会计专业英语复习资料.doc

Post test 1 基本概念
1. Things of value owned by an entity: assets
Money: cash
Claims of creditors: liabilities
Claims of investors: equity
2. 2 types of sources of funds：
Stronger claim: liabilities
Lesser claim: equity
3. A balance sheet reports the status of an entity ....at a point of time.
4. Give the fundamental accounting equation: Assets = Liabilities + Equity
5. The above equation is consistent with what concept?: Dual-aspect concept
6. Money-measurement concept states that accounting reports only facts that can be expressed in monetary amounts.
7. A balance sheet does not report all the facts about a business. What concept limits the amount or type of information that can be reported? Money-measurement concept
8. Brown Company has 10000 dollar cash. Its owner withdraws 100 dollars for 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 the owner differently than it affects the company is an illustration of the entity concept.
9. The entity concept states that accounts are kept for entities as distinguished from the persons who own those entities.
11. The going-concern concept is: Accounting assumes that an entity will continue to operate indefinitely.
12. The asset-measurement concept is: if reliable information is available, accounting focuses on the fair value of assets. Nonmonetary assets are reported at their original cost.
13. An item can be reported as an asset if it passes 3 of the following: item is valuable, item was acquired at a measurable cost, item is owned or controlled 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 converted into 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 noncurrent assets.
19. An insurance policy paid in advance of the time period covered is an example of a prepaid expense.
20. A building, an item of equipment, and an automobile may all be examples of plant and property.
21.Parker Company operates a furniture store. On December 31,2005,it had 30 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 be reported as plant and property.
22.Fox Company sold $1,000 of goods on credit to Golden Company. This would be recorded as an account receivable of Fox Company and as an account payable of Golden Company.
23. Indicate whether the following statements about the balance sheet of a corporation 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 the fair value of the stock-----F
c. The amount reported for total equity is approximately the fair value of the corporation’s stock---F
d. Total equities (also called “net worth”) show approximately what the entity 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, Brown Company 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 note to the automobile dealer for the remaining $5,000
f. Brown withdrew $1,000 cash for his personal use.
g. Brown was offered $10,000 for his equity in the business, but he refused the offer.
On a separate piece of paper, prepare a rough draft of a balance sheet for Brown Company as of the close to business January 31, and an income statement for January.
Brown Company
Balance Sheet as of Jan 31
Assets
Cash……………………………………$11,500
Accounts Receivable…………………2,500
Inventory………………………………….2,000
Automobile………………………………7,000
Total………………………………………$23,000
Liabilities and Equity
Notes Payable………………………$15,000
Paid-in Capital…………………………5,000
Retained Earnings……………………3,000
Total……………………………………$23,000
Brown Company
Income Statement for January
Revenue...........................$6,000
Expense ...........................$2,000
Income ............................$4,000
2.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 the difference. f
3.John Brown claims that the inventory as of January 31 is worth $6,000, as shown 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 the asset-measurement concept. Nonmonetary assets are reported at their cost rather 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 6,000
2. 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. The merchandise 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 15,000
3. On March 10, Kay Company made a sale for $15,000 for merchandise that had cost $8,000. Prepare a journal entry to record the cost of the sale below.
Journal
2001 Transactions Dr. Cr.
March 10 Expenses 8,000
Inventory 8,000
4. Recall from the previous frames that revenues from the sale on March 10 were $15,000 and that the merchandise sold had cost $8,000. Prepare the closing entries.
Journal
2005 Transactions Dr. Cr.
March 31 Revenues 15,000
Retained earnings 15,000
March 31 Retained earnings 8,000
Expenses 8,000
5-10. 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 was unchanged, it couldn't be said to have any income in March. This criticism 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 sales revenue 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 recognized only when they are reasonably certain, while decreases in equity are recognized as soon as they are reasonably possible.
2. The materiality concept states: disregard trivial matters but disclose all important matters.
3. What is the length of the usual accounting period? One year. Financial statements prepared for shorter periods are called interim statements.
4. Cash accounting reports items that increase or decrease cash. Accrual accounting reports items that change equity or retained earnings, even though 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 is labeled income.
6. The realization concept states that revenues are recognized when goods or services are delivered.
7. H Company manufactures a table in August and places it in its retail store in September. R Smith, a customer, agrees to buy the table in October, it is delivered to him in November, and he pays the bill in December. In what month 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 when revenue 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. Advances from customers
10. 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. The cost of the table is $400. The table is delivered to the customer in March, and the customer pays the remaining $500 in April. Give the journal entries (if any) that would be made in February, March, and April for both the revenue and expense aspects of this transaction.
February:
Cash 100
Advances from customers 100
March:
Accounts receivable 500
Advances from customers 100
Revenue 600
March:
Expenses 400
Inventory 400
April:
Cash 500
Accounts receivable 500
11. 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 revenue in 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? $598,000
12. In 2006, the $2,000 of bad debt was written off.
A. What account should be debited for this written off? Allowance for doubtful 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 are acquired. An expense occurs in the period in which goods or services are consumed.
2. A certain asset was acquired in May. There was therefore an expenditure in May. At the end of May, the item was either on hand, or it was not. If it was on hand, it was an asset; If it was not on hand, it was an expense in May.
3. Productive assets are unexpired costs. Expenses are expired costs.
4. The matching concept states that costs associated with the revenues of a period 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. losses
6. If Brown company pays rent prior to the period that the rent covers, the amount 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 period covered, the amount is initially recorded as a debit to Rent Expense and a credit to Accrued Rent, which is a liability account.
7. A brand new machine owned by Fay Company was destroyed by fire in 2005. It was uninsured. It has been purchased for $10,000 with the expectation that it would be useful for 5 years. The expense recorded in 2005 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 from operating 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 the beginning 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 journal entries for the four accounts affected by this transaction.
Dr. Cash 800
Cr. Revenue 800
Dr. Cost of Sales 600
Cr. Inventory 600
2. When using the perpetual inventory method (永续盘存), a record is kept for each item, showing receipts, issues, and the amount on hand.
3. Write an equation that shows how the cost of sales is determined by deduction:
Cost of sales = beginning inventory + purchases – ending inventory
4. Omit
5. In periods of inflation, many companies use the LIFO method in calculating their taxable income because LIFO gives a higher cost of sales and hence a lower taxable income.
6. A company discovers that the fair value of its inventory is $1000 lower than its cost. What journal entry should it take?
Dr. Cost of Sales 1,000
Cr. Inventory 1,000
7. In a manufacturing business, what three elements enter into the cost of a manufactured item?
Direct material, direct labor, and overhead.
8. Period costs become an expense during the period in which they were incurred.
9. Product costs become an expense during the period in which the products were sold.
10. One type of overhead rate involves use of the total direct labor costs and total production overhead costs for a period. Write a ratio that shows how the 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 + 20
12. An inventory turnover of 5 is generally better than an inventory turnover of 4 because it indicates that less capital is tied up in inventory, and there is less 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 accounts includes its purchase price plus all costs incurred to make the asset ready for its intended use (such as transportation and installation).
2. A plant asset is acquired in 2005. It is expected to be worn out at the end of 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 indefinitely long.
4.A plant asset is acquired in 2005 at a cost of $20000. Its estimated service life is 10 years, and its estimated resid