会计英语练习题

Chapter1 1. The Mill Run Golf & Country Club details the following accounts in its financial statements.

(a) (b) Accounts payable and accrued liabilities ____ ____ Accounts receivable ____ ____ Property, plant, and equipment ____ ____ Food and beverage operations revenue ____ ____ Golf course operations revenue ____ ____ Inventory ____ ____ Long-term debt ____ ____ Office and general expense ____ ____ Professional fees expense ____ ____ Wages and benefits expense ____ ____

Instructions. (a) Classify each of the above accounts as an asset (A) , liability(L), stockholders’ equity (SE), revenue (R), or expense (E) item. (b) Classify each of the above accounts as a financing activity (F), investing activity (I), or operating activity (O). If you believe a particular account doesn’t fit in any of these activities, explain why.

2. The following information was taken from the 2004 financial statements of pharmaceutical giant Merck and Co. All dollar amounts are in millions.

Retained earnings, January 1, 2004 $34,142.0 Materials and production expense 4,959.8 Marketing and administrative expense 7,346.3 Dividends 3,329.1 Sales revenue 22,938.6 Research and development expense 4,010.2 Tax expense 2.161.1 Other revenue 1,352.2

Instructions. (a) After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31,2004. (b) Suppose that Merck decided to reduce its research and development expense by 50%. What would be the short-term implications? What would be the long-term implications? How do you think the stock market would react?

3. Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. The following items were taken from its 2004 income statement and balance sheet. All dollars are in millions. _____Retained earnings $2,701.3 _____ Long-term debt $3,892.6 _____Cost of goods sold 5,298.7 _____ Inventories 681.0 _____Selling and administrative expense 2,634.1 _____ Net sales 9,613.9 _____Cash 417.4 _____ Accounts payable 767.2 _____Notes payable 709.7 _____Common stock 103.8 _____Interest expense 308.6 _____ Income tax expense 475.3 _____ Other expense 6.6

Instructions. Perform each of the following. (a) In each case identify whether the item is an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E). (b) Prepare an income statement for Kellogg Company for the year ended December 31, 2004.

4. The following items were taken from the balance sheet of Nike, Inc. (1)Cash $828.0 (7) Inventories $1,633.6 (2)Accounts receivable 2,120.2 (8) Income taxes payable 118.2 (3)Common stock 890.6 (9) Property, plant, and equipment 1,586.9 (4)Notes payable 146.0 (10)Retained earnings 3,891.1 (5)Other assets 1,722.9 (11)Accounts payable 763.8 (6)Other liabilities 2,081.9

Instructions. Perform each of the following. (a) Classify each of these items as an asset, liability, or stockholders’ equity. (All dollars are in millions.) (b) Determine Nike’s accounting equation by calculating the value of total assets, total liabilities, and total stockholders’ equity. (c) To what extent dose Nike rely on debt versus equity financing?

Chapter 2. 1． These items are taken from the financial statements of Donovan Co. at December 31.2007 Building $105,800 Accounts receivable 12,600 Prepaid insurance 4,680 Cash 16,840 Equipment 82,400 Land 61,200 Insurance expense 780 Depreciation expense 5,300 Interest expense 2,600 Common stock 62,000 Retained earnings (January 1, 2007) 40,000 Accumulated depreciation-building 45,600 Accounts payable 9,500 Mortgage payable 93,600 Accumulated depreciation-equipment 18,720 Interest payable 3,600 Bowling revenues 19,180

Instructions. Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in 2008.

2. The following items were taken from the 2004 financial statements of Texas Instruments, Inc.(All dollars are in millions.)

Long-term debt $ 368 Cash $ 2,668 Common stock 2,488 Accumulated depreciation 5,655 Prepaid expense 326 Accounts payable 1,444 Property, plant, and equipment 9,573 Other noncurrent assets 1,927 Other current assets 554 Other noncurrent liabilities 943 Other current liabilities 470 Retained earnings 10,575 Long-term investments 264 Accounts receivable 1,696 Short-term investments 3,690 Inventories 1,256 Loans payable in 2005 11