会计学原理英文版一单元习题解读

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会计学原理英文版

会计学原理英文版Accounting Principles。

Accounting is the language of business. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. Accounting principles are the rules and guidelines that companies must follow when reporting financial data. These principles are essential for the preparation of financial statements that are accurate and reliable.The basic principles of accounting are generally accepted and are the foundation on which the entire accounting structure is based. They provide a framework for the preparation and presentation of financial statements. The following are some of the key accounting principles:1. Accrual Principle: This principle states that revenue and expenses should be recognized when they areincurred, regardless of when cash is received or paid. This means that revenue is recorded when it is earned and expenses are recorded when they are incurred, regardless of when the cash is actually received or paid out.2. Matching Principle: This principle requires that expenses be matched with revenues. It means that expenses should be recognized in the same period as the revenues to which they relate. This ensures that the financial statements accurately reflect the results of operations for a specific period.3. Cost Principle: According to this principle, assets should be recorded at their original cost. This means that when an asset is acquired, it is recorded at the amount of cash paid or the fair market value of the consideration given to acquire it.4. Going Concern Principle: This principle assumes thata business will continue to operate indefinitely. It means that the financial statements are prepared with the assumption that the business will continue to operate inthe foreseeable future.5. Conservatism Principle: This principle dictates that when in doubt, accountants should choose the method thatwill result in the least favorable outcome for the company. This means that assets and revenues are not overstated, and liabilities and expenses are not understated.6. Consistency Principle: This principle requires that once a company chooses an accounting method or principle,it should continue to use it consistently in the future. This ensures that financial statements are comparable over time.7. Materiality Principle: This principle states that financial information should be disclosed if it could influence the economic decisions of users. If theinformation is immaterial, it does not need to be disclosed.These principles form the basis for the preparation of financial statements that are reliable and comparable. They ensure that financial information is presented in aconsistent and understandable manner, allowing users to make informed decisions. Adhering to these principles is essential for the credibility and integrity of financial reporting.In conclusion, accounting principles are the guidelines that companies must follow when preparing financial statements. They ensure that financial information is accurate, reliable, and comparable. By adhering to these principles, companies can provide users with meaningful and useful financial information, which is essential for making informed economic decisions.。

怀尔德会计学原理21版英语题库答案

怀尔德会计学原理21版英语题库答案怀尔德会计学原理21版英语题库答案Chapter 1Accounting in BusinessQUESTIONS1. The purpose of accounting is to provide decision makers with relevant and reliableinformation to help them make better decisions. Examples include information forpeople making investments, loans, and business plans.2. Technology reduces the time, effort, and cost of recordkeeping. There is still ademand for people who can design accounting systems, supervise their operation,analyze complex transactions, and interpret reports. Demand also exists for peoplewho can effectively use computers to prepare and analyze accounting reports.Technology will never substitute for qualified people with abilities to prepare, use,analyze, and interpret accounting information.3. External users and their uses of accounting information include:(a) lenders, tomeasure the risk and return of loans; (b) shareholders, to assess whether to buy,sell, or hold their shares; (c) directors, to oversee theirinterests in the organization;(d) employees and labor unions, to judge the fairness of wages and assess futureemployment opportunities; and (e) regulators, to determine whetherthe organizationis complying with regulations. Other users are voters, legislators, governmentofficials, contributors to nonprofits, suppliers and customers.4. Business owners and managers use accounting information to help answerquestions such as: What resources does an organization own? Whatdebts are owed?How much income is earned? Are expenses reasonable for the level of sales? Arecustomers‘ accounts being promptly collected?5. Service businesses include: Standard and Poor‘s, Dun & Bradstreet, Merrill Lynch,Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential. Businessesoffering products include Nike, Reebok, Gap, Apple Computer, Ford Motor Co.,Philip Morris, Coca-Cola, Best Buy, and Circuit City.6. The internal role of accounting is to serve the organization‘s internal ope ratingfunctions. It does this by providing useful information for internal users incompleting their tasks more effectively and efficiently. By providing this information,accounting helps the organization reach its overall goals.7. Accounting professionals offer many services including auditing, managementadvice, tax planning, business valuation, and money management.8. Marketing managers are likely interested in information such as sales volume,advertising costs, promotion costs, salaries of sales personnel, and salescommissions.9. Accounting is described as a service activity because it serves decision makers byproviding information to help them make better business decisions.10. Some accounting-related professions include consultant,financial analyst,underwriter, financial planner, appraiser, FBI investigator, market researcher, andsystem designer.11. Ethics rules require that auditors avoid auditing clients in which they have a directinvestment, or if the auditor‘s fee is dependent on the figures in the client‘s reports.This will prev ent others from doubting the quality of the auditor‘s report.12. In addition to preparing tax returns, tax accountants help companies and individualsplan future transactions to minimize the amount of tax to be paid. They are alsoactively involved in estate planning and in helping set up organizations. Some taxaccountants work for regulatory agencies such as the IRS or the various statedepartments of revenue. These tax accountants help to enforce tax laws. 13. The objectivity concept means that financial statement information is supported byindependent, unbiased evidence other than someone‘s opinion or imagination. Thisconcept increases the reliability and verifiability of financial statement information. 14. This treatment is justified by both the cost principle and the going-concernassumption.15. The revenue recognition principle provides guidance for managers and auditors sothey know when to recognize revenue. If revenue is recognized too early, thebusiness looks more profitable than it is. On the other hand, if revenue isrecognized too late the business looks less profitable than it is. This principledemands that revenue be recognized when it is both earned and can be measuredreliably. The amount of revenue should equal the value of the assets received orexpected to be received from the business‘s operating activities covering a specifictime period.16. Business organizations can be organized in one of three basic forms: soleproprietorship, partnership, or corporation. These forms have implications for legalliability, taxation, continuity, number of owners, and legal status as follows:Proprietorship Partnership CorporationBusiness entity yes yes yesLegal entity no no yesLimited liability no* no* yesUnlimited life no no yesBusiness taxed no no yesOne owner allowed yes no yes*Proprietorships and partnerships that are set up as LLCs provide limited liability.17. (a) Assets are resources owned or controlled by a company that are expected toyield future benef its. (b) Liabilities are creditors‘ claims on assets that reflectobligations to provide assets, products or services to others.(c) Equity is theowner‘s claim on assets and is equal to assets minus liabilities.(d) Net assets referto equity.18. Equity is increased by investments from the owner and by net income. It isdecreased by withdrawals by the owner and by a net loss (which is the excess ofexpenses over revenues).19. Accounting principles consist of (a) general and (b) specific principles. Generalprinciples are the basic assumptions, concepts, and guidelines for preparingfinancial statements. They stem from long-used accounting practices. Specificprinciples are detailed rules used in reporting on business transactions and events.They usually arise from the rulings of authoritative and regulatory groups such asthe Financial Accounting Standards Board or the Securities and ExchangeCommission.20. Revenue (or sales) is the amount received from selling products and services. 21. Net income (also called income, profit or earnings) equals revenues minus expenses(if revenues exceed expenses). Net income increases equity. If expenses exceedrevenues, the company has a Net Loss. Net loss decreases equity.22. The four basic financial statements are: income statement, statement of owner‘sequity, balance sheet, and statement of cash flows.23. An income statement reports a company‘s revenues and expenses along with theresulting net income or loss over a period of time.24. Rent expense, utilities expense, administrative expenses, advertising and promotionexpenses, maintenance expense, and salaries and wages expenses are someexamples of business expenses.25. The statement of owner‘s equity explains the changes in equity from net income orloss, and from any owner contributions and withdrawals over a period of time. 26. The balance sheet describes a company‘s financial position (types and amounts ofassets, liabilities, and equity) at a point in time.27. The statement of cash flows reports on the cash inflows and outflows from acompany‘s operating, investing, and financing activities.28. Return on assets, also called return on investment, is a profitability measure that isuseful in evaluating management, analyzing and forecasting profits, and planningactivities. It is computed as net income divided by the averagetotal assets. Forexample, if we have an average annual balance of $100 in a bank account and itearns interest of $5 for the year, then our return on assets is $5 / $100 or 5%. Thereturn on assets is a popular measure for analysis because it allows us to comparecompanies of different sizes and in different industries.A 29. Return refers to income, and risk is the uncertainty about the return we expect tomake. The lower the risk of an investment, the lower the expected return. Forexample, savings accounts pay a low return because of the low riskof a bank notreturning the principal with interest. Higher risk implies higher,but riskier, expectedreturns.B30. Organizations carry out three major activities: financing,investing, and operating.Financing provides the means used to pay for resources. Investing refers to theacquisition and disposing of resources necessary to carry out the organizat ion‘splans. Operating activities are the actual carrying out of these plans. (Planning is theglue that connects these activities, including the organization’s ideas, goals andstrategies.)B31. An organization‘s financing activities (liabilities and equity) pay for investingactivities (assets). An organization cannot have more or less assets than itsliabilities and equity combined and, similarly, it cannot have more or less liabilitiesand equity than its total assets. This means: assets = liabilities + equity. Thisrelation is called the accounting equation (also called the balance sheet equation),and it applies to organizations at all times.32. The dollar amounts in Best Buy‘s financial statements are rounded to the nearest$1,000,000. Bes t Buy‘s consolidated st atement of earnings (or income statement)covers the fiscal year (consisting of 53 weeks) ended March 3, 2007. Best Buy alsoreports comparative income statements for the previous two years (consisting of 52weeks).33. In thousa nds, Circuit City‘s accoun ting equation is:Assets = Liabilities + Equity$4,007,283 = $2,216,039 + $1,791,24434. At December 31, 2006, RadioShack had (in millions) assets of $2,070.0, liabilities of$1,416.2, and equity of $653.8.35. The independent auditor for Apple, Inc., is KPMG LLP. The auditor expressly statesthat ―our responsibility is to express an opinion on these consolidated financialstatements based on our audits.‖ The auditor also states that ―these consolidatedfinancial statements are the responsibility of the Com pany‘s management.‖Chapter 21EXERCISESExercise 21-1 (25 minutes)1. Allocation of Indirect Expenses to Four Operating DepartmentsSupervision expensesDepartment Employees % of Total CostMaterials ................................ 40 20% $16,000Personnel .............................. 22 11 8,800Manufacturing ....................... 104 52 41,600Packaging .............................. 34 17 13,600Totals ..................................... 200 100% $80,000 Utilities expensesDepartment Square Feet % of Total CostMaterials ................................ 27,000 27% $16,470 Personnel .............................. 5,000 5 3,050Manufacturing ....................... 45,000 45 27,450Packaging .............................. 23,000 23 14,030Totals ..................................... 100,000 100% $61,000 Insurance expensesDepartment Asset Value % of T otal CostMaterials ................................ $ 60,000 50% $ 8,350 Personnel .............................. 1,200 1 167Manufacturing ....................... 42,000 35 5,845Packaging .............................. 16,800 14 2,338Totals .....................................$120,000 100% $16,7002. Report of Indirect Expenses Assigned to Four Operating DepartmentsSupervision Utilities Insurance TotalMaterials ................................$16,000 $16,470 $ 8,350 $ 40,820 Personnel ..............................8,800 3,050 167 $ 12,017 Manufacturing .......................41,600 27,450 5,845 $ 74,895 Packaging .............................. 13,600 14,030 2,338 $ 29,968 Totals ................................$80,000..... $61,000 $16,700 $157,700 Exercise 21-2 (30 minutes)Calculation of predetermined overhead rates to apply ABC Overhead Cost TotalCategory (Activity Total Amount ofCost Pool) Cost Cost Driver Predetermined Overhead Rate Supervision ........................$ 5,400 $36,000 15% of direct labor costDepreciation .......................56,600 2,000 MH $28.30 per machine hourLine preparation ................46,000 250 setups $184.00 per setup1. Assignment of overhead costs to the two products usingABCRounded edgeCost Cost per AssignedDriver Driver Unit CostSupervision ........................... $12,200 15% $ 1,830Machinery depreciation ........ 500 hours $ 28.30 14,150Line preparation.................... 40 setups $184.00 7,360Total overhead assigned ...... $23,340Squared edgeCost Cost per AssignedDriver Driver Unit CostSupervision ........................... $23,800 15% $ 3,570Machinery depreciation ........ 1,500 hour$ 28.30 42,450sLine preparation....................210 setups $184.00 38,640Total overhead assigned ...... $84,6602. Average cost per foot of the two productsRounded edge Squared edgeDirect materials .......................... $19,000 $ 43,200Direct labor ................................. 12,200 23,800Overhead (using ABC) ............... 23,340 84,660Total cost ................................... $54,540 $151,660Quantity produced ..................... 10,500 ft. 14,100 ft.Average cost per foot (ABC) ...... $5.19 $10.763. The average cost of rounded edge shelves declines and the average cost of squared edge shelves increases. Under the current allocation method, the rounded edge shelving was allocated 34% of all of the overhead cost ($12,200 direct labor/$36,000 total direct labor). However, it does not use 34% of all of the overhead resources. Specifically, it uses only 25% ofmachine hours (500 MH/2,000 MH), and 16% of the setups (40/250). Activity based costing allocated the individual overhead components in proportion to the resources used.Exercise 21-7 (15 minutes)(1) Items included in performance reportThe following items definitely should be included in the performance report for the auto service department manager because they arecontrolled or strongly influenced by the manager‘s decisions and activities:, Sales of parts, Sales of services, Cost of parts sold, Supplies, Wages (hourly)(2) Items excluded from performance reportThe following items definitely should be excluded from the performance report because the department manager cannot control or strongly influence them:, Building depreciation, Income taxes allocated to the department, Interest on long-term debt, Manager‘s salary(3) Items that may or may not be included in performance report The following items cannot be definitely included or definitely excluded from the performance report because they may or may not be completely under the manager‘s control or strong influence:, Payroll taxes Some portion of this expense relates to themanager‘s salary and is not controllable by themanager. The portion that relates to hourly wagesshould be treated as a controllable expense., Utilities Whether this expense is controllable depends on the design of the auto dealership. If the auto servicedepartment is in a separate building or has separateutility meters, these expenses are subject to themanager‘s control. Otherwise, th e expense probablyis not controllable by the manager of the auto servicedepartment.Exercise 21-9 (20 minutes)(1)Investment Center Net Income Average Assets Return on AssetsElectronics ................... $750,000 $3,750,000 20%Sporting Goods ............ 800,000 5,000,000 16%Comment: Its Electronics division is the superior investment center on the basis of the investment center return on assets.Exercise 21-9 (continued)(2)Investment Center Electronics Sporting GoodsNet income ................... $750,000 $800,000Target net income$3,750,000 x 12% ....... (450,000)5,000,000 x 12% ........ (600,000)Residual income……. $300,000 $200,000Comment: Its Electronics division is the superior investment center on the basis of investment center residual income.(3) The Electronics division should accept the new opportunity, since it will generate residual income of 3% (15% - 12%) of the investment‘s investedassets.Exercise 21-10 (15 minutes)Investment Center Net Income Sales Profit MarginElectronics ................... $750,000 $10,000,000 7.50%Sporting Goods ............ 800,000 8,000,000 10.0%InvestmentInvestment Center Sales Average Assets TurnoverElectronics ...................$10,000,000 $3,750,000 2.67Sporting Goods ............ 8,000,000 5,000,000 1.6Comments: Its Sporting goods division generates the most net income per dollar of sales, as shown by its higher profit margin. The Electronics division however is more efficient at generating sales from invested assets, based on its higher investment turnover.PROBLEM SET AProblem 21-1A (60 minutes)Part 1Average occupancy cost = $111,800 / 10,000 sq. ft. = $11.18 per sq. ft.Occupancy costs are assigned to the two departments as follows Department Square Footage Rate TotalLanya‘s Dept. ............... 1,000 $11.18 $11,180Jimez‘s Dept. ................ 1,700 $11.18 $19,006**A total of $30,186 ($11,180 + $19,006) in occupancy costs is charged to these departments. The company would follow a similar approach in allocating the remaining occupancy costs ($81,614, computed as $111,800 - $30,186) to its other departments (not shown in this problem).Part 2Market rates are used to allocate occupancy costs fordepreciation, interest, and taxes. Heating, lighting, and maintenance costs are allocated to the departments on both floors at the average rate per square foot. These costs are separately assigned to each class as follows:Total Value-Based Usage-BasedCosts Costs CostsDepreciation—Building...................$ 31,500 $31,500Interest—Building mortgage .......... 47,000 47,000Taxes—Building and land............... 14,000 14,000Gas (heating) expense .................... 4,425 $ 4,425Lighting expense ............................ 5,250 5,250Maintenance expense ..................... 9,625 ______ 9,625Total .................................................$111,800 $92,500 $19,300Problem 21-1A (Continued)Value-based costs are allocated to departments in two steps(i) Compute market value of each floorSquare Value perFloor Footage Sq. Ft. TotalFirst floor ...............................5,000 $40 $200,000Second floor ..........................5,000 10 50,000Total market value................. $250,000(ii) Allocate $92,500 to each floor based on its percent of market valueMarket % of Allocated Cost perFloor Value T otal Cost Sq. Ft.First floor ...............................$200,000 80% $74,000$14.80Second floor .......................... 50,000 20 18,500 3.70Totals ................................$250,000..... 100% $92,500 Usage-based costs allocation rate = $19,300 / 10,000 sq. ft.= $1.93 per sq. ft.We can then compute total allocation rates for the floors FloorValue Usage TotalFirst floor ............................... $14.80 $1.93 $16.73Second floor .......................... 3.70 1.93 $ 5.63These rates are applied to allocate occupancy costs to departments SquareDepartment Footage Rate TotalLanya‘s Department ........................ 1,000 $16.73 $16,730Jim ez‘s Department ........................ 1,700 5.63 $ 9,571Part 3A second-floor manager would prefer allocation based on market value. This is a reasonable and logical approach to allocation of occupancy costs. The current method assumes all square footage has equal value. This is not logical for this type of occupancy. It also means the。

会计学基础学习知识原理英文版一单元习题集

1. Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.2. Bookkeeping is the recording of transactions and events and is only part of accounting.3. An accounting information system communicates data to help businesses make better decisions.4. Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.5. Internal operating activities include research and development, distribution, and human resources.6. The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.7. External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.8. External users include lenders, shareholders, customers, and regulators.9. Regulators often have legal authority over certain activities of organizations.10. Internal users include lenders, shareholders, brokers and managers.11. Opportunities in accounting include auditing, consulting, market research, and tax planning.12. Identifying the proper ethical path is easy.13. The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether is has adopted a code of ethics for its senior financial officers and the contents of that code.14. The fraud triangle asserts that there are three factors that must exist for a person to commit fraud; these factors are opportunity, pressure, and rationalization.15. The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.16. A partnership is a business owned by two or more people.17. Owners of a corporation are called shareholders or stockholders.18. In the partnership form of business, the owners are called stockholders.19. The balance sheet shows a company’s net income or loss due to earnings activities over a period of time.20. The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.21. The business entity principle means that a business will continue operating for an indefinite period of time.22. Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements.23. The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.24. As a general rule, revenues should not be recognized in the accounting records until it is received in cash.25. Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.26. General accounting principles arise from long-used accounting practices.27. A sole proprietorship is a business owned by one or more persons.28. Unlimited liability is an advantage of a sole proprietorship.29. Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.30. The International Accounting Standards board (IASB) has the authority to impose its standards on companies around the world.31. Objectivity means that financial information is supported by independent unbiased evidence.32. The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.33. According to the cost principle, it is preferable for managers to report an estimate of an asset's value.34. The monetary unit assumption means that all international transactions must be expressed in dollars.35. The International Accounting Standards Board (IASB) is the government group that establishes reporting requirements for companies that issue stock to the public. 36. A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.37. The Securities and Exchange Commission (SEC) is a government agency that has legal authority to establish GAAP.38. The three common forms of business ownership include sole proprietorship, partnership, and non-profit.39. The three major types of business activities are operating, financing, and investing.40. Planning is defining an organization's ideas, goals, and actions.41. Strategic management is the process of determining the right mix of operating activities for the type of organization, its plans, and its markets.42. Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.43. Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.44. Owner financing refers to resources contributed by creditors or lenders.45. Revenues are increases in equity from a company's earning activities.46. A net loss occurs when revenues exceed expenses.47. Net income occurs when revenues exceed expenses.48. Liabilities are the owner's claim on assets.49. Assets are the resources of a company and are expected to yield future benefits.50. Owner’s withdrawals are expenses.51. The accounting equation can be restated as: Assets - Equity = Liabilities.52. The accounting equation implies that: Assets + Liabilities = Equity.53. Owner's investments are increases in equity from a company's earnings activities.54. Every business transaction leaves the accounting equation in balance.55. An external transaction is an exchange of value within an organization.56. From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.57. Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.58. An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)59. Return on assets is often stated in ratio form as the amount of average total assets divided by income.60. Return on assets is also known as return on investment.61. Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.62.Arrow’s net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%.63. Return on assets reflects the effectiveness of a company’s ability to generate profit through productive use of its assets.64. Risk is the uncertainty about the return we expect to earn.65. Generally the lower the risk, the lower the return that can be expected.66. U. S. Government Treasury bonds provide high return and low risk to investors.67. The four basic financial statements include the balance sheet, income statement, statement of owner's equity, and statement of cash flows.68. An income statement reports on investing and financing activities.69. A balance sheet covers a period of time such as a month or year.70. The income statement displays revenues earned and expenses incurred over a specified period of time due to earnings activities.71. The statement of cash flows shows the net effect of revenues and expenses for a reporting period.72. The income statement shows the financial position of a business on a specific date.73. The first section of the income statement reports cash flows from operating activities.74. The balance sheet is based on the accounting equation.75. Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.76. Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.77. The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.78. The income statement reports on operating activities at a point in time.79. The statement of cash flows identifies cash flows separated into operating, investing, and financing activities over a period of time.80. Ending capital reported on the statement of owner’s equity is calculated by adding owner investments and net losses and subtracting net incomes and withdrawals. Multiple Choice Questions81. Accounting is an information and measurement system that does all of the following except:A. Identifies business activities.B. Records business activities.C. Communicates business activities.D. Does not use technology to improve accuracy in reporting.E. Helps people make better decisions.82. Technology:A. Has replaced accounting.B. Has not changed the work that accountants do.C. Has closely linked accounting with consulting, planning, and other financial services.D. In accounting has replaced the need for decision makers.E. In accounting is only available to large corporations.83.The primary objective of financial accounting is:A. To serve the decision-making needs of internal users.B. To provide financial statements to help external users analyze an organization's activities.C. To monitor and control company activities.D. To provide information on both the costs and benefits of looking after products and services.E. To know what, when, and how much to produce.84.The area of accounting aimed at serving the decision making needs of internal users is:A. Financial accounting.B. Managerial accounting.C. External auditing.D. SEC reporting.E. Bookkeeping.85.External users of accounting information include all of the following except:A. Shareholders.B. Customers.C. Purchasing managers.D. Government regulators.E. Creditors.86. All of the following regarding a Certified Public Accountant are true except:A. Must meet education and experience requirements.B. Must pass an examination.C. Must exhibit ethical character.D. May also be a Certified Management Accountant.E. Cannot hold any certificate other than a CPA.87. Ethical behavior requires:A. That auditors' pay not depend on the success of the client's business.B. Auditors to invest in businesses they audit.C. Analysts to report information favorable to their companies.D. Managers to use accounting information to benefit themselves.E. That auditors' pay depend on the success of the client's business.88. Social responsibility:A. Is a concern for the impact of our actions on society.B. Is a code that helps in dealing with confidential information.C. Is required by the SEC.D. Requires that all businesses conduct social audits.E. Is limited to large companies.89. All of the following are true regarding ethics except:A. Ethics are beliefs that separate right from wrong.B. Ethics rules are often set for CPAs.C. Ethics do not affect the operations or outcome of a company.D. Are critical in accounting.E. Ethics can be hard to apply.90. The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:A. Business entity assumption.B. Monetary unit assumption.C. Going-concern assumption.D. Time-period assumption.E. Objectivity91. A corporation:A. Is a business legally separate from its owners.B. Is controlled by the FASB.C. Has shareholders who have unlimited liability for the acts of the corporation.D. Is the same as a limited liability partnership.E. Is not subject to double taxation.92. The group that attempts to create more harmony among the accounting practices of different countries is the:A. AICPA.B. IASB.C. CAP.D. SEC.E. FASB.93. The private group that currently has the authority to establish generally accepted accounting principles in the United States is the:A. APB.B. FASB.C. AAA.D. AICPA.E. SEC.94. The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:A. Time-period assumption.B. Business entity assumption.C. Going-concern assumption.D. Revenue recognition principle.E. Cost principle.95. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:A. Going-concern assumption.B. Business entity assumption.C. Objectivity principle.D. Cost Principle.E. Monetary unit assumption.96. If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:A. $95,000.B. $137,000.C. $138,500.D. $140,000.E. $150,000.97. To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:A. Objectivity principle.B. Monetary unit assumption.C. Business entity assumption.D. Going-concern assumption.E. Revenue recognition principle.98. The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash orcash-equivalent amount given in exchange, is the:A. Accounting equation.B. Cost principle.C. Going-concern assumption.D. Realization principle.E. Business entity assumption.99. The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:A. Going-concern assumption.B. Cost principle.C. Revenue recognition principle.D. Objectivity principle.E. Business entity assumption.100. The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:A. Revenue recognition principle.B. Going-concern assumption.C. Objectivity principle.D. Business entity assumption.E. Cost principle.101. The International Accounting Standards Board (IASB):A. Hopes to create harmony among accounting practices of different countries.B. Is the government group that establishes reporting requirements for companies that issue stock to the public.C. Has the authority to impose its standards on companies.D. Is the only source of generally accepted accounting principles (GAAP).E. Only applies to companies that are members of the European Union.102. The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?A. Monetary unit assumption.B. Going-concern assumption.C. Cost principle.D. Business entity assumption.E. Revenue recognition principle.103. On December 15 of the current year, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in the following year. Which accounting principle would require Myers Legal Services to record the legal fees revenue in the following year and not the year the cash was received?A. Monetary unit assumption.B. Going-concern assumption.C. Cost principle.D. Business entity assumption.E. Revenue recognition principle.104. Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?A. Monetary unit assumption.B. Going-concern assumption.C. Cost principle.D. Business entity assumption.E. Matching principle.105. A limited partnership:A. Includes a general partner with unlimited liability.B. Is subject to double taxation.C. Has owners called stockholders.D. Is the same as a corporation.E. May only have two partners.106. A partnership:A. Is also called a sole proprietorship.B. Has unlimited liability for its partners.C. Has to have a written agreement in order to be legal.D. Is a legal organization separate from its owners.E. Has owners called shareholders.107. Which of the following accounting principles would require that all goods and services purchased be recorded at cost?A. Going-concern assumption.B. Matching principle.C. Cost principle.D. Business entity assumption.E. Consideration assumption.108. Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?A. Going-concern assumption.B. Matching principle.C. Cost principle.D. Business entity assumption.E. Consideration assumption.109. Revenue is properly recognized:A. When the customer's order is received.B. Only if the transaction creates an account receivable.C. At the end of the accounting period.D. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price.E. When cash from a sale is received.110. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land account transaction amount to handle the sale of the land in the seller's books is:A. $85,000 increase.B. $85,000 decrease.C. $137,000 increase.D. $137,000 decrease.E. $140,000 decrease.111. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. What is the effect of the sale on the accounting equation for the seller?A. Assets increase $52,000; owner's equity increases $52,000.B. Assets increase $85,000; owner's equity increases $85,000.C. Assets increase $137,000; owner's equity increases $137,000.D. Assets increase $140,000; owner's equity increases $140,000.E. Assets decrease $85,000; owner's equity decreases $85,000.112. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid off the loan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation?A. Assets increase $52,000; owner's equity increases $22,000; liabilities decrease $30,000B. Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000C. Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000D. Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000E. Assets decrease $55,000; owner's equity decreases $55,000; liabilities decrease $30,000113. An example of a financing activity is:A. Buying office supplies.B. Obtaining a long-term loan.C. Buying office equipment.D. Selling inventory.E. Buying land.114. An example of an operating activity is:A. Paying wages.B. Purchasing office equipment.C. Borrowing money from a bank.D. Selling stock.E. Paying off a loan.115. Operating activities:A. Are the means organizations use to pay for resources like land, buildings and equipment.B. Involve using resources to research, develop, purchase, produce, distribute and market products and services.C. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.D. Are also called asset management.E. Are also called strategic management.116. An example of an investing activity is:A. Paying wages of employees.B. Withdrawals by the owner.C. Purchase of land.D. Selling inventory.E. Contribution from owner.117. Net Income:A. Decreases equity.B. Represents the amount of assets owners put into a business.C. Equals assets minus liabilities.D. Is the excess of revenues over expenses.E. Represents owners' claims against assets.118. If equity is $300,000 and liabilities are $192,000, then assets equal:A. $108,000.B. $192,000.C. $300,000.D. $492,000.E. $792,000.119. Resources that are expected to yield future benefits are:A. Assets.B. Revenues.C. Liabilities.D. Owner's Equity.E. Expenses.120. Increases in equity from a company's earnings activities are:A. Assets.B. Revenues.C. Liabilities.D. Owner's Equity.E. Expenses.121. The difference between a company's assets and its liabilities, or net assets is:A. Net income.B. Expense.C. Equity.D. Revenue.E. Net loss.122. Creditors' claims on the assets of a company are called:A. Net losses.B. Expenses.C. Revenues.D. Equity.E. Liabilities.123. Decreases in equity that represent costs of assets or services used to earn revenues are called:A. Liabilities.B. Equity.C. Withdrawals.D. Expenses.E. Owner's Investment.124. The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:A. Income statement equation.B. Accounting equation.C. Business equation.D. Return on equity ratio.E. Net income.125. Revenues are:A. The same as net income.B. The excess of expenses over assets.C. Resources owned or controlled by a companyD. The increase in equity from a company’s earning activities.E. The costs of assets or services used.126. If assets are $99,000 and liabilities are $32,000, then equity equals:A. $32,000.B. $67,000.C. $99,000.D. $131,000.E. $198,000.127. Another name for equity is:A. Net income.B. Expenses.C. Net assets.D. Revenue.E. Net loss.128. The excess of expenses over revenues for a period is:A. Net assets.B. Equity.C. Net loss.D. Net income.E. A liability.129. A payment to an owner is called a(n):A. Liability.B. Withdrawal.C. Expense.D. Contribution.E. Investment.130. Distributions of assets by a business to its owners are called:A. Withdrawals.B. Expenses.C. Assets.D. Retained earnings.E. Net Income.131. The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?A. $900,000.B. $700,000.C. $500,000.D. $200,000.E. It is impossible to determine unless the amount of this owners' investment is known.132. On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of June 30 of the current year?A. $8,300B. $13,050C. $20,500D. $31,100E. $40,400133. Assets created by selling goods and services on credit are:A. Accounts payable.B. Accounts receivable.C. Liabilities.D. Expenses.E. Equity.134. An exchange of value between two entities is called:A. The accounting equation.B. Recordkeeping or bookkeeping.C. An external transaction.D. An asset.E. Net Income.135. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?A. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.136. How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?A. +$10,000 accounts receivable, -$10,000 accounts payable.B. +$10,000 accounts receivable, +$10,000 accounts payable.C. +$10,000 accounts receivable, +$10,000 cash.D. +$10,000 accounts receivable, +$10,000 revenue.E. +$10,000 accounts receivable, -$10,000 revenue.137. Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?A. Assets increase by $75,000 and expenses increase by $75,000.B. Assets increase by $75,000 and expenses decrease by $75,000.C. Liabilities increase by $75,000 and expenses decrease by $75,000.D. Assets decrease by $75,000 and expenses decrease by $75,000.E. Assets increase by $75,000 and liabilities increase by $75,000.138. Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:A. Total assets decrease and equity increases.B. Both total assets and total liabilities decrease.C. Total assets, total liabilities, and equity are unchanged.D. Both total assets and equity are unchanged and liabilities increase.E. Total assets increase and equity decreases.139. If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:A. Decreased $105,000.B. Decreased $45,000.C. Increased $30,000.D. Increased $45,000.E. Increased $105,000.140. If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:A. Increased $22,000.B. Decreased $22,000.C. Increased $89,000.D. Decreased $156,000.E. Increased $156,000.141. If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?A. Assets would have increased $55,000.B. Assets would have decreased $55,000.C. Assets would have increased $19,000.D. Assets would have decreased $19,000.E. None of these.142. If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?A. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.B. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.C. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.D. There would be no effect on the accounts because the accounts are affected by the same amount.E. None of these.。

《会计学原理》英文版考试复习练习（1-4章）

《会计学原理》英⽂版考试复习练习（1-4章）1. Accounting is an information system that:A. Identifies business activities.B. Records business activities.C. Communicates business activities.D. Helps people make better decisions.E. All of these.2. Creditors' claims on the assets of a company are called:A. Net losses.B. Expenses.C. Revenues.D. Equity.E. Liabilities.3. The excess of expenses over revenues for a period is:A. Net assets.B. Equity.C. Net loss.D. Net income.E. A liability.4. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?A. $8,300B. $13,050C. $20,500D. $31,1005. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?A. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.6. The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called:A. A Balance Sheet.B. A Statement of Owner's Equity.C. A Statement of Cash Flows.D. An Income Statement.E. A Statement of Financial Position.7. A balance sheet lists:A. The types and amounts of the revenues and expenses of a business.B. Only the information about what happened to equity during a time period.C. The types and amounts of assets, liabilities, and equity of a business as of a specific date.D. The inflows and outflows of cash during the period.E. The assets and liabilities of a company but not the owner's equity.8. The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss); withdrawals; and the ending balance, is the:A. Statement of Financial Position.B. Statement of Cash Flows.C. Balance Sheet.D. Income Statement.E. Statement of Owner's Equity.9. Accounts payable appear on which of the following statements?A. Balance Sheet.B. Income Statement.C. Statement of Owner's Equity.D. Statement of Cash Flows.E. Transaction Statement.10. A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? A. $17,000.B. $29,000.C. $71,000.D. $88,000.E. $105,000.11. The accounting process begins with:A. Analysis of business transactions and source documents.B. Preparing financial statements and other reports.C. Summarizing the recorded effect of business transactions.D. Presentation of financial information to decision-makers.E. Preparation of the trial balance.12. The account used to record the transfers of assets from a business to its owner is:A. A revenue account.B. The owner's withdrawals account.C. The owner's capital account.D. An expense account.E. A liability account.13. A written promise to pay a definite sum of money on a specified future date is a(n):A. Unearned revenue.B. Prepaid expense.C. Credit account.D. Note payable.E. Account receivable.14. A ledger is:A. A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.B. A journal in which transactions are first recorded.C. A collection of documents that describe transactions and events entering the accounting process.D. A list of all accounts with their debit balances at a point in time.E. A record containing all accounts and their balances used by a company.15. Double-entry accounting is an accounting system:A. That records each transaction twice.B. That records the effects of transactions and other events in at least two accounts with equal debits and credits.C. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.D. That may only be used if T-accounts are used.E. That insures that errors never occur.16. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include aA. Debit to Telephone Expense for $300.B. Credit to Accounts Payable for $300.C. Debit to Cash for $300.D. Credit to Telephone Expense for $300.E. Debit to Accounts Payable for $300.17. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include aA. Debit to Unearned Management Fees for $60,000.B. Credit to Management Fees Earned for $60,000.C. Credit to Cash for $60,000.D. Credit to Unearned Management Fees for $60,000.E. Debit to Management Fees Earned for $60,000.18. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:A. Debit to Accounts Payable.B. Debit to Accounts Receivable.C. Credit to Cash.D. Credit to Accounts Payable.E. Credit to Wisconsin Rentals, Capital.19. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?A. A $0 balance.B. A $4,300 debit balance.C. A $4,300 credit balance.D. A $5,700 debit balance.E. A $5,700 credit balance.20. The following transactions occurred during July:1. Received $900 cash for services provided to a customer during July.2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.4. Provided services to a customer on credit, $375.5. Borrowed $6,000 from the bank by signing a promissory note.6. Received $1,250 cash from a customer for services to be rendered next year.What was the amount of revenue for July?A. $ 900.B. $ 1,275.C. $ 2,525.D. $ 3,275.E. $11,100.21. At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:A. $54,700.B. $49,700.C. $2,300.D. $54,300.E. $49,300.22. During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?A. $83,900.B. $91,900.C. $6,600.D. $75,900.E. $4,900.23. The time period principle assumes that an organization's activities can be divided into specific time periods including:A. Months.B. Quarters.C. Fiscal years.D. Calendar years.E. All of these.24. A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the:A. Operating cycle of a business.B. Time period principle.C. Going-concern principle.D. Matching principle.E. Accrual basis of accounting.25. The accounting principle that requires revenue to be reported when earned is the:A. Matching principle.B. Revenue recognition principle.C. Time period principle.D. Accrual reporting principle.E. Going-concern principle.26. Adjusting entries:A. Affect only income statement accounts.B. Affect only balance sheet accounts.C. Affect both income statement and balance sheet accounts.D. Affect only cash flow statement accounts.E. Affect only equity accounts.27. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:A. Recognition principle.B. Cost principle.C. Cash basis of accounting.D. Matching principle.E. Time period principle.28. Adjusting entries are journal entries made at the end of an accounting period for the purpose of:A. Updating liability and asset accounts to their proper balances.B. Assigning revenues to the periods in which they are earned.C. Assigning expenses to the periods in which they are incurred.D. Assuring that financial statements reflect the revenues earned and the expenses incurred.E. All of these.29. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:A. Cash basis accounting.B. The matching principle.C. The time period principle.D. Accrual basis accounting.E. Revenue basis accounting.30. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:A. Items that require contra accounts.B. Items that require adjusting entries.C. Asset and equity.D. Asset accounts.E. Income statement accounts..31. The accrual basis of accounting:A. Is generally accepted for external reporting because it is more useful than cash basis for most business decisions.B. Is flawed because it gives complete information about cash flows.C. Recognizes revenues when received in cash.D. Recognizes expenses when paid in cash.E. Eliminates the need for adjusting entries at the end of each period32. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:A. Understate net income by $28,000.B. Overstate net income by $28,000.C. Have no effect on net income.D. Overstate assets by $28,000.E. Understate assets by $28,000.33. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:A. Assets overstated and equity understated.B. Assets and equity both understated.C. Assets overstated, net income understated, and equity overstated.D. Assets, net income, and equity understated.E. Assets, net income, and equity overstated.34. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:A. An overstatement of net income.B. An overstatement of assets.C. An overstatement of liabilities.D. An overstatement of equity.E. An understatement of liabilities.35. Accrued revenues:A. At the end of one accounting period often result in cash receipts from customers in the next period.B. At the end of one accounting period often result in cash payments in the next period.C. Are also called unearned revenues.D. Are listed on the balance sheet as liabilities.E. Are recorded at the end of an accounting period because cash has already been received for revenues earned.36. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):A. Accrued expense.B. Contra account.C. Accrued revenue.D. Intangible asset.E. Adjunct account.37. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:A. Debit Office Supplies $105 and credit Office Supplies Expense $105.B. Debit Office Supplies Expense $105 and credit Office Supplies $105.C. Debit Office Supplies Expense $254 and credit Office Supplies $254.D. Debit Office Supplies $254 and credit Office Supplies Expense $254.E. Debit Office Supplies $105 and credit Supplies Expense $254.38. On April 1, 2009, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2009?D. $337.50.E. $37.50.39. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800.B. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360.D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360.E. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.40. PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include:A. A debit to Rent Earned for $2,400.B. A credit to Unearned Rent for $2,400.C. A debit to Cash for $6,400.D. A credit to Rent Earned for $2,400.E. A debit to Unearned Rent for $4,000.41. A company pays each of its two office employees each Friday at the rate of $100 per day fora five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:A. Debit Unpaid Salaries $600 and credit Salaries Payable $600.B. Debit Salaries Expense $400 and credit Salaries Payable $400.C. Debit Salaries Expense $600 and credit Salaries Payable $600.D. Debit Salaries Payable $400 and credit Salaries Expense $400.E. Debit Salaries Expense $400 and credit Cash $400.42. The difference between the cost of an asset and the accumulated depreciation for that asset is calledA. Depreciation Expense.B. Unearned Depreciation.C. Prepaid Depreciation.D. Depreciation Value.E. Book Value.43. A company purchased a new truck at a cost of $42,000 on July 1, 2009. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2009?D. $6,500.E. $7,000.44. If a company records prepayment of expenses in an asset account, the adjusting entry would:A. Result in a debit to an expense and a credit to an asset account.B. Cause an adjustment to prior expense to be overstated and assets to be understated.C. Cause an accrued liability account to exist.D. Result in a debit to a liability and a credit to an asset account.E. Decrease cash.45. If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:A. A debit to Cash and a credit to Salaries Payable.B. A debit to Cash and a credit to Prepaid Salaries.C. A debit to Salaries Payable and a credit to Cash.D. A debit to Salaries Payable and a credit to Salaries Expense.E. No entry would be necessary on January 5.46. A company purchased new computers at a cost of $14,000 on September 30, 2010. The computers are estimated to havea useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010?A. $250B. $750C. $875D. $1,000E. $3,00047. A trial balance prepared after adjustments have been recorded is called a(n) :A. Balance sheet.B. Adjusted trial balance.C. Unadjusted trial balance.D. Classified balance sheet.E. Unclassified balance sheet.48. When closing entries are made:A. All ledger accounts are closed to start the new accounting period.B. All temporary accounts are closed but not the permanent accounts.C. All real accounts are closed but not the nominal accounts.D. All permanent accounts are closed but not the nominal accounts.E. All balance sheet accounts are closed.49. Assets, liabilities, and equity accounts are not closed; these accounts are called:A. Nominal accounts.B. Temporary accounts.C. Permanent accounts.D. Contra accounts.E. Accrued accounts50. Which of the following is the usual final step in the accounting cycle?A. Journalizing transactions.B. Preparing an adjusted trial balance.C. Preparing a post-closing trial balance.D. Preparing the financial statements.E. Preparing a work sheet.51. A classified balance sheet:A. Measures a company's ability to pay its bills on time.B. Organizes assets and liabilities into important subgroups.C. Presents revenues, expenses, and net income.D. Reports operating, investing, and financing activities.E. Reports the effect of profit and withdrawals on owner's capital.52. The assets section of a classified balance sheet usually includes:A. Current assets, long-term investments, plant assets, and intangible assets.B. Current assets, long-term assets, revenues, and intangible assets.C. Current assets, long-term investments, plant assets, and equity.D. Current liabilities, long-term investments, plant assets, and intangible assets.E. Current assets, liabilities, plant assets, and intangible assets.53. Two common subgroups for liabilities on a classified balance sheet are:A. current liabilities and intangible liabilities.B. present liabilities and operating liabilities.C. general liabilities and specific liabilities.D. intangible liabilities and long-term liabilities.E. current liabilities and long-term liabilities.54. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:A. Income Summary account.B. Closing account.C. Balance column account.D. Contra account.E. Nominal account.55. The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?A. $ 65,000.B. $ 80,000.C. $130,000.D. $145,000.E. $280,000.。

会计学原理 1—6章英文练习

Chap 11.Mostly the objective of a business is not to make a profit.错2. A corporation is a business that is legally separate and distinct from its owners.对3. Accounting is a service that provides many different users with financial information to make economic decisions.对4. Primary users of accounting information are accountants.错5. "Managerial accounting is primarily concerned with the recording and reporting of economic data and activities of an entity for use by owners, creditors, governmental agencies, and the public." 错6. The financial statements of a proprietorship should include the owner's personal assets and liabilities.错7. The unit of measurement concept requires that economic data be recorded in a common unit of measurement 对8. "If a building is appraised for $90,000, offered for sale at $95,000, and the buyer pays $85,000 cash for it, the buyer would record the building at $90,000." 错9.An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a答案BA. proprietorshipB. corporationC. partnershipD. governmental unit10.Which of the following best describes accounting? BA. records economic data but does not communicate the data to users according to any specific rulesB. is an information system that provides reports to stakeholdersC. is of no use by individuals outside of the businessD. is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements11. The two most common specialized fields of accounting in practice are BA. forensic accounting and financial accountingB. managerial accounting and financial accountingC. managerial accounting and environmental accountingD. financial accounting and tax accounting systems12.Which of the following is not a characteristic of financial accounting ______ CA. external reportingB. general-purpose informationC. future orientationD. standard and uniform reporting13.The business entity concept means that DA. the owner is part of the business entityB. an entity is organized according to state or federal statutesC. an entity is organized according to the rules set by the FASBD. "the entity is an individual economic unit for which data are recorded, analyzed, and reported"14."For accounting purposes, the business entity should be considered separate from its owners if the entity is" DA. a corporationB. a proprietorshipC. a partnershipD. all of the above15."Tom Smith is the owner of a small bookstore. He mainly does business through the internet so that the store has no physical office room and the ordersare dealt with at home. As a result, such bills as electricity, heating, telephone, and housecleaning are all recorded as expenses of the bookstore. This is not correct from the viewpoint of _______" AA. the separate entity conceptB. the going concern assumptionC. the accounting period conceptD. the monetary measurement assumption16.Which of the followings assures the accounting information users of timely decision___________ CA. the separate entity conceptB. the going concern assumptionC. the accounting period conceptD. the monetary measurement assumption17."Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities?" DA. Smith Company and Connie Smith's personal recordsB. Brown Company and Connie Smith's personal recordsC. Brown CompanyD. Smith Company and Brown Company18."The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000 and therefore wrote up the land account to $16,000. Which accounting concept(s) was (were) violated?" CA. separate entity conceptB. money measurement conceptC. historical cost conceptD. accounting period concept19.“Equipment with an estimated m arket value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is" AA.50000B.65000C.10000D.4500020."(mark out all correct answers) Which of the followings should not be included in the financial records of Delicious Sam, a bakery at the corner of the street ____________" A C DA. "Sweetie Alice, another bakery located opposite to Delicious Sam, lowered its price for brown bread from 50 cents to 30 cents "B. Delicious Sam purchased 100kg of flour for $50C. "Sweetie Alice sold cookie of $10 to Sam, the owner of Delicious Sam."D. Delicious Sam promised free delivery to bulk buying customers in order to compete with Sweetie Alice.E. Sam withdrew $200 from his personal bank account to pay the bill from the miller who supplied flour to Delicious SamChap 2 –a3.An asset must have a physical substance and can be touched. 错9. Match each of the following items to: a. assets; b. liabilities; c. owners' equity;d. none of above items. 1.ending inventory ; 2.accounts payable to the suppliers;3.salaries due but unpaid;4.accounts receivable;5.retained earnings;6.capital stock;7.prepaid insurance答案：a b b a c c a13.How does the collection of cash from a customer who was previously put on account affect the accounting equation?答案CA．assets decrease; owner's equity decreases B.assets increase; owner's equity increasesC. assets increase; assets decreaseD. assets increase; liabilities increase25.(mark out all correct answers) The owner’s equity accounts of a partnership might be答案 B D EA. capital stockB. "Tom Smith, capital"C. retained earningsD. "Alice Butler, capital"E. "Pauline Jones, capital"Chap 2 –b3.Indicate for each of following transactions should related accounts be debited or credited. 1.Purchased inventory on account. The inventory account should be____; 2.Borrowed money from a bank. The notes payable account should be___; 3.Issued stock for cash. The capital stock should be____ 答案D C C6.Owner's equity is increased by 答案BA. cashB. revenueC. accounts receivableD. all of the above8."For a corporation, temporary proprietorship accounts are supposed to replace the ____________________ account temporarily."答案 retained earnings12.Consuming goods and services in the process of generating revenues results in expenses. 对17. Net profit reported in the Income statement will not be reduced when the corporation declares and pays cash dividends to the stockholders 对21. A credit signifies a decrease in 答案AA. drawingsB. liabilitiesC. capitalD. revenue27."Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?" 答案BA. "assets increase $75,000; owner's equity increases $75,000"B. "assets increase $55,000; owner's equity increases $55,000"C. "assets increase $75,000; liabilities decrease $20,000; owner's equity increases $55,000"D. "assets increase $20,000; no change for liabilities; owner's equity increases $75,000"29.Which of the following entries records the payment of an account payable? 答案 DA. debit Cash; credit Accounts PayableB. debit Accounts Receivable; credit CashC. debit Cash; credit Supplies ExpenseD. debit Accounts Payable; credit CashChap 3 –a2.Which one of the following is a purpose of the ledger rather than a purpose of the journal?答案 AA. to show increases and decreases in accountsB. to show a chronological order for transactionsC. to show a complete transaction in one placeD. to help locate errors10.The accounting entry to record the purchase of office supplies for cash will not involve an expense account. 对14.The process of transferring the data from the journal to the ledger accounts is posting. 对20.Posting a transaction twice will not cause the trial balance totals to be unequal.对21.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. 错23."The total number at the bottom of the trial balance should equal to the total number at the bottom of the balance sheet, because they both show the equality of the accounting equation." 错24.(mark out all correct answers) The credit column of a T/B might include _______ accounts。

会计学原理快速测试(英文版)

TEST FOR CHAPTER 1-4注：判断题红色标记句为错句，选择题加下划线选项为正确答案PART I TRUE OR FALSE1)Accounting is an information and measurement system that identifies, records, and communicatesrelevant, reliable, and comparable formation about an organization's business activities.2)Managerial accounting is the area of accounting that provides internal reports to assist the decisionmaking needs of internal users.3)The primary objective of financial accounting is to provide general purpose financial statements tohelp external users analyze and interpret an organization's activities.4)Internal users include lenders, shareholders, brokers and managers.5)In the partnership form of business, the owners are called stockholders.6)The business entity principle means that a business will continue operating for an indefinite periodof time.7)As a general rule, revenues should not be recognized in the accounting records until it is received incash.8)Accrued expenses at the end of one accounting period are expected to result in cash payments in afuture period.9)The idea that a business will continue to operate until it can sell its assets to pay its creditorsunderlies the going-concern assumption.10)The monetary unit assumption means that all international transactions must be expressed indollars.11)The International Accounting Standards Board (IASB) is the government group that establishesreporting requirements for companies that issue stock to the public.12)Expenses decrease equity and are the costs of assets or services used to earn revenues.13)A company might provide a service or product on credit. "On credit" implies that the cash paymentwill occur on a later date.14)Each adjusting entry affects only one or more income statement account and never cash.15)The legitimate claims of a business's creditors take precedence over the claims of the businessowner.16)Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrueditems.17)From an accounting perspective, an event is a happening that affects an entity's accounting equation,but cannot be measured.18)The income statement is a financial statement that shows revenues earned and expenses incurredduring a specified period of time.19)Chuck T aylor withdrew $6,000 in cash from FastForward. This amount should be included as anexpense on the income statement.20)Source documents provide evidence of business transactions and are the basis for accountingentries.21)Items such as sales tickets, bank statements, checks, and purchase orders are source documents.22)It is not necessary to keep separate accounts for all items of importance for business decisions.23)Closing entries are necessary so that owner's capital will begin each period with a zero balance.24)Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business.25)When a company provides services for which cash will not be received until some future date, thecompany should record the amount received as unearned revenue for the amount charged to the customer.26)Double entry accounting requires that each transaction affect, and be recorded in, at least twoaccounts.27)Asset accounts normally have credit balances and revenue accounts normally have debit balances.28)A transaction that decreases an asset account and increases a liability account must also affect oneor more other accounts.29)Adjusting entries are used to bring asset or liability accounts to their proper amount and update therelated expense or revenue account.30)When a company bills a customer for $600 for services rendered, the journal entry to record thistransaction will include a $600 debit to Services Revenue.31)The journal is known as the book of final entry because financial statements are prepared from it.32)The closing process takes place after financial statements have been prepared.33)A trial balance that balances is not proof of complete accuracy in recording transactions.34)Closing entries are designed to transfer the end-of-period balances in the revenue accounts, theexpense accounts, and the withdrawals account to owner's capital.35)If cash was incorrectly debited for $100 instead of correctly credited for $100, the cash account is outof balance by $100.36)Adjusting entries result in a better matching of revenues and expenses for the period.37)The matching principle requires that expenses get recorded in the same accounting period as therevenues that are earned as a result of the expenses, not when cash is paid.38)On October 15, a company received $15,000 cash as a down payment on a consulting contract. Theamount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.39)Closing revenue and expense accounts at the end of the accounting period serves to make therevenue and expense accounts ready for use in the next period.40)Accrued expenses reflect transactions where cash is paid before a related expense is recognized.41)Before an adjusting entry is made to recognize the cost of expired insurance for the period, PrepaidInsurance and Insurance Expense are both overstated.42)A company purchased $6,000 worth of supplies in August and recorded the purchase in the Suppliesaccount. On August 31, the fiscal year-end, the supplies count equaled $3,200. The adjusting entry would include a $2,800 debit to Supplies.43)In preparing statements from the adjusted trial balance, the balance sheet must be prepared first.44)A company performs 20 days work on a 30-day contract before the end of the year. The totalcontract is valued at $6,000 and payment is not due until the contract is fully completed. The adjusting entry includes a $4,000 credit to unearned revenue.45)An unadjusted trial balance is a list of accounts and balances prepared before adjustments arerecorded and posted.46)Financial statements can be prepared directly from the information in the adjusted trial balance.47)Income Summary is a temporary account only used for the closing process.48)Revenue accounts should begin each accounting period with zero balances.49)The last four steps in the accounting cycle include preparing the adjusted trial balance, preparingfinancial statements and recording closing and adjusting entries.50)When expenses exceed revenues, there is a net loss and the Income Summary account would have acredit balance.51)A post-closing trial balance is a list of permanent accounts and their balances from the ledger afterall closing entries are journalized and posted.PART II MULTIPLE-CHOICE1. The primary objective of financial accounting is:A. To serve the decision-making needs of internal users.B. To provide financial statements to help external users analyze an organization's activities.C. To monitor and control company activities.D. To provide information on both the costs and benefits of looking after products and services.E. To know what, when, and how much to produce.2. Internal users of accounting information include:A. Shareholders.B. Managers.C. Lenders.D. Suppliers.E. Customers.3. A corporation:A. Is a business legally separate from its owners.B. Is controlled by the FASB.C. Has shareholders who have unlimited liability for the acts of the corporation.D. Is the same as a limited liability partnership.E. All of these.4. The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:A. Objectivity principle.B. Business entity assumption.C. Going-concern assumption.D. Revenue recognition principle.E. Cost principle.5. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:A. Going-concern principle.B. Business entity principle.C. Objectivity principle.D. Cost Principle.E. Monetary unit principle.6. If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:A. $95,000.B. $137,000.C. $138,500.D. $140,000.E. $150,000.7. To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:A. Objectivity principle.B. Realization principle.C. Business entity principle.D. Going-concern principle.E. Revenue recognition principle.8. The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:A. Revenue recognition principle.B. Going-concern principle.C. Objectivity principle.D. Business entity principle.E. Cost principle.9. On December 15, 2007, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2008. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2008 and not 2007?A. Monetary unit principleB. Going-concern principleC. Cost principleD. Business entity principleE. Revenue recognition principle10. A partnership:A. Is also called a sole proprietorship.B. Has unlimited liability.C. Has owners called shareholders.D. Has to have a written agreement in order to be legal.E. Is a legal organization separate from its owners.11. According to generally accepted accounting principles, a company's balance sheet should show the company's assets at:A. The cash equivalent value of what was given up or received.B. The current market value of the asset received in all cases.C. The cash paid only, even if something other than cash was given in the exchange.D. The best estimate of a certified internal auditor.E. The objective value to external users.12. Revenue is properly recognized:A. When the customer's order is received.B. Only if the transaction creates an account receivable.C. At the end of the accounting period.D. When cash from a sale is received.E. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price.13. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessedfor tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. What is the effect of the sale on the accounting equation for the seller?A. Assets increase $52,000; owner's equity increases $52,000B. Assets increase $85,000; owner's equity increases $85,000C. Assets increase $137,000; owner's equity increases $137,000D. Assets increase $140,000; owner's equity increases $140,000E. None of these14. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid off the loan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation?A. Assets increase $52,000; owner's equity increases $22,000; liabilities decrease $30,000B. Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000C. Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000D. Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000E. Assets decrease $55,000; owner's equity decreases $55,000; liabilities decrease $30,00015. The difference between a company's assets and its liabilities, or net assets is:A. Net income.B. Expense.C. Equity.D. Revenue.E. Net loss.16. Which of the following statements is true about assets?A. They are economic resources owned or controlled by the business.B. They are expected to provide future benefits to the business.C. They appear on the balance sheet.D. Claims on them can be shared between creditors and owners.E. All of these.17. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?A. $8,300B. $13,050C. $20,500D. $31,100E. $40,40018. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?A. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.B. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.C. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.E. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.19. How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?A. +$10,000 accounts receivable, -$10,000 accounts payable.B. +$10,000 accounts receivable, +$10,000 accounts payable.C. +$10,000 accounts receivable, +$10,000 cash.D. +$10,000 accounts receivable, +$10,000 revenue.E. +$10,000 accounts receivable, -$10,000 revenue.20. Source documents include all of the following except:A. Sales tickets.B. Ledgers.C. Checks.D. Purchase orders.E. Bank statements.21. Which of the following statements is correct?A. When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.B. Promises of future payment are called accounts receivable.C. Increases and decreases in cash are always recorded in the owner's capital account.D. An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.E. Accrued liabilities include accounts receivable.22. A written promise to pay a definite sum of money on a specified future date is a(n):A. Unearned revenue.B. Prepaid expense.C. Credit account.D. Note payable.E. Account receivable.23. A collection of all accounts and their balances used by a business is called a:A. Journal.B. Book of original entry.C. General Journal.D. Balance column journal.E. Ledger.24. A list of all accounts and the identification number assigned to each account used by a company is called a:A. Source document.B. Journal.C. Trial balance.D. Chart of accounts.E. General Journal.25. Which of the following statements is incorrect?A. The normal balance of accounts receivable is a debit.B. The normal balance of owner's withdrawals is a debit.C. The normal balance of unearned revenues is a credit.D. The normal balance of an expense account is a credit.E. The normal balance of the owner's capital account is a credit.26. A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a:A. Withdrawals account.B. Capital account.C. Drawing account.D. T-account.E. Balance column sheet.27. Double-entry accounting is an accounting system:A. That records each transaction twice.B. That records the effects of transactions and other events in at least two accounts with equal debits and credits.C. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.D. That may only be used if T-accounts are used.E. That insures that errors never occur.28. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include aA. Debit to Unearned Management Fees for $60,000.B. Credit to Management Fees Earned for $60,000.C. Credit to Cash for $60,000.D. Credit to Unearned Management Fees for $60,000.E. Debit to Management Fees Earned for $60,000.29. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?A. A $0 balance.B. A $4,300 debit balance.C. A $4,300 credit balance.D. A $5,700 debit balance.E. A $5,700 credit balance.30. On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?A. $ 5,000.B. $47,000.C. $52,000.D. $57,000.E. $32,000.31. The following transactions occurred during July:1. Received $900 cash for services provided to a customer during July.2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.4. Provided services to a customer on credit, $375.5. Borrowed $6,000 from the bank by signing a promissory note.6. Received $1,250 cash from a customer for services to be rendered next year.What was the amount of revenue for July?A.$ 900.B.$ 1,275.C.$ 2,525.D.$ 3,275.E.$11,100.32. During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?A. $83,900.B. $91,900.C. $6,600.D. $75,900.E. $4,900.33. On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Bob withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:A. A decrease of $9,500.B. An increase of $9,500.C. An increase of $30,500.D. A decrease of $30,500E. Impossible to determine from the information provided.34. A balance column ledger account is:A. An account entered on the balance sheet.B. An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.C. Another name for the withdrawals account.D. An account used to record the transfers of assets from a business to its owner.E. A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.35. A general journal is:A. A ledger in which amounts are posted from a balance column account.B. Not required if T-accounts are used.C. A complete record of any transaction and the place from which transaction amounts are posted to the ledger accounts.D. Not necessary in electronic accounting systems.E. A book of final entry because financial statements are prepared from it.36. Which of the following statements is true?A. If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.B. The trial balance is a book of original entry.C. Another name for the trial balance is the chart of accounts.D. The trial balance is a list of all accounts from the ledger with their balances at a point in time.E. The trial balance is another name for the balance sheet as long as debits balance with credits.37. A trial balance taken at year-end showed total credits exceed total debits by $4,950. This discrepancy could have been caused by:A. An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.B. A net income of $4,950.C. The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.D. The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.E. An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.38. In which of the following situations would the trial balance not balance?A. A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.B. The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.C. A $50 cash receipt for the performance of a service was not recorded at all.D. The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.E. The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.39. Interim financial statements refer to financial reports:A. That cover less than one year, usually spanning one, three, or six-month periods.B. That are prepared before any adjustments have been recorded.C. That show the assets above the liabilities and the liabilities above the equity.D. Where revenues are reported on the income statement when cash is received and expenses are reported when cash is paid.E. Where the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues.40. The length of time covered by a set of periodic financial statements is referred to as the:A. Fiscal cycle.B. Natural business year.C. Accounting period.D. Business cycle.E. Operating cycle.41. Adjusting entries:A. Affect only income statement accounts.B. Affect only balance sheet accounts.C. Affect both income statement and balance sheet accounts.D. Affect only cash flow statement accounts.E. Affect only equity accounts.42. The main purpose of adjusting entries is to:A. Record external transactions and events.B. Record internal transactions and events.C. Recognize assets purchased during the period.D. Recognize debts paid during the period.E. Correct errors.43. Which of the following statements is incorrect?A. Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.C. Adjusting entries can be used to record both accrued expenses and accrued revenues.D. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.E. Adjusting entries affect the cash account.44. An adjusting entry could be made for each of the following except:A. Prepaid expenses.B. Depreciation.C. Owner withdrawals.D. Unearned revenues.E. Accrued revenues.45. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:A. Understate net income by $28,000.B. Overstate net income by $28,000.C. Have no effect on net income.D. Overstate assets by $28,000.E. Understate assets by $28,000.46. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:A. Assets overstated and equity understated.B. Assets and equity both understated.C. Assets overstated, net income understated, and equity overstated.D. Assets, net income, and equity understated.E. Assets, net income, and equity overstated.47. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:A. An overstatement of net income.B. An overstatement of assets.C. An overstatement of liabilities.D. An overstatement of equity.E. An understatement of liabilities.48. When closing entries are made:A. All ledger accounts are closed to start the new accounting period.B. All temporary accounts are closed but not the permanent accounts.C. All real accounts are closed but not the nominal accounts.D. All permanent accounts are closed but not the nominal accounts.E. All balance sheet accounts are closed.49. Which of the following statements is incorrect?A. Permanent accounts is another name for nominal accounts.B. Temporary accounts carry a zero balance at the beginning of each accounting period.C. The Income Summary account is a temporary account.D. Real accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence.E. The closing process applies only to temporary accounts.50. Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:A. Adjusting entries.B. Closing entries.C. Final entries.D. Work sheet entries.E. Updating entries.51. The recurring steps performed each reporting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the: A. Accounting period. B. Operating cycle. C. Accounting cycle. D. Closing cycle. E. Natural business year.52. Which of the following is the usual final step in the accounting cycle?A. Journalizing transactions.B. Preparing an adjusted trial balance.C. Preparing a post-closing trial balance.D. Preparing the financial statements.E. Preparing a work sheet.。

国际会计第七版英文版课后答案(第一章)

Chapter 1IntroductionDiscussion Questions1.In the domestic case, accounting is an information service that provides financialinformation about a domestic entity to domestic users of that information. Internationalaccounting is distinctive in that the entity being reported on is either a multinationalcompany with operations and transactions that transcend national boundaries or involves an entiiy with reporting obligations to readers who are located outside the reportingentity’s country of domicile.2.Advantage: Some might argue that measurement, disclosure, and external auditing arethree distinct (although related) processes, involving different members of the company.For example, corporate attorneys often are involved in disclosure issues, but seldomintervene in measurement issues. The Board of Directors works with the external auditors but not necessarily with the comptroller s office. Thus, discussion of accountingrequirements and voluntary accounting choices in different jurisdictions is simplified by focusing on the three components of accounting. Disadvantage: measurement, disclosure and auditing are interdependent, and should not be viewed in isolation of one another. A company choosing to disclose as little as possible, for example, may use accountingmeasurement approaches that reduce the information content of financial statements, and select an external auditor who will be relatively lenient in enforcing accountingrequirements. One alternative classification might include accounting (measurement and disclosure), and auditing. A second classification might include financial reporting(annual and interim reporting, regulatory filings) and ad hoc disclosure (press releases,analyst meetings, etc). Any classification is arbitrary, and potentially useful depending on its purpose.3.Factors contributing to the internationalization of the subject of accounting include: thegrowth and spread of multinational operations around the world, the phenomenon ofglobal competition, the increasing number of cross-border mergers and acquisitions thatoccur almost daily, continued advances in information technology, and theinternationalization of the world’s capital markets.4.International trade involves importing and exporting activities. The major accountingissue associated with foreign trade involves accounting for foreign currency transactions.Foreign direct investment, on the other hand, involves conducting operations abroad.This activity exposes accountants to a new set of issues that run the gamut from having to consolidate foreign currency accounts based on diverse measurement rules to issues ofevaluating the performance of foreign subsidiary managers.5.Students will overwhelmingly argue in favor of harmonization. This is probably a goodstarting point for the course. After they are introduced to the chapters leading up toChapter 8, some may no longer feel that harmonization is necessarily the answer to all of their international accounting problems.6.Recent developments such as the growth and spread of multinational operations,Internationalization of the world’s capital markets, increased cross border mergers andacquisitions, the phenomenon of global competition and financial innovation haveincreased reader dependence on foreign financial statements. An understanding ofaccounting differences and their effect on reported measures of profitability, efficiency, solvency and liquidity are critical if proper decisions are to be made. Internationalaccounting issues have become more complex in recent years for several reasons.Financial transactions are becoming more complex, affecting both national andinternational accounting. For example, the use of complex financial instruments anddeveloping accounting standards for these exotic instruments has been problematic.Global financial markets also are becoming more volatile, leading to large changes in asset and balance sheet amounts (such as related to investments) and major sources of income and expense. The related accounting issues are difficult. The growinginternationalization of business also promotes complexity. Foreign currency transactions and translation have been troublesome accounting issues for years, and are becoming more important as cross-border business and finance increase. Also, differences innational accounting principles potentially are more troublesome as business becomes more international. However, as convergence efforts worldwide accelerate, and more and more companies and countries adopt International Financial Reporting Standards (IFRS), complexity arising from differences in national accounting principles will decrease.7.Examples of external reporting issues include:a. Does translation from one set of measurement rules to another change theinformation content of the original message?b. Should accounts of foreign operations be translated to parent currency whenconsolidated statements are prepared?c. Which exchange rates should be employed when translating from one currency toanother?Examples of internal reporting issues include:a. Which exchange rates should be used for budgeting purposes?b. Should foreign managers be evaluated in terms of parent currency or the localcurrency of the country in which the manager operates?c. Which prices should one use when transferring goods or services betweenmembers of the multinational enterprise- cost, market, cost-plus or some othermetric?8.Global capital market activities and transactions reach beyond single political or legaljurisdictions. For example, global capital market transactions include the following: (1) an American tourist buying Australian dollars for travel purposes in the South Pacific; (2)a Japanese insurance company buying German government bonds as an investment; and(3) a Nigerian agricultural development project receiving cash subsidies from theEuropean Union (EU).The international equities market is one global capital market. A second such market covers foreign exchange transactions, that is, when one national currency is exchanged into, traded forward, hedged, swapped, or otherwise converted to another nationalcurrency. This market is estimated at hundreds of billions of U.S. dollars per day. The total world foreign exchange market is the largest market on earth. The international bond market is still another global capital market. The bonds constituting this market areunderwritten by international syndicates of banks and are marketed and traded all over the world. Global capital markets are a vital part of the world economy.9.English should be designated as the formal international accounting language. Technicalaccounting terms ( terms of art) do not travel well internationally. Since technicalaccounting terms often have attributed meanings (for example, generally acceptedaccounting principles are neither generally accepted nor principles ), it is difficult orimpossible to translate these terms into other languages and retain their original meanings.In other disciplines, such considerations have caused the establishment of Latin as the universal language for botanical classifications, Italian as the language for specifying the tempo (and other matters of interpretation) of musical compositions, and English as the language of electronic computing. Since accounting is used worldwide, a singleworldwide language for accounting makes sense.Why should English be the worldwide language for accounting? English already hasbecome the language of world commerce and multinational business. Thus, the universal use of English in accounting would parallel a well-established business practice. Also, the accounting discipline was in many respects developed as an offshoot of Anglo-American economics, which means that the language roots of many accounting terms and concepts are English. Among non-English speaking people, English is the mostcommon second language. The vast majority of the world’s accounting literature iswritten in English, and nearly all international accounting conventions and conferences use English as the official language. Multinational corporations generally use English in their accounting and financial operating manuals, as well as for corporatecommunications, without regard to national domiciles. Therefore, the worldwide benefits of adopting English as the universal language of accounting are likely to be greater than for any other language, and the worldwide costs are likely to be less.10.Emerging markets are those whose financial systems are emerging from state dominationthrough a process of liberalization. Developed countries are those with liberalizedfinancial systems. Many people believe that liberalization is highly beneficial to sustained economic growth. Many different classifications of developed versus emerging market countries are used, and often the terms are not defined, although no one correct set of definitions for developed and emerging markets exists.Students should be encouraged to suggest their own criteria as to what constitutes adeveloped as opposed to an emerging market. The emerging market countries are in geographic regions that are generally not highly industrialized. But one cannot generalize here as extensive economic liberalization is taking place in these countries (in some more than in others). For example, entry barriers to foreign businesses, government regulation of banking operations, and credit controls have been eased in many of the countries once classified as “emerging.”11.Privatizations of state-owned corporations have had dramatic effects on global capitalmarkets. Often, the privatized entities are large, well-known companies in which thenational government retains a large ownership interest, and retail (individual, non-institutional) investors often are encouraged to buy shares in newly privatized entities. Asa result, the shareholder base in the market grows dramatically, investors become moreactive market participants, and market capitalization increases.Privatizations also mean that management must now compete in the market place formarket share, external capital and corporate control. In such a world, accounting systems must properly motivate managers to work toward the accomplishment of theorganization’s overall goals in an efficient manner while putting together credibleexternal financial statements that will enable it to secure the necessary capital to financecorporate growth. Many of these external and internal reporting issues are covered in the balance of the chapters in this book.12.Those opposed to outsourcing see it as a threat to domestic jobs and a form ofexploitation by companies engaged in the practice. Some even see it as a moral issue.However, they miss the point of international trade. While outsourcing may reduce jobs in one sector, they reflect differences in comparative advantage, which ultimately makes possible greater employment in other sectors and or lower consumer prices whichincreases real wealth. One need only look at higher education in America. Whereasstenographers in the U.S. may be losing jobs to stenographers in India, more and moreIndian families are sending their children to the U.S. for their higher education,increasing the demand for support services in the higher education sector.A look at Exhibit 1.2 shows that over time, countries with greater exports than importseventually become net importers and vice versa. The importance of internationalaccounting will not diminish. Countries have been trading with each other since antiquity and will continue to do. Even if the volume of trade were to diminish, an unlikely event, the network of trading partners continues to expand globally and with it accounting issues associated with international trade.Exercises1.For steps one and two in which the idea for the Proliant ML150 is spawned in Singaporeand approved in Texas, differences in legal practices regarding rights and compensationschemes for intellectual property development may vary between the U.S. and Singapore as the latter’s legal system has been influenced by the U.K. system. Internat ional taxissues also surface in terms of royalty payment arrangements and their tax consequences in both Singapore and the U.S.For step 4, language communications between Singapore and Taiwan could pose someissues of interpretation. Production in Taiwan raises internal reporting issues such asshould exchange rate fluctuations between the Taiwanese dollar and the U.S. dollar beincorporated into the cost of production or accounted for separately as a non-operatingforeign exchange gain or loss. In evaluating the creditworthiness of the Taiwanesemanufacturer, should the financial statements of the Taiwanese manufacturer betranslated to U.S. GAAP or not. If a ratio analysis is performed, should Taiwaneseliquidity and solvency ratios be interpreted based on U.S. financial norms or Taiwanesenorms?For step 5, should clients in Southeast Asian countries be charged identical prices orshould prices be flexed for differences in exchange rates, transportation arrangements and “facilitating” payments. What legal issues are raised in the case of bribes expected on the part of commercial buyers and how would these payments be treated under the U.S.Foreign Corrupt Practices Act?2. A suggested index might look like the following. The instructor should focus on thestudent’s rationale for his or her rating as some students may have more knowledge ofspecific country developments than others and students will naturally exhibit differentdegrees of risk-aversion.Industrialized CountriesUnited States 1Canada 1Japan 1United Kingdom 1France 1Germany 1Italy 1Australia 2New Zealand 2East AsiaHong Kong 1Indonesia 3South Korea 2Malaysia 2Phillipines 1Singapore 1Taiwan 3Thailand 2Latin AmericaArgentina 2Brazil 2Chile 2Colombia 2Mexico 1Peru 1Venezuela 2Middle East and AfricaEgypt 3Israel 2Morocco 2South Africa 1Turkey 2South AsiaBangladesh 2India 2Nepal 3Pakistan 3Sri Lanka 33.The compounded annual growth rate for merchandise exports from 1985 to 2005 wasapproximately 8.7%. The growth rate for merchandise imports was also 8.7% . The comparable growth rates for exports of services was 9.6% over the same 20 year period.It was 9.2% for imports. The outlook for accounting services to travel internationally are very good. Students interested in accounting careers should take note.4.The purpose of this exercise to get students to check out the wealth of stock relatedinformation available on the web. They will probably choose the five whose countriesare most familiar to them. Their exchanges will probably be located in highlyindustrialized economies and which afford access to relatively deep pools of capital. As one example, Luxembourg has long been popular because of its accommodating listingrequirements. However, students should note that the numbers of foreign companieslisted in markets other than the NYSE have been declining. This suggests that manyissuers question the benefits of such listings, and that the benefits of a foreign listinggenerally are greater in the United States. In particular, the U.S. represents a well-established market with strong investor protection. This is especially important in adown economy, as stringent disclosure requirements help to minimize perceivedinformation risk which, in turn, reduces price volatility.5.This exercise will require that students combine certain geographic categories ofmerchandise exports to achieve some comparability with Henekin’s disclosures. It would be interesting to poll students’ ex ante predictions of the correlations and have themponder reasons for any differences they find.Geographic Region Merchandise Exports Geographic Sales for HeinekenAfrica and Middle East 7.9% 12.6%Asia 29.2% 9.1%Europe 41% 65.5%Americas 17.6% 12.7%While correlations between percentage geographic distributions of merchandise exportsand beer sales are closer for Africa and the Middle East and for the Americas, there arebig differences in beer sales and merchandise export patterns for Asia and Europe.Obviously one cannot generalize microeconomic behavior from macroeconomic data.However, some students will be inclined to hypothesize similar patterns given thepopularity of beer consumption around the world. It will be fun brainstorming reasonsfor the observed differences. Might observed differences be due to national differencesin consumer tastes, import restrictions and perhaps the success of national advertisingcampaigns? More important, this exercise should reinforce the notion of environmentaldifferences as explanatory variables.6.The geographic spread of Heineken’s revenue streams suggest that the co mpany isexposed to foreign exchange rate risk. This complicates the process of forecasting thecompany’s future earnings and resultant cash flows. Moreover, the numbers beingreported are the results of a consolidation process. The cardinal rule to remember here is that when exchange rates change, data in parent currency may change even though local currency amounts may not. For managerial accountants, the conduct of foreignoperations raises numerous issues of financial control. For example, which currencyshould be used to evaluate foreign subsidiary performance, the parent currency or thelocal currency? In preparing operating budgets, which exchange rate combination should be used to translate original budgets and subsequently track performance? Whenplanning capital expenditures, how do you factor inflation, foreign exchange rate risk and sovereign risk into measures of future project cash flows, cost of capital estimates andplanned investment outlays? Should capital budgeting decisions be made from theproject’s perspective or a company perspective? Again, this exercise is designed to raise questions that will be addressed in subsequent chapters.7.Issues triggered by Exhibit 1-5 include :a. What criteria are used to determine when a foreign affiliate is to be consolidatedwith that of the parent company? While majority ownership is one criterion forconsolidation, do other criteria exist internationally and why?b. When consolidating the accounts of a foreign affiliate with that of the parentshould accountants first restate the accounting measurement rules of the foreignaffiliate to the reporting requirements of the parent company or should thereporting requirements of the affiliate’s country of domicile prevail? Whichmethod produces the more meaningful information for statement readers?c. When consolidating the accounts of a foreign affiliate should the accountanttranslate the currency of the affiliate to the reporting currency of the parentcompany? If so, which exchange rates should be employed for each balancesheet account? For each income statement account?d. If fluctuating exchange rates produce foreign currency gains and losses duringthe consolidation process, how should these gains and losses be accounted for?8.The ROE ratios for Electrolux based on IFRS and U.S. GAAP was derived as follows:IFRS U.S. GAAPROE 1,763/25,888 + 23,636 1,518/25,057 + 23,5672 2= 1,763/24,762 =1,518/24,3129.For this exercise, we consider information provided by three stock exchanges: TheLondon Stock Exchange, the Deutsche Boerse and the Tokyo Stock Exchange. TheLondon Stock Exchange Web site () provides highly useful information. However, under the U.K. regulatory structure, the Financial Services Authority, not the LSE, is responsible for the admission of securities to official listing and continuing obligations of listed companies.The Deutsche Boerse ()has a 117-page document covering insider trading and required ad hoc disclosure, but nothing in any detail concerning periodic financial disclosures. There is a bar chart that claimed to show the relative transparency of the various Deutsche Boerse exchanges. Without even the most basic frame ofreference, it s hard to describe such a chart as anything but opaque.It might be well to advise students not to investigate financial disclosure requirements for the Tokyo Stock Exchange (www.tse.or.jp). The TSE does not have independentfinancial disclosure requirements. Rather, companies must conform with therequirements of Japan’s Securities and Exchange Law and regulations. The TSE provides this brief summary: Under the Securities and Exchange Law, the registrants are required to file annual and semi-annual reports with the Ministry of Finance, with copies to the stock exchanges where the securities are listed. The financial statements to be included in security registration statements and annual reports must comply with a wide range of formats and contents relating to disclosures prescribed in the regulations. The regulations require both the consolidated financial statements and non-consolidated financialstatements of the registrant. The financial statements prepared under the Securities and Exchange Law and relevant regulations are in major areas equivalent to those prevailing internationally.This summary obviously raises many more questions than it answers. The TSE alsoprovides a flow chart showing which documents are required to be filed, and their filing deadlines, but nothing concerning the required contents of these documents.For an illustrative example, consider the Deutsche Boerse and the London StockExchange. Note that Web sites change continuously. Therefore, the responses shown below are indicative only.Ratings (obviously) will be subjective. Students should be evaluated on the thoroughness and thoughtfulness of their evaluations10.If we divide the total foreign company listings for each region by the total listings for thatregion as one measure of foreign listings, we would obtain the following results: The Americas: 1,174/3,758 = 31.2%Asia-Pacific: 274/2,375 = 11.53%Europe-Africa-Middle-East 1,188/10,383 = 11.4%Student answers to the second part of the question will vary depending on which region of the world they expect to experience the most rapid growth in the years ahead.11.In addition to eliciting a variety of investment strategies, this question should drive homethe connection between accounting information and international investing. Theaccounting issues that will influence country investment allocations will be the extent oftransparency of a company’s accounts, the degree to which its accounting standards areoriented toward investor decisions and the quality of the audit functions in each country. Case 1-1E-Centives, Inc.e-centives, Inc. — Raising Capital in Switzerland1. Possible factors (from Exhibit 1.7) relevant in e-centives decision to raise capital and list on the Swiss Exchange s New Market:•Ease of raising capital (point 3). The Swiss Exchange s New Market has simple listing requirements designed to appeal to small companies. The contrast with the complex,detailed listing and reporting requirements in the United States is striking.•Availability of capital (point 4). Switzerland has a large, well-developed capital market.•Reputation of the exchange (point 5). The Swiss Exchange is well known for providing a high quality, efficient trading environment.•Corporate profile and brand identity (point 6). A listing on the New Market would dovetail with the company s possible expansion into Switzerland by giving it a higherprofile in the Swiss market. While e-centives is interested in expanding into Switzerland, it also is considering Germany and the United Kingdom, which have much largerconsumer markets. Therefore, this is not an overwhelming point in Switzerland s favor.•Regulatory environment (point 7). It is highly likely that e-centives chose Switzerland because its regulatory environment is unlike that of the United States.•Availability of investors (point 9). e-centives might be interested in possible investment from large Swiss pension funds, but it s not likely that such funds would invest in aspeculative, start-up enterprise.2. a. Possible reasons why e-centives chose not to raise public equity in the United States:•One possible reason would be to avoid the complex and expensive process of registering securities with the U.S. Securities and Exchange Commission and keeping up with theCommission’s periodic reporting requirements.•e-centives probably would not satisfy the listing requirements of a U.S. stock exchange (such as Nasdaq or a regional stock exchange).•Management might think that raising money in Switzerland rather than the U.S. might give them an appearance of quality, cleverness, and exclusivity that would not bepossible with a U.S. listing. (Your authors believe that such reasoning is far-fetched, but it s not unknown.)b. Possible drawbacks to not raising capital in the U.S. public markets.•Lack of access to the largest pool of investment capital in the world.•Lack of following by U.S. investment analysts, and lack of access to individual U.S.investors.•Trading volume on the Swiss Exchange New Market is much smaller than on the U.S.exchanges.•Listing in Switzerland does little to establish the reputation or raise the profile of e-centives in the United States.•The degree to which (mostly European) investors in the New Market would be interested in a struggling U.S. start-up certainly can be questioned.3. Advantages and disadvantages to e-centives of using U.S. GAAP.Advantages: U.S. accounting standards are highly credible and well known, which is important to a new company seeking investment capital, and would be much more familiar to the company’s management, outside auditors, and investors domiciled in the U.S. than any other set of standards. Use of U.S. GAAP would eliminate some suspicions of the company trying to put something over on investors by using some other set of GAAP, and U.S. GAAP is accepted explicitly by the Swiss Exchange.Disadvantages: U.S. accounting standards are not particularly well known to investors participating on the Swiss Exchange, who would be expected to know Swiss GAAP, GAAP of other major European markets, and possibly IAS (International Accounting Standards). Compliance with U.S. GAAP is more complex and expensive than compliance with other standards (such as IAS), and the company might see some cost savings by avoiding U.S. GAAP if it isn’t required to use them.4. Should the Swiss Exchange require e-centives to prepare its financial statements using Swiss accounting standards?This is a debatable point. One would expect that investors on the Swiss Exchange would be more familiar with Swiss accounting standards than with any other, and that requiring Swiss accounting standards would make financial disclosures more easily understood toth em than any others. This wouldn’t be true, however, for non-Swiss investors participating on the exchange, and ignores the fact that IAS increasingly are becoming a common language for financial accounting disclosures. Accepting IAS almost certainly would increase the pool of investors that would be able readily to understand disclosures by listed companies, and this would give the exchange a powerful reason to accept IAS in addition to (if not instead of) Swiss accounting standards.5. What are listing and financial reporting requirements of the Swiss Exchange s New Market? Does e-centives appear to fit the profile of the typical New Market company?From the case: The New Market is designed to meet the financing needs of rapidly growing companies Listing requirements are simple. For example, companies must have an operating track record of 12 months [note: not necessarily a profitable operating track record], [and] the initial public listing must involve a capital increase. All of these conditions apply well to e-centives, and on that basis the company does appear to fit the profile of the typical New Market company. The uniqueness of e-centives is in its decision to skip the U.S. capital markets.Case 1-2Infosys Technologies LimitedThis case is designed to get students into reading non-domestic financial statements. Many students will be surprised at the information content of Infosys’ financial statements as the company does not fit the typical stereotype of sub-par financial reporting in emerging markets. Indeed the company illustrates how competitive the world of business has become and the success that accrues to firms that base their futures on innovative thinking and adaptability. Students unused to seeing the report form of balance sheet will find it at odds with the classified balance sheet format that they were taught in class. Other things they will note include but are not limited to: use of a fiscal as opposed to a calendar year, the fact that the financial statements。

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会计学原理英文版一单元习题解读