财务会计专业英语-(5)

Practice—LRMPtyLtdAftertheinitialtransactionswererecordedtheclosingbalanceswereasfollowsasat1April2008:CashInventoryLandandbuildingsEquipmentAccountspayableNotespayableLoansSharecapital$thousand14055300901570300200AdditionaltransactionsforthemonthofApril20081.Cashsalesof$30,000weremade.Thecostofthegoodsthatweresoldamountedto$12,000.2.Creditsalesof$40,000weremade.Thecostofgoodssoldwas$16,000.3.Paymentsof$8000weremadetosuppliers.4.PaidwagesforthefirsttwoweeksofAprilfor$20,000.5.Receivedanadvertisinginvoicefor$2000foraradioadvertisementbroadcaston5April.Thebillwillbepaidnextmonth.6.Received$25,000fromaccountsreceivable.7.Attheendofthemonth$18,000isowinginwagesforthelasttwoweeksofthemonth.Itisduetobepaidon1May.Practice—CappuManiaPtyLtdCappuMania'strialbalanceat1April2007Allthecompany’sactivitiesfortheyearended31March2008havebeengroupedintothefollowingsummarylist.First,theeconomiceventstobeaccrued:1.Revenuefor2008was$89,740.Thecoffeebardoesmostlycashbusiness,soofthis,$85,250wasincashandtherestwasoncredit.2.Generalexpensedfor2008,notincludingdepreciationorincometax,totaled$67,230.Mostoftheexpenseswereoncredit,forcoffeesuppliesandsoon,soofthis,only$2120wasincash.3.Attheendoftheyear,itturnedoutthatunsoldfoodonhandcost$550andsuppliesonhandcost$1740.4.Depreciationexpensefortheyearwas$2380.5.Thecompany’sincometaxexpensefor2008wasestimatedas$4460.6.Thecompany'sboardofdirectorsdeclaredadividendof$1000.Cashinflowsandoutflowsby31March2008notalreadymentioned:7.Collectionsofrevenueoncredittotaled$3330.8.Paymentstosupplierstotaled$59,420.9.Thecompanypaid$3000towarditsincometax.10.Only$800ofthedividendhadbeenpaid.8Trueoffalsequestions9Chapter11.Thestablemonetaryunitconceptmeansthatthetypeofcurrencyusedforthefinancialstatementsisnotexpectedtochange.2.Theobjectivityprinciplestatesthatassetsandservicesshouldberecordedattheiractualcost,sincecostisareliablemeasuretouseinfinancialaccounting.3.Usingaccrualaccounting,revenuesarenotrecordeduntilthecashfortherevenueisreceived.4.Accrualaccountingismorecompleteandcomplexthancashaccounting.5.Thematchingprinciplerequirestheidentificationofliabilitiesandmatchingthemwiththeassetsusedtopaythem.10Chapter16.Undertherevenueprinciple,businessesshouldrecordrevenuewhenitisearnedregardlessofwhenpaymentisreceivedfromthecustomer.7.Theapplicationofthematchingprincipleresultsintherecognitionofnetincomeornetloss.8.Accrualaccountingprovidessomeethicalchallengesthatcashaccountingavoids.9.Thehistoricalcostprincipleappliesevenwhenafirmisnotagoingconcern.10.Therearenoexceptionstotherevenuerecognitionrulethatrevenueisonlyrecognizedatthetimeofsale.11Chapter21.Thegeneralledgercontainstheaccountsthatmakeuptheentity’sfinancialstatements.2.Whenspecialjournalsareused,themorethetransactionsthatareinvolved,themorethepostingtimeissaved.3.Evenifthetrialbalanceprovidesarithmeticalproofthatdebitsequalcredits,itdoesnotdetectallerrors.4.A$800receiptfromacustomerinpaymentofhisaccountpostedasa$800debittoCashanda$8credittoAccountsReceivablewillnotcausethetrialbalancetobeoutofbalance.5.Iftheequipmentaccounthasabalanceof$22,500anditsaccumulateddepreciationaccounthasabalanceof$14,000,thebookvalueoftheequipmentis$8,500.12Assignment