南开大学25年春季新学期《会计专业英语》在线作业一

南开大学25年春季新学期《会计专业英语》在线作业一1.Whichofthefollowingstatementsaboutassetsiscorrect?A.Assetsareonlyphysicalitemssuchasbuildingsandmachinery.B.Assetsrepresentfutureeconomicbenefitsthattheentityhasobtainedasaresultofpasttransactionsorevents.C.Assetsmustbelegallyownedbytheentity.D.Allintangibleitemscannotberecognizedasassets.Answer:B.Assetsareresourcescontrolledbyanentityasaresultofpasteventsandfromwhichfutureeconomicbenefitsareexpectedtoflowtotheentity.Assetscanbephysicalorintangible,andanentitycancontrolanassetwithoutlegalownership.Forexample,leasedassetscanberecognizedasassetsiftheentityhastherighttousethemandobtaineconomicbenefits.2.Theaccountingequationis:A.Assets=Liabilities+Owner'sEquityB.Assets+Liabilities=Owner'sEquityC.Assets=LiabilitiesOwner'sEquityD.Liabilities=Assets+Owner'sEquityAnswer:A.Thefundamentalaccountingequationshowstherelationshipbetweenacompany'sassets,liabilities,andowner'sequity.Itmustalwaysholdtrueindoubleentryaccounting.3.Whichofthefollowingisaliability?A.AccountsReceivableB.PrepaidInsuranceC.NotesPayableD.InventoryAnswer:C.NotesPayablerepresentsanobligationofthecompanytopayacertainamountinthefuture,whichisaliability.AccountsReceivableandInventoryareassets,andPrepaidInsuranceisalsoanassetasitrepresentsafutureeconomicbenefit(insurancecoverage).4.Theprocessofrecordingbusinesstransactionsinajournaliscalled:A.PostingB.JournalizingC.TrialbalancingD.AdjustingAnswer:B.Journalizingisthefirststepintheaccountingcyclewherebusinesstransactionsarerecordedinthejournalinchronologicalorder.Postingistransferringjournalentriestotheledgeraccounts.Trialbalancingispreparingatrialbalancetochecktheequalityofdebitsandcredits,andadjustingismakingendofperiodadjustments.5.Adebitentrywill:A.IncreaseanassetaccountB.DecreasealiabilityaccountC.IncreaseanexpenseaccountD.AlloftheaboveAnswer:D.Indoubleentryaccounting,debitsincreaseassetandexpenseaccountsanddecreaseliability,equity,andrevenueaccounts.6.Thenormalbalanceofanaccountspayableaccountis:A.DebitB.CreditC.EitherdebitorcreditD.NoneoftheaboveAnswer:B.AccountsPayableisaliabilityaccount,andthenormalbalanceofaliabilityaccountisacreditbalance.7.Whichofthefollowingisanexampleofanaccruedexpense?A.RentpaidinadvanceB.WagesearnedbyemployeesbutnotyetpaidC.InsurancepaidforthenextyearD.SuppliespurchasedandusedimmediatelyAnswer:B.Anaccruedexpenseisanexpensethathasbeenincurredbuthasnotyetbeenpaid.Wagesearnedbyemployeesbutnotyetpaidisanexampleofanaccruedexpense.Rentpaidinadvanceandinsurancepaidforthenextyearareprepaidexpenses(assets),andsuppliespurchasedandusedimmediatelyarerecognizedasanexpenseatthetimeofpurchase.8.Thematchingprinciplerequiresthat:A.RevenuesberecognizedwhencashisreceivedB.ExpensesberecognizedinthesameperiodastherevenuestheyhelptogenerateC.AssetsberecordedattheirhistoricalcostD.LiabilitiesberecordedattheirpresentvalueAnswer:B.Thematchingprincipleaimstomatchexpenseswiththerevenuestheyhelptogenerateinthesameaccountingperiodtoaccuratelymeasuretheprofitoftheperiod.9.Acompanypurchasedofficeequipmentfor$5,000cash.Whatistheeffectontheaccountingequation?A.Assetsincreaseby$5,000,andliabilitiesincreaseby$5,000B.Assetsincreaseby$5,000,andowner'sequityincreasesby$5,000C.Oneasset(officeequipment)increasesby$5,000,andanotherasset(cash)decreasesby$5,000D.Liabilitiesdecreaseby$5,000,andowner'sequityincreasesby$5,000Answer:C.Thepurchaseofofficeequipmentforcashresultsinanincreaseintheofficeequipment(anasset)andadecreaseincash(alsoanasset).Thetotalamountofassetsremainsthesame,andthereisnoimpactonliabilitiesandowner'sequity.10.Theincomestatementshows:A.ThefinancialpositionofacompanyataspecificpointintimeB.TheresultsofoperationsofacompanyoveraperiodoftimeC.ThecashinflowsandoutflowsofacompanyoveraperiodoftimeD.Thechangesinowner'sequityoveraperiodoftimeAnswer:B.Theincomestatementreportsacompany'srevenues,expenses,andnetincomeornetlossforaspecificperiod,whichreflectstheresultsofitsoperations.Thebalancesheetshowsthefinancialpositionataspecificpointintime,thestatementofcashflowsshowscashinflowsandoutflows,andthestatementofowner'sequityshowsthechangesinowner'sequity.11.Depreciationis:A.TheprocessofcreatingacashfundtoreplaceanassetattheendofitsusefullifeB.TheallocationofthecostofalongtermassetoveritsusefullifeC.ThedecreaseinthemarketvalueofanassetovertimeD.AnincreaseinthevalueofanassetduetoinflationAnswer:B.Depreciationisanaccountingmethodusedtoallocatethecostofalongtermasset(suchasbuildings,machinery)overitsusefullife.Itisnotrelatedtocreatingacashfund,anditisbasedoncostallocationratherthanmarketvaluechangesorinflation.12.Acontraassetaccount:A.HasanormaldebitbalanceB.IsaddedtotherelatedassetaccountonthebalancesheetC.ReducesthebalanceoftherelatedassetaccountonthebalancesheetD.IncreasesthebalanceoftherelatedassetaccountonthebalancesheetAnswer:C.Acontraassetaccount,suchasAccumulatedDepreciation,hasanormalcreditbalanceandissubtractedfromtherelatedassetaccountonthebalancesheettoshowthenetbookvalueoftheasset.13.Whichofthefollowingisarevenueaccount?A.AccountsReceivableB.SalesRevenueC.CostofGoodsSoldD.PrepaidRentAnswer:B.SalesRevenueisarevenueaccountthatrepresentstheincomeearnedbyacompanyfromsellingitsgoodsorservices.AccountsReceivableisanassetaccount,CostofGoodsSoldisanexpenseaccount,andPrepaidRentisanassetaccount.14.Theclosingprocess:A.Transfersthebalancesofrevenue,expense,anddividendaccountstotheretainedearningsaccountB.PreparestheaccountsforthenextaccountingperiodC.EnsuresthattherevenueandexpenseaccountshavezerobalancesatthestartofthenextperiodD.AlloftheaboveAnswer:D.Theclosingprocessinvolvestransferringthebalancesoftemporaryaccounts(revenue,expense,anddividendaccounts)totheretainedearningsaccount.Thispreparestheaccountsforthenextaccountingperiodandensuresthatrevenueandexpenseaccountsstartwithzerobalances.15.Acompanyhadbeginningretainedearningsof$100,000,netincomeof$20,000,anddividendsof$5,000.Whatistheendingretainedearnings?A.$100,000B.$115,000C.$120,000D.$125,000Answer:B.TheformulaforcalculatingendingretainedearningsisBeginningRetainedEarnings+NetIncomeDividends.So,$100,000+$20,000$5,000=$115,000.16.Thestatementofcashflowsclassifiescashflowsintothreecategories:A.Operating,investing,andfinancingactivitiesB.Revenue,expense,anddividendactivitiesC.Asset,liability,andequityactivitiesD.Current,noncurrent,andlongtermactivitiesAnswer:A.Thestatementofcashflowsclassifiescashflowsintooperatingactivities(relatedtothecorebusinessoperations),investingactivities(relatedtotheacquisitionanddisposaloflongtermassets),andfinancingactivities(relatedtoraisingandrepayingcapital).17.Cashreceivedfromcustomersisanexampleof:A.OperatingcashinflowB.InvestingcashinflowC.FinancingcashinflowD.NoncashtransactionAnswer:A.Cashreceivedfromcustomersispartofthecompany'snormaloperatingactivities,soitisanoperatingcashinflow.18.Whichofthefollowingisaninvestingactivityonthestatementofcashflows?A.IssuingcommonstockB.PayingdividendsC.BuyinganewbuildingD.BorrowingmoneyfromabankAnswer:C.Buyinganewbuildingisaninvestmentinalongtermasset,whichisaninvestingactivity.Issuingcommonstockandborrowingmoneyfromabankarefinancingactivities,andpayingdividendsisalsoafinancingactivity.19.Thecurrentratioiscalculatedas:A.CurrentAssets/CurrentLiabilitiesB.CurrentLiabilities/CurrentAssetsC.TotalAssets/TotalLiabilitiesD.TotalLiabilities/TotalAssetsAnswer:A.Thecurrentratiomeasuresacompany'sabilitytopayoffitsshorttermobligations.Itiscalculatedbydividingcurrentassetsbycurrentliabilities.20.Ahighcurrentratiomayindicate:A.AcompanyhastoomuchinventoryB.AcompanyisnotusingitscurrentassetsefficientlyC.AcompanyhasgoodshorttermliquidityD.AlloftheaboveAnswer:D.Ahighcurrentratiocanbeduetohavingtoomuchinventory(whichisacurrentasset),notusingcurrentassetsefficiently,oritcanalsomeanthatthecompanyhasgoodshorttermliquidityasithasmorecurrentassetstocovercurrentliabilities.21.Thedebttoequityratioiscalculatedas:A.TotalDebt/TotalEquityB.TotalEquity/TotalDebtC.CurrentDebt/CurrentEquityD.CurrentEquity/CurrentDebtAnswer:A.Thedebttoequityratioshowstheproportionofacompany'sfinancingthatcomesfromdebtcomparedtoequity.Itiscalculatedbydividingtotaldebtbytotalequity.22.Ifacompanyhasadebttoequityratioof2,itmeans:A.ThecompanyhastwiceasmuchequityasdebtB.ThecompanyhastwiceasmuchdebtasequityC.Thecompany'sdebtandequityareequalD.ThecompanyhasnodebtAnswer:B.Adebttoequityratioof2indicatesthattheamountofdebtistwicetheamountofequity.23.Theinventoryturnoverratioiscalculatedas:A.CostofGoodsSold/AverageInventoryB.AverageInventory/CostofGoodsSoldC.SalesRevenue/AverageInventoryD.AverageInventory/SalesRevenueAnswer:A.Theinventoryturnoverratiomeasureshowmanytimesacompanysellsandreplacesitsinventoryduringaperiod.Itiscalculatedbydividingthecostofgoodssoldbytheaverageinventory.24.Ahighinventoryturnoverratiomayindicate:A.ThecompanyissellingitsinventoryquicklyB.ThecompanyhastoomuchinventoryC.ThecompanyishavingdifficultysellingitsinventoryD.Thecompany'sinventoryisobsoleteAnswer:A.Ahighinventoryturnoverratiomeansthatthecompanyisabletosellitsinventoryrapidly,whichisgenerallyasignofgoodinventorymanagement.25.Theaccountsreceivableturnoverratioiscalculatedas:A.NetCreditSales/AverageAccountsReceivableB.AverageAccountsReceivable/NetCreditSalesC.TotalSales/AverageAccountsReceivableD.AverageAccountsReceivable/TotalSalesAnswer:A.Theaccountsreceivableturnoverratiomeasureshowefficientlyacompanycollectsitsaccountsreceivable.Itiscalculatedbydividingnetcreditsalesbytheaverageaccountsreceivable.26.Inaperpetualinventorysystem:A.InventoryiscountedattheendoftheaccountingperiodB.CostofgoodssoldisrecordedonlyattheendoftheaccountingperiodC.InventoryrecordsarecontinuouslyupdatedtoshowthequantityandcostofinventoryonhandD.ThereisnoneedtokeeptrackofinventoryquantitiesAnswer:C.Inaperpetualinventorysystem,inventoryrecordsareupdatedinrealtimeaspurchasesandsalesoccur.Thisallowsforcontinuoustrackingofthequantityandcostofinventoryonhand.27.Inaperiodicinventorysystem:A.InventoryrecordsareupdatedcontinuouslyB.CostofgoodssoldiscalculatedattheendoftheaccountingperiodC.ThereisnoneedtocountinventoryphysicallyD.PurchasesofinventoryarenotrecordedAnswer:B.Inaperiodicinventorysystem,inventoryisphysicallycountedattheendoftheaccountingperiod,andthecostofgoodssoldiscalculatedusingtheformula:BeginningInventory+PurchasesEndingInventory.28.TheFIFO(FirstIn,FirstOut)methodofinventorycostingassumesthat:A.ThefirstgoodspurchasedarethefirstgoodssoldB.ThelastgoodspurchasedarethefirstgoodssoldC.GoodsaresoldinarandomorderD.GoodsaresoldbasedontheiraveragecostAnswer:A.TheFIFOmethodassumesthattheoldestinventoryitems(thefirstonespurchased)arethefirstonestobesold.29.TheLIFO(LastIn,FirstOut)methodofinventorycostingassumesthat:A.ThefirstgoodspurchasedarethefirstgoodssoldB.ThelastgoodspurchasedarethefirstgoodssoldC.GoodsaresoldinarandomorderD.GoodsaresoldbasedontheiraveragecostAnswer:B.TheLIFOmethodassumesthatthemostrecentlypurchasedinventoryitems(thelastonesin)arethefirstonestobesold.30.Duringaperiodofrisingprices,theFIFOmethodwillresultin:A.HighercostofgoodssoldandlowernetincomeB.LowercostofgoodssoldandhighernetincomeC.HighercostofgoodssoldandhighernetincomeD.LowercostofgoodssoldandlowernetincomeAnswer:B.Inaperiodofrisingprices,undertheFIFOmethod,thecostofgoodssoldwillbebasedonthelowercost,earlierpurchasedinventory.Thisresultsinalowercostofgoodssoldandhighernetincomecomparedtoothermethods.31.Duringaperiodofrisingprices,theLIFOmethodwillresultin:A.HighercostofgoodssoldandlowernetincomeB.LowercostofgoodssoldandhighernetincomeC.HighercostofgoodssoldandhighernetincomeD.LowercostofgoodssoldandlowernetincomeAnswer:A.Inaperiodofrisingprices,theLIFOmethodusesthehighercost,recentlypurchasedinventoryforcostofgoodssold.Thisleadstoahighercostofgoodssoldandlowernetincome.32.Theweightedaveragecostmethodofinventorycostingcalculatesthecostofgoodssoldandendinginventorybasedon:A.ThecostofthefirstgoodspurchasedB.ThecostofthelastgoodspurchasedC.TheaveragecostofallgoodsavailableforsaleD.ThemarketvalueoftheinventoryAnswer:C.Theweightedaveragecostmethodcalculatestheaveragecostofallgoodsavailableforsaleduringtheperiodandusesthisaveragecosttodeterminethecostofgoodssoldandendinginventory.33.Apatentisanexampleof:A.AcurrentassetB.AtangibleassetC.AnintangibleassetD.AliabilityAnswer:C.Apatentisanintangibleassetasitrepresentsalegalrightthathasvaluebuthasnophysicalsubstance.34.Goodwillisrecognized:A.WhenacompanypurchasesanothercompanyatapricehigherthanthefairvalueofitsnetidentifiableassetsB.WhenacompanydevelopsitsownbrandnameovertimeC.WhenacompanyhasahighqualityworkforceD.WhenacompanyhasalargeamountofinventoryAnswer:A.Goodwillisanintangibleassetthatisrecognizedwhenonecompanyacquiresanothercompanyforapricegreaterthanthefairvalueoftheacquiredcompany'snetidentifiableassets.35.Amortizationis:A.TheprocessofallocatingthecostofatangibleassetoveritsusefullifeB.TheprocessofallocatingthecostofanintangibleassetoveritsusefullifeC.TheprocessofincreasingthevalueofanassetovertimeD.TheprocessofdecreasingthevalueofaliabilityovertimeAnswer:B.Amortizationissimilartodepreciationbutisusedforintangibleassets.Itistheprocessofallocatingthecostofanintangibleassetoveritsusefullife.36.Abondis:A.AnequitysecurityB.AdebtsecurityC.AtypeofinventoryD.AtypeoffixedassetAnswer:B.Abondisadebtinstrumentissuedbyacompanyorgovernmenttoborrowmoney.Investorswhobuybondsarelendingmoneytotheissuerandwillreceiveinterestpaymentsandtheprincipalamountatmaturity.37.Thefacevalueofabondis:A.TheamountofinterestpaidonthebondeachyearB.ThepriceatwhichthebondiscurrentlytradinginthemarketC.TheamountthatthebondissuerwillpaythebondholderatmaturityD.ThemarketinterestrateatthetimethebondisissuedAnswer:C.Thefacevalue(alsocalledparvalue)ofabondistheamountthatthebondissuerisobligatedtopaythebondholderwhenthebondmatures.38.Ifabondisissuedatapremium,itmeans:A.Thebond'sissuepriceishigherthanitsfacevalueB.Thebond'sissuepriceislowerthanitsfacevalueC.Thebond'sissuepriceisequaltoitsfacevalueD.ThebondhasnofacevalueAnswer:A.Whenabondisissuedatapremium,theissuepriceisgreaterthanthefacevalue.Thisusuallyoccurswhenthestatedinterestrateonthebondishigherthanthemarketinterestrate.39.Ifabondisissuedatadiscount,itmeans:A.Thebond'sissuepriceishigherthanitsfacevalueB.Thebond'sissuepriceislowerthanitsfacevalueC.Thebond'sissuepriceisequaltoitsfacevalueD.ThebondhasnofacevalueAnswer:B.Abondissuedatadiscounthasanissuepricethatislessthanthefacevalue.Thistypicallyhappenswhenthestatedinterestrateonthebondislowerthanthemarketinterestrate.40.Thestraightlinemethodofamortizingbondpremiumordiscount:A.AllocatesanequalamountofpremiumordiscounttoeachinterestperiodB.AllocatesadecreasingamountofpremiumordiscounttoeachinterestperiodC.AllocatesanincreasingamountofpremiumordiscounttoeachinterestperiodD.DoesnotallocatethepremiumordiscountoverthelifeofthebondAnswer:A.Thestraightlinemethodofamortizingbondpremiumordiscountevenlydistributesthetotalpremiumordiscountoverthenumberofinterestperiodsofthebond'slife.41.Stockholders'equityincludes:A.Commonstock,retainedearnings,anddividendsB.Commonstock,retainedearnings,andtreasurystockC.Accountspayable,commonstock,andretainedearningsD.Bondspayable,commonstock,andretainedearningsAnswer:B.Stockholders'equityconsistsofcommonstock(theamountinvestedbyshareholders),retainedearnings(accumulatedprofits),andtreasurystock(stockthatthecompanyhasrepurchased).Dividendsaredistributionsofearningsandreduceretainedearnings.Accountspayableisaliability,andbondspayableisalsoaliability.42.Theparvalueofcommonstockis:A.ThemarketpriceofthestockonthedayitisissuedB.TheamountthatthestockholderwillreceivewhenthecompanyisliquidatedC.AnarbitraryamountassignedtothestockwhenitisauthorizedD.TheamountofdividendsthatthestockholderwillreceiveeachyearAnswer:C.Theparvalueofcommonstockisanarbitraryvalueassignedtothestockwhenthecompany'scharterauthorizestheissuanceofthestock.Ithaslittlerelationtothemarketpriceortheamountreceivedinliquidationordividends.43.Treasurystockis:A.Stockthathasbeenissuedandisheldbythecompany'sshareholdersB.StockthathasbeenissuedandthenrepurchasedbythecompanyC.StockthathasneverbeenissuedD.StockthatisissuedtoemployeesasabonusAnswer:B.Treasurystockrepresentssharesofacompany'sownstockthathavebeenissuedandthenboughtbackbythecompany.44.Whenacompanyissuescommonstockforcash,theeffectontheaccountingequationis:A.Assetsincrease,andliabilitiesincreaseB.Assetsincrease,andstockholders'equityincreasesC.Assetsdecrease,andstockholders'equitydecreasesD.Liabilitiesincrease,andstockholders'equitydecreasesAnswer:B.Whenacompanyissuescommonstockforcash,cash(anasset)increases,andcommonstock(acomponentofstockholders'equity)alsoincreases.45.Thestatementofretainedearningsshows:A.ThechangesinretainedearningsoveraperiodoftimeB.ThefinancialpositionofacompanyataspecificpointintimeC.ThecashinflowsandoutflowsofacompanyoveraperiodoftimeD.TherevenuesandexpensesofacompanyoveraperiodoftimeAnswer:A.Thestatementofretainedearningsreportsthebeginningbalanceofretainedea