income statement by_nature

外文文献翻译原文：Accounting for deferred taxes under NZ IAS 12A “balance sheet”approachThe most significant change in NZ IAS 12 from SSAP-12 is that the basis used to account for deferred taxes follows a balance sheet approach as opposed to an income statement approach. To calculate deferred taxes under the balance sheet approach, we must determine an entity’s temporary differences. Temporary differences are the differences between the carrying amount of an asset or liability in the balance sheet and its tax base (i.e., the amount attributed to the same asset or liability for tax purposes).In contrast, to calculate deferred taxes under the income statement approach, we must determine an entity’s timing differences. Timing differences arise when revenue and expense items are recognized in the calculation of accounting profit before or after they are included in the calculation of taxable profit.The focus of the deferred tax calculation in the balance sheet approach is on items that appear in the balance sheet, while for the income statement approach it is on items that appear in the income statement. However, since the income statement is a by-product of the balance sheet, all timing differences by definition must be a component of temporary differences (see paragraph 17 of NZ IAS 12 which hints at this point).In some situations, the amount of temporary differences will equal the amount of timing differences in a period. However, the amount of timing differences cannot be greater than the amount of temporary differences. This is because not all asset and liability items in the balance sheet necessarily have an effect that passes through the income statement and which would impact on deferred taxes. For example, a temporary difference, but not a timing difference, can arise when an asset is revalued upwards (with the increment in value recognized in equity and not in the income statement), but there is no equivalent adjustment made for tax purposes (see later for amore detailed discussion of how this is accounted for under NZ IAS 12).Therefore, the main consequence of the balance sheet approach for entities when they adopt NZ IAS 12 is that it can capture a much wider range of items that will give rise to the recognition of deferred taxes in the financial statements. Further, the change to a balance sheet approach is consistent with the asset-liability orientation to financial reporting that is advocated for by the International Accounting Standards Board in its “Framework for the Preparation and Presentation of Financial Statements”and the New Zealand Institute of Chartered Accountants (formerly the Institute of Chartered Accountants of New Zealand) in its “Statement of Concepts for General Purpose Financial Reporting.”Recognition of all temporary differences-no “partial” recognitionNZ IAS 12 requires a deferred tax liability to be recognized for all taxable temporary differences. Taxable temporary differences result in taxable amounts that impact the taxable profit of future periods when the carrying amount of an asset or liability is recovered or settled. Further, NZ IAS 12 requires a deferred tax asset to be recognized for all deductible temporary differences, although this is subject to certain criteria. Deductible temporary differences result in amounts that are deductible in determining the taxable profit of future periods when the carrying amount of an asset or liability is recovered or settled. Therefore, while some very limited exceptions apply, the requirement in NZ IAS 12 is that all temporary differences (taxable and deductible) are to be recognized as deferred taxes (liability and asset, respectively) in the financial statements.In general, when all temporary differences are recognized as deferred tax, this is often referred to as tax effect accounting under a “comprehensive”basis. When only some, but not all, temporary differences are recognized as deferred tax, this is often referred to as tax effect accounting under a “partial”basis. Using this terminology and distinction, NZ IAS 12 can be viewed as following a comprehensive basis. On the other hand, SSAP-12 allows entities the choice to recognize deferred taxes either under a comprehensive basis or under a partial basis, although the preferred option is comprehensive. As such, this provides a significant variation between the twoaccounting standards because the partial basis is not allowed in NZ IAS 12.By and large the partial basis arose out of concerns regarding the recognition of deferred tax liabilities when tax effect accounting under the comprehensive basis was used. These concerns centre on the issue of whether taxable temporary differences “reverse”. There are situations where the temporary differences created under the comprehensive basis may cause an entity to report on its balance sheet a deferred tax liability that appears never to be settled and which may be ever growing in nature. This can occur if an entity has high investments and/or a policy of continually investing in depreciable assets. In such a case, the taxable temporary differences may not reverse because new temporary differences are created and recognized that more than offset any reversing temporary differences from a prior period. Hence, this gives the impression that settlement of the deferred tax liability can be postponed indefinitely. The partial basis would overcome this concern by recognizing as deferred taxes in the financial statements only those temporary differences that are expected to have a future cash flow effect (i.e., those that are expected to reverse).While many New Zealand entities currently use the comprehensive basis and recognize all timing differences as deferred tax, NZ IAS 12 will cast that net wider by requiring all temporary differences to be recognized. The effect of this on entities will be small if the total amount of temporary differences is similar to the total amount of timing differences. But the effect could be substantial for entities that currently use the partial basis under SSAP-12 and have a history of not recognizing deferred taxes from all timing differences. These unrecognized amounts will now have to be recognized, and for some entities, this will not be a trivial exercise. To illustrate, consider what happened to Air New Zealand when it reported a change in its accounting policy for income taxes from the partial basis to the comprehensive basis for its financial year ending 2000, albeit under the requirements of SSAP-12. The financial effect of doing so increased Air New Zealand’s deferred tax liability by $786 million, an amount that had previously been unrecognized. It also significantly contributed to Air New Zealand’s bottom line net loss of$600 million and substantially increased its debt to total assets ratio from 34 to 66 percent for its 2000financial year. Interestingly, Air New Zealand cited that its main reason for changing to the comprehensive basis was to bring its books in line with international accounting standard trends. More recently, Wong and Wong6 provide descriptive evidence that deferred taxes from unrecognized timing differences from a sample of New Zealand’s largest companies in 2002 and 2003 are not small.NZ IAS 12’s requirement to recognize all temporary differences as deferred tax will fuel further debate on the merits of tax effect accounting under the comprehensive and partial bases. The resolution of this debate is far from certain, especially given recent research findings that entities choose partial over the comprehensive basis because it provides more accurate and relevant information about the deferred tax figures presented in the financial statements when there are temporary differences that are not expected to reverse.Deferred tax assetsNZ IAS 12 and SSAP-12 both allow the recognition of deferred tax assets. However, the recognition conditions in NZ IAS 12 differ from those in SSAP-12. In NZ IAS 12, the recognition of a deferred tax asset depends on “the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized”(paragraph 24 of NZ IAS 12). In SSAP-12, the recognition of a deferred tax asset depends on “the extent that there is virtual certainty of its recovery in future periods”(paragraph 4.20 of SSAP-12). Hence, the recognition conditions in NZ IAS 12 regarding deferred tax assets appear to be less stringent than those in SSAP-12.The main consequence of this change in NZ IAS 12 is that entities are likely to recognize and report a higher incidence of deferred tax assets on their balance sheet than what we have seen under SSAP-12. However, NZ IAS 12 also requires that entities be conservative in their measurement of the deferred tax asset and they must review the carrying amount at each balance date. If there is a probability that there will no longer be sufficient taxable profits available to allow the benefit of part or the entire deferred tax asset to be utilized, then the carrying amount of the deferred tax asset must be reduced accordingly (paragraph 56 of NZ IAS 12). In addition, thefinancial effect of recognizing a deferred tax asset (or for that matter, a deferred tax liability) may be reduced if an entity offsets the deferred tax assets and deferred tax liabilities that they present on the balance sheet (paragraph 74 of NZ IAS 12). Revalued assetsAn interesting issue that arises in NZ IAS 12 concerns the revaluation of assets. In this situation, when an asset is revalued upwards in the financial statements, but there is no similar adjustment to the tax base of the asset, this creates a taxable temporary difference that requires the recognition of a deferred tax liability. In comparison, no deferred tax liability would be recognized in the balance sheet for an asset that is revalued under the income statement approach in SSAP-12. Generally, this is because of the way in which the depreciation charge from the revalued asset is handled in the income statement for accounting and tax purposes. While the depreciation expense for accounting purposes is based on the revalued amount, depreciation expense that is deducted for tax purposes must still be based on the asset’s original cost. This means that the depreciation expense that arises from the revaluation increment never has a tax effect (i.e., a timing difference does not arise from that part of the depreciation expense related to the revalued asset) under SSAP-12. Hence, the change in requirement in NZ IAS 12 could increase significantly the amount of the deferred tax liability that is recognized on the balance sheet because entities revalue their assets regularly.The measurement of the deferred tax liability from the revaluation in NZ IAS 12 depends on the manner in which the carrying amount of the asset is expected to be recovered at balance date (see paragraph 52 of NZ IAS 12, in particular example B) - that is, whether the asset is expected to be recovered through its further use or if the asset is expected to be recovered through its subsequent disposal. If the carrying amount of the asset is expected to be recovered through its further use, a deferred tax liability would be recognized by calculating the difference between the carrying amount (i.e., the revalued amount) and the tax base of the asset. If the carrying amount of the asset is expected to be recovered through its subsequent disposal, a deferred tax liability would be recognized by determining the difference between thecarrying amount and the tax base of the asset, but adjusted for any amount considered to be a capital gain (i.e., the expected proceeds from the disposal in excess of the original cost of the asset). This adjustment is necessary because capital gains are not taxable under current New Zealand tax legislation. Also, the deferred tax liability that is recognized from the revaluation of the asset must be charged directly to equity (paragraph 61 of NZ IAS 12). This is because the accounting for the revaluation itself involves the increment in value being recognized in equity and not in the income statement.To illustrate these two situations, consider this example. Assume an entity owns an asset that cost $100,000 to acquire. The carrying amount before the asset is revalued is $60,000, while the tax base is $50,000. The asset is revalued to $120,000, but no similar adjustment is made for tax purposes. The tax rate is 33 percent and capital gains from the sale of assets are not taxed.If the carrying amount of the revalued asset is expected to be recovered through its further use, the amount of the temporary difference would be $70,000 (i.e., $120,000- $50,000). This figure is a taxable temporary difference because the entity expects to recover benefits from the asset’s further use to the carrying amount of $120,000. Hence, the deferred tax liability that is recognized from the revalued asset would be $23,100 (i.e., $70,000 x 33 percent). If the carrying amount of the revalued asset is expected to be recovered through its subsequent disposal, the taxable temporary difference would again amount to $70,000 (i.e., $120,000-$50,000). However, $20,000 of this amount is a capital gain (found by deducting the original cost of $100,000 from the revalued amount of $120,000). This means that only $50,000 of the $70,000 temporary difference is actually taxable. Hence, the deferred tax liability that is recognized from the revalued asset would be $16,500 (i.e., $50,000 x 33 percent).We can see from the above example that not only will NZ IAS 12 require entities to recognize a deferred tax liability from an asset that is revalued upwards, but it will also require entities to make a decision about how their assets are expected to be recovered, as this will have a bearing on how entities measure the deferred taxliability.Wong, Norman. Accounting for deferred taxes under NZ IAS 12.[J] University of Auckland Business Review, 2006:55-59译文：新西兰根据国际会计准则第12号递延所得税会计处理一、一种“资产负债表”的研究方法在新西兰会计准则最重要的变化是关于国际会计准则第12号所得税会计，尤其是在用于计算递延税项的基础上，遵循资产负债表观，而不是损益表观。

《会计学：教程与案例》财务会计答案第一章案例一：Case 1-1: Ribbons an’ Bows, Inc.Note: This case is unchanged from the Twelfth Edition.注：本案与第十二版持平。

Approach方法This is an introductory case and it should be taught as an introductory case. There will be plenty of time in the course for the students to learn the correct form of financial statements and details of accounting standards. In short, the instructor should be prepared to allow a variety of formats for the financial statements and tolerate some “not quite correct” accounting.这是一个介绍性案例，应该作为一个介绍性案例来教授。

课程中有足够的时间让学生学习财务报表的正确格式和会计准则的细节。

简言之，教师应准备好允许各种财务报表格式，并容忍一些“不太正确”的会计。

The instructor may want to have students discuss Carmen’s March 31 statement, but the bulk of the class should focus on the three case questions. Any discussion of the March 31 statement should deal with the nature of the various accounts (i.e. prepaid rent is rent paid in advance of using the property and it is an asset because it has future economic benefits for the company, etc), rather than the format of the statement. It is better to leave the beginning of the course’s instruction in financial statement formats to the assigned case question discussions.讲师可能希望学生讨论卡门3月31日的声明，但大部分的课应该集中在三个问题上。

mbafa《financialaccounting》习题答案9CHAPTER 9LONG-LIVED ASSETSBRIEF EXERCISESBE9–1a. The new method, straight-line depreciation, will increase net income in the early years andreduce income in the later years versus using an accelerated method. An accelerated method of depreciation increases the depreciation charges in the early years of the life of an asset and reduces the depreciation charges in the later years.b. Allegheny may have decided that it wanted depreciation charges to be spread evenly over thelife of an asset so that the impact on net income in any one reporting period was less. It may also feel that it will make its financial statements easier to compare with its competitors.During periods of high fixed asset investment Allegheny’s results may look unfavorable versus other companies that use a straight-line method instead of an accelerated method.c. In the annual report one could look through footnote #1. This footnote typically highlights all ofthe significant accounting policies and methods used by the company to prepare the financial statements.BE9–2a. The recognition of depreciation and amortization affects the basic accounting equation byreducing assets and reducing retained earnings in the stockholders’ equity section. Fixed assets such as property, plant and equipment are reduced through depreciation charges(which are collected in the contra asset account Accumulated Depreciation) which lower net income.Intangible assets are reduced by amortization charges which reduce the net income of the company. This reduction in net income reduces the retained earnings of the company.b. Boeing recognized a gain of $117 million, computed as follows:Accumulated depreciation 2002 $12,719 million+ Depreciation charges for 2003 1,005 million– Accumulated depreciation 2003 12,963 millionAccumulated depreciation on assets sold $ 761 millionPP&E 2002 $21,484 million+ PP&E purchases for 2003 741 million– PP&E 2003 21,395 millionPP&E sold $ 830 million1Derived Journal Entry:Cash (+A) 186Accumulated Depreciation (+A) 761Property, Plant & Equipment (-A) 830Gain on Sale (R, +SE) 117The gain on the sale of property, plant and equipment would be shown in the income state ment, usually in an “other gains and losses” section. These transactions would affect the statement of cash flows in the “funds from investing activities section”. Any sales would be a source of funds in the amount of cash received.BE9–3a. Johnson and Johnson invested $122 million ($594– $472) of land during 2003.b. Accumulated depreciation increased during 2003 because of depreciation expense taken byJohnson and Johnson. Instead of reducing the asset account directly, depreciation expense is added to accumulated depreciation, which offsets the asset account to show its reduction in value.c. During 2003 Johnson and Johnson must have sold some assets that were classified in thefixed assets accounts. These accounts are carried at historical cost so that only the sale of an asset will reduce the account. Any gains or losses on the sale of these assets would be shown on the income statement. The change from 2002 ($14,314) to 2003 ($17,052) is $2,738. Since Johnson & Johnson spent $5,074 on fixed assets, then $2,336 ($5,074 - $2,738) must have been sold.d. Johnson and Johnson would show $9,846 million for property, plant and equipment on itsfinancial statement for 2003. The gross amount and the accumulated depreciation would be disclosed in the footnote.EXERCISESE9–1a. Lowery, Inc., should capitalize all costs associated with getting the equipment in a serviceablecondition and location. These costs would be the actual purchase price of $920,000, the transportation cost of $62,000, and the insurance cost of $10,000. Therefore, the total cost of the equipment is $992,000.b. The depreciation base equals the dollar amount of a fixed asset's cost that the company doesnot expect to recover over the asset's useful life, but instead expects to consume over the asset's useful life. Since the plantequipment's total cost is $992,000 and since Lowery, Inc., expects to sell the equipment for $50,000 at the end of its useful life, Lowery, Inc., does not expect to recover $942,000 of the asset's cost. Therefore, the depreciation base equals $942,000. The depreciation base always equals the capitalized cost of a fixed asset less its estimated salvage value.c. The amount that will be depreciated over the life of the plant equipment is its depreciation base.The depreciation base equals the amount of the equipment's future benefits that the company will consume. The outflow of future benefits are expenses, in this case depreciation expense.Therefore, the total amount that Lowery, Inc., will depreciate over the equipment's useful life is $942,000.E9–2Lot 1 Lot 2 Lot 3 Lot 4Revenue $ 160,000 $ 120,000 $ 60,000 $ 60,000Expenses 128,000* 96,000* 48,000* 48,000*Net income $ 32,000 $ 24,000 $ 12,000 $ 12,000_______________* Expenses were calculated as follows:1. Calculate total market value.Total Market value = $160,000 + $120,000 + $60,000 + $60,000 = $400,0002. Allocate costs to each lot based upon relative market values.Lot 1 = $320,000 × (160,000/400,000) = $128,000Lot 2 = $320,000 × (120,000/400,000) = $ 96,000Lot 3 = $320,000 × (60,000/400,000) = $ 48,000Lot 4 = $320,000 × (60,000/400000) = $ 48,000E9–3a. All costs that are necessary and reasonable to get an asset ready for its intended use should becapitalized as part of the cost of that asset. In the case of property, plant, and equipment, "ready for its intended use" means that the asset is in a serviceable condition and location.LandItem Land Improvements Building Tract of land $90,000Demolition of warehouse 10,000Scrap from warehouse (7,000)Construction of building $140,000Driveway and parking lot $32,000Permanent landscaping 4,000Total $ 97,000 $32,000 $140,000b. Land:Since land is assumed to have an indefinite life, it is never depreciated.Land Improvements:Depreciation Expense—Land Improvements (E, –SE)................... 1,600 Accumulated Depreciation—Land Improvements (–A)............... 1,600 Depreciated land improvements.Building:Depreciation Expense—Building (E, –SE)....................................... 7,000 Accumulated Depreciation—Building (–A).................................. 7,000 Depreciated building.E9–4a. Maintenanceb. Maintenancec. Maintenanced. Bettermente. Maintenancef. Maintenanceg. Bettermenth. Maintenancei. BettermentNote:The classification of these expenditures can be quite subjective. Some accountants might very well classify some of these expenditures differently. For example, one might argue that the cost of the muffler in (h) is actually a betterment expenditure if the reduced noise allows workers to work more efficiently, thereby increasing the productive capacity of the machine.E9–5a. (1) Expensed immediately:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000Amortization 0 0 (40,000)Other expenses (20,000) (20,000) (20,000)Net income $ 45,000 $ 45,000 $ 5,000Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets(including land) 50,000 50,000 50,000Total assets $ 185,000 $ 140,000 $ 95,000Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000Stockholders' equity 150,000 105,000 60,000Total liabilities & stockholders'equity $ 185,000 $ 140,000 $ 95,000E9–5 Continued(2) Amortized over two years:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000 Amortization 0 20,000 20,000Other expenses 20,000 20,000 20,000Net income $ 45,000 $ 25,000 $ 25,000Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets (includingland) 50,000 50,000 70,000Total assets $ 185,000 $ 140,000 $ 115,000 Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000 Stockholders' equity 150,000 105,000 80,000Total liabilities & stockholders'equity $ 185,000 $ 140,000 $ 115,000(3) Amortized over three years:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000 Amortization 13,334 13,333 13,333Other expenses 20,000 20,000 20,000Net income $ 31,666 $ 31,667 $ 31,667Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets (includingland) 50,000 63,334 76,667Total assets $ 185,000 $ 153,334 $ 121,667 Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000Stockholders' equity 150,000 118,334 86,667Total liabilities & stockholders'equity $ 185,000 $ 153,334 $ 121,667b. 2008 2007 2006 TotalMethod 1: $45,000 $45,000 $ 5,000 $95,000 Method 2: 45,000 25,000 25,000 95,000 Method 3: 31,666 31,667 31,667 95,000E9–5 Concludedc. The balance sheets under all three methods report identical amounts for each balance sheetaccount. Since the asset was fully amortized by December 31, 2008, the method used to amortize the asset does not affect the amounts reported on the balance sheet as of December 31, 2008.E9–6a. andb.Stork Freight CompanyIncome StatementFor the Year Ended December 3112-Year Useful Life 6-Year Useful Life Revenues $ 50,000,000 $ 50,000,000 Expenses:Operating expenses $ 25,000,000 $ 25,000,000 Depreciation expense 1,250,000 2,500,000 Total expenses 26,250,000 27,500,000 Net income $ 23,750,000 $ 22,500,000 The percentage decrease in net income would be approximately 5.26% [($22,500,000 – $23,750,000) ÷ $23,750,000].c.12-Year Useful Life 6-Year Useful Life Net income $ 23,750,000 $ 22,500,000Dividend payout percentage 30% 30%Dividends $ 7,125,000 $ 6,750,000The difference in dividends due simply to using different estimated useful lives for the planes would be $375,000 ($7,125,000 – $6,750,000).E9–7a. An asset's book value equals the asset's initial capitalized value less the associatedaccumulated depreciation. With straight-line depreciation, accumulated depreciation equals depreciation expense per year times the number of years the asset has been used. Therefore, the asset's book value would be calculated as follows: Depreciation expense per year = (Cost –Salvage Value) ÷ Useful Life= ($60,000 –$12,000) ÷ 5 years= $9,600 per yearBook Value = Capitalized Cost – Accumulated Depreciation = $60,000 –($9,600 × 3 years)= $31,200E9–7 Concludedb. Depreciation Expense = [(Cost –Accumulated Depreciation) –Salvage Value] ÷Remaining Useful Life= (Book value –Salvage value) ÷ Remaining useful li fe= ($31,200 –$12,000) ÷ 5 remaining years= $3,840Depreciation Expense (E, –SE)....................................................... 3,840 Accumulated Depreciation (–A)................................................. 3,840 Depreciated asset for 2005.E9–8Straight- Double-Declining- ActivityObjective Line Balance Method(a) x1x1x1(b) x x x(c) x x2(d) x(e) x(f) x(g) x x3(h) x x x1Under certain conditions, all three methods could meet this objective. However, for the straight-line method and the double-declining-balance method, this objective will be met only by chance.The activity method will always meet this objective because depreciation is based upon the actual use of the asset.2It is possible that the activity method would generate the largest net income in the last year of an asset's useful life. However, this result would be due to the company's use patterns of the asset and would not be due to the depreciation method per se.3See note (2). The same rationale would hold in this case too.E9–9a. (1) Straight-line depreciation:Depreciation per Year = (Cost –Salvage Value) ÷ Useful Life = ($300,000 –$60,000) ÷ 4 years= $60,000 per year for 2005, 2006, 2007, and 2008E9–9 Concluded(2) Double-declining-balance depreciation:Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/05 $300,000 $ 0 $300,00012/31/05 50% $150,000a300,000 150,000 150,00012/31/06 50% 75,000 300,000 225,000 75,00012/31/07 50% 15,000b300,000 240,000 60,00012/31/08 50% 0 300,000 240,000 60,000 ______________a Depreciation Expense = Book Value at Beginning of the Period × Depreciation Factorb Book Value ×Depreciation Factor = $75,000 ×50% = $37,500. If Benick Industriesdepreciated $37,500 in 2007, the asset's book value would drop below its salvage value. To prevent this from happening, depreciation expense for 2007 can be only $15,000.b. A manager should consider the costs and benefits associated with each depreciation method.The most likely benefit is the impact of depreciation methods on income taxes. An accelerated method decreases the present value of tax payments. However, since there is no requirement that a company use the same depreciation method for financial reporting purposes as it does for tax reporting, tax considerations are not an issue for financial reporting. A manager should also consider the bookkeeping costs associated with each method. However, with computers the bookkeeping costs should be relatively consistent across methods. Finally, since the choice of depreciation methods affects net income, managers might consider the impact of the different depreciation methods on contracts such as debt covenants and incentive compensation contracts. Comparability with other in the same industry may also be a factor.E9–10a. Computer System (+A)....................................................................335,000Cash (–A)........................................................................... 335,000 Purchased computer system.Note: Capitalizing the $10,000 of training costs could be debated. But, without incurring these costs, the computer system would not be in a serviceable condition. Hence, thetraining costs meet the requirement to be capitalized as part of the fixed asset.b. (1) Straight-line depreciation:Depreciation per Year = (Cost –Salvage Value) ÷ Useful Life = ($335,000 –$70,000) ÷ 5 years= $53,000 per year for 2005, 2006, 2007, 2008, and 2009E9–10 Concluded(2) Double-declining-balance depreciation:Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/05 $335,000 $ 0 $335,00012/31/05 40% $134,000a335,000 134,000 201,00012/31/06 40% 80,400 335,000 214,400 120,60012/31/07 40% 48,240 335,000 262,640 72,36012/31/08 40% 2,360b335,000 265,000 70,00012/31/09 40% 0 335,000_____________a Depreciation expense = Book value at beginning of the period×Depreciation factorb Book value ×Depreciation factor = $72,360 ×40% = $28,944. If Stockton Corporationdepreciated $28,944 in 2008, the asset's book value would drop below its salvage value. To prevent this from happening, depreciation expense for 2008 can be only $2,360.c. Depreciation Expense (E, –SE)................................................. 134,000Accumulated Depreciation (–A)......................................... 134,000 Depreciated fixed asset for 2005.E9–111. Activity Method:Depreciation Expense per Mile = ($100,000 –$20,000) ÷ 200,000 Miles= $0.4/MileDepreciation Expense (E, –SE)....................................................... 19,200 Accumulated Depreciation (–A)................................................. 19,200 Depreciated asset for 2005.Depreciation Expense (E, –SE)....................................................... 14,000 Accumulated Depreciation (–A)................................................. 14,000 Depreciated asset for 2006.Depreciation Expense (E, –SE)....................................................... 16,000 Accumulated Depreciation (–A)................................................. 16,000 Depreciated asset for 2007.Depreciation Expense (E, –SE)....................................................... 10,000 Accumulated Depreciation (–A)................................................. 10,000 Depreciated asset for 2008.E9–11 ConcludedDepreciation Expense (E, –SE)....................................................... 14,000Accumulated Depreciation (–A)................................................. 14,000 Depreciated asset for 2009.Depreciation Expense (E, –SE)....................................................... 4,000 Accumulated Depreciation (–A)................................................. 4,000 Depreciated asset for 2010.Cash (+A) .........................................................................................12,000Accumulated Depreciation (+A)....................................................... 77,200Loss on Sale of Truck (Lo, –SE)...................................................... 10,800 Truck (–A)................................................................................... 100,000 Sold truck.2. Straight-line Method:Depreciation Expense per Year = ($100,000 –$20,000) ÷ 5 Years= $16,000/yearDepreciation Expense (E, –SE)....................................................... 16,000 Accumulated Depreciation (–A)................................................. 16,000 Depreciated asset.Note:This entry would be made each year for five years. No entry would be made in Year 6 since the truck's estimated useful life ended at the end of Year 5, which means that the truck would have been depreciated down to its estimated salvage value.Cash (+A) ....................................................................................... 12,000Accumulated Depreciation (+A)....................................................... 80,000Loss on Sale of Truck (Lo, –SE)...................................................... 8,000 Truck (–A)................................................................................. 100,000 Sold truck.E9–12a. Depletion (E, –SE)............................................................................ 1,200,000*Oil Deposits (–A)........................................................................ 1,200,000 Depleted oil deposits.___________* $1,200,000 = ($4,000,000 ÷ 100,000 barrels)×30,000 barrels extractedb. Depletion (E, –SE)............................................................................ 2,000,000*Oil Deposits (–A)........................................................................ 2,000,000 Depleted oil deposits.___________* $2,000,000 = ($4,000,000 ÷ 100,000 barrels)×50,000 barrels extractedc. $800,000E9–13a.Depreciation Expense Correct Annual Cumulative Year Per Company's Books Depr. Exp. Difference Difference2005 $120,000 $25,000 $95,000 $95,0002006 0 25,000 (25,000) 70,0002007 0 25,000 (25,000) 45,0002008 0 25,000 (25,000) 20,000b. After adjusting entries are prepared and posted on December 31, 2007, AccumulatedDepreciation will be understated by $75,000.c. After adjusting entries, but before closing entries have been prepared and posted on December31, 2007, Retained Earnings will be understated by $70,000.d. After both adjusting and closing entries have been prepared and posted on December 31, 2007,Retained Earnings will be understated by $45,000.E9–14a. Cash (+A) .......................................................................................235,000Accumulated Depreciation—Office Equipment (+A)....................... 300,000 Office Equipment (–A)............................................................... 500,000 Gain on Sale of Fixed Assets (Ga, +SE)................................... 35,000 Sold office equipment.b. Cash (+A) ......................................................................................... 185,000Accumulated Depreciation—Office Equipment (+A)....................... 300,000Loss on Sale of Fixed Assets (Lo, –SE)........................................... 15,000 Office Equipment (–A)............................................................... 500,000 Sold office equipment.E9–15Assuming that Paris Company kept the equipment for its entire five-year estimated useful life, the depreciation schedule on the equipment would be as follows.Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/03 $25,000 $ 0 $25,00012/31/03 40% $10,000 25,000 10,000 15,00012/31/04 40% 6,000 25,000 16,000 9,00012/31/05 40% 3,600 25,000 19,600 5,40012/31/06 40% 400* 25,000 20,000 5,00012/31/07 40% 0 25,000 20,000 5,000__________________* Because the equipment's book value cannot drop below its estimated salvage value, depreciation expense for 2006 cannot exceed $400.a. Accumulated Depreciation—Equipment (+A).................................. 19,600Loss on Disposal of Equipment (Lo, –SE)....................................... 5,400 Equipment (–A).......................................................................... 25,000 Disposed of equipment.b. Accumulated Depreciation—Equipment (+A).................................. 20,000Loss on Disposal of Equipment (Lo, –SE)....................................... 5,000 Equipment (-A)........................................................................... 25,000 Disposed of equipment.c. Cash (+A) ....................................................................................... 8,000Accumulated Depreciation—Equipment (+A).................................. 19,600 Equipment (–A).......................................................................... 25,000 Gain on Sale of Fixed Assets (Ga, +SE)................................... 2,600 Sold equipment.d. Fixed Asset (new) (+A).................................................................... 30,000Accumulated Depreciation—Equipment (+A).................................. 20,000Loss on Disposal of Fixed Asset (Lo, –SE)...................................... 3,000 Cash (–A)................................................................................... 28,000 Equipment (old) (–A).................................................................. 25,000 Exchanged fixed assets.E9–16a. andb. First, let us compute the original cost of the equipment that was sold in 2005 asfollows:Equipment Equipment Equipment Equipmentat the End + Purchased – sold during = at the Endof 2004 during 2005 2005 of 2005$32,700 + $12,000 – X = $37,500X = $7,200Now, let us compute the related accumulated depreciation for the equipment sold during 2005 as follows:Accumulated Depreciation Exp. Accumulated Accumulated Depreciation at + for 2005 – Depreciation = Depreciationthe End of 2004 for the Sold at the EndEquipment of 2005during 2005$14,300 + $7,200 – X = $17,600X = $ 3,900 Now, we can reconstruct the journal entry.Cash.................................................................................................5,400*Accumulated Depreciation............................................................... 3,900 Equipment.................................................................................. 7,200 Gain on Sale of Equipment........................................................ 2,100 ___________* $7,200 + $2,100 – $3,900 = $5,400E9–17Account Financial Statementa. Property, plant & equipment Balance SheetLess: accumulated depreciation Balance SheetDepreciation expense Income StatementInvestments in property, plant & equipment Statement of Cash Flowsb. Property, plant & equipment – 2002 $36,912Plus: investments in property, plant & equipment 3,656Less: property, plant & equipment – 2003 38,692Property, plant & equipment sold in 2003 $ 1,876c. Accumulated depreciation – 2002 $19,065Plus: depreciation expense – 2003 4,651Less: accumulated depreciation – 2003 22,031Accumulated depreciation – sold property $ 1,685E9–17 Concludedd. Compute the gain on the sale:Cost of property sold $1,876Less: accumulated depreciation 1,685Book value of property sold $ 191Sales price of property $100Less: book value of property 191Loss on sale of property $ 91This loss on sale of property would appear on the income statement.E9–18a. First, let us compute the related accumulated depreciation for the equipment sold during 2005as follows:Accumulated Depreciation Cap. Accumulated Accumulated Depreciation at + for 2005 – Depreciation = Depreciationthe End of 2004 for the Sold at the EndEquipment 0f 2005during 2005$9,800 + $3,800 – X = $10,500X = $ 3,100 Now, we can reconstruct the journal entry.Cash................................................................................................. 4,300 Loss on Sale of Equipment (900)Accumulated Depreciation............................................................... 3,100 Equipment.................................................................................. 8,300 b. Equipment Equipment Equipment Equipmentat the End + Purchased – sold during = at the Endof 2004 during 2005 2005 of 2005$23,400 + X – $8,300 = $26,900X = $11,800___________Equipment purchased during 2000 = $11,800E9–19a. Swift Corporation should capitalize these costs. Assets are defined as items that are expectedto provide future economic benefits to the entity. Organization costs are costs incurred by an entity prior to starting operations. Such costs include legal fees to incorporate and accountant's fees to set up an accounting system. Without incurring these costs, most companies could not be in business. Consequently, organization costs allow a company to be in business, thereby helping it to generate future benefits. Since these costs help in generating future benefits, they should most definitely be capitalized.b. Theoretically, organization costs should be amortized over their useful life. In the extreme,organization costs provide a benefit over the entire life of a company. Since under the going concern assumption accountants assume that entities will exist indefinitely, it would seem that organization costs should be amortized over an indefinite period. Since this position is not practical, the accounting profession has decided that organization costs should be amortized over a period not to exceed forty years.Assuming that Swift Corporation amortizes its organization costs over the maximum period of forty years, the appropriate adjusting journal entry for a single year would be as follows: Amortization Expense (E, –SE)........................................................1,125 Organization Costs (–A)............................................................. 1,125 Amortized organization costs.c. As mentioned in part (b), organization costs theoretically provide benefits over the entire life ofthe company. Under the going concern assumption, the company is assumed to exist indefinitely. If the company is assumed to exist indefinitely and if organization costs provide benefits over the entire life of the company, then these costs should provide an indefinite benefit. Consequently, organization costs should provide a benefit for an indefinite period of time, which implies that they should be reported as an asset (i.e., future benefit) indefinitely.But if organization costs are amortized, the asset will at some point in time have a zero balance, and the cost of the asset cannot be matched against the benefits the asset will help generate in the future. This situation contradicts the matching principle and the concept of an asset.d. A patent gives a company the exclusive right to use or market a particular product or process,thereby providing the company with an expected future benefit. Consequently, the costs incurred to acquire a patent should be capitalized as an asset and amortized over the patent's useful life. If Swift were to immediately expense the $65,000, the company would be implying that it did not expect to receive any benefits from the patent in the future. If this were the case, one would have to question why Swift purchased the patent in the first place.e. Research and development costs may or may not provide a company with future benefits. Thecompany will not know whether or not a particular R & D。

Income statementIncome statement (also referred to as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations)[1] is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.[1] The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time. Charitable organizations that are required to publish financial statements do not produce an income statement. Instead, they produce a similar statement that reflects funding sources compared against program expenses, administrative costs, and other operating commitments. This statement is commonly referred to as the statement of activities. Revenues and expenses are further categorized in the statement of activities by the donor restrictions on the funds received and expended.The income statement can be prepared in one of two methods.[2] The Single Step income statement takes a simpler approach, totaling revenues and subtracting expenses to find the bottom line. The more complex Multi-Step income statement (as the name implies) takes several steps to find the bottom line, starting with the gross profit. It then calculates operating expenses and, when deducted from the gross profit, yields income from operations. Adding to income from operations is the difference of other revenues and other expenses. When combined with income from operations, this yields income before taxes. The final step is to deduct taxes, which finally produces the net income for the period measured. Contents[hide]∙ 1 Usefulness and limitations of income statemento 1.1 Operating sectiono 1.2 Non-operating sectiono 1.3 Irregular itemso 1.4 Disclosureso 1.5 Earnings per share∙ 2 Sample income statement∙ 3 Bottom line∙ 4 Requirements of IFRSo 4.1 Items and disclosures∙ 5 See also∙ 6 References∙7 External links[edit] Usefulness and limitations of income statementIncome statements should help investors and creditors determine the past financial performance of the enterprise, predict future performance, and assess the capability of generating future cash flows through report of the income and expenses.However, information of an income statement has several limitations:∙Items that might be relevant but cannot be reliably measured are not reported (e.g.brand recognition and loyalty).∙Some numbers depend on accounting methods used (e.g. using FIFO or LIFO accounting to measure inventory level).∙Some numbers depend on judgments and estimates (e.g.depreciation expense depends on estimated useful life and salvage value).Guidelines for statements of comprehensive income and income statements of business entities are formulated by the International Accounting Standards Board and numerous country-specific organizations, for example the FASB in the U.S..Names and usage of different accounts in the income statement depend on the type of organization, industry practices and the requirements of different jurisdictions.If applicable to the business, summary values for the following items should be included in the income statement:[3][edit] Operating section∙Revenue - Cash inflows or other enhancements of assets of an entity during a period from delivering or producing goods, rendering services, or other activities thatconstitute the entity's ongoing major operations. It is usually presented as sales minus sales discounts, returns, and allowances.Every time a business sells a product orperforms a service, it obtains revenue. This often is referred to as gross revenue orsales revenue. [4]∙Expenses - Cash outflows or other using-up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carryingout other activities that constitute the entity's ongoing major operations.o Cost of Goods Sold (COGS) / Cost of Sales - represents the direct costs attributable to goods produced and sold by a business (manufacturing ormerchandizing). It includes material costs, direct labour, and overhead costs(as in absorption costing), and excludes operating costs (period costs) such asselling, administrative, advertising or R&D, etc.o Selling, General and Administrative expenses (SG&A or SGA) - consist of the combined payroll costs. SGA is usually understood as a major portionof non-production related costs, in contrast to production costs such as directlabour.▪Selling expenses - represent expenses needed to sell products (e.g.salaries of sales people, commissions and travel expenses,advertising, freight, shipping, depreciation of sales store buildingsand equipment, etc.).▪General and Administrative (G&A) expenses - represent expensesto manage the business (salaries of officers / executives, legal andprofessional fees, utilities, insurance, depreciation of office buildingand equipment, office rents, office supplies, etc.).o Depreciation / Amortization - the charge with respect to fixed assets / intangible assets that have been capitalised on the balance sheet for a specific(accounting) period. It is a systematic and rational allocation of cost ratherthan the recognition of market value decrement.o Research & Development (R&D) expenses - represent expenses included in research and development.Expenses recognised in the income statement should be analysed either by nature (raw materials, transport costs, staffing costs, depreciation, employee benefit etc.) or by function (cost of sales, selling, administrative, etc.). (IAS 1.99) If an entity categorises by function, then additional information on the nature of expenses, at least, – depreciation, amortisation and employee benefits expense – must be disclosed. (IAS 1.104) The major exclusive of costs of goods sold, are classified as operating expenses. These represent the resources expended, except for inventory purchases, in generating the revenue for the period. Expenses often are divided into two broad sub classicifications selling expenses and administrative expenses.[5][edit] Non-operating section∙Other revenues or gains - revenues and gains from other than primary business activities (e.g. rent, income from patents). It also includes unusual gains that areeither unusual or infrequent, but not both (e.g. gain from sale of securities or gainfrom disposal of fixed assets)∙Other expenses or losses - expenses or losses not related to primary business operations, (e.g. foreign exchange loss).∙Finance costs - costs of borrowing from various creditors (e.g. interest expenses, bank charges).∙Income tax expense - sum of the amount of tax payable to tax authorities in the current reporting period (current tax liabilities/ tax payable) and the amount ofdeferred tax liabilities (or assets).They are reported separately because this way users can better predict future cash flows - irregular items most likely will not recur. These are reported net of taxes.∙Discontinued operations is the most common type of irregular items. Shifting business location(s), stopping production temporarily, or changes due totechnological improvement do not qualify as discontinued operations. Discontinuedoperations must be shown separately.Cumulative effect of changes in accounting policies (principles) is the difference between the book value of the affected assets (or liabilities) under the old policy (principle) and what the book value would have been if the new principle had been applied in the prior periods. For example, valuation of inventories using LIFO instead of weighted average method. The changes should be applied retrospectively and shown as adjustments to the beginning balance of affected components in Equity. All comparative financial statements should be restated. (IAS 8)However, changes in estimates (e.g. estimated useful life of a fixed asset) only requires prospective changes. (IAS 8)No items may be presented in the income statement as extraordinary items. (IAS 1.87) Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations. [Note: natural disaster might not qualify depending on location (e.g. frost damage would not qualify in Canada but would in the tropics).]Additional items may be needed to fairly present the entity's results of operations. (IAS 1.85)[edit] DisclosuresCertain items must be disclosed separately in the notes (or the statement of comprehensive income), if material, including:[3] (IAS 1.98)∙Write-downs of inventories to net realisable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs ∙Restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring∙Disposals of items of property, plant and equipment∙Disposals of investments∙Discontinued operations∙Litigation settlements∙Other reversals of provisions[edit] Earnings per shareBecause of its importance, earnings per share (EPS) are required to be disclosed on the face of the income statement. A company which reports any of the irregular items must also report EPS for these items either in the statement or in the notes.There are two forms of EPS reported:∙Basic: in this case "weighted average of shares outstanding" includes only actual stocks outstanding.∙Diluted: in this case "weighted average of shares outstanding" is calculated as if all stock options, warrants, convertible bonds, and other securities that could betransformed into shares are transformed. This increases the number of shares and so EPS decreases. Diluted EPS is considered to be a more reliable way to measureEPS.[edit] Sample income statementThe following income statement is a very brief example prepared in accordance with IFRS. It does not show all possible kinds of items appeared a firm, but it shows the most usual ones. Please note the difference between IFRS and US GAAP when interpreting the following sample income statements.[edit] Bottom line"Bottom line" is the net income that is calculated after subtracting the expenses from revenue. Since this forms the last line of the income statement, it is informally called "bottom line." It is important to investors as it represents the profit for the year attributable to the shareholders.After revision to IAS 1 in 2003, the Standard is now using profit or loss rather than net profit or loss or net income as the descriptive term for the bottom line of the income statement.[edit] Requirements of IFRSOn 6 September 2007, the International Accounting Standards Board issued a revised IAS 1: Presentation of Financial Statements, which is effective for annual periods beginning on or after 1 January 2009.A business entity adopting IFRS must include:∙ a Statement of Comprehensive Income or∙two separate statements comprising:1.an Income Statement displaying components of profit or loss and2. a Statement of Comprehensive Income that begins with profit or loss (bottomline of the income statement) and displays the items of other comprehensiveincome for the reporting period. (IAS1.81)All non-owner changes in equity (i.e. comprehensive income ) shall be presented in either in the statement of comprehensive income (or in a separate income statement and a statement of comprehensive income). Components of comprehensive income may not be presented in the statement of changes in equity.Comprehensive income for a period includes profit or loss (net income) for that period and other comprehensive income recognised in that period.All items of income and expense recognised in a period must be included in profit or loss unless a Standard or an Interpretation requires otherwise. (IAS 1.88) Some IFRSs require or permit that some components to be excluded from profit or loss and instead to be included in other comprehensive income. (IAS 1.89)[edit] Items and disclosuresThe statement of comprehensive income should include:[3] (IAS 1.82)1.Revenue2.Finance costs (including interest expenses)3.Share of the profit or loss of associates and joint ventures accounted for using theequity method4.Tax expense5. A single amount comprising the total of (1) the post-tax profit or loss of discontinuedoperations and (2) the post-tax gain or loss recognised on the disposal of the assets or disposal group(s) constituting the discontinued operation6.Profit or loss7.Each component of other comprehensive income classified by nature8.Share of the other comprehensive income of associates and joint ventures accountedfor using the equity method9.Total comprehensive incomeThe following items must also be disclosed in the statement of comprehensive income as allocations for the period: (IAS 1.83)∙Profit or loss for the period attributable to non-controlling interests and owners of the parent∙Total comprehensive income attributable to non-controlling interests and owners of the parentNo items may be presented in the statement of comprehensive income (or in the income statement, if separately presented) or in the notes as extraordinary items.。

会计英语单元题第一章Answer of these questions appears at the end of lesson cases.1.Which of the following statements is false?____A____.A.The partnership form of business organization protects the personal assets ofthe owners from creditors of the businessB. A proprietorship has a single ownerC.Accounting is the information system that measures business activities,processes that information into reports, and communicates the results to decision makersD.The FASB determines how accounting is practiced in the United States2.The primary objective of financial reporting is _______C_.A.to present information in an ethical mannerB.to provide information to the federal governmentC.to provide information useful for investment and lending decisionsD.to provide information useful to managers in making daily decisions3.The principle or concept that holds that an entity will remain in operation for theforeseeable future is the_____A____.A.going-concern conceptB.stable-monetary-unit conceptC.reliability principleD.cost principle4.Which of the following statements is true?___B_____.A.Revenues are assets because they represent economic benefitsB.Assets are economic resources that are expected to benefit future periodsC.The accounting equation can be stated as Assets +Liabilities =Owner’s EquityD.Liabilities are economic obligations to insiders5.Aftin Co. performed services on account. When Aftin collects the accountreceivable, ____B____.A.assets increaseB.assets do not changeC.owner’s equity decreasesD.liabilities decrease6.Which of the following trans actions would not affect ower’s equity?___A_____.A.Payment of an account payableB.Payment of salary expenseC.Service provided on accountD.Withdrawal of cash by owner7.An income statement reports___D______.A.The assets, liabilities, and owner’s equity on a pattic ular dateB.the change in the owner’s capital during the periodC.the cash receipts and cash payments during the periodD.the difference between revenues and expenses during the period8. If assets increase $80000 during the period and owner’s equity decreases $16000during the period, liabilities must have___B______.A. increased $64000B. increased $96000C. decreased $64000 \D. decreased $960009.The following information about the assets and liabilities at the end of 20*1 and 20*2 is given below:20*1 20*2Assets $75000 $90000Liabilities 36000 45000If net income was $15000 and there were no withdrawals, how much did the owner invest____A___.A.$ 4500B.$ 6000C.$ 45000D.$ 4350010.The amount of net income shown on the income statement also appears on the ______C__.A. statement of financial positionB. balance sheetC. statement of owner’s equityD. statement of cash flows第二章1.Which of these is (are) an example of an asset account? ___C___A.Service RevenueB.WithdrawalsC.SuppliesD.All of the above2.Traylor Company paid $ 2 850 on account. The effect of this transaction on theaccounting equation is to __D___.A.Decrease assets and d ecrease owner’s equityB.Increase liabilities and decrease owner’s equityC.Have no effect on total assetsD.Decrease assets and decrease liabilities3.Which of these statements is false? __A____.A.Increase in assets and increase in revenues are recorded with a debitB.Increase in liabilities and increases in owner’s equity are recorded with acreditC.Increase in both assets and withdrawals are recorded with a debitD.Decreases in liabilities and increases in expenses are recorded with a debit4.Not Payable has a normal beginning balance of $ 30 000. During the period, newborrowings total $ 63 000 and the ending balance in Notes Payable is $ 41 000.Determine the payments on loans during the period. __B___.A.$ 74 000B.$ 52 000C.$ 134 000D.Cannot be determined from the information given5.Which of these statements is not correct? __C___.A.The account is a basic summary device used in accountingB. A business transaction is recorded first in the journal and then posted to deledgerC.The ledger is a chronological listing of all transactionsD.The debit entry is recorded first in a journal entry , then the credit entry6.Which of these accounts has a normal debit balance? ___D___.A.Rent ExpenseB.WithdrawalsC.Service RevenueD.Both A and B have a normal debit balance7.The journal entry to record the collection of $ 890 from a customer on account is___B___.A. Accounts Payable 890Cash 890B. Cash 890Account Receivable 890C. Cash 890Accounts Payable 890D. Cash 890Service Revenue 8908.The ending Cash account balance is $ 57 600. During the period, cash receiptsequal $ 124 300. If the cash payments during the period total $ 135 100, then the beginning Cash amount must have __A____.A.$ 68 400B.$ 46 800C.$ 181 900D.Cannot be determined from the information givene the following selected information for the Alecia Company to calculate thecorrect credit column total for a trial balance ___C___.Accounts receivable $ 7 200Accounts payable 6 900Building 179 400Cash 15 800Capital 64 000Insurance expense 6 500Salary expense 56 100Salary payable 3 600Service revenue 190 500A.$ 201 000B.$ 137 100C.$ 265 000D.$ 74 50010.Which of the following statements is correct? ____D___.A.The chart of accounts is a list of all accounts with their balancesB.The trial balance is a list of all accounts with their balances, divided as debitor creditC.The ledger is maintained in chart-of-accounts orderD.Both B and C are correct第三章1.When should revenue be recorded under the accrual-basis and cash-basis ofaccounting? ____D___Accrual-Basis Cash-BasisA.When received When the service is performedB.When the service is performed When the customer is billedC.When the customer is billed When receivedD.When the service is performed When received2.During 20*4, Bustamante Co. incurred salary expense of $240,000.Begining andending Salary Payable was $4,000 and $ 8,000 , respectively. In 20*4,Bustamante paid salaries of ____C___A.$ 248,000B.$ 240,000C.$ 236,000D.$244,0003.During 20*4, Bustamante received $ 600,000 for service revenue. Bustamante hasnot received $ 30,000 for service already performed in 20*4, Bustamante also invested $ 20,000 into the business. Bustamante should report service revenue for 20*4 of ____D___A.$ 550,000B.$570,000C.$580,000D.$630,0004.Recording an expense when it is paid instead of when incurred is a violation of____C___A.The matching principleB.The time period conceptC.The reliability conceptD.The revenue principle5.On July 31, $3,600 is paid for a one-year insurance policy. On December 31,theadjusting entry for prepaid insurance would include ____C___A.a debit to Insurance Expense, $ 3,600B.a credit to Prepaid Insurance, $ 3,600C.a debit to Insurance Expense, $ 1,500D.a credit to Prepaid Insurance, $ 1,5006. Failure to record an adjusting entry for an accrued expense , will result in the following____B___Liabilities Net IncomeA. no effect understateB. understate overstateC. overstate understateD. understate no effect7. An adjusting entry could contain all of the following except___B___A. a debit to Unearned RevenueB. a credit to CashC. a debit to Interest ReceivableD. a credit to Salary Payable8. The 20*3 income statement showed Rend Expense of $ 6,100. The related balance sheet account, Prepaid Rent, had a beginning balance of $ 1,400 and a ending balance of $ 1,200. The amount of cash paid for rent during 20*3 is (D )A. $ 6,100B. $ 1,200C. $ 6,300D. $ 5,9009. Refer to Exhibit 3-2. The credit column of the adjusted trial balance should total ___C___A. $ 45,300B. $ 49,300C. $ 49,500D. $ 51,10010. Refer to Exhibit 3-2.Assume the net income is $ 8,000. The ending balance of Lemon, Capital should be ___A__A. $ 17,600B. $ 15,600C $ 13,600D. $ 2,000第四章1.which of the following statements best describes the purpose of internal control ? __C____A. To provide assurance that the entire business operates in accordance with management ’s plans and policiesB To prevent fraudC. To ensure that expenses and cash outlays are held to a minimumD. To provide adequate subdivision of duties within the organizationThe Data Co. has asked you to assist in the preparation of a bank reconciliation at the end of July. Answer questions 2-4 using the following code letters to indicate how the item described would be reported on the bank reconciliation.a.Add to the book balanceb.Add to the bank balancec.Deduct from the bank balanced.Deduct from the book balancee.Dose not belong to the bank reconciliation2. Note and interest collected by the bank of the company ,$500(plus $25 interest).____A__3. Deposit in transit ,$400___B___4. Check No.662 for which should have been written for $730 was incorrectly recorded by the bank as $370.____C__.5 If a bank reconciliation include an NSF check for $45, the journal entry to record this reconciliation item would include ___A___.A.credit to CashB.debit to CashC.credit to Accounts ReceivableD.no entry is required6. All of the following are controls over cash received in a store except ____C___.A. the clerk should have access to the cash register tape to make corrections when necessaryB. the customer should be able to see the amounts entered into the registerC it should be a requirement that a receipt be given to the customerD. the cash drawer should open only when the sale clerk enters an amount on the keys7. Which of the following statements related to receivables is true ? ___C___A. On the balance sheet , accounts receivable are usually reported as total accounts receivable plus the allowance for uncollectible accountsB A dishonored notes receivable should be shown as a current liabilityC. When a notes receivable is not paid at maturity, the principal plus any interest due should be charged back to the cus tomer’s accounts receivableD When a customer overpays his accounts receivable ,the resulting balance should be properly shown among the long-term (noncurrent) assets on the balance sheet8. Cox Company began the month of July with a balance in Accounts Receivable of $51600.During July , Cox reported cash sales of $50000, credit sales on account of $228000, collections from customers on account , $201400 , and write-offs of $750.Uncollectibe-Account expense for July was estimated to be 1% of credit sales . The balance in Account Receivable on July 31 is ___A____.A. $ 77450B $ 75170C. $ 75920D $ 80550accounts receivable ).___D___.A. 41 daysB. 11 daysC. 33 daysD. 37 days10. Refer to Exhibit 4-1. Compute the acid-test ratio ___B____.A. 0.31B 0.57C. 0.13D. 0.27第五章1.The weighted average for the year inventory cost flow methostd is applicable towhich of the following inventory systems? ___B____.Periodic PerpertualA. Yes YesB. Yes NoC. No YesD. No No2.The LIFO inventory cost flow method may be applied to which of the following inventory systems? ___C____.Periodic PerpertualA. No NoB. No YesC. Yes YesD. Yes No3.Crow Company bagan a year and purchased merchandise as follows:Jan.1 Beginning inventory 40 units @ $ 17.00Feb.4 Purchased 80 units @ $ 16.00May.12 Purchased 80 units @ $ 16.50Aug.9 Purchased 60 units @ $ 17.50Nov.23 Purchased 100 units @ $ 18.00The company uses a periodic inventory system and the ending inventory consists of 60 units ,20 from each of the last three purchases. Determine the ending inventory assuming costs are assigned on a weighted-average basis. ___D____A.$1000.00C.$1040.00C.$1080.00D.$1022.004.A Company uses a periodic inventory system and made an error at the end of year I that caused its year I ending inventory to be understated by $ 5000.What effect does this error have on the company’s financial statements? ___A___ income is understated;assets are understated income is understated;assets are overstated income is overstated;assets are understated income is overstated;assets are overstated5.ABC Company estimates the cost of its physical on June 30,20*2 for use in an interim financial statement.The rate of markup on cost is 25%.The following account balances are available:Inventory,March 31,20*2 $150000Purchases 86000Purchases returns 4000Sales during the second quarter of 20*2 190000The estimate of the cost of the inventory on June 30 would be ___C____.A.$80000B.$88000C.$89500D.$1845006.Which of the following factors would not be considered in the selection of LIFO as an inventory costing method? ___C____.A.Tax benbefitsB.MatchingC.Physical flowD.Improved cash flow7.Which of the following methods of inventory valuation is allowable at interim dates but not at year-eng? __B____A.Weighted averageB.Estimated gross profit ratesC.Retail methodD.Specific identication8.Dart Company’s accounting records indicated the followi ng information: Inventory,1/ 1/20*2 $ 500000Purchases during 20*2 2500000Sales during 20*2 3200000A physical inventory taken on December 31,20*2,resulted in an ending inventory of $ 575000.Dart’s gross profit on sales has remained constant at 25% in recent years.Dart suspects some inventory may have been taken by a new employee.At December 31,20*2,what is the estimated cost of missing inventory? __A____A.$ 25000B.$ 100000C.$ 175000D.$ 2250009.Which of the following is not affected by the inventory valuation method used by a business? __C____A.Amounts owed for income taxesB.Cost of merchandise soldC.Amounts paid to acquire merchandise income of the business10.Under the retail inventory method,freight-in would be included in the calculation of the goods available for sale for which of the following? __C____Cost RetailA. No NoB. No YesC. Yes NoD. Yes Yes会计英语业务题1.The following selected transactions were completed by Castell Delivery SeeviceduringNovember :(1) Received cash from owner as additional investment , $20 000(2) Paid advertising expense , $ 520(3) Purchased supplies of gas and oil for cash $ 780(4) Received cash from cash customers , $ 1 500(5) Charged customers for delivery services on account , $ 2 100(6) Paid creditors on account , $ 470(7) Paid rent for November , $ 1 000(8) Received cash from customers on account , $ 1 810(9) Paid cash to owner for personal use , $ 900(10) Determined by taking an inventory that $ 650 of supplies of gas and oil hadbeen used during the monthIndicate the effect of each transactions on the accounting equation by listing the numbers identifying the transactions , (1) through (10) ,in a vertical column , and inserting at the right of each number the appropriate letter from the following list :(a)Increase in one asset , decrease in another asset(b)Increase in an asset , increase in a liability(c)Increase in an asset , increase in capital(d)Decrease in an asset , decrease in a liability(e)Decrease in an asset , decrease in capital2.Prepare the following columnar form . Then enter the word debit or credit in eachof the last three columns to indicate the action necessary to increase the account , to indicate the action necessary to decrease the account , and to show the normal3.Ora Company’s two employees each earn $ 90 per day for a four day week thatbegains on Monday and ends on Thursday . They were paid for the week ended Thursday , December 27 and both worked a full day on Monday , December 31 .January 1 of the next year was an unpaid holiday ,but the employees all worked on Wednesday and Thursday , Journalize the year-end adjusting entry to record the accrued wages and the entry to pay the employees on January 3 .4. Botello Company began operations on January 1,20×2. During the next two years , the company completed a number of transactions involving credit sales, accounts receivable collections ,and bad debts. These transactions are summarized as follows :20×2a . Sold merchandise on credit for $54 500, terms n/60.b. Wrote off uncollectible accounts receivable in the amount of $850.c. Received cash of $45100 in payment of outstanding accounts receivable.d. In adjusting the accounts on December 31 , concluded that 2% of the outstandingaccounts receivable would become uncollectible .20×3e. Sold merchandise on credit for $ 67 800, terms n/60.f. Wrote off uncollectible accounts receivable in the amount of $1280.g. Received cash of $65 900 in payment of outstanding accounts receivable , Inadjusting the accounts on December 31 , concluded that 2% of the outstanding accounts receivable would become uncollectibleRequired:Prepare general journal entries to record the 20×2 and 20×3 summarized transactions of Botello Company and the adjusting entries to record bad debts expense at the end of each year,5. The following information is available for Carson ,Inc. for 20×2:Freight-in $20 000 Purchase returns 70 000Selling expenses 200 000Ending inventory 80 000The cost of goods sold is equal to 600 percent of selling expenses.:Required:Calculate the cost of goods available for sale.6.The accounting records of Classic Stores provides the following information for 20×2Beginning inventory $120 000 Purchases 790 000 Transportation-in 45 000Purchases discounts 15 000 Purchases returns and allowances 10 000 Ending inventory 130 000 Requireda.Calculate the inventory turnover ratio for 20×2 .b. If asked by management, how would you interpret the ratio that you calculated?1.posting2.revenues3.cash flow statement4.GAAPs5.chart of accounts6.debit and credit rules7. accrual accounting8. depreciation9. trial balance10.retailers11.perpetual inventory system12.liquidity1.Please state the types of accountants.2.What are the transaction recorded using debits？3.What are the steps in closing？4. Please tell us what about vouchers.5.How to account for sales using net method？6.What are the objectives of cash management？Answers1.2.3.4.5.6. In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits.7.8.9.10.11.12.1.2.3.4.5.6.。

利润Nov-11表 (Income statement)会外年企 02表单位：人民币元MONETARY UNIT：CNY行次本年金额上年金额项目一、主营业务收入其中：出口产品（商品）销售收入减：主营业务成本其中：出口产品（商品）销售成本主营业务税金及附加二、主营业务利润（亏损以“- ”号填列）加：其他业务利润（亏损以“- ”号填列）减：营业费用管理费用财务费用其中：利息支出（减利息收入）汇兑损失（减汇兑收益）三、营业利润（亏损以“ - ”号填列）加：投资收益（亏损以“ - ”号填列）补贴收入营业外收入减：营业外支出四、利润总额（亏损以“ - ”号填列）减：所得税*少数股东损益加：* 未确认的投资损失（以“ +”号填列）五、净利润（亏损以“ - ”号填列）ITEMSⅠ. Revenue from main operationsIncluding: Revenue from export operationsLess: Cost of main operationsIncluding: Cost of export operationsTaxes and surcharge for main operationsⅡ. Profit/Loss from main operationsAdd: Profit/Loss from otheroperations Less: Operating expensesGeneral and administrativeexpenses Financial expensesIncluding: Interest expenses ( Less interest income )Exchange loss ( Less exchange gain )Ⅲ. Operating profit/lossAdd: Investment income/lossesRevenue fromsubsidiesNon-operating revenueLess: Non-operating expendituresⅣ. Income/Loss beforetax Less: Income taxMinority loss or profitLoss from investment not yet recognisedⅤ. Net income/lossLine No.This year amount Amount last year12,141,103.86242,053,920.39561087,183.471114155,341.35154,384,383.33527,823.761667,788.58171818-4,520,329.79-527,823.761922232527-4,520,329.79-527,823.7628293031-4,520,329.79-527,823.76补充资料Supplementary information：项目上年同期累计数本年累计数ItemCurrent year cumulativePrior year actual1、出售、处置部门或被投资单位所得收益Gain on sale and disposal of a department or an invested enterprise2、自然灾害发生的损失Losses arising from natural disaters3、会计政策变更增加（或减少）利润总额Increase/decrease in income before tax due to a change in accounting policy4、会计估计变更增加（或减少）利润总额Increase/decrease in income before tax due to a change in accounting estimate5、债务重组损失Losses arising from debt restructurings6、其他Others1。

Book 3 Financial Reporting and Analysis1.五大financial accounts: Assets, liabilities, owners’ equity, revenues, expenses.2.income statement要素: revenue, expense, gain, loss其中，gain和loss是equity/asset在特殊情况下的增减3.附加信息：Footnotes: accounting methods, assumptions, estimates, audited or not, additional info of items, FOOT NOTES ARE AUTITED!Supplementary schedulesManagement’s discussion and Analysis (MD&A): trends about operations, cash flows, bossiness.4.Auditing opinion: unqualified, qualified, adverse如果有special paragraph，说明在某方面有问题！5.Other info source:1．Quarterly and semiannual reports: No auditing requirement2．SEC filing: 8K，主要是资产变动，10K，10Q3．Proxy statements: 和权益有关4．Corporate reports and press releases: 由managers撰写，客观性不够强6.Accrual accounting：用于权责和资金不同步的情形Deferred/Unearned revenue收到钱，未供货或提供服务，具体账目体现：+Unearned revenue Unearned, prepaid: 现金先换手，随后交易，具体账目体现：Accrued: 先交易，后现金换手，亦即权责发生，但款未到位Accrued liability：应计负债，当recognize未来债务支出时，将增加这一帐户由此产生的相应帐户：Assets LiabilitiesAccrued revenue Unearned revenuePrepaid expense Accrued expense具体记账(Record)时间：When earliest event in a transaction occursRevenue record when earns, expense record when incurs.注：Recognize revenue并非一定收到现金，可能只是增加了receivable7.Expanded accounting equation:Assets=Liabilities + Contributed capital + Ending retained earnings=Liabilities + Contributed capital + [Beginning retained earnings + Revenue – Expenses – Dividends]8.Accounting information flowJournal entries àgeneralledgeràinitial/adjusted trial balance àfinancial statements按日记账调整分录按会计准则调节最终报告9.Accumulated depreciation本质上是allowance for depreciation，属于asset的相反帐户10.Treasury stock属于contra equity，reduces equity11.SEC required fillingS-1新股发行前需要Form 8k：大型变动(auditor change)报告10k，和年报类似，需审计10q，季报，无需审计DEF-14a，proxy statement：股东大会前发布144私下发行报告Form 3，4，5内部管理层持股12.和Financial Statement有关的一系列变态要求：1. Quantitative Characters: understandability, comparability, relevance, reliability2. Constrains: reliability, timeliness, cost, intangible and non-quantifiable information3. Principle: fair presentation, going concern, accrual basis, consistency, materiality.4. Framework: transparent, comprehensive, consistent5. Qualitative characteristics related to usefulness:Relevance, predictive value, faithful presentation, neutrality, verifiability6. 阻碍coherent financial reporting framework三个要:Valuation, measurement, std setting13.IOSCO的目标之一是Reduce systematic risk14.IFRS和GAAP的原则性异同：Item IASB FASBPurpose of framework 权威性强，default 权威性弱Objectives Mixed objectives Business and non-businessAssumption More ongoing concern Less ongoing concernQuantitative characteristics 四项，参看11 Relevant and reliableFS elements 更复杂，一般不允许资产升值*FASB要求在美的外国公司提交reconcile文件15.Revenue-adjustments for estimated returns and allowances=net revenue16.Expenses reporting organizationBy nature，按类型分，例如把所有业务中的depreciation作为汇总depreciation项By function，按业务分，例如把生产产品中的所有费用作为COGS17.Long term contracts的收入确认Percent of completion, complete contract methodPercentage法下，如果收入难以确定，按cost的比例计提(cost*profit ratio)在任一种方法下，loss必须即时确认，不同于expensePercentage法更aggressive & subjective，并使earning更smooth，而最终的CF不受影响。

会计英语21) Accounting is an information system that measures business activities & communicates the findings to decision makers.（会计是将业务活动和措施的结果传达给决策者的一种信息系统）2) A corporation is owned by shares of stock, it is a separate legal entity and is responsible for its own debts.公司是由国有股，它是一个独立的法人实体，是对自己的债务负责3) The cash flow statement shows the cash inflows and outflows from operating activities, investing activities, and financing activities.现金流量表显示经营活动，投资活动和筹资活动的现金流入和流出。

4)Bookkeeping is only the part of accounting that records transactions and events.簿记只是会计的一部分，它记录着交易和事件5) A sole proprietorship is an entity owned by one person and the owner is personally responsible for business debts.个人独资企业是由一个人拥有的实体和个人所有者对企业的债务负责6) The business entity principle requires each entity keeps accounting records asa separate entity.会计主体原则要求每个单位作为一个单独的实体进行会计记录。