Self-test Comprehensive Problems II 综 合 自 测 题 II

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1 Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制 度 intangible assets 毛 利 率 accounts payable ledger 商 品 存 货 周 转 率 2. Put the following sentences into Chinese: (10%) 1) If a company is to earn any net income, the amount of gross profit must exceed the company s operating expenses. 2) When a merchandising business sells goods on credit, the terms of payment should be clearly stated, so that the buyer and the seller can avoid any misunderstanding as to the time and amount of the required payment. 3) The unearned revenue account is classified as a liability account, because a business has an obligation to render services or deliver goods in the future when it collects money in advance from its customers. 4) To maintain an adequate system of internal control, it is essential that all cash receipts during a business day be deposited in the bank, and that all cash disbursements be made by checks. 5) A high merchandise inventory turnover is generally regarded as a good sign, indicating that the inventory is readily marketable. 3. Put the following sentences into English: (15%) 1) 企 业 可 通 过 设 置 零 用 现 金 基 金 来 实 现 对 零 星 现 金 支 出 的 内 部 控 制 2) 有 些 公 司 由 于 缺 乏 足 够 的 营 运 资 金 而 被 迫 暂 停 营 业 3) 后 进 先 出 法 假 定 每 次 发 出 的 存 货 是 最 近 入 库 的 存 货, 而 结 存 的 存 货 是 库 存 最 久 的 存 货 4) 在 定 期 盘 存 制 度 下, 售 出 商 品 的 成 本 等 于 期 初 存 货 加 净 进 货, 再 减 去 期 末 存 货 5) 在 分 类 资 产 负 债 表 中, 资 产 可 再 分 为 流 动 资 产 固 定 资 产 和 其 他 资 产 Part Two (70%) 1. Multiple-choice Questions ( 20% ) 1) During the preparation of a bank reconciliation, you notice that a paid check for 650 yuan had been recorded erroneously in the cash payment journal as 560 yuan. To complete the bank reconciliation, you should a. add 90 yuan to the balance of the depositor s records.

2 b. add 90 yuan to the balance of the bank statement. c. deduct 90 yuan from the balance of the depositor s records. d. deduct 90 yuan from the balance of the bank statement. 2) In posting from the purchases journal to the subsidiary ledger, an employee posts a purchase of 990 yuan as 909 yuan. He should become aware that an error has occurred a. when the general ledger trial balance is taken. b. when the purchases journal is totaled. c. when the subsidiary ledger is reconciled with the controlling account. d. when the controlling account is posted. 3) The total of a single-column sales journal is posted at the end of the month a. as a debit to the Accounts Receivable account and a credit to the Sales account. b. to the Sales account, Cash account, and Accounts Receivable account. c. to the Sales account only. d. as a debit to the Sales account and a credit to the Accounts Receivable account. 4) The book value or carrying value of a depreciable asset is best defined as a. the undepreciated cost of the asset. b. the price that the asset would bring if offered for sale. c. accumulated depreciation on the asset since acquisition. d. original cost of the asset. 5) The ending inventory of Bar Marine was yuan. If the beginning inventory had been yuan and the cost of goods available for sale during the period totaled yuan, the cost of goods sold must have been a yuan. b yuan. c yuan. d. None of the above. 6) If a retail store has a current ratio of 2.5 to 1 and current assets of yuan, the amount of working capital is a yuan. b yuan. c yuan. d yuan. 7) In the work sheet for a merchandising business, the same amount of an item appears both in the debit column of the Income Statement section and the credit column of the Balance Sheet section. It is reasonable to surmise that this item is a. the net loss for the period. b. the net income for the period. c. cost of merchandise sold. d. the beginning inventory. 8) The controlling account in the general ledger that summarizes the debits and credits to the individual customers accounts in the subsidiary ledger is called a. Accounts Payable. b. Accounts Receivable. c. Sales. d. Purchases. 9) In reconciling the bank statement for the White River Company on November 30,

3 200x, you found that the November 30 cash receipts of yuan had been mailed to the bank on that date and did not appear among the deposits on the November bank statement. So a yuan should be added to the cash account balance. b yuan should be deducted from the cash account balance. c yuan should be added to the bank statement balance. d yuan should be deducted from the bank statement balance. 10) Which of the following events is not a transaction which would be recorded in a company s accounting records? a. The purchase of equipment for cash. b. The death of a key executive. c. Bank loans to finance the operations of the business. d. The purchase of equipment on account. 2. Problems (50%) 1) For each of the following transactions, indicate the journal which should be used by placing the appropriate symbol in the space provided. (16%) S = sales journal; P = purchases journal J = general journal CR = cash receipts journal CP = cash payments journal a. Sold merchandise on credit. b. Purchased merchandise for cash. c. Purchased truck for cash for use in business. d. Collected account receivable and allowed a cash discount. e. Recorded depreciation for the period. f. Made entry to close the expense accounts at the end of period. g. Accepted note receivable from customer in settlement of account receivable. h. Paid employee salaries. i. Sold merchandise for cash. j. Purchase merchandise on credit. k. Returned merchandise to supplier for credit. l. Purchased office equipment on credit. m. Allowed customer to return merchandise for credit. n. Made payment of an account payable. o. Borrowed money from a bank by signing a note payable. p. Sold merchandise receiving 10% cash and the balance due in 30 days. 2) Information relating to the inventory quantities, purchases, and sales of a type of merchandise by a business called Tonghe Store during the current year is shown as follows:

4 Number of units Cost per unit Total cost Inventory, Jan. 1, 200x yuan yuan Mar. 20 purchase yuan yuan July 3 purchase yuan yuan Sept. 10 purchase yuan yuan Nov. 30 purchase yuan yuan Goods available for sale yuan Units sold during the year Inventory, Dec. 31, 200x Using the above information, compute the following: (8%) a. The cost of ending inventory by using the fifo method b. The cost of goods sold in the year by using the fifo method c. The cost of ending inventory by using the lifo method d. The cost of goods sold in the year by using the lifo method 3) A partial work sheet for Zhengda Garden Shop is presented below. The merchandise inventory at the beginning of the fiscal period is yuan. Zhengda, the owner, withdrew yuan during the year. Zhengda Garden Shop Work Sheet For the year ended December 31, 200x Account Name Income Statement Debit Credit Sales Sales Returns and Allowances Sales Discount Purchases Purchases Returns and Allowances Wages Expense Rent Expense Commission Expense Income Summary Supplies Expense 416

5 Insurance Expense 520 Depreciation Expense, Equipment Depreciation Expense, Building Net Income Instructions: (26%) a. Prepare an income statement. b. Journalize the closing entries. c. Determine the Gross Profit Rate. d. Determine the Merchandise Inventory Turnover.

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