《会计学原理》英文版 考试复习练习(1

Accountingisaninformationsystemthat:Identifiesbusinessactivities.Recordsbusinessactivities.Communicatesbusinessactivities.Helpspeoplemakebetterdecisions.Allofthese.Creditors'claimsontheassetsofacompanyarecalled:Netlosses.Expenses.Revenues.Equity.Liabilities.Theexcessofexpensesoverrevenuesforaperiodis:Netassets.Equity.Netloss.Netincome.Aliability.OnJune30ofthecurrentyear,theassetsandliabilitiesofPhoenixPhildellareasfollows:Cash$20,500;AccountsReceivable,$7,250;Supplies,$650;Equipment,$12,000;AccountsPayable,$9,300.Whatistheamountofowner'sequityasofJuly1ofthecurrentyear?$8,300$13,050$20,500$31,100PhotometerCompanypaidoff$30,000ofitsaccountspayableincash.Whatwouldbetheeffectsofthistransactionontheaccountingequation?Assets,$30,000increase;liabilities,noeffect;equity,$30,000increase.Assets,$30,000decrease;liabilities,$30,000decrease;equity,noeffect.Assets,$30,000decrease;liabilities,$30,000increase;equity,noeffect.Assets,noeffect;liabilities,$30,000decrease;equity,$30,000increase.Assets,$30,000decrease;liabilities,noeffect;equity$30,000decrease.Thefinancialstatementthatreportswhetherthebusinessearnedaprofitandalsoliststhetypesandamountsoftherevenuesandexpensesiscalled:ABalanceSheet.AStatementofOwner'sEquity.AStatementofCashFlows.AnIncomeStatement.AStatementofFinancialPosition.Abalancesheetlists:Thetypesandamountsoftherevenuesandexpensesofabusiness.Onlytheinformationaboutwhathappenedtoequityduringatimeperiod.Thetypesandamountsofassets,liabilities,andequityofabusinessasofaspecificdate.Theinflowsandoutflowsofcashduringtheperiod.Theassetsandliabilitiesofacompanybutnottheowner'sequity.Thefinancialstatementthatshowsthebeginningbalanceofowner'sequity;thechangesinequitythatresultedfromnewinvestmentsbytheowner,netincome(ornetloss);withdrawals;andtheendingbalance,isthe:StatementofFinancialPosition.StatementofCashFlows.BalanceSheet.IncomeStatement.StatementofOwner'sEquity.Accountspayableappearonwhichofthefollowingstatements?BalanceSheet.IncomeStatement.StatementofOwner'sEquity.StatementofCashFlows.TransactionStatement.Acompany'sbalancesheetshows:cash$22,000,accountsreceivable$16,000,officeequipment$50,000,andaccountspayable$17,000.Whatistheamountofowner'sequity?$17,000.$29,000.$71,000.$88,000.$105,000.Theaccountingprocessbeginswith:Analysisofbusinesstransactionsandsourcedocuments.Preparingfinancialstatementsandotherreports.Summarizingtherecordedeffectofbusinesstransactions.Presentationoffinancialinformationtodecision-makers.Preparationofthetrialbalance.Theaccountusedtorecordthetransfersofassetsfromabusinesstoitsowneris:Arevenueaccount.Theowner'swithdrawalsaccount.Theowner'scapitalaccount.Anexpenseaccount.Aliabilityaccount.Awrittenpromisetopayadefinitesumofmoneyonaspecifiedfuturedateisa(n):Unearnedrevenue.Prepaidexpense.Creditaccount.Notepayable.Accountreceivable.Aledgeris:Arecordcontainingincreasesanddecreasesinaspecificasset,liability,equity,revenue,orexpenseitem.Ajournalinwhichtransactionsarefirstrecorded.Acollectionofdocumentsthatdescribetransactionsandeventsenteringtheaccountingprocess.Alistofallaccountswiththeirdebitbalancesatapointintime.Arecordcontainingallaccountsandtheirbalancesusedbyacompany.Double-entryaccountingisanaccountingsystem:Thatrecordseachtransactiontwice.Thatrecordstheeffectsoftransactionsandothereventsinatleasttwoaccountswithequaldebitsandcredits.Inwhicheachtransactionaffectsandisrecordedintwoormoreaccountsbutthatcouldincludetwodebitsandnocredits.ThatmayonlybeusedifT-accountsareused.Thatinsuresthaterrorsneveroccur.RockyIndustriesreceiveditstelephonebillintheamountof$300,andimmediatelypaidit.Rocky'sgeneraljournalentrytorecordthistransactionwillincludeaDebittoTelephoneExpensefor$300.CredittoAccountsPayablefor$300.DebittoCashfor$300.CredittoTelephoneExpensefor$300.DebittoAccountsPayablefor$300.ManagementServices,Inc.providesservicestoclients.OnMay1,aclientprepaidManagementServices$60,000for6-monthsservicesinadvance.ManagementServices'generaljournalentrytorecordthistransactionwillincludeaDebittoUnearnedManagementFeesfor$60,000.CredittoManagementFeesEarnedfor$60,000.CredittoCashfor$60,000.CredittoUnearnedManagementFeesfor$60,000.DebittoManagementFeesEarnedfor$60,000.WisconsinRentalspurchasedofficesuppliesoncredit.ThegeneraljournalentrymadebyWisconsinRentalswillincludea:DebittoAccountsPayable.DebittoAccountsReceivable.CredittoCash.CredittoAccountsPayable.CredittoWisconsinRentals,Capital.OnSeptember30,theCashaccountofValueCompanyhadanormalbalanceof$5,000.DuringSeptember,theaccountwasdebitedforatotalof$12,200andcreditedforatotalof$11,500.WhatwasthebalanceintheCashaccountatthebeginningofSeptember?A$0balance.A$4,300debitbalance.A$4,300creditbalance.A$5,700debitbalance.A$5,700creditbalance.ThefollowingtransactionsoccurredduringJuly:Received$900cashforservicesprovidedtoacustomerduringJuly.Received$2,200cashinvestmentfromBarbaraHanson,theownerofthebusiness.Received$750fromacustomerinpartialpaymentofhisaccountreceivablewhicharosefromsalesinJune.Providedservicestoacustomeroncredit,$375.Borrowed$6,000fromthebankbysigningapromissorynote.Received$1,250cashfromacustomerforservicestoberenderednextyear.WhatwastheamountofrevenueforJuly?$900.$1,275.$2,525.$3,275.$11,100.AtthebeginningofJanuaryofthecurrentyear,ThomasLawCenter'sledgerreflectedanormalbalanceof$52,000foraccountsreceivable.DuringJanuary,thecompanycollected$14,800fromcustomersonaccountandprovidedadditionalservicestocustomersonaccounttotaling$12,500.Additionally,duringJanuaryonecustomerpaidThomas$5,000forservicestobeprovidedinthefuture.AttheendofJanuary,thebalanceintheaccountsreceivableaccountshouldbe:$54,700.$49,700.$2,300.$54,300.$49,300.DuringthemonthofMarch,CooleyComputerServicesmadepurchasesonaccounttotaling$43,500.AlsoduringthemonthofMarch,Cooleywaspaid$8,000byacustomerforservicestobeprovidedinthefutureandpaid$36,900ofcashonitsaccountspayablebalance.IfthebalanceintheaccountspayableaccountatthebeginningofMarchwas$77,300,whatisthebalanceinaccountspayableattheendofMarch?$83,900.$91,900.$6,600.$75,900.$4,900.Thetimeperiodprincipleassumesthatanorganization'sactivitiescanbedividedintospecifictimeperiodsincluding:Months.Quarters.Fiscalyears.Calendaryears.Allofthese.Abroadprinciplethatrequiresidentifyingtheactivitiesofabusinesswithspecifictimeperiodssuchasmonths,quarters,oryearsisthe:Operatingcycleofabusiness.Timeperiodprinciple.Going-concernprinciple.Matchingprinciple.Accrualbasisofaccounting.Theaccountingprinciplethatrequiresrevenuetobereportedwhenearnedisthe:Matchingprinciple.Revenuerecognitionprinciple.Timeperiodprinciple.Accrualreportingprinciple.Going-concernprinciple.Adjustingentries:Affectonlyincomestatementaccounts.Affectonlybalancesheetaccounts.Affectbothincomestatementandbalancesheetaccounts.Affectonlycashflowstatementaccounts.Affectonlyequityaccounts.Thebroadprinciplethatrequiresexpensestobereportedinthesameperiodastherevenuesthatwereearnedasaresultoftheexpensesisthe:Recognitionprinciple.Costprinciple.Cashbasisofaccounting.Matchingprinciple.Timeperiodprinciple.Adjustingentriesarejournalentriesmadeattheendofanaccountingperiodforthepurposeof:Updatingliabilityandassetaccountstotheirproperbalances.Assigningrevenuestotheperiodsinwhichtheyareearned.Assigningexpensestotheperiodsinwhichtheyareincurred.Assuringthatfinancialstatementsreflecttherevenuesearnedandtheexpensesincurred.Allofthese.Theapproachtopreparingfinancialstatementsbasedonrecognizingrevenueswhentheyareearnedandmatchingexpensestothoserevenuesis:Cashbasisaccounting.Thematchingprinciple.Thetimeperiodprinciple.Accrualbasisaccounting.Revenuebasisaccounting.Prepaidexpenses,depreciation,accruedexpenses,unearnedrevenues,andaccruedrevenuesareallexamplesof:Itemsthatrequirecontraaccounts.Itemsthatrequireadjustingentries.Assetandequity.Assetaccounts.Incomestatementaccounts..31.Theaccrualbasisofaccounting:Isgenerallyacceptedforexternalreportingbecauseitismoreusefulthancashbasisformostbusinessdecisions.Isflawedbecauseitgivescompleteinformationaboutcashflows.Recognizesrevenueswhenreceivedincash.Recognizesexpenseswhenpaidincash.EliminatestheneedforadjustingentriesattheendofeachperiodAcompanymadenoadjustingentryforaccruedandunpaidemployeewagesof$28,000onDecember31.Thisoversightwould:Understatenetincomeby$28,000.Overstatenetincomeby$28,000.Havenoeffectonnetincome.Overstateassetsby$28,000.Understateassetsby$28,000.Ifacompanymistakenlyforgottorecorddepreciationonofficeequipmentattheendofanaccountingperiod,thefinancialstatementspreparedatthattimewouldshow:Assetsoverstatedandequityunderstated.Assetsandequitybothunderstated.Assetsoverstated,netincomeunderstated,andequityoverstated.Assets,netincome,andequityunderstated.Assets,netincome,andequityoverstated.Ifacompanyfailedtomaketheend-of-periodadjustmenttoremovefromtheUnearnedManagementFeesaccounttheamountofmanagementfeesthatwereearned,thisomissionwouldcause:Anoverstatementofnetincome.Anoverstatementofassets.Anoverstatementofliabilities.Anoverstatementofequity.Anunderstatementofliabilities.Accruedrevenues:Attheendofoneaccountingperiodoftenresultincashreceiptsfromcustomersinthenextperiod.Attheendofoneaccountingperiodoftenresultincashpaymentsinthenextperiod.Arealsocalledunearnedrevenues.Arelistedonthebalancesheetasliabilities.Arerecordedattheendofanaccountingperiodbecausecashhasalreadybeenreceivedforrevenuesearned.Anaccountlinkedwithanotheraccountthathasanoppositenormalbalanceandthatissubtractedfromthebalanceoftherelatedaccountisa(n):Accruedexpense.Contraaccount.Accruedrevenue.Intangibleasset.Adjunctaccount.Priortorecordingadjustingentries,theOfficeSuppliesaccounthada$359debitbalance.Aphysicalcountofthesuppliesshowed$105ofunusedsuppliesavailable.Therequiredadjustingentryis:DebitOfficeSupplies$105andcreditOfficeSuppliesExpense$105.DebitOfficeSuppliesExpense$105andcreditOfficeSupplies$105.DebitOfficeSuppliesExpense$254andcreditOfficeSupplies$254.DebitOfficeSupplies$254andcreditOfficeSuppliesExpense$254.DebitOfficeSupplies$105andcreditSuppliesExpense$254.OnApril1,2009,acompanypaidthe$1,350premiumonathree-yearinsurancepolicywithbenefitsbeginningonthatdate.WhatwillbetheinsuranceexpenseontheannualincomestatementfortheyearendedDecember31,2009?$1,350.$450.$1,012.50.$337.50.$37.50.OnJanuary1acompanypurchasedafive-yearinsurancepolicyfor$1,800withcoveragestartingimmediately.IfthepurchasewasrecordedinthePrepaidInsuranceaccount,andthecompanyrecordsadjustmentsonlyatyear-end,theadjustingentryattheendofthefirstyearis:DebitPrepaidInsurance,$1,800;creditCash,$1,800.DebitPrepaidInsurance,$1,440;creditInsuranceExpense,$1,440.DebitPrepaidInsurance,$360;creditInsuranceExpense,$360.DebitInsuranceExpense,$360;creditPrepaidInsurance,$360.DebitInsuranceExpense,$360;creditPrepaidInsurance,$1,440.PPWCo.leasedaportionofitsstoretoanothercompanyforeightmonthsbeginningonOctober1,2009,atamonthlyrateof$800.Thisothercompanypaidtheentire$6,400cashonOctober1,whichPPWCo.recordedasunearnedrevenue.ThejournalentrymadebyPPWCo.atyear-endonDecember31,2009wouldinclude:AdebittoRentEarnedfor$2,400.AcredittoUnearnedRentfor$2,400.AdebittoCashfor$6,400.AcredittoRentEarnedfor$2,400.AdebittoUnearnedRentfor$4,000.AcompanypayseachofitstwoofficeemployeeseachFridayattherateof$100perdayforafive-dayweekthatbeginsonMonday.IfthemonthlyaccountingperiodendsonTuesdayandtheemployeesworkedonbothMondayandTuesday,themonth-endadjustingentrytorecordthesalariesearnedbutunpaidis:DebitUnpaidSalaries$600andcreditSalariesPayable$600.DebitSalariesExpense$400andcreditSalariesPayable$400.DebitSalariesExpense$600andcreditSalariesPayable$600.DebitSalariesPayable$400andcreditSalariesExpense$400.DebitSalariesExpense$400andcreditCash$400.ThedifferencebetweenthecostofanassetandtheaccumulateddepreciationforthatassetiscalledDepreciationExpense.UnearnedDepreciation.PrepaidDepreciation.DepreciationValue.BookValue.Acompanypurchasedanewtruckatacostof$42,000onJuly1,2009.Thetruckisestimatedtohaveausefullifeof6yearsandasalvagevalueof$3,000.Thecompanyusesthestraight-linemethodofdepreciation.HowmuchdepreciationexpensewillberecordedforthetruckfortheyearendedDecember31,2009?$3,250.$3,500.$4,000.$6,500.$7,000.Ifacompanyrecordsprepaymentofexpensesinanassetaccount,theadjustingentrywould:Resultinadebittoanexpenseandacredittoanassetaccount.Causeanadjustmenttopriorexpensetobeoverstatedandassetstobeunderstated.Causeanaccruedliabilityaccounttoexist.Resultinadebittoaliabilityandacredittoanassetaccount.Decreasecash.IfaccruedsalarieswererecordedonDecember31withacredittoSalariesPayable,theentrytorecordpaymentofthesewagesonthefollowingJanuary5wouldinclude:AdebittoCashandacredittoSalariesPayable.AdebittoCashandacredittoPrepaidSalaries.AdebittoSalariesPayableandacredittoCash.AdebittoSalariesPayableandacredittoSalariesExpense.NoentrywouldbenecessaryonJanuary5.Acompanypurchasednewcomputersatacostof$14,000onSeptember30,2010.Thecomputersareestimatedtohaveausefullifeof4yearsandasalvagevalueof$2,000.Thecompanyusesthestraight-linemethodofdepreciation.HowmuchdepreciationexpensewillberecordedforthecomputersfortheyearendedDecember31,2010?TOC\o"1-5"\h\z$250$750$875$1,000$3,000Atrialbalancepreparedafteradjustmentshavebeenrecordediscalleda(n):Balancesheet.Adjustedtrialbalance.Unadjustedtrialbalance.Classifiedbalancesheet.Unclassifiedbalancesheet.Whenclosingentriesaremade:Allledgeraccountsareclosedtostartthenewaccountingperiod.Alltemporaryaccountsareclosedbutnotthepermanentaccounts.Allrealaccountsareclosedbutnotthenominalaccounts.Allpermanentaccountsareclosedbutnotthenominalaccounts.Allbalancesheetaccountsareclosed.Assets,liabilities,andequityaccountsarenotclosed;theseaccountsarecalled:Nominalaccounts.Temporaryaccounts.Permanentaccounts.Contraaccounts.AccruedaccountsWhichofthefollowingistheusualfinalstepintheaccountingcycle?Journalizingtransactions.Preparinganadjustedtrialbalance.Preparingapost-closingtrialbalance.Preparingthefinancialstatements.Preparingaworksheet.Aclassifiedbalancesheet:Measuresacompany'sabilitytopayitsbillsontime.Organizesassetsandliabilitiesintoimportantsubgroups.Presentsrevenues,expenses,andnetincome.Reportsoperating,investing,andfinancingactivities.Reportstheeffectofprofitandwithdrawalsonowner'scapital.Theassetssectionofaclassifiedbalancesheetusuallyincludes:Currentassets,long-terminvestments,plantassets,andintangibleassets.Currentassets,long-termassets,revenues,andintangibleassets.Currentassets,long-terminvestments,plantassets,andequity.Currentliabilities,long-terminvestments,plantassets,andintangibleassets.Currentassets,liabilities,plantassets,andintangibleassets.Twocommonsubgroupsforliabilitiesonaclassifiedbalancesheetare:currentliabilitiesandintangibleliabilities.presentliabilitiesandoperatingliabilities.generalliabilitiesandspecificliabilities.intangibleliabilitiesandlong-termliabilities.currentliabilitiesandlong-termliabilities.Thespecialaccountusedonlyintheclosingprocesstotemporarilyholdtheamountsofrevenuesandexpensesbeforethenetdifferenceisaddedto(orsubtractedfrom)theowner'scapitalaccountisthe:IncomeSummaryaccount.Closingaccount.Balancecolumnaccount.Contraaccount.Nominalaccount.ThefollowinginformationisavailablefortheTravisTravelAgency.AftertheseclosingentrieswhatwillbethebalanceintheJayTravis,Capitalaccount?Totalrevenues$125,000Totalexpenses60,000JayTravis,Capital80,000JayTravis,Withdrawals...15,000$65,000.$80,000.$130,000.$145,000.$280,000.