会计英语Unit (3)

Click to edit title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Click to edit title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Accounting English,Unit Five,Learning Objectives,Unit Five,to understand the definition of assets;,to understand the classification of assets.,One hospital maintains an auxiliary generator for use in electrical outages. Such outages are rare, and the generator has not been used for the past two years. Should the generator be reported as a fixed asset on this hospitals balance sheet?,Warming-up,Unit Five,Vocabulary,Unit Five,intangible,deferred,subsequent,administrative,obligation,conversion,category,utilization,expenditure,renovation,salvage,depreciation,amortize,无形的,延期的,后来的，其次的,管理的；行政的,义务,变换；转化；换算,种类,利用，使用,支出，消费,修理,残,(,货价,),值,折旧,摊销，分期偿付,Notes,Unit Five,intangible asset: assets that are saleable though not material or physical,无形资产，或称,immaterial asset,。它是指没有实物形态的资本性资产，其价值反映了企业所拥有的权益和未来的收益，如版权、专利、商标、信誉等。,Current assets are assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the business normal operating cycle if longer than a year. Current assets of enterprises shall include cash on hand, cash in bank, marketable securities, receivable, prepayments and inventory.,流动资产是预期能在一年或超过一年的一个营业周期内变现、出售或耗用的资产。企业的流动资产，包括库存现金、银行存款、有价证券、应收账款、预付账款以及存货。,Notes,Unit Five,Receivables and prepayments include notes receivable, accounts receivable, other receivables, accounts prepaid and prepaid expenses, etc.,应收及预付款各项包括：应收票据、应收账款、其他应收款、预付账款、待摊费用等。,A provision for bad debts may be set up on accounts receivable and the provision for bad debts shall be shown as a deduction item of accounts receivable in the financial statement.,应收账款可以计提坏账准备金。坏账准备金在会计报表中作为应收账款的备抵工程列示。,Inventories refer to merchandise, finished goods, semi-finished goods, goods in process, and all kinds of materials, fuels, containers, low-value and perishable articles and so on that stocked for the purpose of sale, production or consumption during the production operational process.,存货是指企业在生产经营过程中为销售或耗用而储存的各种资产，包括商品、产成品、半成品、在产品以及各类材料、燃料、包装物、低值易耗品等。,long-term asset,即,long-lived asset,也是指固定资产。,Furniture and fixtures,家具和装修，家具指办公所许的桌子、椅子、办公柜等器具；装修指室内壁纸、吸音板、吊灯等装潢设施。,Notes,Unit Five,Fixed assets refer to the assets whose useful life is over one year, unit value is above the prescribed criteria and where original physical form remains during the process of utilization, including building and structures, machinery and equipment, transportation equipment, tools and implement, etc.,固定资产是指使用年限在一年以上，单位价值在规定标准以上，并在使用过程中保持原来物质形态的资产，包括房屋及建筑物、机器设备、运输设备、工具器具等。,plant and equipment,厂房和设备。这是指企业在生产和经营的过程中所使用的固定资产，包括土地、厂房、机器、设备、运输工具等。与,fixed asset,和下文的,property, plant and equipment,意思一样。狭义的,plant,是指厂房。,Notes,Unit Five,Exercises,Unit Five,I. Word Study.,Match the terms in the left column with the definitions in the right column.,A,B,1. franchise,2. depreciation method,3. plant assets,4. book value,5. mineral deposit,A. tangible assets,B. natural resources,C. intangible assets,D. cost less accumulated depreciation,E. the process of allocating a portion of the cost of a depreciable plant asset to the periods in which it provides benefits,Exercises,Unit Five,II.,Choose the best answer.,1. When specific funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be:,A. offset against interest cost incurred during construction.,B. used to reduce the cost of assets being constructed.,C. multiplied by an appropriate interest rate to determine the amount of interest to be capitalized.,D. recognized as revenue of the period.,Exercises,Unit Five,2. For a non-monetary exchange of plant assets, if the exchange lacks commercial substance, accounting recognition should not be given to:,A. a loss when the assets exchanged.,B. a gain when the assets exchanged.,C. part of a gain when the assets exchanged and cash is received.,D. no gain or loss.,Exercises,Unit Five,3. The book value of an asset classified as plant and equipment is obtained by:,A.deducting accumulated depreciation from the revenue the asset has produced.,B.deducting accumulated depreciation from the original cost of the asset.,C.deducting accumulated depreciation from the original cost of the asset less its salvage value.,D.deducting the original cost of the asset from its current market value.,Exercises,Unit Five,4. Plant assets purchased in exchange for issuing a zero-interest-bearing note should be accounted for at the:,A.face value of the note.,B.fair value of the asset received.,C.book value of the asset received.,D.present value of the note.,Exercises,Unit Five,5. Upon purchase of certain depreciable assets used in its production process, a company expects to be able to replace these assets by adopting a policy of never declaring dividends in amount larger than net income. If a net income is earned each year, recording depreciation will coincidentally result in retention of sufficient assets within the enterprise. If in liquid form, these assets could be used to replace those fully depreciated assets if:,A.prices remain reasonably constant during the life of property.,B.prices rise through the life of property.,C.the retirement depreciation system is used.,D.obsolescence was an unexpected factor in bringing about retirement of the assets replaced.,Exercises,Unit Five,6. A Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should be the excess of the carrying amount of an asset over :,A. the assets book value.,B. the expected future net cash flows.,C. the assets fair value.,D.,the net realizable value with present value of expected future net cash flows,Exercises,Unit Five,7. Charging the cost of ordinary repairs to the machinery and equipment asset account during the current year would:,A.understate net income for the current year.,B.understate shareholders equity at the end of the current year.,C.not affect the total assets at the end of the current year.,D.not affect the total liabilities at the end of the current year.,Exercises,Unit Five,8. The intangible asset goodwill may be:,A.capitalized only when purchased.,B.capitalized either when purchased or created internally.,C.capitalized only when created internally.,D.written off directly to retained earnings.,Exercises,Unit Five,III.,Cases.,1.Use the following information to prepare a bank reconciliation for Company B as of November 30, 2005.,(1)Cash on the books as of November 30 amounted to $27,486.26.,Cash on the bank statement for the same date was $34,256.71.,(2)A deposit of $3,562.46, representing cash receipts of November 30, did not appear on the bank statement.,(3)Outstanding checks totaled $1,823.41.,(4)A check for $605.00 returned with the statement was recorded in the check register as $506.00. The check was made in payment for advertising.,Exercises,Unit Five,(5)Bank service charges for November amounted to $6.50.,(6)The bank collected for Company B $9,100.00 on a note left for collection. The face value of the note was $9,000.,(7)An NSF check for $285.00 from a customer, Joe Thompson, was returned with the statement.,(8)The bank mistakenly returned a check for $200.00 drawn by Company B.,Required:,(1) Prepare a bank reconciliation for Company B as of November 30, 2005.,(2) State the amount of cash that should appear on the balance sheet as of November 30.,Exercises,Unit Five,2.,ABC has a computer that cost $60,000 on March 31, 2003. This old computer had an estimated useful life of six years and a salvage value of $6,000. ABC determines depreciation expense based upon the number of months the fixed asset was held during the year. On December 31, 2006, the old computer is exchanged for a similar computer with cash purchase price of $30,000. Determine the gain/loss on the trade.,assume the transaction has commercial substance,assume the transaction lacks commercial substance,ABC paid $10,000 on the exchange,ABC paid $2,000 on the exchange,ABC received $3,000 on the exchange,ABC received $12,000 on the exchange,Exercises,Unit Five,3,. On April 1, 2005, Corporation A purchased an equipment for 9,000. It has an estimated useful life of 4 years and an estimated residual value of $1,000. Corporation As fiscal year ends December 31.,Required:,(1)Determine depreciation expense for 2005 and 2006 if Corporation A uses the straight-line depreciation method.,(2)Determine depreciation expense for 2005 and 2006 if Corporation A uses the sum-of-years-digits depreciation method.,(3)Determine depreciation expense for 2005 and 2006 if Corporation A uses the double declining-balance depreciation method.,