会计学原理英文版一单元习题.docx
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会计学原理英文版一单元习题
1. Accountingisaninformationandmeasurementsystemthatidentifies,records,andcommunicatesrelevant,reliable,andcomparableinformationaboutanorganization'sbusinessactivities.
2. Bookkeepingistherecordingoftransactionsandeventsandisonlypartofaccounting.
3. Anaccountinginformationsystemcommunicatesdatatohelpbusinessesmakebetterdecisions.
4. Managerialaccountingistheareaofaccountingthatprovidesinternalreportstoassistthedecisionmakingneedsofinternalusers.
5. Internaloperatingactivitiesincluderesearchanddevelopment,distribution,andhumanresources.
6. Theprimaryobjectiveoffinancialaccountingistoprovidegeneralpurposefinancialstatementstohelpexternalusersanalyzeandinterpretanorganization'sactivities.
Externalauditorsexaminefinancialstatementstoverifythattheyarepreparedaccordingtogenerallyacceptedaccountingprinciples.
8. Externalusersincludelenders,shareholders,customers,andregulators.
9. Regulatorsoftenhavelegalauthorityovercertainactivitiesoforganizations.
Internalusersincludelenders,shareholders,brokersandmanagers.
11. Opportunitiesinaccountingincludeauditing,consulting,marketresearch,andtaxplanning.
12. Identifyingtheproperethicalpathiseasy.
13. TheSarbanes-OxleyAct(SOX)requireseachissuerofsecuritiestodisclosewhetherishasadoptedacodeofethicsforitsseniorfinancialofficersandthecontentsofthatcode.
14. Thefraudtriangleassertsthattherearethreefactorsthatmustexistforapersontocommitfraud;thesefactorsareopportunity,pressure,andrationalization.
15. TheSarbanes-OxleyAct(SOX)doesnotrequirepubliccompaniestoapplybothaccountingoversightandstringentinternalcontrols.
16. Apartnershipisabusinessownedbytwoormorepeople.
17.Ownersofacorporationarecalledshareholdersorstockholders.
18.Inthepartnershipformofbusiness,theownersarecalledstockholders.
19. Thebalancesheetshowsacompany’snetincomeorlossduetoearningsactivitiesoveraperiodoftime.
20. TheFinancialAccountingStandardsBoardistheprivategroupthatsetsbothbroadandspecificaccountingprinciples.
21. Thebusinessentityprinciplemeansthatabusinesswillcontinueoperatingforanindefiniteperiodoftime.
22. Generallyacceptedaccountingprinciplesarethebasicassumptions,concepts,andguidelinesforpreparingfinancialstatements.
23. Thebusinessentityassumptionmeansthatabusinessisaccountedforseparatelyfromotherbusinessentities,includingitsownerorowners.
24. Asageneralrule,revenuesshouldnotberecognizedintheaccountingrecordsuntilitisreceivedincash.
25. Specificaccountingprinciplesarebasicassumptions,concepts,andguidelinesforpreparingfinancialstatementsandariseoutoflong-usedaccountingpractice.
26. Generalaccountingprinciplesarisefromlong-usedaccountingpractices.
27. Asoleproprietorshipisabusinessownedbyoneormorepersons.
28. Unlimitedliabilityisanadvantageofasoleproprietorship.
29. Understandinggenerallyacceptedaccountingprinciplesisnotnecessarytouseandinterpretfinancialstatements.
30. TheInternationalAccountingStandardsboard(IASB)hastheauthoritytoimposeitsstandardsoncompaniesaroundtheworld.
31. Objectivitymeansthatfinancialinformationissupportedbyindependentunbiasedevidence.
32. Theideathatabusinesswillcontinuetooperateinsteadofbeingclosedorsoldunderliesthegoing-concernassumption.
33. Accordingtothecostprinciple,itispreferableformanagerstoreportanestimateofanasset'svalue.
34. Themonetaryunitassumptionmeansthatallinternationaltransactionsmustbeexpressedindollars.
35. TheInternationalAccountingStandardsBoard(IASB)isthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic.
Alimitedliabilitycompanyoffersthelimitedliabilityofapartnershiporproprietorshipandthetaxtreatmentofacorporation.
37. TheSecuritiesandExchangeCommission(SEC)isagovernmentagencythathaslegalauthoritytoestablishGAAP.
38. Thethreecommonformsofbusinessownershipincludesoleproprietorship,partnership,andnon-profit.
39. Thethreemajortypesofbusinessactivitiesareoperating,financing,andinvesting.
Planningisdefininganorganization'sideas,goals,andactions.
41. Strategicmanagementistheprocessofdeterminingtherightmixofoperatingactivitiesforthetypeoforganization,itsplans,anditsmarkets.
Planningactivitiesarethemeansanorganizationusestopayforresourceslikeland,buildings,andequipmenttocarryoutitsplans.
43. Investingactivitiesaretheacquiringanddisposingofresourcesthatanorganizationusestoacquireandsellitsproductsorservices.
44. Ownerfinancingreferstoresourcescontributedbycreditorsorlenders.
Revenuesareincreasesinequityfromacompany'searningactivities.
46. Anetlossoccurswhenrevenuesexceedexpenses.
47. Netincomeoccurswhenrevenuesexceedexpenses.
Liabilitiesaretheowner'sclaimonassets.
Assetsaretheresourcesofacompanyandareexpectedtoyieldfuturebenefits.
50. Owner’swithdrawalsareexpenses.
51. Theaccountingequationcanberestatedas:
Assets-Equity=Liabilities.
52. Theaccountingequationimpliesthat:
Assets+Liabilities=Equity.
53. Owner'sinvestmentsareincreasesinequityfromacompany'searningsactivities.
54. Everybusinesstransactionleavestheaccountingequationinbalance.
Anexternaltransactionisanexchangeofvaluewithinanorganization.
Fromanaccountingperspective,aneventisahappeningthataffectstheaccountingequation,butcannotbemeasured.
57. Owner'sequityisincreasedwhencashisreceivedfromcustomersinpaymentofpreviouslyrecordedaccountsreceivable.
58. Anowner'sinvestmentinabusinessalwayscreatesanasset(cash),aliability(notepayable),andowner'sequity(investment.)
59. Returnonassetsisoftenstatedinratioformastheamountofaveragetotalassetsdividedbyincome.
60. Returnonassetsisalsoknownasreturnoninvestment.
61. Returnonassetsisusefultodecisionmakersforevaluatingmanagement,analyzingandforecastingprofits,andinplanningactivities.
’snetincomeof$117millionandaverageassetsof$1,400millionresultsinareturnonassetsof%.
63. Returnonassetsreflectstheeffectivenessofacompany’sabilitytogenerateprofitthroughproductiveuseofitsassets.
64. Riskistheuncertaintyaboutthereturnweexpecttoearn.
65. Generallythelowertherisk,thelowerthereturnthatcanbeexpected.
66. U.S.GovernmentTreasurybondsprovidehighreturnandlowrisktoinvestors.
67. Thefourbasicfinancialstatementsincludethebalancesheet,incomestatement,statementofowner'sequity,andstatementofcashflows.
Anincomestatementreportsoninvestingandfinancingactivities.
69. Abalancesheetcoversaperiodoftimesuchasamonthoryear.
70. Theincomestatementdisplaysrevenuesearnedandexpensesincurredoveraspecifiedperiodoftimeduetoearningsactivities.
71. Thestatementofcashflowsshowstheneteffectofrevenuesandexpensesforareportingperiod.
72. Theincomestatementshowsthefinancialpositionofabusinessonaspecificdate.
73. Thefirstsectionoftheincomestatementreportscashflowsfromoperatingactivities.
Thebalancesheetisbasedontheaccountingequation.
Investingactivitiesinvolvethebuyingandsellingofassetssuchaslandandequipmentthatareheldforlong-termuseinthebusiness.
Operatingactivitiesincludelong-termborrowingandrepayingcashfromlenders,andcashinvestmentsorwithdrawalsbytheowner.
Thepurchaseofsuppliesappearsonthestatementofcashflowsasaninvestingactivitybecauseitinvolvesthepurchaseofassets.
Theincomestatementreportsonoperatingactivitiesatapointintime.
Thestatementofcashflowsidentifiescashflowsseparatedintooperating,investing,andfinancingactivitiesoveraperiodoftime.
Endingcapitalreportedonthestatementofowner’sequityiscalculatedbyaddingownerinvestmentsandnetlossesandsubtractingnetincomesandwithdrawals.
MultipleChoiceQuestions
81. Accountingisaninformationandmeasurementsystemthatdoesallofthefollowingexcept:
A. Identifiesbusinessactivities.
B. Recordsbusinessactivities.
C. Communicatesbusinessactivities.
D. Doesnotusetechnologytoimproveaccuracyinreporting.
E. Helpspeoplemakebetterdecisions.
Technology:
A. Hasreplacedaccounting.
B. Hasnotchangedtheworkthataccountantsdo.
C. Hascloselylinkedaccountingwithconsulting,planning,andotherfinancialservices.
D. Inaccountinghasreplacedtheneedfordecisionmakers.
E. Inaccountingisonlyavailabletolargecorporations.
Theprimaryobjectiveoffinancialaccountingis:
A. Toservethedecision-makingneedsofinternalusers.
B. Toprovidefinancialstatementstohelpexternalusersanalyzeanorganization'sactivities.
C. Tomonitorandcontrolcompanyactivities.
D. Toprovideinformationonboththecostsandbenefitsoflookingafterproductsandservices.
E. Toknowwhat,when,andhowmuchtoproduce.
Theareaofaccountingaimedatservingthedecisionmakingneedsofinternalusersis:
A. Financialaccounting.
B. Managerialaccounting.
C. Externalauditing.
D. SECreporting.
E. Bookkeeping.
Externalusersofaccountinginformationincludeallofthefollowingexcept:
A. Shareholders.
B. Customers.
C. Purchasingmanagers.
D. Governmentregulators.
E. Creditors.
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