Bài test tiếng Anh ngành ngân hàng và đáp án phần 3

Ans: D Format: Multiple Choice Learning Objective: LO 1 Level of Difficulty: Easy 26.. Ans: B Format: Multiple Choice Learning Objective: LO 1 Level of Difficulty: Easy 27.. Ans: C Forma

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Format: True/False

Learning Objective: LO 1

Level of Difficulty: Easy

1 GAAP represents a set of rules and procedures that define accounting practice at a particular point in time

Level of Difficulty: Medium

2 GAAP principles determine the rules for how a company can issue stock to raise money

3 The cost principle assumes that both parties to a transaction are economically rational and are free to act independently of each other

4 The balance sheet identifies the productive resources (assets) that a firm uses to generate income, as well as the sources of funding from creditors (liabilities) and owners (shareholders' equity) that were used to buy the assets

B) False

Ans: A

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5 The balance sheet identity can be stated as Total assets = Total liabilities + Total stockholders' equity

6 The balance sheet identity can be stated as Total assets – Total liabilities = Total stockholders' equity

7 Book value is the amount a firm paid for its assets at the time of purchase

Note: Incorrect answer

8 The book value of an asset is the historical cost of the asset less the accumulated depreciation

B) False

Ans: A

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9 The current market value of an asset is the amount that a firm would receive for the asset if it was sold on the open market

10 Preparing a market-value balance sheet is rather straightforward because it is easy to

obtain market values for all assets and liabilities

11 The net cash flow from operating activities (NCFOA) is another term for net income

12 The income statement identifies the major sources of revenues generated by the firm and the corresponding expenses that were needed to generate those revenues

B) False

Ans: A

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13 Accounting profits include noncash revenues (e.g., prepaid rent) and noncash expenses (e.g., depreciation), whereas cash flows do not include these items

14 The key financial statement that ties the other three statements together is the balance sheet, which summarizes the firm's investment and financing activities at a point in time

15 The average tax rate is the total taxes divided by taxable income It takes into account the taxes paid at all levels of income, and therefore it will usually be lower than the marginal tax rate, which is the rate that is paid on the last dollar of income earned

16 Depreciation and amortization are examples of prepaid expenses.

Ans: B

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17 Cash flows from operations are the net cash flows that support a firm's principal business activities

18 Rent and insurance are examples of depletion expenses.

19 Cash flows from operating activities relate to the buying and selling of long-term assets

20 Making and collecting loans, issuing and paying out on insurance contracts, and buyingand selling debt or equity instruments of other firms are examples of financing

activities

Ans: B

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21 Typical financing activities include cash payments on the principal of long-term debt, cash payments of dividends to shareholders, and cash purchases of treasury stock

22 The going concern assumption states that a business will be shutting down its operation

in the near future

23 In a rising price environment, a company using the LIFO method assumes that the sale

of a product is from the newest, highest-cost inventory

24 If a company values its inventory using the FIFO method, when the firm makes a sale

in a rising price environment, it assumes the sale is from the newest, highest-cost inventory

Ans: B

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25 Which of the following sections do annual reports typically contain?

A) financial summary related to the past year's performance

B) information about the company, its products, and its activities

C) audited financial statements, including limited historical financial data

D) All three of the above sections are included in the annual report.

Ans: D

Format: Multiple Choice

26 Annual reports are prepared by a firm's management to

A) communicate to shareholders the firm's failures in the previous year

B) provide overview of the firm's financial and operating performance.

C) highlight the performance of its chief competitors

D) provide a forecast of the economy in the coming years

Ans: B

27 The generally accepted accounting principles (GAAP) are

A) rules that outline how a firm can operate ethically

B) rules on how the firm will be valued in the event of a merger

C) rules and procedures that define how companies are to maintain financial records and prepare financial reports.

D) rules for how a company can issue stock to raise money

Ans: C

28 Accounting standards prescribed by GAAP are important because

A) they make the financial statements of all firms standardized

B) they allow one to examine a firm's performance over time

C) they make it possible for management or analysts to compare the firm's performance to that of other competitors

D) all of the above.

Ans: D

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29 The assumption of arm's-length transaction states that

A) both parties to a transaction can act independently of each other and make

economically rational decisions.

B) both parties to a transaction must have had previous transactions

C) one of the parties to the transaction is a bank that has full knowledge of the firm's

30 Your uncle, who has a second home in Bethany Beach, Delaware, is planning to sell it

in the next few weeks You are interested in buying this beachside property, so your agent negotiates a price for the house with your uncle's agent This transaction is an example of

A) The cost principle

B) the assumption of arm's-length transactions.

C) the realization principle

D) the going-concern assumption

E) the matching principle

Ans: B

31 The going concern assumption implies that

A) a firm will continue to be in business for the foreseeable future.

B) a firm will be going out of business in the near future

C) a firm will continue to operate in the near future but only after being acquired by another firm

D) none of the above

Ans: A

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32 Dell Computer Corporation has receivables of $2.5 million and inventory worth $1.8 million The firm plans to borrow $2 million for working capital purposes from Austin First National Bank In evaluating the loan request, the bank should place the most emphasis on

A) the matching principle

B) the realization principle

C) the going-concern assumption.

D) the assumption of arm's-length transactions

Ans: C

33 The matching principle calls for the accountant of a firm to

A) identify an asset with each liability of the firm

B) associate the revenue generated from a sale to the costs incurred to produce the product.

C) match each item of inventory with the historical cost at which it was acquired

Ans: B

34 Tyson Corporation bought raw materials on April 23, 2008 and also on July 2, 2008 Products produced in the months of May were sold in July The firm uses FIFO to valueits inventory According to the matching principle, the firm's accountant should

associate

A) the inventory acquired on July 2 with the products sold

B) the inventory acquired on April 23 with the products sold.

C) Neither of these dates is valid because the products were sold in July

D) None of the above

Ans: B

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35 According to the realization principle, revenue from a sale of the firm's products are recognized

A) when the products are shipped to the buyer

B) when the buyer orders the goods

C) when cash is realized from the sale of the products

D) at the time of the sale.

Ans: D

36 On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20 The goods wereshipped to Rynex on July 2 The firm's accountants should recognize the sale on

37 The cost principle states that an asset should be recognized on the balance sheet atA) the market value of the asset

B) at the market value less the accumulated depreciation on the asset

C) at its historical cost.

D) at its historical cost less the accumulated depreciation on the asset

Ans: C

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38 Trekkers Footwear bought a piece of machinery on January 1, 2006 at a cost of $2.3 million, and the machinery is being depreciated annually at an amount of $230,000 for

10 years Its market value on December 31, 2008 is $1.75 million The firm's

accountant is preparing its financial statement for the fiscal year end on December 31,

2008 The asset's value should be recognized on the balance sheet at

39 The conventional way of preparing a balance sheet is to list all assets in the order of their

40 Petra, Inc., has $400,000 as current assets, $1.225 million as plant and equipment, and

$250,000 as goodwill In preparing the balance sheet, these assets should be listed in which of the following orders?

A) current assets, goodwill, and plant and equipment

B) current assets, plant and equipment, and goodwill

C) goodwill is not an asset and is not listed here

Ans: B

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41 When prices are rising, valuing ending inventory using the FIFO method rather than LIFO gives

A) inventory a higher value but lowers net income

B) inventory a lower value and also lowers net income

C) both inventory and net income a higher value.

D) inventory a lower value and net income a higher value

Ans: C

42 When prices are falling, valuing inventory using the LIFO method rather than FIFO gives

A) inventory a higher value but lowers net income

B) inventory a lower value and also lowers net income

C) both inventory and net income a higher value.

D) inventory a lower value and net income a higher value

Ans: C

43 Which one of the following is NOT true about goodwill?

A) It is an intangible asset

B) It represents the value of all unrecorded assets acquired in a merger

C) It equals the premium paid over the fair market value of the assets acquired in a merger

D) When goodwill appears on a firm's balance sheet, it reduces the firm's net worth by that amount.

Ans: D

44 Which of the following is NOT true about treasury stock?

A) It is the firm's own shares repurchased in the market by the firm

B) It can be reissued under stock option and other employee benefit plans

C) It lowers the value of the company.

D) It increases the net worth of the company

Ans: C

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45 The major disadvantages of market-value accounting include

A) the difficulty in estimating the current value for some assets

B) the difficulty in applying some of the valuation models used to estimate market values.C) the resulting numbers are potentially open to abuse

D) All of the above are disadvantages of market-value accounting.

Ans: D

46 Which one of the following does NOT belong on an income statement?

A) depreciation and amortization

47 Which one of the following are NOT all noncash items?

A) depreciation, deferred taxes, and prepaid expenses

B) depletion charges, taxes, and amortization

C) depletion charges, deferred taxes, and prepaid expenses

D) depreciation, amortization, and prepaid taxes

Ans: B

48 Which one of the following is NOT a cash flow from operating activities?

A) cash payments on the principal of long-term debt

B) payments for utilities and rent

C) payments to purchase raw materials

D) cash receipts from selling goods and services

Ans: A

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Level of Difficulty: Hard

49 Cash flows from financing activities include all but one of the following:

A) cash payments on the principal of long-term debt

B) issuing and paying out on insurance contracts

C) cash purchases of treasury stock

D) cash proceeds from a bank loan

Ans: B

Level of Difficulty: Hard

50 Which one of the following is NOT a cash flow from investing activities?

A) buying and selling bonds or stock of other firms

B) buying or selling of land, buildings, and plant and equipment

C) cash payments of dividends to shareholders

D) issuing and paying out on insurance contracts

Ans: C

51 Trident Corporation had the following cash flows in the current year Which one of the

following is a financing activity cash flow?

A) Rent on a warehouse amounting to $1.1 million

B) Purchase of $125,000 worth of five-year bonds issued by Towson Utilities

C) Preferred dividends to the tune of $330,000 paid to shareholders

D) Lease income received on a piece of land

Ans: C

52 Clarity Music Company has a marginal tax rate of 34 percent and an average tax rate of

32 percent this year It is planning to construct a new recording studio next year The appropriate tax rate to be applied on the income generated from the new studio isA) the average tax rate

B) the marginal tax rate.

C) either one

Ans: B

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53 Which one of the following is NOT true for a corporation?

A) Interest paid on bonds issued last year is tax deductible

B) Common-stock dividends to be paid this year are not tax deductible

C) Common-stock dividends to be paid this year will be tax deductible if the firm has a net loss for the year.

D) Preferred stock dividends to be paid this year are not tax deductible

Ans: C

54 Maddux, Inc., has completed its fiscal year and reported the following information Thecompany had current assets of $153,413, net fixed assets of $ 412,331, and other assets

of $7,822 The firm also has current liabilities worth $65,314, long-term debt of

$178,334, and common stock of $162,000 How much retained earnings does the firm have?

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55 Galan Associates prepared its financial statement for 2008 based on the information given here The company had cash worth $1,234, inventory worth $13,480, and

accounts receivables of $7,789 The company's net fixed assets are $42,331, and other assets are $1,822 It had accounts payables of $9,558, notes payables of $2,756,

common stock of $22,000, and retained earnings of $14,008 How much long-term debtdoes the firm have?

56 Tumbling Haven, a gymnastic equipment manufacturer, provided the following

information to its accountants The company had current assets of $145,332, net fixed assets of $356,190, and other assets of $4,176 The firm has long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461 What amount of currentliabilities does this firm have?

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57 Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006 It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347 How much long-term debt does the firm have?

58 Chandler Sporting Goods produces baseball and football equipment and lines of clothing This year the company had cash and marketable securities worth $335,485, accounts payables worth $1,159,357, inventory of $1,651,599, accounts receivables of

$1,488,121, short-term notes payable worth $313,663, and other current assets of

$121,427 What is the company's net working capital?

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59 Tre-Bien Bakeries generated net income of $233,412 this year At year end, the

company had accounts receivables of $47,199, inventory of $63,781, and cash of

$21,461 It also had accounts payables of $51,369, short-term notes payables of

$11,417, and accrued taxes of $6,145 The net working capital of the firm is

Total current assets = $21,461 + $47,199 +$63,781 = $132,481

Total current liabilities = $51,369 + $11,417 + $6,145 = $68,931

Net working capital = $132,481 – $68,931 = $63,510

60 Spartan, Inc., is a manufacturer of automobile parts located in Greenville, South

Carolina At the end of the current fiscal year, the company had net working capital of

$157,903 The company showed accounts payables of $94,233, accounts receivables of

$83,112, inventory of $171,284, and cash and marketable securities of $12,311 What amount of notes payables does the firm have?

Total current assets = $12,311 + $83,112 + $171,284 = $266,707

Net working capital = $266,707 – Total current liabilities = $157,903

Total current liabilities = $266,707 – $157,903 = $108,804

Total current liabilities = $108,804 = Accounts payables + Notes payables

Notes payables = $108,804 - $94,233 = $14,571

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