南开大学25年春季新学期《会计专业英语》在线作业三

南开大学25年春季新学期《会计专业英语》在线作业三1.Theprocessofrecordingbusinesstransactionsinajournaliscalled______.A.postingB.journalizingC.balancingD.analyzingAnswer:B.Journalizingistheprocessofrecordingbusinesstransactionsinajournal.Postingistransferringentriesfromthejournaltotheledger.Balancingisaboutensuringtheequalityofdebitsandcreditsinanaccount.Analyzingistheinitialstepofunderstandingatransaction.2.Whichofthefollowingaccountsnormallyhasadebitbalance?A.AccountsPayableB.CommonStockC.ServiceRevenueD.SuppliesAnswer:D.Suppliesisanassetaccount,andassetaccountsnormallyhavedebitbalances.AccountsPayableisaliabilityaccountwithacreditbalance.CommonStockisanequityaccountwithacreditbalance.ServiceRevenueisarevenueaccountwithacreditbalance.3.Theaccountingequationis______.A.Assets=Liabilities+Stockholders'EquityB.Assets+Liabilities=Stockholders'EquityC.Assets=LiabilitiesStockholders'EquityD.AssetsLiabilities=Stockholders'EquityAnswer:A.ThefundamentalaccountingequationisAssets=Liabilities+Stockholders'Equity,whichrepresentstherelationshipbetweenacompany'sresources(assets),itsdebts(liabilities),andtheowners'claims(stockholders'equity).4.Acompanypurchasedofficesuppliesonaccount.Thistransactionwouldberecordedasadebitto______andacreditto______.A.OfficeSupplies;AccountsPayableB.AccountsPayable;OfficeSuppliesC.OfficeSupplies;CashD.Cash;OfficeSuppliesAnswer:A.Whenacompanypurchasesofficesuppliesonaccount,itincreasestheOfficeSupplies(anasset,sodebit)andalsoincreasestheAccountsPayable(aliability,socredit).5.Theincomestatementshows______.A.thefinancialpositionofacompanyataspecificpointintimeB.theresultsofoperationsforaspecificperiodoftimeC.thechangesinstockholders'equityoveraperiodoftimeD.thecashinflowsandoutflowsofacompanyoveraperiodoftimeAnswer:B.Theincomestatementreportstherevenuesandexpensesofacompanyforaspecificperiod,showingtheresultsofoperations(netincomeornetloss).Thebalancesheetshowsthefinancialpositionataspecificpointintime.Thestatementofstockholders'equityshowsthechangesinstockholders'equity.Thestatementofcashflowsshowsthecashinflowsandoutflows.6.Depreciationisanexampleofa(n)______.A.accruedrevenueB.accruedexpenseC.prepaidexpenseD.deferredrevenueAnswer:B.Depreciationisanaccruedexpense.Itisthesystematicallocationofthecostofalongtermassetoveritsusefullife.Accruedrevenuesarerevenuesearnedbutnotyetreceived.Prepaidexpensesareexpensespaidinadvance.Deferredrevenuesarerevenuesreceivedinadvancebutnotyetearned.7.Ifacompanyfailstoadjustforaccruedrevenues,______.A.assetswillbeunderstatedandrevenueswillbeunderstatedB.assetswillbeoverstatedandrevenueswillbeunderstatedC.liabilitieswillbeunderstatedandrevenueswillbeunderstatedD.liabilitieswillbeoverstatedandrevenueswillbeoverstatedAnswer:A.Accruedrevenuesarerevenuesthathavebeenearnedbutnotyetrecorded.Ifnotadjusted,theaccountsreceivable(anasset)willbeunderstated,andtherevenuewillalsobeunderstated.8.Theclosingentriesaremadeto______.A.preparethetemporaryaccountsforthenextaccountingperiodB.updatethebalancesheetaccountsC.correcterrorsinthegeneralledgerD.adjusttheaccountsforaccrualsanddeferralsAnswer:A.Closingentriesareusedtoclosethetemporaryaccounts(revenue,expense,anddividendaccounts)attheendofanaccountingperiodtopreparethemforthenextperiod.Theydonotupdatebalancesheetaccountsdirectly,correcterrors,oradjustforaccrualsanddeferrals.9.Thecurrentratioiscalculatedas______.A.CurrentAssets/CurrentLiabilitiesB.TotalAssets/TotalLiabilitiesC.CurrentLiabilities/CurrentAssetsD.TotalLiabilities/TotalAssetsAnswer:A.Thecurrentratiomeasuresacompany'sshorttermliquidityandiscalculatedbydividingcurrentassetsbycurrentliabilities.10.Whichofthefollowingisacashinflowfromoperatingactivities?A.ProceedsfromthesaleofequipmentB.IssuanceofcommonstockC.CollectionofaccountsreceivableD.PaymentofdividendsAnswer:C.Collectionofaccountsreceivableisacashinflowfromoperatingactivitiesasitisrelatedtothenormalbusinessoperationsofsellinggoodsorservicesoncreditandthencollectingthecash.Proceedsfromthesaleofequipmentareaninvestingactivity.Issuanceofcommonstockisafinancingactivity.Paymentofdividendsisafinancingactivity.11.Thedoubleentryaccountingsystemmeans______.A.everytransactionaffectsatleasttwoaccountsB.everytransactionisrecordedtwiceC.onlytwoaccountsareinvolvedineachtransactionD.thetotalamountofdebitsmustequalthetotalamountofcreditsforeachindividualaccountAnswer:A.Indoubleentryaccounting,everytransactionhasadualeffectandaffectsatleasttwoaccounts.Itisnotthattransactionsarerecordedtwice,andmorethantwoaccountscanbeinvolvedinasingletransaction.Thetotaldebitsmustequalthetotalcreditsfortheentiresetoftransactions,notforeachindividualaccount.12.Atrialbalancethatisinbalance______.A.ensuresthatalltransactionshavebeenrecordedB.provesthattheledgeraccountsarecorrectC.showsthatthetotaldebitsequalthetotalcreditsD.guaranteesthatnoerrorshavebeenmadeAnswer:C.Abalancedtrialbalanceonlyshowsthatthetotaldebitsequalthetotalcredits.Itdoesnotensurethatalltransactionshavebeenrecorded,provethattheledgeraccountsarecorrect,orguaranteethatnoerrorshavebeenmade.Therecouldbeerrorssuchaserrorsofomission,errorsofcommission,orcompensatingerrors.13.Thecostofgoodssoldiscalculatedas______.A.BeginningInventory+PurchasesEndingInventoryB.BeginningInventoryPurchases+EndingInventoryC.EndingInventory+PurchasesBeginningInventoryD.EndingInventoryPurchases+BeginningInventoryAnswer:A.ThecostofgoodssoldformulaisBeginningInventory+PurchasesEndingInventory.Beginninginventorypluspurchasesgivesthetotalgoodsavailableforsale,andsubtractingtheendinginventorygivesthecostofthegoodsthatweresold.14.Acontraassetaccountisusedto______.A.increasethebalanceofanassetaccountB.decreasethebalanceofanassetaccountC.increasethebalanceofaliabilityaccountD.decreasethebalanceofaliabilityaccountAnswer:B.Acontraassetaccounthasacreditbalanceandisusedtodecreasethebalanceofanassociatedassetaccount.Forexample,AccumulatedDepreciationisacontraassetaccountthatreducesthevalueoftherelatedfixedasset.15.Whenacompanyreceivescashinadvanceforservicestobeprovidedinthefuture,itrecordsadebitto______andacreditto______.A.Cash;ServiceRevenueB.ServiceRevenue;CashC.Cash;UnearnedRevenueD.UnearnedRevenue;CashAnswer:C.Whencashisreceivedinadvance,thecompanyhasaliabilitybecauseitowestheservicesinthefuture.So,itdebitsCash(anasset)andcreditsUnearnedRevenue(aliability).16.Thestatementofstockholders'equityshowsallofthefollowingexcept______.A.netincomeB.dividendsC.issuanceofcommonstockD.accountspayableAnswer:D.Thestatementofstockholders'equityshowsthechangesinstockholders'equity,includingnetincome(whichincreasesretainedearnings),dividends(whichdecreaseretainedearnings),andissuanceofcommonstock(whichincreasescommonstock).Accountspayableisaliabilityaccountandisnotshownonthestatementofstockholders'equity.17.Acompany'sinventoryturnoverratioiscalculatedas______.A.CostofGoodsSold/AverageInventoryB.AverageInventory/CostofGoodsSoldC.NetSales/AverageInventoryD.AverageInventory/NetSalesAnswer:A.Theinventoryturnoverratiomeasureshowquicklyacompanysellsitsinventory.Itiscalculatedbydividingthecostofgoodssoldbytheaverageinventory.18.Ifacompanyusesthestraightlinemethodofdepreciation,theannualdepreciationexpenseiscalculatedas______.A.(CostSalvageValue)/UsefulLifeB.Cost/UsefulLifeC.(Cost+SalvageValue)/UsefulLifeD.Cost×UsefulLifeAnswer:A.Thestraightlinedepreciationformulais(CostSalvageValue)/UsefulLife.Thecostoftheassetminusitssalvagevalueisthedepreciablecost,whichisthenspreadevenlyovertheusefullifeoftheasset.19.Adebittoanexpenseaccountwill______.A.increasethebalanceoftheexpenseaccountB.decreasethebalanceoftheexpenseaccountC.increasethebalanceofarevenueaccountD.decreasethebalanceofarevenueaccountAnswer:A.Expenseaccountshaveanormaldebitbalance.Adebittoanexpenseaccountwillincreaseitsbalance.Expensesandrevenuesareseparatetypesofaccounts,andadebittoanexpenseaccounthasnodirecteffectonarevenueaccount.20.Theaccountsthatareclosedattheendoftheaccountingperiodarecalled______.A.permanentaccountsB.realaccountsC.temporaryaccountsD.balancesheetaccountsAnswer:C.Temporaryaccounts(revenue,expense,anddividendaccounts)areclosedattheendoftheaccountingperiod.Permanentaccounts(asset,liability,andequityaccountsexceptfordividends)arenotclosed.Realaccountsareanothertermforpermanentaccounts,andbalancesheetaccountsarealsopermanentaccounts.21.Acompany'sreturnonassets(ROA)iscalculatedas______.A.NetIncome/TotalAssetsB.NetIncome/Stockholders'EquityC.GrossProfit/NetSalesD.OperatingIncome/NetSalesAnswer:A.Returnonassetsmeasureshowefficientlyacompanyusesitsassetstogenerateprofitandiscalculatedbydividingnetincomebytotalassets.ReturnonequityisNetIncome/Stockholders'Equity.GrossprofitmarginisGrossProfit/NetSales,andoperatingprofitmarginisOperatingIncome/NetSales.22.Ifacompany'scurrentratiois2.0anditscurrentliabilitiesare$50,000,itscurrentassetsare______.A.$25,000B.$50,000C.$100,000D.$200,000Answer:C.Thecurrentratio=CurrentAssets/CurrentLiabilities.Givenacurrentratioof2.0andcurrentliabilitiesof$50,000,wecansolveforcurrentassets:CurrentAssets=CurrentRatio×CurrentLiabilities=2.0×$50,000=$100,000.23.Anadjustingentryforprepaidexpensesinvolvesadebittoa(n)______accountandacredittoa(n)______account.A.expense;assetB.asset;expenseC.revenue;liabilityD.liability;revenueAnswer:A.Prepaidexpensesareinitiallyrecordedasassets.Astheexpenseisincurredovertime,anadjustingentryismadetodebitanexpenseaccount(torecognizetheexpense)andcredittheprepaidassetaccount(toreducetheassetbalance).24.Thecostofgoodsavailableforsaleisthesumof______.A.beginninginventoryandendinginventoryB.beginninginventoryandpurchasesC.endinginventoryandpurchasesD.purchasesandcostofgoodssoldAnswer:B.ThecostofgoodsavailableforsaleiscalculatedasBeginningInventory+Purchases.Itrepresentsthetotalcostofthegoodsthatthecompanyhadavailabletosellduringtheperiod.25.Acompany'saccountsreceivableturnoverratioiscalculatedas______.A.NetCreditSales/AverageAccountsReceivableB.AverageAccountsReceivable/NetCreditSalesC.CostofGoodsSold/AverageAccountsReceivableD.AverageAccountsReceivable/CostofGoodsSoldAnswer:A.Theaccountsreceivableturnoverratiomeasureshowquicklyacompanycollectsitsreceivables.Itiscalculatedbydividingnetcreditsalesbytheaverageaccountsreceivable.26.Whichofthefollowingisnotacharacteristicofacorporation?A.LimitedliabilityforstockholdersB.SeparatelegalentityC.UnlimitedlifeD.SingletaxationAnswer:D.Acorporationisaseparatelegalentitywithlimitedliabilityforstockholdersandhasanunlimitedlife.However,corporationsaresubjecttodoubletaxation(thecorporationpaystaxesonitsincome,andthenstockholderspaytaxesondividendsreceived).27.Theentrytorecordthepaymentofapreviouslydeclareddividendincludesadebitto______andacreditto______.A.DividendsPayable;CashB.Dividends;CashC.RetainedEarnings;CashD.Cash;DividendsPayableAnswer:A.Whenadividendisdeclared,aliability(DividendsPayable)iscreated.Whenthedividendispaid,theliabilityisdecreased(debitDividendsPayable)andcashisdecreased(creditCash).28.Acompany'sdebttoequityratioiscalculatedas______.A.TotalLiabilities/TotalAssetsB.TotalAssets/TotalLiabilitiesC.TotalLiabilities/Stockholders'EquityD.Stockholders'Equity/TotalLiabilitiesAnswer:C.Thedebttoequityratiomeasurestheproportionofdebtfinancingrelativetoequityfinancingandiscalculatedbydividingtotalliabilitiesbystockholders'equity.29.Ifacompanyissuescommonstockforcash,itrecordsadebitto______andacreditto______.A.Cash;CommonStockB.CommonStock;CashC.Cash;RetainedEarningsD.RetainedEarnings;CashAnswer:A.Whencommonstockisissuedforcash,thecompanyreceivescash(debitCash)andincreasesthecommonstockaccount(creditCommonStock).30.Thedifferencebetweenthecostofanassetanditsaccumulateddepreciationiscalled______.A.bookvalueB.marketvalueC.salvagevalueD.fairvalueAnswer:A.Thebookvalueofanassetiscalculatedasthecostoftheassetminusitsaccumulateddepreciation.Marketvalueisthepriceatwhichtheassetcouldbesoldinthemarket.Salvagevalueistheestimatedvalueoftheassetattheendofitsusefullife.Fairvalueisanestimateofthepriceatwhichanassetcouldbeexchangedinanorderlytransaction.31.Acompany'sgrossprofitmarginiscalculatedas______.A.(NetSalesCostofGoodsSold)/NetSalesB.NetIncome/NetSalesC.OperatingIncome/NetSalesD.GrossProfit/CostofGoodsSoldAnswer:A.Thegrossprofitmarginshowsthepercentageofeachsalesdollarthatremainsaftercoveringthecostofgoodssold.Itiscalculatedas(NetSalesCostofGoodsSold)/NetSales.32.Whenacompanywritesoffanuncollectibleaccountusingtheallowancemethod,itrecordsadebitto______andacreditto______.A.BadDebtExpense;AccountsReceivableB.AllowanceforDoubtfulAccounts;AccountsReceivableC.AccountsReceivable;AllowanceforDoubtfulAccountsD.BadDebtExpense;AllowanceforDoubtfulAccountsAnswer:B.Undertheallowancemethod,whenanaccountiswrittenoff,theAllowanceforDoubtfulAccounts(acontraasset)isdebited,andtheAccountsReceivable(anasset)iscredited.33.Thetimeperiodassumptioninaccountingassumesthat______.A.acompanywillcontinuetooperateindefinitelyB.theeconomiclifeofacompanycanbedividedintoartificialtimeperiodsC.alltransactionsmustberecordedinthesameaccountingperiodD.financialstatementsshouldbepreparedonlyattheendofthecompany'slifeAnswer:B.Thetimeperiodassumptionallowstheeconomiclifeofacompanytobedividedintoartificialtimeperiods(suchasmonths,quarters,oryears)forthepurposeofpreparingfinancialstatements.Thegoingconcernassumptionassumesthatacompanywillcontinuetooperateindefinitely.34.Acompany'soperatingincomeiscalculatedas______.A.GrossProfitOperatingExpensesB.NetIncome+InterestExpenseC.GrossProfit+NonoperatingIncomeD.NetIncomeNonoperatingExpensesAnswer:A.Operatingincomeisdeterminedbysubtractingoperatingexpensesfromthegrossprofit.Itrepresentstheprofitfromthecompany'scoreoperations.35.TheFIFO(FirstIn,FirstOut)methodofinventorycostingassumesthat______.A.thefirstgoodspurchasedarethefirstgoodssoldB.thelastgoodspurchasedarethefirstgoodssoldC.thecostofgoodssoldisbasedontheaveragecostofinventoryD.thecostofinventoryisbasedonthecurrentmarketpriceAnswer:A.TheFIFOmethodassumesthatthefirstgoodspurchasedarethefirstgoodssold.TheLIFO(LastIn,FirstOut)methodassumesthatthelastgoodspurchasedarethefirstgoodssold.Theweightedaveragemethodusestheaveragecostofinventory.Thecostofinventoryisnotbasedonthecurrentmarketpriceundernormalinventorycostingmethods.36.Acompany'squickratioiscalculatedas______.A.(Cash+MarketableSecurities+AccountsReceivable)/CurrentLiabilitiesB.CurrentAssets/CurrentLiabilitiesC.TotalAssets/TotalLiabilitiesD.(Inventory+AccountsReceivable)/CurrentLiabilitiesAnswer:A.Thequickratioisamoreconservativemeasureofliquiditythanthecurrentratio.Itexcludesinventoryfromcurrentassetsandiscalculatedas(Cash+MarketableSecurities+AccountsReceivable)/CurrentLiabilities.37.Whenacompanyrecordsdepreciationexpense,itrecordsadebitto______andacreditto______.A.DepreciationExpense;AccumulatedDepreciationB.AccumulatedDepreciation;DepreciationExpenseC.FixedAssets;DepreciationExpenseD.DepreciationExpense;FixedAssetsAnswer:A.DepreciationexpenseisrecognizedbydebitingtheDepreciationExpenseaccount(anexpenseaccount)andcreditingtheAccumulatedDepreciationaccount(acontraassetaccount).38.Thematchingprincipleinaccountingrequiresthat______.A.revenuesberecognizedwhencashisreceivedB.expensesberecognizedinthesameperiodastherevenuestheyhelptogenerateC.assetsberecordedattheirhistoricalcostD.liabilitiesberecordedattheirpresentvalueAnswer:B.Thematchingprinciplestatesthatexpensesshouldberecognizedinthesameperiodastherevenuestheyhelptogenerate.Revenuesarerecognizedwhentheyareearned,notwhencashisreceived(revenuerecognitionprinciple).Assetsaregenerallyrecordedathistoricalcost,andliabilitiesarerecordedattheiramountsowed.39.Acompany'sstatementofcashflowsclassifiescashflowsintoallofthefollowingcategoriesexcept______.A.operatingactivitiesB.investingactivitiesC.financingactivitiesD.noncashactivitiesAnswer:D.Thestatementofcashflowsclassifiescashflowsintooperating,investing,andfinancingactivities.Noncashactivitiesaredisclosedinaseparatescheduleornotebutarenotpartofthecashflowclassificationonthestatementofcashflows.40.Ifacompany'snetincomeis$100,000anditsweightedaveragenumberofcommonsharesoutstandingis20,000,itsearningspershare(EPS)is______.A.$2B.$5C.$20D.$50Answer:B.EarningspershareiscalculatedasNetIncome/Weightedaveragenumberofcommonsharesoutstanding.So,EPS=$100,000/20,000=$5.41.Theaccrualbasisofaccountingrecognizes______.A.revenueswhencashisreceivedandexpenseswhencashispaidB.revenueswhenearnedandexpenseswhenincurredC.revenueswhencashisreceivedandexpenseswhenincurredD.revenueswhenearnedandexpenseswhencashispaidAnswer:B.Theaccrualbasisofaccountingrecognizesrevenueswhentheyareearnedandexpenseswhentheyareincurred,regardlessofwhencashisreceivedorpaid.Thecashbasisofaccountingrecognizesrevenueswhencashisreceivedandexpenseswhencashispaid.42.Acompany'sunadjustedtrialbalanceshowsSuppliesof$5,000.Aphysicalcountrevealsthat$2,000ofsuppliesareonhand.Theadjustingentrywouldincludeadebitto______andacreditto______.A.SuppliesExpense;SuppliesB.Supplies;SuppliesExpenseC.Supplies;AccountsPayableD.AccountsPayable;SuppliesAnswer:A.Theamountofsuppliesusedis$5,000$2,000=$3,000.Torecognizethesuppliesusedasanexpense,wedebitSuppliesExpenseandcreditSupplies.43.TheLIFO(LastIn,FirstOut)methodofinventorycostingismostlikelytoresultin______.A.highernetincomeinaperiodofrisingpricesB.lowernetincomeinaperiodofrisingpricesC.thesamenetincomeinallpricechangescenariosD.higherinventoryvaluesinaperiodofrisingpricesAnswer:B.Inaperiodofrisingprices,theLIFOmethodassumesthatthelast(andmoreexpensive)goodspurchasedarethefirstgoodssold.ThisresultsinahighercostofgoodssoldandlowernetincomecomparedtotheFIFOmethod.44.Acompany'sretainedearningsattheendoftheperiodiscalculatedas______.A.BeginningRetainedEarnings+NetIncomeDividendsB.BeginningRetainedEarnings+NetIncome+DividendsC.BeginningRetainedEarningsNetIncomeDividendsD.BeginningRetainedEarningsNetIncome+DividendsAnswer:A.Retainedearningsattheendoftheperiodisdeterminedbystartingwiththebeginningretainedearnings,addingthenetincomefortheperiod,andthensubtractingthedividendspaidduringtheperiod.45.Whenacompanyissuesabondatapremium,thecarryingvalueofthebond______overthelifeofthebond.A.increasesB.decreasesC.remainsthesameD.fluctuatesrandomlyAnswer:B.Whenabondisissuedatapremium,thepremiumisamortizedoverthelifeofthebond.Asthepremiumisamortized,thecarryingvalueofthebond(facevalue+unamortizedpremium)decreasesuntilitreachesthefacev