会计英语相关习题集

《会计英语相关习题集》由会员分享，可在线阅读，更多相关《会计英语相关习题集（67页珍藏版）》请在装配图网上搜索。

1、 Chapter 01Financial Statements and Business Decisions True / False Questions1.Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers.TrueFalse2.Assets on the balance sheet are recorded at market value or replace

2、ment cost.TrueFalse3.In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other economic affairs of its owners.TrueFalse4.The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is gener

3、ally the period in which the cash is collected.TrueFalse5.Total assets are $70,000, total liabilities, $40,000 and contributed capital is $20,000; therefore, retained earnings are $15,000.TrueFalse6.The payment of a cash dividend to stockholders increases stockholders equity.TrueFalse7.The accountin

4、g model for the balance sheet is: Assets + Liabilities = Stockholders Equity.TrueFalse8.A decision maker who wants to understand a panys financial statements must carefully read the notes to the financial statements because the notes provide useful supplemental information.TrueFalse9.The financial s

5、tatement that shows an entitys economic resources and its liabilities is the statement of cash flows.TrueFalse10.panies prepare financial statements at the end of each year and more often as needed.TrueFalse11.A note payable is a borrowing instrument that generally does not involve the payment of in

6、terest.TrueFalse12.The amount of cash paid by a business for office utilities would be reported on the statement of cash flows as an operating activity.TrueFalse13.The ine statement equation is Expenses - Revenues = Net Ine.TrueFalse14.Generally accepted accounting principles almost never change onc

7、e created.TrueFalse15.The Financial Accounting Standards Board (FASB) is an agency of the federal government that establishes generally accepted accounting principles for businesses.TrueFalse16.Since 2002, there has been substantial movement to develop international financial reporting standards.Tru

8、eFalse17.An audit guarantees that the financial statements are free of all misstatements.TrueFalse18.An auditor who fails to detect a material misstatement of a businesss financial statements may be sued by anyone who suffered a loss from relying on the financial statements.TrueFalse19.In terms of e

9、conomic importance, partnerships are the dominant form of organization in the U.S. because of their ease of formation.TrueFalse20.One of the advantages of a corporation when pared to a partnership is the limited liability of the owners.TrueFalseMultiple Choice Questions21.The primary purpose of the

10、balance sheet is toA.measure the net ine of a business up to a particular point in time.B.report the difference between cash inflows and cash outflows for the period.C.report the financial position of the reporting entity at a particular point in time.D.report the current value of the business.22.Th

11、e Beta Corporation had 2009 revenues of $200,000, expenses of $140,000, and an ine tax rate of 30 percent. Net ine after taxes would beA.$60,000.B.$18,000.C.$42,000.D.$48,000.23.Atlantic Corporation reported the following amounts at the end of the first year of operations: contributed capital $100,0

12、00; sales revenue $400,000; total assets $300,000; $20,000 dividends; and total liabilities $160,000. Retained earnings and total expenses would beA.retained earnings $40,000 and expenses $340,000.B.retained earnings $60,000 and expenses $320,000.C.retained earnings $140,000 and expenses $240,000.D.

13、retained earnings $160,000 and expenses $220,000.24.The financial statement that reports the financial position of a business is theA.ine statement.B.balance sheet.C.statement of cash flows.D.footnotes to the financial statements.25.Which of the following reports the cash inflows, cash outflows, and

14、 change in cash for period?A.Ine statement.B.Balance sheet.C.Statement of cash flows.D.Auditors report.26.For a business, a supplierA.is a pany or individual that owns shares of the business.B.is a pany or individual to whom the business sells goods or services.C.provides goods and services used by

15、the business.D.makes loans to the pany to help finance its activities.27.For a business, an example of an internal decision maker isA.a loan officer at a bank.B.a supplier who sells goods to the pany on account.C.one of the businesss long-term customers.D.one of the businesss managers.28.Financial a

16、ccountingA.provides information primarily for external decision makers.B.is required for corporations but probably would not be done by other business entities.C.provides information primarily for the use of managers of the pany.D.has been practiced in this country for approximately the last 15 year

17、s.29.Accounting information developed primarily for internal decision makers is calledA.management accounting.B.risk accounting.C.auditing.D.financial accounting.30.What financial statement would you look at to determine the dividends declared by a business?A.ine statement.B.statement of retained ea

18、rnings.C.statement of cash flows.D.balance sheet.31.Which of Chaos financial statements would you look at to determine whether Chao will be able to pay for the goods when payment is due in 30 days?A.ine statement.B.balance sheet.C.statement of retained earnings.D.statement of cash flows.32.Which of

19、the following is not considered to be a liability?A.accounts payableB.notes payableC.wages payableD.cost of goods sold33.A businesss assets areA.equal to liabilities minus stockholders equity.B.the economic resources of the business.C.Reported at current cost.D.Reported on the ine statement.34.Asset

20、s for a particular business might includeA.cash, accounts payable, and notes payable.B.cash, retained earnings, and accounts receivable.C.cash, accounts receivable, and inventory.D.inventories, property and equipment, and contributed capital.35.A businesss balance sheet cannot be used to accurately

21、predict what the business might be sold for becauseA.it identifies all the revenues and expenses of the business.B.assets are generally listed on the balance sheet at their historical cost, not their current value.C.it gives the results of operations for the current period.D.some of the assets and l

22、iabilities on the balance sheet may actually be those of another entity.36.Liabilities and stockholders equity areA.sources of financing for economic resources.B.economic resources used by a business entity.C.increases in assets resulting from profitable operations.D.shown on the ine statement in ca

23、lculating net ine.37.The accounting equation (balance sheet equation) isA.Assets + Liabilities = Stockholders equity.B.Assets + Stockholders equity = Liabilities.C.Assets = Liabilities + Stockholders equity.D.Revenues - Expenses = Net ine.38.Downard Bank, in deciding whether to make a loan to Rodney

24、 pany, would be interested in the amount of liabilities Rodney has on its balance sheet becauseA.the liabilities represent resources that could be used to repay the loan.B.if Rodney already has many other obligations, it might not be able to repay the loan.C.existing liabilities give an indication o

25、f how profitable Rodney has been in the past.D.Downard would be interested in the amount of Rodneys assets but not the amount of liabilities.39.The two categories of stockholders equity usually found on the balance sheet of a corporation areA.contributed capital and long-term liabilities.B.contribut

26、ed capital and property, plant, and equipment.C.retained earnings and notes payable.D.contributed capital and retained earnings.40.Which financial statement for a business would you look at to determine the panys earnings performance during an accounting period?A.balance sheet.B.statement of retaine

27、d earnings.C.ine statement.D.statement of cash flows.41.The ine statement equation isA.Assets - Liabilities = Stockholders Equity.B.Assets + Stockholders equity = Liabilities.C.Net ine = Revenues - Expenses.D.Expenses - Net ine = Revenues.42.Most businesses earn revenuesA.when they collect accounts

28、receivable.B.through sales of goods or services to customers.C.by borrowing money from a bank.D.by selling shares of stock to stockholders.43.Accounts receivable represents:A.amounts which are owed to the pany by its customers resulting from credit sales.B.amounts which are owed by the pany to its s

29、uppliers for past purchases.C.amounts which have been borrowed to finance operations.D.amounts which are due to stockholders.44.InventoriesA.are an asset.B.result from paying for a product that has now been sold to a customer.C.will result in a liability being charged sometime in the future.D.are an

30、 expense.45.The amount of revenue recognized in the ine statement by a pany that sells goods to customers would beA.the cash collected from customers during the current period.B.total sales, both cash and credit sales, for the period.C.total sales minus beginning amount of accounts receivable.D.the

31、amount of cash collected plus the beginning amount of accounts receivable.46.On January 1, 2009 Mammoth Corporation had retained earnings of $4,000,000. During 2009, they reported net ine of $750,000 and dividends of $100,000. What is the amount of Mammoths retained earnings at the end of 2009?A.$4,

32、000,000B.$4,450,000C.$4,650,000D.$4,850,00047.What are the categories of cash flows that appear on a statement of cash flows?A.cash flows from investing, financing, and service activitiesB.cash flows from operating, production, and internal activitiesC.cash flows from financing, production, and grow

33、th activitiesD.cash flows from operating, investing, and financing activities48.On the statement of cash flows, an amount paid for utilities would be classified asA.an operating activity.B.an investing activity.C.a financing activity.D.a production activity.49.A pany would report a net loss whenA.re

34、tained earnings decreased due to paying dividends to stockholders.B.its assets decreased during an accounting period.C.its liabilities increased during an accounting period.D.its expenses exceeded its revenues for an accounting period.50.The amount of insurance expense reported on the ine statement

35、isA.the amount of cash paid for insurance in the current period.B.the amount of cash paid for insurance in the current period less any unpaid insurance at the end of the period.C.the amount of insurance used up (incurred) in the current period to help generate revenue.D.an increase in net ine.51.Wha

36、t events cause changes in a corporations retained earnings?A.Net ine or net loss and declaration of dividends.B.Declaration of dividends and issuance of stock to new stockholders.C.Net ine, issuance of stock, and borrowing from a bank.D.Declaration of dividends and purchase of new machinery.52.The o

37、perating activities section is often believed to be the most important part of a statement of cash flows becauseA.it gives the most information about how operations have been financed.B.it shows the dividends that have been paid to stockholders.C.it indicates a panys ability to generate cash from sa

38、les to meet current cash payments for goods or services.D.it shows the net increase or decrease in cash during the period.53.If you wanted to know what accounting rules a pany follows related to its inventory, where would you look?A.the balance sheetB.the ine statementC.the notes to the financial st

39、atementsD.the headings to the financial statements54.At the beginning of 2009, Buck Corporation had assets of $540,000 and liabilities of $320,000. During the year, assets increased by $50,000 and liabilities decreased by $10,000. What was the total amount of stockholders equity at the end of 2009?A

40、.$220,000B.$280,000C.$380,000D.$500,00055.The term used for economic resources owned by an entity as a result of past transactions isA.assets.B.liabilities.C.revenues.D.retained earnings.56.How are the differing claims of creditors and investors recognized by a corporation?A.The claims of creditors

41、are liabilities; those of investors are assets.B.The claims of both creditors and investors are liabilities, but only the claims of investors are considered to be long term.C.The claims of creditors are liabilities; the claims of investors are recorded as stockholders equity.D.The claims of creditor

42、s and investors are considered to be essentially equivalent.57.In what order would the items on the balance sheet appear?A.assets, retained earnings, liabilities, contributed capitalB.contributed capital, retained earnings, liabilities, assetsC.assets, liabilities, contributed capital, retained earn

43、ingsD.contributed capital, assets, liabilities, retained earnings58.Which of the following would increase retained earnings?A.an increase to an expenseB.an increase to a revenueC.a cash dividendD.issuance of additional mon stock59.The ending retained earnings balance of Juans Mexican Restaurant chai

44、n increased by $3.2 million from the beginning of the year. The pany had declared a dividend of $1.3 million during the year. What was the net ine earned during the year?A.$1.9 millionB.$3.2 millionC.$4.5 billionD.There is not enough information given to determine net ine.60.Which of the following i

45、tems is an expense?A.Accounts PayableB.Cost of Goods SoldC.Accounts ReceivableD.Sales Revenue61.Which of the following activities would cause investors to overpay for the acquisition of a pany from its current owners?A.Overstated accounts payable and understated inventoryB.Understated revenues and o

46、verstated expensesC.Understated assets and overstated expensesD.Overstated accounts payable and overstated inventory62.The government regulatory agency that has the legal authority to prescribe financial reporting requirements for corporations that sell their securities to the public is theA.FASB.B.

47、FTC.C.SEC.D.APB.63.The part of the federal government that has broad powers to determine measurement rules for financial statements of public panies isA.the Internal Revenue Service.B.the Securities and Exchange mission.C.the General Accounting Office.D.the Supreme Court.64.Identify the potential ec

48、onomic consequences of the public learning a pany did not follow generally accepted accounting principles (GAAP).A.It could increase the stock price of the pany.B.It could increase management and employee bonuses.C.It could result in legal liability for the pany.D.It could increase a panys market sh

49、are.65.The nature of generally accepted accounting principles (GAAP) is important to large corporations becauseA.a change in GAAP will not likely affect the selling price of the panys stock.B.a change in GAAP will not likely affect the amount of bonuses paid to managers and employees.C.a change in G

50、AAP will not likely affect a corporations petitive position.D.a change in GAAP will likely affect a panys financial statements66.The International Accounting Standards Board has worked to develop global accounting standards known asA.generally accepted accounting principles.B.globally accepted finan

51、cial standards.C.international financial reporting standards.D.worldwide financial standards.67.Which of the following statements is true about the price earnings (P/E) ratio?A.It is a ratio of importance to creditors.B.A high P/E ratio indicates investors have little confidence in the future earnin

52、gs potential of the pany.C.The P/E ratio could be used to approximate the value investors would be willing to pay for the panys acquisition from existing owners.D.The P/E ratio is of value is estimating future dividend payments.68.Charlie pany bought Tolar pany for $2,000,000. If Tolars ine was unde

53、rstated by $10,000 and the P/E ratio is 5, how much should Charlie have paid for Tolar?A.$2,000,000B.$2,050,000C.$1,950,000D.$1,990,00069.What is another name for the P/E ratio?A.Price/earnings marginB.Price/earnings multipleC.Payment/equity marginD.Payment/equity multiple70.An examination of the fi

54、nancial statements of a business to ensure that they conform with generally accepted accounting principles is calledA.a certification.B.an audit.C.a verification.D.a validation.71.The purpose of an audit is toA.prove the accuracy of an entitys financial statements.B.lend credibility to an entitys fi

55、nancial statements.C.endorse the quality of leadership that managers provide for a corporation.D.establish that a corporations stock is a sound investment.72.Why do the managers of a corporation hire independent auditors?A.To guarantee annual and quarterly financial statements.B.To handle some perso

56、nnel issues and problems.C.To audit and report on the fairness of financial statement presentation.D.To lobby the FASB for changes in generally accepted accounting principles.73.The CPAs role in performing audits is important to our society becauseA.auditors provide direct financial advice to potent

57、ial investors.B.auditors have the primary responsibility for the information contained in financial statements.C.auditors issue reports on the accuracy of each financial transaction.D.an audit of financial statements helps investors and others to know that they can rely on the information presented

58、in the financial statements.74.Which of the following is NOT one of the three steps taken by a corporation to ensure the accuracy of its records?A.implementing a system of controlsB.hiring an independent auditorC.hiring a financial analystD.forming a mittee made up of board of directors members to o

59、versee the records75.Which of the following groups has primary responsibility for the information contained in the financial statements?A.the panys managementB.the panys auditorC.the panys investorsD.the SEC76.The private sector body recently given the primary responsibility to work out detailed aud

60、iting standards is called the:A.FASB.B.SEC.C.PCAOB.D.AICPA.77.Which group maintains the professional code of ethics to which CPAs must adhere?A.AICPAB.FASBC.AAAD.FTC78.One of the disadvantages of a corporation when pared to a partnership is thatA.the stockholders have limited liability.B.the corpora

61、tion is treated as a separate legal entity from the stockholders.C.the corporation and its stockholders are subject to double taxation.D.the corporation must account for the businesss transactions separate and apart from those of the owners.79.Which of the following statements is true about a sole proprietorship?A.The owner and the business are separate legal entities but not separate accounting entities.B.The owner and the business are separate accounting entities but not separate legal entities.C.the owner and the business are separate legal entities a