会计英语相关习题Chapter 01Financial Statements and Business Decisions True / False Questions1。Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers.TrueFalse2.Assets on the balance sheet are recorded at market value or replacement cost.TrueFalse3。In accounting and reporting for a business entity， the accounting and reporting for the business must be kept separate from other economic affairs of its owners.TrueFalse4.The accounting period in which service revenue is recognized （i.e., revenue for services rendered） is generally the period in which the cash is collected.TrueFalse5.Total assets are 70，000， total liabilities， $40,000 and contributed capital is $20，000; therefore, retained earnings are $15，000。TrueFalse6。The payment of a cash dividend to stockholders increases stockholders equity.TrueFalse7.The accounting model for the balance sheet is: Assets + Liabilities = Stockholders Equity。TrueFalse8.A decision maker who wants to understand a companys financial statements must carefully read the notes to the financial statements because the notes provide useful supplemental information.TrueFalse9。The financial statement that shows an entitys economic resources and its liabilities is the statement of cash flows.TrueFalse10。Companies prepare financial statements at the end of each year and more often as needed.TrueFalse11.A note payable is a borrowing instrument that generally does not involve the payment of interest。TrueFalse12.The amount of cash paid by a business for office utilities would be reported on the statement of cash flows as an operating activity。TrueFalse13.The income statement equation is Expenses Revenues = Net Income.TrueFalse14。Generally accepted accounting principles almost never change once created.TrueFalse15。The Financial Accounting Standards Board (FASB) is an agency of the federal government that establishes generally accepted accounting principles for businesses.TrueFalse16.Since 2002， there has been substantial movement to develop international financial reporting standards。TrueFalse17.An audit guarantees that the financial statements are free of all misstatements.TrueFalse18.An auditor who fails to detect a material misstatement of a businesss financial statements may be sued by anyone who suffered a loss from relying on the financial statements.TrueFalse19.In terms of economic importance， partnerships are the dominant form of organization in the U。S. because of their ease of formation.TrueFalse20.One of the advantages of a corporation when compared to a partnership is the limited liability of the owners.TrueFalseMultiple Choice Questions21.The primary purpose of the balance sheet is toA。measure the net income of a business up to a particular point in time。B.report the difference between cash inflows and cash outflows for the period.C.report the financial position of the reporting entity at a particular point in time.D。report the current value of the business。22。The Beta Corporation had 2009 revenues of 200，000, expenses of $140,000, and an income tax rate of 30 percent。 Net income after taxes would beA.60，000。B。$18,000。C。$42,000.D。$48，000。23。Atlantic Corporation reported the following amounts at the end of the first year of operations： contributed capital 100,000; sales revenue 400，000; total assets $300，000； $20，000 dividends； and total liabilities 160，000。 Retained earnings and total expenses would beA。retained earnings 40,000 and expenses $340,000。B.retained earnings $60，000 and expenses $320，000.C.retained earnings $140,000 and expenses 240,000.D.retained earnings $160,000 and expenses 220,000。24.The financial statement that reports the financial position of a business is theA。income statement.B。balance sheet。C.statement of cash flows.D.footnotes to the financial statements。25.Which of the following reports the cash inflows, cash outflows, and change in cash for period？A。Income statement。B。Balance sheet。C.Statement of cash flows.D.Auditors report.26.For a business, a supplierA.is a company or individual that owns shares of the business。B。is a company or individual to whom the business sells goods or services.C.provides goods and services used by the business.D.makes loans to the company to help finance its activities。27。For a business， an example of an internal decision maker isA.a loan officer at a bank。B。a supplier who sells goods to the company on account。C。one of the businesss longterm customers。D。one of the businesss managers。28.Financial accountingA。provides