会计专业英语复习资料

1. Things of value owned by an entity: assets Money: cash Claims of creditors: liabilities Claims of investors: equity2. 2 types of sources of funds： Stronger claim: liabilities Lesser claim: equity3. A balance sheet reports the status of an entity ....at a point of time. 4. Give the fundamental accounting equation: Assets = Liabilities + Equity5. The above equation is consistent with what concept?: Dual-aspectconcept6. Money-measurement concept states that accounting reports only factsthat can be expressed in monetary amounts.

7. A balance sheet does not report all the facts about a business. Whatconcept limits the amount or type of information that can be reported?Money-measurement concept8. Brown Company has 10000 dollar cash. Its owner withdraws 100 dollarsfor his own use. The owner is (no better or worse off) than he was before.Brown company now has (less) cash. The fact that this event affects theowner differently than it affects the company is an illustration of the entityconcept.

9. The entity concept states that accounts are kept for entities asdistinguished from the persons who own those entities.

11. The going-concern concept is: Accounting assumes that an entity willcontinue to operate indefinitely.

12. The asset-measurement concept is: if reliable information is available,accounting focuses on the fair value of assets. Nonmonetary assets arereported at their original cost.

13. An item can be reported as an asset if it passes 3 of the following: item isvaluable, item was acquired at a measurable cost, item is owned orcontrolled by the entity.

14. Goodwill is a favorable name or reputation purchased by the entity.

15. An asset is classified as current if it is cash or is expected to be convertedinto cash in the near future, usually within one year.

16. A liability is classified as current if it becomes due in the near future,usually within one year.

17. Marketable securities are current assets. Investments are noncurrentassets.

19. An insurance policy paid in advance of the time period covered is anexample of a prepaid expense.

20. A building, an item of equipment, and an automobile may all beexamples of plant and property.

21.Parker Company operates a furniture store. On December 31,2005,it had30 desks that it was holding for sale. These would be reported as inventory.The desk that is used by the president of Parker Company would bereported as plant and property.

22.Fox Company sold $1,000 of goods on credit to Golden Company. Thiswould be recorded as an account receivable of Fox Company and as anaccount payable of Golden Company.

23. Indicate whether the following statements about the balance sheet of acorporation are true or false:

a. Assets list all the valuable things owned by the entity----F

b. The amount reported for the paid-in capital item is approximately thefair value of the stock-----F

c. The amount reported for total equity is approximately the fair value ofthe corporation’s stock---F

d. Total equities (also called “net worth”) show approximately what theentity is worth.----F

e. Retained earnings is the amount of cash retained in the entity.-----F

Post test 2 资产负债表的变更：收入的核算

1.On January 2, John Brown started the Brown Company. In January, BrownCompany did the following things:

a. It received $5,000 cash from John Brown as its capital.b. It borrowed $10,000 from a bank, giving a note therefor.c. It purchased $4,000 of inventory for cash.

d. It sold $2,000 of its inventory for $6,000 to a customer, who paid$3,500 cash and agreed to pay $2,500 within 30 days.

e. It purchased an auto for $7,000. It paid $2,000 down and gave a noteto the automobile dealer for the remaining $5,000f. Brown withdrew $1,000 cash for his personal use.

g. Brown was offered $10,000 for his equity in the business, but herefused the offer.

On a separate piece of paper, prepare a rough draft of a balance sheetfor Brown Company as of the close to business January 31, and an incomestatement for January. Brown Company

Balance Sheet as of Jan 31 AssetsCash……………………………………$11,500 Accounts Receivable…………………2,500 Inventory………………………………….2,000 Automobile………………………………7,000Total………………………………………$23,000 Liabilities and EquityNotes Payable………………………$15,000Paid-in Capital…………………………5,000Retained Earnings……………………3,000Total……………………………………$23,000 Brown Company

Income Statement for JanuaryRevenue...........................$6,000Expense ...........................$2,000Income ............................$4,0002.Brown Company's income was $4,000, but its Retained Earnings was only$3,000. Reread the first frame and choose the item (a-g) that explains thedifference. f3.John Brown claims that the inventory as of January 31 is worth $6,000, asshown by the fact that inventory costing $2,000 was actually sold for $6,000.Would you change the balance sheet ?...(No). This is an illustration of theasset-measurement concept. Nonmonetary assets are reported at their costrather than their worth or fair value.Post test 3 会计记录和系统

1. On March 5, Kay Company purchased $6,000 of inventory, paying cash.

Prepare a journal entry for this transaction below. Journal

2001 Transactions Dr. Cr.March 5 Inventory 6,000 Cash 6,0002. On March 10, Kay Company made a $15,000 sale to a customer who paid$6,000 cash and agreed to pay to the other $9,000 in 30 days. Themerchandise sold had cost $8,000. Prepare a journal entry for the sale,below.

Journal

2001 Transactions Dr. Cr.March 10 Cash 6,000 Accounts Receivable 9,000 Revenues 15,0003. On March 10, Kay Company made a sale for $15,000 for merchandise thathad cost $8,000. Prepare a journal entry to record the cost of the salebelow.

Journal

2001 Transactions Dr. Cr.March 10 Expenses 8,000 Inventory 8,0004. Recall from the previous frames that revenues from the sale on March 10were $15,000 and that the merchandise sold had cost $8,000. Prepare theclosing entries. Journal

2005 Transactions Dr. Cr.March 31 Revenues 15,000 Retained earnings 15,000March 31 Retained earnings 8,000 Expenses 8,0005-10. Omit

11. A critic said that the company had $25,000 cash at the beginning of

March and $25,000 at the end of March, and since its cash balance wasunchanged, it couldn't be said to have any income in March. Thiscriticism is (incorrect).

12. The reason the criticism is incorrect is because income is an increase in

retained earnings, not necessarily in cash. For example, the salesrevenue of Kay Company in March was $15,000 and its income was$7,000 even though $9,000 was received in cash.

Post test 4 营业收入和货币资产

1. The conservation concept states that increases in equity are recognizedonly when they are reasonably certain, while decreases in equity arerecognized as soon as they are reasonably possible.

2. The materiality concept states: disregard trivial matters but disclose allimportant matters.

3. What is the length of the usual accounting period? One year. Financialstatements prepared for shorter periods are called interim statements.

4. Cash accounting reports items that increase or decrease cash. Accrualaccounting reports items that change equity or retained earnings, eventhough these changes may not affect cash.

5. Increases in equity associated with the entity’s operations during a period

are revenues, and decreases are expenses. The difference between them islabeled income.

6. The realization concept states that revenues are recognized when goodsor services are delivered.

7. H Company manufactures a table in August and places it in its retail storein September. R Smith, a customer, agrees to buy the table in October, it isdelivered to him in November, and he pays the bill in December. In whatmonth is the revenue is recognized? (November)

8. The receipt of cash is a debit to Cash. What is the offsetting credit and(type of account) for the following types of sales transactions? Account Credited

a. Cash received prior to delivery. Advances from customers (a liability) b. Cash received in same period as delivery. Revenue c. Cash received after the period of delivery. Accounts receivable (an asset)9. Similarly, revenue is a credit entry. What is the offsetting debit whenrevenue is recognized in each of these periods? Account Debited

a. Revenue recognized prior to receipt of cash. Accounts receivable b. Revenue recognized in same period as receipt of cash. Cash c. Revenue recognized in the period following receipt of cash. Advancesfrom customers10. In February, H Company agrees to sell a table to a customer for $600,

and the customer makes a down payment of $100 at that time. Thecost of the table is $400. The table is delivered to the customer inMarch, and the customer pays the remaining $500 in April. Give thejournal entries (if any) that would be made in February, March, andApril for both the revenue and expense aspects of this transaction.February: Cash 100 Advances from customers 100March:

Accounts receivable 500 Advances from customers 100 Revenue 600March:

Expenses 400 Inventory 400April:

Cash 500 Accounts receivable 50011. At the end of 2005, M Company had accounts receivable of $200,000,

and it estimated that $2,000 of this amount was a bad debt. Its revenuein 2005, with no allowance for the bad debts, was $600,000.

A. What account should be debited for the $2,000 bad debt? Revenue B. What account should be credited? Allowance for doubtful accounts C. What amount would be reported as net accounts receivable on the balance sheet? $198,000 D. What amount would be reported as revenue on the 2005 income statement? $598,00012. In 2006, the $2,000 of bad debt was written off.

A. What account should be debited for this written off? Allowance fordoubtful accounts B. What account should be credited? Accounts receivable

Post test 5 费用的核算；损益表

1. An expenditure occurs in the period in which goods or services areacquired. An expense occurs in the period in which goods or services areconsumed.

2. A certain asset was acquired in May. There was therefore an expenditurein May. At the end of May, the item was either on hand, or it was not. If itwas on hand, it was an asset; If it was not on hand, it was an expense inMay.

3. Productive assets are unexpired costs. Expenses are expired costs.

4. The matching concept states that costs associated with the revenues of aperiod are expenses of that period.5. Expenses of a period consist of:

a. costs of the goods and services delivered during that period. b. other expenditures that benefit operations of the period. c. losses6. If Brown company pays rent prior to the period that the rent covers, theamount is initially reported as credit to cash and a debit to Prepaid Rent,which is an asset account. If Brown Company pays the rent after the periodcovered, the amount is initially recorded as a debit to Rent Expense and acredit to Accrued Rent, which is a liability account.

7. A brand new machine owned by Fay Company was destroyed by fire in2005. It was uninsured. It has been purchased for $10,000 with theexpectation that it would be useful for 5 years. The expense recorded in2005 should be $10,000.

8. Gross margin is the difference between sales revenue and cost of sales.9. gross margin percentage: (gross margin)/(sales revenue)

10. The difference between revenues and expenses in an accounting period(or the amount by which equity [i.e., retained earnings] increased fromoperating activities during the period) is called net income.

11. A distribution of earnings to shareholders is called dividends(股利).

12. retained earnings at the end of the period = retained earnings at thebeginning of the period + net income – dividends.

Post test 6 存货和销售成本

1. A dealer sells a television set for $800 cash. It had cost $600. Write journalentries for the four accounts affected by this transaction. Dr. Cash 800Cr. Revenue 800 Dr. Cost of Sales 600Cr. Inventory 6002. When using the perpetual inventory method (永续盘存), a record is keptfor each item, showing receipts, issues, and the amount on hand.

3. Write an equation that shows how the cost of sales is determined bydeduction:

Cost of sales = beginning inventory + purchases – ending inventory4. Omit

5. In periods of inflation, many companies use the LIFO method incalculating their taxable income because LIFO gives a higher cost ofsales and hence a lower taxable income.

6. A company discovers that the fair value of its inventory is $1000 lowerthan its cost. What journal entry should it take?

Dr. Cost of Sales 1,000Cr. Inventory 1,0007. In a manufacturing business, what three elements enter into the cost of amanufactured item?

Direct material, direct labor, and overhead.

8. Period costs become an expense during the period in which they wereincurred.

9. Product costs become an expense during the period in which the productswere sold.

10. One type of overhead rate involves use of the total direct labor costs andtotal production overhead costs for a period. Write a ratio that shows howthe overhead rate is calculated.

(Total production overhead costs)/(Total direct labor costs)

11. A given finished item requires $50 of direct materials and 5 hours of direct labor at $8 per hour. The overhead rate is $4 per direct labor hour. At what amount would the finished item be shown in inventory? $110 = 50 +40 + 2012. An inventory turnover of 5 is generally better than an inventory turnoverof 4 because it indicates that less capital is tied up in inventory, and there isless risk that the inventory will become obsolete.

Post test 7 非流动资产和折旧

1. The amount at which a new plant asset is recorded in the accountsincludes its purchase price plus all costs incurred to make the asset ready forits intended use (such as transportation and installation).

2. A plant asset is acquired in 2005. It is expected to be worn out at the endof 10 years and to become obsolete in five years. What is its service life? ---Five years.

3. Ordinarily, land is not depreciated because its service life is indefinitelylong.

4.A plant asset is acquired in 2005 at a cost of $20000. Its estimated servicelife is 10 years, and its estimated residual value is $2000 : a. The estimated depreciable cost of the asset is $18,000 b. If the straight-line depreciation method is used, the depreciation rate for this asset is 10 percent.

c. What amount will be recorded as depreciation expense in each year of the asset’s life?---$1,800 d. What amount will be debited and what account will be credited torecord this depreciation expense?Dr. Depreciation expense Cr. Accumulated depreciation e. After five years have elapsed, how would this asset be reported on thebalance sheet?

1) Plant------$20,000 2) Less accumulated depreciation-------$9,000 3) Book value-------$11,0005. A machine is purchase on January 2, 2005, for $20,000 and its has anexpected life of five years and no estimated residual value.

a. If the a machine is still in use six years later, what amount ofdepreciation expense will be reported in for the sixth year?----zero b. What amount, if any, will be reported on the balance sheet at the end ofthe sixth year?

1) It will not be reported.-----X 2) It will be reported as follows:Machine $20,000Accumulated depreciation $20,000 Book value $06. A machine is purchase on January 2, 2005, for $50,000. It has an expectedservice life for 10 years and no residual value. Eleven years later it is sold for$3,000 cash.

a. There will be a gain of $3,000 b. What account will be debited and what account credited to record this amount?Dr. Cash Cr. Gain on disposition of assets.

7. Given an example of each of the following types of assets, and give thename of the process used in writing off the cost of the second and thirdtype.

Asset type\\Example\\Write-off processPlant Asset\\machine, building\\DepreciationWasting asset\\coal, oil ,minerals\\DepletionIntangible asset\\goodwill, trademark \\Amortization8. Conoil Company purchased a producing oil property for $10,000,000 onJanuary 2, 2005. It estimated that the property contained one million barrelsof oil and that the property had a service life of 20 years. In 2005, 40,000barrels of oil were recovered from the property. What amount should becharged as an expense in 2005?------$400,0009. Wasting assets and intangible assets are reported on the balance sheet ina different way than building, equipment, and similar plant assets. Thedifference is that wasting assets are reported at the net amount and plantassets are reported at cost, accumulated depreciation, and net amount.

10. In calculating its taxable income, a company tries to report its income aslow as it can. In calculating its financial accounting income, a company triesto report its income as fairly as it can.

11. As compared with straight-line depreciation, accelerated depreciationwrites off more depreciation in the early years of an asset’s life and less inthe later years. Over the whole life of asset, accelerated depreciation writesoff the same total cost as straight-line depreciation.

12. Companies usually use accelerated depreciation in tax accountingbecause it reduces taxable income and hence income tax in the early years.13. Assume an income tax rate of 40%. If a company calculated its financialaccounting income (before income taxes) in 2005 as $6 million and itstaxable income as$4 million, what amount would it report as income taxexpense on its 2005 income statement?----$2,400,00014. Fill in the missing name on the following table:Income tax expense $100,000Income tax paid -60,000Deferred income tax $ 40,000

The $40,000 would be reported on the balance sheet as a liability.