2021湖南金融英语考试模拟卷（6）.docx

2021湖南金融英语考试模拟卷（6）本卷共分为2大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共34题，每题2分。每题的备选项中，只有一个最符合题意） 1. A firms cash flows can be divided into cash flow from: (1) operating activities (2) investment activities, and (3) financing activities. The operation activity cash flows are cash flows-inflows and outflows-directly related to origination and sale of the financial firms assets and to operating costs such as general market activities, security trading activities, interest received and foreclosed collateral. Investment activity cash flows are cash flows and financial investments. Clearly, purchase transactions would result in cash outflows whereas sales transaction would generate cash inflows. The financing activity cash flows result from debt and equity financing transactions. Borrowing and repaying either short - term debt or long - term debt would result in a corresponding cash inflow or outflow. Similarly, the sale of common or preferred stock would result in a cash inflow whereas the repurchase of stock or payment of cash dividends would result in a financing outflow. Summarizing the firms operating, investment, and financing activity cash flows during a given period helps to account for changes in the firms cash position from the beginning to the end of the period chosen. Managing cash is a very important activity for financial intermediaries. The cash flow statement provides the basics structure of all sources and uses of cash.Cash flows from debt and equity financing transactions are said to be a kind of _. Asecurity trading activityBoperating activityCinvestment activityDfinancing activity 2. Open account is an arrangement between the seller whereby the goods are manufactured and delivered before payment is required. Open account provides for payment at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment. The seller must have absolute trust that he will be paid at the agreed date. The seller should recognize that in certain instances it is possible to discount open accounts receivable with a financial institution.he buyer has to prove his promise in an open account.AA. RightBB. WrongCC. Doesnt say 3. A firms cash flows can be divided into cash flow from: (1) operating activities (2) investment activities, and (3) financing activities. The operation activity cash flows are cash flows-inflows and outflows-directly related to origination and sale of the financial firms assets and to operating costs such as general market activities, security trading activities, interest received and foreclosed collateral. Investment activity cash flows are cash flows and financial investments. Clearly, purchase transactions would result in cash outflows whereas sales transaction would generate cash inflows. The financing activity cash flows result from debt and equity financing transactions. Borrowing and repaying either short - term debt or long - term debt would result in a corresponding cash inflow or outflow. Similarly, the sale of common or preferred stock would result in a cash inflow whereas the repurchase of stock or payment of cash dividends would result in a financing outflow. Summarizing the firms operating, investment, and financing activity cash flows during a given period helps to account for changes in the firms cash position from the beginning to the end of the period chosen. Managing cash is a very important activity for financial intermediaries. The cash flow statement provides the basics structure of all sources and uses of cash.Which of the following does not cause cash inflow AOrigination of the financial firms assets.BSale of both operation fixed assets and financial investments.CRepurchase of stock.DBorrowing of long - term or short - term debt. 4. A credit card is a plastic card (or its equivalent) to be used upon presentation by the cardholder to obtain money, goods, or services, possibly under a line of credit established by the card issuer. The cardholder is billed for any outstanding balance. Credit card customers are given a credit limit on the credit card account and can buy goods and services up to this amount. Normally, banks will set different credit lines to the different groups of cardholders. Every time cardholder uses a credit card for purchasing, he/she must sign a sales slip in the presence of the seller, and the signature is then compared to the signature on the card. Copies of the sales slips have the details of the card and they also show the details and amount of the sale. Each month the cardholder receives a statement from the bank which details all the trans- actions in the month, together with the total amount outstanding and any minimum amount that needs to be paid. When the full balance is not settled each month, the cardholder is charged a compound interest ( say 0. 05% ) on the outstanding balance , and this is supposed to provide the bank with a main source of income ( although in China , this revenue is still low because people are reluctant to run into debt) . Other two major sources of credit card services are the annual fee from the cardholders and the percentage of the sales revenue as the commission paid by the seller.Each month the credit cardholder will receive a statement from the bank showing the de- tails of the transactions excluding the total amount outstanding. AA. RightBB. WrongCC. Doesnt say 5. Open account is an arrangement between the seller whereby the goods are manufactured and delivered before payment is required. Open account provides for payment at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment. The seller must have absolute trust that he will be paid at the agreed date. The seller should recognize that in certain instances it is possible to discount open accounts receivable with a financial institution.The seller in an open account must know that in some circumstances he can present open account receivable to a law institution for acceptance.AA. RightBB. WrongCC. Doesnt say 6. A firms cash flows can be divided into cash flow from: (1) operating activities (2) investment activities, and (3) financing activities. The operation activity cash flows are cash flows-inflows and outflows-directly related to origination and sale of the financial firms assets and to operating costs such as general market activities, security trading activities, interest received and foreclosed collateral. Investment activity cash flows are cash flows and financial investments. Clearly, purchase transactions would result in cash outflows whereas sales transaction would generate cash inflows. The financing activity cash flows result from debt and equity financing transactions. Borrowing and repaying either short - term debt or long - term debt would result in a corresponding cash inflow or outflow. Similarly, the sale of common or preferred stock would result in a cash inflow whereas the repurchase of stock or payment of cash dividends would result in a financing outflow. Summarizing the firms operating, investment, and financing activity cash flows during a given period helps to account for changes in the firms cash position from the beginning to the end of the period chosen. Managing cash is a very important activity for financial intermediaries. The cash flow statement provides the basics structure of all sources and uses of cash.The cash flow statement provides the basic structure of all _. Aassets and liabilitiesBsources and uses of cashCitems of interest incomeDdividends paid 7. A credit card is a plastic card (or its equivalent) to be used upon presentation by the cardholder to obtain money, goods, or services, possibly under a line of credit established by the card issuer. The cardholder is billed for any outstanding balance. Credit card customers are given a credit limit on the credit card account and can buy goods and services up to this amount. Normally, banks will set different credit lines to the different groups of cardholders. Every time cardholder uses a credit card for purchasing, he/she must sign a sales slip in the presence of the seller, and the signature is then compared to the signature on the card. Copies of the sales slips have the details of the card and they also show the details and amount of the sale. Each month the cardholder receives a statement from the bank which details all the trans- actions in the month, together with the total amount outstanding and any minimum amount that needs to be paid. When the full balance is not settled each month, the cardholder is charged a compound interest ( say 0. 05% ) on the outstanding balance , and this is supposed to provide the bank with a main source of income ( although in China , this revenue is still low because people are reluctant to run into debt) . Other two major sources of credit card services are the annual fee from the cardholders and the percentage of the sales revenue as the commission paid by the seller.If the balance of the credit card is not fully settled, the cardholder will have to pay a com- pound interest on the outstanding amount. AA. RightBB. WrongCC. Doesnt say 8. A firms cash flows can be divided into cash flow from: (1) operating activities (2) investment activities, and (3) financing activities. The operation activity cash flows are cash flows-inflows and outflows-directly related to origination and sale of the financial firms assets and to operating costs such as general market activities, security trading activities, interest received and foreclosed collateral. Investment activity cash flows are cash flows and financial investments. Clearly, purchase transactions would result in cash outflows whereas sales transaction would generate cash inflows. The financing activity cash flows result from debt and equity financing transactions. Borrowing and repaying either short - term debt or long - term debt would result in a corresponding cash inflow or outflow. Similarly, the sale of common or preferred stock would result in a cash inflow whereas the repurchase of stock or payment of cash dividends would result in a financing outflow. Summarizing the firms operating, investment, and financing activity cash flows during a given period helps to account for changes in the firms cash position from the beginning to the end of the period chosen. Managing cash is a very important activity for financial intermediaries. The cash flow statement provides the basics structure of all sources and uses of cash.The statement of cash flow helps a firm to manage its _. AassetsBassets and liabilitiesCcapital structureDliquidity position 9. Liquidity risk arises from the inability of a bank to accommodate unexpected decreases in U (21) /U or to fund increases in U (22) /U. When a bank has U (23) /U liquidity, it cannot obtain sufficient funds, either by increasing liabilities or by U (24) /U assets promptly, at a reasonable cost, thereby affecting profitability. In extreme cases, insufficient liquidity cam lead to the U (25) /U of a bank. AliabilitiesBassetsCsufficiencyDsupply 10. China will continue to pursue a U (26) /U monetary policy, and seek refinements in the conduct of monetary policy by relying on U (27) /U policy instruments. First, open market operation will be expanded, and the quality of the relevant decision - making will be improved to U (28) /U the timing and scale of open market transactions. Transaction frequency will be U (29) /U and fine -tuning measures will be taken as the occasion warrants. Flexibility will be exercised in selecting modes of transaction so give further play to the open market in guiding U (30) /U interest rates.AopenBsoundCsafeDoverall 11.These are four main methods of securing payment in international trade: (1) payment under documentary credit (2) open account (3) collection, that is document against payment or acceptance of a bill of exchange (4) payment in advance From an exporters point of view, the order of preference is _.A(4), (2), (3), (1)B(4), (3), (1), (2)C(4), (1), (3), (2)D(2), (4), (1), (3) 12. The reliability principle requires that accounting information be dependable-free from significant error and bias. Users of accounting information rely on its truthfulness. To be reliable, information must be verifiable by people outside the business; Financial statement users may consider information reliable if independent experts would agree that the information is based on objective and honest measurement. Consider the error in a companys failure to accrue interest revenue at the end of an accounting period. This error results in understated interest revenue and understated net income. Clearly, this companys accounting information is unreliable. Biased information - data prepared from a particular viewpoint and not based on objective facts - is also unreliable. Suppose a company purchased inventory for $ 25. 000. At the end of the accounting period, the inventory had declined in value and can be replaced for $ 20 000. Under the lower of cost or market rule, the company must record a $ 5 000 loss for the decrease in the inventorys value. Company management may believes that the appropriate value for the inventory is $ 22 000, but that amount is only an opinion. If management reports the $ 22 000 figure, total assets and owners equity will be overstated on the balance sheet. Income will be overstated on the income statement. To establish a reliable figure for the inventorys value, management could get a current price list from the inventory supplier or call in an outside professional appraiser to revalue the inventory. Evidence obtained from outside the company leads to reliable, verifiable information. The reliability principle applies to all financial accounting information -from assets to owners equity on the balance sheet and from revenue to net income on the income statement. What does the reliability principle of accounting information involve AThe accounting information should depend on the principle.BThe accounting information should be free from significant error and bias.CThe accounting information relies on independent experts.DThe accounting information must be verifiable by people outside. 13. China will continue to pursue a U (26) /U monetary policy, and seek refinements in the conduct of monetary policy by re