财务会计英语 练习及答案ch02
财务英语试题及答案
财务英语试题及答案一、选择题（每题2分，共20分）1. What is the term for the process of recording, summarizing, and reporting financial transactions?A. BudgetingB. AccountingC. AuditingD. Forecasting答案：B2. Which of the following is a financial statement that showsa company's financial position at a specific point in time?A. Income StatementB. Balance SheetC. Cash Flow StatementD. Statement of Retained Earnings答案：B3. The difference between the purchase price and the fair market value of an asset is known as:A. DepreciationB. AmortizationC. GoodwillD. Capital Gains答案：C4. What is the term for the systematic allocation of the cost of a tangible asset over its useful life?A. DepreciationB. AmortizationC. AccrualD. Provision答案：A5. Which of the following is not a type of revenue recognition?A. Cash basisB. Accrual basisC. Installment methodD. All of the above答案：D6. The process of estimating the cost of completing a project is known as:A. BudgetingB. Cost estimationC. Project managementD. Cost accounting答案：B7. Which of the following is a non-current liability?A. Accounts payableB. Wages payableC. Long-term debtD. Income tax payable答案：C8. The term used to describe the process of adjusting the accounts at the end of an accounting period is:A. Closing the booksB. JournalizingC. PostingD. Adjusting entries答案：D9. What is the term for the financial statement that shows the changes in equity of a company over a period of time?A. Balance SheetB. Income StatementC. Statement of Changes in EquityD. Cash Flow Statement答案：C10. The process of verifying the accuracy of financial records is known as:A. BudgetingB. AuditingC. ForecastingD. Valuation答案：B二、填空题（每空1分，共10分）1. The __________ is the process of determining the value of an asset or liability.答案：valuation2. A __________ is a type of financial instrument that represents a creditor's claim on a company's assets.答案：bond3. The __________ is the difference between the cost of an asset and its depreciation.答案：book value4. __________ is the process of converting non-cash items into cash equivalents.答案：Liquidation5. A __________ is a financial statement that provides information about a company's cash inflows and outflows during a specific period.答案：Cash Flow Statement6. The __________ is the process of estimating the useful life of an asset.答案：depreciation schedule7. __________ is the practice of recording revenues and expenses when they are earned or incurred, not when cash is received or paid.答案：Accrual accounting8. __________ is the process of recording transactions in the order they are received.答案：Journalizing9. __________ is the practice of matching expenses with the revenues they helped to generate.答案：Matching principle10. A __________ is a document that provides evidence of a transaction.答案：voucher三、简答题（每题5分，共20分）1. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity.2. Explain the concept of "double-entry bookkeeping."答案：Double-entry bookkeeping is a system of recording financial transactions in which every entry to an account requires a corresponding and opposite entry to another account, ensuring that the total of debits equals the total of credits.3. What is the purpose of an income statement?答案：The purpose of an income statement is to summarize a company's revenues, expenses, and profits or losses over a specific period of time.4. Describe the role of a financial controller in anorganization.答案：A financial controller is responsible for overseeing the financial operations of an organization, including budgeting, financial reporting, and ensuring compliance with financial regulations and policies.四、论述题（每题15分，共30分）1. Discuss the importance of financial planning in business management.答案：Financial planning is crucial in business management as it helps in setting financial goals。
财务会计英语 练习及答案ch03
36.If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted, the assets at the end of the period will be understated.
ANS:TDIF:2OBJ:02
13.An adjusting entry would adjust an expense account so the expense is reported when incurred.
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14.An adjusting entry to accrue an incurred expense will affect total liabilities.
ANS:TDIF:2OBJ:02
15.The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.
ANS:TDIF:4OBJ:03
34.The balance in the prepaid insurance account before adjustment at the end of the year is $4,000. The amount of the journal entry required to record insurance expense will be $2,500 if the amount of unexpired insurance applicable to future periods is $1,500.
财务会计英文影印版第十版课后练习题含答案 (2)
财务会计英文影印版第十版课后练习题含答案简介本文档为《财务会计英文影印版第十版》的课后练习题及答案。
该书是一本介绍财务会计的教材，涵盖了财务会计理论和实践，适用于财务会计初学者。
练习题Chapter 11.1 Expln the difference between management accounting and financial accounting.1.2 Expln the purpose of financial statements.1.3 Expln the role of the audit committee.1.4 Expln the difference between the balance sheet and the income statement.Chapter 22.1 Expln the difference between revenue and profit.2.2 Expln the difference between cash basis accounting and accrual basis accounting.2.3 Expln the purpose of the statement of cash flows.Chapter 33.1 Expln the difference between current and non-current assets.3.2 Expln the difference between current and non-current liabilities.3.3 Expln the difference between financing activities and investing activities.Chapter 44.1 Expln the purpose of the double-entry accounting system.4.2 Expln the difference between debits and credits.4.3 Expln the purpose of the trial balance.Chapter 55.1 Expln the difference between the cost of goods sold and operating expenses.5.2 Expln the purpose of the income statement.5.3 Expln the difference between gross profit and net profit.答案Chapter 11.1 Management accounting is concerned with providing information for internal decision-making, while financial accounting is concerned with providing information to external users.1.2 The purpose of financial statements is to provide information about an entity’s financial performance, financial position, and cash flows.1.3 The audit committee is responsible for overseeing the financial reporting process and ensuring the integrity of financial statements.1.4 The balance sheet shows an entity’s financial position at a specific point in time, while the income statement shows an entity’s financial performance over a period of time.Chapter 22.1 Revenue represents the amounts earned from the sale of goods or services, while profit represents the difference between revenue and expenses.2.2 Cash basis accounting recognizes revenue and expenses when cash is received or pd, while accrual basis accounting recognizes revenue and expenses when they are earned or incurred, regardless of when cash is received or pd.2.3 The statement of cash flows is used to show the inflows and outflows of cash from operating, investing, and financing activities.Chapter 33.1 Current assets are expected to be converted to cash within one year, while non-current assets are expected to be held for more than one year.3.2 Current liabilities are expected to be pd within one year, while non-current liabilities are expected to be pd after one year.3.3 Financing activities involve obtning funds from external sources and paying dividends to shareholders, while investing activities involve acquiring and disposing of property, plant, and equipment, and other long-term investments.Chapter 44.1 The double-entry accounting system ensures that everytransaction is recorded in two accounts, with equal debits and credits,in order to mntn the equality of debits and credits in the accounting equation.4.2 Debits are used to record increases in assets and expenses and decreases in liabilities and equity, while credits are used to record increases in liabilities and equity and decreases in assets and expenses.4.3 The trial balance is a list of all the accounts in the ledgerwith their balances, used to ensure that the total of the debits equals the total of the credits.Chapter 55.1 The cost of goods sold represents the cost of the goods or services sold by a company, while operating expenses represent the other costs of running a business.5.2 The income statement shows a company’s revenue, expenses, andnet income or loss for a period of time.5.3 Gross profit represents revenue minus the cost of goods sold, while net profit represents gross profit minus operating expenses.结论本文档为《财务会计英文影印版第十版》课后练习题及答案，涵盖了财务会计的基本理论和实践。
财务会计英文影印版第十版课后练习题含答案
Financial and Managerial Accounting English Version Photocopy Tenth Edition Exercise Questions withAnswersIntroductionThe Financial and Managerial Accounting English Version Photocopy Tenth Edition Exercise Questions with Answers is a comprehensive guide for accounting students to practice and sharpen their skills infinancial and managerial accounting. This guide includes a wide range of exercise questions with detled answers to help students better understand complex accounting concepts. The guide is designed to be an essential study tool for accounting students and professionals who are preparing for certification exams or looking to improve their accounting skills.FeaturesThe guide contns the following features:prehensive coverage of financial and managerialaccounting topics.2.A wide range of exercise questions with detled answers.3.Clear and concise explanations of complex accountingconcepts.4.Easy-to-use format.5.All questions are organized by chapter and topic for easyreference.ContentsThe guide includes the following chapters:1.Accounting in Action2.The Recording Process3.Adjusting the Accountspleting the Accounting Cycle5.Accounting for Merchandising Operations6.Inventories7.Fraud, Internal Control, and Cash8.Accounting for Receivables9.Plant Assets, Natural Resources, and Intangible Assets10.Liabilities11.Corporations: Organization, Stock Transactions, andDividends12.Long-Term Liabilities: Bonds and Notes13.Investments and Fr Value Accounting14.Statement of Cash Flows15.Financial Statement Analysis16.Managerial Accounting Concepts and Principles17.Job Order Costing18.Process Costing19.Cost Behavior and Cost-Volume-Profit Analysis20.Budgeting21.Performance Evaluation Using Variances from StandardCosts22.Performance Evaluation for Decentralized Operations23.Differential Analysis and Product PricingEach chapter includes a series of exercise questions with answers.How to Use the GuideThe guide is designed to be an essential study tool for accounting students and professionals who are preparing for certification exams or looking to improve their accounting skills. Students can use the guide to practice and sharpen their accounting skills. The guide can be used in conjunction with textbooks, lectures, and other study materials. Students are encouraged to work through e ach chapter’s exercises in order, starting with the easier exercises and progressing to the more difficult exercises.ConclusionThe Financial and Managerial Accounting English Version Photocopy Tenth Edition Exercise Questions with Answers is a comprehensive guide for accounting students to practice and sharpen their skills infinancial and managerial accounting. This guide includes a wide range of exercise questions with detled answers to help students better understand complex accounting concepts. The guide is an essential study tool for accounting students and professionals who are preparing for certification exams or looking to improve their accounting skills.。
财务会计英语-练习及答案-ch01
2.An example of a business stakeholder is the federal government.
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3.A corporation is a business that is legally separate and distinct from its owners.
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38.The owner is only allowed to withdraw cash from the business.
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39.Receiving a bill or otherwise being notified that an amount is owed isnotrecorded until the amount is paid.
ANS:FDIF:3OBJ:05
21.The accounting equation can be expressed as Assets - Liabilities = Owner's Equity.
ANS:TDIF:2OBJ:06
22.The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.
ANS:FDIF:3OBJ:07
28.If total assets decreased by $40,000 during a specific period and owner's equity decreased by $45,000 during the same period, the period's change in total liabilities was an $85,000 increase.
财务英语 练习题(含答案)
Question1.What are the three basic types of accounts and two additional ones?2.Describe the effects of each of the following business transactions on assets, liabilities, and owners’ equity.(写出借方发生的变化及贷方发生的变化)A.bought equipment on creditAssets , debit for increaseLiabilities , credit for increaseB.Paid salaries to employeesLiabilities , debit for decreaseAssets , credit for decreaseC.Sold services for cashAssets , debit for increaseOwners’ equaties , credit for increaseD.Paid cash to a creditorLiabilities , debit for decreaseAssets , credit for decreaseE.Paid cash for furnitureAssets , debit for increaseAssets , credit for decreaseF.Sold services on creditAssets , debit for increaseOwners’ equaties , credit for increase3.Describe the rules of debit and credit（只需填入debit/credit）Requirement: Complete each of the following statement by using the word debit and credit wherever appropriate.1.Assets accounts normally have debit balances. These accounts increase on the debit side and decrease on the credit side.2.Liabilities accounts normally have credit balances. These accounts increase on the credit side and decrease on the debit side.3.The owners’ capital account normally has credit balance. This account increase on the credit side and decrease on the debit side.。
财务会计英文版原书第5版ch02bwzg
Steps in the Recording
Process
Journal Ledger
The Recording Process Illustrated
Summary illustration of journalizing and posting
The Trial Balance
Limitations of a trial balance Locating errors Use of dollar signs
Expense
Debit / Dr.
Credit / Cr.
Normal Balance
Chapter 3-25
Revenue
Debit / Dr.
Credit / Cr.
Chapter 2-8
Normal Balance
Chapter 3-27
Normal Balance
Chapter 3-26
SO 2
See notes page for discussion
Chapter 2-11
SO 2 Define debits and credits and explain their use in recording business transactions.
Assets and Liabilities
Common Stock
Debit / Dr.
Credit / Cr.
Retained Earnings
Debit / Dr.
Credit / Cr.
Dividends
Debit / Dr.
Credit / Cr.
Chapter 3-25
Chapter 2-13
财务会计练习（英语）
财务会计练习（英语）PRACTIC1.CHOICE QUESTIONS38. Preparing a work sheet involvesa. two steps.b. three steps.c. four steps.d. five steps.39. The adjustments entered in the adjustments columns of a work sheet area. not journalized.b. posted to the ledger but not journalized.c. not journalized until after the financial statements are prepared.d. journalized before the work sheet is completed.40. The information for preparing a trial balance on a work sheet is obtained froma. financial statements.b. general ledger accounts.c. general journal entries.d. business documents.41. An adjusted trial balancea. is prepared after the financial statements have been prepared.b. proves the equality of the debits and the credits of the ledger accounts.c. is required by GAAP.d. is prepared after the post-closing trial balance.42. The income statement columns of the DelMonico Company’s worksheet reports total debits of $50,000 and total credits of $35,000. This means thata. the company earned net income of $15,000 for the period.b. the worksheet has an error because debits do not equal credits.c. the company has a net loss of $15,000d. distributions to owners for the period totalled $15,000.43. A work sheet is a multiple column form that facilitates thea. identification of events.b. measurement process.c. preparation of financial statements.d. analysis process.44. Which of the following companies would be least likely to use a work sheet to facilitatethe adjustment process?a. Large company with numerous accountsb. Small company with numerous accountsc. All companies, since work sheets are required under generally acceptedaccounting principlesd. Small company with few accounts45. A work sheet can be thought of as a(n)a. permanent accounting record.b. optional device used by accountants.c. part of the general ledger.d. part of the journal.46. The account, Supplies, will appear in the following debit columns of the work sheet.a. Trial balanceb. Adjusted trial balancec. Balance sheetd. All of these47. When constructing a work sheet, accounts are often needed that are not listed in thetrial balance already entered on the work sheet from the ledger. Where should these additional accounts be shown on the work sheet?a. They should be inserted in alphabetical order into the trial balance accountsalready given.b. They should be inserted in chart of account order into the trial balance alreadygiven.c. They should be inserted on the lines immediately below the trial balance totals.d. They should not be inserted on the trial balance until the next accounting period.48. When using a work sheet, adjusting entries are journalizeda. after the work sheet is completed and before financial statements are prepared.b. before the adjustments are entered on to the work sheet.c. after the work sheet is completed and after financial statements have beenprepared.d. before the adjusted trial balance is extended to the proper financial statementcolumns.49. Closing entries are made for all accounts excepta. Revenuesb. Expensesc. Dividendsd. Common Stock50. Adjusting journal entries are prepared froma. source documents.b. the adjustment columns of the work sheet.c. the general ledger.d. last year's work sheet.51. The net income (or loss) for the perioda. is found by computing the difference between the income statement credit columnand the balance sheet credit column on the work sheet.b. cannot be found on the work sheet.c. is found by computing the difference between the income statement columns ofthe work sheet.d. is found by computing the difference between the trial balance totals and theadjusted trial balance totals.52. The work sheet does not showa. net income or loss for the period.b. revenue and expense account balances.c. the ending balance in the retained earnings account.d. the trial balance before adjustments.53. If the total debits exceed total credits in the balance sheet columns of the worksheet,retained earningsa. will increase because net income has occurred.b. will decrease because a net loss has occurred.c. is in error because a mistake has occurred.d. will not be affected.Use the following information for questions 54–55.The income statement and balance sheet columns of Pine Company's work sheet reflects the following totals: Income Statement Balance SheetDr. Cr. Dr.Cr.Totals $58,000 $45,000 $34,000 $47,00054. The net income (or loss) for the period isa. $45,000 income.b. $13,000 income.c. $13,000 loss.d. not determinable.55. To enter the net income (or loss) for the period into the above work sheet requires anentry to thea. income statement debit column and the balance sheet credit column.b. income statement credit column and to the balance sheet debit column.c. income statement debit column and the income statement credit column.d. balance sheet debit column and to the balance sheet credit column.56. Closing entries are necessary fora. permanent accounts only.b. temporary accounts only.c. both permanent and temporary accounts.d. permanent or real accounts only.57. Each of the following accounts is closed to Income Summary excepta. Expenses.b. Dividends.c. Revenues.d. All of these are closed to Income Summary.58. Closing entries are madea. in order to terminate the business as an operating entity.b. so that all assets, liabilities, and stockholders’ equity accounts will have zerobalances when the next accounting period starts.c. in order to transfer net income (or loss) and dividend to retained earnings.d. so that financial statements can be prepared.Use the following information from the Income Statement for the month of June, 2006 of Delgado Enterprises to answer questions 59 – 63.Revenues $7,000Expenses:Wages Expense $2,000Advertising Expense 200Rent Expense 1,000Supplies Expense 300Insurance Expense 100Total expenses 3,600Net income $3,40059. The entry to close the revenue account includesa. a debit to Income Summary for $3,400.b. a credit to Income Summary for $3,400.c. a debit to Income Summary for $7,000.d. a credit to Income Summary for $7,000.60. The entry to close the expense accounts includesa. a debit to Income Summary for $3,400.b. a credit to Rent Expense for $1,000,c. a credit to Income Summary for $3,600.d. a debit to Wages Expense for $2,000.61. After the revenue and expense accounts have been closed, the balance in IncomeSummary will bea. $0.b. a debit balance of $3,400.c. a credit balance of $3,400.d. a credit balance of $7,000.62. The entry to close Income Summary to Retained Earnings includesa. a debit to Revenue for $7,000.b. credits to Expenses totalling $3,600.c. a credit to Income Summary for $3,400d. a credit to Retained Earnings for $3,400.63. At June 1, 2006, Delgado reported Retained Earnings of $35,000. The companypaid no dividends during June. At June 30, 2006, the company will report a Retained Earnings balance ofa. $35,000 credit.b. $42,000 credit.c. $38,400 credit.d. $31,600 credit.64. Which of the following is a true statement about closing the books of a corporation?a. Expenses are closed to the Expense Summary account.b. Only revenues are closed to the Income Summary account.c. Revenues and expenses are closed to the Income Summary account.d. Revenues, expenses, and the Dividend account are closed to the IncomeSummary account.Use the following information from the Income Statement for the year 2006 of NOLA Inc. to answer questions 65 – 71. Revenues $70,000Expenses:Wages Expense $45,000Advertising Expense 6,000Rent Expense 12,000Supplies Expense 6,000Utilities Expense 2,500Insurance Expense 2,000Total expenses 73,500Net income (loss) $(3,500)65. The entry to close the revenue account includesa. a debit to Income Summary for $3,500.b. a credit to Income Summary for $3,500.c. a debit to Revenues for $70,000.d. a credit to Revenues for $70,000.66. The entry to close the expense accounts includesa. a debit to Income Summary for $3,500.b. a credit to Income Summary $3,500,c. a debit to Income Summary for $73,500.d. a debit to Wages Expense for $2,500.67. After the revenue and expense accounts have been closed, the balance in IncomeSummary will bea. $0.b. a debit balance of $3,500.c. a credit balance of $3,500.d. a credit balance of $70,000.68. The entry to close Income Summary to Retained Earnings includesa. a debit to Revenue for $70,000.b. credits to Expenses totalling $73,500.c. a credit to Income Summary for $3,500d. a credit to Retained Earnings for $3,500.69. At January 1, 2006, NOLA reported Retained Earnings of $50,000. Dividends for theyear totalled $10,000. At December 31, 2006, the company will report a Retained Earnings balance ofa. $13,500 debit.b. $36,500 credit.c. $40,000 credit.d. $43,500 credit.70. After all closing entries have been posted, the Income Summary account will have a balance ofa. $0.b. $3,500 debit.c. $3,500 credit.d. $36,500 credit.71. After all closing entries have been posted the Revenue account will have a balance ofa. $0.b. $70,000 credit.c. $70,000 debit.d. $3,500 credit.72. The Income Summary account is an important account that is useda. during interim periods.b. in preparing adjusting entries.c. annually in preparing closing entries.d. annually in preparing correcting entries.73. The balance in the income summary account before it is closed will be equal toa. the net income or loss on the income statement.b. the beginning balance in the retained earnings account.c. the ending balance in the retained earnings account.d. zero.74. After closing entries are posted, the balance in the Retained Earnings account in the ledger will be equal toa. the beginning Retained Earnings reported on the owner's equity statement.b. the amount of the Retained Earnings reported on the balance sheet.c. zero.d. the net income for the period.75. A post-closing trial balance is prepareda. after closing entries have been journalized and posted.b. before closing entries have been journalized and posted.c. after closing entries have been journalized but before the entries are posted.d. before closing entries have been journalized but after the entries are posted.76. All of the following statements about the post-closing trial balance are correct except ita. shows that the accounting equation is in balance.b. provides evidence that the journalizing and posting of closing entries have been properly completed.c. contains only permanent accounts.d. proves that all transactions have been recorded.77. A post-closing trial balance will showa. only permanent account balances.b. only temporary account balances.c. zero balances for all accounts.d. the amount of net income (or loss) for the period.78. A post-closing trial balance should be prepareda. before closing entries are posted to the ledger accounts.b. after closing entries are posted to the ledger accounts.c. before adjusting entries are posted to the ledger accounts.d. only if an error in the accounts is detected.79. A post-closing trial balance will showa. zero balances for all accounts.b. zero balances for balance sheet accounts.c. only balance sheet accounts.d. only income statement accounts.80. The purpose of the post-closing trial balance is toa. prove that no mistakes were made.b. prove the equality of the balance sheet account balances that are carried forwardinto the next accounting period.c. prove the equality of the income statement account balances that are carriedforward into the next accounting period.d. list all the balance sheet accounts in alphabetical order for easy reference.81. The balances that appear on the post-closing trial balance will match thea. income statement account balances after adjustments.b. balance sheet account balances after closing entries.c. income statement account balances after closing entries.d. balance sheet account balances after adjustments.82. Which account listed below would be double ruled in the ledger as part of the closing process?a. Cashb. Common Stockc. Dividendsd. Accumulated Depreciation83. A double rule applied to accounts in the ledger during the closing process implies thata. the account is a temporary account.b. the account is a balance sheet account.c. the account balance is not zero.d. a mistake has been made, since double ruling is prescribed.84. The heading for a post-closing trial balance has a date line that is similar to the one found ona. a balance sheet.b. an income statement.c. an owner's equity statement.d. the work sheet.85. Which one of the following is usually prepared only at the end of a company's annual accounting period?a. Preparing financial statementsb. Journalizing and posting adjusting entriesc. Journalizing and posting closing entriesd. Preparing an adjusted trial balance86. The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) isa. analyzing transactions.b. journalizing and posting adjusting entries.c. preparing a post-closing trial balance.d. posting to ledger accounts.87. Which one of the following is an optional step in the accounting cycle of a business enterprise?a. Analyze business transactionsb. Prepare a work sheetc. Prepare a trial balanced. Post to the ledger accounts88. The final step in the accounting cycle is to preparea. closing entries.b. financial statements.c. a post-closing trial balance.d. adjusting entries.89. Which of the following steps in the accounting cycle would not generally be performed daily?a. Journalize transactionsb. Post to ledger accountsc. Prepare adjusting entriesd. Analyze business transactions90. Which of the following steps in the accounting cycle may be performed more frequently than annually?a. Prepare a post-closing trial balanceb. Journalize closing entriesc. Post closing entriesd. Prepare a trial balance91. Which of the following depicts the proper sequence of steps in the accounting cycle?a. Journalize the transactions, analyze business transactions, prepare a trial balanceb. Prepare a trial balance, prepare financial statements, prepare adjusting entriesc. Prepare a trial balance, prepare adjusting entries, prepare financial statementsd. Prepare a trial balance, post to ledger accounts, post adjusting entries92. The two optional steps in the accounting cycle are preparinga. a post-closing trial balance and reversing entries.b. a work sheet and post-closing trial balances.c. reversing entries and a work sheet.d. an adjusted trial balance and a post-closing trial balance.93. The first required step in the accounting cycle isa. reversing entries.b. journalizing transactions in the book of original entry.c. analyzing transactions.d. posting transactions.94. Correcting entriesa. always affect at least one balance sheet account and one income statementaccount.b. affect income statement accounts only.c. affect balance sheet accounts only.d. may involve any combination of accounts in need of correction.95. Speedy Bike Company received a $740 check from a customer for the balance due.The transaction was erroneously recorded as a debit to Cash $470 and a credit to Service Revenue $470. The correcting entry isa. Debit Cash, $740; Credit Accounts Receivable, $740.b. Debit Cash, $270 and Accounts Receivable, $470; Credit Service Revenue, $740.c. Debit Cash, $270 and Service Revenue, $470; Credit Accounts Receivable, $740.d. Debit Accounts Receivable, $740; Credit Cash, $270 and Service Revenue, $470.96. If errors occur in the recording process, theya. should be corrected as adjustments at the end of the period.b. should be corrected as soon as they are discovered.c. should be corrected when preparing closing entries.d. cannot be corrected until the next accounting period.97. A correcting entrya. must involve one balance sheet account and one income statement account.b. is another name for a closing entry.c. may involve any combination of accounts.d. is a required step in the accounting cycle.98. An unacceptable way to make a correcting entry is toa. reverse the incorrect entry.b. erase the incorrect entry.c. compare the incorrect entry with the correct entry and make a correcting entry tocorrect the accounts.d. correct it immediately upon discovery.99. Cole Company paid the weekly payroll on January 2 by debiting Wages Expense for$40,000. The accountant preparing the payroll entry overlooked the fact that WagesExpense of $24,000 had been accrued at year end on December 31. The correctingentry isa. Wages Payable ............................................................................ 24,000Cash ................................................................................ 24,000b. Cash .......................................................................................... 16,000Wages Expense .............................................................. 16,000c. Wages Payable ............................................................................ 24,000Wages Expense .............................................................. 24,000d. Cash .......................................................................................... 24,000Wages Expense .............................................................. 24,000100. Tyler Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. Thecorrecting entry isa. Accounts Payable (630)Cash (630)b. Accounts Receivable (360)Cash (360)c. Accounts Receivable (360)Accounts Payable (360)d. Accounts Receivable (360)Accounts Payable (630)Cash (990)101. A lawyer collected $860 of legal fees in advance. He erroneously debited Cash for $680 and credited Accounts Receivable for $680. The correcting entry isa. Cash (680)Accounts Receivable (180)Unearned Revenue (860)b. Cash (860)Service Revenue (860)c. Cash .............................................................................................180Accounts Receivable (680)Unearned Revenue (860)d. Cash (180)Accounts Receivable (180)102. All of the following are property, plant, and equipment excepta. supplies.b. machinery.c. land.d. buildings.Use the following information to answer questions 103-111.The following items are taken from the financial statements of Waters Company for the year ending 12/31/2006: Accounts payable $ 18,000Accounts receivable 11,000Accumulated depreciation – equipment 28,000Advertising expense 21,000Cash 15,000Common stock 90,000Depreciation expense 12,000Dividends 14,000Insurance expense 3,000Note payable, due 6/31/2007 70,000Prepaid insurance (12-month policy) 6,000Rent expense 17,000Retained earnings, 1/1/2006 12,000Salaries expense 32,000Service revenue 133,000Supplies 4,000Supplies expense 6,000Equipment 210,000103. What is the company’s net income for the year ending 12/31/2006?a. $133,000b. $42,000c. $28,000d. $12,000104. What is the balance that would be reported for Retained earnings at 12/31/2006?a. $12,000b. $40,000c. $42,000d. $56,000105. What are total current assets at 12/31/2006?a. $26,000b. $32,000c. $36,000d. $218,000106. What is the book value of the equipment at 12/31/2006?a. $238,000.b. $210,000c. $182,000d. $170,000107. What are total current liabililites at 12/31/2006?a. $18,000b. $70,000c. $88,000d. $0.108. What are total long-term liabilities at 12/31/2006?a. $0b. $70,000.c. $88,000d. $90,000109. What is total stockholders’ equity at 12/31/2006?a. $90,000.b. $102,000.c. $126,000.d. $130,000.110. The sub-classificatio ns for assets on the company’s classified balance sheet would include all of the following except:a. Current Assetsb. Property, Plant and Equipmentc. Intangible Assetsd. All of the above would be included as sub-classifications.111. The current assets should be listed on the balance sheet in the following order:a. cash, accounts receivable, prepaid insurance, equipmentb. cash, prepaid insurance, supplies, accounts receivablec. cash, accounts receivable, prepaid insurance, suppliesd. equipment, supplies, prepaid insurance, accounts receivable, cash112. The operating cycle of a company is the average time that is required to go from cash toa. sales in producing revenues.b. cash in producing revenues.c. inventory in producing revenues.d. accounts receivable in producing revenues.113. On a classified balance sheet, current assets are customarily listeda. in alphabetical order.b. with the largest dollar amounts first.c. in the order of liquidity.d. in the order of acquisition.114. Intangible assets include all of the following except:a. Marketable securities.b. Patents.c. Copyrights.d. Goodwill.115. The relationship between current assets and current liabilities is important in evaluating a company'sa. profitability.b. liquidity.c. market value.d. accounting cycle.116. The most important information needed to determine if companies can pay their current obligations is thea. net income for this year.b. projected net income for next year.c. relationship between current assets and current liabilities.d. relationship between short-term and long-term liabilities.a117. A reversing entrya. reverses entries that were made in error.b. is the exact opposite of an adjusting entry made in a previous period.c. is made when a business disposes of an asset it previously purchased.d. is made when a company sustains a loss in one period and reverses the effectwith a profit in the next period.a118. If a company utilizes reversing entries, they willa. be made at the beginning of the next accounting period.b. not actually be posted to the general ledger accounts.c. be made before the post-closing trial balance.d. be part of the adjusting entry process.119. The steps in the preparation of a work sheet do not includea. analyzing documentary evidence.b. preparing a trial balance on the work sheet.c. entering the adjustments in the adjustment columns.d. entering adjusted balances in the adjusted trial balance columns.120. Balance sheet accounts are considered to bea. temporary owner's equity accounts.b. permanent accounts.c. capital accounts.d. nominal accounts.121. Income Summary has a credit balance of $12,000 in J. Tayler Co. after closing revenues and expenses. The entry to close Income Summary isa. credit Income Summary $12,000, debit Retained Earnings $12,000.b. credit Income Summary $12,000, debit Dividends $12,000.c. debit Income Summary $12,000, credit Dividends $12,000.d. debit Income Summary $12,000, credit Retained Earnings $12,000.122. The post-closing trial balance contains onlya. income statement accounts.b. balance sheet accounts.c. balance sheet and income statement accounts.d. income statement, balance sheet, and owner's equity statement accounts.123. Which of the following is an optional step in the accounting cycle?a. Adjusting entriesb. Closing entriesc. Correcting entriesd. Reversing entries124. Which one of the following statements concerning the accounting cycle is incorrect?a. The accounting cycle includes journalizing transactions and posting to ledgeraccounts.b. The accounting cycle includes only one optional step.c. The steps in the accounting cycle are performed in sequence.d. The steps in the accounting cycle are repeated in each accounting period.125. Correcting entries are madea. at the beginning of an accounting period.b. at the end of an accounting period.c. whenever an error is discovered.d. after closing entries.126. On September 23, Reese Company received a $350 check from Mike Moluf for services to be performed in the future.The bookkeeper for Reese Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper shoulda. debit Cash $350 and credit Unearned Service Revenue $350.b. debit Accounts Receivable $350 and credit Unearned Service Revenue $350.c. debit Accounts Receivable $350 and credit Cash $350.d. debit Accounts Receivable $350 and credit Service Revenue $350.127. Fifth Dimension Inc. reported a balance in Retained Earnings of $45,000 on its post-closing trial balance at 12/31/2006. The company earned net income of $30,000 and paid dividends of $5,000 during the year. The 12/31/2006 balance sheet will report Retained Earnings ofa. $40,000b. $45,000c. $70,000d. $75,000128. Current liabilitiesa. must reasonably be expected to be paid from existing current assets or throughthe creation of other current liabilities.b. are listed in the balance sheet in order of their expected maturity.c. must reasonably be expected to be paid within one year or the operating cycle,whichever is shorter.d. should not include long-term debt that is expected to be paid within the next year.a129. The use of reversing entriesa. is a required step in the accounting cycle.b. changes the amounts reported in the financial statements.c. simplifies the recording of subsequent transactions.d. is required for all adjusting entries.2.MATCHING1 Match the items below by entering the appropriate code letter in the space provided.A. Intangible assets F. Book valueB. Permanent accounts G. Current assetsC. Closing entries H. Operating cycleD. Income Summary I. Current liabilitiesE. Reversing entry J. Correcting entries____ 1. Obligations expected to be paid within one year or one operating cycle out of current assets.____ 2. The difference between the cost and the accumulated depreciaion of a depreciable asset.____ 3. Noncurrent assets that do not have physical substance____ 4. A temporary account used in the closing process.____ 5. Balance sheet accounts whose balances are carried forward to the next period.____ 6. The average length of time to go from cash to cash in producing revenue.____ 7. Entries to correct errors made in recording transactions.____ 8. The exact opposite of an adjusting entry made in a previous period.____ 9. Entries at the end of an accounting period to transfer the balances of temporary accounts to a stockholders’ account. ____ 10. Resources which are expected to be realized in cash, sold, or consumed within one year of the balance sheet or the company's operating cycle,whichever is longer.2.MATCHING150. Match the items below by entering the appropriate code letter in the space provided.A. Cost of goods available for sale F. First-in, first-out (FIFO) methodB. Raw materials G. Last-in, first-out (LIFO) methodC. FOB shipping point H. Average cost methodD. FOB destination I. Inventory turnoverE. Net purchases J. Current replacement cost____ 1. Measures the number of times the inventory sold during the period.____ 2. Purchases less purchases returns and allowances and purchases discounts.____ 3. Goods that will be used in the production process but which have not yet been placed into production.____ 4. Cost of goods sold consists of the most recent inventory purchases.____ 5. Sum of beginning merchandise inventory and cost of goods purchased.____ 6. Title to the goods transfers when the public carrier accepts the goods from the seller.____ 7. Ending inventory valuation consists of the most recent inventory purchases.____ 8. The same unit cost is used to value ending inventory and cost of goods sold.____ 9. Title to goods transfers when the goods are delivered to the buyer.____ 10. The amount that would be paid at the present time to acquire an identical item.。
财务会计英语练习及答案ch
财务会计英语练习及答案ch个人收集整理勿做商业用途CHAPTER 16 STATEMENT OF CASH FLOWS个人收集整理勿做商业用途Chapter 16—Statement of Cash FlowsTRUE/FALSE1. The statement of cash flows is not one of the basic financial statements.ANS: F DIF: 1 OBJ: 012. Cash, as the term is used for the statement of cash flows, could indicate either cash or cashequivalents.ANS: T DIF: 1 OBJ: 013. The statement of cash flows is an optional financial statement.ANS: F DIF: 1 OBJ: 014. The statement of cash flows shows the effects on cash ofa company's operating, investing,and financing activities.ANS: T DIF: 1 OBJ: 015. The statement of cash flows reports a firm's major sources of cash receipts and major uses ofcash payments for a period.ANS: T DIF: 1 OBJ: 016. Cash flows from operating activities, as part of the statement of cash flows, include cashtransactions that enter into the determination of net income.ANS: T DIF: 1 OBJ: 017. To arrive at cash flows from operations, it is necessary toconvert the income statement froman accrual basis to the cash basis of accounting.ANS: T DIF: 2 OBJ: 018. Cash flows from investing activities, as part of the statement of cash flows, include receiptsfrom the sale of land.ANS: T DIF: 2 OBJ: 019. Cash flows from financing activities, as part of the statement of cash flows, include paymentsfor dividends.ANS: T DIF: 2 OBJ: 0110. Cash flows from investing activities, as part of the statement of cash flows, include paymentsfor the purchase of treasury stock.ANS: F DIF: 2 OBJ: 0111. Cash flows from investing activities, as part of the statement of cash flows, include receiptsfrom the issuance of bonds payable.ANS: F DIF: 2 OBJ: 0112. There are two alternatives to reporting cash flows from operating activities in the statement ofcash flows: (1) the direct method and (2) the indirect method.ANS: T DIF: 1 OBJ: 0113. The direct method of preparing the operating activities section of the statement of cash flowsreports major classes of gross cash receipts and gross cash payments.ANS: T DIF: 1 OBJ: 0114. Under the direct method of reporting cash flows from operations, the major source of cash iscash received from customers.ANS: T DIF: 1 OBJ: 0115. The main disadvantage of the direct method of reporting cash flows from operating activitiesis that the necessary data are often costly to accumulate.ANS: T DIF: 2 OBJ: 0116. A major disadvantage of the indirect method of reporting cash flows from operating activitiesis that the difference between the net amount of cash flows from operating activities and net income is not emphasized.ANS: F DIF: 2 OBJ: 01个人收集整理勿做商业用途17. Cash outflows from financing activities include the payment of cash dividends, theacquisition of treasury stock, and the repayment of amounts borrowed.ANS: T DIF: 2 OBJ: 0118. Cash flows from investing activities, as part of the statement of cash flows, include paymentsfor the acquisition of fixed assets.ANS: T DIF: 2 OBJ: 0119. The acquisition of land in exchange for common stock is an example of noncash investing andfinancing activity.ANS: T DIF: 2 OBJ: 0120. If a business issued bonds payable in exchange for land, the transaction would be reported in aseparate schedule on the statement of cash flows.ANS: T DIF: 2 OBJ: 0121. A cash flow per share amount should be reported on thestatement of cash flows.ANS: F DIF: 1 OBJ: 0122. Although there is no order in which the noncash balance sheet accounts must be analyzed indetermining data for preparing the statement of cash flows by the indirect method, time can be saved and greater accuracy can be achieved by selecting the accounts in the reverse order in which they appear on the balance sheet.ANS: T DIF: 1 OBJ: 0223. The 2002 edition of Accounting Trends and Techniques reported that 90% of the companiessurveyed used the indirect method to report changes in cash flows from operations.ANS: F DIF: 2 OBJ: 0224. Rarely would the cash flows from operating activities, as reported on the statement of cashflows, be the same as the net income reported on the income statement.ANS: T DIF: 2 OBJ: 0225. If land costing $75,000 was sold for $135,000, the amount reported in the investing activitiessection of the statement of cash flows would be $75,000.ANS: F DIF: 2 OBJ: 0226. If land costing $150,000 was sold for $205,000, the $55,000 gain on the sale would be addedto net income in converting the net income reported on the income statement to cash flows from operating activities for the statement of cash flows prepared by the indirect method.ANS: F DIF: 2 OBJ: 0227. In preparing the cash flows from operating activitiessection of the statement of cash flows bythe indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.ANS: T DIF: 2 OBJ: 0228. In determining the cash flows from operating activities for the statement of cash flows by theindirect method, the depreciation expense for the period is added to the net income for the period.ANS: T DIF: 2 OBJ: 0229. In preparing the cash flows from operating activities section of the statement of cash flows bythe indirect method, the amortization of bond discount for the period is deducted from the net income for the period.ANS: F DIF: 2 OBJ: 02个人收集整理勿做商业用途30. If cash dividends of $145,000 were declared during the year and the decrease in dividendspayable from the beginning to the end of the year was $7,000, the statement of cash flows would report $152,000 in the financing activities section.ANS: T DIF: 2 OBJ: 0231. The declaration and issuance of a stock dividend would be reported on the statement of cashflows.ANS: F DIF: 2 OBJ: 0232. If 900 shares of $40 par common stock are sold for $48,000, the $48,000 would be reported inthe cash flows from financing activities section of the statement of cash flows.ANS: T DIF: 2 OBJ: 0233. If $500,000 of bonds payable are sold at 101, $500,000 would be reported in the cash flowsfrom financing activities section of the statement of cash flows.ANS: F DIF: 2 OBJ: 0234. Net income was $ 52,000 for the year. The accumulated depreciation balance increased by$17,000 over the year. There were no sales of fixed assets or changes in noncash current assets or liabilities. The cash flow from operations is $35,000ANS: F DIF: 2 OBJ: 0235. Net income for the year was $29,000. Accounts receivable increased $2,500, and accountspayable increased $5,100. The cash flow from operations is $31,600.ANS: T DIF: 2 OBJ: 0236. A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an$11,000 gain. The cash generated from this investing activity was $121,000.ANS: F DIF: 2 OBJ: 0237. The indirect method reports cash received from customers in the cash flows from operatingactivities section of the statement of cash flows.ANS: F DIF: 2 OBJ: 0238. Cash paid to acquire treasury stock should be shown on the statement of cash flows frominvesting activities.ANS: F DIF: 2 OBJ: 0239. Repayments of bonds would be shown as a cash outflow in the investing section of thestatement of cash flows.ANS: F DIF: 2 OBJ: 0240. Acquiring equipment by issuing a six-month note should be shown on the statement of cashflows under the investing activities section.ANS: F DIF: 2 OBJ: 0241. In reporting cash flows from investing activities on the statement of cash flows, the cashinflows are usually reported first, followed by the cash outflows.ANS: T DIF: 1 OBJ: 0242.Cash inflows and outflows are not netted in any activity section of the statement of cash flows but are separately disclosed to give the reader full information.ANS: T DIF: 1 OBJ: 0243. The manner of reporting cash flows from investing and financing activities will be differentunder the direct method as compared to the indirect method.ANS: F DIF: 1 OBJ: 0344. Sales reported on the income statement were $375,000. The accounts receivable balancedeclined $6,500 over the year. The amount of cash received from customers was $368,500.个人收集整理勿做商业用途ANS: F DIF: 2 OBJ: 0345. To determine cash payments for merchandise for the cash flow statement using the directmethod, a decrease in accounts payable is added to the cost of merchandise sold.ANS: T DIF: 2 OBJ: 0346. To determine cash payments for operating expenses for the cash flow statement using thedirect method, a decrease in prepaid expenses is added to operating expenses other thandepreciation.ANS: F DIF: 2 OBJ: 0347. To determine cash payments for operating expenses for the cash flow statement using thedirect method, a decrease in accrued expenses is added to operating expenses other thandepreciation.ANS: T DIF: 2 OBJ: 0348. To determine cash payments for income tax for the cash flow statement using the directmethod, an increase in income taxes payable is added to the income tax expense.ANS: F DIF: 2 OBJ: 0349. Free cash flow is cash flow from operations, less cash used to purchase fixed assets tomaintain productive capacity and cash used for dividends.ANS: T DIF: 1 OBJ: 0450. Free cash flow is the measure of operating cash flow available for corporate purposes afterproviding sufficient fixed asset additions to maintain current productive capacity anddividends.ANS: T DIF: 1 OBJ: 04MULTIPLE CHOICE1. Which of the following is not one of the four basic financial statements?a. balance sheetb. statement of cash flowsc. statement of changes in financial positiond. income statementANS: C DIF: 1 OBJ: 012. Which of the following concepts of cash is not appropriate to use in preparing the statementof cash flows?a. cashb. cash and money market fundsc. cash and cash equivalentsd. cash and U.S. treasury bondsANS: D DIF: 2 OBJ: 013. The statement of cash flows reportsa. cash flows from operating activitiesb. total assetsc. total changes in stockholders' equityd. changes in retained earningsANS: A DIF: 1 OBJ: 014. On the statement of cash flows, the cash flows from operating activities section would includea. receipts from the issuance of capital stockb. receipts from the sale of investmentsc. payments for the acquisition of investments个人收集整理勿做商业用途d. cash receipts from sales activitiesANS: D DIF: 2 OBJ: 015. Preferred stock issued in exchange for land would be reported in the statement of cash flowsina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: C DIF: 2 OBJ: 016. Cash paid to purchase long-term investments would be reported in the statement of cash flowsina. the cash flows from operating activities sectionb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. a separate scheduleANS: C DIF: 2 OBJ: 017. A statement of cash flows would not disclose the effects of which of the followingtransactions?a. stock dividends declaredb. bonds payable exchanged for capital stockc. purchase of treasury stockd. capital stock issued to acquire fixed assetsANS: A DIF: 2 OBJ: 018. Which of the following does not represent an outflow of cash and therefore would not bereported on the statement of cash flows as a use of cash?a. purchase of noncurrent assetsb. purchase of treasury stockc. discarding an asset that had been fully depreciatedd. payment of cash dividendsANS: C DIF: 2 OBJ: 019. Which of the following represents an inflow of cash and therefore would be reported on thestatement of cash flows?a. appropriation of retained earningsb. acquisition of treasury stockc. declaration of stock dividendsd. issuance of long-term debtANS: D DIF: 2 OBJ: 0110. A ten-year bond was issued at par for $150,000 cash. This transaction should be shown on astatement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activitiesd. operating activitiesANS: B DIF: 1 OBJ: 0111. Cash paid for preferred stock dividends should be shown on the statement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activities个人收集整理勿做商业用途d. operating activitiesANS: B DIF: 2 OBJ: 0112. The last item on the statement of cash flows prior to the schedule of noncash investing andfinancing activities reportsa. the increase or decrease in cashb. cash at the end of the yearc. net cash flow from investing activitiesd. net cash flow from financing activitiesANS: B DIF: 2 OBJ: 0113. Which of the following is a noncash investing and financing activity?a. payment of a cash dividendb. payment of a six-month note payablec. purchase of merchandise inventory on accountd. issuance of common stock to acquire landANS: D DIF: 2 OBJ: 0114. Which of the following should be shown on a statement of cash flows under the financingactivity section?a. the purchase of a long-term investment in the common stock of another companyb. the payment of cash to retire a long-term notec. the proceeds from the sale of a buildingd. the issuance of a long-term note to acquire landANS: B DIF: 2 OBJ: 0115. A company purchases equipment for $29,000 cash. This transaction should be shown on thestatement of cash flows undera. investing activitiesb. financing activitiesc. noncash investing and financing activitiesd. operating activitiesANS: A DIF: 2 OBJ: 0116. Cash flow per share isa. required to be reported on the balance sheetb. required to be reported on the income statementc. required to be reported on the statement of cash flowsd. not required to be reported on any statementANS: D DIF: 1 OBJ: 0117. On the statement of cash flows prepared by the indirect method, the cash flows from operatingactivities section would includea. receipts from the sale of investmentsb. amortization of premium on bonds payablec. payments for cash dividendsd. receipts from the issuance of capital stockANS: B DIF: 2 OBJ: 0118. The statement of cash flows may be used by management toa. assess the liquidity of the businessb. assess the major policy decisions involving investments and financingc. determine dividend policyd. do all of the aboveANS: D DIF: 1 OBJ: 01个人收集整理勿做商业用途19. Depreciation on factory equipment would be reported in the statement of cash flows preparedby the indirect method ina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: D DIF: 2 OBJ: 0220. Which of the following should be added to net income incalculating net cash flow fromoperating activities using the indirect method?a. an increase in inventoryb. a decrease in accounts payablec. preferred dividends declared and paidd. a decrease in accounts receivableANS: D DIF: 2 OBJ: 0221. Which of the following should be deducted from net income in calculating net cash flow fromoperating activities using the indirect method?a. depreciation expenseb. amortization of premium on bonds payablec. a loss on the sale of equipmentd. dividends declared and paidANS: B DIF: 2 OBJ: 0222. Which of the following below increases cash?a. depreciation expenseb. acquisition of treasury stockc. borrowing money by issuing a six-month noted. the declaration of a cash dividendANS: C DIF: 2 OBJ: 0223. Which one of the following below would not be classified as an operating activity?a. interest expenseb. income taxesc. payment of dividendsd. selling expensesANS: C DIF: 2 OBJ: 0224. Which one of the following below should be added to net income in calculating net cash flowfrom operating activities using the indirect method?a. a gain on the sale of landb. a decrease in accounts payablec. an increase in accrued liabilitiesd. dividends paid on common stockANS: C DIF: 2 OBJ: 0225. On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale ofinvestments would bea. deducted from net income in converting the net income reported on the incomestatement to cash flows from operating activitiesb. added to net income in converting the net income reported on the income statementto cash flows from operating activitiesc. added to dividends declared in converting the dividends declared to the cash flowsfrom financing activities related to dividends个人收集整理勿做商业用途d. deducted from dividends declared in converting the dividends declared to the cashflows from financing activities related to dividendsANS: A DIF: 2 OBJ: 0226. Accounts receivable arising from trade transactions amounted to $45,000 and $52,000 at thebeginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method isb. $112,000c. $98,000d. $140,000ANS: C DIF: 2 OBJ: 0227. The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:End Beginning Cash $ 50,000 $ 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 89,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?a. $198,000b. $324,000c. $352,000d. $296,000ANS: D DIF: 3 OBJ: 0228. The following information is available from the current period financial statements:Net income .................................... $140,000Depreciation expense ..................... 28,000Increase in accounts receivable ....... 16,000Decrease in accounts payable ......... 21,000The net cash flow from operating activities using the indirect method isb. $163,000c. $107,000d. $205,000ANS: A DIF: 3 OBJ: 0229. On the statement of cash flows, the cash flows from investing activities section would includea. receipts from the issuance of capital stockb. payments for dividendsc. payments for retirement of bonds payabled. receipts from the sale of investmentsANS: D DIF: 2 OBJ: 02个人收集整理勿做商业用途30. A building with a book value of $ 45,000 is sold for $50,000 cash. Using the indirect method,this transaction should be shown on the statement of cash flows as follows:a. an increase of $45,000 from investing activitiesb. an increase of $50,000 from investing activities and a deduction from net income of$5,000c. an increase of $50,000 from investing activitiesd. an increase of $45,000 from investing activities and an addition to net income of$5,000ANS: B DIF: 2 OBJ: 0231. Cash paid for equipment would be reported in the statement of cash flows ina. the cash flows from operating activities sectionb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. a separate scheduleANS: C DIF: 2 OBJ: 0232. If a gain of $9,000 is incurred in selling (for cash) office equipment having a book value of$55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows isa. $46,000b. $9,000c. $55,000d. $64,000ANS: D DIF: 2 OBJ: 0233. Which of the following types of transactions would be reported as a cash flow from investingactivity on the statement of cash flows?a. issuance of bonds payableb. issuance of capital stockc. purchase of treasury stockd. purchase of noncurrent assetsANS: D DIF: 2 OBJ: 0234. Land costing $47,000 was sold for $78,000 cash. The gain on the sale was reported on theincome statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?a. $78,000b. $47,000c. $109,000d. $31,000ANS: A DIF: 2 OBJ: 0235. Equipment with an original cost of $50,000 and accumulated depreciation of $20,000 wassold at a loss of $7,000. As a result of this transaction, cash woulda. increase by $23,000b. decrease by $7,000c. increase by $43,000d. decrease by $30,000ANS: A DIF: 2 OBJ: 0236. On the statement of cash flows, the cash flows from financing activities section would includea. receipts from the sale of investmentsb. payments for the acquisition of investmentsc. receipts from a note receivabled. receipts from the issuance of capital stockANS: D DIF: 2 OBJ: 0237. On the statement of cash flows, the cash flows from financing activities section would includeall of the following excepta. receipts from the sale of bonds payableb. payments for dividendsc. payments for purchase of treasury stockd. payments of interest on bonds payableANS: D DIF: 2 OBJ: 0238. Cash dividends paid on capital stock would be reported in the statement of cash flows ina. the cash flows from financing activities sectionb. the cash flows from investing activities sectionc. a separate scheduled. the cash flows from operating activities sectionANS: A DIF: 2 OBJ: 0239. Cash dividends of $80,000 were declared during the year. Cash dividends payable were$10,000 and $15,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year isa. $85,000b. $80,000c. $95,000d. $75,000ANS: D DIF: 2 OBJ: 0240. On the statement of cash flows, a $20,000 gain on the sale of fixed assets would bea. added to net income in converting the net income reported on the income statementto cash flows from operating activitiesb. deducted from net income in converting the net income reported on the incomestatement to cash flows from operating activitiesc. added to dividends declared in converting the dividends declared to the cash flowsfrom financing activities related to dividendsd. deducted from dividends declared in converting the dividends declared to the cashflows from financing activities related to dividendsANS: B DIF: 2 OBJ: 0241. A business issues 20-year bonds payable in exchange for preferred stock. This transactionwould be reported on the statement of cash flows ina. a separate scheduleb. the cash flows from financing activities sectionc. the cash flows from investing activities sectiond. the cash flows from operating activities sectionANS: A DIF: 2 OBJ: 0242. Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on theincome statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?a. $50,000b. $78,000c. $118,000d. $68,000ANS: A DIF: 2 OBJ: 0243. The current period statement of cash flows includes the flowing:Cash balance at the beginning of the period................... $410,000Cash provided by operating activities ............................ 185,000 Cash used in investing activities .................................... 43,000Cash used in financing activities .................................... 97,000 The cash balance at the end of the period isa. $45,000b. $735,000c. $455,000d. $85,000ANS: C DIF: 2 OBJ: 0244. On the statement of cash flows, the cash flows from operating activities section would includea. receipts from the issuance of capital stockb. payment for interest on short-term notes payablec. payments for the acquisition of investmentsd. payments for cash dividendsANS: B DIF: 2 OBJ: 0345. The cost of merchandise sold during the year was $50,000. Merchandise inventories were$12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise totala. $49,000b. $47,000c. $51,000d. $53,000ANS: A DIF: 2 OBJ: 0346. Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at thebeginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method isa. $700,000b. $600,000c. $580,000d. $620,000ANS: D DIF: 2 OBJ: 0347. Operating expenses other than depreciation for the year were $400,000. Prepaid expensesincreased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expensesto be reported on the cash flow statement using the direct method would bea. $353,000b. $413,000c. $447,000d. $383,000ANS: C DIF: 2 OBJ: 0348. The following selected account balances appeared on the financial statements of the FranklinCompany:Accounts Receivable, Jan. 1 ........... $13,000Accounts Receivable, Dec. 31 ........ 9,000Accounts Payable, Jan 1 ................ 4,000Accounts payable Dec. 31 .............. 7,000Merchandise Inventory, Jan 1 ......... 10,000Merchandise Inventory, Dec 31 ...... 15,000Sales ............................................. 56,000Cost of Goods Sold ........................ 31,000The Franklin Company uses the direct method to calculate net cash flow from operatingactivities. Cash collections from customers area. $56,000b. $52,000c. $60,000d. $45,000ANS: C DIF: 3 OBJ: 0349. The following selected account balances appeared on the financial statements of the FranklinCompany:Accounts Receivable, Jan. 1 ......... $13,000Accounts Receivable, Dec. 31 ...... 9,000Accounts Payable, Jan 1 .............. 4,000Accounts payable Dec. 31 ............ 7,000Merchandise Inventory, Jan 1 ....... 10,000Merchandise Inventory, Dec 31 .... 15,000Sales ........................................... 56,000Cost of Goods Sold ....................... 31,000The Franklin Company uses the direct method to calculate net cash flow from operatingactivities. Cash paid to suppliers isa. $39,000b. $33,000c. $29,000d. $23,000ANS: B DIF: 3 OBJ: 0350. Income tax was $400,000 for the year. Income tax payable was $30,000 and $40,000 at thebeginning and end of the year. Cash payments for income tax reported on the cash flow statement using the direct method isa. $400,000b. $390,000c. $430,000d. $440,000ANS: B DIF: 2 OBJ: 0351. Free cash flow isa. all cash in the bankb. cash from operationsc. cash from financing, less cash used to purchase fixed assets to maintain productive。
财务会计英语版课后答案
Chapter 1Page 81.Classify following items as either an expense (E),a revenue(R),an asset(A),or a liability( L);Cash, buildings, salaries of the sales force, $5 owed to a company for work performed, Mortgage to a bank, sales.Answer:Cash—A Buildings—A Salaries of the sales force—E$5 owed—L Mortgage to a bank—L Sales—R2. Classify each of the following as n operating (O), bank (I) , or financing (F) in a statement of cash flows; Wage paid to workers, Cash received form a bank in the form of a mortgage, cash dividends paid to a supplier of inventory, Cash paid to purchase a new machine.Answer:Wage paid—O Cash of mortgage-- F Cash dividends paid -- FCash paid to supplier of inventory—O Cash paid to purchase a machine—IPage111.List several economic decisions that rely on accounting information.Answer:·Whether to grant a loan·How much to pay for a share of common stock.·Whether to grant a rate increase to an electric utility·How much in damages the loser of a lawsuit must pay ·How much of a bonus to pay a plant manager·Whether to enter a new market2. Why do financial statements have footnotes, and what kinds of information might you find in them?Answer:Financial statements have footnotes because financial disclosure is a complex business. The notes tell us some of the specifics about the company environment , what accounting methods the company has used, what the accounting numbers might be if alternative methods had been used, and some of the major contingencies that are not formally included in the statement proper.Page 201.Describe the process of setting accounting standards. What are the roles of all the parties you mention?Answer:The FASB, a private, not-for-profit organization ,sets GAAP in the U.S. It publicly declares an agenda, promulgates "ExposureDrafts" of proposed standards, holds open meetings, and invites input from interested parties. The FASB has been delegated this authority by the SEC, a government agency with legal authority to determine GAAP.2.Think of an example, like the executive compensation example in the chapter, where incentives might exist to bias accounting numbers one way or another.Answer:There are other examples, but here is one that is different. A taxpayer has incentives to bias reported income downward in order to minimize income tax payments. However, it is important to understand that tax accounting rules are different from GAAP, and this book is about GAAP. Chapter 14 covers GAAP for taxes in more detail.Other examples include:·An entrepreneur seeking a loan from a bank or funding from a venture capitalist might have incentives to bias accounting numbers to look favorable.·A firm that is subject to scrutiny for earning excess profits(e.g.,an oil company）might have incentives to bias accounting numbers to look less favorable.·A utility subject to rate regulation might have an incentive tobias accounting numbers to look less favorable in order to gain more generous increases in its rates. (At this writing, there is a rather severe controversy about whether electric utilities in California are genuinely in financial difficulty and should be allowed to continue to impose large rate increase.)Chapter 2Page 381 Define assets, liabilities, and equities.Gave an example ofeach. How are assets valued? How are liabilities valued? Answer:An asset is a probable future economic benefit obtained or controlled by an entity as a result of a past transaction. Cash marketable securities, accounts receivable, inventories, prepaid expenses, patents, copyrights, trademarks, and property, plant and equipment are all examples of assets. A liability isa probable future sacrifice of economic benefits arisingfrom present obligations of an entity to transfer assets or provide services as a result of a past transaction or event.Accounts payable, accrued liabilities, unearned revenues, warranties, and bonds payable are all examples of liabilities.Accounting valuation of assets uses severaldifferent methods, including market value, expected realizable value, lower of cost or market, present value of future cash flows, and historical cost. Accounting valuation of liabilities is the expected amount that will be paid, perhaps adjusted for the time value of money.2. Explain what is meant by the entity concept. Answer:The entity is the person or organization about which accounting's financial history is being written.3 .A company signs a ten-year employee contract with a vicepresident. The salary is $500000 per year, guaranteed. Is this contract an asset? Would it appear on the balance sheet? Explain.Answer:The rights conveyed by the contrat may be an asset from an economic point of view, but they are not an asset under GAAP. The contract would not appear on the balance sheet as an asset, because GAAP does not record executory contracts, which are contracts that require future performance form both parties. That is ,GAAP views the contract as determining what services will be provided, no asset is recognized under GAAP.(Neither is a liability for payment recognized until services have beenperformed.)4 .A company purchased a parcel of land 10 years ago at a cost of $300000.The land has recently been appraised at $900000. At what value is the land carried in the balance sheet? How does the appraisal affect the carrying value in the balance sheet?Answer:The land is on the balance sheet at its historical cost of $300000.The carrying value of the land is unaffected by the appraisal.Page 421、Define debit and credit .What kind of balance ,debit or credit ,would you expect to find in the inventory T-account？In the Common Stock T-account?Answer:A debit is an entry on the left side of a T-account. A credit is an entry on the right side of a T-account. We would except to find a debit balance in Inventory, and credit balances in Bonds Payable and Common Stock. The reason is the convention that increases in assets are debits and increases in liabilities and equities are credits.2、If the trial balances, it means that you have analyzed all the effects of transactions correctly. True or false？Explain. Answer:False. A balanced means that the trial balance is consistent, not necessarily correct. For example. If an arbitrary entry is made that debits Cash and credits Common Stock for an equal amount, the trial balance will balance but it will be wrong. An accounting can receipt of cash and the issuance of common stock, but it alone can not make cash or additional common shares.3﹑Suppose Web sell leases a portion of its space to another company. Web sell’s accounts are debited and credited to record this transaction?Answer:Web sell would debit Cash and a liability, Rent Received in Advance, for the prepayment.Chapter 3Page 571. Define revenue and expense. How does one decide to list an item as revenue in an income statement? What is matching? Answer:Revenues are increases in net assets resulting from operationsover a period of time .Expense are decreases in net assets resulting from operations over a period of time .Revenue is recognized the earnings process is substantially complete , a transaction2. Give an example not found in the text , of an expense that is paid for in cash in a prior accounting period .In a subsequent accounting period.Answer:There are many allowable responses . An example is a patent that is purchased and paid for in one year and used in next .3. Give an example, not found in the text , of a revenue that is received in cash in a prior accounting period . In a subsequent accounting period .Answer:An example is a house painting contractor that receives payment for one-third of the contract price before beginning the painting .4. Explain why it is right to think of an asset as a cost and an expense as an expired cost .Answer:An asset is a future benefit . And there is an opportunity cost associated with not selling it for cash or exchanging it to settleChapter 6Page 120:1.The following table lists the adjustments and has an X in thecolumn indicating the approach:2. We first take adjustment for prepaid insurance and insurance expense. It would be easy to think of this adjustment as focusing on how much of the insurance coverage remained, as opposed to how much was used. In fact, the same type of logic could beused---computing a monthly rate for the coverage and applying that to the months reminding, instead of the months used.Now take adjustment for depreciation expense and accumulated depreciation. Estimating the value of the equipment at year end might be easy, for example, if there is a market for used equipment, or very difficult, for example, if the equipment was specially designed for Websell. Once a value estimate for the equipment at year end is obtained, depreciation expense would be the change in value over the year.Page 1231.$5000×(1+0.06)^10=$5000×1.79085=$8954.242.$5000×(1+0.06/2)^(10×2)=$5000×(1+0.03)^20=$5000×1.80611=$9030.563. $1000×(1.05)^3+$1000×(1.05)^2+$1000×(1.05)^1=$3310.134. ($1000×0.05/5)^13+$1000×(1+0.05/5)^10+$1000×(1+0.05/5)^5=($1000×(1.01)^15)+($1000×(1.01)^10)+($1000×(1.01)^5) =$1160.97+$1104.62+$1051.01=$3316.6Page 1241.x×.(1.07)^3=$3000 x=$3000/(1.07)^3=$2448.892. Calculate the present value at 10% of $1300 received two years from now. If that is greater than $1000, you are better off with the $1300 to be received in two years. If its present value is less that $1000, you better off with $1000 now. $1300/(1.10)^2=$1074.38Therefore, you are better off receiving $1300 two years from now.Another way to do this problem is to take the future value at 10% of $1000. At the end of two years, the $1000 would compound up to:$1000×(1.10)^2=$1210,Which is less than you would have at that point if you took the $1300.3．The most I would be willing to pay is the present value at 8% of the stream of $1000 payment:$1000/(1.08)^1+$1000/(1,08)^2+$1000/(1,08)^3=$925.926+857.339+793.832=$ 2577.1(rounded)Chapter 8Page 1681.Aging takes the balance in accounts receivable at the end of the year, and sorts it by how long ago the transaction occurredthat gave rise to that receivable. Experience has shown that “older” accounts have less likelihood of ever being collected. Percentages of likely uncollectibles for each category are applied to the totals in that category , and the results added to obtain an estimate of the allowance for uncollectibles required to value properly the estimated amount that will be collected from the accounts receivable. The bad debts expense then falls out as a “plug” in the allowance for uncollectibles.The percentage-of-sales method just estimates bad debt expense as a percent of sales, and plug the balance in the allowance account.2. Cash (118)Accounts receivable (118)12/31/2003(to recognize collection of cash from companies owing service co. from 2002 sales)Allow ance for doubtful accounts (7)Accounts receivable (7)12/31/2003(to write off accounts we know will not be collected) Accou nts receivable (125)Sales reven ue (125)12/31/2003(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2003, we would record.06×$125000=$7500 in bad debts expense.B ad debts expense………………………………………7.5 Allowan ce for doubtful accounts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accounts(10.5 is the “plug”,i.e., the number that drops out)Now we move to 2004, where events now proceed as expected . Collections are $117.5 thousand. Cash………………………………………………..117.5 Accounts receivable…………………………………117.512/31/2004(to recognize collection of cash form companies owing service co. from 2003 sales)Allowance for doubtful ac counts………………………7.5Accounts receivable………………………………….7.512/31/2004(to write off accounts we know will not be collected) Accounts receivable (125)Sales revenue (125)12/31/2004(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2004, we would record.06×$125000=$7500 in bad debts expense.Bad debts expense……………………………………7.5 Allowance for doubtful ac counts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)The allowance for doubtful accounts using the peentage-of-sales method looks like this:Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accountsOnly the entries recording bad debt expense are different using the aging method. Instead of the above entries recording bad debt expense, we would have the following analysis: Each year, we would adjust the balance in the allowance for doubtful accounts so that the net receivable ends up at $117500. That is, we would solve $125000-X=$117500,and find that the ending balance in the allowance for doubtful accounts must be $7500.Analyzing the account, we would determine that at 12/31/2003 we must add $4500 to the allowance for doubtful accounts: Bad debts expense………………………………..4.5 Allowanc e for doubtful accounts…………………….4.512/31/2004(to record bad debt expense in anticipation of not collecting 100% of receivables)At 12/31/2004, we must add $7500 to the allowance for doubtful accounts:Bad debts expense………………………………..7.5 Allowan ce for doubtful accounts…………………….7.512/31/2004(to record bad debt expense in anticipation of notcollecting 100% of receivables)Using aging, the allowance for doubtful accounts T-account looks like this:Method two: focus on the ending balance in the allowance for doubtful accounts.Allowance for doubtful accountsChapter 9Page 1831.LIFO is last-in first-out. It means that in computing ending inventoryand cost of goods sold, the cost of items sold is assigned in reverse chronological order of their purchase, beginning from the most regent items purchased in a period. FIFO is first-in, first-out .It means that in computing ending inventory and cost of goods sold, the cost of items sold is assigned in chronological order of their purchase, beginning from the goods on hand at the beginning of the period. Average costmeans that in computing ending inventory and cost of goods sold, the average unit cost of the beginning inventory and items purchased in a period is used to determine the cost of goods sold and remaining inventory.2.Yes, it is still a positive net present value project. In fact, its netpresent value is higher than when the purchase was made at$1.05 per unit, since the cash outflow is reduced but the cash inflow remains the same. The cash outflow on 12/31/01 when purchases are at $0.95 per unit is $114.This means the net cash flow at 12/31/01 is ($4) instead of ($16),and the NPV for Widget Company is:NPV=-100-$4/1.1+$10/ (1.1^2) +$144/ (1.1^3) =$12.82First, we redo the case of FIFO. The inventory T-account is:Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Net incomes are:Widget Incomes using FIFONow we redo the case of FIFO. First, the inventory T-account is: Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Netincomes are:Page 186To calculate the market-to-book ratios and accounting returns on equity: Market-to-book Ratios under Average CostAccounting Rates of Return under Average CostCollecting the results for FIFO from the chapter and these results for average cost, we have:Market-to-book Ratios under Various Cost Flow AssumptionAccounting Rates of Return under Various Cost Flow AssumptionAs is apparent, the market-to-book ratios and accounting rates of return for average cost are between for LIFO and FIFO.2. Because it has more recent costs on the balance sheet in the inventory account, FIFO has market-to-book ratios closer to 1regardless of whether prices rise or fall.Chapter 10Page 1961. The total profit on the transaction is the sales price of $880.00 less the original cost of $734.03:Sales price of securities $880.00Less : original cost ($735.03)Profit on transaction $144.97The cash flows were: $735.03 out on January1, 2001, and$880.00 in on January 3, 2003.There were profit in 2001, 2002, and 2003.In 2001, there was a profit of $81.17.In 2003,there was a profit of $5.00.2. The unadjusted book value of the security on December 31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing its carrying value by $3.83 is required to write it down to its market value: Unrealized loss on market value securities-trading ……3.83 Marketable securities –trading ………… 3.83 If the security were sold for $810.00 on January 3, 2003, the entry would be:Cash ………………………………810.00Marketable securities –trading ………………790.00Gain on marketable securities-trading …………20.001/03/2003(To record the sale of the Marketable securities—trading )Page 1981. When a securities is classified as trading security, profits or losses show up on the income statement in every period from when the security is purchased until when it is sold. when a security is classified as available-for-sale ,profits or losses only show up on the income statement in the period in which thesecurity is sold.2. the unadjusted book value of the security on December 31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing it’s carrying value by $3.83 is required to write it down to it’s market value. however unlike the trading security case ,the unrealized loss is an equity account ,not a temporary account:Unrealized loss on marketable securities-available-for-sale 3.38 Marketable securities –trading ………………3.83To record the sale of the security for $810.00 on January 3,2003: Cash ………810.00Unrealized gain on marketable securities-available-for-sale(58.80-3.83) ………54.97Marketable securities-trading …………790.00Realized gain on marketable securities-available-for-sale ……………74.9712/31/2002(To mark-to-market the Marketable securities—available-for-sale)Chapter 111．a. Under straight-line depreciation, the depreciation expense each year is$600-$100/5 years=$100 per year.b. Under double-declining balance depreciation, the depreciation expense each year is given in the following table:c. Under sum-of-year’-digits depreciation, the depreciation expense each year is given in the following table:Sum-of years’-digits depreciation2. Intangible assets are most often shown in one line that is cost net of amortization. Tangible assets are sometimes shown in three lines: cost , accumulated depreciation, and net .3. Economic depreciation is the change in the economicvalue of the asset. Economic depreciation can be appreciation when the asset increases in value. We seen this already with marketable debt securities, which sometimes increase in value because of unpaid interest4.It is easy and fulfills the requirement of GAAP to provide depreciation using a systematic and rational method. No GAAP depreciation method likely correctly reflects economic depreciation anyway ,so a simple expedient may be good enough.1．Sraight-line depreciation is $100 per year ($300/3 years).Double-declining balance depreciation is given in the following table:2.For straight-line depreciation,the entry is the same each year: Depreciation expense (100)Accumulateddepreciation (100)For double-declining balance depreciation,the entries are: Year1Depr eciation expense (200)Accu mulated depreciation (200)Year2Depreciation expense………………………………66.67 Acc umulated depreciation………………………66.67 Year3.declining balance because depreciation expense under straight-line is only $100,while under double-declining balance depreciation expense is $200.4.If the company buys one asset every year and each asset lasts three years,then in year 4 it will have three assets.Under straight-line depreciation,each of those assets generates a depreciation expense of $100;therefore total depreciation expense would be 3*$100,or $300.Under double-declining balance depreciation,totaldepreciation expense depends on the age of each asset.The company would have one asset in its first year of life,one in its second year of life,and one in its third year.Therefore,total depreciation expense would be:$200+$66.67+$33.33=$300,the same as under straight-line.Both depreciation methods give the same total depreciation because:1.Both methods fully depreciate the assets over their lives.2.The cost of the assets has remained constant.3.The company is in a steady state in which the number ofnew assets purchased in a period equals the number ofold assets being retired in that period.。
财务会计(IFRS) 记账程序( The Recording Process )
• 支付费用：Dr. Expense(s)
xxx
•
Cr.Cash/Acct. Payable xxx
Cr. 。
Ch02-17
2.1.2 借贷程序 – 收入(Revenue)和费用(Expense)
图表2-9.收入 vs 费用的借贷法则
图表2-10.收入 vs 费用的正常余额
• 收入使股东权益 • 收入和股东权益
• 扩展恒等式也必须平衡： 借方总额=贷方总额 。
Ch02-21
练习题 2 – 解析
借贷 – 总结
借贷法则 总结
普通股股本 减少 留存收益减少
普通股股本 增加 留存收益增加
股利增加
股利减少
Cபைடு நூலகம்02-12
借贷 – 总结
资 产 类 账 户/ 费用 负债 & 股东权益 / 收入
Ch02-20
借贷 – 总结
法
Ch02-2
学习目标
1. 解释账户的概念，以及他在记账程序中的运用。
2. 掌握”借方”及”贷方”的含义，
以及它们在记录交易事项中的运用。
3. 确认记账程序的基本步骤。
4. 说明”日记账”的含义
以及在记账程序中的运用，如何协助记录交易。
5. 说明”分类账”的含义
以及在记账程序中所提供的功能。
财务会计题库英文及答案
财务会计题库英文及答案1. Question: What is the purpose of the statement of cash flows in financial accounting?Answer: The purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of an entity, showing how the changes in balance sheet accounts and income affect cash and cash equivalents, and to reveal the entity's financing and investing activities.2. Question: Explain the difference between a debit and a credit in double-entry bookkeeping.Answer: In double-entry bookkeeping, a debit is an entry on the left side of an account that either increases an asset or expense, or decreases a liability, equity, or revenue. A credit is an entry on the right side of an account that increases a liability, equity, or revenue, or decreases an asset or expense.3. Question: What is the accrual basis of accounting?Answer: The accrual basis of accounting is a method of accounting in which revenues and expenses are recognized when they are earned or incurred, not when cash is received or paid. This method provides a more accurate picture of a company's financial performance over a period of time.4. Question: How does depreciation affect a company's financial statements?Answer: Depreciation is a non-cash expense that allocates the cost of a tangible asset over its useful life. It affects the company's financial statements by reducing the asset's carrying value on the balance sheet and decreasing the net income on the income statement, which in turn can affect the retained earnings.5. Question: What is the primary goal of financial statement analysis?Answer: The primary goal of financial statement analysis is to assess the performance and financial condition of a company. It helps investors, creditors, and other stakeholders make informed decisions by evaluating the company's profitability, liquidity, solvency, and overall financial health.6. Question: What is the difference between a journal entry and a ledger entry?Answer: A journal entry records the initial transaction in the general journal, showing the date, accounts affected, and the amounts debited and credited. A ledger entry, on the other hand, is the posting of the journal entry to the appropriate accounts in the general ledger, which summarizes the transactions for each account.7. Question: Explain the matching principle in financialaccounting.Answer: The matching principle in financial accounting requires that expenses be recognized in the same period asthe revenues they helped to generate. This principle ensures that the income statement reflects the actual economic performance of the period and avoids distortions that could arise from recognizing revenues and expenses in different periods.8. Question: What is the purpose of adjusting entries?Answer: Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect the current financial position and performance of the company. They adjust for revenues and expenses that have been incurred but not yet recorded, or cash received or paid butnot yet recognized.9. Question: What is the difference between a budget and a forecast?Answer: A budget is a detailed financial plan thatoutlines expected revenues and expenses for a specific period, often used for internal management and control. A forecast,on the other hand, is a projection of future financial performance based on assumptions and trends, and is typically used for strategic planning and decision-making.10. Question: What is the role of the balance sheet infinancial accounting?Answer: The balance sheet is a financial statement that presents a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, and is used to assess the company's liquidity, solvency, and overall financial stability. The balance sheet must always balance, with total assets equaling the sum of liabilities and equity.。
财务英语第二次作业（含答案）
财务英语第⼆次作业（含答案）1.True or false statements(1) Increasing assets is the impact of credit entries.(2) Salaries, telephone, and rent are asset accounts.(3) The accounting equation is liabilities= assets + equity.(4) Items owned by a business that has money value are known as assets.(5) To purchase “on account” is to create a liability.(6) A withdrawal of cash reduces cash and capital.(7) When all the transactions have been posted and footed, the debits should equal the credits. The test to see if this is so is called a trial balance.(8) The twofold effect of every entry is recorded in double-entry system.(9) Increases in all asset accounts are credited.(10) Increases in all liability accounts are debited.2.Multiple choice(1)Which statement best describes prepaid expense(预付费⽤)?A.Amounts due to the entity from others.B.Amounts received by the entity for services yet to be performed.C.Amounts paid in advance for services the entity will receive in the futureD.Outflows of assets from providing products or services to customers.(2)Peter Ali received $5,000 for some excavation work to be done when the weather permits. Peter thinks it will be at least three weeks before he can start the job. Which statement best describes how the transaction is recorded?A.An asset is debited, and a liability is credited.B.A liability is debited, and an asset if credited.C.A withdrawal is debited, and an asset is credited.D.An asset is debited, and a revenue is credited.(3)During the month of November, Western Company had cash receipts of $15,000 and cash disbursements of $17,250. The November 30 cash balance was $9,500. What was the beginning (November 1) cash balance?A.$(7,250)B.$2,250C.$7,250(4)Which of the following statements about normal account balance is false?A.The normal account balance for a revenue account is a debit balance.B.The normal account balance for a liability is a credit balance.C.The normal account balance for an asset account is a debit balance.D.The normal account balance for an expense account is a debit balance.(5)On October 31, accounts receivable had a normal balance of $3,200. During October, the account was credited for a total of $9,300 and debited for a total of $4,500. What was the balance in the accounts receivable account at the beginning of October?A.A $1,600 credit balance.B.A $1,600 debit balance.C.An $8,000 credit balance.D.An $8,000 debit balance.(6)Which of the following statement is true?A.A journal entry may have one account debited and two accounts credited.B.Prepaid expense is an asset account that has a credit balance.C.Liability accounts have debit balances.D.The amount of a company’s total assets will equal the amount of its total debits.(7)What is the impact of debit entries?A.Increasing assets.B.Increasing expenses.C.Decreasing liabilities.D.All of these are true.(8)On March 31,O’Ryan Company had an accounts payable balance of $98,000. During the month of April, total debits to accounts payable were $58,000, which results from payments to suppliers. The April 30 accounts payable balance was $89,000. What was the amount of credit purchases during April?A.$40,000B.$49,000C.$67,000D.$129,000(9)Assets and liabilities totaled $100,000 and $55,000 respectively at the beginning of the period. During the period assets increased by $20,000 and the liabilities increased by $12,000. What were the beginning and ending balances of the owners’equity?A.$45,000 and $37,000B.$45,000 and $53,000C.$45,000 and $67,000D.$55,000 and $53,000(10)Which event does the following journal entry describe? Accounts payable $1,000A.Provided services on account.B.Paid cash owed to suppliers.C.Incurred expenses on account.D.Collected cash from customers.2.单项选择题得分：3.QuestionAvery Athletics showed the following selected transactions for the month ended May31,2011:May1 Avery invested $200,000 in cash and fitness equipment thathad a fair value of $48,000 in the business.2 Prepaid $14,400 cash for three months’ rent for her fitness studio.3 Purchased new fitness equipment, paying cash of $10,000 and signing a 90-day note payable for the balance of $35,000/3 Completed a fitness consultation for a customer today and received $150.4 Received $14,000 in cash from fitness clients who will use Avery’s facility over the next 12 months.6 Purchase $2,560 in fitness supplies on credit.10 Provided services to a client today on account,$350.15 Paid for the May 6 purchase of fitness supplies.20 Received partial payment from the client of May 10,of $250.30 Paid month-end salaries of $2,500.30 Avery withdrew $10,000 in cash from the business for personal use.30 Received the May telephone bill today, $ 265. It will be paid on June 15.Required:Prepaid journal entries for each of the above transactions.。
会计英语试题及答案
精品文档会计英语试题及答案会计专业英语是会计专业人员职业发展的必要工具。
学习会计专业英语就是学习如何借助英语解决与完成会计实务中涉外的专业性问题和任务。
以下为你收集了会计英语练习题及答案，希望给你带来一些参考的作用。
一、单选题1. Which of the following statements about accounting concepts or assumptions are correct? 1) The money measurement assumption is that items in accounts are initially measured at their historical cost.2) In order to achieve comparability it may sometimes be necessary to override the prudence concept.3) To facilitate comparisons between different entities it is helpful if accounting policies and changes in them are disclosed.4) To comply with the law, the legal form of a transaction must always be reflected in financial statements. A 1 and 3 B 1 and 4 C 3 only D 2 and 32. Johnny had receivables of $5 500 at the startof 2010. During the year to 31 Dec 2010 he makes credit sales of $55 000 and receives cash of $46 500 fromcredit2016 全新精品资料-全新公文范文-全程指导写作–独家原创1 / 88/乙Xjeipisqns uι IUoUJlSoMl!⑴乙IOOlIS θ□ue∣eq S <XUedUJOo e uιsθψ∣!qeι∣ IllaI」noSe 」eθdde XeUJ SuJ列βu∣M0∣∣0j oιμ joq□ιq∕v∖ 9 (i7)t U) α (ε) t U) O ⑵t(L) a(C) t(L) ∀ Onboip OOOL ⑹ MSeo OooI7(C) 」e□ XUedUJOo(乙)Xpedojd PUe t Iueujdinbe tιue∣d (I z) 乙IIO虫SOd ∣eι□ueu⅛ jo juθuuθjejs θq; S <XUedUJOo e uιSlOSSe IllaI」nO-UOU Se 」eθdde XeUJ SuJ列βu∣M0∣∣0j jo q□ιq∕v∖giso□ *Unα (OZnI)川0 e」!j ui tseη O (Odld) JnO jsj⅛ ui JSJIJ g JSOo θβejθΛ∖/ POIlIbQM ∀<z Buιddojp ΘJB sθ□μd UoIIM ΘLUI; e JeXJOJUΘΛUIβuιso∣□ 」oj ΘJ∩B⅛ιsθq6ιq θq; OJ peθ∣ OJ 人剛∣ si SPO屮OuJuoμen∣e ∆XJOJUΘΛUIβUIM0∣∣0jo屮jo M□!M∕∖Λ-PJθMl!3 a ΘJ∩S ION O ON a SO人∀UllOuJOl印SMOIj qse□S < Auedωo□e jo θ□ej θq; UO」eθdde pied spuθp∣Λ∣p PInOqS CJOOOO17L$ a Ja 00017L$ 0 JO 009 8$a 」Cl OOG 8$ ∀∂0L02 θθa Le 样sθ∣qeA∣θ□θJSJUnOooe oιμ UO θ□ue∣eq oιμ si IeilMsjθωojsn□(£) θ□uθp ru c∣ (乙)on」丄(I z) uoμeωjθjuι∣eι□ueu⅛ jo s□μsμθpejeq□ ΘLUOS ΘJB MOlθqpθjs∏ g厂PUe £ G厂PUe乙o £ PUe乙日乙PUe I z Vθ□ue∣eq ∣eμ; oιμ UJOJj pθμιujo uθθq Seq JUnOooe θ∣qeA∣θ□θj }UΘJθq;UO 0乙$7乙$ P θoue∣eq oι∣丄PIUnOooe lθsse sθ∣□ιqθA 」OIOuJ jo *qop θq; 0] POlSOduθθqSeq θ∣□ιqθA」OIOuJ EjO OleSjO spθθ□ojd 09「9$ C4!PaK) e Se θ□ue∣eq ∣eμ; θq; uι pθisι∣ uθθq X∣PΘJJO□UI Seq 089t Z乙$ JUnOooe sesuθdxθ 」OlOuJ oιμ UO θ□ue∣eq oι∣丄•乙JUnOooe θ∣qeλed IIlal o屮uι PalolUOuθθq JOU Seq IIlal jo juθωXed JOj 09「9$ Oq IlSeo oιμ uι UJ列UV - I z <zθθjβe OJ θ□ue∣eq ∣eμ; oιμ θsne□t pθj□θjjo□ UoIIM t p∣no□ SJ O JJθ θ∣qιssod βu∣M0∣∣0j oι∏jθ o∕∖ΛlL P!Ψ∖Λ08l7t920t L$ l!Pθ-∣O 0国266$:θje (Ho乙」OquJOIdoS OC lBωuue9 jo SIeJOJ θ□ue∣eq ∣eμ;oι∣丄Y(17)PUe (C)'⑵ α(17)PUe (C)t(L) O(17)PUe ⑵ t(L) a (C) PUe ⑵'⑴ ∀ pθ∏J□□e puθp∣Λ∣p θ□uθjθjθj c∣ (^) puθ 」eθλ IInllnpθ∏j□□eXeJ θuuo□u! @) JeeX ΘUO uiq;iM PaInleuJ ueoη (乙) 8/frθωes ΘJB jdθ□uo□ Buiqojeuj PUejdθ□uo□ SIenJooe jo XJOOιμ BuiXpepunoιμ (乙) ldθ□uo□ SIenJooe θq;UO peseq ΘJB SlUouJO冋S ∣eι□ueuy Ile (I z) ΘJBjdθ□uo□ SIenJooe JnOqe βu∣M0∣∣0joι∏jθ q□ιqM OLXIUO £ Cl XIUOZ PUe L O LUoln jo ∣∣∀ a AlUO C PUe乙 P 」eθλ UO 」eθλ XeM θωes oιμ uι pθjeθjj θq PInOqSSuJO* t θ∣qejedωo□ θq; θAθ∣q□e OJ 」θpjo uι (g)UJ 」Oj∣e6θ∣ UJOJj SJΘ⅛∣P sιq; j∣ UΘΛΘ SlllOuJ 印印S ∣eι□ueu ⅛ θq; ui UMOqS θq SXeMIe JSnUJ uoμ□esuejj e jo J □Θ⅛Θ ∣eι□jθujujo□ OilHeιμ sueeuu U J 」Oj 」ΘΛO θ□uejsqns (乙) jθsse pexy oιμ UO XlIenUUe IIOwQaIdOP θβjeq□ XUedUJOo Suoprud θq o↑ (I z ) ΘJBSlllOuJoI 印S βu∣M0∣∣0j oι∏jθ q□ιq∕v ∖ Q ：({ H69d790εn..:P! })usnd ([] H XeJJVOJd□Mopu∣M = XeJJVOJ do ■ MO p u ι M )QaUOO ⑹ SSoUoelduJOO精品文档(3) accruals concept deals with any figure thatincurred in the period irrelevant with it ' s paid or not AlUO (I 7) PUe(C) t U)α AlUO (C) PUe (乙)t(L)0 AlUO ⑹ PUe ⑵ t (L) a AlUO ⑹ PUe (C) t (L) ∀ 乙心!∣!qm∣aιOtθtnqμιuo□ s□μsμθpejeq□ θseqj jo q□ιq∕v ∖A. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only二、翻译题1 、将下列分录翻译成英文1. 借：固定资产清理30 000累计折旧10 000贷：固定资产40 0002 ．借：应付票据40 000贷：银行存款40 0002 、将下列词组按要求翻译(中翻英，英翻中) (1) 零用资金(2) 本票(3) 试算平衡(4) 不动产、厂房和设备(5) Notes and coins (6) money order (7) general ledger (8) direct debt (9) 报销(10) revenue and gains三、业务题Johnny set up a business and in the first a few days of trading the following transactions occurred (ignore2016 全新精品资料-全新公文范文-全程指导写作–独家原创5 / 88/9：({ HLZeI790ε∩..:P! })usnd∙([] H XeJJVOJd□Mopu∣M = XeJJVOJ do ■ MO p u ιM)pu∏jθj e」oj UJIq OJ spooβ OOH Pθu」n®」OUJOlSrK)OnboIP V (OL PΘAIΘ□ΘJ si oz$ jθ ISalolι∣! >∣ueg(6 OOH 屮」OM M□!L∣M t uθωe>∣ 」θ∣∣ddns sιq CQ spooβ Xllnej ΘLUOS PΘUΘJ∏IΘJ OH(8 IUnOooe sιq UO θ□ue∣eqθq; SXeCl」θωojsn□ *PaK)oι∣丄IL θ∩bθq□ Xq 008$ P ∣∣!Q θuoqdθ∣θ; e SXeCl OH(9 ΘLUI; UO pθJθ∆∣∣θp si spooβ t jιpθJ□ UO oOO 乙$ 」Oj t uθωe>∣t Jθ∣∣ddns 」θqjoue UJOJjspooβSXnq UOln OH (G θJ∩l∩j OLn uι XeCl o] sesiuuojd」OuJOlSnC) θq; PUe OOO 乙$」Oj OIeS」θqjoue sθ>∣euj XUUqOr (厂θ∩bθq□ Xq SXeCl」θuuoιsn□ θq; - OOOC$」Oj θpθω si θ∣es V (g luθiL∣Xed θq;」eye iq6μ pθJθ∆∣∣θp si spooβ OIn tθ∩bθq□ Xq SXeCl PUe OOO 」oj」θ∣∣ddns e t∣θqes∣ UJOJj spooβ SXnq uθq; OH (乙JUnOooe Ieq sseuisnq sιq uι XΘUOLU sιq jo OOO 08$ SJSΘAUI Θ∏(I z :(X印o屮Ile8/ZIISeO 」0 θsuθdxθ eAijejjsiuiuupe 」CI (9θ∣qeA∣θ□9j SlUnOooe 」。
{财务管理财务会计}财务会计英语练习及答案
{财务管理财务会计}财务会计英语练习及答案CHAPTER13 ACCOUNTINGFORPARTNERSHIPSAND LIMITEDLIABILITYCORPORATIONSANS:TDIF:1OBJ:0320.Anewpartnercontributesaccountsreceivabletoapartnershipwhichappearinth eledgerofhissoleproprietorshipat$20,500andtherewasanallowancefordoubtful accountsof$750.If$600oftheaccountsreceivablesarepletelyworthless,thepart nershipaccountsreceivableshouldbedebitedfor$19,900.ANS:TDIF:2OBJ:0321.Onereasonthatdistributionsofineandlossarepreparedistoobtaintheinforma tiontorecordaclosingentry.ANS:TDIF:1OBJ:0422.Ifnothingisstated,partnershipineisdividedinproportiontotheindividualp artner'scapitalbalance.ANS:FDIF:2OBJ:0423.Thesalaryallocationtopartnersusedindividingnetinewouldalsoappearassal aryexpenseonthepartnershipinestatement.ANS:FDIF:2OBJ:0424.Ifthearticlesofpartnershipprovideforannualsalaryallowancesof$36,000an d$18,000toXandYrespectivelyandnetineis$30,000,X'sshareofnetineis$20,000. ANS:FDIF:2OBJ:0425.Ifthenetineofapartnershipislessthanthetotaloftheallowancesprovidedbyt hepartnershipagreement,thedifferencemustbedividedamongthepartnersinthein e-sharingratio.ANS:FDIF:2OBJ:0426.Theamountthatapartnerwithdrawsasamonthlysalaryallowancedoesnotaffectt hedivisionofnetine.ANS:TDIF:2OBJ:0427.AdevotesfulltimeandBdevotesone-halftimetotheirpartnership.Ifthepartne rshipagreementissilentconcerningthedivisionofnetine,Awillreceivea$20,000 shareofanetineof$30,000.ANS:FDIF:2OBJ:0428.Inthedistributionofine,thenetineislessthanthesalaryandinterestallowan cesgranted,theremainingbalancewillbeanegativeamountthatmustbedividedamon gthepartnersasthoughitwerealoss.ANS:TDIF:2OBJ:0429. Detailsofthedivisionofpartnershipineshouldnormallybedisclosedinthefinanc ialstatements.ANS:TDIF:2OBJ:0430.Wheneverapartnershipisdissolved,theassetsareliquidated.ANS:FDIF:1OBJ:0531.Whenapartnershipdissolves,anewpartnershipisformedandanewpartnershipag reementshouldbeprepared.ANS:TDIF:1OBJ:0532.Manypartnershipsprovidefortheadmissionofnewpartnersorwithdrawalsofpre sentpartnersinthepartnershipagreementsothatthefirmmaycontinuetooperatewi thoutexecutinganewagreement.ANS:TDIF:1OBJ:0533.Apersonmaybeadmittedtoapartnershiponlywiththeconsentofallthecurrentpa rtners.ANS:TDIF:1OBJ:0534.Partnership'sassetaccountsshouldbechangedfromcosttofairmarketvaluewhe nanewpartnerisadmittedtoafirmoranexistingpartnerwithdrawsanddies. ANS:TDIF:2OBJ:0535.Inadmittinganewpartner,thepanychoosestousethepurchaseofaninterestmeth od,thecapitalinterestofthenewpartnerisobtainedfromthecurrentpartnersandb oththetotalassetsandtotalcapitalareincreased.ANS:FDIF:2OBJ:0536.Whenanewpartnerpurchasestheentireinterestofanoldpartner,thenewpartner 'scapitalaccountshouldbecreditedfortheamountheorshepaidtotheoldpartner.46.Ifanewpartneristobeadmittedtoapartnershipandabonusisattributedtotheol dpartnership,thebonusshouldbedividedbetweenthecapitalaccountsoftheorigin alpartnersaccordingtotheircapitalbalances.ANS:FDIF:2OBJ:0547.IfretiringpartnerAsellshisorherinteresttoB,thepartnershipshouldrecord theassetspaidtoAinitsaccountsattheirbookvalues.ANS:FDIF:2OBJ:0548.Whenanewpartnerisadmittedtoapartnership,bonusesattributabletoeitherth eoldpartnershiportotheiningpartnermayberecognizedinaccordancewiththeagre ementamongthepartners.ANS:TDIF:1OBJ:0549.Dissolutionisthetermwhichsolelymeanstoliquidatethepartnership. ANS:FDIF:1OBJ:0650.Inapartnershipliquidation,gainsandlossesonthesaleofpartnershipassetsa redividedamongthepartners'capitalaccountsonthebasisoftheircapitalbalance s.ANS:FDIF:2OBJ:0651.Iftheshareoflossesonrealizationofthesaleofnoncashassetsexceedthebalan ceinapartner'scapitalaccount,theresultingbalanceiscalledadeficiency. ANS:TDIF:1OBJ:0652.Inapartnershipliquidation,ifapartnerhasadebitcapitalbalanceinhisorher capitalaccount,heorsheisresponsibleforcontributingpersonalassetssufficie nttoeliminatethedeficit.ANS:TDIF:2OBJ:0653.Theprocessofwindinguptheaffairsofapartnershipisreferredtoasrealizatio n.ANS:FDIF:1OBJ:0654.Thedistributionofcash,asthefinalprocessinwindinguptheaffairsofapartnership,isbasedontheine-sharingratio.ANS:FDIF:2OBJ:0655.Ifapartner'scapitalbalanceisadebitafterithasabsorbeditsshareoftheloss onrealization,thebalanceisreferredtoasadeficiency.ANS:TDIF:1OBJ:0656.Intheliquidatingprocess,anyuncollectedcashbeesalosstothepartnershipan disdividedamongtheremainingpartners'capitalbalancesbasedontheirine-shari ngratio.ANS:TDIF:2OBJ:0657.Afterallnoncashassetshavebeenconvertedtocashandallliabilitiespaid,A,B ,andChavecapitalbalancesof$10,000(debit),$5,000(debit),and$25,000(credit ).Thecashavailablefordistributiontothepartnersis$10,000.ANS:TDIF:2OBJ:0658.Afterallnoncashassetshavebeenconvertedtocashandallliabilitiespaid,A,B ,andChavecapitalbalancesof$15,000(credit),$10,000(debit),and$30,000(cred it).C'sshareofthecashtobedistributedis$30,000.ANS:FDIF:2OBJ:0659.Aventurecapitalistisanindividualorfirmthatprovidescreditfinancingtoth epany.ANS:FDIF:1OBJ:0760.IPOisanacronymthatstandsforinitialpublicofferingANS:TDIF:1OBJ:0761.Underwritingfirmsorinvestmentbankershelpapanynotonlydeterminetheoffer ingpriceforitstock,butalsohelpmarketthestocktotheirclientsandthepublic. ANS:TDIF:1OBJ:07MULTIPLECHOICE1.Whichofthefollowingischaracteristicofageneralpartnership?a.Thepartnershaveco-ownershipofpartnershipproperty.b.Thepartnershipissubjecttofederalinetax.10.Accountingfortheday-to-dayactivitiesforapartnershiporLimitedLiability Corporationisa.thesameastheaccountingforanyotherformofbusinessb.thesameastheaccountingforasoleproprietorshiponlyc.isnotthesameastheaccountingforanyotherformofbusinessd.thesameastheaccountingforacorporationonlyANS:ADIF:1OBJ:0211.Whenapartnershipisformed,assetscontributedbythepartnersshouldberecord edonthepartnershipbooksattheira.bookvaluesonthepartners'bookspriortotheirbeingcontributedtothepartnershipb.fairmarketvalueatthetimeofthecontributionc.originalcoststothepartnercontributingthemd.assessedvaluesforpropertypurposesANS:BDIF:2OBJ:0312.Aspartoftheinitialinvestment,apartnercontributesequipmentthathadorigi nallycost$100,000andonwhichaccumulateddepreciationof$75,000hasbeenrecord ed.Ifsimilarequipmentwouldcost$150,000toreplaceandthepartnersagreeonaval uationof$40,000forthecontributedequipment,whatamountshouldbedebitedtothe equipmentaccount?a.$40,000b.$150,000c.$100,000d.$75,000ANS:ADIF:2OBJ:0313.Aspartoftheinitialinvestment,Oswaldcontributesaccountsreceivablethath adabalanceof$25,000intheaccountsofasoleproprietorship.Ofthisamount,$1,25 0ispletelyworthless.Fortheremainingaccounts,thepartnershipwillestablisha provisionforpossiblefutureuncollectibleaccountsof$750.TheamountdebitedtoAccountsReceivableforthenewpartnershipisa.$23,000b.$25,000c.$24,250d.$23,750ANS:DDIF:2OBJ:0314.JackandJillshareineandlossesina2:1ratioafterallowingforsalariestoJack of$24,000and$30,ineforthepartnershipis$48,000.Ineshouldbedi videdasfollows:a.Jack,$24,000;Jill,$24,000b.Jack,$21,000;Jill,$27,000c.Jack,$32,000;Jill,$16,000d.Jack,$20,000;Jill,$28,000ANS:DDIF:2OBJ:0415.FredandEthelshareineequally.Duringthecurrentyearthepartnershipnetinew as$40,000.Fredmadewithdrawalsof$12,000andEthelmadewithdrawalsof$17,000.A tthebeginningoftheyear,thecapitalaccountbalanceswere:Fredcapital,$42,000 ;Ethelcapital,$58,000.Fred'scapitalaccountbalanceattheendoftheyearisa.$76,500b.$64,500c.$62,000d.$50,000ANS:DDIF:2REF:0416.Partnershipineandlossesareusuallydividedonthebasisofinterest,salaries ,andstatedratiosbecausea.partnersseldomcontributetimeandresourcesequallyb.thismethodreflectstheamountoftimedevotedtothepartnershipbythepartnersc.itissimplerthanfollowingthelegalrulesd.itpreventsargumentsamongthepartnersANS:ADIF:1OBJ:0417.Aratioof3:2:1isthesameasa.30%:20%:10%b.1/2:1/3:1/6c.3/10:2/10:1/20d.both(a)and(c)ANS:BDIF:2OBJ:0418.CandDformapartnershipinwhichCcontributes$50,000inassetsandagreestodev otehalftimetothepartnership.Dcontributed$40,000inassetsandagreestodevote fulltimetothepartnership.HowwillCandDshareinthedivisionofine?a.5:8b.1:2c.1:1d.5:4ANS:CDIF:2OBJ:0419.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartne rship.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetineof$90 ,000isallocatedtoX?a.$60,000b.$43,000c.$45,000d.$47,000ANS:DDIF:3OBJ:0420.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartnership.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetineof$50 ,000isallocatedtoX?a.$33,333b.$23,000c.$25,000d.$27,000ANS:DDIF:3OBJ:0421.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartne rship.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetlossof$1 0,000isallocatedtoX?a.$10,000b.$3,000c.$5,000d.$7,000ANS:CDIF:3OBJ:0422.ThearticlesofpartnershipforABPartnershipprovideforasalaryallowanceof$ 5,000permonthforpartnerB,withthebalanceofnetinetobedividedequally.IfBmad eanadditionalinvestmentof$10,000duringtheyearandwithdrew$4,000permonth,a ndnetinefortheyearwas$90,000,bywhatamountdidB'scapitalincreaseduringthey ear?a.$85,000b.$10,000c.$37,000ANS:CDIF:3OBJ:0423.Ifthereisnowrittenagreementastothewayinewillbedividedamongpartnersa.theywillshareineandlossesequallyb.theywillshareineandlossesaccordingtotheircapitalbalancesc.theywillshareineandlossesaccordingtothetimedevotedtothebusiness.d.therereallyisnopartnershipagreementANS:ADIF:1OBJ:0424.PartnerAhasacapitalbalanceof$20,000anddevotesfulltimetothepartnership .PartnerBhasacapitalbalanceof$30,000anddevoteshalftimetothepartnership.I nwhatratioisnetinetobedivided?a.3:5b.1:1c.2:3d.1:2ANS:BDIF:2OBJ:0425.Detailsofthedivisionofnetineforapartnershipshouldbediscloseda.intheassetsectionofthebalancesheetb.inthepartners’subsidiaryledgerc.inthestatementofcashflowsd.intheinestatementANS:DDIF:2OBJ:0426.DengandDangarepartnerswhoshareineintheratioof3:2.Theircapitalbalances are$40,000and$60,000respectively.IneSummaryhasacreditbalanceof$20,000.Wh atisDeng'scapitalbalanceafterclosingIneSummarytoCapital?a.$30,000b.$52,000c.$28,000ANS:BDIF:2OBJ:0427.SelmapaysSally$39,000forher30%interestinapartnershipwithtotalnetasset sof$120,000.Followingthistransaction,Selma'scapitalaccountshouldhaveacre ditbalanceofa.$36,000b.$39,000c.$33,000d.morethan$39,000ANS:ADIF:3OBJ:0528.Nellieisadmittedtoanexistingpartnershipbyinvestingcash.Nellieagreesto payabonusforherownershipinterestbecauseofthepastsuccessofthepartnership. WhenNellie'sinvestmentinthepartnershipisrecordeda.hercapitalaccountwillbecreditedformorethanthecashsheinvestedb.hercapitalaccountwillbecreditedfortheamountofcashsheinvestedc.abonuswillbecreditedfortheamountofcashsheinvestedd.abonuswillbedistributedtotheoldpartners'capitalaccounts.ANS:DDIF:3OBJ:0529.PeterandPaularepartners.ThepartnershipcapitalofPeteris$40,000andPauli s$70,000.PetersellshisinterestinthepartnershiptoMaryfor$50,000.Thejourna lentrytorecordtheadmissionofMaryasanewpartnerwouldincludea.acredittoMary'scapitalfor$40,000b.acredittoPaul'scapitalfor$10,000c.acreditMary'scapitalfor$50,000d.acredittoMary'scapitalfor$40,000andacredittoPaul'scapitalfor$10,00ANS:ADIF:3OBJ:0530.Whenapartnerdies,thecapitalaccountbalancesoftheremainingpartnersc.$25,000d.$35,000ANS:CDIF:3OBJ:0534.Anewpartnermaybeadmittedtoapartnershipbya.inheritingapartnershipinterestb.contributingassetstothepartnershipc.purchasingaspecificquantityofassetsfromthepartnershipd.theconsentofthemajorityofthecurrentpartnersANS:BDIF:2OBJ:0535.Achangeintheownershipofapartnershipresultsinthea.consolidatingofthepartnershipb.liquidatingofthepartnershipc.realizationofthepartnershipd.dissolutionofthepartnershipANS:DDIF:1OBJ:0536.Whenanewpartnerisadmittedtoapartnership,thereshouldbea(n)a.revaluationofassetsb.realizationofassetsc.allocationofassetsd.returnofassetsANS:ADIF:1OBJ:0537.Whenanewpartnerisadmittedtoapartnership,thereshouldbea(n)a.thetotalassetsofthepartnershipincreaseb.newcapitalaccountisaddedtotheledgerforthenewpartnerc.thetotalowner'sequityofthepartnershipincreasesd.thecashreceivedbythecurrentpartnerrepresentstheamountofthedebittothatpartner'scapitalaccount.ANS:BDIF:2OBJ:0538.Whenanadditionalpartnerisadmittedtoapartnershipbycontributionofassets tothepartnershipa.thetotalassetsofthepartnershipdonotchangeb.noliabilitiescanbecontributedatthesametimec.theamountofthecashcontributionisthesameastheamountofthedebittothenewpartner'scapitalaccountd.thetotaloftheowner'sequityaccountsincreasesANS:DDIF:2OBJ:0539.Whenanewpartnerisadmittedtoapartnershipa.abonusmaybeattributabletotheoldpartnerb.abonusmayonlyresultfrommorecashbeinggivenbythenewpartnerthanthevalueoftheoftheassetsbeingpurchasedc.abonusagreeduponbythepartnersisrecordedasanassetsolongastheamountiswithintherangesetbytheSECd.abonusisnotrecordedANS:ADIF:2OBJ:0540.TheCDPartnershipownsinventorythatwaspurchasedfor$65,000,hasacurrentre placementcostof$62,500,andispricedtosellfor$95,000.Atwhatamountshouldthe inventoryberecordedintheaccountsofthenewpartnershipifAistobeadmitted?a.$97,000b.$62,500c.$65,000d.$95,000ANS:BDIF:2OBJ:0541.ImmediatelypriortotheadmissionofA,theXYPartnershipassetshadbeenadjust edtocurrentmarketprices,andthecapitalbalancesofXandYwere$40,000and$60,00 0respectively.Ifthepartiesagreethatthebusinessisworth$150,000,whatisthea mountofbonusthatshouldberecognizedintheaccountsattheadmissionofA?b.$0c.$40,000d.$50,000ANS:DDIF:2OBJ:0542.StanandOlliearepartnerswhoshareineintheratioof2:3andhavecapitalbalanc esof$50,000and$30,000respectively.Rayisadmittedtothepartnershipandisgive na40%interestbyinvesting$20,000.WhatisStan'scapitalbalanceafteradmitting Ray?a.$20,000b.$25,000c.$42,000d.$18,000ANS:CDIF:3OBJ:0543.StanandOlliearepartnerswhoshareineintheratioof2:3andhavecapitalbalanc esof$30,000and$50,000respectively.Rayisadmittedtothepartnershipandisgive na10%interestbyinvesting$20,000.WhatisOllie'scapitalbalanceafteradmittin gRay?a.$56,000b.$34,000c.$20,000d.$44,000ANS:ADIF:3OBJ:0544.Tim,Don,andHansarepartnerswithcapitalbalancesof$20,000,$30,000,and$50 ,000respectively.Theyshareineintheratioof3:2:1.IneSummarywithadebitbalan ceof$30,000isclosedtothecapitalaccounts.Donwithdrawsfromthepartnership.H owmuchcashdoeshegetuponwithdrawal?a.$30,000c.$40,000d.$24,000ANS:BDIF:3OBJ:0545.AandBarepartnerswhoshareineintheratioof1:2andhavecapitalbalancesof$40 ,000and$70,000atthetimetheydecidetoterminatethepartnership.Afterallnonca shassetsaresoldandallliabilitiesarepaid,thereisacashbalanceof$80,000.Wha tamountoflossonrealizationshouldbeallocatedtoA?a.$80,000b.$10,000c.$20,000d.$30,000ANS:BDIF:3OBJ:0646.Apartnershipliquidationoccurswhena.anewpartnerisadmittedb.apartnerdiesc.theownershipinterestofonepartnerissoldtoanewpartnerd.theassetsaresold,liabilitiespaid,andbusinessoperationsterminated ANS:DDIF:1OBJ:0647.ThebalancesheetofMarilynandMonroewasasfollowsimmediatelypriortothepar tnershipbeingliquidated:cash,$20,000;otherassets,$160,000;liabilities,$4 0,000;Marilyncapital,$60,000;Monroecapital,$80,000.Theotherassetsweresol dfor$139,000.MarilynandMonroeshareprofitsandlossesina2:1ratio.Asafinalca shdistributionfromtheliquidation,Marilynwillreceivecashtotalinga.$46,000b.$51,000c.$60,000d.$49,500ANS:ADIF:3OBJ:0648.JimmyJerryandJohnnydecidetoliquidatetheirpartnership.Allassetsaresold andtheliabilitiesarepaid.Followingthesetransactions,thecapitalbalancesan dprofitandlosspercentagesareasfollows:Jimmy,$27,000and30%;Jerry,$(12,000 )and40%;Johnny,$43,000and30%.Jerryisunabletocontributeanyassetstoreducet hedeficit.HowmuchcashwillJimmyreceiveasaresultsofthepartnershipliquidati on?a.$27,000b.$21,000c.$23,400d.$15,000ANS:BDIF:3OBJ:0649.Theremainingcashofapartnership(aftercreditorshavebeenpaid)uponliquida tionisdividedamongpartnersaccordingtotheira.capitalbalancesb.contributionofassetsc.drawingbalancesd.inesharingratioANS:ADIF:2OBJ:0650.Againorlossonrealizationisdividedamongpartnersaccordingtotheira.inesharingratiob.capitalbalancesc.drawingbalancesd.contributionofassetsANS:ADIF:2OBJ:0651.AandBarepartnerswhoshareineintheratioof3:2andhavecapitalbalancesof$50 ,000and$90,000atthetimetheydecidetoterminatethepartnership.Afterallnonca shassetsaresoldandallliabilitiesarepaid,thereisacashbalanceof$90,000.How muchcashshouldbedistributedtoA?b.$20,000c.$30,000d.$45,000ANS:BDIF:3OBJ:0652.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$40,000Dr.;andZ,$30,000Cr.Howmuchca shisavailablefordistributiontothepartners?a.$120,000b.$30,000c.$40,000d.$90,000ANS:CDIF:3OBJ:0653.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$40,000Dr.;andZ,$30,000Cr.Howmuchca shshouldbedistributedtoXassumingthatYpaysthedeficiency?a.$50,000b.$20,000c.$30,000d.$40,000ANS:DDIF:3OBJ:0654.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$20,000Cr.;andZ,$30,000Dr.Assumetha taftertheavailablecashisdistributedtothepartners,Zpays$15,000ofthedefici encytothefirm.Howmuchofthe$15,000shouldbedistributedtoX?b.$0c.$5,000d.$10,000ANS:CDIF:3OBJ:06PROBLEM1.EdandFrankformapartnershipbybiningtheassetsoftheirseparatebusinesses.E dcontributesaccountsreceivablewithafaceamountof$50,000andequipmentwithac ostof$180,000andaccumulateddepreciationof$100,000.Thepartnersagreethatth eequipmentistobepricedat$70,000,that$2,500oftheaccountsreceivableareplet elyworthlessandarenottobeacceptedbythepartnership,andthat$1,500isareason ableallowancefortheuncollectibilityoftheremainingaccountsreceivable.Fran kcontributescashof$20,000andmerchandiseinventoryof$49,500.Thepartnersagr eethatthemerchandiseinventoryistobepricedat$51,000.Journalizetheentriest orecordinthepartnershipaccounts(a)Ed'sinvestmentand(b)Frank'sinvestment. ANS:a)AccountsReceivable......................47,500 Equipment................................70,000 AllowanceforDoubtfulAccounts........1,500Ed,Capital............................116,000(b)Cash.....................................20,000 MerchandiseInventory.............51,000Frank,Capital.........................71,000DIF:2OBJ:032.MaryHartmann,soleproprietorofahardwarebusiness,decidestoformapartnersh ipwithNedIsaacs.Mary'saccountsareasfollows:BookValueMarketValue---------------------------------Cash$20,000$20,000AccountsReceivable(net)52,00045,000Inventory112,000125,000Land40,000100,000Building(net)300,000340,000AccountsPayable25,00025,000MortgagePayable75,00075,000Nedagreestocontribute$70,000fora20%interest.Journalizetheentriestorecord (a)Mary'sinvestmentand(b)Ned'sinvestment.ANS:(a)Cash......................20,000AccountsReceivable.....45,000 Inventory.................125,000 Land......................100,000 Building..................340,000AccountsPayable........25,000MortgagePayable........75,000MaryHartmann,Capital..530,000(b)Cash......................70,000MaryHartmann,Capital....50,000NedIsaacs,Capital.....120,000DIF:3OBJ:353.CarlandDavidhavecapitalbalancesof$100,000and$300,000respectively.Carld evotesfulltimeandDavidone-halftimetothebusiness.Determinethedivisionof$9 0,000ofnetineundereachofthefollowingassumptions:(a)Noagreementastodivisionofnetine.(b)Inratioofcapitalbalances.(c)Inratiooftimedevotedtobusiness.(d)Interestof10%oncapitalbalancesandremainderequally.(e)Interestof10%oncapitalbalances,salariesof$40,000toCarland$20,000toDavid,andtheremainderequally.ANS:CarlDavidComputations---------------------(a)$45,000$45,000Carl:50%$90,000David:50%$90,000(b)$22,500$67,500Carl:1/4$90,000David:3/4$90,000(c)$60,000$30,000Carl:2/3$90,000David:1/3$90,000(d)$35,000$55,000Carl:[(10%$100,000)+(1/2$50,000)]David:[(10%$300,000)+(1/2$50,000)](e)$45,000$45,000Carl:[(10%x$100,000)+$40,000-(1/2$(10,000)]David:[(10%$300,000)+$20,000-(1/2$(10,000)]DIF:3OBJ:044.ClintonandDolehadcapitalbalancesof$120,000and$180,000respectivelyatthe beginningofthecurrentfiscalyear.Thearticlesofpartnershipprovideforsalary allowancesof$18,000and$20,000respectively,anallowanceofinterestat12%onth ecapitalbalancesatthebeginningoftheyear,withtheremainingnetinedividedequ ineforthecurrentyearwas$100,000.(a)Presenttheinedivisionsectionoftheinestatementforthecurrentyear.(b)Assumingthatthenetinehadbeen$50,000insteadof$100,000,presenttheinediv isionsectionoftheinestatementforthecurrentyear.ANS:(a) Netine............................$100,000CDTotalDivisionofnetine:----------------------Salaryallowance...........$18,000$20,000$38,000Interestallowance.........14,40021,60036,000 Remainingine...........13,00013,00026,000----------------------Netine...................$45,400$54,600$100,000===============(b)Netine....................$50,000Divisionofnetine:Salaryallowance............$18,000$20,000$38,000 Interestallowance..........14,40021,60036,000----------------------Total.....................$32,400$41,600$74,000Excessofallowancesovernetine.12,00012,00024,000----------------------Netine....................$20,400$29,600$50,000==================DIF:3OBJ:02,045.CandDhadcapitalbalancesof$60,000and$120,000respectivelyonJanuary1ofthe currentyear.OnMay8,Cinvestedanadditional$10,000inthepartnership.Duringth eyear,CandDwithdrew$25,000and$35,000respectively.Afterclosingallexpensea ndrevenueaccountsattheendoftheyear,IneSummaryhasacreditbalanceof$90,000. Thenetineisdividedintheratioof2:3afterasalaryallowanceof$40,000toC.(a)Journalizetheentriestoclosetheinesummaryaccountandthedrawingaccounts.(b)Preparethestatementofowner'sequityforthecurrentyear.ANS:(a)IneSummary.......................90,000C,Capital.............................60,000D,Capital.............................30,000C,Capital...............................25,000D,Capital...............................35,000C,Drawing.............................25,000D,Drawing.............................35,000(b)CandDStatementofOwner'sEquityForYearEndedDecember31================================================== ===========CDTotal------------------------Capital,January1......$60,000$120,000$180,000Additionalinvestmentduringtheyear.............10,000----10,000------------------------$70,000$120,000$190,000Netinefortheyear......60,00030,00090,000------------------------$130,000$150,000$280,000Withdrawalsduringtheyear...25,00035,00060,000------------------------Capital,December31$105,000$115,000$220,000====================DIF:1OBJ:02,046.BenGumbelandFredHowe,partnerssharingnetineintheratioof2:1,admitAlanBro kawtothepartnershipinaccordancewiththefollowingagreement:(1)Merchandiseinventoryrecordedinthepartnershipaccountsat$62,500istobere valuedatitscurrentreplacementpriceof$67,000.(2)Brokawistoinvest$48,000incashfora30%interestinthepartnership,whichhastotalnetassets(assetsminusliabilities)of$130,000aftertheinventoryisreval ued.(3)Theine-sharingratioofGumbel,Howe,andBrokawistobe2:1:1.(a)Journalizetheentriestorecordtherevaluationofmerchandiseinventory,andt headmissionofBrokawtothepartnership.(b)Afewyearslater,thecapitalbalancesofGumbel,Howe,andBrokawwere$140,000, $90,000,and$55,000respectively.Atthistime,MarvinKingisadmittedtothepartn ershipbythepurchaseofone-halfofGumbel'sinterestfor$80,000.Journalizethee ntrytorecordtheadmissionofKingtothepartnership.ANS:(a)MerchandiseInventory...........4,500BenGumbel,Capital.....................3,000FredHowe,Capital......................1,500 Cash......................................48,000BenGumbel,Capital.....................6,000FredHowe,Capital......................3,000AlanBrokaw,Capital....................39,000(b)BenGumbel,Capital..............70,000MarvinKing,Capital....................70,000DIF:3OBJ:057.AnneKlineandBethLewis,partnersinClassyBoutique,havecapitalbalancesof$40, 000and$60,000respectively.CarolMartinjoinsthepartnershipbybuyingone-half ofAnne'sinterestfor$30,000.Inaddition,becauseofCarol'soutstandingsalessk ills,thepartnersagreetoincreaseherinterestto40%ifsheinvestsanother$10,000.Theine-sharingratioofKline,Lewis,andMartinis4:3:1.(a)JournalizetheentriestorecordtheadmissionofMartintothepartnership.(b)ImmediatelyafterMartin'sadmissiontothepartnership,Lewissellsone-fourt hofherinteresttoDebNewtonfor$35,000.Journalizetheentrytorecordthistransaction.ANS:(a)AnneKline,Capital..............20,000CarolMartin,Capital.............20,000 Cash................................10,000AnneKline,Capital...............8,000BethLewis,Capital...............6,000CarolMartin,Capital.............24,000(b)BethLewis,Capital.............13,500DebNewton,Capital...............13,500DIF:3OBJ:058.Immediatelypriortotheprocessofliquidation,partnersM,N,andOhavecapitalb alancesof$70,000,$20,000,and$30,000respectively.Thereisacashbalanceof$10 ,000,noncashassetstotal$160,000,andliabilitiestotal$50,000.Thepartnerssh arenetineandlossesintheratioof2:2:1. Journalizetheentriestorecordtheliquidationoutlinedbelow,usingAssetsasthe accounttitleforthenoncashassetsandLiabilitiesastheaccounttitleforallcred itors'claims.(a)Soldthenoncashassetsfor$80,000incash.(b)Dividedthelossonrealization.(c)Paidtheliabilities.(d)Receivedcashfromthepartnerwiththedeficiency.(e)Distributedthecashtothepartners.ANS:(a)Cash....................................80,000 LossonRealization..................80,000 Assets................................160,000(b)M,Capital..............................32,000N,Capital..............................32,000O,Capital..............................16,000 LossonRealization...................80,000(c)Liabilities.............................50,000 Cash..................................50,000(d)Cash....................................12,000N,Capital............................12,000(e)M,Capital..............................38,000O,Capital..............................14,000 Cash..................................52,000DIF:3OBJ:069.Afterdiscontinuingtheordinarybusinessoperationsandclosingtheaccountson May7,theledgerofthepartnershipofA,B,andCindicatedthefollowing: Cash..............................$7,500 NoncashAssets...............105,000 Liabilities.......................$27,500A,Capital........................45,000B,Capital........................15,000C,Capital........................25,000----------------$112,500$112,500================Thepartnerssharenetineandlossesintheratioof3:2:1.BetweenMay7-30,thenonca shassetsweresoldfor$120,000,theliabilitieswerepaid,andtheremainingcashwa sdistributedtothepartners.(a)Prepareastatementofpartnershipliquidation.(b)Assumethesamefactsasin(a),exceptthatthenoncashassetsweresoldfor$45,00 0andanypartnerwithacapitaldeficiencypaystheamountofthedeficiencytothepar tnership.Prepareastatementofpartnershipliquidation.ANS:。
财务类英语试题及答案
财务类英语试题及答案一、选择题（每题1分，共10分）1. Which of the following is a common financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. All of the above2. The term "equity" in finance refers to:A. Money owed to a company.B. Money invested in a company.C. Money earned by a company.D. Money spent by a company.3. What is the formula for calculating the return on investment (ROI)?A. ROI = (Net Income / Total Assets) * 100B. ROI = (Total Assets / Net Income) * 100C. ROI = (Net Profit / Cost of Investment) * 100D. ROI = (Cost of Investment / Net Profit) * 1004. The process of forecasting a company's future financial position is known as:A. BudgetingB. ForecastingC. PlanningD. Analysis5. Which of the following is not a type of financial risk?A. Credit riskB. Market riskC. Liquidity riskD. Fixed risk6. The term "leverage" in finance is used to describe:A. The use of borrowed money to increase potential returns.B. The process of selling a financial asset.C. The amount of money a company has in the bank.D. The ratio of a company's equity to its debt.7. What does "EBIT" stand for in financial analysis?A. Earnings Before Interest and TaxesB. Earnings Before Income and TaxesC. Earnings Before Interest and TotalD. Earnings Before Interest, Taxes, and Depreciation8. The "time value of money" concept implies that:A. Money received in the future is worth less than money received today.B. Money received in the past is worth more than money received today.C. Money has no value over time.D. The value of money is constant over time.9. Which of the following is a method of financial analysis?A. SWOT analysisB. PEST analysisC. Ratio analysisD. Porter's Five Forces analysis10. The "break-even point" in finance is the point at which:A. A company's revenue equals its expenses.B. A company's net income is zero.C. A company's assets equal its liabilities.D. A company's cash flow is positive.答案：1. D2. B3. C4. B5. D6. A7. A8. A9. C10. A二、填空题（每题1分，共5分）11. The __________ is a financial statement that shows a company's assets, liabilities, and equity at a particular point in time.Answer: Balance Sheet12. The __________ is the difference between revenue and expenses during a specific period.Answer: Net Income13. In finance, the term "capital" often refers to the__________ of the business.Answer: Owners' Equity14. If a company's current assets are greater than itscurrent liabilities, it is said to have a positive __________. Answer: Working Capital15. The __________ is a measure of how well a company can pay its current debts.Answer: Quick Ratio三、简答题（每题5分，共10分）16. What is the purpose of a financial statement analysis?Answer: The purpose of financial statement analysis is to assess the performance and financial health of a company. It helps investors, creditors, and other stakeholders to make informed decisions about the company's financial stability, profitability, and risk.17. Explain the difference between "operating activities" and "financing activities" in the context of a cash flow statement.Answer: Operating activities in a cash flow statement referto the cash transactions that are directly related to thecore business operations of the company, such as cashreceived from sales and cash paid for expenses. Financing activities, on the other hand, involve cash transactions related to the company's financing arrangements, such as issuing or repaying debt, issuing or buying back shares, and paying dividends.四、计算题（每题5分，共5分）18. If a company has a net profit of $100,000 and a cost of investment of $500,000, what is the ROI?Answer: ROI = (Net Profit / Cost of Investment) * 100ROI = (100,000 / 500,000) * 100ROI = 20%五、论述题（每题10分，共10分）19. Discuss the importance of financial planning in business management.Answer: Financial planning is a critical component of business management as it helps in setting financial goals, allocating resources efficiently, and forecasting。
中级财务会计英文版.课后答案(chap2)word精品文档15页
Exercise 2-4 Requirement 1Exercise 7-4 (concluded)Requirement 3Exercise 2-7Requirement 1Estimated returns = 4% x $11,500,000 = $460,000 Less: Actual returns (450,000)Exercise 2-7 (continued)Requirement 2Beginning balance in allowance account $300,000 Add: Year-end estimate 460,000 Less: Actual returns (450,000) Ending balance in allowance account $310,000Exercise 2-8Requirement 1Bad debt expense = $67,500 (1.5% x $4,500,000)Requirement 2Allowance for uncollectible accountsBalance, beginning of year $42,000 Add: Bad debt expense for 2019 (1.5% x $4,500,000) 67,500 Less: End-of-year balance (40,000) Accounts receivable written off $69,500 Requirement 3$69,500 — the amount of accounts receivable written off.Exercise 2-9Requirement 1Balance, beginning of year $32,000 Deduct: Receivables written off (21,000) Add: Collection of receivable previously written off 1,200 Balance, before adjusting entry for 2019 bad debts 12,200 Required allowance: 10% x $625,000 (62,500) Bad debt expense $50,300Requirement 2Current assets:Accounts receivable, net of $62,500 allowancefor uncollectible accounts $562,500Exercise 2-10Using the direct write-off method, bad debt expense is equal to actual write-offs. Collections of previously written-off receivables are recorded as revenue.Allowance for uncollectible accounts:Balance, beginning of year $17,280Deduct: Receivables written off (17,100)Add: Collection of receivables previously written off 2,200Less: End of year balance (22,410)Bad debt expense for the year 2019 $20,030 Exercise 2-11($ in millions)Allowance for uncollectible accounts:Balance, beginning of year $16Add: Bad debt expense 14Less: End of year balance (18)Write-offs during the year $ 12*Accounts receivable analysis:Balance, beginning of year ($1,084 + 16)$ 1,100Add: Credit sales 4,271Less: Write-offs* (12)Less: Balance end of year ($953 + 18) (971)Cash collections $4,388 Exercise 2-12Requirement 22019 income before income taxes would be understated by $900 2019 income before income taxes would be overstated by $900.Exercise2-13Requirement 2$ 1,800 interest for 9 months÷ $28,200 sales price= 6.383% rate for 9 monthsx 12/9to annualize the rate_______= 8.511% effective interest rateExercise 2-14Requirement 1Book value of stock $16,000Plus gain on sale of stock 6,000= Note receivable $22,000Interest reported for the year= 10% rate Divided by value of note $ 22,000 Requirement 2Exercise 2-18Mountain High retains significant risks and rewards and therefore must treat the transfer as a secured borrowing. The accounts receivable stay on the balance sheet ofExercise 2-19Step 3: Deduct discount to calculate cash proceeds.Exercise 2-21Step 3: Deduct discount to calculate cash proceeds.Exercise 7-21 (continued)Step 4: To record a loss for the difference between the cash proceeds and theExercise 2-21 (concluded) Requirement 2。
财务会计(英)答案
CHAPTER 11-1 Accounting is a process of identifying, recording, summarizing and reporting economic information to decision makers.1-2 No. Accounting is about real information about real companies.In learning accounting it is helpful to see accounting reports from various companies. This helps put the rules and techniques of accounting into a framework that makes them easier to understand.1-3 Examples of decisions that are likely to be influenced by financial statements include choosing where to expand or reduce operations, lending money, investing ownership capital, and rewarding mangers.1-4 Users of financial statements include managers, lenders, suppliers, owners, income tax authorities, and government regulators.1-5 The major distinction between financial accounting and management accounting is their use by two classes of decision makers. Management accounting is concerned mainly with how accounting can serve internal decision makers such as the chief executive officer and other executives. Financial accounting is concerned with supplying information to external users.1-6 Balance sheets are also called statements of financial condition and statements of financial position.1-7 No. Every transaction should leave the balance sheet equation in balan ce. Accounting is often called “double-entry” because at least two entries are required for each transaction to keep the equation in balance.1-8 This is true. When a company buys inventory for cash, one asset is traded for another, and neither total assets nor total liabilities change. Thus, the balance sheet equation stays in balance. When a company buys inventory on credit, both inventory and accounts payable increase. Thus, both total assets and total liabilities increase by the same amount, again keeping the balance sheet equation in balance.1-9 The evidence for a note payable includes a promissory note, but the evidence for an account payable does not.1-10 Owners' equity is also called capital (for proprietorships and partnerships) and shareholders' equity or stockholders' equity (for corporations).1-11 Limited liability means that corporate owners are not personally liable for the debts of the corporation. Creditors' claims can be satisfied only by the assets of the particular corporation.1-12 The corporation is the most prominent type of entity and corporations do by far the largest volume of business.1-13 Yes. In the United Kingdom corporations frequently use the word limited (Ltd.) in their name. In many countries whose laws trace back to Spain, the initials S.A. refer to a “society anonymous” meaning that multiple unidentified owners stand behind the company, essentially the same as a corporation.21-14 No. The fundamental accounting principles apply equally to nonprofit (that is, not-for-profit) and profit-seeking organizations.Managers and accountants in hospitals, universities, government agencies, and other nonprofit organizations use financial statements. Money must be raised and spent, budgets must be prepared, and financial performance must be judged.Nonprofit organizations need to use their limited resources wisely, and financial statements are essential for judging their use of resources.1-15 Almost all states forbid the issuance of stock at below par; thus, par values are customarily set at very low amounts and have no real importance in affecting economic behavior of the issuing entity.1-16 The board of directors is the link between stockholders and the actual managers. It is the board’s duty to ensure that managers act in the interests of shareholders.1-17CPA is a Certified Public Accountant. One becomes a CPA by a combination of education, qualifying experience, and the passing of a two-day national examination.1-18The auditor increases the value of financial statements by reassuring the reader of the statements that an “independent”and a “qualified” third party has reviewed managements disclosures and believes they fairly present the company’s performance. The fact that you personally do not recognize the name of the audit firm should not be a problem, because only CPAs can perform public audits and sign audit opinions. Every state has strict procedures for licensing CPAs, so such people are qualified.Chapter 1 Accounting: The Language of Business 31-19Such arguments are fun but can never be truly resolved. The notion behind the importance of the corporation and business law is that for any substantial growth to occur there must be a system for organizing resources and using them over long periods of time. The corporate form of ownership helps companies raise large amounts of capital via stock issuance as well as borrowing; it allows us to separate ownership from management; it protects the personal assets of shareholders and, because their maximum losses can be limited, more risky undertakings can be financed; and it has perpetual life so its activity is not disruptive by the death of any shareholder. The general arguments in favor of business law as an important element are similar. Business law provides a set of established rules of behavior for entering into contracts and being sure that other parties can be relied upon to uphold their side of an agreement. Hopefully, some adventurous student will suggest that the question leaves out another really important innovation . . . accounting.1-20Double-entry refers to the concept that every transaction involving two or more accounts with the effect being to retain the balance in the accounting equation. The double-entry concept is important conceptually because it emphasizes that there are assets and claims on assets. In the balance sheet, for example, borrowing money provides an asset, cash, and creates a liability.In addition to this conceptual benefit there is a clerical benefit.Maintaining a balanced relationship provides an indicator of errors. If the accounting equation does not balance, an error has been made.41-21Historians are primarily concerned with events that have already occurred. In that sense, the financial statements do report on transactions that are complete. The negative side of this is that many important things that affect the value of a firm are based on what will happen in the future. Thus, investors often worry about expectations and predictions. Of course, there is no way to agree on the accuracy of expectations and predictions. The positive side of historical financial statements is that they present a no-nonsense perspective on what actually happened, where the company was at a point in time, or what it accomplished over a period of time. It is easier to predict the future when you know where you are. You might liken the importance of historical financial statements to the importance of navigation instruments. If you do not know where you are and where you are headed, it is very hard to get to where you want to go.Chapter 1 Accounting: The Language of Business 51-22 (15-20 min.)May 11 Owners invested $6,000 additional cash in LaTech Company.12 Owners invested an additional $4,000 into thecompany by contributing additional store fixturesvalued at $4,000.15 LaTech Company purchased additional inventory for$3,000 cash.16 LaTech Company purchased inventory on accountfor $5,000.17 LaTech Company collected $3,000 cash on accountsreceivable.18 LaTech Company purchased $6,000 of store fixtures,paying $5,000 cash now and agreeing to pay $1,000later.19 LaTech Company paid $2,000 on accounts payable.22 LaTech Company returned $400 of computermerchandise for credit against accounts payable.23 Owners withdrew $3,000 cash from LaTech Company. 61-23 (10-20 min.)Sept. 1 Monterrey Company collected $2,000 cash on account.2 Monterrey purchased $2,500 of store fixtures onaccount.3 Owner withdrew $3,000 cash.4 Monterrey sold $5,000 of computers for $1,000 cashand $4,000 accounts receivable5 Computers valued at $7,000 were invested in thecompany by owners.8 Monterrey paid $500 on accounts payable.9 Monterrey purchased $3,000 of store fixtures, paying$500 now and agreeing to pay $2,500 later.10 Monterrey returned $300 of store fixtures for creditagainst accounts payable.11. Monterrey collected $3,000 cash from accountsreceivable.Chapter 1 Accounting: The Language of Business 71-24 (15-25 min.)ALBANY CORPORATIONBalance SheetMarch 31, 20X1Liabilities andAssets Stockholders' Equity Cash $ 6,000 (a)Liabilities:Accounts receivable 14,000 Accounts payable $ 11,000(f) Notes receivable 2,000 Notes payable 10,000 Merchandise inventory 43,000 (b) Long-term debt 32,000 (g) Furniture and fixtures 2,000 (c) Total liabilities 53,000 Machinery and equipment 27,000 (d)Stockholders' equity:Land 31,000 (e) Paid-in capital 92,000 (h) Building 20,000Total $145,000 Total $145,000(a) Cash: 10,000 + 1,000 – 5,000 = 6,000(b) Merchandise inventory: 40,000 + 3,000 = 43,000(c) Furniture and fixtures: 3,000 – 1,000 = 2,000(d) Machinery and equipment: 15,000 + 12,000 = 27,000(e) Land: 6,000 + 25,000 = 31,000(f) Accounts payable: 8,000 + 3,000 = 11,000(g) Long-term debt: 12,000 + 20,000 = 32,000(h) Paid-in capital: 80,000 + 12,000 = 92,000Note: Event 5 requires no change in the balance sheet.81-25 (25-35 min.)BROADWAY CORPORATIONBalance SheetNovember 30, 20X1Liabilities andAssets Stockholders’ EquityCash $ 13,000 (a) Liabilities:Accounts receivable 16,000 (b) Accounts payable $ 10,000 (e) Notes receivable 8,000 Notes payable 31,000 (f) Merchandise inventory 29,000 Long-term debt 119,000 (g) Furniture and fixtures 8,000 Total liabilities 160,000 Machinery and equip. 34,000 (c) Stockholders’ equity:Land 35,000 (d) Paid-in Capital 213,000 (h) Building 230,000Total $373,000 Total $373,000(a) Cash: 22,000 – 6,000 – 3,000 = 13,000(b) Accounts receivable: 10,000 + 6,000 = 16,000(c) Machinery and equipment: 20,000 + 14,000 = 34,000(d) Land: 41,000 – 6,000 = 35,000(e) Accounts payable: 16,000 – 6,000 = 10,000(f) Notes payable: 20,000 + (14,000 – 3,000) = 31,000(g) Long-term debt: 142,000 – 23,000 = 119,000(h) Paid-in capital: 190,000 + 23,000 = 213,000Note: Event 4 requires no change in the balance sheet.Chapter 1 Accounting: The Language of Business 91-26 (5-10 min.)1. Total liabilities = Total assets -stockholders’ equity= $405,000,000,000 - $43,000,000,000= $362,000,000,0002. Common stock, par value = $.16 x 3,715,018,000 =$594,402,880.Like other items on General Electric’s balance sheet, the amount would be rounded off to millions:Common stock, par value $5941-27 (15-20 min.)SOPHIA BRENTANO, REALTORBalance SheetNovember 30, 20X1Liabilities andAssets Owners' EquityCash $ 9,000 Liabilities:Accounts receivable 1,000 Accounts payable $ 6,000 Undeveloped land 180,000 Mortgage payable 95,000 Office furniture 16,000 (a) Total liabilities 101,000 Franchise 15,000 (b)Owner's equity:Lisa Angelo, capital 120,000 (c)Total liabilities andTotal assets $221,000 owner's equity $221,000 a$17,000 – $1,000 = $16,000b A franchise is an economic resource that has been purchased tobenefit future operations.c$221,000 – $101,000 = $120,000101-27 (continued)Note that Goldstein's death may have considerable negative influence on future operations, but the account does not formally measure its monetary impact. Moreover, transactions 3 and 4 are personal rather than business transactions.1-28 (20-30 min.) See Exhibit 1-28, on the following page.1-29 (15-25 min.) See Exhibit 1-29 on page 13.Chapter 1 Accounting: The Language of Business 11EXHIBIT 1–28CRYSTAL CLEANERSAnalysis of April 20X1 Transactions(In Thousands of Dollars)Assets Liabilities and Owners' EquityAccounts Equipment Note Accounts Stockholders' Description of Transactions Cash + Receivable + and Furniture = Payable + Payable + Equity1. Issuance of stock +40 = +402. Issuance of stock +20 = +203. Borrowing +35 = +354. Acquisition for cash –30 +30 =5. Acquisition on account +10 = +106. Payments to creditors – 4 = – 47. Sale of equipment +8 – 8 =8. No entry =9. Cash collections + 3 –3 =+44 +5 +52 = +35 + 6 + 60CRYSTAL CLEANERSBalance SheetApril 30, 20X1Assets Liabilities and Stockholders' EquityLiabilities:Cash $ 44,000 Note payable $ 35,000Accounts receivable 5,000 Accounts payable 6,000Equipment and furniture 52,000 Total liabilities $ 41,000Owners' equity 60,000 Total $101,000 Total $101,00012EXHIBIT 1–29WALGREEN COMPANYAnalysis of Transactions(In Millions of Dollars)Assets Liabilities and Owners' EquityAccounts Inven- and Other Notes Accounts Other holders' Description of Transactions Cash + Receivable + tories + Assets = Payable + Payable + Liabilities + Equity Balance August 31 13 614 2,831 3,646 = 1,364 1,506 4,2341. Issuance of stock +30 = + 302. Issuance of stock +45 = + 453. Borrowing +12 = +124. Acquisition for cash –13 +13 =5. Acquisition on account +90 = +906. Payments to creditors –35 = –357. Sale of equipment +1 –1 =8. Cash collections +8 – 8 =Balance September 2 15 607 2,921 3,703 = 12 1,419 1,506 4,309WALGREEN COMPANYBalance SheetSeptember 2, 2000(In Thousands of Dollars)Assets Liabilities and Stockholders' EquityCash $ 15 Notes payable $ 12Accounts receivable 607 Accounts payable 1,419Inventories 2,921 Other liabilities 1,506Property and other assets 3,703 Stockholders' equity 4,309Total $7,246 Total $7,246Chapter 1 Accounting: The Language of Business 131-30 (20-35 min.)1. See Exhibit 1-30 on the following page.2. NIKE, INC.Balance SheetJune 3, 2000Liabilities andAssets Shareholders' Equity Cash $ 376 Total liabilities 2,778 Accounts receivable 1,589 Shareholders' equity 3,226 Inventories 1,477Equipment and otherassets 2,562Total $6,004 Total $6,004 14EXHIBIT 1–30NIKE, INC.Analysis of Transactions(In Millions of Dollars)AssetsLiabilities and Owners’ EquityDescription of Transactions Cash + AccountsReceiv-able +Inven-tories +Equipmentand OtherAssets =TotalLiabil-ities +Share-holders’EquityBalance May 31 254 1,567 1,446 2,590 2,721 3,1361. Inventory purchased -16 +16 =2. Inventory purchased +19 = +193. Return of Inventoryto supplier -4 = -44. Purchase of equipment -3 +12 = +95. Sale of equipment +40 -40 =6. No entry =7. Payment to creditor -17 = -178. Collection from debtor +18 -18 =9. Borrowed from bank +50 = +5010. Issued common stock +90 = +9011. No entry except ondetailed underlyingrecords = Balance, June 3 376 1,589 1,477 2,562 =Chapter 1 Accounting: The Language of Business 151-31 (20-35 min.)1. See Exhibit 1-31 on the following page.2. XYZ CORPORATIONJanuary 31,20X1Analysis of Transactions(In Thousands of Dollars)Liabilities andAssets Stockholders' EquityLiabilities:Cash $142 Note payable $ 30 Accounts receivable 2 Accounts payable 104 Merchandise inventory 254 Total liabilities $134 Equipment 36 Stockholders' equity:Capital stock, common,$1 par,60,000 sharesissued and outstanding $ 30Additional paid-in capitalin excess of par value 270 300 Total $434 Total $434 16EXHIBIT 1–31XYZ CORPORATIONJanuary 20X1Analysis of Transactions(In Thousands of Dollars)Assets Liabilities + Owners' EquityAccounts Merch- Capital AdditionalReceiv- andise Equip- Notes Accounts Stock Paid-in Description of Transactions Cash + able + Inventory + ment = Payable + Payable + (at par) + Capital1. Original incorporation +300 = + 30 + 2702. Inventory purchased –80 +80 =3. Inventory purchased +85 = + 854. Return of inventory tosupplier –11 = – 115. Purchase of equipment –10 +40 = +306. Sale of equipment + 4 – 4 =7. Payment to creditor –20 = – 208. Collection from debtor + 2 – 2 =9. Inventory purchased –50 +100 = + 5010. No entry except ondetailed underlyingrecords =Balance, January 31, 19X1=Chapter 1 Accounting: The Language of Business 171-32 (20-35 min.)1. See Exhibit 1-32 on the following page.2. YUKON PRODUCTSBalance SheetMarch 31, 20X1Liabilities andAssets Stockholders' EquityCash $41,800 Liabilities:Receivables 2,600 Accounts payable $ 4,500 Inventory 16,600 Note payable 9,000 Equipment 17,500 Total liabilities $13,500You, capital 65,000 Total $78,500 Total $78,500 The individual receivables and payables could be identified separately18EXHIBIT 1–32YUKON PRODUCTSAnalysis of TransactionsFor the Month Ended March 31, 20X1Assets Liabilities + Owners' EquityReceiv- Equip- Accounts Note You, Description of Transactions Cash + ables +Inventory + ment = Payable + Payable + Capital1. Initial investment +60,000 = +60,0002. Inventory acquired for cash 10,000 +10,000 =3. Inventory acquired on credit + 8,000 = + 8,0004. Equipment acquired – 5,000 +15,000 = +10,0005. No entry =6. Gloves for family + 600 – 600 =7. Gloves returned tosupplier for cash + 300 – 300 =8. No effect on total inventory =9. Caps returned tosupplier for credit – 500 = – 50010. Payment on note – 1,000 = –1,00011. Equipment acquired + 5,000 = +5,00012. Payment to creditors – 3,000 = –3,00013. No entry14. No entry15. Exchange of equipment + 500 +2,000 – 4,000 =+ 1,500+41,800 +2,600 +16,600 +17,500 =Chapter 1 Accounting: The Language of Business 191-33 (25-40 min.)1. See Exhibit 1-33 on the following page.2. JOSE GOMEZ, ATTORNEY-AT-LAWBalance SheetDecember 31, 20X1Liabilities andAssets Owners' EquityLiabilities:Cash in bank $31,000 Note payable $ 2,000 Note receivable 2,000 Account payable 1,000 Rental damage deposit 1,000 Total liabilities $ 3,000 Legal supplies on hand 1,000 Owner's equity:Computer 4,000 Jose Gomez, capital 40,000 Office furniture 4,000 Total liabilities andTotal assets $43,000 owner's equity $43,0001-34 (10 min.)1. Cash would rise by $1,000 and the liability, Deposits,would rise by the same amount.2. Deposits are liabilities because Citigroup owes theseamounts to depositors. They are depositors' claims on the assets of the bank.3. Loans receivable would increase and Cash woulddecrease by $50,000.4. Deposits would decrease and Cash would decrease by$4,000.20EXHIBIT 1–33JOSE GOMEZ ATTORNEYAnalysis of Business Transactions(In Thousands of Dollars)Assets = Liabilities & Owner's EquityOwner's Cash Note Rental Legal Office Liabilities Equity Description in Receiv- Damage Supplies Furni- Note Account K. Green of Transactions Bank able Deposit on Hand Computer ture Payable Payable Capital 2. Openinginvestment +40 = +404. Rental deposit – 1 +1 =5. Computer – 2 +4 = +26. Purchased supplies +1 = +17. Purchasedfurniture – 4 +4 =9. Note receivablefrom G. Kulp – 2 +2 =Balance, December31, 20X1 +31 +2 +1 +1 +4 +4 = +2 +1 +40General Comments:•Transactions 1 and 3 are personal rather than business transactions.•In transaction 4, no obligation (liability) is set up for the rent because it is not payable until January 2 and no rental services will occur until January.•Transaction 8 requires no entry because no services have been performed during December.Chapter 1 Accounting: The Language of Business 211-35 (10 min.) Amounts are in millions.1. a. Cash = Total assets - Noncash assets= $10,549 - $9,046= $1,503b. Stockholders’ equity = Total assets - Total liabilities= $10,549 - $8,105= $2,4442. Total liabilities and stoc kholders’ equity = total assets =$10,549.1-36 (10 min.)1. The par value line would increase by 1,000,000,000 x$.01 = $10,000,000 and the number of shares outstanding would increase by 1 billion. Additional paid-in capital would increase by 1,000,000,000 x ($70.00 –$.01) = $69,990,000,000.2. IBM shows all of its paid-in capital as a one-line item.Therefore, its common stock line would increase by $100,000,000 and the number of outstanding shares would increase by 1 million.221-37 (5-10 min.)The common stock line should show 957,599,006 x $1.00 = $957,599,006. The average price per share paid by the original investors for the Honeywell common stock was $957,599,006 + $2,318,000,000 = $3,275,599,006 ÷ 957,599,006 = $3.42. Note that the par value is small, $1.00 as compared to $3.42. (Avoid introducing any complications such as the effects of common-on-common stock dividends.)The relatively large difference between the original issuance price ($3.42) and the current market price ($50) is quite typical of many large successful companies. This is usually caused by increased investment attractiveness based on a record of profitable operations over many years.1-38 (5-10 min.)1. The common stock line should show 974 x ¥50 = ¥48,700 million.2. The average price per share paid by the original investors was¥226.5: ¥48,700 + ¥171,910 = ¥220,610 million; ¥220,610 ÷ 974 = ¥226.5. Note that the ¥226.5 easily exceeds the par value of ¥50.(Avoid introducing any complications such as the effects of common-on-common stock dividends.)3. The large difference between the original issuance price of¥226.5 and the current market price of ¥580 is typical for many successful companies. This phenomenon is usually caused by increased investment attractiveness based on a record of profitable operations over many years.Chapter 1 Accounting: The Language of Business 231-39 (20-30 min.)AMAZONBalance SheetDecember 31, 1999(In Millions of Dollars)Liabilities andAssets Stockholders' EquityCash $ 590 (1)Accounts payable $ 463 Property, plant and Other liabilities 276` equipment 317 Long term debt 1,466 Other assets 1,564 Total liabilities 2,205 (3)Capital stock $ 3Additional stockequity 263 (2b)Total stockholders'equity 266 (2a)Total liabilities andTotal assets $2,471 stockholders' equity $2,471 Notations (1), (2), and (3) designate the answers to the requirements. (1) The $590 cash was computed by taking total assets minus all assets except cash. To calculate (2) and (3) note that total assets must equal total liabilities plus stockholders' equity, $2,471 million. Furthermore, (3), total liabilities, is $463 + $276 + $1,466 = $2,205. Therefore, total stockholders' equity is $2,471 – $2,205 = $266, denoted by (2a) above. Additional stockholders' equity is $266 –$3 = $263, denoted by (2b) above.This condensed balance sheet simplifies an important issue. Amazon has an accumulated deficit of $882 million as of the 1999 Balance Sheet date. You may want to introduce this fact into the discussion.241-40 (20 min.)MAY DEPARTMENT STORESBalance SheetJanuary 29, 2000(In Millions of Dollars)Liabilities andAssets Stockholders' EquityCash $ 16*(1)Accounts payable $ 1,030 Accounts receivable 2,173 Long-term debt payable 3,560 Inventories 2,817 Other liabilities 2,268 Property, plant, Total liabilities $ 6,858 (3) and equipment 4,769 Common stock $ 163Other assets 1,160 Additional stock-holders' equity 3,914Total stockholders'equity 4,077 (2)Total liabilities andTotal assets $10,935 stockholders’ equity$10,935*Amount computed by taking total assets minus all assets except cash.Notations (1), (2), and (3) designate the answers to the requirements. Cash is calculated by subtracting the values given for the other assets from total assets: $10,935 - $2,173 -$2,817 -$4,769 -$1,160 = $16. Cash is the smallest individual asset. Companies try to keep cash balances small because they do not earn large returns on cash accounts. To calculate (2) simply add the components $163 + $3,914; similarly for (3), $1,030 + $3,560 + $2,268.Chapter 1 Accounting: The Language of Business 251-41 (10 min)Credibility of accounting reports is essential. Decision makers both within and outside of an organization rely on accounting reports for important decisions. For accounting reports to have credibility, users must have confidence in both the preparers and the auditors of those reports.Internal accountants have access to much sensitive data, and they have access to information across an entire organization. They need to be trusted to keep certain types of information confidential as well as to report fully and accurately to managers who need information for their decisions. Because of their access to so much information, accountants also often act as the conscience of an organization, identifying areas where managers may intentionally or unintentionally be misusing organizational resources. This is a large responsibility, and it requires the trust of managers throughout the organization.External audits have value because they add credibility to the financial statements. Management prepares the financial statements and may be prone to overstate operating results either because of natural optimism or because their reputation or compensation is linked to operating performance. If investors and other users of financial statement do not have faith in the competence, fairness, and objectivity of the auditors, audits will have little value. Therefore, developing and maintaining high ethical standards is a hallmark of the auditing profession.261-41 (continued)Not only are individual accountants cognizant of the need to develop and maintain a reputation for ethical behavior, but they recognize the need to be collectively regarded as highly ethical. Any breach of ethical conduct by one accountant has spillover effects on others. It is important to all accountants that the profession of accounting be regarded as highly ethical. Therefore, professional accounting organizations have developed standards of ethical conduct. Certification examinations, such as the Certified Public Accountant (CPA) and Certified Management Accountant (CMA) exams, test applicants’ knowledge of ethical standards, and the associations enforce compliance to ethical standards by penalizing those who violate the standards. In this way the public can be reasonably assured that when they deal with a certified accountant he or she will be familiar with ethical standards and will have been in compliance with them.1-42 (10-15 min.) ($ in millions)1. Cash = $4,2342. Total assets = $32,870 on July 29, 200014,893 on July 31, 19993. Assets = Liabilities + Stockholders' Equity$32,870 = $6,373 + $26,497NOTE: The statement does not give a subtotal for liabilities.It must be backed out. Some analysts treat minorityinterests or deferred taxes as if they were notliabilities.Chapter 1 Accounting: The Language of Business 271-43 (15-30 min.)Each solution is unique and will change each year. The purpose of this problem is for students to recognize the format of a balance sheet and to see how it relates to the balance sheet equation.1-44 (60 or more min.)The purpose of this exercise is to learn how to find a company’s balance sheet, to pick out significant items on it, and to understand how basic transactions affect the balance sheet. Each student will become an “expert” on one or two types of transactions and will be required to explain the accounting for that transaction to the rest of the group. Requirement 2 is a test of how well the “experts” explained the effects of their transactions1-45 (30-60 min.)A solution to this Internet case is located on Prentice Hall's PHLIP web site (/phlip). Because companies' web sites change often, the student web site contains an up-to-date URL for accessing the information and any changes in the case requirement necessitated by changes in the information available. We encourage you to visit the PHLIP web site before assigning this problem.28。
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20.Journalizing transactions using the double-entry bookkeeping systemwill eliminatefraud.
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21.Liability accounts are increased by debits.
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48.Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.
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49.Horizontal analysis is used to compare financial statements from different periods.
36.When a business receives a bill from the utility company, no entry should be made until the invoice is paid.
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37.When an owner invests assets in the business, the capital account increases due to revenue being earned.
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14.The double-entry accounting system records each transaction twice.
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15.The increase side of all accounts is the normal balance.
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16.The journal is the book of original entry.
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17.The process of recording a transaction in the journal is called journalizing.
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31.The post reference notation used in the journal is the page number.
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32.A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.
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43.The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.
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33.The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.
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47.The erroneous moving of an entire number one or more spaces to the right or left, such as writing $75 as $750, is called a transposition.
CHAPTER 2
ANALYZING TRANSACTIONS
Chapter 2—Analyzing Transactions
TRUE/FALSE
1.Accounts are records of increases and decreases in individual financial statement items.
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8.Unearned Revenues are an example of a liability.
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9.Drawings are an example of an expense.
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10.Accounts in the ledger are usually maintained in alphabetical order.
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46.Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.
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2.A group of related accounts that make up a complete unit is called a trial balance.
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3.A chart of accounts is a listing of accounts that make up the journal.
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29.The process of transferring the data from the journal to the ledger accounts is posting.
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30.The post reference notation used in the ledger is the account number.
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13.Unless the transaction is compound, the dollar amount of the debits for each transaction is equal to the dollar amount of the credits for that transaction, and thus the term double-entry bookkeeping..
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11.Depending on the account title, the right side of the account is referred to as the credit side.
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12.To determine the balance in an account, always subtract credits from debits.
27.The normal balance of revenue accounts is a credit.
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28.Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.
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40.A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.
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41.A trial balance determines the accuracy of the numbers.
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42.Even when a trial balance is in balance, there may be errors in the individual accounts.
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34.For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.
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18.Journalizing is the process of entering amounts in the ledger.
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19.Transactions are listed in the journal chronologically.
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44.The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.
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45.Posting a transaction twice will cause the trial balance totals to be equal.
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4.The chart of accounts should be the same for each business.