会计专业英语试题试卷及答案3个方向全.docx

会计专业英语试题试卷及答案3个方向全
（财务管理方向）
PART Ⅰ Terms Interpretation (5×2’=10’)
1. Acid test (quick ratio)

2. Times interest earned

3. Discounted cash flow

4. Internal rate of return (IRR)

5. Net present value (NPV)
Part Ⅱ True or False (10×1’=10’)
1. A company’s return on equity will always exceed its return on assets. ( )

2. A company’s current ratio must always be larger than its acid-test ratio. ( )

3. Three variables characterize a bond: its par value, its coupon rate, and its maturity date. ( )

4. Like debt, preferred stock is a fixed-income security. ( )

5. Unrealized paper gains are less valuable than realized cash earnings. ( )

6. According to the transaction objects, financial market can be divided into short-term financial market and long-term financial market. ( )

7.There is no difference between the traditional and the ABC approaches. ( )

8. Internal control can provide absolute assurance. ( )

9. A budget is a business plan for the short term – typically one year. ( )

10. Board of directors has overall responsibility for designing and implementing effective internal control. ( )
PART Ⅲ Multiple Choice (10×2’=20’)
1. Financial management environment includes ________
A. Technology environment
B. Economic environment
C. Financial environment
D. Legal environment

2. The following financing methods can reduce financial risk ________
A. Financing bank borrowing
B. Retained earnings financing
C Finance lease financing
D. Common stock financing

3.The basic characteristics of financial instruments include________
A. Time limit
B. Liquidity
C. Risk
D. Profitability

4.The advantages of net present value method are________
A. Consider investment risk
B. Consider the time value of the funds
C. Can dynamically reflect the real rate of return of the project
D. Considered total net cash flows for the project calculation period

5. The internal rate of return belongs to________
A Dynamic evaluation index
B Positive index
C Main indicators
D Secondary indicator

6. The return on net assets can comprehensively reflect the enterprise’s________
A. Profitability
B. Short-term solvency
C. Long-term solvency
D. Operating capacity

7. Regarding the capital cost of bank borrowing and financing, the following statements are wrong________
A. The capital cost of bank borrowing has nothing to do with the method of repayment of principal and interest.
B. The handling fee of bank borrowing will affect the capital cost of bank borrowing.
C. The cost of capital of bank borrowings only includes interest payments on bank borrowings.
D. The cost of capital rate of bank borrowing is generally equal to the risk-free interest rate.

8. Among the following statements about the characteristics of debt financing, which one is correct ________
A. Raises funds faster
B. Can decentralize control of the company
C. Limited amount of funding
D. Can form a stable capital base

9. The factors that can affect both the bond value and the bond internal rate of return are________
A. Bond price
B. Minimum investment rate of return
C. Coupon rate
D. Bond face value

10. For short-term financing bills in China, the correct one is________
A. Compared with bank borrowings, its credit rating requirements are higher.
B. Compared with commercial credit, its repayment method is more flexible.
C. Compared with corporate bonds, its financing cost is higher.
D. Compared with bank loans, the total amount of one-time financing is larger.
Part Ⅳ Short Answer Questions (4×5’=20’)
1. What is the financial leverage?
2. Explain the risks of bond investment.
3. What are the differences between economic income and accounting income?
4. What is the liquidity ratios?
Part Ⅴ Case Study (2×20’=40’)
1. Answer the following questions assuming the interest rate is 12 percent.
a. What is the present value of $1,000 in six years?
b. What is the present value of $1,000 in 12 years? Why does the present value fall as the number of years increases?
c. How much would you pay for the right to receive $5,000 at the end of year 1, $3,000 at the end of year 2, and $10,000 at the end of year 10?
d. How much would you pay for a 14-year bond with a par value of $1,000 and an 8 percent coupon rate? Assume interest is paid annually.

2. Your firm is considering the acquisition of a very promising Internet company. One executive argues against the move, pointing out that because the Internet company is presently losing money, acquisition will cause your firm’s return on equity to fall.
a. Is the executive correct in predicting that ROE will fall?
b. How important should changes in ROE be in this decision?

会计专业英语试卷（财务管理方向）答案
PART Ⅰ Terms Interpretation (5×2’=10’)
1. Acid test (quick ratio): a measure of liquidity, defined as current assets less inventories divided by current liabilities.

2. Times interest earned: a coverage ratio measure of financial leverage, defined as earnings before interest and taxes divided by interest expense.

3. Discounted cash flow: the method of evaluating long-term projects that explicitly takes into account the time value of money.

4. Internal rate of return (IRR): discount rate at which project’s net present value equals zero. Rate at which funds left in a project are compounding.

5. Net present value (NPV): present value of cash inflows less present value of cash outflows. The increase in wealth accruing to an investor when he or she undertakes an investment.
Part Ⅱ True or False (10×1’=10’)
1. T 2. T 3. T 4. T 5. F
6. F 7. F 8. F 9. T 10 F
PART Ⅲ Multiple Choice (10×2’=20’)
1. ABCD 2. BD 3. ABCD 4. ABD 5. ABC
6. ACD 7. ACD 8. AC 9. CD 10. AD
Part Ⅳ Short Answer Questions (4×5’=20’)
1. Financial leverage refers to the leverage effect that the change in the profit per share of common stock is greater than the change in profit before interest and tax due to the existence of debt.

2. Bonds as an investment may meet the pernicious effects of inflation on fixed-income securities. For although the nominal return on fixed-interest-rate bonds are specified, the value of the resulting interest and principal payments to the investor is much less when inflation is high.

3. The primary difference between accounting income and economic income is that accounting income results from business transactions and economic income results from economic events. Accounting income is realized, meaning that a transaction took place and resulted in money-in-hand income. Economic income is an increase in the book value of an asset that is unrealized until a future transaction takes place.

4. Liquidity ratios: Ratios intended to measure the liquidity of a company’s assets relative to its liabilities. The two most common ones are the current ratio and the acid test.
Part Ⅴ Case Study (2×20’=40’)
1.
a. PV=1,000(0.507) = $507
b. PV=1,000(0.257) = $257. Present value is less because the present sum has more time to grow into $1,000.
c. PV=5,000(0.893) +3,000(0.797) +10,000(0.322) = $10,076
d. PV=80(6.628) +1,000(0.205) = $735.24

2.
a. ROE will undoubtedly fall. The numerator of the ratio, net income, will decline because the acquired company is losing money.
b. This, however, is not important to the decision. This is another example of the timing problem. If the Internet company has great promise, it may make complete sense to acquire the business even though it is currently losing money. The proper way to evaluate the acquisition is to calculate a time-adjusted figure of merit that takes into account the company’s future performance.
会计专业英语试卷（会计学方向）
PART Ⅰ Terms Interpretation (5×2’=10’)
1. Financial accounting conceptual framework
2. Accrual basis accounting
3. Treasury stock
4. Fair value
5.Goodwill
Part Ⅱ True or False (10×1’=10’)
1. The International Accounting Standards Board issues standards in the global economy and hopes to create harmony among accounting practices in different countries. ( )

2. Accounting ethics are beliefs that distinguish right from wrong. ( )

3. Shareholders are insider information users of public company. ( )

4. Financial statement information is supported by unbiased evidence not someone's opinion, this is called Objectivity principle. ( )

5. Asset account is a record of assets increases in credit. ( )

6. When total debits exceed total credits the account has a debit balance. ( )

7. Withdrawals and expense accounts really represent decreases in equity; therefore, they are assigned debit balances. ( )

8. The matching principle aims to record expenses in the same period as the revenues earned as a result of these expenses. ( )

9. Perpetual inventory system which updates the accounting records for merchandise transactions only at the end of a period. ( )

10. Unearned revenue means the revenue collected after it is earned; and after services or goods are provided. ( )
PART Ⅲ Multiple Choice (10×2’=20’)
1. Period cost includes______
A. Financial expenses
B. Management expenses
C. Accrued fees
D. Manufacturing expenses

2. The month's accounting statements generally include ______
A. Balance Sheet
B. Cash Flow Statement
C. Profit Distribution Table
D. Income Statement

3. Among the following fixed assets, the fixed assets that should be depreciated include______
A. Fixed assets leased out by operating leases
B. Unused fixed assets that are not needed
C. Is rebuilding and expanding fixed assets
D. Financial leased fixed assets

4. Among the following options are current assets ______
A. Fixed assets
B. Monetary funds
C. Receivables and prepayments
D. Inventory

5. Among the following accounts are the cost calculation accounts ______
A. Manufacturing expenses
B. Production costs
C. Management fees
D. Material procurement

6. The specific services of the account management business in the cash management business are ______
A. Account combing
B. Account system construction
C. Account inquiry
D. Account information notification

7. The characteristics of the cost in______
A. Expenses are the total outflow of economic benefits that occur in the daily activities of an enterprise
B. Fees result in a reduction in owner's equity
C. Expenses are not related to the distribution of profits to the owner
D. Expenses include main operating income

8. In the steps of revenue recognition and measurement, what is related to the measurement of revenue is______
A. Identify the contract with the customer
B. Identify individual performance obligations in the contract
C. Determine the transaction price
D. Allocate the transaction price to each individual performance obligation

9. Among the following asset impairment provisions, those that can be reversed when the relevant conditions are met are______
A. Bad debt provision
B. Inventory falling price reserve
C. Provision for impairment of intangible assets
D. Long-term equity investment impairment provision

10. The following items should be accounted for through the "Fixed Assets Clearance" account______
A. Fixed assets scrap
B. Sale of fixed assets
C. Losses on fixed assets
D. Damage to fixed assets
Part Ⅳ Short Answer Questions (4×5’=20’)
1. Explain the difference between the retail inventory method and gross profit inventory method for valuing inventory. 
2. What is the advantage of bonds financing?
3. What is gross margin ratio? How is it used as an indicator of profitability? 
4. What are the principles of internal control over cash?
Part Ⅴ Case Study (2×20’=40’)
1. SAC Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years.
2014 July.1 Purchased a computer from the Computer Center for $2,500 cash plus sales tax of $150, and shipping costs of $50.
Nov.3 Incurred ordinary repairs on computer of $140.
Dec.31 Recorded 2014 depreciation on the basis of a four-year life and estimated salvage value of $500.
2015 Dec.31 Recorded 2015 depreciation.
2016 Jan.1 Paid $500 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.
Instructions
Prepare the necessary entries. (Show computations.)

2. A business is considering offering tender to undertake a contract. Fulfillment of the contract will require the use of two types of raw material, both of which are held in stock by the business. All of the stock (inventory) of these two raw materials will need to be used on the contract. Information on the stock required is as follows:
Stock item
Quantity
units
Historical cost
￡/unit
Sales value
￡/unit
Replacement cost
￡/unit
A1
500
5
3
6
B2
800
7
8
10

Stock item A1 is in frequent use in the business on variety of work. The stock of item B2 was bought a year ago for a contract that was abandoned. It has recently become obvious that there is no likelihood of ever using this stock if the contract currently being considered does not proceed.
Management wishes to deduce the minimum price at which the business could undertake the contract without reducing its wealth as a result. This can be used as the baseline in deducing the tender price.
How much should be included in the minimum price in respect of the two stock items detailed above?
会计专业英语试卷（会计学方向）答案
PART Ⅰ Terms Interpretation (5×2’=10’)
1. Financial accounting conceptual framework：Financial accounting conceptual framework includes the purpose of accounting and financial reporting, accounting basis and assumptions, accounting principles and measurement bases, and the qualitative characteristics of financial accounting information.

2. Accrual basis accounting：Accrual-basis accounting (accrual accounting) records financial events based on economic activity rather than financial activity. Under accrual accounting, revenue is recorded when it is earned and realized, regardless of when actual payment is received. Similarly, expenses are “matched” revenue regardless of when they are actually paid.

3. Treasury stock: Treasury stock may be defined as shares of a corporation’s own capital stock that have been issued and later re-acquired by the issuing company but that have not been canceled or permanently retired.

4. Fair value：Fair value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.

5. Goodwill：The present value of expected future earnings of a business in excess of the earnings normally realized in the industry.
Part Ⅱ True or False