西方会计练习题

PART I MULTIPLE CHOICE InstructionsDesignate the best answer for each of the following questions._1.Which of the following statements is true?a.Trading securities are debt securities that the investor has the intent to hold to maturity.b.Trading securities are securities bought and held primarily for sale in the near term.c.Trading securities are securities that may be sold in the future.d.Trading securities are reported at cost in the balance sheet._2.In order to be relevant, accounting information musta.be neutral.b.be verifiable.c. help predict future events.d.be a faithful representation._3.The cost of intangible assets should bea.amortized over the assets estimated useful life, or 20 years, whichever is shorter.b.amortized over a period not exceeding 5 years.c. amortized over the assets estimated useful life.d.charged to an expense account at acquisition._4.On November 30, Thatcher Company issued a $8,000, 6%, 4-month note to the National Bank. The entry on Thatchers books to record the payment of the note at maturity will include a credit to Cash fora.$8,000.b.$8,480.c. $8,160.d.$8,320._5.The following information is available for Lighten Company:Sales$130,000Freight-in$10,000Ending Merchandise Inventory12,000Purchase Returns and Allowances5,000Purchases90,000Beginning Merchandise Inventory15,000Lightens cost of goods sold isa.$115,000.b.$110,000.c. $98,000.d.$95,000.e.None of the above._6.One of the two constraints in accounting parability.b.materiality.c. reliability.d.relevance._7.All of the following are intangible assets excepta.patents.b.land improvements.c. goodwill.d.franchises._8.When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves aa.debit to an expense account.b.credit to an expense account.c. credit to the Allowance account.d.debit to the Allowance account._9.Helig Company has a $150,000 balance in Accounts Receivable and a $1,000 debit balance in Allowance for Doubtful Accounts. Credit sales for the period totaled $900,000. What is the amount of the bad debt adjusting entry if Helig uses a percentage of receivables basis (at 10%)?a.$15,000b.$14,000c.$16,000d.$15,200_10.If merchandise is sold for $1,000 subject to credit terms of 2/10, n/30, the entry to record collection in full within the discount period would include aa.credit to Sales Discounts for $20.b.credit to Cash for $980.c. credit to Accounts Receivable for $20.d.none of the above._11.Jetson Companys financial information is presented below.Sales$ ?Purchase Returns and Allowances$ 15,000Sales Returns and Allowances30,000 Ending Merchandise Inventory35,000Net Sales250,000Cost of Goods Sold180,000Beginning Merchandise Inventory?Gross Profit?Purchases170,000 The missing amounts above are: SalesBeginning InventoryGross Profita.$280,000$45,000$70,000b.$220,000$45,000$100,000c.$280,000$60,000$70,000d.$220,000$60,000$100,000_12.The preparation of closing entriesa.is an optional step in the accounting cycle.b.results in zero balances in all accounts at the end of the period so that they are ready for the following periods transactions.c. is necessary before financial statements can be prepared.d.results in transferring the balances in all temporary accounts to Retained Earnings._13.Current liabilities are obligations that are reasonably expected to be paid from ExistingCreation of OtherCurrent AssetsCurrent Liabilitiesa.NoNob.YesYesc.YesNod.NoYes_14.The primary accounting standard-setting body in the United States is thea.Securities and Exchange Commission.b.Accounting Principles Board.c. Financial Accounting Standards Board.d.Internal Revenue Service._15.Which of the following statements is true?a.Trading securities are debt securities that the investor has the intent to hold to maturity.b.Trading securities are securities bought and held primarily for sale in the near term.c.Trading securities are securities that may be sold in the future.d.Trading securities are reported at cost in the balance sheet._16.In accounting for available-for-sale securities, the Unrealized LossEquity account should be classified as aa.liability on the balance sheet.b.loss on the income statement.c.deduction in the stockholders equity section of the balance sheet.d.contra asset on the balance sheet._17.Fison Corp. purchased 15,000 shares of its $2 par common stock at a cost of $13 per share on April 30, 2003. The stock was originally issued at $11 per share. The entry to record the purchase of the stock should include a debit toa.Common Stock for $30,000.b.Treasury Stock for $30,000.c.Common Stock for $195,000.d.Treasury Stock for $195,000._18.Which of the following should be classified as an extraordinary item?a.Effects of major casualties not infrequent in the areab.Write-off of a significant amount of receivablesc.Loss from the expropriation of facilities by a foreign governmentd.Losses due to a bitter, lengthy labor strike_19.In order to be considered extraordinary, an item must bea.frequent and uninsured.b.unusual and uninsured.c.uninsured and infrequent.d.infrequent and unusual._20.If the market rate of interest is lower than the stated rate, bonds will sell at an amounta.equal to face value.b.not determinable from the given information.c.lower than face value.d.higher than face value.PART II MATCHING InstructionsDesignate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No letter should be used more than once.A.Additions and improvements X.Full disclosure principleB.Allowance methodY.Going-concern assumptionC.AmortizationZ.Held-to-maturity securitiesD.Available-for-sale securitiesAA.Internal controlE.Average cost methodAB.Last-in, first-out methodF.Book valueAC.LIFO reserveG.Capital expenditureAD.Matching principleH.Cash debt coverage ratioAE.MaterialityI.ConsistencyAF.Monetary unit assumptionJ.Contra asset accountAG.Net purchasesK.Cost methodAH.Periodic inventory systemL.Credit memorandumAI.Permanent accountsM.Debit memorandumAJ.Perpetual inventory systemN.Declining-balance methodAK.Ratio analysisO.Depreciable CostAL.RelevanceP.DepreciationAM.ReliabilityQ.Direct write-off methodAN.Revenue expenditureR.Discontinued operationsAO.Revenue recognition principleS.Earnings per shareAP.Stock dividendT.Economic entity assumptionAQ.Stock splitU.Equity methodAR.Temporary accountsV.Extraordinary itemsAS.Time period assumptionW.First-in, first-out methodAT.Units-of-activity method_1.The total amount subject to depreciation._2.An expenditure charged against revenues as an expense when incurred._3.A measure of solvency calculated as cash provided by operating activities divided by average total liabilities._4.An assumption that economic events can be identified with a particular unit of accountability._5.An assumption that the economic life of a business can be divided into artificial time periods._6.An accounting method in which cash dividends received are credited to Dividend Revenue._7.The assumption that the enterprise will continue in operation long enough to carry out its existing objectives and commitments._8.The difference between inventory reported using LIFO and inventory reported using FIFO._9.Revenue, expense, and dividends accounts whose balances are trans