B. $10,780C. $11,220D. $220( C ) 4. Please select which components should less from the value of plant assets.A. Merchandise inventoryB. Income tax payableC. Accumulated depreciationD.Retained earnings( D )5．Which of the following is not a characteristic of plant assets?A. TangibleB. Long-livedC. Unchanged outlookD. For resale（ C ）6。
会计英语练习题
会计英语练习题会计英语练习题在全球化的今天，学习外语已经成为了必不可少的技能。
对于会计专业的学生来说，掌握会计英语更是至关重要。
会计英语是会计学中的一门专业英语，它涵盖了会计的各个方面，包括财务报表、成本管理、税务等。
为了帮助大家更好地掌握会计英语，下面将提供一些练习题，希望能对大家的学习有所帮助。
1. What is the English term for "资产负债表"?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Statement of Retained Earnings2. Which of the following is not an expense?A. RentB. SalaryC. Accounts ReceivableD. Utilities3. What is the English term for "总账"?A. General LedgerB. Trial BalanceC. Income StatementD. Cash Flow Statement4. What is the English term for "应收账款"?A. Accounts PayableB. Accounts ReceivableC. InventoryD. Prepaid Expenses5. What is the English term for "固定资产"?A. Current AssetsB. Fixed AssetsC. Intangible AssetsD. Accounts Payable6. What is the English term for "净利润"?A. Gross ProfitB. Operating IncomeC. Net IncomeD. Retained Earnings7. What is the English term for "应付账款"?A. Accounts PayableB. Accounts ReceivableC. Accrued ExpensesD. Prepaid Expenses8. What is the English term for "现金流量表"?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Statement of Retained Earnings9. What is the English term for "财务报表分析"?A. Financial Statement AnalysisB. Cost AccountingC. TaxationD. Budgeting10. What is the English term for "税务"?A. Financial Statement AnalysisB. Cost AccountingC. TaxationD. Budgeting以上是一些关于会计英语的练习题，希望大家能够认真思考并给出正确答案。
会计英语练习题分录编写
会计英语练习题分录编写### 会计英语练习题：分录编写#### 练习一：销售交易背景信息：XYZ公司在2023年4月1日销售了一批商品，销售价格为$10,000，增值税率为15%，商品成本为$6,000。
要求：编写相关的会计分录。
答案：1. 销售收入确认：- 借：应收账款 $11,500- 贷：主营业务收入 $10,000- 贷：应交税费—应交增值税（销项税额） $1,5002. 成本结转：- 借：主营业务成本 $6,000- 贷：库存商品 $6,000#### 练习二：固定资产购置背景信息：ABC公司在2023年5月10日购买了一台新的机器设备，购买价格为$50,000，预计使用年限为10年，采用直线法折旧。
要求：编写购置固定资产的会计分录和第一个月的折旧分录。
答案：1. 购置固定资产：- 借：固定资产 $50,000- 贷：银行存款 $50,0002. 第一个月折旧：- 借：累计折旧 $416.67（$50,000 / 10年 / 12个月）- 贷：折旧费用 $416.67#### 练习三：预收账款背景信息：2023年6月15日，DEF公司收到了客户预付的款项$20,000，用于未来三个月的服务。
要求：编写收到预付款项的会计分录。
答案：- 借：银行存款 $20,000- 贷：预收账款 $20,000#### 练习四：借款与利息背景信息：GHI公司在2023年7月1日向银行借款$100,000，年利率为5%，按季度支付利息。
要求：编写借款和第一个季度末支付利息的会计分录。
答案：1. 借款：- 借：银行存款 $100,000- 贷：短期借款 $100,0002. 第一季度利息支付：- 借：财务费用—利息支出 $1,250（$100,000 * 5% / 4）- 贷：银行存款 $1,250#### 练习五：现金折扣背景信息：JKL公司在2023年8月5日销售商品，发票金额为$5,000，提供2/10, n/30的现金折扣条件。
会计英语练习题与答案
Effects of Business Transactions on the Accounting Equation
• Assets = Liabilities + Owner’s Equity • 1、Jan.20，Michael McBryan started the business 、 ， by depositing $80,000 received from the sale of capital stock in a company bank account. • 2、Jan.21，Purchased land for $52,000，paying 、 ， ， cash. • 3、Jan.22，Purchased a building for $36,000， 、 ， ， paying $6,000 in cash and issuing a note payable for the remaining $30,000. • 4、Jan.23，Purchased tools and equipment on 、 ， account，$13,800. ，
• • • • •ction Assets = Liabilities + Owner’s Equity 1、Jan.20 $80,000 $80,000 、 2、Jan.21 、 $52,000 $(52,000) 3、Jan.22 $36,000 $30,000 、 $(6,000) 4、Jan.23 $13,800 $13,800 、 5、Jan.24 $1,800 $1,800 、 6、Jan.26 $6,00 、 $(600) 7、Jan.27 $6,800 $6,800 、 8、Jan.31 $2,200 $2,200 、 9、Jan.31 $1,400 $1,400 、
会计英语考试试题及答案
会计英语考试试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a financial statement?A. Balance SheetB. Income StatementB. Cash Flow StatementD. Payroll Report2. What is the term for the process of recording transactions in the accounting records?A. JournalizingB. PostingC. ClosingD. Adjusting3. The matching principle is a fundamental concept in accounting that requires:A. Revenues to be recognized when earnedB. Expenses to be recognized when paidC. Expenses to be recognized in the same period as the revenues they generateD. Both A and B4. What is the formula for calculating the return on investment (ROI)?A. ROI = (Net Income / Total Assets) x 100B. ROI = (Net Income / Total Liabilities) x 100C. ROI = (Net Income / Investment) x 100D. ROI = (Total Assets / Net Income) x 1005. Which of the following is not a type of depreciation method?A. Straight-lineB. Declining balanceC. Units of productionD. FIFO (First-In, First-Out)6. What is the purpose of an audit?A. To ensure that financial statements are accurate and completeB. To provide tax adviceC. To prepare financial statementsD. To manage a company's finances7. The term "double-entry bookkeeping" refers to the practice of:A. Recording transactions twiceB. Recording transactions in two different accountsC. Recording transactions in two different waysD. Recording transactions in two different books8. What is the accounting equation?A. Assets = Liabilities + EquityB. Revenue - Expenses = Net IncomeC. Assets - Liabilities = Net IncomeD. Assets + Liabilities = Equity9. Which of the following is not a component of the statement of cash flows?A. Operating activitiesB. Investing activitiesC. Financing activitiesD. Non-operating activities10. What is the purpose of adjusting entries?A. To correct errors in the accounting recordsB. To update the financial statementsC. To ensure that the accounting equation is balancedD. To allocate expenses and revenues to the correct accounting periods答案：1. D2. A3. C4. C5. D6. A7. B8. A9. D10. D二、简答题（每题5分，共30分）1. 简述会计的四大基本原则。
会计英语练习题
会计英语练习题一、词汇练习1. 请将下列会计术语的英文翻译成中文：- Assets:- Liabilities:- Equity:- Revenue:- Expense:- Depreciation:2. 请将下列中文会计术语翻译成英文：- 资产负债表:- 利润表:- 现金流量表:- 折旧:- 应收账款:- 存货:二、填空题1. The balance sheet is a statement of a company's financial position at a particular point in time, showing all the company's assets, liabilities, and __________.2. The income statement, also known as the profit and loss statement, is used to calculate the __________ of a business over a certain period of time.3. When a company purchases a new piece of equipment, it will record this as an __________ on the balance sheet.4. The __________ method of accounting records transactions when the cash is actually received or paid.5. If a company has a net loss, it will decrease the__________ on the balance sheet.三、简答题1. 请简述会计的四大基本假设。
2. 什么是会计准则？请举例说明。
(财务会计)会计英语练习题
Chapter11. The Mill Run Golf & Country Club details the following accounts in its financial statements.(a) (b)Accounts payable and accrued liabilities ____ ____Accounts receivable ____ ____Property, plant, and equipment ____ ____Food and beverage operations revenue ____ ____Golf course operations revenue ____ ____Inventory ____ ____Long-term debt ____ ____Office and general expense ____ ____Professional fees expense ____ ____Wages and benefits expense ____ ____Instructions.(a)Classify each of the above accounts as an asset (A) , liability(L), stockholders’ equity (SE), revenue(R), or expense (E) item.(b)Classify each of the above accounts as a financing activity (F), investing activity (I), or operatingactivity (O). If you believe a particular account doesn’t fit in any of these activities, explain why.2.The following information was taken from the 2004 financial statements of pharmaceutical giantMerck and Co. All dollar amounts are in millions.Retained earnings, January 1, 2004 $34,142.0Materials and production expense 4,959.8Marketing and administrative expense 7,346.3Dividends 3,329.1Sales revenue 22,938.6Research and development expense 4,010.2Tax expense 2.161.1Other revenue 1,352.2Instructions.(a)After analyzing the data, prepare an income statement and a retained earnings statement for the yearending December 31,2004.(b)Suppose that Merck decided to reduce its research and development expense by 50%. What would bethe short-term implications? What would be the long-term implications? How do you think the stock market would react?3.Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer ofgrain-based convenience foods such as frozen waffles and cereal bars. The following items were taken from its 2004 income statement and balance sheet. All dollars are in millions._____Retained earnings $2,701.3 _____ Long-term debt $3,892.6 _____Cost of goods sold 5,298.7 _____ Inventories 681.0 _____Selling and administrative expense 2,634.1 _____ Net sales 9,613.9 _____Cash 417.4 _____ Accounts payable 767.2 _____Notes payable 709.7 _____Common stock 103.8 _____Interest expense 308.6 _____ Income tax expense 475.3_____ Other expense 6.6Instructions.Perform each of the following.(a)In each case identify whether the item is an asset (A), liability (L), stockholders’ equity (SE),revenue (R), or expense (E).(b)Prepare an income statement for Kellogg Company for the year ended December 31, 2004.4.The following items were taken from the balance sheet of Nike, Inc.(1)Cash $828.0 (7) Inventories $1,633.6(2)Accounts receivable 2,120.2 (8) Income taxes payable 118.2(3)Common stock 890.6 (9) Property, plant, and equipment 1,586.9(4)Notes payable 146.0 (10)Retained earnings 3,891.1(5)Other assets 1,722.9 (11)Accounts payable 763.8(6)Other liabilities 2,081.9Instructions.Perform each of the following.(a)Classify each of these items as an asset, liability, or stockholders’ equity. (All dollars are inmillions.)(b)Determine Nike’s accounting equation by calculating the value of total assets, total liabilities,and total stockholders’ equity.(c)To what extent dose Nike rely on debt versus equity financing?Chapter 2.1．These items are taken from the financial statements of Donovan Co. at December 31.2007Building $105,800Accounts receivable 12,600Prepaid insurance 4,680Cash 16,840Equipment 82,400Land 61,200Insurance expense 780Depreciation expense 5,300Common stock 62,000Retained earnings (January 1, 2007) 40,000Accumulated depreciation-building 45,600Accounts payable 9,500Mortgage payable 93,600Accumulated depreciation-equipment 18,720Interest payable 3,600Bowling revenues 19,180Instructions.Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in 2008.2. The following items were taken from the 2004 financial statements of Texas Instruments, Inc.(All dollars are in millions.)Long-term debt $ 368 Cash $ 2,668 Common stock 2,488 Accumulated depreciation 5,655 Prepaid expense 326 Accounts payable 1,444 Property, plant, and equipment 9,573 Other noncurrent assets 1,927Other current assets 554 Other noncurrent liabilities 943Other current liabilities 470 Retained earnings 10,575Long-term investments 264 Accounts receivable 1,696Short-term investments 3,690 Inventories 1,256Loans payable in 2005 11Instructions.Prepare a classified balance sheet in good form as of December 31, 2004.3. These financial statement items are for Snyder Corporation at year-end, July 31, 2007.Salaries payable $ 2,080Salaries expense 51,700Utilities expense 22,600Equipment 18,500Accounts payable 4,100Commission revenue 61,100Rent revenue 8,500Long-term note payable 1,800Common stock 16,000Cash 24,200Accounts receivable 9,780Accumulated depreciation 6,000Dividends 4,000Retained earnings (beginning of the year) 35,200Instructions.(a)Prepare an income statement and a retained earnings statement for the year. Snyder Corporation didnot issue any new stock during the year.(b)Prepare a classified balance sheet at July 31.(c)Compute the current ratio and debt to total assets ratio.(d)Suppose that you are the president of Allied Equipment. Your sales manager has approached you witha proposal to sell $20,000 of equipment to Snyder. He would like to provide a loan to Snyder in theform of a 10%, 5-year note payable. Evaluate how this loan would change Snyder’s current ratio and debt to total assets ratio, and discuss whether you would make the sale.4. The chief financial officer (CFO) of SuperClean Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 007, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows.SUPERCLEAN CORP.Balance SheetDecember 30, 2007Current assets Current liabilitiesCash $30,000 Accounts payable $25,000Accounts receivable 20,000 Salaries payable 15,000 $40,000 Prepaid insurance 10,000 $60,000 Long-term liabilitiesNotes payable 80,000Total liabilities 120,000 Property, plant, and equipment (net) 200,000 Stockholders’ equityTotal assets $260,000 Common stock 100,000Retained earnings 40,000 140,000Total liabilities and stockholders equity$260,000Instructions.(a)Calculate the current ratio and working capital based on the preliminary balance sheet.(b)Based on the results in (a), the CFO requested that $25,000 of cash be used to pay off the balance ofthe accounts payable account on December 31, 2007. Calculate the new current ratio and working capital after the company takes these actions.(c)Discuss the pros and cons of the current ratio and working capital as measures of liquidity.(d)Was it unethical for the CFO to take these steps?5. The following data were taken from the 2004 and 2003 financial statements of American Eagle Outfitters. (All dollars are in thousands.)20042003 Current assets $525,623 $427,878Total assets 865,071 741,339Current liabilities 189,035 141,586Total liabilities 221,401 163,857Total stockholders’ equity 643,670 577,482Cash provided by operating activities 189,469 104,548Capital expenditures 64,173 61,407Dividends paid -0- -0-Instructions.Perform each of the following.(a)Calculate the debt to total assets ratio for each year.(b)Calculate the free cash flow for each year.(c)Discuss American Eagle’s solvency in 2004 versus 2003.(d)Discuss American Eagle’s ability to finance its investment activities with cash provided by operatingactivities, and how any deficiency would be met.Chapter 3.1．During 2007, its first year of operations as a delivery service, Cheng Corp. entered into the following transactions.(1)Issued shares of common stock to investors in exchange for $110,000 in cash.(2)Borrowed $45,000 by issuing bonds.(3)Purchased delivery trucks for $60,000 cash.(4)Received $16,000 from customers for services provided.(5)Purchased supplies for $4,200 on account.(6)Paid rent of $5,600.(7)Performed services on account for $8,000.(8)Paid salaries of $28,000.(9)Paid a dividend of $11,000 to shareholders.InstructionsUsing the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the right-hand margin.Assets = Liabilities + Stockholders’EquityCash+Accounts+Supplies+Property,Plant, =Accounts +Bonds + Common + Retained Receivable and Equipment Payable Payable Stock Earningsmonth of business, are as follows.(1)Issued stock to investors for $12,000 in cash.(2)Purchased used car for $8,000 cash for use in business.(3)Purchased supplies on account for $300.(4)Billed customers $2,600 for services performed.(5)Paid $200 cash for advertising start of the business.(6)Received $1,100 cash from customers billed in transaction(4).(7)Paid creditor $300 cash on account.(8)Paid dividends of $400 cash to stockholders.Instructions(a)For each transaction indicate (a) the basic type of account debited and credited (asset,liability, stockholders’ equity); (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); (c) whether the specific account is increased or decreased; and (d) the normal balance of the specific account. Use the following format, in which transaction 1 is given as an example.Account Debited Account Credited(a) (b) (c) (d) (a) (b) (c) (d)Trans- Basic Specific Normal Basic Specific Normalaction Type Account Effect Balance Type Account Effect Balance1 Asset Cash Increase Debit Stock- Common Increase Creditholders’stockequity(b)Journalize the transaction. Do not provide explanations.3.This information relates to Matthews Real Estate Agency Corporation.Oct. (1) Stockholders invested $25,000 in exchange for common stock of the corporation.(2)Hires an administrative assistant at an annual salary of $42,000.(3)Buys office furniture for $3,600, on assount.(6)Sells a house and lot for M.E. Mills; commissions due from Mills, $10,800 (notpaid by Mills at this time).(10) Receives cash of $140 as commission for acting as rental agent renting anapartment.(27) Pays $700 on account for the office furniture purchased on October 3.(30) Pays the administrative assistant $3,500 in salary for October.InstructionsPrepare the debit-credit analysis for each transaction as illustrated on pages 119-124.4.Transaction data for Matthews Real Estate Agency are presented in 3 .Journalize the transaction. Do not provide explanations.5.Selected transactions for P.F. Quick Corporation during its first month in business arepresented below.Sept. (1) Issued common stock in exchange for $15,000 cash received from investors.(5) Purchased equipment for $12,000, paying $2,000 in cash and the balance on account.(25) Paid $5,000 cash on balance owed for equipment.(30) Paid $500 cash dividend.P.F. Quick’s chart of accounts shows: Cash, Equipment, Accounts Payable, Common Stock, and Dividends.Instructions(a)Prepare a tabular analysis of the September transaction. The column headings should be:Cash + Equipment = Accounts Payable + Stockholders’ Equity. For transactions affecting stockholders’ equity, provide explanations in the right margin, as shown on page107.(b)Journalize the transaction. Do not provide explanations.(c)Post the transactions to T accounts.Chapter 41．The following independent situations require professional judgement for determining when to recognize revenue from the transaction.(a)Southwest Airlines sells you an advance-purchase airline ticket in September foryour flight home at Christmas.(b)Ultimate Electronics sell you a home theatre on a “no monkey down, no interest, andno payments for one year” promotional deal.(c)The Toronto Blue Jays sells season tickets online to games in the Skydome. Fans canpurchase the tickets at any time, although the season doesn’t officially begin until April. The major league baseball season runs from April through October.(d)In August, you order a sweater from Sears using its online catalog. The sweaterarrives in September in full in November.(e)In August, you order a sweater from Sears using its online catalog. The sweaterarrives in September, and you charge it to your Sears credit card. You receive and pay the Sears bill in October.InstructionIdentify when revenue should be recognized in each of the above situations.2.Your examination of the records of a company that follows the cash basis ofaccounting tells you that the company’s reported cash basis earnings in 2007 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.2007 2006 Accounts receivable $3,400 $2,300Unpaid wages owed 1,500 2,400Other unpaid amounts 1,400 1,600 InstructionDetermine the company’s net earning on an accrual basis for 2007. Show all your calculations in an orderly fashion.3.In its first year of operations Bere Company earned $28,000 in service revenue,$6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers.The company incurred operating expenses of $14,500. Of these expenses $13,000 were paid in cash; $1,500 was still owed on account at year-end. In addition, Bere prepaid $3,600 for insurance coverage that would not be used until the second year of operations.Instructions(a)Calculate the first year’s net earnings under the cash basis of accounting, and calculatethe first year’s net earning under the accrual basis of accounting.(b)Which basis of accounting (cash or accrual) provides more useful information fordecision makers?4．The Radical Edge, a ski tuning and repair shop, opened in November 2006. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2007.Cash Receipts Cash PaymentsIssue of common shares $20,000Payment for repair equipment $9,200 Rent payments 1,225 Newspaper advertising payment 375 Utility bills payments 970 Part-time helper’s wages payments 2,600 Income tax payment 10,000 Cash receipts from ski and snowboardrepair services 32,150Subtotals 52,150 24,370 Cash balance 27,780 Totals $52,150 $52,150 You learn that repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $175 per month on a one-year lease. The lease contract requires payment of the first and last month s’ rent in advance, which was done. The part-timer helper is owed $220 at April 30, 2007, for unpaid wages. At April 30, 2007, customers owe The Radical Edge $650 for services they have received but have not yet paid for.Instructions(b)Prepare the April 30, 2007, classified balance sheet.5. MaxPlay, a maker of electronic games for kids, has just completed its first year of operations. The company’s sales growth was explosive. To encourage large national stores to carry its products MaxPlay offered 180-day financing-meaning its largest customers do not pay for nearly 6 months. Because MaxPlay is a new company, its components suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year MaxPlay owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year.Instructions(a)Explain how cash and accrual accounting would differ for each of the events listed aboveand describe the proper accrual accounting.(b)Assume that at the end of the year MaxPlay reported a favorable net income, yet thecompany’s management is concerned because the company is very short of cash. Explain how MaxPlay could have positive net income and yet run out of cash.6.The ledger of Reliable Rental Agency on March 31 of the current year includes theseselected accounts before adjusting entries have been prepared.Debits Credits Prepaid Insurance $3,600Supplies 3,000Equipment 25,000Accumulated Depreciation-Equipment $8,400Notes Payable 20,000Unearned Rent Revenue 10,200Rent Revenue 60,000Interest Expense 0Wage Expense 14,000An analysis of the accounts shows the following.(1)The equipment depreciates $250 per month.(2)Half of the unearned rent revenue was earned during the quarter.(3)Interest of $440 is accrued on the notes payable.(4)Supplies on band total $850.(5)Insurance expires at the rate of $300 per month.InstructionsPrepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and supplied Expense.7.Gene Hoffman, D.D.S., opened an incorporated dental practice on January 1, 2007.During the first month of operations the following transactions occurred:such services was earned but not yet billed to the insurance companies.(2)Utility expenses incurrent but not paid prior to January 31 totaled $520.(3)Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash andsigning a $60,000, 3-year note payable (Interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month.(4)Purchased a 1-year malpractice insurance policy on January 1 for $18,000.(5)Purchased $1,750 of dental supplies. On January 31 determined that $350 of supplieswere on hand.InstructionsPrepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation-Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.Chapter 5ExercisesE5-1 The following transactions are for Kale Company.1.On December 3 Kale Company sold $480000 of merchandise to Thomson Co., terms1/10,n/30 .The cost of the merchandise sold was 320000.2.On December 8 Thomson Co. was granted an allowance of $28000 for merchandisepurchased on December 3.3.on December 13 Kale company received the balance due from Thomson Co. instructions(a)Prepare the journal entries to record these transactions on the books of Kale Company .Kale uses a perpetual inventory system.(b)Assume that Kale Company received the balance due from Thomson Co. on January 2 ofthe following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.E5-2 Assume that on September 1 office depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September these transactions occurred.Sept.6 purchased calculators from black box co. at a total cost of $620,term n/30.Sept .9 Paid freight of $50 on calculators purchased from Black Box Co.Sept 10 Returned calculators to black box co. for $38 credit because they did not meet specifications .Sept 12 Sold calculators costing $520 for $780to University Book Store, terms n/30.Sept14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered .The calculator cost $28.Sept 20 Sold calculators costing $570 for $900 to Campus Card Shop. InstructionsJournalize the September transactions .E5-3 This information relates to Sherper Co.$220000,terms2/10,n/30.2.On April 6 paid freight costs of $900 on merchandise purchased from Newport.3.On April 7 purchased equipment on account for $26000.4.On April 8 returned some of April 5 merchandise of Newport Company which cost$3600.5.On April 15 paid the amount due to Newport Company in full.Instructions(a) Prepare the journal entries to record the transactions listed above on the books of SherperCo. uses a perpetual inventory system.(b) Assume that Sherper Co. paid the balance due to Newport Company on May 4 instead of April 15.Prepare the journal entry to record this payment.E5-8 In its income statement for the year ended December 31,2007,Knitz Company reported the following condensed data.Administrative expenses $435000 selling expenses $ 690000Cost of goods sold 987000 Loss on sale of equipment 83500Interest expense 68000 Net sales 2350000Interest revenue 45000Instructions(a)Prepare a multiple-step income statement.(b)Calculate the profit margin ratio and gross profit rate.(c)In 2006 Knitz had a profit margin ratio of 9%. Is the decline in 2007 a cause forconcern?E5-9 In its income statement for the year ended June 30,2004, The Clorox Company report the following condensed data (dollars in millions ).Selling and Research andAdministrative expenses $ 552 development expense $ 84Net sales 4324 Income tax expense 294Interest expense 30 Other income 1Advertising expense 429 Cost of goods sold 2387 Instructions(a)Prepare a multiple step income statement.(b)Calculate the gross profit rate and the profit margin ratio and explain what each means.(c)Assume by marketing department has presented a plan to increase advertising expensesby $300 million . It expects thos plan to result in an increase in both net sales and cost of goods sold of 25%. Redo parts (a) and (b) and discuss whether this plan has merit.(Assume a tax rate of 35%,and round all amounts to whole dollars .)E5-10 The trial balance of Rachel Company at the end of its fisical year , August 31 , 2007, includes these accounts :Merchandise Inventory $19200; Purchases $144000; Sales $190000; Freight-in $8000; Sales Returns and Allowances $3000;Freight-out $1000;and Purchase Returns and Allowances $5000. The ending merchandise inventory is $25000.InstructionsPrepare a cost of goods sold section for the year ending August 31.Chapter 6ExercisesE6-2Dennis Lee ,an auditor with Knapp CPAs, is performing a review of Nathan Company’s inentory account. Nathan did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740000.However, the following information was not considered when determining that amount.1.Included in the company’s count were goods with a cost of $250000 that the company isholding on consignment.The goods belong to Anya Corporation.2.The physical count did not include goods purchased by Nathan with a cost of $40000that were shipped FOB shipping point on December 28 and did not arrive at Nathan’s warehouse until January 33.Included in the inventory account was $17000 of office supplies that were stored in thewarehouse and were to be used by the company’s supervisors and managers during the coming year4.The company received an order on December 29 that was boxed and was sitting on theloading dock awaiting pick-up on Decemeber 31.The shipper picked up the goods on January 1 and deliverde them on January 6.The shipping tems were FOB shipping point.The goods had a selling price of $40000 and a cost of $30000.The goods were not included in the count because they were sitting on the dock.5.On December 29 Nathan shipped goods with a selling price of $80000 and a cost of$60000 to Central Sales Corporation FOB shipping point.The goods arrived on January3.Central Sales had only ordered goods with a selling price of $10000 and a cost of $8000.However, a sales manager at Nathan had authorized the shipment and said that if Central wanted to ship the goods back next week, it could.6.Included in the count was $50000 of goods that were parts for a machine that thecompany on longer made. Given the higi-tech nature of Nathan’s products,it was unlikely that these obsolete parts had any other use .However, management would prefer to keep them on the books at cost, “since that is what we paid for them ,after all.”InstructionsPrepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item.E6-3 Shippers Inc. had the following inventory situations to consider at January 31.its year end.(a)Goods held on consignment for MailBoxes Corp. since December 12.(b)Goods shipped on consignment to Rinehart Holdings Inc. on January 5(c)Goods shipped to a customer, FOB destination ,on January 29 that are still in transit.(d)Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit.(e)Goods purchased FOB destination from a supplier on January 25,that are still in transit.(f)Goods purchased FOB shipping point from a supplier on January 25,that are still intransit.(g)Office supplies on hand at January 31.InstructionsIdentify which of the preceding items should be included in inventory. If the item should not be included in inventory, state where it should be recorded.E6-4Boarders sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below if information relating to Boarders’s purchases of Xpert snowboards during September. During the same month, 118 Xpert snowboards were sold. Boarders uses a periodic inventory system.Instructions(a)Compute the ending inventory at September 30 using the FIFO and LIFO methods.Prove the amount allocated to cost of goods sold under each method.(b)For both FIFO and LIFO ,calculate the sum of ending inventory and cost of goods sold.What do you notice about the answers you found for each method?E6-7 Plato Company reports the following for the month of June.(1)FIFO,(2)LIFO,and (3) average cost.(b)Which costing method gives the highest ending inventory? The highest cost of goodssold ?Why?(c)How do the average-cost values for ending inventory and cost of goods sold relate toending inventory and cost of goods sold for FIFO and LIFO?(d)Explain why the average cost is not $6InstructionsCalculate the inventory turnover ratio,days in inventory,and gross profit rate for PepsiCo.,Inc. for 2002,2003, and 2004. Comment on any trends.E6-9 Cody Camera Shop es the lower of cost or market basis for its inventory. The following data are available at December 31.InstructionsWhat amount should be reported on Cody Camera Shop’s financial statements, assuming the lower of cost or market rule is applied?E6-10Deere&Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. It reportde the following information in its 2004 annual report.Instructions(a)Compute Deere’s inventory turnover ratio and days in inventory for 2004(b)Compute Deere’s current ratio using the 2004 data as presented, and then again afteradjusting for the LIFO reserve(c)Comment on how ignoring the LIFO reserve might affect your evaluation of Deere’sliquidity.chapter 8exercisese-8-3 At the beginning of the current period，Huang Crop. had balances in Accounts Receivable of 200000 and in Allowance for Doubtful Accounts of 9000（credit）. During the period，it had net credit sales of 800000 and collections of 743000. It wrote off as uncollectible accounts receivable of 7000.However，a 4000 account previously written off as uncollectible was recovered before the end before the end of the current period . Uncollectible accounts are estimated to total 25000 at the end of period.Instructions（a）Prepare the entries to record sales and collections during the period.（b）Prepare the entry to record the write-off of uncollectible accounts during the period.（c）Prepare the entries to record the recovery of the uncollectible account during the period.（d）Prepare the entry to record bad debts expense for the period.（e）Determine the ending balances in Accounts Receivable and Allowance for Doubtful accounts. （f）What is the net realizable value of the receivables at the end of period？E8-4 The ledger of Garcia Company at the end of the current year shows Accounts Receivable 96000；Credit Sales 780000 ；and Sales Returns and Allowances 40000.Instructions（a）If Garcia uses the direct write-off method to account for uncollectible accounts ，journalize the adjusting entry at December 31，assuming Garcia determines that Allied’s 900 balance is un collectible.（b）IF Allowance for Doubtful Accounts has a credit balance of $1100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.（c）If Allowance for Doubtful Accounts has a debit balance of 500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.E8-5 Hachey Company has accounts receivable of 95100 at March 31,2007.An analysis of the accounts shows these amounts.Credit terms are 2/10,n/30.At March 31,2007,there is a $2200 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivable basis for estimating uncollectible accounts. The company’s estimates of bad debts as shown on next page.。
会计专业英语期末考试练习卷(new)
1华南农业大学期末考试试卷（B卷）考试类型：（闭卷）考试时间：120分钟学号姓名年级专业一、单选题（请将每小题的答案填在下面的答题栏中，每小题1分，共15分）1. The economic resources of a business are called: BA.Owner’s EquityB.AssetsC.Accounting equationD.Liabilities2.DTK Company has a $3500 accounts rec eivable from GRS Company. On January 20, GRS Company makes a partial payment of $2100 to DTK Company. The journal entry made on Januar y 20 by DTK Company to rec ord this transaction inc ludes: DA. A debit to the c ash rec eivable acc ount of $2100.B. A c redit to the acc ounts rec eivable account of $2100.C. A debit to the c ash account of $1400.D. A debit to the accounts rec eivable acc ount of $1400.3. In general terms, financ ial assets appear in the balanc e sheet at: AA.Fac e value.账面价值B.Current value.现值C.Market value.市场价值D.Estimated future sales value.4. Eac h of the follow ing measures strengthens internal control over c ash receipts exce pt: DA.The use of a vouc her system.B.Preparation of a daily listing of all c hecks rec eived through the mail.C.The deposit of c ash rec eipts intact in the bank on a daily basis.D.The use of c ash registers.5. Whic h of the follow ing items is the greatest in dollar amount? DA.Beginning inventoryB.Cost of goods sold.C.Cost of goods available for saleD.Ending inventory6.Why do companies prefer the LIFO inventory后进先出法method during a period of rising pric es?BA.Higher reported inc omeB.Low er inc ome taxesC.Low er reported inc omeD.Higher ending inventory7. Whic h of the follow ing c harac teristics w ould pre vent an item from being inc luded in thec lassific ation of plant and equipment? DA.IntangibleB.Unlimited lifeC.Be ing sold in its useful lifeD.Not c apable of rendering benefits to the business in the future.8. Whic h account is not a c ontra-asset account? BA.Deprec iation ExpenseB.Accumulated DepletionC.Accumulated Deprec iationD.Allowanc e for Doubtful Acc ounts9.What are the tw o factors that make ownership of an interest in a general partnership particularly risky? AA.Mutual agenc y and unlimited personal liabilityB.Limited life and unlimited personal liability.C.Limited life and mutual agenc y.D.Double taxation and mutual agency10.Whic h of the follow ing types of business owners do not take an ac tive role in the daily management of the business? DA.General partnersB.Limited liability partnersC.Sole proprietors 个体经营者D.Stockholders in a public ly ow ned corporation11. Analysts c an use the footnotes to the financ ial statements to DA.Help their analysis of financ ial statementsB.Help their understanding of financ ial statementsC.Help their chec king of financ ial statements.D.All of the above12. The current liabilit ies are $30 000, the long-term liabilities are $50 000, and the total assets are $240 000. What is the debt ratio? CA. 0.125B. 0.208C. 0.333D. 3.013. The horizontal analysis is used mainly to AA.Analyzing financ ial trendsB.Evaluating financ ial struc tureC.Assessing the pat performanc esD.Measuring the term-paying ability14.Among the follow ing ratios, w hic h is used for long-term solvenc y analysis?长期偿债能力分析AA.Current ratio 流动比率B.Times-interest-earned ratioC.Operating c yc leD.Book value per share15.A profit-making business that is a separate legal entity and in w hic h ownership is divided into shares of stoc k is known as a DA.Sole proprietorship 个体独资公司B.Single proprietorshipC.Partnership 合伙公司D.Corporation 股份有限公司二、名词解释(10分)(1) Journal entry：日记账Journal entry is a logging of transac tions into acc ounting journal items. It can c onsist of several items, eac h of w hic h is either a debit or a credit. The total of the debits must equal the total of the credits or the journal entry is said to be "unbalanc ed". Journal entries c an rec ord unique items or rec urring items such as deprec iation or bond amortization.(2) Going c onc ern：持续经营The company w ill continue to operate in the near future, unless substantia l evidenc e to the c ontrary exists.(3) Matc hing princ iple：一致性原则(4) Working c apital：营运资金(5) Revenue expenditure：收入费用三、会计业务（共35分）1. On Dec ember 1, ME Company borrow ed $250 000 from a bank, and promise to repay that amount plus 12% interest (per year) at the end of 6 months.(1)Prepare the general journal entry to rec ord obtaining the lo an from the bank on Dec ember 1.(2)Prepare the adjusting journal entry to rec ord accrual of the interest payable on the loan onDec ember 31.(3)Prepare the presentation of the liability to the bank on ME’s Dec ember balanc e sheet.Answer:(1)Debit: c ash $250000Credit: c urrent liabilities $250000(2)Debit: Acc rual Expense $5000 不确定Credit: Interest Payable $5000(3) P392.The follow ing information relating to the bank chec king account is available for Music Ha ll at July 31:Ba lanc e per bank statement at July 31$20 0000Ba lanc e per depositor’s rec ords18 860 Outstanding c hecks 2 000Deposits in transit 800Servic e c harge by bank 60Prepare a bank rec onc iliat ion银行对账工作fro Music Ha ll at July 31.Answer:P423. Please prepare the related entries according to the follow ing acc ounting events.1) Assume the Healy Furniture has credit sale of $1,200,000 in 2002. Of this amount, $200,000 remains uncollec ted at December 31. The c redit manager estimates that $12,000 of these sales w ill be unc ollectible. Please prepare the adjusting entry to rec ord the estimated unc ollectible.2) On Marc h 1, 2003 the manager of financ e of Hea ly Furniture authorizes a write-off of the $500 balanc e owed by Nic k Company. Please make the entry to rec ord the write-off.3) On July 1, Nic k Company paid the $500 amount that had been written off on March 1. Answer:(1)Debit: Unc ollectible Acc ounts Expense坏账损失$12000Credit: Allow anc e for Doubtful Acc ounts坏账准备$12000(2)Debit: Allow anc e for Doubtful Accounts $500Credit: Acc ounts Rec eivable $500(3)Debit: Acc ounts Rec eivable $500Credit: Allow anc e for Doubtful Acc ounts $500Debit: Cash $500Credit: Acc ounts Rec eivable $500四、英译汉（40分）(1) Accounting princ iples are not like physic al laws; they do not exist in nature, aw aiting disc overy man. Rather, they are developed by man, in light of w hat we consider to be the most imp ortant objectives of financ ial reporting. In many w ays generally accepted accounting princ iples are similar to the rules established for an organized sport suc h as football or basketball.会计准则不像自然法则那样天生就存在等待人类去探索。
会计英语练习题
会计英语练习题在会计领域中，掌握好英语是非常重要的。
会计英语不仅可以帮助我们与国际行业保持联系，还能提高我们在职场中的竞争力。
下面是一些会计英语练习题，帮助你巩固相关的专业知识。
第一部分：词汇选择题1. The balance sheet provides a snapshot of a company's _____ position at a specific point in time.A. financialB. physicalC. managerialD. operational2. The process of recording, summarizing, and reporting financial transactions of a business is known as _____.A. auditingB. budgetingC. bookkeepingD. forecasting3. An asset acquired for use over a long period of time, such as land or buildings, is called a _____.A. liabilityB. revenueC. expenseD. fixed asset4. The amount of money a business has left after deducting its expenses from its revenue is called _____.A. profitB. lossC. turnoverD. equity5. The process of examining a company's financial records to ensure their accuracy and compliance with laws and regulations is called _____.A. taxationB. auditingC. financingD. investing第二部分：填空题6. The _____ department is responsible for preparing financial statements and analyzing financial data.7. The primary objective of the income statement is to measure a company's _____ performance over a period of time.8. The _____ method of inventory valuation assumes that the cost of goods sold is based on the cost of the most recent purchases.9. The _____ ratio measures a company's ability to meet its short-term financial obligations.10. The _____ principle requires that expenses be recognized in the same accounting period as the revenue they help generate.第三部分：阅读理解题请阅读以下会计报表的摘录，并回答问题。
会计英语课后练习题含答案
会计英语课后练习题含答案一、选择题1.Which of the following is an example of a current asset?A. LandB. BuildingsC. Accounts payableD. Long-term bonds payableAnswer: C2.Which of the following is an example of a non-current asset?A. InventoryB. Accounts receivableC. EquipmentD. Prepd expensesAnswer: C3.Which of the following is an example of a current liability?A. Long-term loans payableB. Owner’s equityC. Accounts receivableD. Accounts payableAnswer: D4.Which of the following is an example of a non-currentliability?A. Accounts payableB. Salaries payableC. Long-term loans payableD. Rent payableAnswer: C5.Which of the following is not included in the calculation ofreturn on equity (ROE)?A. Net incomeB. Total assetsC. Average stockholders’ equityD. SalesAnswer: D二、填空题1._________ is the process of recording, classifying, andsummarizing financial transactions to produce financial statements.Answer: Accounting2.The balance sheet reports the financial position of acompany as of a specific __________.Answer: Date3.The __________ principle states that expenses should berecognized when they are incurred, regardless of when they are pd.Answer: Expense recognition4.The __________ principle states that expenses should bematched to the revenues they help generate.Answer: Matching5.The __________ is the excess of total assets over totalliabilities.Answer: Stockholders’ equity三、简答题1.What is the difference between a current asset and a non-current asset?Answer: A current asset is an asset that is expected to beconverted to cash within one year or during the normal operating cycle of the business, whichever is longer. A non-current asset is an asset that is expected to be held for more than one year and is not expected to be converted to cash during the normal operating cycle of the business.2.What is the difference between a current liability and anon-current liability?Answer: A current liability is a liability that is expected to be pd off within one year or during the normal operating cycle of the business, whichever is longer. A non-current liability is aliability that is expected to be pd off more than one year in the future and is not expected to be pd off during the normaloperating cycle of the business.3.How is the income statement different from the balance sheet?Answer: The income statement reports a company’s revenues,expenses, and net income or net loss for a specific period of time, usually one year or a quarter. The balance sheet reports acompany’s financial position as of a specific date, showing it s assets, liabilities, and stockholders’ equity.4.What is the equation for the balance sheet?Answer: Assets = Liabilities + Stockholders’ equity5.What is the purpose of financial accounting?Answer: The purpose of financial accounting is to provide useful information to external users, such as investors, creditors, and regulators, to help them make informed decisions about the company. It does this by recording and reporting a company’s financial activities in a standardized format.。
会计专业英语练习题
会计专业英语练习题Chapter 2 Accounting Concepts and PrinciplesAsset 资产Liability 负债Equity 所有者权益、股本Revenue 收⼊Expense 费⽤Gain 利得Loss 损失For each item below, indicate to which category of elements of financial statements it belongs.每个项⽬下⾯，说明这类财务报表要素属于.(a) Retained earnings 留存收益equity(b) Sales 销售revenue(c) Additional paid-in capital 股本溢价equity(d) Inventory 存货asset(e) Depreciation 折旧费expense(f) Dividends 股息equity(g) Gain on sale of investment 出售投资收益gain(h)Interest payable 应付利息liability(i)Loss on sale of equipment销售设备的亏损loss(j) Issuance of commonstock发⾏普通股equityChapter 3 Financial Statements(a)Current assets.(b)Investments.(c)Property, plant, andequipment.(d)Intangible assets.(e)Other assets.(a)流动资产(b)投资(c 固定资产(d)⽆形资产(e)其他资产InstructionsIndicate by letter where each of thefollowing1.Preferred stock.2.Goodwill.3.Wages payable.4.Trade accounts payable.5.Buildings.6.Trading securities.7.Current portion of long-termdebt.8.Premium on bonds payable.9.Allowance fordoubtful accounts.10.A ccountsreceivable.s balance sheetCurrent liabilities.Non-current liabilities.Capital stock.Additional paid-in capital. Retained earnings.(f)流动负债(g)⾮流动负债。
会计英语练习题
Chapter11. The Mill Run Golf & Country Club details the following accounts in its financial statements.(a) (b)Accounts payable and accrued liabilities ____ ____Accounts receivable ____ ____Property, plant, and equipment ____ ____Food and beverage operations revenue ____ ____Golf course operations revenue ____ ____Inventory ____ ____Long-term debt ____ ____Office and general expense ____ ____Professional fees expense ____ ____Wages and benefits expense ____ ____Instructions.(a)Classify each of the above accounts as an asset (A) , liability(L), stockholders’ equity (SE), revenue(R), or expense (E) item.(b)Classify each of the above accounts as a financing activity (F), investing activity (I), or operatingactivity (O). If you believe a particular account doesn’t fit in any of these activities, explain why.2.The following information was taken from the 2004 financial statements of pharmaceutical giantMerck and Co. All dollar amounts are in millions.Retained earnings, January 1, 2004 $34,142.0Materials and production expense 4,959.8Marketing and administrative expense 7,346.3Dividends 3,329.1Sales revenue 22,938.6Research and development expense 4,010.2Tax expense 2.161.1Other revenue 1,352.2Instructions.(a)After analyzing the data, prepare an income statement and a retained earnings statement for the yearending December 31,2004.(b)Suppose that Merck decided to reduce its research and development expense by 50%. What would bethe short-term implications? What would be the long-term implications? How do you think the stock market would react?3.Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer ofgrain-based convenience foods such as frozen waffles and cereal bars. The following items were taken from its 2004 income statement and balance sheet. All dollars are in millions._____Retained earnings $2,701.3 _____ Long-term debt $3,892.6 _____Cost of goods sold 5,298.7 _____ Inventories 681.0 _____Selling and administrative expense 2,634.1 _____ Net sales 9,613.9 _____Cash 417.4 _____ Accounts payable 767.2 _____Notes payable 709.7 _____Common stock 103.8 _____Interest expense 308.6 _____ Income tax expense 475.3_____ Other expense 6.6Instructions.Perform each of the following.(a)In each case identify whether the item is an asset (A), liability (L), stockholders’ equity (SE),revenue (R), or expense (E).(b)Prepare an income statement for Kellogg Company for the year ended December 31, 2004.4.The following items were taken from the balance sheet of Nike, Inc.(1)Cash $828.0 (7) Inventories $1,633.6(2)Accounts receivable 2,120.2 (8) Income taxes payable 118.2(3)Common stock 890.6 (9) Property, plant, and equipment 1,586.9(4)Notes payable 146.0 (10)Retained earnings 3,891.1(5)Other assets 1,722.9 (11)Accounts payable 763.8(6)Other liabilities 2,081.9Instructions.Perform each of the following.(a)Classify each of these items as an asset, liability, or stockholders’ equity. (All dollars are inmillions.)(b)Determine Nike’s accounting equation by calculating the value of total assets, total liabilities,and total stockholders’ equity.(c)To what extent dose Nike rely on debt versus equity financing?Chapter 2.1．These items are taken from the financial statements of Donovan Co. at December 31.2007Building $105,800Accounts receivable 12,600Prepaid insurance 4,680Cash 16,840Equipment 82,400Land 61,200Insurance expense 780Depreciation expense 5,300Common stock 62,000Retained earnings (January 1, 2007) 40,000Accumulated depreciation-building 45,600Accounts payable 9,500Mortgage payable 93,600Accumulated depreciation-equipment 18,720Interest payable 3,600Bowling revenues 19,180Instructions.Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in 2008.2. The following items were taken from the 2004 financial statements of Texas Instruments, Inc.(All dollars are in millions.)Long-term debt $ 368 Cash $ 2,668 Common stock 2,488 Accumulated depreciation 5,655 Prepaid expense 326 Accounts payable 1,444 Property, plant, and equipment 9,573 Other noncurrent assets 1,927Other current assets 554 Other noncurrent liabilities 943Other current liabilities 470 Retained earnings 10,575Long-term investments 264 Accounts receivable 1,696Short-term investments 3,690 Inventories 1,256Loans payable in 2005 11Instructions.Prepare a classified balance sheet in good form as of December 31, 2004.3. These financial statement items are for Snyder Corporation at year-end, July 31, 2007.Salaries payable $ 2,080Salaries expense 51,700Utilities expense 22,600Equipment 18,500Accounts payable 4,100Commission revenue 61,100Rent revenue 8,500Long-term note payable 1,800Common stock 16,000Cash 24,200Accounts receivable 9,780Accumulated depreciation 6,000Dividends 4,000Retained earnings (beginning of the year) 35,200Instructions.(a)Prepare an income statement and a retained earnings statement for the year. Snyder Corporation didnot issue any new stock during the year.(b)Prepare a classified balance sheet at July 31.(c)Compute the current ratio and debt to total assets ratio.(d)Suppose that you are the president of Allied Equipment. Your sales manager has approached you witha proposal to sell $20,000 of equipment to Snyder. He would like to provide a loan to Snyder in theform of a 10%, 5-year note payable. Evaluate how this loan would change Snyder’s current ratio and debt to total assets ratio, and discuss whether you would make the sale.4. The chief financial officer (CFO) of SuperClean Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 007, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows.SUPERCLEAN CORP.Balance SheetDecember 30, 2007Current assets Current liabilitiesCash $30,000 Accounts payable $25,000Accounts receivable 20,000 Salaries payable 15,000 $40,000 Prepaid insurance 10,000 $60,000 Long-term liabilitiesNotes payable 80,000Total liabilities 120,000 Property, plant, and equipment (net) 200,000 Stockholders’ equityTotal assets $260,000 Common stock 100,000Retained earnings 40,000 140,000Total liabilities and stockholders equity$260,000Instructions.(a)Calculate the current ratio and working capital based on the preliminary balance sheet.(b)Based on the results in (a), the CFO requested that $25,000 of cash be used to pay off the balance ofthe accounts payable account on December 31, 2007. Calculate the new current ratio and working capital after the company takes these actions.(c)Discuss the pros and cons of the current ratio and working capital as measures of liquidity.(d)Was it unethical for the CFO to take these steps?5. The following data were taken from the 2004 and 2003 financial statements of American Eagle Outfitters. (All dollars are in thousands.)20042003 Current assets $525,623 $427,878Total assets 865,071 741,339Current liabilities 189,035 141,586Total liabilities 221,401 163,857Total stockholders’ equity 643,670 577,482Cash provided by operating activities 189,469 104,548Capital expenditures 64,173 61,407Dividends paid -0- -0-Instructions.Perform each of the following.(a)Calculate the debt to total assets ratio for each year.(b)Calculate the free cash flow for each year.(c)Discuss American Eagle’s solvency in 2004 versus 2003.(d)Discuss American Eagle’s ability to finance its investment activities with cash provided by operatingactivities, and how any deficiency would be met.Chapter 3.1．During 2007, its first year of operations as a delivery service, Cheng Corp. entered into the following transactions.(1)Issued shares of common stock to investors in exchange for $110,000 in cash.(2)Borrowed $45,000 by issuing bonds.(3)Purchased delivery trucks for $60,000 cash.(4)Received $16,000 from customers for services provided.(5)Purchased supplies for $4,200 on account.(6)Paid rent of $5,600.(7)Performed services on account for $8,000.(8)Paid salaries of $28,000.(9)Paid a dividend of $11,000 to shareholders.InstructionsUsing the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the right-hand margin.Assets = Liabilities + Stockholders’EquityCash+Accounts+Supplies+Property,Plant, =Accounts +Bonds + Common + Retained Receivable and Equipment Payable Payable Stock Earningsmonth of business, are as follows.(1)Issued stock to investors for $12,000 in cash.(2)Purchased used car for $8,000 cash for use in business.(3)Purchased supplies on account for $300.(4)Billed customers $2,600 for services performed.(5)Paid $200 cash for advertising start of the business.(6)Received $1,100 cash from customers billed in transaction(4).(7)Paid creditor $300 cash on account.(8)Paid dividends of $400 cash to stockholders.Instructions(a)For each transaction indicate (a) the basic type of account debited and credited (asset,liability, stockholders’ equity); (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); (c) whether the specific account is increased or decreased; and (d) the normal balance of the specific account. Use the following format, in which transaction 1 is given as an example.Account Debited Account Credited(a) (b) (c) (d) (a) (b) (c) (d)Trans- Basic Specific Normal Basic Specific Normalaction Type Account Effect Balance Type Account Effect Balance1 Asset Cash Increase Debit Stock- Common Increase Creditholders’stockequity(b)Journalize the transaction. Do not provide explanations.3.This information relates to Matthews Real Estate Agency Corporation.Oct. (1) Stockholders invested $25,000 in exchange for common stock of the corporation.(2)Hires an administrative assistant at an annual salary of $42,000.(3)Buys office furniture for $3,600, on assount.(6)Sells a house and lot for M.E. Mills; commissions due from Mills, $10,800 (notpaid by Mills at this time).(10) Receives cash of $140 as commission for acting as rental agent renting anapartment.(27) Pays $700 on account for the office furniture purchased on October 3.(30) Pays the administrative assistant $3,500 in salary for October.InstructionsPrepare the debit-credit analysis for each transaction as illustrated on pages 119-124.4.Transaction data for Matthews Real Estate Agency are presented in 3 .Journalize the transaction. Do not provide explanations.5.Selected transactions for P.F. Quick Corporation during its first month in business arepresented below.Sept. (1) Issued common stock in exchange for $15,000 cash received from investors.(5) Purchased equipment for $12,000, paying $2,000 in cash and the balance on account.(25) Paid $5,000 cash on balance owed for equipment.(30) Paid $500 cash dividend.P.F. Quick’s chart of accounts shows: Cash, Equipment, Accounts Payable, Common Stock, and Dividends.Instructions(a)Prepare a tabular analysis of the September transaction. The column headings should be:Cash + Equipment = Accounts Payable + Stockholders’ Equity. For transactions affecting stockholders’ equity, provide explanations in the right margin, as shown on page107.(b)Journalize the transaction. Do not provide explanations.(c)Post the transactions to T accounts.Chapter 41．The following independent situations require professional judgement for determining when to recognize revenue from the transaction.(a)Southwest Airlines sells you an advance-purchase airline ticket in September foryour flight home at Christmas.(b)Ultimate Electronics sell you a home theatre on a “no monkey down, no interest, andno payments for one year” promotional deal.(c)The Toronto Blue Jays sells season tickets online to games in the Skydome. Fans canpurchase the tickets at any time, although the season doesn’t officially begin until April. The major league baseball season runs from April through October.(d)In August, you order a sweater from Sears using its online catalog. The sweaterarrives in September in full in November.(e)In August, you order a sweater from Sears using its online catalog. The sweaterarrives in September, and you charge it to your Sears credit card. You receive and pay the Sears bill in October.InstructionIdentify when revenue should be recognized in each of the above situations.2.Your examination of the records of a company that follows the cash basis ofaccounting tells you that the company’s reported cash basis earnings in 2007 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.2007 2006 Accounts receivable $3,400 $2,300Unpaid wages owed 1,500 2,400Other unpaid amounts 1,400 1,600 InstructionDetermine the company’s net earning on an accrual basis for 2007. Show all your calculations in an orderly fashion.3.In its first year of operations Bere Company earned $28,000 in service revenue,$6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers.The company incurred operating expenses of $14,500. Of these expenses $13,000 were paid in cash; $1,500 was still owed on account at year-end. In addition, Bere prepaid $3,600 for insurance coverage that would not be used until the second year of operations.Instructions(a)Calculate the first year’s net earnings under the cash basis of accounting, and calculatethe first year’s net earning under the accrual basis of accounting.(b)Which basis of accounting (cash or accrual) provides more useful information fordecision makers?4．The Radical Edge, a ski tuning and repair shop, opened in November 2006. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2007.Cash Receipts Cash PaymentsIssue of common shares $20,000Payment for repair equipment $9,200 Rent payments 1,225 Newspaper advertising payment 375 Utility bills payments 970 Part-time helper’s wages payments 2,600 Income tax payment 10,000 Cash receipts from ski and snowboardrepair services 32,150Subtotals 52,150 24,370 Cash balance 27,780 Totals $52,150 $52,150 You learn that repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $175 per month on a one-year lease. The lease contract requires payment of the first and last month s’ rent in advance, which was done. The part-timer helper is owed $220 at April 30, 2007, for unpaid wages. At April 30, 2007, customers owe The Radical Edge $650 for services they have received but have not yet paid for.Instructions(b)Prepare the April 30, 2007, classified balance sheet.5. MaxPlay, a maker of electronic games for kids, has just completed its first year of operations. The company’s sales growth was explosive. To encourage large national stores to carry its products MaxPlay offered 180-day financing-meaning its largest customers do not pay for nearly 6 months. Because MaxPlay is a new company, its components suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year MaxPlay owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year.Instructions(a)Explain how cash and accrual accounting would differ for each of the events listed aboveand describe the proper accrual accounting.(b)Assume that at the end of the year MaxPlay reported a favorable net income, yet thecompany’s management is concerned because the company is very short of cash. Explain how MaxPlay could have positive net income and yet run out of cash.6.The ledger of Reliable Rental Agency on March 31 of the current year includes theseselected accounts before adjusting entries have been prepared.Debits Credits Prepaid Insurance $3,600Supplies 3,000Equipment 25,000Accumulated Depreciation-Equipment $8,400Notes Payable 20,000Unearned Rent Revenue 10,200Rent Revenue 60,000Interest Expense 0Wage Expense 14,000An analysis of the accounts shows the following.(1)The equipment depreciates $250 per month.(2)Half of the unearned rent revenue was earned during the quarter.(3)Interest of $440 is accrued on the notes payable.(4)Supplies on band total $850.(5)Insurance expires at the rate of $300 per month.InstructionsPrepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and supplied Expense.7.Gene Hoffman, D.D.S., opened an incorporated dental practice on January 1, 2007.During the first month of operations the following transactions occurred:such services was earned but not yet billed to the insurance companies.(2)Utility expenses incurrent but not paid prior to January 31 totaled $520.(3)Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash andsigning a $60,000, 3-year note payable (Interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month.(4)Purchased a 1-year malpractice insurance policy on January 1 for $18,000.(5)Purchased $1,750 of dental supplies. On January 31 determined that $350 of supplieswere on hand.InstructionsPrepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation-Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.Chapter 5ExercisesE5-1 The following transactions are for Kale Company.1.On December 3 Kale Company sold $480000 of merchandise to Thomson Co., terms1/10,n/30 .The cost of the merchandise sold was 320000.2.On December 8 Thomson Co. was granted an allowance of $28000 for merchandisepurchased on December 3.3.on December 13 Kale company received the balance due from Thomson Co. instructions(a)Prepare the journal entries to record these transactions on the books of Kale Company .Kale uses a perpetual inventory system.(b)Assume that Kale Company received the balance due from Thomson Co. on January 2 ofthe following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.E5-2 Assume that on September 1 office depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September these transactions occurred.Sept.6 purchased calculators from black box co. at a total cost of $620,term n/30.Sept .9 Paid freight of $50 on calculators purchased from Black Box Co.Sept 10 Returned calculators to black box co. for $38 credit because they did not meet specifications .Sept 12 Sold calculators costing $520 for $780to University Book Store, terms n/30.Sept14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered .The calculator cost $28.Sept 20 Sold calculators costing $570 for $900 to Campus Card Shop. InstructionsJournalize the September transactions .E5-3 This information relates to Sherper Co.$220000,terms2/10,n/30.2.On April 6 paid freight costs of $900 on merchandise purchased from Newport.3.On April 7 purchased equipment on account for $26000.4.On April 8 returned some of April 5 merchandise of Newport Company which cost$3600.5.On April 15 paid the amount due to Newport Company in full.Instructions(a) Prepare the journal entries to record the transactions listed above on the books of SherperCo. uses a perpetual inventory system.(b) Assume that Sherper Co. paid the balance due to Newport Company on May 4 instead of April 15.Prepare the journal entry to record this payment.E5-8 In its income statement for the year ended December 31,2007,Knitz Company reported the following condensed data.Administrative expenses $435000 selling expenses $ 690000Cost of goods sold 987000 Loss on sale of equipment 83500Interest expense 68000 Net sales 2350000Interest revenue 45000Instructions(a)Prepare a multiple-step income statement.(b)Calculate the profit margin ratio and gross profit rate.(c)In 2006 Knitz had a profit margin ratio of 9%. Is the decline in 2007 a cause forconcern?E5-9 In its income statement for the year ended June 30,2004, The Clorox Company report the following condensed data (dollars in millions ).Selling and Research andAdministrative expenses $ 552 development expense $ 84Net sales 4324 Income tax expense 294Interest expense 30 Other income 1Advertising expense 429 Cost of goods sold 2387 Instructions(a)Prepare a multiple step income statement.(b)Calculate the gross profit rate and the profit margin ratio and explain what each means.(c)Assume by marketing department has presented a plan to increase advertising expensesby $300 million . It expects thos plan to result in an increase in both net sales and cost of goods sold of 25%. Redo parts (a) and (b) and discuss whether this plan has merit.(Assume a tax rate of 35%,and round all amounts to whole dollars .)E5-10 The trial balance of Rachel Company at the end of its fisical year , August 31 , 2007, includes these accounts :Merchandise Inventory $19200; Purchases $144000; Sales $190000; Freight-in $8000; Sales Returns and Allowances $3000;Freight-out $1000;and Purchase Returns and Allowances $5000. The ending merchandise inventory is $25000.InstructionsPrepare a cost of goods sold section for the year ending August 31.Chapter 6ExercisesE6-2Dennis Lee ,an auditor with Knapp CPAs, is performing a review of Nathan Company’s inentory account. Nathan did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740000.However, the following information was not considered when determining that amount.1.Included in the company’s count were goods with a cost of $250000 that the company isholding on consignment.The goods belong to Anya Corporation.2.The physical count did not include goods purchased by Nathan with a cost of $40000that were shipped FOB shipping point on December 28 and did not arrive at Nathan’s warehouse until January 33.Included in the inventory account was $17000 of office supplies that were stored in thewarehouse and were to be used by the company’s supervisors and managers during the coming year4.The company received an order on December 29 that was boxed and was sitting on theloading dock awaiting pick-up on Decemeber 31.The shipper picked up the goods on January 1 and deliverde them on January 6.The shipping tems were FOB shipping point.The goods had a selling price of $40000 and a cost of $30000.The goods were not included in the count because they were sitting on the dock.5.On December 29 Nathan shipped goods with a selling price of $80000 and a cost of$60000 to Central Sales Corporation FOB shipping point.The goods arrived on January3.Central Sales had only ordered goods with a selling price of $10000 and a cost of $8000.However, a sales manager at Nathan had authorized the shipment and said that if Central wanted to ship the goods back next week, it could.6.Included in the count was $50000 of goods that were parts for a machine that thecompany on longer made. Given the higi-tech nature of Nathan’s products,it was unlikely that these obsolete parts had any other use .However, management would prefer to keep them on the books at cost, “since that is what we paid for them ,after all.”InstructionsPrepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item.E6-3 Shippers Inc. had the following inventory situations to consider at January 31.its year end.(a)Goods held on consignment for MailBoxes Corp. since December 12.(b)Goods shipped on consignment to Rinehart Holdings Inc. on January 5(c)Goods shipped to a customer, FOB destination ,on January 29 that are still in transit.(d)Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit.(e)Goods purchased FOB destination from a supplier on January 25,that are still in transit.(f)Goods purchased FOB shipping point from a supplier on January 25,that are still intransit.(g)Office supplies on hand at January 31.InstructionsIdentify which of the preceding items should be included in inventory. If the item should not be included in inventory, state where it should be recorded.E6-4Boarders sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below if information relating to Boarders’s purchases of Xpert snowboards during September. During the same month, 118 Xpert snowboards were sold. Boarders uses a periodic inventory system.Instructions(a)Compute the ending inventory at September 30 using the FIFO and LIFO methods.Prove the amount allocated to cost of goods sold under each method.(b)For both FIFO and LIFO ,calculate the sum of ending inventory and cost of goods sold.What do you notice about the answers you found for each method?E6-7 Plato Company reports the following for the month of June.(1)FIFO,(2)LIFO,and (3) average cost.(b)Which costing method gives the highest ending inventory? The highest cost of goodssold ?Why?(c)How do the average-cost values for ending inventory and cost of goods sold relate toending inventory and cost of goods sold for FIFO and LIFO?(d)Explain why the average cost is not $6InstructionsCalculate the inventory turnover ratio,days in inventory,and gross profit rate for PepsiCo.,Inc. for 2002,2003, and 2004. Comment on any trends.E6-9 Cody Camera Shop es the lower of cost or market basis for its inventory. The following data are available at December 31.InstructionsWhat amount should be reported on Cody Camera Shop’s financial statements, assuming the lower of cost or market rule is applied?E6-10Deere&Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. It reportde the following information in its 2004 annual report.Instructions(a)Compute Deere’s inventory turnover ratio and days in inventory for 2004(b)Compute Deere’s current ratio using the 2004 data as presented, and then again afteradjusting for the LIFO reserve(c)Comment on how ignoring the LIFO reserve might affect your evaluation of Deere’sliquidity.chapter 8exercisese-8-3 At the beginning of the current period，Huang Crop. had balances in Accounts Receivable of 200000 and in Allowance for Doubtful Accounts of 9000（credit）. During the period，it had net credit sales of 800000 and collections of 743000. It wrote off as uncollectible accounts receivable of 7000.However，a 4000 account previously written off as uncollectible was recovered before the end before the end of the current period . Uncollectible accounts are estimated to total 25000 at the end of period.Instructions（a）Prepare the entries to record sales and collections during the period.（b）Prepare the entry to record the write-off of uncollectible accounts during the period.（c）Prepare the entries to record the recovery of the uncollectible account during the period.（d）Prepare the entry to record bad debts expense for the period.（e）Determine the ending balances in Accounts Receivable and Allowance for Doubtful accounts. （f）What is the net realizable value of the receivables at the end of period？E8-4 The ledger of Garcia Company at the end of the current year shows Accounts Receivable 96000；Credit Sales 780000 ；and Sales Returns and Allowances 40000.Instructions（a）If Garcia uses the direct write-off method to account for uncollectible accounts ，journalize the adjusting entry at December 31，assuming Garcia determines that Allied’s 900 balance is un collectible.（b）IF Allowance for Doubtful Accounts has a credit balance of $1100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.（c）If Allowance for Doubtful Accounts has a debit balance of 500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.E8-5 Hachey Company has accounts receivable of 95100 at March 31,2007.An analysis of the accounts shows these amounts.Credit terms are 2/10,n/30.At March 31,2007,there is a $2200 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivable basis for estimating uncollectible accounts. The company’s estimates of bad debts as shown on next page.。
《会计专业英语》习题答案人大版Chapter 8
Chapter 8 Financial Statements and Financial Statement AnalysisMultiple Choice Questions1. A2. C3. B4. B5. D6. C7. B8. D9. A 10. B 11. A 12. C 13.D 14. A 15. A 16. A 17. B 18. B 19. B 20. DDiscussion Questions1. Is the measurement of net income absolutely accurate? Why or why not?The measurement of net income is not absolutely accurate due to the assumptions and estimates in the accounting process. An Income Statement has certain limitations. For example, the amounts shown for depreciation expense are based upon estimates of the useful lives of the company’s tool, equipment, and building. In addition, the Income Statement includes only those events that have been evidenced by actual business transactions. Perhaps during the year, the company’s advertising has caught the attention of many potential customers, who may be the sources of future income. However, the Income Statement cannot reflect the unrealized revenue. Only after the real transactions take place, can the sales revenues be recognized.2. What are the three types of business activities? Give examples of each type of activity.The three types of business activities include operating, investing, and financing activities. Operating activities include the cash effects of transactions that create revenues and expenses in normal course of business. This category is the most important. It shows the cash provided by company operations, which is generally considered to be the best measure of a company’s ability to generate sufficient cash to continue as a going concern. They include sales of goods and services, payments to supplies of merchandise and services.Investing activities include the cash effects of transactions involving plant assets, intangible assets, and investments. They include purchase of property, plant, andequipment, investments in debt or equity securities of other entities.Financing activities involve liability and owners’ equity items. They include: (1) obtaining resources from owners and providing them with a return on their investments, and (2) borrowing money from creditors and repaying the amounts borrowed.3. What types of information are presented in the notes to the financial statements?A set of financial statements is normally accompanied by several notes. Notes to the financial statements are the means of explaining the items presented in the main body of financial statements. Notes disclose information useful in interpreting the statements and are an integral part of the financial statements.Many items are disclosed in notes accompanying the financial statements. Among the most useful are the followings:(1) Accounting policies and methods;(2) Unused lines of credit;(3) Significant commitments and loss contingencies;(4) Dividends in arrears;(5) Assets pledged to secure specific liabilities;(6) Changes in accounting policies and methods.4. Distinguish between trend change analysis and component percentage analysis. Which will be better suited for analyzing the changes in sales over several years?Trend changes are the changes in financial statement items from a base year to the following or preceding years. To compute trend change, a base year is firstly selected and each item in the financial statements for the base year is given a weight of 100 percent. Then, each item in the financial statements for the following or preceding years is expressed as a percentage of the base-year amount.Component percentage analysis is the proportional expression of each financial statement item in a given period to a base amount within the financial statement.Trend change analysis is better for analyzing the changes in sales over several years.5. Explain the ratios used to evaluate profitability. Explain briefly how each is computed.Profitability ratios measure the degree of success or failure of a company in a given year. Usually the key ratios include gross profit ratio, profit margin on sales, return on assets, return on equity, earnings per share, price-earnings ratio, and payout ratio.(1) Gross profit ratio.Gross profit ratio is computed by dividing gross profit by net sales. Gross profit (also known as gross margin) is the difference between net sales and the cost of goods sold.Gross profit = Net sales - Cost of goods soldGross profit ratio = Gross profitNet sales(2) Profit margin on sales.Profit margin on sales is computed as dividing net income by net sales. Net income is the difference between net sales and all expenses (including cost of goods sold). A company can improve its profit margin on sales by increasing its gross profit rate and/or by controlling its operating expense and other expenses.Profit margin on sales = Net incomeNet sales(3) Return on assets (ROA).ROA is computed by dividing net income by average total assets. Average total assets are computed by adding the beginning and ending values of total assets and dividing the total by two.ROA = Net incomeAverage total assets(4) Return on common owners equity (ROE).ROE equals net income less preferred dividends, divided by average common owners’ equity. Average common owners’ equity is computed by adding the beginning and ending values of total common owners’ equity and dividing the total by two.ROE = Net income-PreferreddividendsAverage common owners’ equity(5) Earnings per share (EPS).EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. The weighted-average number of shares outstanding for the year is determined by multiplying the number of shares outstanding by the fraction of the year in which the number of shares outstanding remained unchanged.EPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding(6) Price-earnings ratio (P/E ratio).P/E ratio is computed by dividing the current market price per share of a company’s stock by its annual EPS.P/E ratio = Stock price pershareEarning pershare(7) Payout ratio.Payout ratio equals cash dividends paid to common stockholders divided by net income (less preferred dividends).Payout ratio = Cash dividendsNet income -Preferreddividends6. Why might earnings per share be more significant to a stockholder in a large corporation than the total amount of net income?Earnings per share shows the dollars earned by each share of common stock. EPS equals net income less preferred dividends, divided by weighted-average number of shares outstanding in the same year. That is, a stockholder can know the net income he earns on the share of common stocks he owns.However, based on the total amount of net income, a stockholder cannot know how much he earns from his shares.7. Company C has a current ratio of 3 to pany D has a current ratio of 2 to 1. Does this mean that company C’s operating cycle is longer than company D’s? Why or why not?No, this does not mean that company C’s operating cycle is longer than company D’s. A company’s operating cycle is calculated as”Operating cycle=days to collect accounts receivable + days to sell inventoryDays to collect accounts receivable = 365Accounts receivable turnover rateDays to sell inventory = 365Inventory turnover rateAlthough Company C has a higher current ratio, we cannot calculate days to Days to collect accounts receivable and Days to sell inventory based on the information.8. Which ratio or ratios do you think should be of the greatest interest to:(1) A bank contemplating a short-term loan?A bank contemplating a short-term loan should be interested in such financial ratios as working capital, current ratio, quick ratio, and current cash debt coverage ratios.(2) An investor in common stock?An investor in common stock should be interested in such financial ratio as gross profit ratio, profit margin on sales, return on assets, return on equity, return on investment, earnings per share, price-earnings ratio, and payout ratio.9. Mr. Wang, the chief marketing officer, wants to reduce the selling price of his company’s products by 10% to increase market share. He says, “I know this will reduce our gross profit rate, but the increased number of units sold will make up for the lost margin.” Before this action is taken, what other factors does the company need to consider?Gross profit rate = Gross profitNet salesGross profit = Net sales - Cost of goods soldFrom the above, we know that gross profit rate is determined both by net sales and cost of goods sold. Reducing the net sales does not always lead to a reduced gross profit rate. If cost of goods sold greatly reduces, it is possible that gross profit ratio increases. If cost of goods sold increases, it is possible that the increased number of units sold will not make up for the lost margin. Therefore, before this action is taken, the company needs to consider cost of goods sold of his company’s products.10. Mr. Gao, the chief executive officer (CEO), is puzzled. During last year,his company experienced a net loss of $960,000, yet its cash increased by $540,000in the same year. Explain to the CEO how this could occur.Profit is the difference between revenues and expenses for a specified period oftime. If expenses are greater than revenues, the difference is net loss. Net income/netloss is measured on an accrual basis, while cash flows are measured on a cash basis.Under accrual basis of accounting, companies report revenue when earned, even if cashhas not been received, and they report expenses when incurred, even if cash has notbeen paid. As a result, net income/net loss is not the same as net cash.In this case, the net loss of $960,000 is the result of revenues minus expensesduring last year. It is measured on an accrual basis. However, the increased cash of $540,000 is the net cash from operating, investing, and financing activities during lastyear. It is measured on a cash basis. So, it is not strange that his company experienceda net loss of $960,000, and its cash increased by $540,000 in the same year.ProblemsProblem 8-1A condensed balance sheet for Company E prepared at the end of the year is as follows:AssetsCash $ 90,000Accounts receivable 168,000 Accounts payable 85,000 Inventory 350,000 Long-term liabilities 300,000 Prepaid expenses 75,000 Capital stock ($3 par) 330,000 Plant and equipment (net) 520,000 Retained earnings 563,000 Other assets 105,000Total $1,308,000 Total $1,308,000During the year the company earned a gross profit of $1,550,000 on sales of$3,200,000. Accounts receivables, inventory, and plant assets remained almost constantin amount through the year, so year-end figures may be used rather than the average.This company issued no preferred stocks. (红字标黄色是更正信息)RequiredCompute the following: (Carry to two decimal places)(1) Current ratioCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000+$168,000+$350,000+$75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Current ratio = Current assets Current liabilities = $683,000$115,000 = 5.94(2) Quick ratioQuick assets = cash + accounts receivable= $90,000 + $168,000= $258,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Quick ratio = Quick assets Current liabilities = $258,000$115,000 = 2.24(3) Working capitalCurrent assets = cash + accounts receivable + inventory + prepaid expenses = $90,000 + $168,000 + $350,000 + $75,000= $683,000Current liabilities = notes payable + accounts payable= $30,000 + $85,000= $115,000Working capital = current assets - current liabilities= $683,000 - $115,000= $568,000(4) Debt ratioTotal assets = $1,308,000Total liabilities = notes payable + accounts payable + long-term liabilities = $30,000 + $85,000 + $300,000= $415,000Debt ratio = Total liabilitiesTotal assets = $415,000$1,308,000= 31.72%(5) Accounts receivable turnover (all sales were on credit) Net sales = $3,200,000Average accounts receivable = $168,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$3,200,000$168,000=19.05 times per year(6) Inventory turnoverCost of goods sold = net sales – gross profit= $3,200,000 - $1,550,000= $1,650,000Average inventory = $350,000Inventory turnover rate = Cost of goods soldAverage (net) inventory= $1,650,000$350,000= 4.71 times per year(7) Profit margin on salesNet sales = $3,200,000Net income = retained earnings = $563,000Profit margin on sales = Net incomeNet sales = $563,000$3,200,000= 17.59%(8) Return on assetsNet income = retained earnings = $563,000 Average total assets = $1,308,000ROA = Net incomeAverage total assets = $563,000$1,308,000= 43.04%(9) Return on equity (this company issued no preferred stocks) Net income = retained earnings = $563,000Average common owners’ equity = capital stock + retained earnings= $330,000 + $563,000= $893,000ROE = Net income-Preferreddividends Average common owners’ equity = $563,000$893,000= 63.05%(10) Earnings per share (this company issued no preferred stocks)Net income = retained earnings = $563,000Weighted-average number of shares outstanding = $330,000/$3 = 110,000 sharesEPS = Net income-PreferreddividendsWeighted-average number ofshares outstanding =$563,000110,000= $5.12 per shareProblem 8-2The following selected data are from a recent annual report of company F. Dollar amounts are stated in millions.Beginning of the year End of the yearTotal current assets $9,230 $9,378Total current liabilities 4,836 5,902Total assets 31,125 33,561Total owners’ equity16,028 17,162Operating income 4,280Net income $3,735The company has long-term liabilities that bear interests at annual rate from 7 percent to 10 percent.Required1. Compute the company’s current ratio at: (1) the beginning of the year and, (2) the end of the year. (Carry to two decimal places)(1) Current ratio at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Current ratio = Current assetsCurrent liabilities = $9,230$4,836= 1.91(2) Current ratio at the end of the year Total current assets = $9,378Total current liabilities = $5,902Current ratio = Current assetsCurrent liabilities = $9,378$5,902= 1.592. Compute the company’s working capital at: (1) the beginning of the year and, (2) the end of the year. (Express dollar amounts in thousands)(1) Working capital at the beginning of the yearTotal current assets = $9,230Total current liabilities = $4,836Working capital = current assets - current liabilities= $9,230 - $4,836= $4,394(2) Working capital at the end of the yearTotal current assets = $9,378Total current liabilities = $5,902Working capital = current assets - current liabilities= $9,378 - $5,902= $3,4763. Is the company’s short-term, debt-paying ability improving or deteriorating? Company F’s short-term debt-paying ability has declined, as evidenced by its lower current ratio at the end of the year (1.59 vs. 1.91). The dollar amount of working capital has also decreased ($4,394 million to $3,476 million) which means that the company has a lesser ‘cushion’ between its currently-maturing obligations and its most liquid assets.4. Compute the company’s (1) return on average total assets and (2) return on average total owners’ equity. (Round the average assets and average equity to the nearest dollar and final computations to the nearest 1 percent)(1) Return on average total assetOperating income = $4,280Average total assets = ($31,125 + $33,561)/2 = $32,343ROA = Net incomeAverage total assets = $4,280$32,343= 13.23%(2) Return on average total owners’ equity Net income = $3,735Average owners’ equity = ($16,028 + $17,162)/2= $16,595ROE = Net income-Preferreddividends Average common owners’ equity = $3,735$16,595= 22.51%e. As an equity investor, do you think that company F’s management is utilizing the company’s resources in a reasonably efficient manner? Explain.Yes, company F’s management is using the company’s assets to generate a strong return on both assets (13.23%) and owners’ equity (22.51%), while maintaining strong liquidity with which to satisfy its obligations as they mature.Problem 8-3The following selected data for company M and company N for the year end are as follows:company M company NNet credit sales $1,600,000 $1,500,000Cost of goods sold 1,250,000 1,120,000Cash 175,000 89,000 Accounts receivable (net) 180,000 155,000 Inventory 72,000 218,000Current liabilities $210,000 $190,000Assume that the year-end balances shown for accounts receivable and for inventory also represent the average balances of these items throughout the year.Required1. For each of the two companies, compute the following:(1) Working capitalCompany M:Total current assets = cash + accounts receivable + inventory= $175,000 + $180,000 + $72,000= $427,000Total current liabilities = $210,000Working capital = current assets - current liabilities= $427,000 - $210,000= $217,000Company N:Total current assets = cash + accounts receivable + inventory= $89,000 + $155,000 + $218,000= $462,000Total current liabilities = $190,000Working capital = current assets - current liabilities= $462,000 - $190,000= $272,000(2) Current ratio Company M:Total current assets = $427,000 Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $427,000$210,000 = 2.03 Company N:Total current assets = $462,000 Total current liabilities = $190,000Current ratio = Current assetsCurrent liabilities = $462,000$190,000 = 2.43(3) Quick ratio Company M:Total quick assets = cash + accounts receivable= $175,000 + $180,000 = $355,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $355,000$210,000 = 1.69 Company N:Total quick assets = cash + accounts receivable= $89,000 + $155,000 = $244,000Total current liabilities = $190,000Quick ratio = Quick assetsCurrent liabilities = $244,000$190,000 = 1.28(4) Number of times inventory turned over during the year and the average number of days required to turn over inventory (round computation the nearestday)Company M:Cost of goods sold = $1,250,000 Average inventory = $72,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,250,000$72,000= 17.36 times per yearDays to sell inventory = 365Inventory turnover rate = 36517.36= 21 daysCompany N:Cost of goods sold = $1,120,000 Average inventory = $218,000Inventory turnover rate = Cost of goods soldAverage (net) inventory = $1,120,000$218,000= 5.14 times per yearDays to sell inventory = 365Inventory turnover rate = 3655.14= 71 days(5) Number of times accounts receivable turned over during the year and the average number of days required to collect account receivable (round computation the nearest day)Company M:Net credit sales = $1,600,000Average accounts receivable = $180,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,600,000$180,000=8.89 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3658.89= 41 daysCompany N:Net credit sales = $1,500,000Average accounts receivable = $155,000Accounts receivable turnover rate = Net salesAverage (net) accounts receivable=$1,500,000$155,000= 9.68 times per yearDays to collect accounts receivable = 365Accounts receivable turnover rate =3659.68= 38 days2. From the viewpoint of short-term creditor, comment on the quality of each company’s working capital. To which company would you prefer to sell $65,000 in merchandise on a 30-day open account?As Company M’s working capital ($217,000) is more than company N’s working capital ($272,000), from the viewpoint of short-term creditor, the quality of company N’s working capital is better than that of company M’s.I prefer to sell $65,000 in merchandise on a 30-day open account to company M,as company M spends less days (21 days) to sell inventory than company N (71 days).Problem 8-4The following data are selected from the financial statements of company G, a retail store:From the balance sheet:AssetsCash $46,000 Accounts receivable (net) 205,000 Inventory (at cost) 295,000 Plant & equipment (net of depreciation) 605,000 Current liabilities 210,000 Total owners’ equity600,000 Total assets 1,700,000 From the income statement:Net sales $3,000,000 Cost of goods sold 2,250,000 Operating expenses 525,000 Interest expense 85,000 Income tax expense 22,400 Net income 117,600 From the statement of cash flows:Net cash provided by operating activities $62,000 (including interest paid of $65,000) (68,000) Net cash used in investing activitiesFinancing activities:Amounts borrowed$52,000 Repayment of amounts borrowed (23,000) Dividends paid(21,000)Net cash provided by financing activities 8,000 Net increase in cash during the year$2,000Assume that the year-end balances shown for total assets and total owners’ equity also represent the average balances of these items throughout the year. This company issued no preferred shares. Required1. Explain how the interest expense shown in the income statement could be $85,000, when the interest payment appearing in the statement of cash flows is only $65,000.In the statement of cash flows, amounts are reported on a cash basis, whereas in the income statement, they are reported under the accrual basis. Apparently $20,000 of the interest expense incurred during the year had not been paid as of year-end. This amount should be included among the accrued expenses appearing as a current liability in the company’s balance sheet.2. Compute the following ratios/Dollar Amounts (round to one decimal place): (1) Current ratioTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000 = $546,000Total current liabilities = $210,000Current ratio = Current assetsCurrent liabilities = $546,000$210,000 = 2.6(2) Working capitalTotal current assets = = cash + accounts receivable + inventory= $46,000 + $205,000 + $295,000= $546,000Total current liabilities = $210,000Working capital = Total current assets - Total current liabilities= $546,000 - $210,000= $336,000(3) Quick ratioTotal quick assets = = cash + accounts receivable= $46,000 + $205,000= $251,000Total current liabilities = $210,000Quick ratio = Quick assetsCurrent liabilities = $251,000$210,000= 1.2(4) Debt ratioTotal liabilities = total assets – total owners’ equity= $1,700,000 - $600,000= $1,100,000Total assets = $1,700,000Debt ratio = Total liabilitiesTotal assets = $1,100,000$1,700,000=64.7%(5) Times interest earnedIncome before income taxes and interest expense= net income + income taxes + interest expense= $117,600 + $22,400 + $85,000= $225,000Interest expense = $85,000Times interest earned = Income before income taxes and interestexpenseInterestexpense= $225,000$85,000= 2.6 times(6) Cash debt coverage ratioNet cash provided by operating activities = $62,000Average total liabilities = $1,100,000Cash debt coverage ratio = Net cashprovided by operating activitiesAverage total liabilities=$62,000$1,100,000= 0.06 times3. Comment on these measurements and evaluate Company G’s short-term debt-paying ability.By traditional measures, company G’s current ratio (2.6 to 1) and quick ratio (1.2 to 1) appear quite adequate. The company also generates a positive cash flow from operating activities ($62,000) which is about triple the amount of its dividend payments to stockholders ($21,000).4. Compute the following ratios:(1) Gross profit rateGross profit = Net sales - Cost of goods sold = $3,000,000 - $2,250,000 = $750,000 Net sales = $3,000,000Gross profit ratio = Gross profitNet sales = $750,000$3,000,000= 25%(2) Profit margin on sales Net income = $117,600 Net sales = $3,000,000Profit margin on sales = Net incomeNet sales = $117,600$3,000,000= 3.9%(3) Return on assetsNet income = $117,600 Average total assets = $1,700,000ROA = Net incomeAverage total assets = $117,600$1,700,000= =6.9%(4) Return on equityThis company issued no preferred shares. Net income = $117,600Average common owners’ equity = $600,000ROE = Net income-Preferreddividends Average common owners’ equity = $117,600$600,000= 19.6%(5) Payout ratioThis company issued no preferred shares. Net income = $117,600Cash dividends = $21,000Payout ratio = Cash dividendsNet income -Preferreddividends = $21,000$117,600= 17.9%5. Comment on Company G’s performance under these measurements.Company G’s profit margin on sales is 3.9%, indicating that one dollar of net sales results in net income of 3.9 cents. Investors and management can assess the company’s profitability by comparing its profit margin ratio with its competitors’ in the same industry. Profit margin on sales vary across industries. Retail stores generally experience lower profit margins.The 6.9% return on assets is not adequate by traditional standards to a retail store. However, the 19.6% return on equity is high. The problem arises because of company G’s relatively large interest expense, which is stated as $85,000 for the year.At year-end, company G has total liabilities of $1,100,000 ($1,700,000 total assets less $600,000 in owners’ equity). But $210,000 of these are current liabilities, most of which do not bear interest. Thus, company G has about $890,000 in interest-bearing debt.Interest expense of $85,000 on $890,000 of interest-bearing debt indicates an interest rate of approximately 9.55%. Obviously, it is not profitable to borrow moneyat 9.55%, and then reinvest these borrowed funds to earn a pretax return of only 6.9%. If company G cannot earn a return on assets that is higher than the cost of borrowing, it should not borrow money.Company G has a payout ratio of 17.9%, indicating that it has decided that it can and should pay 17.9% of its earnings to its owners. A higher percentage could mean that it has more cash than it has business opportunities to use that cash. A lower percentage could mean that it has very little cash to spare due to a declining business, or, very little cash to spare because it has many internal opportunities to invest that same cash.6. Discuss the safety of long-term creditors’ claims.Long-term creditors do not appear to have a high margin of safety. The debt ratio of 64.7% is high for American (or Chinese) industry. Also, debt is continuing to rise. During the current year, the company borrowed an additional $52,000, while repaying only $23,000 of existing liabilities. In the current year, interest payments alone ($65,000) was more than the net cash flow from operating activities ($62,000).A general rule of thumb is that a cash debt coverage ratio below 0.20 times is cause for additional examination. Company G’s cash debt coverage ratio is 0.06 times, below the 0.20 threshold, suggesting that the company is not solvent.。
会计专业英语章节练习题及答案(共17章)chapter 3
Chapter 3Discussion questions1.Why trading securities are usually regarded as current assets?Trading securities consist of surplus cash invested in government or corporate debt obligations, or in shares (equity securities) that can be readily sold (marketable) and ate held as a source of mature or be sold within the next year or operating period to be classified as current assets, although it is probable that they will. Trading securities ate considered current assets if they are marketable, and management’s intent of holding them for a longer period, they should be classified as long-term investment in securities.2.In making the annual adjusting entry for uncollectible accounts, a company mayutilize a balance sheet approach to make the estimate or it may use an income statement approach. Explain these two alternative approaches.A balance sheet is a financial statement listing a company’s assets, liabilities and owners’ or shareholders’ equity on a specific date. A balance sheet approach to an audit is a limited audit that only examines the accounts on a company's balance sheet.The income statement, also known as the profit and loss, or P&L, statement, runs down the revenues and expenses of a company over a specified time period, showing the company's net profit for the period. All publicly traded companies are required to produce an income statement at least annually, but many firms choose to produce quarterly income statements as well.3.Which inventory valuation method should a company use if it wants to minimizeincome taxes?When prices are rising, LIFO results in lower reported income and thus may provide a related tax benefit.When prices are decreasing, FIFO results in lower reported income and thus may provide a related tax benefit.4.What are the advantages by using the retail method to estimate inventories?The retail inventory method is widely used by department stores and other types of retail business that are likely to keep periodic inventory records. Such firms typically mark each item of merchandise with the retail price and record purchased at both cost and retail price. A firm can estimate its ending inventory at retail price merely by subtracting the net sales for the month from the retail price of goods available for sale. The ending inventory at retail is then converted to most on the basis of the ratio of cost to selling retail price for the current period. One of the major advantages of the retail method is that it provides inventory figures for use inpreparing interim statements.Exercises1.In general terms, financial assets appear in the balance sheet at:A．Face valueB．Current valueC．Market valueD．Estimated future sales valueAnswer: B2. On January 1, CL Company had a $3100credit balance in the Allowance forDoubtful Accounts. During the year, sales totaled $78000 and &6900 of accounts receivable were written off as uncollectible. A December 31 aging of accounts receivable indicated the amount probably uncollectible to be $5300. (No recoveries of accounts previously written off were made during the year.) CL Company’s financial statements for the current year should include:A．Uncollectible accounts expense of $9100B．Uncollectible accounts expense of $5300C．Allowance for Doubtful Accounts with a credit balance of $1500D．Allowance for Doubtful Accounts with a credit balance of $8400Answer: A3. Why do companies prefer the LIFO inventory method during a period of risingprices?A．Higher reported incomeB．Lower income taxesC．Lower reported incomeD．Higher ending inventoryAnswer: B4. Which of the following statements is true?A. Separation of duties is not an important element of internal control forinventories.B. The perpetual system is used primarily for low-unit-cost inventory.C. An annual physical count of inventory is needed regardless of the type ofinventory system used.D. All the above are true.Answer: C5. If a firm purchases $100000 of bonds of Z Company at 101 plus accrued interestof $2000 and pays broker’s commissions of $50, the amount debited to Investment in Z Company Bonds may be:A. $100000B. $101050C. $103000D. none of the aboveAnswer: C6. ABC Company needs to determine the approximate amount of inventory at theend of each month without taking a physical inventory of merchandise. From the following information, you are required to determine the cost of the July 31The cost of the July 31inventory is determined as follows:Ending inventory of July 31 at retail selling price=$640,000-$375,000=$364,800 Ratio of cost to selling retail price=$435,200/$640,000=68%Ending inventory of July 31 at cost=$364,000×68%=$248,064。
会计英语习题集
1, How do we recorded a liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers?A, recorded as a debit to an unearned revenue accountB, recorded as a debit to a prepaid expense accountC, recorded as a credit to an unearned revenue accountD, recorded as a credit to a prepaid expense account.c3, during the month of February, Hal Company had cash receipt of 6500 and cash disbursement of 8000. The February 28 cash balance was 4300. What was the beginning (February 1) cash balance?A, 1500B, 2800C, 5800D, 7300X+6500-8000=4300X=5800 C4, Aimes opened a new business by investing the following assets: cash 4000; land 20000; building 80000. Also, the business will assume responsibility for a note payable of 32000. Aimes signed the note as part of his payment for the land and building. Which journal entry should be used on the books of the new business to record the investment by Aimes?A, Dr. Asserts 104000Cr. Capital 104000B, Dr. Asserts 104000Cr. Liability 32000Capital 72000C, Dr. Cash 4000Land 20000Building 80000Cr. Capital 104000D, Dr. Cash 4000Land 20000Building 80000Cr. Notes payable 32000Capital 72000D5, the following transaction occurred during July:--received 700 cash for photography service provided to customer during the month --received 1500 cash from Barbara, the owner of the business--received 800 from a customer in partial payment of his account receivable which arose as a result of sales during June--rendered photography services to a customer on credit. 500--borrowed 2500 from bank--received 1000 from a customer in payment for services to be performed next yearWhat was the amount of revenue for July?A, 1200B, 3000C, 5500D, 7000700 yes, 500 yes 700+500=1200 A6, How do we record an assets created by a payment for economic benefits that does not expire until some later time?A, recorded as a debit to an unearned revenue accountB, recorded as a debit to a prepaid expense accountC, recorded as a credit to an unearned revenue accountD, recorded as a credit to a prepaid expense accountB7, On September 30, accounts payable had a normal balance of 2300. During September, the account was credited for a total of 5400 and debited for a total 3900. What was the balance in the accounts payable at the beginning of September? A, A 0 balanceB, An 800 debit balanceC, An 800 credit balanceD, A 3800 debit balanceC10, on April 30, Hal Company had an accounts receivable balance of 37000. During the month of May, total credits to accounts receivable were 24000, which resulted from customer payments. The May 31 accounts receivable balance was 32000. What was the amount of credit sales during May?A, 19000B, 29000C, 45000D, 5600037000+x-24000=32000 x=19000 AA company purchased 1800 of merchandise on December 5, term 2/10, n/15. On December 7, 200 worth of merchandise was returned by A company to the supplier. On December 15, A paid the balance in full. What was the amount that A company paid?A, 200B, 1568C, 1600D, 1800BCarrie Ford opened a new accounting practice called Carrie Ford, Public accountant, and completed these transaction during March 2011Mar. 1 Invested 25000 in cash and office equipment that had a fair value (公允价值) of 6000.1 Prepaid 1800 cash for three month’s rent for an office.3 Made credit purchase of office equipment for 3000 and office supplies for 600.5 Completed work for a client and immediately received 500 cash9 Completed a 2000 project for a client, who will pay within 30 days11 Paid the account payable created on March 315 Paid 1500 cash for the annual premium on an insurance policy.20 Received 1600 as partial payment for the work completed on Match 923 Completed work for another client for 660 on credit27 Carrie Ford withdrew 1800 cash from the business to pay some personal expense30 Purchased 200 of additional office supplies on credit31 Paid 175 for the month’s utility bill.(1)Prepare journal entries to record the transaction(2)Finish the adjusting entries for the transaction above.(1) Dr. cash 25000Office equipment 6000Cr. Capital 31000Dr. prepaid rent 1800Cr. Cash 1800Dr. office equipment 3000Office supplies 600Cr. Accounts receivable 3600Dr. cash 500Cr. Service revenue 500Dr. accounts receivable 2000Cr. Service revenue 2000Dr. prepaid insurance 1500Cr. Cash 1500Dr. cash 1600Cr. Accounts receivable 1600Dr. accounts receivable 660Cr. Service revenue 660Dr. drawing 1800Cr. Cash 1800Dr. Office supplies 200Cr. Accounts payable 200Dr. utilities expense 175Cr. Cash 175(2) Adjusting entriesDr. Rent expense 600Cr. Prepaid rent 600Dr. Insurance expense 125Cr. Prepaid insurance 125For each of the following incorrect entries, journal entries are incorrect and posting, please journalize the appropriate entries to correct errors.A, the purchase of office supplies on credit for 1800 was recorded asDr. office supplies 1800Cr. Cash 1800B, a credit customer paid her account in full: 4500. This was recorded asDr. cash 4500Cr. Revenue 4500C, the owner withdrew cash of 1500. This was recorded asDr. salaries expense 1500Cr. Cash 1500D, work was performed for a customer today and cash of 750 was received. This was recorded asDr. cash 750Cr. Accounts receivable 750A Dr. cash 1800Cr. Accounts payable 1800B Dr. Revenue 4500Cr. Accounts receivable 4500C Dr. drawing 1500Cr. Salaries expense 1500D. Dr. accounts receivable 750Cr. Service revenue 7501, which financial statement shows whether the business earned a profit and also lists the types and amounts of the revenues and expenses?A, balance sheetB, statement of owner’ equityC, cash flow statementD, income statementD2, which of the following is another term（把…叫做）for owner’s equity?A, net incomeB, expensesC, net assetsD, revenuesC3, which of the following is ture of the accounting entity principle?A, requires that sole proprietors have unlimited liabilityB, requires that partnership income be taxed at the partnership levelC, means that business records should be k ept separately from the owner’s financial recordsD, requires that partnerships have written agreement.C4, which is the accounting guideline that requires financial statement information to be supported by evidence other than someone’s imagination or opi nion?A, accounting entity principleB, monetary unit principleC, going-concern principleD, objectivity principleD5, if the liability of a business increased 12000 during a period of time and owner’s equity in the business decreased 2000 during the same period, the assets of the business must have increased or decreased by how much?A, decreased 10000B, decreased 14000C, increased 10000D, increased 14000B6, a purchase of office equipment for cash of 130 was recorded as an addition to office equipment and an addition to liabilities. By what amounts are the accounts under- or overstated as a result of this error? (“understated” means too low, and “overstated” means to high.)A, assets, understated 130; liabilities, overstated 130B, office equipment, understated 260; liabilities, overstated 130C, office equipment, overstated 130; liabilities, overstated 130D, assets, overstated 130; liabilities, overstated 130DFor each of the following items, state whether the item would be shown on the statement of cash flow as an operating, investing, financing activity.A, payment of account payable operatingB, issuance of preferred stock for cash financingC, payment of cash divident financingD, sale of long-term investment investingE, collection of account receivable operatingF, issuance of long-term note payable to borrow cash financingG, purchase of long-term investment investingH, payment of wages to employees operatingI, cash sale of land investingWhich of the accounting assumption implies that the economic activities of an enterprise can be divided into artificial time period of equal length.A, accounting period assumptionB, go-concern assumptionC, accounting entity assumptionD, monetary assumptionAIf an accountant forgot to record depreciation on office equipment at the end of an accounting period, which of the following would be true regarding the statement prepared at that time?A, assets are overstated and owner’s equity is understatedB, the assets and owner’ equ ity are both understatedC, the assets are overstated, net income is understated, and owner’s equity isoverstatedD, the assets, net income and owner’s equity are overstated.DWhat transaction causes a debit to sales returns and allowances and a credit to accounts receivable?A, There is no such entry; it should be a credit to sales returns and allowances and a debit to account receivableB, This transaction is recorded by the purchaser and recognizes the return of merchandiseC, When a customer returns merchandise to the seller, this entry is recorded by the seller.D, There is no such entry; it should be a debit to sales returns and allowances and a credit to account payableCThe office supplies account shows a beginning balance of 600 and an ending balance of 400. If office supplies expense for the year is 3100, what amount of office supplies was purchased during the period?A, 2700B, 2900C, 3300D, 3500X+600-400=3100 x=2900 BHCF a financial company, borrows Able business 2400 at 5% for 3 months on December 1 2001. What should HCF’s adjusting entry on December 31, 2001 include? A, A debit to interest earned for 10B, A credit to interest payable for 10C, A credit to interest earned for 10D, A debit to cash for 10BDuring the closing process, all temporary debit and credit balance accounts are closed, which of the following accounts would be closed by debitedA, sales discountB, rent expenseC, sales revenueD, accumulated depreciationCF Corporation, engaged in a service business, completed the following selected transactions during the period(1) added additional investment, receiving cash(2) purchased supplies on account(3) returned defective on account(4) charged customers for service sold on account(5) paid salary expense(6) paid a creditor on account(7) paid cash for the owner’s personal use Transactions:Assets liabilities owner’s equityA business that is owned and controlled by one person is considered to be a sole trader. This form of business ownership is simple and generally inexpensive.一人拥有和控制的企业被称为个人独资企业。
会计英语
一．会计原则书P4练习一(a)The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.答案：Time Period Principle会计分期(b)Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effects of inflation.答案：Monetary Unit Principle货币计量(c)Walgreen Co. reports current and noncurrent classifications in its balance sheet. 答案：Going Concern 持续经营(d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.答案：Economic Entity（Business Entity）会计主体练习二(a)Norfolk Southern Corporation reports revenue in its incomestatement when it is earned instead of when the cash is collected. 答案：Revenue Recognition(b) Yahoo, Inc. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue.答案：Matching(c) Oracle Corporation reports information about pending lawsuits in the notes to its financial statements.答案：Full Disclosure(d) Eastman Kodak Company reports land on its balance sheet at the amount paid to acquire it, even though the estimated fair market value is greater.答案：Historical Cost练习三(a) Zip’s Farms, Inc. reports agricultural crops on its balance sheet at market value.Objectivity(b) Crimson Tide Corporation does not accrue a contingent lawsuit gain of $650,000.Conservatism(c) Sun Devil Corporation expenses the cost of wastebaskets in the year they are acquired.Materiality练习四a. Chris Clark deposits $25,000 in a bank account for NetSolutions. Assets Cash 25000Owner’s equity Chris Clark, Capital 25,000b. NetSolutions buys land for $20,000.Assets cash 20000Assets land 20000c. NetSolutions buys supplies for $1,350, agreeing to pay the supplier in the near future.Assets supplies 1350Liabilities Accounts Payable 1,350d. NetSolutions earns fees of $7,500, receiving cash.Assets cash 7500Owner’s equity Fees Earned 7500e. NetSolutions paid: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275.Assets cash 3650Owner’s equity Expenses 3650f. NetSolutions pays $950 to creditors on account.Assets cash 950Liabilities Accounts Payable 950g. At the end of the month, the cost of supplies on hand is $550. Assets Supplies 550Owner’s equity Supplies Expense 550h. Chris Clark withdraws $2,000 in cash.Assets cash 2000Owner’s equity Chris Clark, Drawing 2000二．Errors in a Trial Balance❝Trial balance preparation errorsColumn incorrectly added；Amount incorrectly entered on trial balance；Balance entered in wrong column or omitted❝Account balance errorsBalance incorrectly computed；Balance entered in wrong column of account❝Posting errorsWrong amount posted to an account；Debit posted as Credit, or viceTransfer Vouchers转账凭证负债比率书P54四．权责发生制accrual basis和收付实现制cash basis P76Example 3-1Example 3-2书P119 Net sales=Sales Revenue - Sales Returns and Sales Discounts五．1.书P121 Purchases Returns & AllowancesExample: goods costing $300 returned to PW Audio Supply Ltd.Accounts payable 300Merchandise inventory 3002.商业折扣trade discount• Example: Purchase of inventory on account (list price quoted is $5,000 and trade discount given of 10%)Merchandise Inventory 4 500Accounts Payable 4 500To record purchase of inventory on account with a trade discount of $500 3.现金折扣purchase discountExample: The buyer settles account outstanding of $3,500 and receives discount of $70.○1Gross method总额法Accounts Payable 3500Cash 3430Merchandise Inventory 70○2Net method净额法Accounts payablePurchase discounts lostCash简答What costs are included in the cost of the merchandise?答：The cost of merchandise usually includes the invoice price plus any directly identifiable transportation charges less any discounts.六．买卖方书P123 P123 Example 4-1example, A sells $4000 merchandise to B on account FOB shipping point.A pays transportation cost $250.❝Buyer:Merchandise Inventory 4250(B) Accounts Payable 4250❝Seller:Accounts Receivable 4000(A) Sales 4000Accounts Receivable 250Cash 250Example:PW Audio Supply Ltd made cash sale of $2,200. Cost of Goods sold $1,400✓two entries required✓Sale of the goods for $2,200✓Cost of Goods Sold $1,400Cash 2 200Sales 2 200(To record cash sales)Cost of Goods Sold 1 400Merchandise Inventory 1 400(To record merchandise sold for cash)Example: PW Audio Supply Ltd. Records credit for goods returned by customer• two entries required:• Sales Return at Selling Price $300• Return (increase) to Inventory at cost price $140Sales Returns and Allowances 300Accounts Receivable 300( Credit Memo No.×××.)Merchandise Inventory 140Cost of Goods Sold 140(Cost of merchandise returned, Credit Memo No.×××)Example: Sauk Stereo pays PW Audio Supply and receives a discount Cash 3 430Sales Discounts 70Accounts Receivable 3 500(To record collection within 2/7,n/30 discount period from Sauk Stereo ) Net Sales(净销售额)=Sales-Sales returns and allowances-Sales discounts Gross profit（毛利，总利润）=Net sales – Cost of goods soldNet income/Net loss(净收益/净亏损)= Gross profit –Operating expenses P128 Example 4-3选择题什么是现金cashcurrency and coins,money orders (邮政汇票) , bank drafts (银行汇票),demand deposits (活期存款), cashiers’ checks, personal checkspetty cash(备用金), change funds, and most saving deposits(储蓄存款). 现金等价物Cash equivalentssuch as treasury bills, commercial paper, and money market funds.3 Common ledger accounts : Cash on hand, cash in bank, petty cash. 【选择题】Internal control 书P163•protect assets against theft or misuse•promote operational efficiencies•encourage adherence to prescribed managerial policies•ensure accounting data is accurate and reliable七．建立备用金petty cash P165 Example5-1Example1：At the end of August, the petty cash receipts indicated expenditures for the following items: office supplies, $28, postage (office supplies), $22; store supplies, $35, and miscellaneous administrative items, $3.○1To establish a petty cash fundAug. 1 Petty Cash 100.00Cash 100.00○2To replenish the petty cash fund.Aug. 31 Office Supplies 50.00Store Supplies 35.00Misc. Admin. Expense 3.00Cash 88.00【example2】：Allied Plumbing Supply decides to establish a petty cash fund of $150 on January 1. The petty cash the fund reaches a balance of $20 or less.On February 10, the fund is replenished and the following receipts for items paid out of the petty cash fund are recorded: office supplies, $34; store supplies, $12; a minor repair on office equipment, $52; and the cost paid to Federal Express to send an urgent letter, $38.❝Entry to establish the petty cash fund:Jan. 1 Petty Cash (150)Cash (150)❝Entry to replenish the petty cash fund:Feb. 10 O ffice Supplies (34)Postage Expense (38)Store Supplies (12)Repairs Expense (52)Cash (136)考点1：Three common account titles used to record this expense are (1) uncollectible accounts expense,未能收回账款(2) bad debts expense, 坏账(3) doubtful accounts expense. 疑账考点2：书P172Two basic ways to record uncollectible：Allowance method 备抵法；Direct write-off method 直接冲销法书P203Lnventory costing methods：specific identification个别计价法；average cost平均法；FIFO先进先出法first in first out；LIFO后进先出法Machine #1: Original cost, $50,000; accumulated depreciation, $35,000; sold for $18,000Entry:Cash…………………………………….18,000Accumulated Depreciation—Machinery 35,000Machinery………………………50,000Gain on Disposal of Fixed Assets 3,000Machine #2: Original cost, $75,000; accumulated depreciation, $65,000; sold for $4,000Entry:Cash…………………………………….4,000 Accumulated Depreciation—Machinery 65,000Loss on Disposal of Fixed Assets……..6,000Machinery……………………..75,000【选择】导致存货价值变更：physical deterjoration；change in consumer tastes；technological obsolescenceLnterest=principal*stated value*time选择题T ypes of bonds：Common types found in practice:Secured bonds （有担保债券）Unsecured (debenture) bonds （无担保债券）T erm bonds（到期还本债券）,Serial bonds (分期还本债券)Callable bonds (可赎回债券)Convertible bonds（可转换债券）Registered bonds (记名债券)bearer or coupon bonds.（不记名债券）Illustration Three year bonds are issued at face value of $100,000 on Jan. 1, 2007, a stated interest rate of 8%, and market rate of 8%.Illustration Stated rate = 8%. Market rate = 8%.Journal entries for 2007:1/1/07 Cash 100,000Bonds payable 100,00012/31/07 Interest expense 8,000 Cash 8,000Illustration Three year bonds are issued at face value of $100,000 on Jan. 1, 2007, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 10%.Market Rate 10% (PV for 3 periods at 10%)Illustration Three year bonds are issued at face value of $100,000 on Jan. 1, 2007, a stated interest rate of 8%, and market rate of 10%. Illustration Stated rate = 8%. Market rate = 10%.Journal entries for 2007:1/1/07 Cash 95,027Discount on bonds payable 4,973Bonds payable 100,00012/31/07 Interest expense 9,503Discount on bonds payable 1,503Cash 8,000Illustration Three year bonds are issued at face value of $100,000 on Jan. 1, 2007, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 6%.Market Rate 6% (PV for 3 periods at 6%)Illustration Three year bonds are issued at face value of $100,000 on Jan. 1, 2007, a stated interest rate of 8%, and market rate of 6%.Illustration Stated rate = 8%. Market rate = 6%.Journal entries for 2007:1/1/07 Cash 105,346Premium on bonds payable 5,346Bonds payable 100,00012/31/07 Interest expense 6,321Premium on bonds payable 1,679Cash 8,000Illustration Three year 8% bonds of $100,000 issued on Jan. 1, 2007, are recalled at 105 on Dec. 31, 2008. Expenses of recall are $2,000. Market interest on issue date was 8%.Journal entry at Dec. 31, 2007:Bonds payable 100,000Loss on extinguishment 8,817Cash 107,000Discount on bonds payable 1,817Reacquisition price = $105,000 + 2,000 = $107,000Dividends股利：Cash dividends现金股利；stock dividends股票股利；property dividends 1.Cash DividendsOn December 1, the Board of directors of Barns Inc.declared a $0.25 per-share dividend on its common stock to shareholders of record on December 11, payable on January 2. Barns has 25,000 shares of stock authorized, 10,000 shares issued, and 8,000 shares outstanding.Dec. 1 Cash Dividends 2 000 00Cash Dividends Payable 2 000 00Jan. 2 Cash Dividends Payable 42 500 00Cash 42 500 00Stock Splits股票分割：For example, if a company has 100,000 shares of $10 par value common stock outstanding, a 2-for-1 stock split would result in the issuance of $100,000 more shares and an accompanying reduction of par value to $5 per share.Common Stock, $10 par,10,000 shares outstanding $100,000 Paid-in Capital in Excess of Par--Common Stock 80,000 Retained Earnings 160,000Market price $32 per share Dec. 15 Stock dividends(10%*10,000*$32) 32 000 00Stock dividends distributable (10%*10,000*$10) 10 000 00 Paid-in Capital in Excess ofPar—Common Stock 22000 00Declared a 10% stock dividend.Jan. 10 Stock dividends distributable 10000 00Common Stock 10000 00Distributed a 10% stock dividend.Jan. 10 Stock dividends(50%*10,000*$10) 50000 00Stock dividends distributable 50000 00Declared a 50% stock dividend.Jan. 10 Stock dividends distributable 50000 00Common Stock 50000 00。
会计英语489章练习题
Chapter 4 statement of cash flow1.The net income of the ZY Company for 1999 was $260000. Additional d ata available relative to activities for the year are given below:A. Depreciation expenses for the year, $90000;B. gains on sale of machinery used in operations was $2400;C. Accounts receivable increased by $2000;D. Accounts payable increased by $8400;E. Patent amortization for the year was $14800;RequiredPrepare the cash flows from operating activities section of a statement of cash flows under the indirect method.Cash flows from operating activities:Net income …………………………………………………………… $260000Adjustment for non cash revenue and expenses:expenses not requiring cashAdd depreciation 90000Patent amortization 14800cash change not from operationsdeduct gains on sale of machinery 2400 Current liabilities changes:Deduct Accounts receivable increase 2000Add Accounts payable increase 8400Cash flows from operating activities $3688001.Purchased material ,$200, and equipment, $3100，paid cash.2.Paid cash to acquire land, $ 270003.Performed service for a customer and received cash $160004.Issued common stock and received $39000 cash5.Prepaid insurance $1200 for next 12months6.Paid cash for employee salary $ 24007.Acquire a long-term loan from bank $400008.Paid $5000 for cash dividend10.Gains on sale of equipment of $3000Calculate cash flow from operations, financing and investing.12200,-27100,74000Chapter 8 accounts receivable1.T/FAn account receivable that has been determined to be uncollectible is still an asset.(F)We should debit bad debts expense and credit allowance for doubtful accounts for write off bad debts.(F)Allowance for doubtful accounts is contra-asset account that offsets account receivable.(T)Gross accounts receivable appears on the balance sheet.(F)When we write off a worthless receivables, the net accountsreceivable is less than before.(F)2.When we use the allowance method to record bad debts,there are three methods to estimate the amount of bad debtsPercentage of total accounts receivable outstanding(应收账款余额百分比法)Aging method（账龄分析法）Percentage-of-sales method(销货百分比法)（一）余额百分比法这是按照期末应收账款余额的一定百分比估计坏账损失的方法。
会计英语练习题及答案
《会计英语》练习题及答案一、单选题1. Which of the following statements about accounting concepts or assumptions are correct? 1） The money measurement assumption is that items in accounts are initially measured at their historical cost.2）In order to achieve comparability it may sometimes be necessary to override the prudence concept.3） To facilitate comparisons between different entities it is helpful if accounting policies and changes in them are disclosed.4）To comply with the law, the legal form of a transaction must always be reflected in financial statements.A 1 and 3B 1 and 4C 3 onlyD 2 and 32.Johnny had receivables of $5 500 at the start of 2010. During the year to 31 Dec 2010he makes credit sales of $55 000 and receives cash of $46 500 from credit customers. What is the balance on the accounts receivables at 31 Dec 2010?A.$8 500 DrB.$8 500 CrC.$14 000 DrD.$14 000 Cr3.Should dividends paid appear on the face of a company’s cash flow statement?A. Y esB. NoC. Not sureD. Either4.Which of the following inventory valuation methods is likely to lead to the highestfigure for closing inventory at a time when prices are dropping?A. Weighted Average costB. First in first out (FIFO)C. Last in first out (LIFO)D. Unit cost5. Which of following items may appear as non-current assets in a company’s the statement of financial position?(1) plant, equipment, and property(2) company car(3) €4000 cash(4) €1000 chequeA. (1), (3)B. (1), (2)C. (2), (3)D. (2), (4)6. Which of the following items may appear as current liabilities in a company’s balance sheet?(1) investment in subsidiary(2) Loan matured within one year.(3) income tax accrued untill year end.(4) Preference dividend accruedA (1), (2) and (3)B (1), (2) and (4)C (1), (3) and (4)D (2), (3) and (4)7. The trial balance totals of Gamma at 30 September 2010 are:Debit $992,640Credit $1,026,480Which TWO of the following possible errors could, when corrected, cause the trial balance to agree?1. An item in the cash book $6,160 for payment of rent has not been entered in the rent payable account.2. The balance on the motor expenses account $27,680 has incorrectly been listed in the trial balance as a credit.3. $6,160 proceeds of sale of a motor vehicle has been posted to the debit of motor vehicles asset account.4. The balance of $21,520 on the rent receivable account has been omitted from the trial balance.A 1 and 2B 2 and 3C 2 and 4D 3 and 48. Listed below are some characteristics of financial information.(1) True(2) Prudence(3) Completeness(4) CorrectWhich of these characteristics contribute to reliability?A (1), (3) and (4) onlyB (1), (2) and (4) onlyC (1), (2) and (3) onlyD (2), (3) and (4) only9. Which of the following statements are correct?(1) to be prudent, company charge depreciation annually on the fixed asset(2) substance over form means that the commercial effect of a transaction must a lways be shown in the financial statements even if this differs from legal form(3) in order to achieve the comparable, items should be treated in the same way year on yearA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only10. which of the following about accruals concept are correct?(1) all financial statements are based on the accruals concept(2) the underlying theory of accruals concept and matching concept are same(3) accruals concept deals with any figure that incurred in the pe riod irrelevant with it’s paid or notA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only二、翻译题1、将下列分录翻译成英文1.借：固定资产清理 30 000累计折旧 10 000贷：固定资产 40 0002．借：应付票据 40 000贷：银行存款 40 0002、将下列词组按要求翻译（中翻英，英翻中）(1) 零用资金(2) 本票(3) 试算平衡(4) 不动产、厂房和设备(5) Notes and coins(6) money order(7) general ledger(8) direct debt(9) 报销(10) revenue and gains三、业务题Johnny set up a business and in the first a few days of trading the following transactions occurred (ignore all the tax):1)He invests $80 000 of his money in his business bank account2)He then buys goods from Isabel, a supplier for $4 000 and pays by cheque, the goods isdelivered right after the payment3) A sale is made for $3 000 –the customer pays by cheque4)Johnny makes another sale for $2 000 and the customer promises to pay in the future5)He then buys goods from another supplier, Kamen, for $2 000 on credit, goods isdelivered on time6)He pays a telephone bill of $800 by cheque7)The credit customer pays the balance on his account8)He returened some faulty goods to his supplier Kamen, which worth $400.9)Bank interest of $70 is received10)A cheque customer returned $400 goods to him for a refund参考答案1、单选题1-5 CCACB 6-10 DCABA2、翻译题1）中翻英1.Dr disposal of fixed assetDepreciationCr fixed asset2．Dr notes payableCr bank4、业务题1)Dr CashCr capital2)Dr finished goodsCr Cash3)Dr CashCr sales revenue4)Dr accounts receivableCr sales revenue5)Dr finished goodsCr accounts receivable6)Dr administrative expenseCr Cash7)Dr CashCr accounts receivable8)Dr CashCr finished goods9)Dr CashCr financial expense10)Dr sales revenueCr Cash下面是经典歌词100句，朋友们可以享受下，不需要的朋友可以下载后编辑删除！！谢谢！！林夕经典歌词1、若只是喜欢，何必夸张成爱。
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专业英语习题一、单项选择题1. Which of the following are reported in the stockholders’ equity section of the balance sheet? ( )a.revenues and expensesb.dividends and retained earningsmon stock and dividendsmon stock and retained earnings2. Current assets are presented in the balance sheet in order of ( )a.dollar amountsb.liquidityc.solvencyd.the alphabet3. Current liabilities include all of the following except ( )a.accrued wages payableb.advance received from customerc.current portion of long-term loand.prepaid expenses4. Credit terms of 2/10 n/30 indicate: ( )a. a 2% discount if 10 items are purchasedb.no payment is required until the 31st day after the invoice datec. a 10% discount if 2 items are purchased.d. a 2% discount for amounts paid within 10 days of the invoice and the remaining balancedue within 30 days5. Which statement regarding the inventory turnover ratio is Not True? ( )a.The ratio measures the average rate of speed inventories move through and out ofcompany.b.Inventory turnover=Average Inventory COGSc.Inventory turnover figures vary considerably from industry to industry.d. A low inventory turnover can result from an overextended inventory position or frominadequate sales volume.6. Which statement regarding the liabilities and owners’ equity section of balance sheetis False? ( )a.Payment of Dividend Payable eliminates both the assets and the owners’ equityb.Liabilities are debts or obligations that must be discharged in money or servicesin the futurec.Owners’ equity is a residual claim to the remaining assets after discharge of debts.d.Balance sheet of corporations should separate Capital Stock and Retained Earnings.7. What is the difference between the quick and current ratio? ( )a.The quick ratio deals with the company’s ability to pay its liabilities whereasthe current ratio does notb.The current ratio is a more stringent(严格的) test of liquidity than the quick ratio.c.The quick ratio excludes inventory, which the current ratio includes for calculationpurposes.d.Management primarily uses the current ratio whereas investors and analysts are theprimary users of the quick ratio.8. What of the following is Not an example of apportionment of recorded costs? ( )a.Depreciation of fixed assetsb.Reallocation of receipts in advance.c.Expiration of insurance premium.d.Consume of supplies.9. For its most recent year, a corporation had beginning and ending accounts receivable balances of $50,000 and $60,000, respectively. The year's sales on account were $800,000. What was the amount of cash received from customers during the year? ( )a.$790,000b.$820,000c.$810,000d.$800,00010. Sales revenue $200,000, beginning inventory $30,000, inventory purchased $100,000 and inventory sold $90,000. It is true that ( )a.goods available for sale (GAFS) equals $200,000b.gross profit equals $110,000c.ending inventory equals $30,000d.cost of goods sold (COGS) equals $40,00011. Users of financial information may be classified as internal or external. Which following statement is true regarding financial information users? ( )a.External users evaluate the performance of a company's management using managementaccounting reports.b.Financial accounting provides information to managers and external users, such aspotential investors.c.Many laws require managerial accounting reports be reported to various levels ofthe government.d.Management accounting provides information to managers and external users, such aspotential investors.12. What does the term ‘net realizable value’ mean regarding Accounts Receivable? ( ) realizable value is the balance in the Accounts Receivable account as of a givendate. realizable value is what a company’s Accounts Receivable accounts will bringif they are sold to a third party.c.Accounts Receivable less Allowance for Uncollectible Accounts will equal the netrealizable value of Accounts Receivable realizable value is the balance in the Allowance for Uncollectible Accounts asof a given date.13. Which of the following statements about a trail balance is incorrect? ( )a.It’s primary purpose is to prove the mathematical equality of debits and creditsafter postingb.It uncovers certain errors in the journalizing and postingc.It is useful in the preparation of financial statementsd.It proves that all transactions have been recorded.14. In the closing process all of the revenues and expenses account balances are transferred to the ( )a.capital accountb.income summary accountc.retained earnings accountd.dividends account15. The post-closing trial balance consists only of ( )a.Asset and liability accountsb.temporary accountsc.revenue and expense accountsd.permanent accounts16. Which of the following statements is True? ( D )a.The credit side of an account implies something favorable.b.For a given account, total debits must always equal total credits.c.Transactions are initially recorded in a ledger accountd.Journalizing means entering the economic effect of each transaction in a journalin chronological order under the double-entry system.17. Financial statements can be prepared from ( B )a.the trial balanceb.the adjusted trial balancec.the journald.the ledger18. Which of the following statements is False? ( A )a.After a bank reconciliation has been completed, the company must make journal entriesto adjust for all outstanding checks.b. A bank reconciliation for the moth of September will begin with “balance per book”and “balance per bank statement” at September 30.c. A check that is outstanding for two consecutive months should be included in bothmonths’ bank reconciliations.d. A credit memorandum on a bank statement indicates an addition to the bank balance.19. Voucher Register is ( B )a. A record of vouchers that have been paidb.The journal that contains a record of each approved voucherc. A list of debtsd. A document that authorizes payment.20. Estimated bad debts as presented on the income statement is ( C )a.Allowance for uncollectible accountsb.Creditc.Uncollectible accounts expensed.Revenue21. The GAAP assets that an item should be included in a financial statement if its omissionor misstatement would tend to mislead the users of financial statements is known as ( C )a.the cost-benefit criterionb.the going concern conventionc.the materiality conventiond.reliability22. Accounts receivable, notes receivable, and interest receivable are all classified as__________ on the balance sheet. ( A )a.assetsb.liabilitiesc.owners' equityd.receivables23. Which book or document is a list of all accounts and their balances? (B)a.the journalb.the trial balancec.the ledgerd.the chart of accounts二、多项选择题1. Three major fields of accounting activity are: ( )a.social accountingb.private accountingc.public accountingernmental accounting2. The three forms of business organizations are: ( )a.Corporationb.Enterprise.c.Single proprietorshipd.Partnership3. Specialized fields of accounting include: ( )a.cost accountingb.tax accountingernmental and not-for-profit accountingd.HR accountinge.international accounting4. The interested users of financial information include: ( )a.Banks and other creditorsb.Managersc.Stockholdersd.Investment advisorsernmental agencies5. Long-term assets can be further classified into: ( )a.long-term investmentsb.fixed assetsc.intangible assets.d.capital stock6. The necessary data for preparing the balance sheet and income statement are accumulated in major categories of ledger accounts including: ( )a.assets accountsb.liabilities accountsc.owners’ equity accountsd.revenues accountse.expenses accounts7. Adjusting entries made to align revenue and expense with the appropriate periods consist of: ( )a.Apportioning recorded cost to periods benefited.b.Apportioning recorded revenue to periods in which it is earnedc.Accruing unrecorded expensesd.Accruing unrecorded revenuee.Merchandise inventory adjustment8. Assume ending inventory is overstated because some inventory is accidentally counted twice. Which of the statements below regarding this situation is true? ( ) income for this accounting period will be overstated.b.COGS for this accounting period will be overstated income in the next accounting period will be understated.d.Ending Retained Earnings in the next accounting period will be correct.9. Which statement below regarding "closing procedures" is correct? ( )a.Closing procedures only apply to temporary accounts.b.Closing the books means to prepare the accounts for next period's transactions.c.The closing process only applies to permanent accounts.d.Eventually closing entries transfer temporary account balances to Retained Earnings.三、判断题1.The normal balance of an account appears on the side for recording increases ( )2.It is customary to include any amounts received from customers but has not yet earnedas revenue in current liability. ( )3.Financial position of an organization can best be determined by referring to the incomestatement. ( )4.Managerial accounting is governed by GAAP. ( )5.Current assets are presented in the order of liquidity or convertibility into cash;while current liabilities are listed in the order that they come due. ( )6.Closing procedures only apply to permanent accounts. ( ) income or net loss in the income statement is reflected in the owners’ equity sectionon the balance sheet at the end of the accounting period. ( )8.Retained earning represents exactly what the term implies: that portion of net incomethe company has retained. ( )9.Business firms whose accounting year ends on December 31 are said to be on acalendar-year basis. ( )10.The income statement subtracts assets from revenues to determine income or loss fora period time. ( )11.Posting transfers journal entries to ledger accounts. ( )12.When interim financial statement are being prepared, usually adjustments are made onlyon the worksheet and will not be recorded in the journal and posted to the ledger account..( )13.In order to permit normal recording of subsequent payments or receipts, it is desirableto make reversing entries at the end of the accounting period. ( )14.The entry to write off a specific uncollectible account has no effect on net realizableAccount Receivable account. ( )15.In the case of corporation, the Income Summary account will be closed to the RetainedEarnings account, which is kept separately from the Capital Stock account. ( )16.COGS =Beginning inventory－Net purchase－Ending inventory ( )17.In order to permit normal recording of subsequent payment or receipts, it is desirableto make reversing entries at the beginning of next accounting period. ( )18.The entry to write off a specific uncollectible account has no effect on net incomeand on total assets. ( )19.The terms debit and credit are used to describe the right-hand and left hand sides ofany “two-column” account. ( )20.Business firms whose accounting year ends on December 31 are said to be on a fiscalyear basis. ( )21.All adjusting entries will affect one balance sheet account and one income statementaccount. ( )22.Expense accounts are closed by debiting each expense account and crediting RetainedEarnings ( )23.Closing entries produce a zero balance in revenue accounts, asset accounts and dividendaccounts. ( )24.The adjusted trial balance contains all of the data needed for preparation of the incomestatement, retained earnings statement and the balance sheet. ( )25.The balance sheet presents a company’s assets, liabilities and stockholders equityat a specific point in time. ( )26.Posting transfers ledger transaction data to journal. ( )27.The presentation of the owners’ equity section is same for three types of businessorganization. ( )四、业务题1.The night manager of Majestic Limousine Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2001. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the2.An inexperienced accountant for Fowler Company prepared the following income statementPrepare a revised income statement in accordance with generally accepted accounting principles.3.The following accounts show the first six transactions of the Gutierez. Construction Company. Prepare a journal entry (including written explanation) for each transaction.Cash Vehicles4.Louis Dixon, a dentist, begin his own dental practice. The practice was organized asa sole proprietorship. The business transactions during September are listed below. Sept. 1 Dixon opened a bank account in the name of the business by depositing $50,000 cash., which he had saved over a number of years.Sept.10 Purchased a small office building for a total price of $182,400, of which $106,000 was applicable to the land and $76,400 to the building. A cash payment of $36,500 was made and a note payable was issued for the balance of the purchase price. Sept 15 Purchased a microcomputer system from Computer Stores, inc. for $4,680 cash. Sept.19 Purchased office furnishings, at a cost of $5,760. A cash down payment of $960 was made, the balance to be paid in future.Instructionprepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts:cash； office furnishings； notes payable； accounts receivable；land；accounts payable； building； Louis Dixon, Capital； Computer System《专业英语习题》参考答案一、单项选择题1.d2.b3.d4.d5.b6.a7.c8.b9.a 10.b11.b 12.c 13.d 14.b 15.d二、多项选择题1.bcd2.acd3.abcde4.abcde5.abc6.abcde7.abcde8.acd9.abd三、判断题1.T2.T3.F4.F5.T6.F7.T8.T9.T 10.F11.T 12.T 13.F 14. T 15.T 16.F 17.T 18.T 19.T 20.F21.F 22.F 23.F 24.T 25.T 26.F 27.F四、业务题1.2.3. Answer:4. Answers:Sept. 1 Dr. cash 50,000 Cr.Louis Dixon, capital50,000Sept.10 Dr. Land 106,000Building 76,400Cr. Cash36,500Note payable145,900Sept 15 Dr. computer system 4,680Cr. Cash4,680Sept.19 Dr. Office furnishing5,760Cr. Cash960Accounts payable4,80010。