怀尔德会计学原理21版英语题库答案.docx

1、怀尔德会计学原理21版英语题库答案怀尔德会计学原理21版英语题库答案Chapter 1Accounting in BusinessQUESTIONS1 The purpose of accounting is to provide decision makers with relevant and reliableinformation to help them make better decisions Examples include information forpeople making investments, loans, and business plans2 Technolog

2、y reduces the time, effort, and cost of recordkeeping There is still ademand for people who can design accounting systems, supervise their operation,analyze complex transactions, and interpret reports Demand also exists for peoplewho can effectively use computers to prepare and analyze accounting re

3、portsTechnology will never substitute for qualified people with abilities to prepare, use,analyze, and interpret accounting information.3. External users and their uses of accounting information include: (a) lenders, tomeasure the risk and return of loans; (b) shareholders, to assess whether to buy,

4、sell, or hold their shares; (c) directors, to oversee their interests in the organization;(d) employees and labor unions, to judge the fairness of wages and assess futureemployment opportunities; and (e) regulators, to determine whetherthe organizationis complying with regulations Other users are vo

5、ters, legislators, governmentofficials, contributors to nonprofits, suppliers and customers4. Business owners and managers use accounting information to help answerquestions such as: What resources does an organization own? What debts are owed?How much income is earned? Are expenses reasonable for t

6、he level of sales? Arecustomers accounts being promptly collected?3 Service businesses include: Standard and Poor 4s, Dun & Bradstreet, Merril1 Lynch,Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential.BusinessesMotor Co.,Philip Morris, Coca-Cola, Best Buy, and Circuit City6 The int

7、ernal role of accounting is to serve the organization s internal operatingfunctions It does this by providing useful information for internal users incompleting their tasks more effectively and efficiently. By providing this information,accounting helps the organization reach its overall goals7 Acco

8、unting professionals offer many services including auditing, managementadvice, tax planning, business valuation, and money management8.Marketing managers are likely interested in information such as sales volume,advertising costs, promotion costs, salaries of sales personnel, and salescommissions9.A

9、ccounting is described as a service activity because it serves decision makers byproviding information to help them make better business decisions10.Some accounting-related professions include consultant, financial analyst,underwriter, financial planner, appraiser, FBI investigator, market researche

10、r, andsystem designer.11 Ethics rules require that auditors avoid auditing clients in which they have a directinvestment, or if the auditor s fee is dependent on the figures in the client s reportsThis will prevent others from doubting the quality of the auditor s report12. In addition to preparing

11、tax returns, tax accountants help companies and individualsplan future transactions to minimize the amount of tax to be paid They are alsoactively involved in estate planning and in helping set up organizations Some taxaccountants work for regulatory agencies such as the IRS or the various statedepa

12、rtments of revenue These tax accountants help to enforce tax laws 13. The objectivity concept means that financial statement information is supported byindependent, unbiased evidence other than someone s opinion or imagination. Thisconcept increases the reliability and verifiability of financial sta

13、tement information. 14. This treatment is justified by both the cost principle and the going-concernassumption.15.The revenue recognition principle provides guidance for managers and auditors sothey know when to recognize revenue If revenue is recognized too early, thebusiness looks more profitable

14、than it is. On the other hand, if revenue isrecognized too late the business looks less profitable than it is. This principledemands that revenue be recognized when it is both earned and can be measuredreliably. The amount of revenue should equal the value of the assets received orexpected to be rec

15、eived from the business s operating activities covering a specifictime period16.Business organizations can be organized in one of three basic forms: soleproprietorship, partnership, or corporation. These forms have implications for legalliability, taxation, continuity, number of owners, and legal st

16、atus as follows：Proprietorship Partnership CorporationBusiness entity yes yes yesLegal entity no no yesLimited liability no* no* yesUnlimited life no no yesBusiness taxed no no yesOne owner allowed yes no yes*Proprietorships and partnerships that are set up as LLCs provide limited liability.17.(a) A

17、ssets are resources owned or controlled by a company that are expected toyield future benefits(b) Liabilities are creditors 4 claims on assets that reflectobligations to provide assets, products or services to others(c) Equity is theowner 4s claim on assets and is equal to assets minus liabilities(d

18、) Net assets referto equity18.Equity is increased by investments from the owner and by net income It isdecreased by withdrawals by the owner and by a net loss (which is the excess ofexpenses over revenues)19.Accounting principles consist of (a) general and (b) specific principles General preparingfi

19、nancial statements They stem from long-used accounting practices. Specificprinciples are detailed rules used in reporting on business transactions and eventsThey usually arise from the rulings of authoritative and regulatory groups such asthe Financial Accounting Standards Board or the Securities an

20、d ExchangeCommission.20.Revenue (or sales) is the amount received from selling products and services 21 Net income (also called income, profit or earnings) equals revenues minus expenses(if revenues exceed expenses) Net income increases equity If expenses exceedrevenues, the company has a Net Loss N

21、et loss decreases equity22.The four basic financial statements are: income statement, statement of owner sequity, balance sheet, and statement of cash flows23.An income statement reports a company s revenues and expenses along with theresulting net income or loss over a period of time24.Rent expense

22、, utilities expense, administrative expenses, advertising and promotionexpenses, maintenance expense, and salaries and wages expenses are someexamples of business expenses25.The statement of owner s equity explains the changes in equity from net income orloss, and from any owner contributions and wi

23、thdrawals over a period of time 26. The balance sheet describes a company s financial position (types and amounts ofassets, liabilities, and equity) at a point in time27.The statement of cash flows reports on the cash inflows and outflows from acompany s operating, investing, and financing activitie

24、s28.Return on assets, also called return on investment, is a profitability measure that isuseful in evaluating management, analyzing and forecasting profits, and planningactivities It is computed as net income divided by the average total assets Forexample, if we have an average annual balance of $1

25、00 in a bank account and itearns interest of $5 for the year, then our return on assets is $5 / $100 or 5%. Thereturn on assets is a popular measure for analysis because it allows us to comparecompanies of different sizes and in different industriesA 29. Return refers to income, and risk is the unce

26、rtainty about the return we expect tomake The lower the risk of an investment, the lower the expected return. Forexample, savings accounts pay a low return because of the low riskof a bank notreturning the principal with interest Higher risk implies higher,but riskier, expectedreturnsB30. Organizati

27、ons carry out three major activities: financing, investing, and operatingFinancing provides the means used to pay for resources Investing refers to theacquisition and disposing of resources necessary to carry out the organization splans Operating activities are the actual carrying out of these plans

28、(Planning is theglue that connects these activities, including the organization s ideas, goals andstrategies)B31 An organization s financing activities (liabilities and equity) pay for investingactivities (assets) An organization cannot have more or less assets than itsliabilities and equity combine

29、d and, similarly, it cannot have more or less liabilitiesand equity than its total assets This means: assets = liabilities + equity Thisrelation is called the accounting equation (also called the balance sheet equation),and it applies to organizations at all times32.The dollar amounts in Best Buy 4s

30、 financial statements are rounded to the nearest$1, 000, 000. Best Buy 4s consolidated statement of earnings (or income statement)covers the fiscal year (consisting of 53 weeks) ended March 3, 2007. Best Buy alsoreports comparative income statements for the previous two years (consisting of 52weeks)

31、33.In thousands, Circuit City 4s accounting equation is:Assets = Liabilities + Equity$4, 007, 283 = $2, 216, 039 + $1,791,24434.At December 31, 2006, RadioShack had (in millions) assets of$2, 070. 0, liabilities of$1,4162 and equity of $653835.The independent auditor for Apple, Inc,is KPMG LLP The a

32、uditor expressly statesthat our responsibility is to express an opinion on these consolidated financialstatements based on our audits II The auditor also states that these consolidatedfinancial statements are the responsibility of the Company s management IIChapter 21EXERCISESExercise 21-1 (25 minutes)1.Alloc