第1題Accountingaimstoproducerelevant,reliable,andcomparableinformationaboutanorganization'sbusinessactivities.()第2題Externalusersofaccountinginformationusuallyhavemoreinformationabouttheorganizationthaninternalusers.()第3題Thebusinessentityassumptionmeansthatabusinessisaccountedforseparatelyfromotherbusinessentities.()第4題Revenuesshouldberecognizedwhencashisreceived.()第5題Theexpenserecognitionprinciplemeansthatacompanyrecognizetheexpenseintheperiodinwhichtherelatedrevenuesaregenerated.()第6題Externalusersofaccountinginformationincludeallofthefollowingexcept:____?ARegulators.BShareholders.CCustomers.DMarketingmanagers.第7題Thegroupthatsetspreferredaccountingpracticesintheglobaleconomyiscalledthe:()AAICPABIASBCSECDFASB第8題Theaccountingprinciplethatrequiresaccountingnumberstobebasedonactualcostsisthe:____AMeasurement(Cost)principle.BGoing-concernassumption.CRealizationprinciple.DBusinessentityassumption.第9題Theassumptionthatstatesanybusinessneedstobeaccountedforseparatelyfromotherbusinessentities,includingitsownerorownersis:____ATime-periodassumption.BBusinessentityassumption.CMonetaryunitassumption.DGoing-concernassumption.第10題Ifacompanyisconsideringthepurchaseofanequipmentthatwasacquiredbythesellerfor15,000,isofferedforsaleat50,000,isconsideredbythepurchaseraseasilybeingworth25,000,andispurchasedfor23,000,thelandshouldberecordedinthepurchaser'sbooksat:A$15,000.B$23,000.C$50,000.D$25,000.第1題Ownerwithdrawalsbytheownerareexpenses.()第2題Thepurchaseoflandandmachineswillgenerallyberecordedinthesameledgeraccount.()第3題Revenuesincreaseequity.()第4題Ownerinvestmentsdecreaseequity.

()第5題Adebitentryalwaysdecreasesanaccount.

()第6題Theaccountingprocessbeginswith:

____?AAnalyzingbusinesstransactionsandsourcedocuments.BAnalyzingaccounts.CPreparingfinancialstatementsandotherreports.DPreparingthetrialbalance.第7題Whichofthefollowingisusedtorecordtheowner'sinvestmentsinabusiness?

()AWithdrawalsaccount.BRevenueaccount.CCapitalaccount.DLiabilityaccount.第8題WhichofthefollowingisNOTanassetaccount:

____ACashBServicesRevenueCBuildingsDEquipment第9題WhichofthefollowingisNOTaliabilityaccount:

____AAccountsPayablesBRentPayablesCUnearnedRevenuesDUtilityExpenses第10題Whichofthefollowingiscorrectaboutacredit?____AAlwaysdecreasesanaccount.BIstheleft-handsideofaT-account.CAlwaysincreasesanaccount.DIstheright-handsideofaT-account.Chapter3Quiz第1題Adjustingentriesleadtoabettermatchingofrevenuesandexpensesfortheperiod.

()第2題Adjustingentriesaremadeafterthepreparationoffinancialstatements.()第3題Twomainaccountingprinciplesusedinaccrualaccountingarematchingprincipleandfull

disclosureprinciple.

()第4題Thematchingprinciplerequiresthatexpensesgetrecordedinthesameaccountingperiodastherevenuesthatareearnedasaresultoftheexpenses,notwhencashispaid.

()第5題Adjustingentriesaremadeprimarilytocorrectaccountingerrors.

()第6題Theaccountingprinciplethatrequiresrevenuetoberecordedwhenearnedisthe:____?AMatchingprinciple.BRevenuerecognitionprinciple.CFulldisclosureprinciple.DMeasurementprinciple.第7題Adjustingentries:()AAffectonlyincomestatementaccounts.BAffectonlystatementoffinancialpositionaccounts.CAffectbothincomestatementandstatementoffinancialpositionaccounts.DAffectonlycashflowstatementaccounts.第8題Thesystemofpreparingfinancialstatementsbasedonrecognizingrevenueswhenthecashisreceivedandrecognizingexpenseswhenthecashispaidiscalled:____AAccrualbasisaccounting.BOperatingcycleaccounting.CCashbasisaccounting.DCurrentbasisaccounting.第9題Adjustingentriescouldbepreparedforeachofthefollowingexcept:____APrepaidexpenses.BDepreciation.COwnerwithdrawals.DUnearnedrevenues.第10題Unearnedrevenueisreportedas:

____AArevenueonthestatementoffinancialposition.BAliabilityonthestatementoffinancialposition.CAnassetonthestatementoffinancialposition.DAnoperatingactivityonthestatementofcashflows.Chapter4Quiz第1題Intheaccountingcycle,thefirstfivestepsinclude1)analyzingtransactions,2)journalizing,3)posting,4)adjusting,and5)preparingfinancialstatements.()第2題Theasset,liabilityandrevenueaccountswillcarrytheirbalancesintothenextaccountingperiodandshouldnotbeclosed.()第3題Alltemporaryaccountsareclosedattheendofeachaccountingperiod.()第4題Accountsreceivablesandprepaidexpensesareexamplesofcurrentassets.()第5題Theusualprocesstoclosetherevenueaccountistocreditrevenueaccountanddebitincomesummaryaccount.()第6題Whichofthefollowingstatementsabouttemporaryaccountisnotcorrect:____?AAlltemporaryaccountsareclosedattheendofeachaccountingperiod.BInthepost-closingtrialbalance,thetemporaryaccountsareresettozeroendingbalances.CRevenueandowner’scapitalaccountareexamplesoftemporaryaccounts.DIncomesummaryisatemporaryaccountusedfortheclosingprocess.第7題SophiaSun,theownerofaproprietarycompanySophiaLaundryService,withdrew$12,000fromthebusinessduringthecurrentyear.Theclosingentryforthewithdrawalsaccountattheendoftheyearis:()ADebitSophiaSun,Withdrawals12,000;creditCash12,000.BDebitSophiaSun,Capital12,000;creditSophiaSun,Withdrawals12,000.CDebitIncomeSummary12,000;creditSDebitSophiaSun,Withdrawals12,000;creditCash12,000.

ophiaSun,Withdrawals12,000.DDebitSophiaSun,Capital12,000;creditIncomeSummary12,000.第8題ThefollowinginformationisavailablefortheDanhuangPetService.Aftertheclosingprocess,whatwillbethebalanceintheLancyAwn,Capitalaccount?

Totalrevenues........................$200,000

Totalexpenses........................80,000

LancyAwn,Capital..................100,000

LancyAwn,Withdrawals.........10,000____A90,000B120,000C190,000D210,000第9題Whichofthefollowingisthepurposeofusingincomesummaryaccount:

____AToclosetherevenueandexpenseaccounts.BToclosealltemporaryaccounts.CToadjustandupdatetherevenueaccount.DToreplacetheincomestatementincertainsituations.第10題Whichofthefollowingindicatesthatanerrormustoccurredinthepreparationand/orpostingofclosingentries?____AAllrevenue,expenseandwithdrawalsaccountshavezerobalances.BTheincomesummaryaccountisdebitedfortheamountofthenetlossfortheperiod.CTheowner’scapitalaccountisdebitedfortheamountofnetprofitfortheperiod.DOnlypermanentaccountshavenon-zerobalancesonthepost-closingtrialbalance.Chapter5Quiz第1題Amerchandisingcompany'soperatingcyclestartswithsellingmerchandiseandendswiththecollectingcashfromthesale.()第2題Theperpetualinventorysystemupdatestheinventoryaccountforeachmerchandisepurchaseorsale.()第3題Thecreditterm1/10,n/60suggeststhatthebuyeronlyneedstopay99%oftheinvoicepriceifthebuyerpayswithin10daysoftheinvoicedate.()第4題Purchasediscountshouldberecordedasthecreditofcostofsalesaccount.()第5題AsellerrecordsthecostsofshippinggoodsinadeliveryexpenseaccountifthefreighttermisFOBshippingpoint.()第6題Acompanyhadsalesof300,000,itprovided20,000ofsalesallowancestoitscustomers,anditsgrossprofitis180,000.Costofgoodssoldis:____?A$20,000B$100,000C$120,000D$280,000第7題Amerchandisingcompany:

()AMakesprofitsfromprovidingservices.BMakesprofitsfromcommissiononly.CMakesprofitsfromproducingandsellinggoods.DMakesprofitsfrompurchasingandsellingmerchandise.第8題Allofthefollowingstatementsaretrueaboutgrossprofitexcept:

____AGrossprofitiscalculatedasnetsaleslesscostofgoodssold.BGrossprofitcanbefurtherusedtocalculatenetprofit.CGrossprofitisnotcalculatedontheincomestatementofmerchandisingcompanies.DGrossprofitisnotincreasedifthecompanyreducesitsdeliveryexpense.第9題PuddingToyCo.purchasesmerchandisewithacatalogpriceof$100,000.Theselleroffersa25%tradediscount.Theselleralsoofferscredittermsof1/10,n/30.Assumingnoreturnsweremadeandthatpaymentwasmadeduringthediscountperiod,whatisthenetcostofthemerchandiseforPuddingToyCo.?____A$75,000.B$74,250.C$99,000.D$24,750.第10題Acompany’snetsalesandcostofsalesare80,000and30,000,respectively.Itsnetprofitis$20,000.Thecompany'sgrossprofitandtotalotherexpensesare________and___________,respectively.____A50,000;30,000B50,000;70,000C30,000;50,000D60,000;10,000Chapter6Quiz第1題Goodsintransitshouldbeincludedinthebuyer’sinventorywhengoodsareshippedFOBdestination.()第2題Goodsonconsignmentaregoodsownedbytheconsigneesotheyshouldbecountedastheconsignee’sinventory.()第3題Thecostofinventoryincludesinvoicecostminusanydiscountandallowance,andplusanyincidentalcostsnecessarytoputitinaplaceandconditionforsale.()第4題Whenpurchasepriceisrising,FIFOwillyieldhighergrossprofitandnetprofitthanweightedaveragecost.()第5題Anunderstatementofthebeginningbalanceofinventorywillresultinanunderstatementofcostofsalesandanoverstatementofnetprofit.()第6題Allofthefollowingshouldbeincludedinthecostofinventoryaccountexcept:____?ADamagedinventorythatcannotbesoldBCostsincurredinanagingprocess.CImportduties.DStoragecost.第7題

Takingaphysicalcountofinventory:

()AAreonlyusedbyveryfewcompanies.BArenecessarytoadjusttheinventoryaccount.CMustbetakenatleastonceamonth.DArenotnecessaryundertheperpetualsystem.第8題Iftheendingbalanceofinventoryaccountisreportedinerror,itcancauseamisstatementinallofthefollowingaccountsexcept:

____AGrossprofit.BNetprofit.CNetsales.DCurrentassets.第9題IFRSallowsallofthefollowingmethodstoassigncoststoinventoryandcostofgoodssoldexcept:

____ALIFOmethod.BFIFOmethod.CSpecificidentificationmethod.DWeightedaveragecostmethod.第10題ABCcorporationhadthefollowingtransactionsaboutinventoryduringthecurrentyear:Beginninginventory:11unitsat80January:purchased20unitsat100May:sold15unitsat200August:purchased16unitsat150November:sold20unitsat300

OnDecember31,the12unitsremainingintheendinginventoryconsistedof3fromJanuarypurchaseand9fromAugustpurchase.Usingthespecificidentificationmethod,whatisthecostoftheendinginventory?

____A$1,800B$980C$1,457D$1,650Chapter7Quiz第1題Internalcontrolsincludepoliciesandproceduresmanagersusetoprotectassets,ensurereliableaccounting,promoteefficientoperations,andurgeadherencetocompanypolicies.

()第2題Withtheuseofcomputersystems,therewillbenoneedtoreviewrecordsenteredintothesystems.()第3題Cashdisbursementsshouldalwaysbemadebycheck,withnoexceptions.()第4題Accordingtoseparationofdutiesprinciple,afirmshoulddivideresponsibilityforatransactionoraseriesofrelatedtransactionsbetweentwoormoreindividualsordepartments.()第5題Whenthebankreconciliationisprepared,thecompanyshouldmakeadjustingentriesforthereconcilingitemsonbothsidesofthereconciliation.()第6題Allofthefollowingstatementsaboutinternalcontrolsaretrueexcept:____?AInternalcontrolsaredesignedtoprotectcompanyassets.BInternalcontrolsareusedtoensurecompliancewithcompanypolicies.CInternalcontrolshavelimitationsanddonotprovideguarantees.DInternalcontrolsarenotaffectedbythecost-benefitprinciple.第7題Allofthefollowingareprinciplesofeffectivecashmanagementexcept:()AKeeponlynecessarylevelsofassets.BEncouragecollectionofreceivables,andoffersalesdiscounts.CLeaveexcesscashavailableforunexpectedexpenditures.DDelaypaymentofliabilities.第8題Thefundamentalinternalcontrolprinciplesdoesnotinclude:

____AEstablishresponsibilities.BMaintainminimalrecords.CPerformregularreviews.DBondkeyemployees.第9題Whichofthefollowingisanimpactoftechnologyoninternalcontrols?____AEliminationoftheneedforregularreviews.BEliminationofseparationofduties.CEliminationoffraudanderror.DMoreextensivetestingofrecords.第10題Cashequivalentsinclude:

____ACheckingaccounts.Bchecks.CMoneymarketfund.DTreasurybillsduein2years.Chapter8Quiz第1題Apromissorynoteisawrittenpromisetopayaspecifiedamountofmoneyonorbeforeastatedfuturedate.()第2題CreditsalesarerecordedbycreditingAccountsReceivable.()第3題Sellersgenerallyprefertoreceivenotesreceivableratherthanaccountsreceivablewhenthecreditperiodislongandthereceivableisforalargeamount.

()第4題Theadvantageoftheallowancemethodofaccountingforbaddebtsisthatitidentifiesthespecificcustomerswhowillnotpaytheirbills.()第5題AllowanceforDoubtfulAccountsisacontraasset;itsbalanceisaddedtoAccountsreceivable.()第6題Thematuritydateofanotereceivable:____?AIsthedayofthecreditsale.BIsthedaythenotewassigned.CIsthedaythenoteisduetoberepaid.DIsthedateofthefirstpayment.第7題Acompanyreceivesa10%,120-daynotefor$1,500.Thetotalinterestdueonthematuritydateis:

(Use360daysayear.)()A$50B$150C$75D$37.5第8題Theallowancemethodthatassumesagivenpercentofacompany'screditsalesfortheperiodisuncollectibleis:____AThepercentofsalesmethod.BThepercentofaccountsreceivablemethod.CTheagingofaccountsreceivablemethod.DDirectwrite-offmethod.第9題CompanyAmakesa$60,000,60-day,12%cashloantocompanyB.Thenoteandinteresttobecollectedatmaturityis:

(Use360daysayear.)A$60,000.B$1,200.C$61,200.D$67,200.第10題Acompanyhas90,000inoutstandingaccountsreceivableanditusestheallowancemethodtoaccountforuncollectibleaccounts.Experiencesuggeststhat4%ofoutstandingreceivablesareuncollectible.Thecurrentbalance(beforeadjustments)intheallowancefordoubtfulaccountsisan$800debit.ThejournalentrytorecordtheadjustmenttotheallowanceaccountincludesadebittoBadDebtsExpensefor:____A$3,600B$3,568C$2,800D$4,400Chapter9Quiz第1題Plantassetsareusedinoperationsandhaveusefullifethatextendsovermorethanoneaccountingperiod.()第2題Aplantasset'susefullifeisthelengthoftimeitisproductivelyusedinacompany'soperations.()第3題Depreciationishigherinearlieryearsandincomeislowerinthelateryearswhenusingstraight-lineversusacceleratedmethods.()第4題Doubledecliningbalancemethodyieldslargerdepreciationexpenseintheearlyyearsofanasset'slifeandlessdepreciationexpenseinlateryears.()第5題Revenueexpendituresareadditionalcostsofplantassetsthatdonotsignificantlyincreasetheassets'lifeorproductivecapabilities.()第6題Onecharacteristicofplantassetsisthattheyare:____?ACurrentassets.BUsedinoperations.CNaturalresources.DIntangible.第7題Depreciation:()AMeasuresthedeclineinmarketvalueofanasset.BIstheprocessofallocatingthecostofaplantassettoexpense.CIsanoutflowofcashfromtheuseofaplantasset.DIsappliedtoland.第8題Intangibleassetsdo

not

include:____APatents.BCopyrights.CTrademarks.DLand.第9題Thedepreciationmethodthatallocatesanequalportionofthetotaldepreciablecostforaplantassettoeachunitproducediscalled:____AAcceleratedmethod.BDeclining-balancemethod.CStraight-linemethod.DUnits-of-activitymethod.第10題Tocapitalizeanexpenditureisto:____ADebitanexpenseaccount.BCreditanexpenseaccount.CCreditanassetaccount.DDebitanassetaccount.Chapter10Quiz第1題Acompanycannothavealiabilityiftheamountoftheobligationinvolvesuncertainty.()第2題SalesTaxesPayableisdebitedandCashiscreditedwhencompaniessendsalestaxescollectedfromcustomerstothegovernment.()第3題Apotentiallawsuitisdisclosedinthenoteswhentheclaimcannotbereasonablyestimatedanditisreasonablypossible.()第4題Ashort-termnotepayableisawrittenpromisetopayaspecifiedamountonastatedfuturedatewithinthreeyearsortheoperatingcycle,whicheverislonger.()第5題Thewagepayableisanexampleofacontingentliabilityfortheemployer.()第6題Obligationstobepaidwithinoneyearorthecompany'soperatingcycle,whicheverislonger,are:____?ACurrentassets.BCurrentliabilities.CLong-termassets.DLong-termliabilities.第7題Accountspayableare:()AAmountsowedtosuppliersforproductsorservicespurchasedoncredit.BAmountsreceivedinadvancefromcustomersforfutureproductsorservices.CEstimatedliabilities.DNotusuallydueonspecificdates.第8題Contingentliabilitiesmustberecordedif:____AThefutureeventisprobableandtheamountowedcanbereasonablyestimated.BThefutureeventisremote.CThefutureeventisreasonablypossiblebutnotestimable.DThefutureeventisprobablebutnotestimable.第9題Thedifferencebetweentheamountreceivedfromissuinganotepayableandtheamountpaidbackatmaturityis:____AInterest.BPrincipal.CFaceValue.DAccountsPayable.第10題OnDecember1,SmileCompanysigneda90-day,6%notepayable,withafacevalueof$15,000.WhatamountofinterestexpenseisaccruedatDecember31onthenote?(Use360daysayear.)____A$0B$75C$900D$450

Chapter11Quiz第1題Abond'sparvalueisnotnecessarilythesameasitsmarketvalue.()第2題Paymentsonaninstallmentnoteincludetheaccruedinterestexpenseplusaportionoftheamountborrowed.()第3題Thecarryingvalueofabondiscomputedasthefacevalueminusanyunamortizeddiscountorplusanyunamortizedpremium.()第4題Thecontractrateofinterestistheratethatborrowersarewillingtopayandlendersarewillingtoacceptforaparticularbondanditsrisklevel.()第5題Periodicinterestpaymentsonbondsaredeterminedbymultiplyingtheparvalueofthebondbythebond'scontractrate.()第6題Thecarryingvalueofbondsatmaturityalwaysequals:____?Atheamountofcashoriginallyreceivedinexchangeforthebonds.Btheparvalueofthebond.Ctheamountofdiscountorpremium.Dtheamountofcashoriginallyreceivedinexchangeforthebondsplusanyunamortizeddiscountorlessanypremium.第7題Whenabondsellsatapremium:()AThecontractrateisabovethemarketrate.BThecontractrateisequaltothemarketrate.CThecontractrateisbelowthemarketrate.DItmeansthatthebondisazerocouponbond.第8題MorganCompanyissues9%,20-yearbondswithaparvalueof$750,000thatpayinterestsemiannually.Theamountpaidtothebondholdersforeachsemiannualinterestpaymentis.____A$60,000.B$33,750.C$67,500.D$30,000.第9題OnJanuary1,ParsonFreightCompanyissues7%,10-yearbondswithaparvalueof2,000,000.Thebondspayinterestsemiannually.Themarketrateofinterestis8%andthebondsellingpricewas1,864,097.Thebondissuanceshouldberecordedas:____ADebitCash2,000,000;creditBondsPayable2,000,000.BDebitCash1,864,097;creditBondsPayable1,864,097.CDebitCash2,000,000;creditBondsPayable$1,864,097;creditDiscountonBondsPayable135,903.DDebitCash1,864,097;debitDiscountonBondsPayable135,903;creditBondsPayable2,000,000.第10題TheDiscountonBondsPayableaccountis:____AAliability.BAcontraliability.CAcontraexpense.DAcontraequity.Chapter12Quiz第1題Acorporationisalegalentitythatisseparatefromitsowners.()第2題Apreemptiverightmeansshareholderscanpurchasetheirproportionalsharesinfutureissuanceofthecompany’sordinaryshares.()第3題Thesharepremiumisthetotalamountofcashthatthecorporationreceivesfromitsstockholdersinexchangeforitsstock.()第4題Thedeclarationofcashdividendsincreasesretainedearnings.()第5題Astocksplitincreasesthestockholders'equity.()第6題CompanyXhadretainedearningsof400,000atthebeginningofafiscalyear.Duringtheyear,ithadnetincomeof50,000anddeclaredandpaidcashdividendsof20,000.Theendingbalanceinretainedearningsequals:____?A$400,000.B$450,000.C$430,000.D$470,000.第7題CompanyAissued2,500sharesofitsnoparordinarystockforcash.Thepriceis$10pershare.Theentrytorecordthistransactionwouldbe:()ADebitCash25,000;creditSharePremiuminExcessofParValue25,000.BDebitCash25,000;creditOrdinaryStock25,000.CDebitOrdinaryStock25,000;creditCash25,000.DDebitTreasuryStock25,000;creditCash25,000.第8題Acompanyissued20,000sharesofits1parvalueordinarystockforcash.Thepriceis10pershare.Theentrytorecordthistransactionwouldbe:____ADebitCash200,000;creditOrdinaryStock20,000;creditSharePremium,OrdinaryStock180,000.BDebitCashfor200,000;creditOrdinaryStock200,000CDebitOrdinaryStock20,000;debitSharePremium,OrdinaryStock180,000;creditCash200,000.DDebitOrdinaryStock20,000;creditCash20,000.第9題Acorporationissued6,000sharesofits1parvalueordinarystockinexchangeforlandthathasamarketvalueof84,000.Theentrytorecordthistransactionwouldinclude:____AAdebittoOrdinaryStockfor$6,000.BAdebittoLandfor$6,000.CAcredittoLandfor$84,000.DAcredittoSharePremium,OrdinaryStockfor$78,000.第10題Whichoneofthefollowingdatesdoesnotrequireaccountingentries?____ADateofdeclaration.BDateofrecord.CDateofpayment.DNoneoftheabove.Chapter13Quiz第1題Onthestatementofcashflows,cashreceiptsandpaymentsareclassifiedasoperating,investing,orfinancingactivities.()第2題Thepurchaseandsaleoflong-termassetsisafinancingactivity.()第3題Cashpaidformerchandiseisanoperatingactivity.()第4題Acompanypurchasedamachinefor120,000bypaying60,000andsigninga60,000notepayable.Thecompanyshouldreporttheentire120,000cashoutflowinthefinancingsectionofthestatementofcashflows.(

)第5題Thereportingofinvestingactivitiesinthestatementofcashflowsisident