財務(wù)會計相關(guān)復(fù)習(xí)題英文版12完美版

1、財務(wù)會計復(fù)習(xí)題Circle the letter of the best response.1 Which of the following statements is false?A Accounting is the information system thatmeasures business activities, processes thatinformation into reports, and communicates the results to decision makers.B Financial statements report financial informat

2、ion about a business entity to decision makers.C Owners of a corporation are personally liable for the debts of the corporation.D The purpose of financial accounting is to provide information to people outside of the entity, such as investors and creditors.2 Wilbur owns and operates a fishing tackle

3、 shop. Wilbur needs to borrow money to expand;therefore, he prepared financial statements to present to his banker. Wilbur obtained appraisals of all the assets of the business to ensure that the balance sheet would reflect the most current value of the assets. Wilbur has violated which of the follo

4、wing principles or concepts?A Reliability principleB Cost principleC Going-concern principleD Stable-monetary-unit concept3 Which of the following is true?A. Owners' Equity Assets = LiabilitiesB. Assets Owners' Equity = LiabilitiesC. Assets + Liabilities = Owners' EquityD. Liabilities =

5、Own ers' Equity + Assets4G. Harrison Inc experienced a decrease in total assets of $2,000 during the current year. During the same year, total liabilities decreased $6,000. If dividends for the year were $10,000 and the owners made no additional investment, how much was net income?A $14,000B $ 6

6、,000C $18,000D $ 2,0005 Which of the following statements is true?A The income statement reports all changes in assets, liabilities, and stockholders' equity of the business during the period.B Revenues and expenses are reported only on the balance sheet.C The statement of cash flows reports cas

7、h flows from three types of business activities cash receipts, cash payments, and investing.D On the statement of retained earnings, the net income for the period is added to the beginning balance of retained earnings.6 Which of the following statements is not true?A Investing activities relate to t

8、he investment by owners into the business.B Paying dividends is an example of a financing activity.C Operating activities are the most important type of business activity. D Managers must make decisions about operating, investing, and financing activities.7 On which financial statement can the endin

9、g balance in retained earnings be found? A Balance sheet B Income statement C Statement of retained earningsD Both A and C8 Which of these is an example of an asset account?A Service RevenueB DividendsC SuppliesD All of the above are assets9 Dobson Company paid $1,200 on account. The effect of this

10、transaction on Dobson's accounting equation is to ：A decrease liabilities and increase stockholders 'equity.B decrease assets and decrease liabilities.C have no effect on total assets.D decrease assets and decrease stockholders' equity.10 Which of these statements is false?A Decreases in

11、 liabilities and increases in revenues are recorded with a credit.B Decreases in assets and increases in stockholders' equity are recorded with a credit. C Increases in both assets and expenses are recorded with a debit.D Increases in assets and decreases in liabilities are recorded with a debit

12、.11 Note Payable has a normal beginning balance of $40,200. During the period, new borrowings total $100,000 and payments on loans total $20,600. Determine the correct ending balance in Note Payable.A $39,200, debitB $119,600, creditC $39,200, creditD $160,800, credit12 Which of these statements is

13、correct?A The account is a basic summary device used in accounting.B A business transaction is recorded first in the journal and then posted to the ledger.C In the journal entry, all accounts that are increased are listed first and then all accounts that are decreased are listed next.D Both A and B

14、are correct.13 Which of these accounts has a normal debit balance?A Salary Expense B A ccounts Payable C Service RevenueD Both A and B14 The May 31 trial balance reports a credit balance of $5,000 for Service Revenue. During the month, one entry for $10 had been posted in error as a debit to Service

15、 Revenue. What is the correct balance of Service Revenue at May 31 ?A $4,980 B $4,990C. $5,020D. $5,01015. The beginning Cash account balanee is $38,700. During the period, cash disbursements totaled $144,600. If en di ng Cash is $51,200, then cash receipts must have bee n :A. $105,900B. $234,500C.

16、$132,100D. $157,10016. Use the following selected information for the Perriman Company to calculate the correct credit column total for a trial balanee :Acco unts receivable$ 27,200Acco unts payable15,900Buildi ng359,600Cash55,600Common stock155,000Divide nds4,800In sura nee expe nse1,800Reta ined e

17、arnings133,800Salary expe nse52,500Salary payable3,600Service revenue193,200A. $365,600B. $304,700C. $501,500D. $506,30017 . The journal entry to record the performa nee of services on acco unt for $1,200 isA .Acco unts PayableService Reve nue1,2001,200B .Acco unts Receivable1,200Service Reve nue1,2

18、00C .Cash1,200Service Reve nue1,200D .Service Revenue1,200Acco unts Payable1,20018 . The Smallwood Corporati on began operati ons on Jan uary 1,20X8. During 20X1, Smallwood collected $92,000 for management services. $12,000 of the amount collected was from a con tract to provide man ageme nt service

19、s for one year begi nning November 1,20X8. An additional $20,000 of management services had been earned but not collected by year end. The amount of revenue that should be reported for 20X8 under the cash-basis and accrual-basis is：CashBasisAccrualBasisA .$92,000$80,000B .$80,000$100,000C .$100,000$

20、112,000D $92,000 $102,00019 Which of the following statements is false?A The time-period concept requires companies to prepare financial statements at least quarterly.B A ccording to the revenue principle, revenue should be recorded when a product or service has been delivered to the customer.C When

21、 possible, expenses that can be linked to a specific revenue should be deducted from revenue in the same period that the revenue is recorded.D The time-period concept, the revenue principle, and the matching principle all support the practice of preparing adjusting entries.20 The Armstead Company us

22、ually purchases office supplies twice a year to take advantage of quantity discounts. Office Supplies would be consideredA an unearned revenue.Ba prepaid expense.C an accrued revenue.D an accrued expense.21 On November 1 , 20X8 , the Jemigan Company paid $4,800 for a one-year insurance policy.On Dec

23、ember 31 , 20X8, the adjusting entry would includeA a debit to insurance Expense$4,800.Ba credit to insurance Payable, $800.C a credit to Prepaid insurance, $800.D a debit to Insurance Expense, $4,000.22 Which of these could not be a closing entry?A . Salary ExpenseXXRetained EarningsXXB. Retained E

24、arningsXXDividendsXXC. Service RevenueXXRetained EarningsXXD. Retained EarningsXXRent ExpenseXX23 What type of account is Unearned Revenue (asset, liability, stockholders' equity, revenue, or expense) and what is its normal balance, respectively?A asset, debitB expense, debitC liability, creditD

25、 revenue, credit24 Which of the following transactions is considered an accrued expense?I. Salaries that employees have earned but not receivedII Management fees received in advancein. Newspaper advertising that has been purchased but has not yet appeared in the newspaper A . I onlyB. II onlyC. n on

26、lyD. Both I and II25. Which of the following accounts is not considered a current asset? A . Accounts ReceivableB. EquipmentC. InventoryD. Prepaid Rent26. The bala nee sheet for Arno Id's Clea ners appears below:Arnold's CleanersBalance sheetDecember 31, 20X8AssetsLiabilitiesCash$400Acco unt

27、s payable$300Acco unts receivable460Salary payable20Supplies10Unearned reve nue120Prepaid in sura nee60Note payable (due in 5 years)400Equipme nt$400Total liabilities840Less: Acc. depr.40360Stockholders' EquityLand400Common stock370Reta ined earnings480Total stockholders' equity850Total asse

28、ts$1,690Total liabilities and stockholders' Equity$1,690Arnold's curre nt ratio for 20X8 isA. 2.11B. 2.09C. 2D. 1.5227 . An in vestme nt in debt securities may be classified as any of the followi ng categories exceptA . trading securitiesB . available-for-saleC . held-to-maturityD . All of t

29、he above are categories for Debt securities28 . The Boulder Co. purchased the following securities in 20X8.The year-end balances of theirtrading and available-for-sale portfolios are given below :Trading portfolio:CostMarket ValueSecurity A$10,000$12,000Security B3,0003,500Total$13 000$15 500Availab

30、le-for-sale portfolio:Security D$5,500$3,000Security E16,00017,000Total$21 500$20 000At what value should the trading securities and the available-for-sale securities be reported on the bala nee sheet?Tradi ng SecuritiesAvailable-for-Sale SecuritiesA$13,000$21,500B$13,000$20,000C$15,500$21,500D$15,5

31、00$20,00029 Net accounts receivable is calculated as：A Sales less sales discounts.B A ccounts receivable plus the allowance for uncollectible accounts. C A ccounts receivable less the allowance for uncollectible accounts. D Accounts receivable less the bad debts expense.30 When the allowance method

32、is used, the entry to write off a customer 's accountA increases bad debts expense.B has no effect on net accounts receivable.C decreases net accounts receivable.D Increases the balance of the allowance for uncollectible accounts.31 Which of the following statements about the statement of cash f

33、lows is true?A The purchase of a held-to-maturity security is considered an investing activity.B Collection of interest is an investing activity.C Sales on account is the largest cash flow from operating activities.D Loaning money to others is a financing activity. Table 1On December 31, 20X8, Troy

34、Inc., had the following accounts and balances( before adjustment) on its books ：Accounts Receivable$80,000Allowance for Uncollectible Accounts2,000 ( credit balance)Net Sales500,00032 Refer to Table 1. Troy estimates that its Bad Debts Expense is 2% of Net Sales. The Bad Debts Expense for 20X8 shoul

35、d be:A $10,000B $12,000 C $8,000 D $1,60033 Refer to Table 1. Troy uses an aging schedule to estimate its uncollectible accounts. The aging schedule and the percentage of each category that is estimated to be uncollectible is given below ：Current$40,0002%1-30 days past due30,00010%Over 30 days past

36、due10,00040%The balance in the Allowance for Uncollectible Accounts after adjusting should be ： A$2,000B $5,800C $7,800D $9,80034 M artinez Co. paid Acme Co. for merchandise with a $2,000, 90-day, 8% note dated April 1. If Martinez pays off the note at maturity, what entry should Acme make on its bo

37、oks at that time?A Cash2,160B .Notes Payable2,000In terest Expe nse160Cash2,160C.Cash2,040Notes Receivable2,000In terest Revenue40D .Cash2,160Notes Receivable2,000In terest Revenue16035. Which accounts would be debited and credited in the entry to record accrued interest on anote receivable?DebitCre

38、ditA .In terest RevenueIn terest ReceivableB.In terest ReceivableIn terest RevenueC.CashIn terest Reve nueD .In terest ReceivableCash36. Given the following information, compute the quick ratio.Salary Payable$4,000Trad ing in vestme nts$10,000Inven tory100,000Equipme nt96,000Accou nts Receivable42,0

39、00Cash14,000Supplies8,000Acco unts Payable62,000A.1B. 2.5C.1.2D . 2.45Notes Receivable2,160with 10 units in inventory, costing37. Teresa Company began the periodperiod the company purchased 100 units at a cost of $5 each. At the end of the period there$5 each. During thewere 13 un its left on hand.

40、What is the correct amount that should appear on the in come statement for the period and on the balance sheet at the end of the period?In come Stateme ntBala nce SheetA.Cost of goods sold, $500Inven tory, $550B.Inven tory, $485Cost of goods sold, $550C.Cost of goods sold, $65In ve ntory, $485D.Cost

41、 of goods sold, $485In ve ntory, $6538. SheridanCorp. has $10,000 of goods onhand at August 31, 20X8. Cost of goods soldaverages 40% of sale revenue. Sales for the month of September are budgeted to be $143,000. If ending inventory at the end of September is budgeted to be $10,500, what amount of in

42、ventory will Sheridan ' managers need to purchase during September in order to meet this goal?A.$57,700B.$86,300C.$56,700D.Cannot be determ ined from the in formatio n give nTable 2Con sider the follow ing data for Reed Compa ny for the curre nt year:Begi nning inven tory55$10$550Purchase Februa

43、ry 42212264Purchase May 152013260Purchase October 204815720UnitsUn it CostTotalSales during the year, 84 units $30 each.39. Refer to Table 2. What is the weighted-average cost per unit?A . $12.33B . $12.37C. $12.50D . $12.4840. Refer to Table 2. What is the cost of ending inventory, assuming the LIF

44、O method is used?A. $889B.$905C. $622D .$1,17241 . Refer to Table 2. What is the cost of goods sold, assu ming the FIFO method is used?A. $889B.$905C .$622D .$1,17242 . Refer to Table 2. What is Reed Company ' gross profit percentage (rounded) for the year,assu ming that ending inven tory totale

45、d $685?A . 56%B . 27%C . 40%D . 44%43 . During a period of rising prices, the inven tory method that yields the highest net in come andthe lowest inven tory value, respectively, will be:A . LIFO and FIFO.B . Weighted-average and LIFO.C . LIFO and LIFO.D . FIFO and LIFO.44 . Pittman Company managemen

46、t omitted $65,000 of inventory when calculating their 20X8ending inven tory. As a result of this error,A . 20X9 total assets will be overstated.B . 20X9 cost of goods sold will be un derstated.C . 20X8 stockholders ' equity will be overstated.D . 20X9 net in come will be un derstated.45 . Which

47、of these stateme nts regard ing GAAP as applied to inven tories is true?A . The disclosure principle requires that a company disclose the inventories method(s) used.B . Accord ing to the con siste ncy prin ciple, the inven tory method can n ever be cha nged.C . The lower-of-cost-or-market rule state

48、s that, in order to be conservative, declines in inventory prices should be recognized in the period in which the goods are actually sold.D . The materiality principle allows GAAP to be ignored when the result is material in amount.46 . The items below represe nt expe nditures related to the con str

49、uct ion of a new office buildi ng:Cost of land$210,000Legal fees relati ng to land purchase$2,000Cost of removi ng old build ing1,000Payme nt of deli nque nt property taxes4,500Gradi ng the site5,000Payme nt to con tractor1,000,000Cost of build ing permits4,500In terest cost in curred duri ng con st

50、ruct ion40,000Cost of pavi ng park ing lot20,000Cost of fencing5,000The proper bala nces for the Land acco unt and the Buildi ng acco unt should be:LandBuildi ngA.$217,000$1,000,000B.$213,500$1,001,000C$222,500$1,044,500D.$220,500$1,041,00047. Which of the following statements is false?A. Accelerate

51、d depreciation methods record more depreciation expense over the life of an asset tha n either the straight-l ine method or the un its-of-product ion method.B. The cost of an asset, its residual value, and its estimated useful life are all used in comput ing depreciati on.C. The units-of-production

52、method is most appropriate for an asset that wears out due to physical use.D. Land is n ever depreciated.Table 3On January 1,20X8, Guard Security Service purchased an alarm monitoring system for $80,000. The system is expected to be used for 4 years, after which it can be sold for $16,000.48. Refer

53、to Table 3. What is the book value of the equipment of December 31,20X9, if Guard uses the straight-l ine method of depreciati on?A. $64,000B. $60,000C. $40,000D. $48,00049. Refer to Table 3. If guard uses the double-declining-balance method of depreciation, what is depreciati on expe nse for 20X9?A

54、. $40,000B. $32,000C. $20,000D. $16,00050. Refer to Table 3. If Guard sells the equipment for $20,000 at the end of the four years, the journal entry to record the sale will include all of the following except aA .$20,000 debit to Cash.B. $4,000 credit to Gain on Sale of Equipment.C. $20,000 credit

55、to Equipment.D. $64,000 debit to Accumulated Depreciatio n.51. Which of the following statements is false?A. Straight-l ine depreciati on can be used for finan cial report ing or for in come tax purposes.B. Double-decli nin g-bala nce depreciati on is the most com mon ly used method of depreciation in financial reporting.C. The units-of-production method results in higher depreciation in the years when an asset is more productive and lower depreciation in the years when an asset is less productive.D. Accelerated depreciation creates a cash advantage over straight-line because higher amoun