会计英语选择题

1．Acompanyacquired30%ofBCompany’svotingstockfor$200000onJanuary2,2004.A’s30%interestinBgaveAtheabilitytoexercisesignificantinfluenceoverB’soperatingandfinancialpolicies.During2004,Bearned$70000andpaiddividendsof$50000.Breportedearningsof$150000forthesixmonthsendingJune30,2005,and$200000fortheyearendingDecember31,2005.onJuly1,2005,AsoldhalfofitsstockinBfor$140000cash.Bpaiddividendsof$60000onOctober1,2005.Usetheaboveinformationtoanswerthefollowingthreequestions:Beforeincometaxes,whatamountshouldAincludeinits2004incomestatementasaresultoftheinvestment?A.$15000B.$21000C.$36000D.$80000InA’sDecember31,2004BalanceSheet,whatshouldbethecarryingamountofthisinvestment?A.$200000B.$206000C.$221000D.$236000Onits2005incomestatement,whatamountshouldAreportasagainorlossfromthesaleofhalfofitsinvestment?A.$22000gainB.$23500gainC.$500lossD.$14500gainOnMay1,2005,ABCpurchased30%ofthestockofDCorporationfor$600000.During2005,Dhadnetincomeof$100000.OnFebruary1andonAugust1,Dpaid$30000individends.OnDecember31,2005,themarketpriceofthestockis$630000.whatamountshouldbeshownintheInvestmentinDCorporationaccountonABC’sBalanceSheetdatedDecember31,2005?A.$621000B.$611000C.$629000D.$6300003.Whenthefairvalueofinvestmentsindebtsecuritiesexceedstheircarryingamounts,held-to-Maturitysecuritiesandavailable-for-salesecuritiesshouldbereportedattheendoftheyearat_____Held-to-maturitysecuritiesavailable-for-salesecuritiesA.FairvalueAmortizedCostB.AmortizedcostFairvalueC.AmortizedcostAmortizedcostD.FairvalueFairvalue4.Whenaninvestorusestheequitymethodtoaccountforinvestmentsincommonstock,theinvestmentaccountwillbeincreasedwhentheinvestorrecognizesA.aproportionateinterestinthenetincomeoftheinvestee.B.acashdividendreceivedfromtheinvestee.C.periodicamortizationofthegoodwillrelatedtothepurchase.D.depreciationrelatedtotheexcessofmarketvalueoverbookvalueoftheinvestee’sdepreciableassetsatthedateofpurchasebytheinvestor.Whenacompanyholdsbetween20%and50%oftheoutstandingstockofaninvestee,whichofthefollowingstatementsapplies?Theinvestorshouldalwaysusetheequitymethodtoaccountforitsinvestment.Theinvestorshouldusetheequitymethodtoaccountforitsinvestmentunlesscircumstancesindicatethatitisunabletoexercise“significantinfluence”overtheinvestee.C.Theinvestormustusethefairvaluemethodunlessitcanclearlydemonstratetheabilitytoexercise“significantinfluence”overtheinvestee.D.Theinvestorshouldalwaysusethefairvaluemethodtoaccountforitsinvestment.CCorporationowns75%ofHInc.Duringthecurrentyear,HInc.reportednetincomeof$150anddeclareddividendsof$40000.HowmuchwouldCCorporationincreaseInvestmentinHarrellInc.Stockforthecurrentyear?A.$0B.$82500C.$30000D.$112500GCorporation’stemporaryinvestmentscost$100000recordedasavailable-for-salesecuritiesandhaveamarketvalueof$120000attheendoftheaccountingperiod.Thedifferencebetweenthecostandmarketvaluewouldbereportedasa:none.$20000unrealizedgain-income.$20000realizedgain.$20000unrealizedgain-equity.Ifafirmpurchases$100000ofbondsofXcompanyat101plusaccruedinterestof$2000andpaysbroker’scommissionsof$50,theamountdebitedtoInvestmentinXcompanyBondswouldbe:A.$100000B.$103000C.$101050D.$103050Therateofinterestactuallyearnedbybondholdersiscalledthe______A.couponrateB.effectiveyieldC.nominalrateD.statedrateBondswillsellatapremiumwhenthe_____statedrateishigherthanthenominalrate.Statedrateishigherthanthemarketrate.Effectiveyieldislowerthanthemarketrate.Effectiveyieldislowerthanthestatedrate.Whichofthefollowingisanexampleofoff-balance-sheetfinancing?_____ConsolidatedsubsidiaryCapitallease.Zero-interest-bearingnote.Operatinglease.Typicalliabilityaccountsinclude_____accountspayable,bankloan,wagespayable,drawingsaccountspayable,bankoverdraft,wagespayable,stationeryaccountsreceivable,bankoverdraft,wagespayable,unearnedrevenueaccountspayable,borrowingformthepublic,bankoverdraft,wagespayableWhichofthefollowingusuallyisnotacurrentliability?WithheldincometaxesDepositsreceivedformcustomersDeferredtaxpayableAlloftheseAfterbondshavebeenissued,theirmarketvaluecanbeexpectedto_____riseasanypremiumisamortized.Fallifinterestratesrise.FallasanydiscountisamortizedRiseifinterestratesriseWhentheinterestpaymentdatesofabondareMay1andNovember1,andabondissueissoldonJune1,theamountofcashreceivedbytheissuerwillbe_____decreasedbyaccruedinterestfromJune1toNovember1.DecreasedbyaccruedinterestfromMay1toJune1.IncreasedbyaccruedinterestfromMay1toJune1.IncreasedbyaccruedinterestfromJune1toNovember1Amanufacturerofhouseholdappliancesmayincuralossduetothediscoveryofadefectinoneofitsproducts.Theoccurrenceofthelossisreasonablypossible,andtheresultingcostscanbereasonablyestimated.Thispossiblelossshouldbe_____AccruedDisclosedinFootnotesA.YesNOB.YesYesC.NoYesD.NoNoTaxableincomeofacorporation________differsfromaccountingincomeduetodifferencesinintraperiodallocationbetweenthetwomethodsofincomedetermination.Differsfromaccountingincomeduetodifferencesininterperiodallocationandpermanenetdifferencesbetweenthetwomethodsofincomedetermination.Isbasedongenerallyacceptedaccountingprinciples.Isreportedonthecorporation’sincomestatement.Taxableincomeofacorporationdiffersfrompretaxfinancialincomebecauseof___PermanentTemporaryDifferencesDifferencesA.NONOB.NOYesC.YesYesD.YesNoIfacorporationhasoutstanding1000sharesof$9cumulativepreferredstockof$100paranddividendshavebeenpassedfortheprecedingthreeyears,whatistheamountofpreferreddividendsthatmustbedeclaredinthecurrentyearbeforeadividendcanbedeclaredoncommonstock?_____A.$9000B.$27000C.$36000D.$45000Allofthefollowingarereasonsforpurchasingtreasurystockexceptto____makeamarketforthestock.Increasethenumberofshareholders.IncreasetheearningspershareandreturnonequityGiveemployeesascompensationPaid-incapitalforacorporationmayarisefromwhichofthefollowingsources?Issuingcumulativepreferredstock.Receivingdonationsofrealestate.Sellingthecorporation’streasurystock.Alloftheabove.Undertheequitymethod,theinvestmentaccountisdecreasedbyallofthefollowingexcepttheinvestor’sproportionateshareof_____dividendspaidbytheinvesteedeclinesinthefairvalueoftheinvestment.Thelossesoftheinvestee.Alloftheoptionswoulddecreasetheinvestmentaccount.Cashdividendsarepaidonthebasisofthenumberofshares______authorizedissuedoutstandingoutstandinglessthenumberoftreasurysharesThestockholders’equitysectionofthebalancesheetmayinclude____commonstockpreferredstockdonatedcapitalalloftheaboveDeclarationandissuanceofadividendinstock____increasesthecurrentratio.Decreasestheamountofworkingcapital.Decreasestotalstockholders’equity.Ifacorporationbuysbackitsownstock,thestockislistedonthebalancesheetinthe:_____currentassetssection.Longtermliabilitysection.Stockholders’equitysection.Investmentssection.Acorporationhasissued25000sharesof$100parcommonstockandholds3000ofthesesharesastreasurystock,Ifthecorporationdeclaresa$2persharecashdividend,whatamountwillberecordedascashdividend?A.$22000B.$25000C.$44000D.$5000010.AcompanydeclaredacashdividendonitscommonstockonDecember15,20×4,payableonJanuary12,20×5.Howwouldthisdividendaffectshareholders’equityonthefollowingdates?December15,January12,20×4

20×5A.Decrease

decreaseB.Decrease

NoeffectC.Noeffect

NoeffectD.Noeffect

DecreaseNetcashflowfromoperatingactivitiesisdeterminedbyeliminating_____earnedrevenuesfromnetincome.Incurredexpensesfromnetincome.Non-cashexpensesfromnetincome.Non-cashrevenuesandnon-cashexpensesfromnetincome.Allofthefollowingadjustmentsareaddedtonetincomeincomputingnetcashflowfromoperatingactivitiesexcept_____\AmortizationexpenseAdecreaseinaccountsreceivable.Anincreaseinaccountspayable.Anincreaseinprepaidexpenses.Acquiringassetsbyissuingequitysecuritieswouldbereportedas______aninvestingactivity.Afinancingactivity.Bothaninvestingactivityandafinancingactivity.Anon-cashinvestingandfinancingactivity.Whenpreparingastatementofcashflows,adecreaseinaccountsreceivableduringaperiodwouldcausewhichoneofthefollowingadjustmentsindeterminingcashflowfromoperatingactivities?_____DirectMethodIndirectMethodA.IncreaseDecreaseB.DecreaseIncreaseC.IncreaseIncreaseD.DecreaseDecreaseWhenpreparingastatementofcashflows,anincreaseinaccountspayableduringaperiodwouldrequirewhichofthefollowingadjustmentsindeterminingcashflowsfromoperatingactivities?______IndirectMethodDirectMethodA.IncreaseDecreaseB.DecreaseIncreaseC.IncreaseIncreaseD.DecreaseDecreaseAllofthefollowingadjustmentswouldbedeductedindeterminingnetcashfromoperatingactivitiesexcept_____amortizationofbondpremium.Decreaseindeferredincometaxliability.Gainonsaleofplantassets.Increaseinaccruedliabilities.KingCo.hasprovidedthefollowing2006currentaccountbalancesforthepreparationoftheannualstatementofcashflows:______January1December31Accountsreceivable$11500$14500Allowanceforuncollectibleaccounts400500Prepaidrentexpense62004100Accountspayable970011200King’s2006netincomeis$75000.Netcashp