2013 年 会计学原理 期中考试 1 / 6

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1 2013 年 会计学原理 期中考试 Part I True or False (0.5 mark each, 21 marks in total) 1. The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities. 2. The business entity principle means that a business will continue operating for an indefinite period of time. 3. The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles. 4. Internal users include lenders, shareholders, brokers and managers. 5. The idea that a business will continue to operate until it can sell its assets to pay its creditors underlies the going-concern assumption. 6. A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation. 7. The balance sheet is also called the statement of financial position because it describes the financial position of the business at a point in time. 8. Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable. 9. A trial balance that is in balance is proof that no errors were made in journalizing the transactions, posting to the ledger, and preparing the trial balance. 10. When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue. 11. If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance. 12. Double entry accounting requires that each transaction affect, and be recorded in, at least two accounts. 13. Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business. 14. Before an adjusting entry is made to recognize the cost of expired insurance for the period, Prepaid Insurance and Insurance Expense are both overstated. 15. Before an adjusting entry is made to accrue employee salaries, Salaries Expense and Salaries Payable are both understated. 16. A contra account is an account linked with another account; it is added to that account to show the proper amount for the item recorded in the associated account. 17. The account form of the balance sheet matches the accounting equation. That is, assets are on the left side of the statement, and liabilities and equity are on the right side of the statement. 18. In preparing statements from the adjusted trial balance, the balance sheet must be prepared first. 19. Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer. 20. The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements and recording closing and adjusting entries. 21. Permanent accounts carry their balances into the next accounting period. Moreover, asset, liability and revenue accounts are not closed as long as a company continues in business. 22. Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital. 23. A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period. 24. Beginning merchandise inventory plus the net cost of purchases is the merchandise available for sale. 25. Trade discounts are recorded in a Trade Discounts account in the accounting system. 26. Purchase allowances refer to merchandise a buyer acquires but then returns to the seller. 1 / 6

2 27. Credit terms of 2/10, n/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. Otherwise, the full amount is due in 30 days. 28. The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit if goods are shipped FOB destination. 29. Sales discounts on credit sales can benefit a seller by decreasing the delay in receiving cash and reducing future collections efforts. 30. Errors in the period-end inventory balance only affect the current period's records and financial statements. 31. Under both the periodic and perpetual inventory systems, the temporary account Purchases Returns and Allowances is used to accumulate the cost of all returns and allowances for a period. 32. An inventory error is sometimes said to be self-correcting because it causes an offsetting error in the next period. 33. An overstatement of ending inventory will cause an overstatement of assets and an understatement of equity on the balance sheet. 34. The FIFO inventory method assumes that costs for the earliest units purchased are the first to be charged to the cost of goods sold. 35. When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger. 36. Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger. 37. Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts. 38. Posting debits from the Sales journal to Accounts Receivable twice once to the general ledger account Accounts Receivable and once to the customer's subsidiary account violates the accounting equation of debits equal credits. 39. On a bank statement, deposits are listed as debits because the bank increases its cash account when the deposit is made. 40. Cash equivalents are short-term highly liquid investment assets that are readily converted to a know cash amount, and have maturities of one year. 41. Cancelled checks are checks the bank has paid and deducted from the customer's account during the period. 42. Good internal control dictates that a person who controls an asset also maintains that asset's accounting records. Part II Multiple Choice (only one best answer, 1 mark each, 14 marks in total) 1. A set of procedures and approvals designed to control cash disbursements and the acceptance of obligations is referred to as a(n): A. Internal cash system. B. Petty cash system. C. Cash disbursement system. D. Voucher system. E. Cash control system. 2. Cash equivalents: A. Include savings accounts. B. Include checking accounts. C. Are short-term investments sufficiently close to their maturity date that their value is not sensitive to interest rate changes. D. Include time deposits. E. Have no immediate value. 3.When a company uses special journals, the general journal is used for selected transactions and events including: 2 / 6

3 A. Recording adjusting transactions. B. Posting transactions to special journals. C. Accumulating debits and credits. D. Collecting detailed listings of amounts. E. Recording cash receipts. 4.A subsidiary ledger: A. Includes transactions not covered by special journals. B. Is a listing of all of the accounts of a business. C. Is a listing of individual accounts and amounts with a common characteristic. D. Is also called a general ledger. E. Is also called a special journal. 5. Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used? A. FIFO and LIFO B. LIFO and weighted-average cost C. Specific identification and FIFO D. FIFO and weighted-average cost E. LIFO and specific identification 6.The understatement of the ending inventory balance causes: A. Cost of goods sold to be overstated and net income to be understated. B. Cost of goods sold to be overstated and net income to be overstated. C. Cost of goods sold to be understated and net income to be understated. D. Cost of goods sold to be understated and net income to be overstated. E. Cost of goods sold to be overstated and net income to be correct. 7.Thelma Company reported cost of goods sold for Year 1 and Year 2 as follows: Thelma Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000. Given this information, the correct cost of goods sold figure for Year 2 would be: A. $291,000 B. $276,000 C. $264,000 D. $285,000 E. $249, On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available: Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett's warehouse. Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were 3 / 6

4 received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000. Hewett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Company. (Hewett Company is the consignee.) Hewett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the correct balance for ending inventory on December 31 is: A. $194,000 B. $209,000 C. $200,000 D. $171,000 E. $156, A debit to Sales Returns and Allowances and a credit to Accounts Receivable: A. Reflects an increase in amount due from a customer. B. Recognizes that a customer returned merchandise and/or received an allowance. C. Requires a debit memorandum to recognize the customer's return. D. Is recorded when a customer takes a discount. E. All of these. 10. The usual order for the asset section of a classified balance sheet is: A. Current assets, prepaid expenses, long-term investments, intangible assets. B. Long-term investments, current assets, plant assets, intangible assets. C. Current assets, long-term investments, plant assets, intangible assets. D. Intangible assets, current assets, long-term investments, plant assets. E. Plant assets, intangible assets, long-term investments, current assets. 11. Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is: A. Debit Income Summary and credit Cash for $35,000. B. Debit Dina Kader, Withdrawals and credit Cash for $35,000. C. Debit Income Summary and credit Dina Kader, Withdrawals for $35,000. D. Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000. E. Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35, If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is: A. Debit Cash and credit Legal Fees Earned. B. Debit Cash and credit Unearned Legal Fees. C. Debit Unearned Legal Fees and credit Legal Fees Earned. D. Debit Legal Fees Earned and credit Unearned Legal Fees. E. Debit Unearned Legal Fees and credit Accounts Receivable. 13. Which of the following statements is incorrect? A. The normal balance of accounts receivable is a debit. B. The normal balance of owner's withdrawals is a debit. C. The normal balance of unearned revenues is a credit. D. The normal balance of an expense account is a credit. E. The normal balance of the owner's capital account is a credit. 4 / 6

5 14. The area of accounting aimed at serving the decision making needs of internal users is: A. Financial accounting. B. Managerial accounting. C. External auditing. D. SEC reporting. E. Bookkeeping. Part III Journalizing and Computations (65 marks) Problem One For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31, (Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance of work are initially recorded as liabilities.) a. One-third of the work related to $15,000 cash received in advance is performed this period. b. Wages of $8,000 are earned by workers but not paid as of December 31, c. Depreciation on the company s equipment for 2008 is $18,531. d. The Office Supplies account had a $240 debit balance on December 31, During 2008, $5,239 of office supplies is purchased. A physical count of supplies at December 31, 2008, shows $487 of supplies available. e. The Prepaid Insurance account had a $4,000 balance on December 31, An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31, f. The company has earned (but not recorded) $1,000 of interest from investments in CDs for the year ended December 31, The interest revenue will be received on January 10, g. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31, The company must pay the interest on January 2, Problem Two On May 11, Sydney Co. accepts delivery of $40,000 of merchandise it purchases for resale from Troy Corporation. With the merchandise is an invoice dated May 11, with terms of 310, n90, FOB shipping point. The goods cost Troy $30,000. When the goods are delivered, Sydney pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $1,400 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $800. On May 20, Sydney mails a check to Troy Corporation for the amount owed. Troy receives it the following day.(both Sydney and Troy use a perpetual inventory system) 1. Prepare journal entries that Sydney Co. records for these transactions. 2. Prepare journal entries that Troy Corporation records for these transactions. Problem Three Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. Waupaca uses the perpetual system in accounting for merchandise inventory. Required: Prepare (1) the September 9 entry to establish the fund (2) the September 30 entry to reimburse the fund (3) an October 1 entry to increase the fund to $ / 6

6 Problem 4 Aloha Company uses a perpetual inventory system. It entered into the following calendar-year 2008 purchases and sales transactions. 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average round per unit costs to tenth of a cent and inventory balances to the dollar. Problem Five The following information is available to reconcile Severino Co. s book balance of cash with its bank statement cash balance as of December 31, a. After posting is complete, the December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46, b. Check No for $4, and Check No for $400.00, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No for $2, and No for $410.40, were outstanding on the most recent November 30 reconciliation. Check No is listed with the December canceled checks, but Check No is not. c. When the December checks are compared with entries in the accounting records, it is found that Check No had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. Two debit memoranda are enclosed with the statement and are unrecorded at the time of the reconciliation. One debit memorandum is for $ and dealt with an NSF check for $745 received from a customer, Titus Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. The second debit memorandum is a $99.00 charge for check printing. Severino did not record these transactions before receiving the statement. e. A credit memorandum indicates that the bank collected $19,000 cash on a note receivable for the company, deducted a $20 collection fee, and credited the balance to the company s Cash account. Severino did not record this transaction before receiving the statement. f. Severino s December 31 daily cash receipts of $9, were placed in the bank s night depository on that date, but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31, Prepare the journal entries necessary to bring the company s book balance of cash into conformity with the reconciled cash balance as of December 31, / 6