会计英语简答及计算.docx

Defnition
1,Accounting Entity convention
Definition: the smallest unit of activity with a self-contained accounting system.
2,Going-concern convention (continuity convention)
Definition: the entity will remain in operation for the foreseeable future.
3,Monetary convention
Definition: an entity’s transactions are recorded in the monetary unit of the country in which it is operating. (economic data be recorded in dollars)
4, Materiality convention
Definition: record and report separately only those transactions which are material.
5, Cost convention
Definition: enter the exchange price into the accounting records.
6, Matching principle
Definition: all expenses incurred in earning revenue should be recognized in the same period the revenue is recognized.
7, Contents
Definition _______ The proof of the equality of the debit and credit balances.
8, Accounting Cycle
Definition _____ begins with analyzing and journalizing transactions and ends with summarizing and reporting these transactions.
9, Work sheet
Definition ____ is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.
10, Balance Sheet
Definition：
► Shows:
► (1)financial position of a business entity
► (2)by summarizing the assets, liabilities, and owners’ equity
► (3)at a specific date
11, Income Statement
Definition :
► Shows:
► (1)the results of operations for a business
► (2)matching revenue and the related expenses
► (3)for a particular accounting period (during a given time)
12, Cash flow statement:
Definition:
► cash--------- currency. (the amount of founds that can be accessed by the company at any time, or on demand)
► cash on hand/on deposit/short term investment
► cash equivalents ---------- investments which readily convertible to known amount of cash and be subject to an insignificant risk of changes in value.
13, inventory
• Definition：
• aggregation of tangible properties.
• (on BS: after accounts receivable)
14, Depreciation
Definition:
gradual conversion of the cost of a plant asset into expense in the period in which services are received from the asset.
15, Partnerships
Definition
An unincorporated (非公司制的，非法人的） business that is jointly owned by two or more people.
16, Corporations
Definition
A legal entity having an existence separate and distinct from that of its owners
17,plant and equipment
long-lived assets acquired for use in the operation of the business. (not intended for resale to customers)
Attention:
From another viewpoint : “plant and equipment asset” as a stream of services to be received by the owner over a period of years.

简答题
一， 会计循环的步骤
Accounting Cycle
basic steps:
(1)Transactions are analyzed and recorded in the journal.
(2) Transactions are posted to the ledger.
(3) A trial balance is prepared, adjustment data are assembled, and an optional work sheet is completed.
(4)Ajusting entries are journalized and posted to the ledger.
(5) Financial statements are prepared.
(6) Closing entries are journalized and posted to the ledger.
(7) A post-closing trial balance is prepared.
二，如何确定固定资产的入账成本
How to determine the cost under the four typical circumstances?
Principle --------- all expenditure reasonable and necessary (acquire)
1 purchase for cash:
cash outlay + freight + insurance + installation + trial runs + other costs
2 exchange: the money amount of the resources given up to acquire it.
3 donated: fair market value at the date of donation.
4 self-constructed: the money amount of resources embodied in the asset.

简答题
2、How to control cash effectively and efficient?书115 334 335
1 handle cash------accounting records
2 prepare “immediate control listing of cash receipts”
3 all cash receipts be deposited daily in bank
4 make all payments by check
5 issue check:
verified every expenditure (validity and amount)
6 approving expenditure------ signing checks
7 prepare BR（bank reconciliation）-----access to cash-----record cash transaction
describe the internal control for accounts receivable briefly.书125
Principle ------- proper segregation of duties. (employees)
1 maintain accounts receivable-----access to cash receipts
2 handle cash receipts-----records of receivables
3 records of receivables-----issue credit memos or write off receivables
4 important documents: serially numbered
4、投资中母子公司关系166 361
Strategic relationship
Control:
( parent-subsidiary relationship )
(1) able to determine financial and operating policies
(2) owns more than 50% of the voting stock
Significant influence:
(1) have a seat on BOD
(2) participation in the policy-making process
(3) material inter-company transactions
(4) interchange of management personnel
(5) technological interdependencies
(6) at least 20%,but not more than 50%
计算题
1、80页
format :
multiple-step income statement
single-step income statement
Heading:
(1)name of business
(2)name of statement
(3)period
Body: multiple-step single-step
revenue revenues
－ cost of goods sold － expenses
＝ Gross profit on sales net income
－ operating expenses
＝ income form operations
－income tax expense
＝net income
2、Depreciation 149到151
How to compute depreciation?
1 straight-line method:
Depreciation per year＝cost－residual value/years of useful life

2 unit-of output method:
Depreciation per unit of output (miles; inch; meter…)＝ cost－residual value/estimated units o f output (miles; inch; meter…)
3 Double-declining-balance method:
This is consist with the basic accounting concept of matching costs with related revenue. (widely used in income tax returns)
4 4 sum-of-year’s-digits method