会计英语基础指导

选择题

(1). A t the end of the accounting period, accounts receivable has a balance of $200,000 and allowance for receivable has a credit balance of $2,500. The amount of net accounts receivable at the end of accounting period is ( B )

A. $2,500

B. $ 197,500

C. $8,500

D. $200,000

(2). The basic purpose of offering customers cash discount is to ( C )

A. increase sales

B. reduce net sales

C. speed up the collection of accounts receivable

D. focus management’s attention upon customers that fail to take advantage of all available cash discount

(3). If a corporation has outstanding 1,000 shares of $9 cumulative

preferred stock of $100 par and dividends have been passed for the preceding three years, what is the amount of preferred dividends that

must be declared in the current year before a dividend can be declared on common stock? ( C )

A. $9,000

B. $27,000

C. $36,000

D. $45,000

(4). The stockholder’s equity section of the balance sheet may include ( D )

A. Common stock

B. Preferred stock

C. Retained earnings

D. All of the above

(5). Declaration and issuance of a dividend in stock ( C )

A. Increases the current ratio

B. Decrease the amount of working capital

C. Decrease total stockholder’s equity

D. Has no effect on total assets, liabilities, or stockholder’s equity

(6). A company declared a cash dividend on its common stock on Dec 15, 2004, payable on Jan 15, 2005. How would this dividend affect shareholder’s equity on the following dates? ( B )

Dec 15 2004 Jan 15 2005

A. Decrease Decrease

B. No effect No effect

C. No effect Increase

D. Decrease No effect

(7). Revenue include ( D )

A. The amount earned from providing goods to customers.

B. The amount received from borrowing.

C. The amount earned from providing services to customers.

D. Both A and C.

(8). An example of a cash flow from an operating activity is

( D )

A. The receipt of cash from issuing stock

B. The receipt of cash from issuing bonds

C. The payment of cash for dividends

D. The receipt of cash from customers on account

9. The basic purpose of offering customers cash discounts such as 2/10,

n/30 is to( )

A. Increase sales.

B. Reduce net sales.

C. Speed up the collection of accounts receivable.

D. Focus management’s attention upon customers that fail to take advantage of all available cash discounts.

10. A potential future liability arising from an event that has already happened, usually is called

( B )

A. an accrued liability.

B. a contingent liability.

C. a deferred liability.

D. an estimated liability.

12.What is the normal balance of the Accounts Receivable ,Office Supplies, and Rent Expense accounts?

( A )

A.Debit

B.Credit

C.Debit or Credit

D.None of the Above

13. Which Principle or the assumption holds that the business will continue in operation ?

( ( C )

A.Objectivity Principle

B.Accounting Entity Concept

C.Going- Concern Assumption

D.Accounting Period Assumption

15. On March 1, Wright Company purchased new equipment for $50,000. Wright paid cash for the equipment. Other costs associated

with the equipment were: transportation costs, $1,000; sales tax paid

$3,000; and installation cost, $2,500. The cost recorded for the equipment was

( A )

A. $56,500.

B. $54,000.

C. $51,000.

D. $50,000.

16. Declaration and issuance of a dividend in stock ( )

A. Increases the current ratio

B. Decrease the amount of working capital

C. Decrease total stockholder’s equity

D. Has no effect on total assets, liabilities, or stockholder’s equity

17. A business's assets are ( B )

A. equal to liabilities minus stockholders' equity.

B. the economic resources of the business.

C. Reported at current cost.

D. Reported on the income statement.

18. At the end of the accounting period, accounts receivable has a balance of $100,000 and allowance for receivables has a balance of $7,000. The net accounts receivable value is ( B )

A. $7,000

B. $93,000

C. $100,000

D. $107,000

20. The basic structure of an account includes ( D )

A．A title B．A left side C．A right side D．All of the above 21. If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the higher net income is ( B )

A. LIFO

B. FIFO

C. Average

D. Periodic

22. Which of the following costs should not be included in the inventory valuation of a manufacturing business? ( B )

A. Depreciation on the plant and machinery.

B. Salary of salesman

C. Factory supervisor’s salary

D. Electricity for factory

23. If a company has liabilities of $32000 and owner’s equity o f $51000, the assets of the company are ( C )

A. $39000

B. $61000

C. $83000

D. $22000

24. At 30 April 2005, Gareth has a receivable balance of $50,000 and an allowance for receivable of $800. Following a review of receivable, Gareth wishes to write off an irrecoverable debt of $1,000 and adjust his allowance to 5% of Receivables. What will be the adjusted balance of the allowance for receivables? ( B )

A. $1,650

B. $2,450

C. $2,500

D. $3,450

25. An example of a cash flow from a financing activity is ( C )

A. The receipt of cash from customers on account

B. The receipt of cash from the sale of equipment

C. The payment of cash for dividends

D. The payment of cash to acquire marketable securities

26. An example of a cash flow from an operating activity is ( )

A. The receipt of cash from issuing stock

B. The receipt of cash from issuing bonds

C. The payment of cash for dividends

D. The receipt of cash from customers on account

27．Assuming that net purchases cost $250,000 during the year and that the ending stock was $4,000, The value of beginning stock is $30,000, how much was cost of goods sold? ( D )

A. $280,000

B. $246,000

C. $254,000

D. $276,000

30．The major expense of a merchandising business is ( A ) A．Cost of goods sold

B．Rent

C．Depreciation

D．Interest

31．Which of the following statements is true? ( B )

A.Gross profit - Cost of goods sold = Net sales

sales + Gross profit = Cost of goods sold

C.Gross profit = Net sales - Cost of goods sold

sales + Cost of goods sold = Gross profit

38．The assets should be recorded at acquisition cost in order to meet the requirement of B

A．Objectivity

B．Historical cost

C．Going-concern Assumption

D．Timeliness

39. An accrued expense can best be described as an amount D

A. Paid and currently matched with revenue

B. Paid and nit currently matched with revenue

C. Not paid and not currently matched with revenue

D. Not paid and currently matched with revenue

42．Posting is the process of transferring information from the D A．Journal to the trial balance

B．Ledger to the trial balance

C．Ledger to the financial statements

D．Journal to the ledger

43．A company's trial balance failed to agree, the totals being:Debit $815,602 Credit $808,420

Which one of the following errors could fully account for the difference? A

A.The omission from the trial balance of the balance on the insurance expense account $7,182 debit

B. Discount allowed $3,591 debited in error to the discount received account

C. No entries made in the records for cash sales totalling $7,182

D.The returns outwards total of $3,591 was included in the trial balance as a debit balance

44.If a company has current liabilities of $32000 , owner’s equity of $51000, and the assets has a total amount of $103000,and what`s the balance of non-current liability of the company

A. $39000

B. $61000

C. $83000

D. $20000 45．Which of the following accounts is an asset account ?A A．Prepaid rent B．Advertising Expense

C．Unearned Revenue D．Withdrawals

46. An adjusting entry could contain all of the following except A

A. convert asset to liability

B. convert asset to expense

C. accrual uncollected expense

D. convert liability to revenue

47.Which of the following accounts is a liabilities account ? ( C )

A．Prepaid insurance

B．Gasoline Expense

C．Unearned Revenue

D．Dividends

48. What`s the type of Depreciation( B )

A．liability account

B．asset account

C．equity account

D．cost account

判断题

1.Accounting is another word for bookkeeping.

( F )

2.Internally generated goodwill can be viewed as intangible assets.

( F )

3. Total assets are $70,000, total liabilities, $40,000 and contributed

capital is $20,000; therefore, retained earnings are $15,000.

( F )

4. The ledger (T-accounts) contains information which has been posted

from the journal. .

( T )

5. A decision maker who wants to understand a company's financial

statements must carefully read the notes to the financial statements because the notes provide useful supplemental information.

( T )

6. Legal and contractual provisions can determine the useful life of an

intangible

asset.

( T )

7. Credit terms "2/10, n/30" mean that if payment is made in two days,

a 10% discount will be given; if not paid within two days, the full

invoice price will be due in thirty days.

( F )

8. Patents and trademarks are examples of tangible assets.

( F )

9. The appropriation of retained earnings is to establish a cash fund for

a specific purpose. ( F )

10. Building and equipment are recorded at their cost at acquisition and are subsequently reported at cost plus accumulated depreciation. F 11.Accounts receivable is a receivable created by selling merchandises or providing service on credit. ( T )

12. Equipment such as machinery, furniture and tools should be amortized. ( F )

13. Once the expected useful life and estimated net residual value are determined, they shall not be changed under any circumstances. ( F ) 14. Appropriation of retained earnings has no effect on total shareholder’s equity. ( F )

15. If the board of directors announces stock dividends distribution, the total stockholder’s equity will decrease. ( F )

16. Dividends are an expense of a corporation and should be charged to the periodic income. ( F )

17. A present reduction in cash required to generate revenues is called an expense. ( T )

18. Gross margin is an indication of profitability. ( T )

20. Land does not need depreciation and is considered to have an infinite life. ( T )

22. After the shares of capital stocks have been sold to the investors, they are referred to as issued shares. ( T )

23 . A corporation must, by law, pay a dividend once a year. ( F ) 25. Revenue is recognized when we receive cash from the buyers.

( F )

26. A present reduction in cash required to generate revenues is called an expense. ( F )

27.For a given account, total debits must always equal total credits. ( T )

28 Accounts receivable is a receivable c )

31. The owner reated by selling merchandises or providing service on credit. (

pany’s withdrawals account is closed to the owner’s capital account. ( T )

33.For all given accounts, total debits must always equal total credits.( T )

34.When expense accounts are closed, the Income Summary account will be debited. ( T )

35.Adjusting entries help make financial statements comparable from one period to the next.

( F )

panies capitalized expenditures that benefit only one period.

( F )

37.The owner’s dividends account will cause decrease of capital stock. ( F )

38.Patents and trademarks are examples of tangible assets. ( F )

39.Only when there are errors made in the daily recording of transactions, adjusting entries are necessary at the end of the period. ( F )

会计术语翻译(examples)

cash

Fixed assets assets

capital stock common stock preference shares

notes receivable

Accounts receivable

service revenue

fixed assets current assets

Cost of goods sold

inventory

retained earning

dividend payable

account payable

sales revenue

Sale discount

perpetual counting

others on the text book

比率分析

The income statements and balance sheets of two manufacturing companies Chris and Caroline in the same period are set out below.

Chris Caroline

$ $ Revenue 150,000 700,000

Cost of sales (60,000) (210,000) Gross profit 90,000 490,000 Interest payable (500) (12,000)

Administrative expenses (15,000) (35,000) Distribution costs (13,000) (72,000) Profit before tax 61,500 371,000 Tax expense (16,605) (100,170) Profit for the period 44,895 270,830

Chris Caroline

$ $ $ $ Assets

Non-current assets

Property - 500,000

Plant and equipment 190,000 280,000

190,000

780,000

Current assets

Inventories 120,000 26,250

Trade receivables 37,500 105,000

Cash at bank 500 22,000

50,000

153,250

Total assets 240,000

933,250

Equity and liabilities

Capital and reserves

Issued capital 156,000 174,750 Accumulated profits 51,395 390,830

207,395

565,580

Non-current liabilities

Long-term debt 10,000

250,000

Current liabilities

Trade payables 22,605

117,670

Total equity and liabilities 240,000

933,250

Required

Using ratio analysis, briefly compare the profitability, working capital efficiency, liquidity and gearing ratio of the two entities.

Chris

ROCE=PBIT/(capital+reserve+long-term debt)=

2: ROSC=PAT/(capital+reserve+long-term debt)=

3: Assets turnover=sales revenue/(capital+reserve+long-term debt)= 4: Gross profit margin=

5: net profit margin=

6: Debtor days=

Inventory turnover=

Average time to pay suppliers=

Working capital cycle=

7: Current ratio =

Quick ratio=

Caroline

1: ROCE=PBIT/(capital+reserve+long-term debt)=

2: ROSC=PAT/(capital+reserve+long-term debt)=

3: Assets turnover=sales revenue/(capital+reserve+long-term debt)=

4: Gross profit margin=

5: net profit margin=

6: Debtor days=

Inventory turnover=

Average time to pay suppliers=

Working capital cycle=

7: Current ratio =

Quick ratio=

计算折旧

Assume an equipment was acquired for $160000 in cash, salvage value was estimated to be $10000 with a useful life of 5 years. Requirement:Calculate depreciation under the Double-declining-balance

Selling price per unit $100, variable cost per unit $56

Fixed costs $220,000, budgeted sales are 7,500 units

Required:

(a). Calculate the C/S ratio

(b). Calculate the breakeven point in terms of units sold

(c). Calculate the breakeven point in terms of sales revenues

(d). Calculate the unit sales required to achieve a target profit of $550,000

(e). Calculate the margin of safety (expressed as a percentage of budgeted sales

(f). According to your result calculated, draw a breakeven chart. Within your chart, you must show the breakeven point, fixed cost, total cost, total variable cost, sales revenue, margin of safety