会计英语课后题答案Answer for lesson 1

1.1 Select the best answer for each of the following unrelated items 1.d 2. d 3. b 4. d 5. c 6. c 7.d 8.a 9.b 10.b 11c 12b 13c 14d 15 a

Exercise answer for Lesson 1

1.2 SHORT-ANSWER ESSAY QUESTIONS

1.Accounting cycle is an important concept for accounting. Briefly explain the steps for accounting cycle. Solution: (1)Analyze transactions; (2) Journalize transactions; (3) Post to ledger;(4) Prepare unadjusted trial balance ;(5) Journalize & post adjustments; (6) Prepare adjusted trial balance; (7) Prepare financial statements; (8) Journalize and post closing entries; (9) Prepare post-closing trial balance

2 Your roommate, a marketing major, thinks that debit means decrease and credit means increase. And, that every account can be debited and credited and as result, every account can have both a debit and a credit balance. Explain to your roommate (1) the meaning of debit and credit; (2) which accounts can only be debited, which can only be credited, and which can be both debited and credited; and (3) which accounts normally have debit balances and which credit balances.

Solution: The terms debit and credit mean the left and right side, respectively, of every account. Some accounts such as Dividends and Expenses are only debited; other accounts such as Share Capital-Ordinary and Revenues are only credited; and finally, some accounts such as Cash, Accounts Receivable, and Accounts Payable can be debited and credited. Accounts with debit balances include Assets, Dividends, and Expenses. Accounts with credit balances include Share Capital-Ordinary and Revenues.

3 A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits. Solution:

The basic accounting equation is: Assets = Liabilities + Equity

The expanded equation divides Equity into its various parts, reflecting the shareholders' investment, dividends, revenues, and expenses:

Assets = Liabilities + Share Capital-Ordinary + Retained Earnings – Dividends + Revenues – Expenses

This expanded equation can then be re-arranged to explain why certain accounts have debit (left-hand) balances, while other accounts have credit (right-hand) balances, as follows:

Assets + Dividends + Expenses = Liabilities + Share Capital-Ordinary + Retained Earnings + Revenues

The accounts on the left-hand side of the equation have left-hand, or debit balances, while the accounts on the

right-hand side of the equation have right-hand, or credit balances. Accounts with debit balances are increased with debits and decreased with credits, while accounts with credit balances are increased with credits and decreased with debits.

4 John Dough, a fellow employee, wants to understand the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur. Solution

The basic steps in the recording process are:

1. Analyze each transaction. In this step, business documents are examined to determine the effects of the transaction

on the accounts.

2. Enter each transaction in a journal. This step is called journalizing and it results in making a chronological record of

the transactions.

3. Transfer journal information to ledger accounts. This step is called posting. Posting makes it possible to accumulate

the effects of journalized transactions on individual accounts.

1 ? Lesson 1 Financial Accounting I

5 The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers. Solution

The posting process begins with locating the account(s) being debited in the general ledger. Then entering the date of the entry, the journal page number where the entry originated and debit portion of the entry in the date, reference and debit columns, respectively. Once this done, the account number(s) of the account(s) being debited is (are) entered in the reference column in the journal. Next, the credit portion of the journal entry is posted to the appropriate accounts in the ledger following the same steps as noted for the debit portion.

The importance of the journal page number, in the reference column of each account in the general ledger accounts, is to indicate where to find the original entry. And, the general ledger account numbers, in the reference column of the journal, indicate that the entry has been posted.

1.3 The effects of transactions on the accounting equation

Linda Champion began a professional accounting practice on May 1 and plans to prepare financial statements at the end of each month. During May, Champion completed these transactions:

a. Invested

百度搜索“77cn”或“免费范文网”即可找到本站免费阅读全部范文。收藏本站方便下次阅读，免费范文网，提供经典小说综合文库会计英语课后题答案Answer for lesson 1在线全文阅读。