财务会计英语 练习及答案ch02Word格式.docx

1、 6. Consuming goods and services in the process of generating revenues results in expenses. 7. Prepaid expenses are an example of an expense. 8. Unearned Revenues are an example of a liability. 9. Drawings are an example of an expense. 10. Accounts in the ledger are usually maintained in alphabetica

2、l order. 11. Depending on the account title, the right side of the account is referred to as the credit side. 02 12. To determine the balance in an account, always subtract credits from debits. 13. Unless the transaction is compound, the dollar amount of the debits for each transaction is equal to t

3、he dollar amount of the credits for that transaction, and thus the term double-entry bookkeeping. 3 OBJ: 03 14. The double-entry accounting system records each transaction twice. 15. The increase side of all accounts is the normal balance. 16. The journal is the book of original entry. 17. The proce

4、ss of recording a transaction in the journal is called journalizing. 18. Journalizing is the process of entering amounts in the ledger. 19. Transactions are listed in the journal chronologically. 20. Journalizing transactions using the double-entry bookkeeping system will eliminate fraud. 21. Liabil

5、ity accounts are increased by debits. 22. Expense accounts are increased by credits.23. Revenue accounts are increased by credits. 24. The normal balance of a capital account is a debit. 25. The normal balance of the drawing account is a debit. 26. The normal balance of an expense account is a credi

6、t. 27. The normal balance of revenue accounts is a credit. 28. Withdrawals decrease owners equity and are listed on the income statement as a deduction from revenue. 29. The process of transferring the data from the journal to the ledger accounts is posting. 04 30. The post reference notation used i

7、n the ledger is the account number. 31. The post reference notation used in the journal is the page number. 32. A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger. 33. The order of the flow of accounting data is （1） record in the le

8、dger, （2） record in the journal, （3） prepare the financial statements. 34. For a months transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries. 35. For a months transactions for a typical medium-sized business, the accounts payable account

9、is likely to have only credit entries. 36. When a business receives a bill from the utility company, no entry should be made until the invoice is paid. 37. When an owner invests assets in the business, the capital account increases due to revenue being earned. 38. When an accounts payable account is

10、 paid in cash, the owners equity in the business decreases. 39. When an account receivable is collected in cash, the total assets of the business increase. 40. A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet. 05 41. A trial bal

11、ance determines the accuracy of the numbers. 42. Even when a trial balance is in balance, there may be errors in the individual accounts. 43. The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equa

12、l. 44. The erroneous arrangement of digits, such as writing $45 as $54, is called a slide. 06 45. Posting a transaction twice will cause the trial balance totals to be equal. 46. Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be o

13、ut of balance. 47. The erroneous moving of an entire number one or more spaces to the right or left, such as writing $75 as $750, is called a transposition. 48. Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal. 49. Horizontal analysis is used to

14、compare financial statements from different periods. 07 50. Horizontal analysis is used to compare the financial statements of the same company for different periods. 51. In horizontal analysis, the base for computing changes is generally the oldest period. 52. Horizontal analysis is not in common u

15、sage today.MULTIPLE CHOICE 1. Accountsa.do not reflect money amountsb.are not used by entities that manufacture productsc.are records of increases and decreases in individual financial statement itemsd.are only used by large entities with many transactions C DIF: 2. A group of related accounts that

16、comprise a complete unit is called ajournalliabilityledgertransaction 3. Accounts are classified in the ledgerchronologicallyalphabeticallyin accordance with their appearance in the financial statementsso that accounts used most often are listed first 4. Revenue should be recognized whencash is rece

17、ivedthe service is performedthe customer places an orderthe customer charges an order B DIF: 5. Which of the following accounts is an owners equity account?CashAccounts PayablePrepaid InsuranceJulia Davis, Capital D DIF: 6. The gross increases in owners equity attributable to business activities are

18、 calledassetsliabilitiesrevenuesnet income 7. A chart of accounts isthe same as a balance sheetusually a listing of accounts in alphabetical orderusually a listing of accounts in financial statement orderused in place of a ledger 8. The debit side of an accountdepends on whether the account is an as

19、set, liability or owners equitycan be either side of the account depending on how the accountant set up the systemis the right side of the accountis the left side of the account 9. An account is said to have a debit balance ifthe amount of the debits exceeds the amount of the creditsthere are more e

20、ntries on the debit side than on the credit sideits normal balance is debit without regard to the amounts or number of entries on the debit sidethe first entry of the accounting period was posted on the debit side A DIF: 10. Which statement（s） concerning cash is （are） true?cash will always have more

21、 debits than creditscash will never have a credit balancecash is increased by debitingall of the above 11. A debit may signify a（n）decrease in asset accountsdecrease in liability accountsincrease in the capital accountdecrease in the drawing account 12. Which of the following types of accounts have

22、a normal credit balance?assets and liabilitiesliabilities and expensesrevenues and liabilitiescapital and drawing 13. Which of the following groups of accounts have a normal debit balance?revenues, liabilities, capitalcapital, assetsliabilities, expensesassets, expenses 14. Which one of the statemen

23、ts below is not a purpose for the journal?to show increases and decreases in accountsto show a chronological order by dateto show a complete transaction in one placeto help locate errors 15. A credit signifies a decrease indrawingcapitalrevenue 16. A credit may signify adecrease in assetsdecrease in

24、 liabilitiesdecrease in capitaldecrease in revenue 17. A debit signifies a decrease inexpenses 18. Which of the following applications of the rules of debit and credit is true?decrease Prepaid Insurance with a credit and the normal balance is a creditincrease Accounts Payable with a credit and the normal balance is a debitincrease Supplies Expense with a debit and the