基础会计英文版复习参考题

.1.A business entity is regarded as separate from the personal activities of its owners whether it is a sole proprietorship, a partnership, or a corporation.TrueFalse2.Assets need not always have physical characteristics such as buildings, machinery or inventory.TrueFalse3.The going concern principle assumes that the business will continue indefinitely.TrueFalse4.Notes payable and accounts payable are written promises to pay an amount owed by a certain date. Notes payable generally have interest but accounts payable generally do not.TrueFalse5.A net profit results from having more revenues than liabilities.TrueFalse6.The sale of additional shares of capital stock will cause treasury stock to increase.TrueFalse7.Articulation between the financial statements means that they relate closely to each other.TrueFalse8.Limited liability means that owners of a business are only liable for the debts of the business up to the amounts they can afford.TrueFalse9.In a business organized as a corporation, it is not necessary to list the equity of each stockholder on the balance sheet.TrueFalse10.Total assets always equal total liabilities plus total owners equity.TrueFalse11.A cash flow statement reports revenue and expense activities for a specific time period such as one month or one year.TrueFalse12.Any business event that might affect the future profitability of a business should be reported in its balance sheet.TrueFalse13.Total assets plus total liabilities equals total owners equity.TrueFalse14.The practice of showing assets on the balance sheet at their cost rather than at their current market value is explained in part by the fact that cost is supported by objective evidence that can be verified by independent experts.TrueFalse15.The realization principle states that the activities of an entity should be kept separate from those of its owner.TrueFalse16.The entity principle states that the affairs of the owners are not part of the financial operations of a business entity and should be separated.TrueFalse17.The accounting equation may be stated as assets minus liabilities equals owners equity.TrueFalse18.A transaction that causes an increase in an asset may also cause a decrease in another asset, an increase in a liability, or an increase in owners equity.TrueFalse19.The collection of an account receivable will cause total assets to decrease.TrueFalse20.The payment of a liability causes an increase in owners equity.TrueFalse21.When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or owners equity.TrueFalse22.The purchase of an asset such as office equipment, for cash will cause owners equity to decrease.TrueFalse23.The owner of a sole proprietorship is personally liable for the debts of the business, whereas the stockholders of a corporation are not personally liable for the debts of the business.TrueFalse24.If a company purchases equipment for cash, its total assets will increase.TrueFalse25.If a company purchases equipment by issuing a note payable, its total assets will not change.TrueFalse26.It is not unusual for an entity to report a significant increase in cash from operating activities, but a decrease in the total amount of cash.TrueFalse27.The cash flow statement provides a link between two balance sheets by showing how net income (or loss) has changed owners equity from one balance sheet date to the next.TrueFalse28.According to Sarbanes-Oxley, internal controls must be audited by the same accounting firm that audits the financial statements.TrueFalse29.The Public Company Accounting Oversight Board was created by the American Institute of CPAs to oversee the public accounting profession.TrueFalse30.The major outgrowth from business failures and allegations of fraudulent financial reporting during the 1990s was the passage of the Securities and Exchange Act.TrueFalseChapter 02 Basic Financial Statements Answer KeyTrue / False Questions1.A business entity is regarded as separate from the personal activities of its owners whether it is a sole proprietorship, a partnership, or a corporation.TRUEAACSB: Reflective ThinkingAICPA BB: LegalAICPA FN: ReportingLearning Objective: 2Learning Objective: 82.Assets need not always have physical characteristics such as buildings, machinery or inventory.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 23.The going concern principle assumes that the business will continue indefinitely.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 1Learning Objective: 24.Notes payable and accounts payable are written promises to pay an amount owed by a certain date. Notes payable generally have interest but accounts payable generally do not.TRUEAACSB: Reflective ThinkingAICPA BB: Resource ManagementAICPA FN: MeasurementLearning Objective: 45.A net profit results from having more revenues than liabilities.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 3Learning Objective: 56.The sale of additional shares of capital stock will cause treasury stock to increase.FALSEAACSB: Reflective ThinkingAICPA BB: Resource ManagementAICPA FN: MeasurementLearning Objective: 3Learning Objective: 47.Articulation between the financial statements means that they relate closely to each other.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 78.Limited liability means that owners of a business are only liable for the debts of the business up to the amounts they can afford.FALSEAACSB: Reflective ThinkingAICPA BB: LegalAICPA FN: MeasurementLearning Objective: 89.In a business organized as a corporation, it is not necessary to list the equity of each stockholder on the balance sheet.TRUEAACSB: Reflective ThinkingAICPA BB: LegalAICPA FN: ReportingLearning Objective: 810.Total assets always equal total liabilities plus total owners equity.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 311.A cash flow statement reports revenue and expense activities for a specific time period such as one month or one year.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: ReportingLearning Objective: 612.Any business event that might affect the future profitability of a business should be reported in its balance sheet.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: ReportingLearning Objective: 3Learning Objective: 413.Total assets plus total liabilities equals total owners equity.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 314.The practice of showing assets on the balance sheet at their cost rather than at their current market value is explained in part by the fact that cost is supported by objective evidence that can be verified by independent experts.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 215.The realization principle states that the activities of an entity should be kept separate from those of its owner.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 216.The entity principle states that the affairs of the owners are not part of the financial operations of a business entity and should be separated.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 217.The accounting equation may be stated as assets minus liabilities equals owners equity.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 318.A transaction that causes an increase in an asset may also cause a decrease in another asset, an increase in a liability, or an increase in owners equity.TRUEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 319.The collection of an account receivable will cause total assets to decrease.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 320.The payment of a liability causes an increase in owners equity.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 321.When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or owners equity.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 322.The purchase of an asset such as office equipment, for cash will cause owners equity to decrease.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 323.The owner of a sole proprietorship is personally liable for the debts of the business, whereas the stockholders of a corporation are not personally liable for the debts of the business.TRUEAACSB: Reflective ThinkingAICPA BB: LegalAICPA FN: MeasurementLearning Objective: 824.If a company purchases equipment for cash, its total assets will increase.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 325.If a company purchases equipment by issuing a note payable, its total assets will not change.FALSEAACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementLearning Objective: 326.It is not unusual for an entity to report a significant increase in cash from operating activities, but a decrea