会计学基本知识快速检验英文版文档格式.docx

会计学基本知识快速检验英文版文档格式.docx

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7）Asageneralrule,revenuesshouldnotberecognizedintheaccountingrecordsuntilitisreceivedincash. 

8）Accruedexpensesattheendofoneaccountingperiodareexpectedtoresultincashpaymentsinafutureperiod. 

9）Theideathatabusinesswillcontinuetooperateuntilitcansellitsassetstopayitscreditorsunderliesthegoing-concernassumption. 

10）Themonetaryunitassumptionmeansthatallinternationaltransactionsmustbeexpressedindollars. 

11）TheInternationalAccountingStandardsBoard（IASB）isthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic. 

12）Expensesdecreaseequityandarethecostsofassetsorservicesusedtoearnrevenues. 

13）Acompanymightprovideaserviceorproductoncredit."

Oncredit"

impliesthatthecashpaymentwilloccuronalaterdate. 

14）Eachadjustingentryaffectsonlyoneormoreincomestatementaccountandnevercash. 

15）Thelegitimateclaimsofabusiness'

screditorstakeprecedenceovertheclaimsofthebusinessowner. 

16）Underthecashbasisofaccounting,noadjustmentsaremadeforprepaid,unearned,andaccrueditems. 

17）Fromanaccountingperspective,aneventisahappeningthataffectsanentity'

saccountingequation,butcannotbemeasured. 

18）Theincomestatementisafinancialstatementthatshowsrevenuesearnedandexpensesincurredduringaspecifiedperiodoftime. 

19）ChuckTaylorwithdrew$6,000incashfromFastForward.Thisamountshouldbeincludedasanexpenseontheincomestatement. 

20）Sourcedocumentsprovideevidenceofbusinesstransactionsandarethebasisforaccountingentries. 

21）Itemssuchassalestickets,bankstatements,checks,andpurchaseordersaresourcedocuments. 

22）Itisnotnecessarytokeepseparateaccountsforallitemsofimportanceforbusinessdecisions. 

23）Closingentriesarenecessarysothatowner'

scapitalwillbegineachperiodwithazerobalance. 

24）Cashwithdrawnbytheownerofaproprietorshipshouldbetreatedasanexpenseofthebusiness. 

25）Whenacompanyprovidesservicesforwhichcashwillnotbereceiveduntilsomefuturedate,thecompanyshouldrecordtheamountreceivedasunearnedrevenuefortheamountchargedtothecustomer. 

26）Doubleentryaccountingrequiresthateachtransactionaffect,andberecordedin,atleasttwoaccounts. 

27）Assetaccountsnormallyhavecreditbalancesandrevenueaccountsnormallyhavedebitbalances. 

28）Atransactionthatdecreasesanassetaccountandincreasesaliabilityaccountmustalsoaffectoneormoreotheraccounts. 

29）Adjustingentriesareusedtobringassetorliabilityaccountstotheirproperamountandupdatetherelatedexpenseorrevenueaccount. 

30）Whenacompanybillsacustomerfor$600forservicesrendered,thejournalentrytorecordthistransactionwillincludea$600debittoServicesRevenue. 

31）Thejournalisknownasthebookoffinalentrybecausefinancialstatementsarepreparedfromit. 

32）Theclosingprocesstakesplaceafterfinancialstatementshavebeenprepared. 

33）Atrialbalancethatbalancesisnotproofofcompleteaccuracyinrecordingtransactions.

34）Closingentriesaredesignedtotransfertheend-of-periodbalancesintherevenueaccounts,theexpenseaccounts,andthewithdrawalsaccounttoowner'

scapital. 

35）Ifcashwasincorrectlydebitedfor$100insteadofcorrectlycreditedfor$100,thecashaccountisoutofbalanceby$100. 

36）Adjustingentriesresultinabettermatchingofrevenuesandexpensesfortheperiod.

37）Thematchingprinciplerequiresthatexpensesgetrecordedinthesameaccountingperiodastherevenuesthatareearnedasaresultoftheexpenses,notwhencashispaid. 

38）OnOctober15,acompanyreceived$15,000cashasadownpaymentonaconsultingcontract.TheamountwascreditedtoUnearnedConsultingRevenue.ByOctober31,10%oftheservicesrequiredbythecontractwerecompleted.Thecompanywillrecordconsultingrevenueof$1,500fromthiscontractforOctober. 

39）Closingrevenueandexpenseaccountsattheendoftheaccountingperiodservestomaketherevenueandexpenseaccountsreadyforuseinthenextperiod. 

40）Accruedexpensesreflecttransactionswherecashispaidbeforearelatedexpenseisrecognized. 

41）Beforeanadjustingentryismadetorecognizethecostofexpiredinsurancefortheperiod,PrepaidInsuranceandInsuranceExpensearebothoverstated. 

42）Acompanypurchased$6,000worthofsuppliesinAugustandrecordedthepurchaseintheSuppliesaccount.OnAugust31,thefiscalyear-end,thesuppliescountequaled$3,200.Theadjustingentrywouldincludea$2,800debittoSupplies. 

43）Inpreparingstatementsfromtheadjustedtrialbalance,thebalancesheetmustbepreparedfirst. 

44）Acompanyperforms20daysworkona30-daycontractbeforetheendoftheyear.Thetotalcontractisvaluedat$6,000andpaymentisnotdueuntilthecontractisfullycompleted.Theadjustingentryincludesa$4,000credittounearnedrevenue. 

45）Anunadjustedtrialbalanceisalistofaccountsandbalancespreparedbeforeadjustmentsarerecordedandposted. 

46）Financialstatementscanbeprepareddirectlyfromtheinformationintheadjustedtrialbalance. 

47）IncomeSummaryisatemporaryaccountonlyusedfortheclosingprocess. 

48）Revenueaccountsshouldbegineachaccountingperiodwithzerobalances. 

49）Thelastfourstepsintheaccountingcycleincludepreparingtheadjustedtrialbalance,preparingfinancialstatementsandrecordingclosingandadjustingentries. 

50）Whenexpensesexceedrevenues,thereisanetlossandtheIncomeSummaryaccountwouldhaveacreditbalance. 

51）Apost-closingtrialbalanceisalistofpermanentaccountsandtheirbalancesfromtheledgerafterallclosingentriesarejournalizedandposted. 

PARTIIMULTIPLE-CHOICE

1.Theprimaryobjectiveoffinancialaccountingis:

A. 

Toservethedecision-makingneedsofinternalusers.

B. 

Toprovidefinancialstatementstohelpexternalusersanalyzeanorganization'

sactivities.

C. 

Tomonitorandcontrolcompanyactivities.

D. 

Toprovideinformationonboththecostsandbenefitsoflookingafterproductsandservices.

E. 

Toknowwhat,when,andhowmuchtoproduce.

2.Internalusersofaccountinginformationinclude:

Shareholders.B. 

Managers.C. 

Lenders.D. 

Suppliers.E. 

Customers.

3.Acorporation:

Isabusinesslegallyseparatefromitsowners.B. 

IscontrolledbytheFASB.

Hasshareholderswhohaveunlimitedliabilityfortheactsofthecorporation.

Isthesameasalimitedliabilitypartnership.E. 

Allofthese.

4.Theaccountingassumptionthatrequireseverybusinesstobeaccountedforseparatelyfromotherbusinessentities,includingitsownerorownersisknownasthe:

Objectivityprinciple.B. 

Businessentityassumption.C. 

Going-concernassumption.

Revenuerecognitionprinciple.E. 

Costprinciple.

5.Therulethatrequiresfinancialstatementstoreflecttheassumptionthatthebusinesswillcontinueoperatinginsteadofbeingclosedorsold,unlessevidenceshowsthatitwillnotcontinue,isthe:

Going-concernprinciple.B. 

Businessentityprinciple.C. 

Objectivityprinciple.

CostPrinciple.E. 

Monetaryunitprinciple.

6.Ifaparceloflandthatwasoriginallyacquiredfor$85,000isofferedforsaleat$150,000,isassessedfortaxpurposesat$95,000,isrecognizedbyitspurchasersaseasilybeingworth$140,000,andissoldfor$137,000,thelandshouldberecordedinthepurchaser'

sbooksat:

$95,000.B. 

$137,000.C. 

$138,500.D. 

$140,000.E. 

$150,000.

7.Toincludethepersonalassetsandtransactionsofabusiness'

sownerintherecordsandreportsofthebusinesswouldbeinconflictwiththe:

Realizationprinciple.C. 

Businessentityprinciple.

Going-concernprinciple.E. 

Revenuerecognitionprinciple.

8.Thequestionofwhenrevenueshouldberecognizedontheincomestatement（accordingtoGAAP）isaddressedbythe:

Revenuerecognitionprinciple.B. 

Going-concernprinciple.C. 

Businessentityprinciple.E. 

9.OnDecember15,2007,MyersLegalServicessigneda$50,000contractwithaclienttoprovidelegalservicestotheclientin2008.WhichaccountingprinciplewouldrequireMyersLegalServicestorecordthelegalfeesrevenuein2008andnot2007?

MonetaryunitprincipleB. 

Going-concernprincipleC. 

Costprinciple

BusinessentityprincipleE. 

Revenuerecognitionprinciple

10.Apartnership:

Isalsocalledasoleproprietorship.B. 

Hasunlimitedliability.C. 

Hasownerscalledshareholders.

Hastohaveawrittenagreementinordertobelegal.E. 

Isalegalorganizationseparatefromitsowners.

11.Accordingtogenerallyacceptedaccountingprinciples,acompany'

sbalancesheetshouldshowthecompany'

sassetsat:

Thecashequivalentvalueof