懷爾德會計學原理21版英語題庫答案

1、懷爾德會計學原理21版英語題庫答案Chapter 1Accounting in BusinessQUESTIONS1 The purpose of accounting is to provide decision makers with relevant and reliableinformation to help them make better decisions Examples include information forpeople making investments, loans, and business plans2 Technology reduces the tim

2、e, effort, and cost of recordkeeping There is still ademand for people who can design accounting systems, supervise their operation,analyze complex transactions, and interpret reports Demand also exists for peoplewho can effectively use computers to prepare and analyze accounting reportsTechnology w

3、ill never substitute for qualified people with abilities to prepare, use,analyze, and interpret accounting information.3. External users and their uses of accounting information include: (a) lenders, tomeasure the risk and return of loans; (b) shareholders, to assess whether to buy,sell, or hold the

4、ir shares; (c) directors, to oversee their interests in the organization;(d) employees and labor unions, to judge the fairness of wages and assess futureemployment opportunities; and (e) regulators, to determine whetherthe organizationis complying with regulations Other users are voters, legislators

5、, governmentofficials, contributors to nonprofits, suppliers and customers4. Business owners and managers use accounting information to help answerquestions such as: What resources does an organization own? What debts are owed?How much income is earned? Are expenses reasonable for the level of sales

6、? Arecustomers ' accounts being promptly collected?3 Service businesses include: Standard and Poor 4s, Dun & Bradstreet, Merril1 Lynch,Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential.BusinessesMotor Co.,offering products include Nike, Reebok, Gap, Apple Computer, FordPhi

7、lip Morris, Coca-Cola, Best Buy, and Circuit City6 The internal role of accounting is to serve the organization "s internal operatingfunctions It does this by providing useful information for internal users incompleting their tasks more effectively and efficiently. By providing this information

8、,accounting helps the organization reach its overall goals7 Accounting professionals offer many services including auditing, managementadvice, tax planning, business valuation, and money management8. Marketing managers are likely interested in information such as sales volume,advertising costs, prom

9、otion costs, salaries of sales personnel, and salescommissions9. Accounting is described as a service activity because it serves decision makers byproviding information to help them make better business decisions10. Some accounting-related professions include consultant, financial analyst,underwrite

10、r, financial planner, appraiser, FBI investigator, market researcher, andsystem designer.11 Ethics rules require that auditors avoid auditing clients in which they have a directinvestment, or if the auditor "s fee is dependent on the figures in the client "s reportsThis will prevent others

11、 from doubting the quality of the auditor "s report12. In addition to preparing tax returns, tax accountants help companies and individualsplan future transactions to minimize the amount of tax to be paid They are alsoactively involved in estate planning and in helping set up organizations Some

12、 taxaccountants work for regulatory agencies such as the IRS or the various statedepartments of revenue These tax accountants help to enforce tax laws 13. The objectivity concept means that financial statement information is supported byindependent, unbiased evidence other than someone "s opini

13、on or imagination. Thisconcept increases the reliability and verifiability of financial statement information. 14. This treatment is justified by both the cost principle and the going-concernassumption.15. The revenue recognition principle provides guidance for managers and auditors sothey know when

14、 to recognize revenue If revenue is recognized too early, thebusiness looks more profitable than it is. On the other hand, if revenue isrecognized too late the business looks less profitable than it is. This principledemands that revenue be recognized when it is both earned and can be measuredreliab

15、ly. The amount of revenue should equal the value of the assets received orexpected to be received from the business "s operating activities covering a specifictime period16. Business organizations can be organized in one of three basic forms: soleproprietorship, partnership, or corporation. The

16、se forms have implications for legalliability, taxation, continuity, number of owners, and legal status as follows：Proprietorship Partnership CorporationBusiness entity yes yes yesLegal entity no no yesLimited liability no* no* yesUnlimited life no no yesBusiness taxed no no yesOne owner allowed yes

17、 no yes*Proprietorships and partnerships that are set up as LLCs provide limited liability.17. (a) Assets are resources owned or controlled by a company that are expected toyield future benefits(b) Liabilities are creditors 4 claims on assets that reflectobligations to provide assets, products or se

18、rvices to others(c) Equity is theowner 4s claim on assets and is equal to assets minus liabilities(d) Net assets referto equity18. Equity is increased by investments from the owner and by net income It isdecreased by withdrawals by the owner and by a net loss (which is the excess ofexpenses over rev

19、enues)19. Accounting principles consist of (a) general and (b) specific principles General preparingprinciples are the basic assumptions, concepts, and guidelines forfinancial statements They stem from long-used accounting practices. Specificprinciples are detailed rules used in reporting on busines

20、s transactions and eventsThey usually arise from the rulings of authoritative and regulatory groups such asthe Financial Accounting Standards Board or the Securities and ExchangeCommission.20. Revenue (or sales) is the amount received from selling products and services 21 Net income (also called inc

21、ome, profit or earnings) equals revenues minus expenses(if revenues exceed expenses) Net income increases equity If expenses exceedrevenues, the company has a Net Loss Net loss decreases equity22. The four basic financial statements are: income statement, statement of owner "sequity, balance sh

22、eet, and statement of cash flows23. An income statement reports a company "s revenues and expenses along with theresulting net income or loss over a period of time24. Rent expense, utilities expense, administrative expenses, advertising and promotionexpenses, maintenance expense, and salaries a

23、nd wages expenses are someexamples of business expenses25. The statement of owner "s equity explains the changes in equity from net income orloss, and from any owner contributions and withdrawals over a period of time 26. The balance sheet describes a company "s financial position (types a

24、nd amounts ofassets, liabilities, and equity) at a point in time27. The statement of cash flows reports on the cash inflows and outflows from acompany "s operating, investing, and financing activities28. Return on assets, also called return on investment, is a profitability measure that isusefu

25、l in evaluating management, analyzing and forecasting profits, and planningactivities It is computed as net income divided by the average total assets Forexample, if we have an average annual balance of $100 in a bank account and itearns interest of $5 for the year, then our return on assets is $5 /

26、 $100 or 5%. Thereturn on assets is a popular measure for analysis because it allows us to comparecompanies of different sizes and in different industriesA 29. Return refers to income, and risk is the uncertainty about the return we expect tomake The lower the risk of an investment, the lower the ex

27、pected return. Forexample, savings accounts pay a low return because of the low riskof a bank notreturning the principal with interest Higher risk implies higher,but riskier, expectedreturnsB30. Organizations carry out three major activities: financing, investing, and operatingFinancing provides the

28、 means used to pay for resources Investing refers to theacquisition and disposing of resources necessary to carry out the organization "splans Operating activities are the actual carrying out of these plans(Planning is theglue that connects these activities, including the organization" s i

29、deas, goals andstrategies)B31 An organization "s financing activities (liabilities and equity) pay for investingactivities (assets) An organization cannot have more or less assets than itsliabilities and equity combined and, similarly, it cannot have more or less liabilitiesand equity than its

30、total assets This means: assets = liabilities + equity Thisrelation is called the accounting equation (also called the balance sheet equation),and it applies to organizations at all times32. The dollar amounts in Best Buy 4s financial statements are rounded to the nearest$1, 000, 000. Best Buy 4s co

31、nsolidated statement of earnings (or income statement)covers the fiscal year (consisting of 53 weeks) ended March 3, 2007. Best Buy alsoreports comparative income statements for the previous two years (consisting of 52weeks)33. In thousands, Circuit City 4s accounting equation is:Assets = Liabilitie

32、s + Equity$4, 007, 283 = $2, 216, 039 + $1,791,24434. At December 31, 2006, RadioShack had (in millions) assets of$2, 070. 0, liabilities of$1,4162 and equity of $653835. The independent auditor for Apple, Inc,is KPMG LLP The auditor expressly statesthat our responsibility is to express an opinion o

33、n these consolidated financialstatements based on our audits II The auditor also states that these consolidatedfinancial statements are the responsibility of the Company "s management IIChapter 21EXERCISESExercise 21-1 (25 minutes)1. Allocation of Indirect Expenses to Four Operating Departments

34、Supervision expensesDepartment Employees % of Total CostMaterials 4020% $16, 000Personnel 2211 8, 800Manufacturing 10452 41,600Packaging 3417 13, 600Totals 200 100% $80, 000Utilities expensesDepartment Square Feet % of Total CostMaterials 27,000 27% $16,470Personnel 5,000 5 3, 050Manufacturing 45,00

35、0 45 27,450Packaging 23,000 23 14,030Totals 100,000 100% $61,000Insurance expensesDepartment Asset Value % of Total CostMaterials $60, 000 50% $ & 350Personnel 1， 200 1 167Manufacturing 42,000 35 5, 845Packaging 16,800 14 2, 338Totals$120,000 100% $16, 7002 Report of Indirect Expenses Assigned t

36、o Four OperatingDepartmentsSupervision Utilities Insurance TotalMaterials$16,000 $16,470 $ & 330 $40, 820 Personnel& 800 3, 050 167 $ 12, 017Manufacturing 41,600 27, 450 5, 845 $ 74, 895Packaging 13,600 14,030 2,338 $ 29,968Totals$80,000 $61,000$16, 700$157,700Exercise 21-2 (30 minutes)Calcu

37、lation of predetermined overhead rates to apply ABCOverhead Cost TotalCategory (Activity Total Amount ofCost Pool) Cost Cost Driver Predetermined Overhead RateSupervision $ 5,400 $36,000 15% of directlabor costDepreciation 56, 600 2, 000 MH $28. 30 permachine hourLine preparation 46,000 250 setups $

38、184.00 per setup1. Assignment of overhead costs to the two products using ABCRounded edgeCost Cost per AssignedDriver Driver Unit CostSupervision $12,200 15% $ 1, 830Machinery depreciation 500 hours $ 28 30 14, 150Line preparation 40setups $184.00 7,360Total overhead assigned $23,340Squared edgeCost

39、 Cost per AssignedDriver Driver Unit CostSupervision $23,800 15% $ 3, 570Machinery depreciation 1,500 hour$ 28.30 42, 450sLine preparation210setups $184.00 38, 640Total overhead assigned $84,6602. Average cost per foot of the two productsRounded edge Squared edgeDirect materials $19,000 $ 43,200Dire

40、ct labor 12,200 23,800Overhead (using ABC) 23,340 84,660Total cost $54,540 $151, 660Quantity produced 10,500 ft. 14,100 ft.Average cost per foot (ABC) $3.19 $10.763 The average cost of rounded edge shelves declines and the average cost of squared edge shelves increases Under the current allocation m

41、ethod, the rounded edge shelving was allocated 34% of all of the overhead cost ($12, 200 direct labor/$36,000 total direct labor) However, it does not use 34% of all of the overhead resources Specifically, it uses only 25% of machine hours (500 MH/2, 000 MH), and 16% of the setups (40/250) Activity

42、based costing allocated the individual overhead components in proportion to the resources usedExercise 21-7 (15 minutes)(1) Items included in performance reportThe following items definitely should be included in the performance report for the auto service department manager because they are control

43、led or strongly influenced by the manager 's decisions andactivities：,Sales of parts,Sales of services,Cost of parts sold,Supplies,Wages (hourly)(2) Items excluded from performance reportThe following items definitely should be excluded from the performance report because the department manager

44、cannot control or strongly influence them:,Building depreciation,Income taxes allocated to the department,Interest on long-term debt,Manager 4s salary(3) Items that may or may not be included in performance report The following items cannot be definitely included or definitely excluded from the perf

45、ormance report because they may or may not be completely under the manager 4s control or strong influence:,Payroll taxes Some portion of this expense relates to the manager 4s salary and is not controllable by the manager The portion that relates to hourly wages should be treated as a controllable e

46、xpense,Utilities Whether this expense is controllable depends on the design of the auto dealership If the auto service department is in a separate building or has separate utility meters, these expenses are subject to the manager 4s contro1. Otherwise, the expense probablyis not controllable by the

47、manager of the auto service departmentExercise 21-9 (20 minutes)Investment Center Net Income Average Assets Return on AssetsElectronics $750,000 $3, 750,000 20%Sporting Goods 800,000 5, 000,000 16%Comment: Its Electronics division is the superior investment center on the basis of the investment cent

48、er return on assetsExercise 21-9 (continued)(2)Investment Center Electronics Sporting GoodsNet income$750, 000 $800, 000Target net income$3, 750, 000 x 12%(450, 000)5, 000, 000 x 12%(600, 000)Residual income $300,000 $200,000Comment: Its Electronics division is the superior investment center on the

49、basis of investment center residual income(3) The Electronics division should accept the new opportunity, since it will generate residual income of 3% (15% - 12%) of the investment "s investedassetsExercise 21-10 (15 minutes)Investment Center Net Income Sales Profit MarginElectronics $750,000 $

50、10,000,000 7.50%InvestmentInvestment Center Sales Average Assets TurnoverElectronics$10,000, 000 $3, 750, 000 2. 67Sporting Goods &000, 000 5, 000, 000 1. 6Comments: Its Sporting goods division generates the most net income per dollar of sales, as shown by its higher profit margin. The Electroni

51、cs division however is more efficient at generating sales from invested assets, based on its higher investment turnoverPROBLEM SET AProblem 21TA (60 minutes)Part 1Average occupancy cost = $111, 800 / 10, 000 sq. ft. = $11. 18 per sq. ft.Occupancy costs are assigned to the two departments as follows

52、Department Square Footage Rate TotalLanya 4s Dept 1,000 $11. 18 $11, 180Jimez 4s Dept 1,700 $11. 18 $19, 006*A total of $30, 186 ($11, 180 + $19, 006) in occupancy costs is charged to these departments The company would follow a similar approach in allocating the remaining occupancy costs ($81, 614,

53、 computed as $111, 800 - $30,186) to its other departments (not shown in this problem)Part 2Market rates are used to allocate occupancy costs for depreciation, interest, and taxes Heating, lighting, and maintenance costs are allocated to the departments on both floors at the average rate per square

54、foot These costs are separately assigned to each class as follows：Total Value-Based Usage-BasedCosts Costs CostsDepreciation一Building$ 31,500 $31,500This is not logical for this type of occupancy It also means theInterestBuilding mortgage 47,00047,000TaxesBuilding and land 14,00014, 000Gas (heating)

55、 expense 4,425$ 4,425Lighting expense Maintenance expense 5, 250 5, 2509, 625 9, 625Total$111,800$92,500 $19,300Problem 21TA (Continued)Value-based costs are allocated to departments in two steps(i) Compute market value of each floorSquare Value perFloor Footage Sq. Ft. TotalFirst floorSecond floor5

56、, 000 $40 $200, 0005, 000 10 50, 000Total market value$250, 000(ii) Allocate $92, 500 to each floor based on its percent of market valueMarket % of Allocated Cost perFloor Value Total Cost Sq. Ft.First floor$200,000 80% $74, 000$14. 80Second floor 50,000 20 1& 500 3.70Totals$250,000 100%$92, 500

57、Usage-based costs allocation rate = $19, 300 / 10, 000 sq. ft=$1. 93 per sq. ft.We can then compute total allocation rates for the floors FloorValue Usage TotalFirst floor $1480 $1.93 $16 73Second floor 3.70 1 93 $ 5. 63These rates are applied to allocate occupancy costs to departmentsSquareDepartment Footage Rate TotalLanya 4s Department 1,000$16.73 $16,730Jimez 4s Department 1,7005.63