会计学原理英文版题库
会计学原理英文版一单元习题解读
会计学原理英文版一单元习题解读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 andarise 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 anorganization.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 monthor 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 ata point in time.79. The statement of cash flows identifies cash flows separated into operating, investing, and financing activities overa 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 systemthat 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 UnitedStates 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 LegalServices 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.143. If assets are $365,000 and equity is $120,000, then liabilities are:。
会计学原理英文版一单元习题
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.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.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 adopteda 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 interpretfinancial 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.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.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.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.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.Liabilities are the owner's claim on assets.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.An external transaction is an exchange of value within an organization.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.’s net income of $117 million and average assets of $1,400 mil lion results in a return on assets of %. 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.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.The balance sheet is based on the accounting equation.Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.The income statement reports on operating activities at a point in time.The statement of cash flows identifies cash flows separated into operating, investing, and financing activities over a period of time.Ending capit al 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.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.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.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.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, isassessed 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 or cash-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 $500,000A. 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 receivedA. 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 ServicesA. 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 costA. 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 reportedA. 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 sellerA. 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 equationA. 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 ownersA. $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 yearA. $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 equationA. 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 completedA. +$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 equationA. 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 assetsA. 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 equityA. 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.143. If assets are $365,000 and equity is $120,000, then liabilities are:A. $120,000.B. $245,000.C. $365,000.D. $485,000.E. $610,000.144. Reston had income of $150 million and average invested assets of $1,800 million. Its return on assets is:A. %.B. %.C. 12%.D. 120%.E. %145. Nick’s had income of $350 million and average invested assets of $2,000 million. Its ROA is:A. %.B. 35%.C. %.D. %.E. %.146. FastLane has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.A. %.B. %.。
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 statementsto help 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 receivedin cash.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 incurred duringa specified period of time.19)Chuck Taylor withdrew $6,000 in cash from FastForward. This amount should be included as an expenseon 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 affectone or more other accounts.29)Adjusting entries are used to bring asset or liability accounts to their proper amount and updatethe related 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 accountis out of 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. The amountwas 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 the revenueand 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 total contractis 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 a creditbalance.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 legalservices 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 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 $52,000B.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 theloan 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: income.B.Expense.C.Equity.D.Revenue. 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 andto 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 eventsof 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.（注：可编辑下载，若有不当之处，请指正，谢谢!）。
会计学原理23版 英文练习WildFAP23eCh01EPPT
a. At the beginning of the year, Addison Company’s assets are $600,000 and its equity is $150,000. During the year, assets increase $90,000 and liabilities increase $40,000. What is the equity at the end of the year?
Assets
= Liabilities +
Equity
a.
$65,000 =
$20,000 +
$45,000
b.
100,000 =
34,000 +
66,000
c.
154,000 =
114,000 +
40,000
Exercise 1-8 page 34
Determine the missing amount from each of the separate situations given below.
Net al Assets
=
÷
$250,000
=
Return on Assets 16.0%
Average Total Assets $200,000 + $300,000 = $250,000
2
Return on assets is useful in evaluating management, analyzing and forecasting profits, and planning activities. Return on assets (ROA), also called return on investment (ROI ).
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会计学原理英文版题库
Accounting Principles
1. Define accounting and describe its role within an organization.
2. List and explain the basic principles of accounting.
3. Explain the principles of accrual accounting and cash accounting. What are their differences?
4. Define and differentiate between assets, liabilities, and equity.
5. Describe the accounting equation and its significance in financial statements.
6. Explain the concept of double-entry bookkeeping and provide examples.
8. Explain the concept of revenue recognition and provide examples.
9. Discuss the concept of matching expenses with revenues and its significance.
10. Describe the different types of financial statements and their purposes.
13. Describe the purpose and significance of the statement of cash flows.
14. Explain the concept of financial ratios and their importance in analyzing financial statements.
15. Discuss the ethical considerations in accounting and the role of accountants in ensuring financial integrity.
16. Explain the concept of depreciation and its impact on financial statements.
17. Discuss the principles of cost accounting and its role in decision making.
18. Describe the process of budgeting and its significance in financial planning.
19. Explain the concept of internal control and its importance in preventing fraud.
20. Discuss the role of accounting information systems in managing financial data.
Accounting Principles (1200+ words)
Accounting is the process of recording, organizing, and reporting financial information of an organization. It is an essential function in all types of businesses and plays a
crucial role in decision making, financial planning, and resource allocation. The principles of accounting provide a set of guidelines and standards that ensure accurate and consistent recording of financial transactions.
Accrual accounting and cash accounting are two different methods used in recording financial transactions. Accrual accounting recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid. Cash accounting, on the other hand, recognizes revenues and expenses only when cash is received or paid. The main difference between the two methods is the timing of revenue and expense recognition.
The accounting equation, assets = liabilities + equity, is a fundamental concept in accounting. It shows the relationship between the resources owned by the organization and the claims against those resources. It is important because it ensures that the financial statements are balanced and provides a snapshot of the organization's financial position.
The statement of cash flows shows the cash inflows and outflows of an organization during a specific period. It provides information about the organization's cash flow from operating, investing, and financing activities and helps in assessing its liquidity and cash management.
Financial ratios are calculations used to analyze and interpret financial statements. They provide insights into the organization's financial performance, liquidity, solvency, and profitability. Examples of financial ratios include the current ratio, debt-to-equity ratio, return on equity, and gross profit
margin. These ratios are used by investors, creditors, and other stakeholders to assess the organization's financial health and make informed decisions.
Cost accounting is a branch of accounting that focuses on determining the cost of producing goods or services. It involves analyzing the costs of materials, labor, and overhead and provides information for decision making, pricing, and budgeting. Cost accounting plays a vital role in ensuring cost control, profitability analysis, and performance evaluation.
Accounting information systems are the tools and
technologies used to collect, process, store, and report
financial information. They include software, hardware, networks, and databases that facilitate efficient and accurate recording and reporting of financial transactions. Accounting information systems play a crucial role in managing financial data,
improving efficiency, and ensuring the integrity and security of financial information.。