基础会计英文版复习参考题Word格式.docx

基础会计英文版复习参考题Word格式.docx

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Thegoingconcernprincipleassumesthatthebusinesswillcontinueindefinitely. 

4. 

Notespayableandaccountspayablearewrittenpromisestopayanamountowedbyacertaindate.Notespayablegenerallyhaveinterestbutaccountspayablegenerallydonot. 

5. 

Anetprofitresultsfromhavingmorerevenuesthanliabilities. 

6. 

Thesaleofadditionalsharesofcapitalstockwillcausetreasurystocktoincrease. 

7. 

Articulationbetweenthefinancialstatementsmeansthattheyrelatecloselytoeachother. 

15. 

Therealizationprinciplestatesthattheactivitiesofanentityshouldbekeptseparatefromthoseofitsowner. 

16. 

Theentityprinciplestatesthattheaffairsoftheownersarenotpartofthefinancialoperationsofabusinessentityandshouldbeseparated. 

17. 

Theaccountingequationmaybestatedas"

assetsminusliabilitiesequalsowners'

equity."

18. 

Atransactionthatcausesanincreaseinanassetmayalsocauseadecreaseinanotherasset,anincreaseinaliability,oranincreaseinowners'

equity. 

19. 

Thecollectionofanaccountreceivablewillcausetotalassetstodecrease. 

20. 

Thepaymentofaliabilitycausesanincreaseinowners'

21. 

Whenabusinessborrowsmoneyfromabank,theimmediateeffectisanincreaseintotalassetsandadecreaseinliabilitiesorowners'

22. 

Thepurchaseofanassetsuchasofficeequipment,forcashwillcauseowners'

equitytodecrease. 

23. 

Theownerofasoleproprietorshipispersonallyliableforthedebtsofthebusiness,whereasthestockholdersofacorporationarenotpersonallyliableforthedebtsofthebusiness. 

24. 

Ifacompanypurchasesequipmentforcash,itstotalassetswillincrease. 

25. 

Ifacompanypurchasesequipmentbyissuinganotepayable,itstotalassetswillnotchange. 

26. 

Itisnotunusualforanentitytoreportasignificantincreaseincashfromoperatingactivities,butadecreaseinthetotalamountofcash. 

27. 

Thecashflowstatementprovidesalinkbetweentwobalancesheetsbyshowinghownetincome（orloss）haschangedowners'

equityfromonebalancesheetdatetothenext. 

28. 

AccordingtoSarbanes-Oxley,internalcontrolsmustbeauditedbythesameaccountingfirmthatauditsthefinancialstatements. 

29. 

ThePublicCompanyAccountingOversightBoardwascreatedbytheAmericanInstituteofCPAstooverseethepublicaccountingprofession. 

30. 

Themajoroutgrowthfrombusinessfailuresandallegationsoffraudulentfinancialreportingduringthe1990'

swasthepassageoftheSecuritiesandExchangeAct. 

Chapter02BasicFinancialStatementsAnswerKey

True/FalseQuestions

TRUE

AACSB:

ReflectiveThinking

AICPABB:

Legal

AICPAFN:

Reporting

LearningObjective:

2

8

CriticalThinking

Measurement

1

ResourceManagement

4

FALSE

3

5

7

8. 

Limitedliabilitymeansthatownersofabusinessareonlyliableforthedebtsofthebusinessuptotheamountstheycanafford. 

9. 

Inabusinessorganizedasacorporation,itisnotnecessarytolisttheequityofeachstockholderonthebalancesheet. 

10. 

Totalassetsalwaysequaltotalliabilitiesplustotalowners'

11. 

Acashflowstatementreportsrevenueandexpenseactivitiesforaspecifictimeperiodsuchasonemonthoroneyear. 

6

12. 

Anybusinesseventthatmightaffectthefutureprofitabilityofabusinessshouldbereportedinitsbalancesheet. 

13. 

Totalassetsplustotalliabilitiesequalstotalowners'

14. 

Thepracticeofshowingassetsonthebalancesheetattheircostratherthanattheircurrentmarketvalueisexplainedinpartbythefactthatcostissupportedbyobjectiveevidencethatcanbeverifiedbyindependentexperts. 

AccordingtoSarbanes-Oxley,