【文章內(nèi)容簡介】 ciation expense.（2）The main elements of the financial statements.答：Assets, Liabilities, Equity, Ine, Expenses（3）The purpose of adjusting entries.答：The purpose of adjusting entries is to assign to each accounting period the appropriate amounts of revenue and expenses. in accordance with the realization and matching principles.（4）Lowerofcostormarket答：A method of inventory pricing in which goods are valued at original cost or replacement cost, whichever is lower.2. Translate the following statements into Chinese.（9 points）（1）The terms realized and realizable refer to the conversion or ready convertibility of the enterprise’s product or service into cash or claims to cash. Realized means that the firm’s product or service has been converted to cash or claims to cash, while realizable has been defined as the ability to convert assets already received or held into known amounts of cash or claims to cash.譯文：已實現(xiàn)和可實現(xiàn)這兩個術(shù)語涉及到企業(yè)的產(chǎn)品或服務(wù)向現(xiàn)金或收取現(xiàn)金的要求權(quán)的轉(zhuǎn)化。已實現(xiàn)是指企業(yè)的產(chǎn)品或服務(wù)已經(jīng)轉(zhuǎn)化為現(xiàn)金或收取現(xiàn)金的要求權(quán)，而可實現(xiàn)則定義為將已收到或持有的資產(chǎn)轉(zhuǎn)化成現(xiàn)金或收取現(xiàn)金的要求權(quán)的能力。（2）To understand financial statements and to be able to interpret the “figures” wisely, you must have a certain level of knowledge of the concepts and the measurement procedures used in the accounting process. You should learn what accounting “is really like” and appreciate the reasons for using certain procedures.譯文：要讀懂財務(wù)報表并能正確解釋各數(shù)字的含義，你必須對會計中用到的概念和計量程序有一定的了解。你應(yīng)當懂得會計究竟是什么，并正確理解運用特定程序的原因。3. Please read the following passage carefully and fill in each of the blanks with a word most appropriate to the context. （6 points）The purpose of a statement of cash flows is to （ 1 ）information （ 2 ）cash（ 3 ）and cash（ 4 ）during the（ 5 ）. The statement describes the nature of the pany39。s cash flows, and classifies these cash flows as （ 6 ）activities,（ 7 ）activities, or（ 8 ）activities. All of the cash flows then are bined to show the overall（ 9 ）in the balance of the（ 10 ）account during the（ 11 ）.答案：1. provide 2. about 3. receipts 4. payments 5. period 6. operating 7. investing 8. financing 9. changes 10. cash 11. period4. Multiple choice questions（please circle your choice）.（11 points）(1) Rent revenue collected one month in advance should be accounted for as:A. Revenue in the month collected.B. A current liability.C. A separate item in shareholders39。 equity.D. An accrued liability.E. None of the above.（2）The credit balance of the Allowance for Doubtful Accounts represents:A. Money set aside to take care of any bad debts.B. The amount of bad debts incurred in the previous period.C. The mount of bad debts incurred in the current period.D. The amount of bad debts incurred in the current and previous periods.E. None of the above.（3）In a decade of steadily falling prices, the inventory method which would produce the largest inventory cost on the balance sheet would be:A. FIFO method.B. LIFO method.C. WeightedAverage method.D. Activity method.（4）XY Corporation had net assets of $500000 and contributed capital of $150000. The corporation has 25000 shares of mon stock issued and outstanding. From these information, it can be deduced that the corporation has:A. a deficit of $350000.B. Shareholders’ equity of $14 per share.C. Retained earnings of $500000.D. Shareholders’ equity of $20 per share.（5）The CPA firm auditing XY Recording Service found that retained earning were overstated and liabilities were understated. Which of the following errors could have been the cause?A. Making the adjustment entry for depreciation expenses twice。B. Failure to record interest accrued on a note payable。C. Failure to make the adjusting entry to record revenue which had been earned butnot yet billed to clients。D. Failure to record the earned portion of fees received in advance.（6）In 2002 XY pany purchased equipment for $170000 and also sold some special purpose machinery with a book value of $64000 for $78000. In its statement of cash flows for 2002, XY should report the following with respect to the above transactions:A. $170000 net cash used by investing activities。 $64000 net cash provided by operating activities。B. $92000 net cash used by investing activities。C. $92000 net cash used by investing ac