Accounting English

—Fundamental Accounting

一、Choice question

1. Accounting information is used by ( D ) A. government regulation agencies B. business C. labor unions D. all of the above

2. A procedural element of accounting is ( B ) A. planning

B. bookkeeping C. control D. auditing

3. Which of the following describe accounting? ( A、B、D ) A. Is the language of business B. Is an information system

C. Is an end rather than a means to an end D. Useful for decision making

4. An accounting process includes all of the following steps except ( B A. analyzing B. planning C. classifying D. summarizing

5. GAAP is very important to ( D ) A. managers B. auditors C. investors D. accountants

6. Accounting is an information system that ( D ) A. processes information into reports B. measures business activities

C. communicates findings to decision-makers D. all of the above

7. Purposes of an accounting system include all of the following except ( A. interpret and record the efforts of business transactions

) D ) B. classify the effects of transactions to facilitate the preparation of reports C. summarize and communicate information to decision makers

D. dictate the specific types of business transactions that the enterprise may engage in

8. ( C ) has the assumption that the business will continue in operation. A. objectivity principle B. accounting entity C. continuing concern D. accounting periods

9. All goods and service purchased are recorded at acquisition cost in order to meet the requirement of ( A、B ) A. cost principle

B. objectivity principle C. time period assumption D. continuing concern concept

10. ( A ) implies the stability of money such as U.S. dollar A. monetary measurement B. accounting entity C. cost principle

D. objectivity principle

11. Under ( C ), the accountants must consider the relative importance of any event.

A. continuing concern B. objectivity principle C. materiality principle D. cost principle

12. Suppose a Target store has cash of $ 50000, receivables of $ 60000, and furniture and fixture totaling $ 200000. The store owes $80000 on account and has a $100000 note payable. How much is the store’s owner equity? ( D ) A. $ 20000 B. $ 310000 C. $ 180000 D. $ 130000

13. Carolina Corporation begins the year with retained earnings of $ 150000. During the year, the corporation earns $ 45000 and declares dividends of $ 14000. Carolina should report ending retained earnings of ( B ) A. $ 150000 B. $ 181000 C. $ 125000

D. $ 195000 E. $ 209000

14. Portions of Home Company’s balance sheet were damaged by spilled coffee. Using your knowledge of balance sheet relationships, calculate the ending Capital Stock account balance. The balance in the Capital Stock account is ( B )

Home Company

Balance Sheet at December 31, 2005

Assets Liabilities

Cash $ 40000 Accounts Payable $ 60000 Inventory $ 100000 Capital Stock ?

Investments $ 100000 Retained Earning $ 80000 $ 240000 $ ? A. $ 80000 B. $ 100000 C. $ 120000 D. $ 150000 E. $ 180000

15. A Target store paid $800 for supplies and purchased additional supplies on account for $ 250. The store paid $ 300 of the accounts payable. What is the balance in the supplies account? ( C ) A. $ 500 B. $ 750 C. $ 1050 D. $ 1350

二、Fill in the blank

1. The left side of an account is used to record debit .

2. The accounting equation is: Aassets= Liabilities + Owners’ Equity . “Dr.” stands for debit , while “Cr.” is the abbreviation for credit . 3. Liabilities are debts of a business..

4. The account of accounts payable used to show what the business owes the bank.

5. Borrowing cash from a bank does not belong to assets ; it simply belongs to liability.

6. Decreases in assets are entered on the right（credit）side of the account.

7. The term expense generally means a decrease in assets or an increase in liabilities in order to earn more revenue.

8. If total expense of the period exceeds total revenue, the result is called net loss. 9. Asset, liability and owners’_equity are called permanent accounts because they will have ongoing balances from one accounting period to the next.

三、Key word,phrases,and special terms

1..accounts receivable 应收账款 2. owner’s equity 所有者权益 3.chart of accounts 会计科目表 4.T account 丁字账户 5 double-entry account 复式账户 6.sales on account 赊销

7 purchases on account 赊购 8.accounts payable 应付账款 9 posting 过账 10.miscellaneous expense杂项费用 11 借方 debit 12.贷方 credit 13 收入 revenue 14.费用 expense 15 负债 debts

四、Translation

1、Under the going concern or continuity concept, accountants assume that the business will continue operating for the foreseeable future.

在持续经营假设下，会计人员假定企业在可以预见的将来持续经营。

2、The relationship among assets, liabilities, and owners’ equity can be expressed in the accounting equation.

资产、负债和所有者权益之间的关系可以用会计等式表示。

3、The total figure for assets always equals the total figure for liabilities and owners’ equity.

资产总额总是与负债和所有者权益总额相等。

4、The cost principle is derived, in large part, from the principle of objectivity. 成本原则主要是在客观性原则的基础上发展而来的。

五、Calculate

P36

1.(1) Aassets= Liabilities + Owners’ Equity =(1.8+1.6)*(1+16.6%) =3.9644

(2) Aassets= Liabilities + Owners’ Equity

Owners’ Equity = Aassets — Liabilities

Stockholders’ Equity = Aassets — Liabilities + Net Income —Dividends

and others Decreases in Stockholders’ Equity =12.2— 6.7 + 2 — 0.4 =7.1

P55.Case

（3）Net Income = Revenues — Expenses

=Service Revenues—Advertising Expense—Secretary’s Salary—Office Rent = 8800 — 700 —1400 — 1150 = 5550

Net income for this month of operations is $5550. Because Net income $5550 > $5000,so I recommend that Bernina continue in business.