2022年2022年会计英语选择题 .pdf

1A company acquired 30% of B Company s voting stock for $200 000 on January 2,2004. A s 30% interest in B gave A the ability to exercise significant influence over B s operating and financial policies. During 2004, B earned $ 70 000 and paid dividends of $50 000. B reported earnings of $150 000 for the six months ending June 30, 2005, and $200 000 for the year ending December 31, 2005.on July 1, 2005, A sold half of its stock in B for $140 000 cash. B paid dividends of $60 000 on October 1, 2005. Use the above information to answer the following three questions:Before income taxes , what amount should A include in its 2004 income statement as a result of the investment ? A. $15 000 B. $21 000C. $36 000 D. $80 000 In A s December 31, 2004 Balance Sheet, what should be the carrying amount of this investment? A. $200 000 B. $206 000C. $221 000 D. $236 000 On its 2005 income statement ,what amount should A report as a gain or loss from the sale of half of its investment? A. $22 000 gain B. $23 500 gain C. $500 loss D. $14 500 gain2. On May 1, 2005, ABC purchased 30% of the stock of D Corporation for $600 000. During 2005, D had net income of $100 000. On February 1 and on August 1, D paid $30 000 in dividends. On December 31,2005, the market price of the stock is $630 000. what amount should be shown in the Investment in D Corporation account on ABC s Balance Sheet dated December 31, 2005? A. $621 000 B. $611 000 C. $629 000 D. $630 000 3.When the fair value of investments in debt securities exceeds their carrying amounts, held-to-Maturity securities and available-for-sale securities should be reported at the end of the year at _ Held-to-maturity securities available-for-sale securities A. Fair value Amortized Cost B. Amortized cost Fair value C. Amortized cost Amortized cost D. Fair value Fair value 4.When an investor uses the equity method to account for investments in common stock, the investment account will be increased when the investor recognizes A. a proportionate interest in the net income of the investee. B. a cash dividend received from the investee. C. periodic amortization of the goodwill related to the purchase. D. depreciation related to the excess of market value over book value of the investee s depreciable assets at the date of purchase by the investor. 5. When a company holds between 20%and 50% of the outstanding stock of an investee, which of the following statements applies? A. The investor should always use the equity method to account for its investment. B. The investor should use the equity method to account for its investment unless circumstances indicate that it is unable to exercise “ significant influence” over the investee. C. The investor must use the fair value method unless it can clearly demonstrate the ability to exercise “ significant influence ” over the investee. D. The investor should always use the fair value method to account for its investment. 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 1 页，共 6 页 - - - - - - - - - 6. C Corporation owns 75% of H Inc. During the current year, H Inc. reported net income of $150 000 and declared dividends of $40 000. How much would C Corporation increase Investment in Harrell Inc. Stock for the current year? A. $0 B. $82 500 C. $30 000 D. $112 500 7. G Corporation s temporary investments cost $100 000 recorded as available-for-sale securities and have a market value of $120 000 at the end of the accounting period. The difference between the cost and market value would be reported as a: A. none. B. $20 000 unrealized gain-income. C. $20 000 realized gain. D. $20 000 unrealized gain-equity. 8. If a firm purchases $100 000 of bonds of X company at 101 plus accrued interest of $2 000 and pays broker s commissions of $50, the amount debited to Investment in X company Bonds would be : A. $100 000 B. $103 000 C. $101 050 D. $103 050 1.The rate of interest actually earned by bondholders is called the _ A. coupon rate B. effective yield C. nominal rate D. stated rate 2.Bonds will sell at a premium when the _ A.stated rate is higher than the nominal rate. B.Stated rate is higher than the market rate. C.Effective yield is lower than the market rate. D.Effective yield is lower than the stated rate. 3.Which of the following is an example of off-balance-sheet financing?_ A.Consolidated subsidiary B.Capital lease. C.Zero-interest-bearing note. D.Operating lease. 4.Typical liability accounts include _ A.accounts payable, bank loan, wages payable, drawings B.accounts payable, bank overdraft, wages payable, stationery C.accounts receivable, bank overdraft, wages payable, unearned revenue D.accounts payable, borrowing form the public, bank overdraft, wages payable 5.Which of the following usually is not a current liability? A.Withheld income taxes B.Deposits received form customers C.Deferred tax payable D.All of these 6.After bonds have been issued, their market value can be expected to _ A.rise as any premium is amortized. B.Fall if interest rates rise. C.Fall as any discount is amortized 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 2 页，共 6 页 - - - - - - - - - D.Rise if interest rates rise 7.When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be _ A.decreased by accrued interest from June 1 to November 1. B.Decreased by accrued interest from May 1 to June 1. C.Increased by accrued interest from May 1 to June1. D.Increased by accrued interest from June 1 to November 1 8.A manufacturer of household appliances may incur a loss due to the discovery of a defect in one of its products. The occurrence of the loss is reasonably possible, and the resulting costs can be reasonably estimated. This possible loss should be _ Accrued Disclosed in Footnotes A. Yes NO B. Yes Yes C. No Yes D. No No 9.Taxable income of a corporation_ A.differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. B.Differs from accounting income due to differences in interperiod allocation and permanenet differences between the two methods of income determination. C.Is based on generally accepted accounting principles. D.Is reported on the corporation s income statement. 10. Taxable income of a corporation differs from pretax financial income because of _ Permanent Temporary Differences Differences A. NO NO B. NO Yes C. Yes Yes D. Yes No 1.If a corporation has outstanding 1 000 shares of $9 cumulative preferred stock of $100 par and dividends have been passed for the preceding three years, what is the amount of preferred dividends that must be declared in the current year before a dividend can be declared on common stock?_ A. $9 000 B. $27 000 C. $36 000 D. $45 000 2.All of the following are reasons for purchasing treasury stock except to _ A.make a market for the stock. B.Increase the number of shareholders. C.Increase the earnings per share and return on equity D.Give employees as compensation 3.Paid-in capital for a corporation may arise from which of the following sources? A.Issuing cumulative preferred stock. 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 3 页，共 6 页 - - - - - - - - - B.Receiving donations of real estate. C.Selling the corporation s treasury stock. D.All of the above. 4.Under the equity method, the investment account is decreased by all of the following except the investor s proportionate share of _ A.dividends paid by the investee B.declines in the fair value of the investment. C.The losses of the investee. D.All of the options would decrease the investment account. 5.Cash dividends are paid on the basis of the number of shares_ A.authorized B.issued C.outstanding D.outstanding less the number of treasury shares 6.The stockholders equity section of the balance sheet may include_ A.common stock B.preferred stock C.donated capital D.all of the above 7.Declaration and issuance of a dividend in stock_ A.increases the current ratio. B.Decreases the amount of working capital. C.Decreases total stockholders equity. D.Has no effect on total assets, liabilities, or stockholders equity. 8.If a corporation buys back its own stock, the stock is listed on the balance sheet in the: _ A.current assets section. B.Long term liability section. C.Stockholders equity section. D.Investments section. 9.A corporation has issued 25 000 shares of $100 par common stock and holds 3 000 of these shares as treasury stock, If the corporation declares a $2 per share cash dividend, what amount will be recorded as cash dividend? A. $22 000 B. $25 000 C. $44 000 D. $50 000 10. A company declared a cash dividend on its common stock on December 15,204,payable on January 12, 20 5. How would this dividend affect shareholders equity on the following dates? December 15, January 12, 204 205A. Decrease decrease B. Decrease No effect C. No effect No effect D. No effect Decrease 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 4 页，共 6 页 - - - - - - - - - 1.Net cash flow from operating activities is determined by eliminating_ A.earned revenues from net income. B.Incurred expenses from net income. C.Non-cash expenses from net income. D.Non-cash revenues and non-cash expenses from net income. 2.All of the following adjustments are added to net income in computing net cash flow from operating activities except_ A.Amortization expense B.A decrease in accounts receivable. C.An increase in accounts payable. D.An increase in prepaid expenses. 3.Acquiring assets by issuing equity securities would be reported as _ A.an investing activity. B.A financing activity. C.Both an investing activity and a financing activity. D.A non-cash investing and financing activity. 4.When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities?_ Direct Method Indirect Method A. Increase Decrease B. Decrease Increase C. Increase Increase D. Decrease Decrease 5.When preparing a statement of cash flows ,an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities?_ Indirect Method Direct Method A. Increase Decrease B. Decrease Increase C. Increase Increase D. Decrease Decrease 6.All of the following adjustments would be deducted in determining net cash from operating activities except_ A.amortization of bond premium. B.Decrease in deferred income tax liability. C.Gain on sale of plant assets. D.Increase in accrued liabilities. 7.King Co. has provided the following 2006 current account balances for the preparation of the annual statement of cash flows:_ January 1 December 31 Accounts receivable $11 500 $14 500 Allowance for uncollectible accounts 400 500 Prepaid rent expense 6200 4100 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 5 页，共 6 页 - - - - - - - - - Accounts payable 9700 11200 King s 2006 net income is $75 000. Net cash provided by operating activities in the statement of cash flows should be _ A.$72 700 B.$74 300 C.$75 500 D.$75 700 8.The net income for Chenkai Inc. was $3000 000 for the year ended December 31, 2006. Additional information is as follows:_ Depreciation on fixed assets $1 500 000 Gain from cash sale of land 200 000 Increase in accounts payable 300 000 Dividends paid on preferred stock 400 000 The net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2006 should be _ A.$4 200 000 B.$4 500 000 C.$4 600 000 D.$4 800 000 9.Rory Co. s prepaid insurance was $50 000 at December 31, 2006 and $25 000 at December 31, 2005. Insurance expense was $20 000 for 2006 and $15 000 for 2005. What amount of cash disbursements for insurance should be reported in Rory s 2006 net cash flows from operating activities resented on a direct basis?_ A.$55 000 B.$45 000 C.$30 000 D.$20 000 10.When using the indirect method to prepare the statement of cash flows, the amortization of goodwill should be presented as a(n)_ A.cash flow from investing activities. B.Cash flow from financing activities. C.Deduction from net income. D.Addition to net income. 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 6 页，共 6 页 - - - - - - - - -