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 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2.

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

3、e accounting reports. Technology 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, to measure the risk and return of loans; (b) shareholders, to as

4、sess whether to buy, 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 future employment opportunities; and (e) regulators, to determine whether the organization is complying with regul

5、ations. Other users are voters, legislators, government officials, contributors to nonprofits, suppliers and customers. 4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned

6、? Are expenses reasonable for the level of sales? Are customers accounts being promptly collected? 5. Service businesses include: Standard and Poors, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential. Businesses offering products include Nike, Reeb

7、ok, Gap, Apple Computer, Ford Motor Co., Philip Morris, Coca-Cola, Best Buy, and Circuit City. 6. The internal role of accounting is to serve the organizations internal operating functions. It does this by providing useful information for internal users in completing their tasks more effectively and

8、 efficiently. By providing this information, accounting helps the organization reach its overall goals. 7. Accounting professionals offer many services including auditing, management advice, tax planning, business valuation, and money management. 8. Marketing managers are likely interested in inform

9、ation such as sales volume, advertising costs, promotion costs, salaries of sales personnel, and sales commissions. 9. Accounting is described as a service activity because it serves decision makers by providing information to help them make better business decisions. 10. Some accounting-related pro

10、fessions include consultant, financial analyst, underwriter, financial planner, appraiser, FBI investigator, market researcher, and system designer. 11. Ethics rules require that auditors avoid auditing clients in which they have a direct investment, or if the auditors fee is dependent on the figure

11、s in the clients reports. This will prevent others from doubting the quality of the auditors report. 12. In addition to preparing tax returns, tax accountants help companies and individuals plan future transactions to minimize the amount of tax to be paid. They are also actively involved in estate p

12、lanning and in helping set up organizations. Some tax accountants work for regulatory agencies such as the IRS or the various state departments of revenue. These tax accountants help to enforce tax laws. 13. The objectivity concept means that financial statement information is supported by independe

13、nt, unbiased evidence other than someones opinion or imagination. This concept increases the reliability and verifiability of financial statement information. 14. This treatment is justified by both the cost principle and the going-concern assumption. 15. The revenue recognition principle provides g

14、uidance for managers and auditors so they know when to recognize revenue. If revenue is recognized too early, the business looks more profitable than it is. On the other hand, if revenue is recognized too late the business looks less profitable than it is. This principle demands that revenue be reco

15、gnized when it is both earned and can be measured reliably. The amount of revenue should equal the value of the assets received or expected to be received from the businesss operating activities covering a specific time period. 16. Business organizations can be organized in one of three basic forms:

16、 sole proprietorship, partnership, or corporation. These forms have implications for legal liability, taxation, continuity, number of owners, and legal status as follows: Proprietorship Partnership Corporation Business entity yes yes yes Legal entity no no yes Limited liability no* no* yes Unlimited life no no yes Business taxed no no yes One owner