Key to Exercises
Unit 1
Lead-in
accounting; currency; accountant; CPA
Section A
Exercise 1
accounting accountant
currency major
CPA investor
regulator creditor
make up one’s mind to a variety of
Exercise 2
1.I major in accounting./ My major is accounting.
2.CPA is Certified Public Accountant.
3.Accounting has also been called “language of business”.
4.Accounting measures the results of an organization’s economic activities and convey this information to a variety of users including investors, creditors, management, and regulators.
5.Accounting records the past growth or decline of the business and helps analyze results and trends the business may grow in future.
Exercise 3
(a possible version)
A: Long time no see!
B: Yeah, it has been almost four months since the last time we met.
A: How is your college life? Is it fun?
B: Yeah, it’s fresh and colorful, I’m busy with studying and taking part in various activities.
A: Sounds good! By the way, what are you major in?
B: My major is accounting.You know, it’s like measuring the results of an organization’s economic activities and convey this information to a variety of users.
A: Great! I know that accountancy matters a lot in our daily life and being an excellent accountant is really worthy and challenging.
B: Hope I could make it someday!
A: Absolutely you will!
Section B
Exercise 1
1.D 2.B 3.D 4.C 5.A
Exercise 2
1.Investors 2.Management 3.Employee and labor union 4.Lenders
5.Suppliers 6.Customers 7.Competitors 8.Government
Exercise 3
Translation A
1.作为历史上最古老的职业之一，会计和人类文明的历史一样悠久。会计对于各个历史阶段都十分重要，会计师参与了国家、贸易、金融、货币和银行的发展。
2.个体独营企业由一人所有和管理，虽然可能拥有不同数量的员工。
3.一般而言，会计信息使用者可分为两种：内部信息使用者和外部信息使用者。
4.财务会计为外部的信息使用者提供财务报表；管理会计为管理层提供实时更新的详细信息。
5.会计这一职业在当今经济社会中给有能力的人提供了升迁的机会。事实上，世界上许多大公司的领导者都是从会计部门升到现有位置上的。
Translation B
Many people have chosen accounting as a professional because of its many advantages.Many jobs are available, primarily because the education and training for accounting careers have not kept pact with the demand for accounting services.Once on the job, private or governmental accountants have security, and they are usually given the chance to move upward in the company—sometimes, as we have noted, to the top.
Unit 2
Lead-in
1.Account; 2.Debit; 3.Credit
Section A
Exercise 1
1.F 2.T 3.T 4.F 5.F
Exercise 2
(a possible version)
1.Certainly.There are asset accounts, liability accounts, accounts of owner’s equity, revenue accounts and expense accounts.
2.The three-digit system is used to number different accounts.Usually, the first digit refers to the type of the accounts.
3.Asset accounts contain Current Assets, Cash, Notes Receivable, Accounts Receivable, Prepaid Expenses, and Long-term Assets and so on.
4.We need adjusting entries when deferrals or accruals exist.
5.For example, on November 22, we received 8,000 dollars as an advance for providing 100 coats.Several days later, we provided 40 coats to our customer and they accepted.Then we need to adjust our transactions as Dr.Unearned Coats Fees 3,200 dollars and Cr.Coats Fees Earned 3,200 dollars.
Exercise 3
(a possible version)
H=Mr.Hu L=Mr.Li
H: Nice to meet you, Mr.Li.I am Mr.Hu, a senior accountant in this company.
L: Mr.Hu, nice to meet you.I am new here.Please render your help.
H: As you know, an account is the basic unit to store accounting data.We, a large international corporation, have thousands of accounts.To be able to easily find an account, we number different accounts with a three-digit system.
L: I know that in the three-digit system, the first digit refers to the major financial statement classifications.
H: Yes, you are right.In our company, 1 stands for assets; 2 for liabilities; 3 for owner’s equity; 4 for revenues; 5 for expenses.Therefore, asset accounts may be 1,000 to 1,999, and liability accounts may be 2,000 to 2,999.The rest can be done in the same manner.
L: Okay.
H: What’s more, asset accounts contain Current Assets, Cash, Notes Receivable, Accounts Receivable, Prepaid Expenses, and Long-term Assets and so on.Long-term Assets include Land, Buildings, Equipment, Vehicles and Intangible Assets.Liability Accounts include Current Liabilities and Long-term Liabilities.Owner’s equity accounts consist of Capital Accounts, Withdrawal Accounts, Revenues Accounts and Expenses Accounts.
L: I understand.
H: We need adjusting entries when deferrals or accruals exist.Adjusting entries are journal entries that are made at the end of the accounting period.Adjusting entries are applied to allocate revenues and expenses to the period in which they actually belong.
L: What are deferrals?
H: Deferrals are the postponement of the expenses and revenues that have been paid or received before.Our payments often span more than one accounting period.At first, the payments are debited to one asset account.However, at the end of one accounting period, we need to transfer the expired amounts from the asset account to the expense account.Prepaid expenses, unearned revenues and depreciation of assets may involve deferrals.
L: Can you give me an example?
H: Of course, such as unearned revenues.Revenues may be received before services are provided.Unearned revenues should be liability.For example, on November 22, we received 8,000 dollars as an advance for providing 100 coats.Several days later, we provided 40 coats to our customer and they accepted.Then we need to adjust our transactions as Dr.Unearned Coats Fees 3,200 dollars and Cr.Coats Fees Earned 3,200 dollars.
L: Okay, I get it.It’s very kind of you.Thanks a lot.
H: You are welcome.
Section B
Exercise 1
1.C 2.B 3.B 4.D 5.C
Exercise 2
1.classifying 2.statutorily 3.chronological
4.Alternatively 5.fiscal 6.Periodicity
7.account 8.imply 9.equity
10.payroll
Exercise 3
1.老板把一名会计师从在职人员名单中除了名。
2.这家会计师事务所故意毁坏文件，阻挠政府的调查工作。
3.我建议他将钱存进企业账户，从而确保有合适的会计计量方法，使得交易记录最优化。
4.账户是资产或个人的一系列金融交易的记录，比如在银行，经纪业务，信用卡公司或零售店。更广泛地说，账户是买家和卖家之间对将来支付的安排。
5.这与政府对银行的刺激政策有很大关系。银行可以从联邦政府以0%的利率贷款，存进自己的准备账户或国库，净赚2%。
Unit 3
Lead-in
1.Asset; 2.Liability; 3.Expense
Section A
Exercise 1
1.T 2.F 3.T 4.F 5.F
Exercise 2
(a possible version)
1.T account is an individual accounting record that shows information about increases and decreases in one balance sheet or income statement account.
2.The double-entry recording system provides for the equality of total debits and total credits.
3.If total debits do not equal total credits, there must be a mistake.Two important rules about double-entry recording system: Assets=Claims (Liabilities and Owner’s Equity), Total Debits=Total Credits.
4.Investments by the owner of a business are credited to the owner’s capital account and since the owner’s withdrawals of assets decrease owner’s capital, they are debited to the owner’s drawing account.Besides, since revenues increase capital, they are credited in each case to a revenue account that shows the kind of revenue earned.Lastly, Since expenses decrease owner’s capital, they are debited in each case to an expense account that shows the kind of expense incurred.
5.略
Section B
Exercise 1
1.A 2.C 3.D 4.C 5.D
Exercise 2
1.Asset 2.Liability 3.credit side
4.Owner’s equity 5.Revenue 6.ending balance
7.Expense 8.Profit 9.double-entry system
10.T account
Exercise 3
1.在这种情况下，您应该将该流程计算成一个事务。
2.那么在复式记账制下，你资产负债表上的现金资产账户会有一笔增加的记录，同时在广告收入账户上有相对应的一笔同样大小的增加记录。
3.如果收益汇总账户有借方余额，那么公司当期的经营为亏损。
4.复式记账会计是指会计师记录每笔经济业务时借贷分录的金额必须相等。
5.没有资产净值，任何公司都无法生存。
Unit 4
Lead-in
transaction; receipt; journal
Section A
Exercise 1
1.F 2.F 3.F 4.F 5.F
Exercise 2
1.The journal is the accounting record in which transactions are first recorded.
2.Two.
3.Date, account title, debit and credit.
4.The journal can help prevent an error in transaction.
5.It depends on the scale of business.
Exercise 3
L=Lily (intern), K=Kate Smith
L: Good morning, Kate, it’s my great honor to work with you.Since it’s my first day here, I was wondering if you could tell me what I am supposed to do today?
K: OK.It would be helpful if you can journalize the transaction for me.
L: Sure.
(A few hours later)
K: Well, Lily.It’s impressive that you finish the task that assigned to you quicker than I expected.Great.
L: Thank you.
K: But I think you should pay more attention to details.
L: I am sorry, Kate.But could you please be more specific?
K: I mean you can’t use general journal to record all the transactions.The scale of A corporation and B company is different.They should be recorded with general journal and special journal respectively.
L: Thank you for your suggestion, but could you kindly tell me the difference between general journal and special journal?
K: Sure.A general journal may be enough for small business.But if transactions frequently occur, you should use special journal.
L: Got it.I will correct the mistake I just made right now.
Section B
Exercise 1
1.D 2.C 3.B 4.C 5.A
Exercise 2
1.credited 2.debtor 3.transactions
4.Generally 5.recorded 6.chronologically
7.explanation 8.pay 9.journalizing
10.receipt
Exercise 3
1.日记账，也被称为原始记录账，是对所有经济业务按时间顺序（一天一天地）记账的。
2.除了现金收入日记账外，特种日记账还包括现金支出日记账、销售日记账和购货日记账。
3.普通日记账记录了业务发生的时间、借方和贷方的账户名称、借贷方的金额以及每笔业务的摘要说明。(https://www.daowen.com)
4.与普通日记账相比，特种日记账被用来记录某类经常发生的经济业务。
5.在实务中，经济业务首先被记录在日记账中，之后单个账户所记录的借贷变化情况被过账到分类账中。
Unit 5
Lead-in
general ledger; journal; trial balance
Section A
Exercise 1
1.F 2.T 3.F 4.T 5.F
Exercise 2
(a possible version)
1.Certainly.This is the trial balance.
2.I worked on the list since last week.
3.I have posted 80% of these figures to the general ledger.
4.It’s me.
5.Yes, I have checked it.
Exercise 3
(a possible version)
G=Mr.Green Z=Mr.Zhang S=Mr.Smith
Z: Good morning, Mr.Green.Nice to meet you.
G: Good morning.Nice to meet you, too.So, you must be Mr.Zhang?
Z: Exactly.Welcome to Aerofirma.
G: Thank you very much.
Z: I’ll show you the office.Follow me, please.
G: Thank you.
Z: Here we are.
G: Would you please introduce me to the other accountant?
Z: Sure.This is Mr.Smith.He is responsible for making the posting and trial balance.
G: How do you do, Mr.Smith? Nice meeting you.
S: How do you do, Mr.Green? Nice meeting you, too.
Z: Mr.Smith, this is Mr.Green.He will take charge of the accounting office.
S: Welcome, I am looking forward to working with you.And I will work harder.
G: That sounds good.
Section B
Exercise 1
1.D 2.A 3.C 4.D 5.C
Exercise 2
1.omit 2.mismatch 3.equal
4.appropriate 5.liable 6.incidentally
7.reveal 8.journal 9.expensively
10.depreciated
Exercise 3
1.试算平衡充分体现了复式记账体系广为人知的优势——错误校验。
2.在此注意，在将所有该期间的交易过账到总账之后以及将账户余额转移到该期财务报告之前，会计们会建立一个试算平衡表。
3.当公司正确地运用复式原则时，借记总额必然等于贷记总额。
4.该结果后面的数学计算表示每一笔借记交易总额与每一笔贷记交易总额相等。
5.尽管有一个成功的试算平衡表，会计们依然会仔细检查其他未影响试算平衡的计算错误。
Unit 6
Lead-in
the income statement; the balance sheet; the loss and profit statement
Section A
Exercise 1
1.T 2.F 3.T 4.T 5.F
Exercise 2
1.A chart showing the change in equity can bring life to the information.
2.Yes, she will.
3.The draft would be ready next Monday or latest, Tuesday.
4.The difference is on the certainty of accruals and uncertainty of provisions.
5.They need to disclose it as a contingent liability.
Exercise 3
A: Is there any follow-up work in the ledger from your monthly accounts review? Is there any issue I should be aware of?
B: There are some accounting errors to be corrected.
A: Can you explain them to me one by one？
B: For the lease deposit; our records disagree with the landlord’s statement.We expanded our office last year, so we were required to top up our deposit for the space expansion.The payment was recorded as rental instead of deposit.
A: Since it was expensed in a prior year, please transfer it out from the expense account and record it in the asset account.
B: OK.I will.Thank you.
Section B
Exercise 1
1.D 2.B 3.C 4.B 5.C
Exercise 2
1.particular 2.adjusted 3.alternatively
4.format 5.converted 6.acquiring
7.profit 8.balance 9.equity
10.deduced
Exercise 3
1.资产负债表至少每年编一次，也有的按习惯每月编制或按季度编制。
2.利润表是汇总通过配比一定会计期间的收入与费用来反映企业在该时期的经营成果的财务报表。
3.这里的“现金”不仅是我们通常意义上所说的纸币和硬币，还包括现金等价物。
4.现金等价物是指具有极强流动性的短期投资，这些投资可以非常容易和迅速转化为现金，通常是指到期在三个月或三个月以内的投资。
5.其次，根据对上述活动的划分标准，将每一笔现金流入和流出分别填入相应的类别中。
Unit 7
Lead-in
distribution; expense; inventory
Section A
Exercise 1
1.F 2.T 3.F 4.F 5.T
Exercise 2
(a possible version)
1.She is charge of closing entries.
2.Yes.The cost of carriage inwards belongs to the cost of purchases, increasing inventory value on the balance sheet.
3.Remember to check the entries before do closing entries.
4.No, he doesn’t.
5.Do the closing entries over and review the trail balance.
Exercise 3
(a possible version)
C=Mrs.Chen G=Gao (college student)
G: Good morning.
C: Good morning, have a seat.So, you must be student Gao?
G: Yes.
C: OK.Can you introduce yourself briefly?
G: Yes, I’m a senior and my major is accounting.
C: From your school report card, I can see you did well in every course.But our advertisement says we need an accountant with practical work experience.Did you intern anywhere?
G: Yes, I took a part-time job as an accountant at the Teddy Trading Company during my third school year.I became well acquainted with accounting practices.
C: That sounds good.Are you familiar with closing entries?
G: Definitely.When I interned at the Teddy Trading Company, I was in charge of doing closing entries with my superior and I learned a lot.
C: Great.This is what we need.But how to confirm whether the closing entries is correct or not?
G: We need make the trial balance, which can be used to alert us the errors that have made during the process of doing closing entries.
C: OK.You seem to have the right kind of experience.We will get in touch with you by the end of next week.
G: Great.I’m looking forward to hearing from you.I am very interested in this position.
C: I see.Thanks again for the interview.
Section B
Exercise 1
1.D 2.C 3.B 4.A 5.C
Exercise 2
1.assets 2.have accumulated 3.measured
4.Subtracting 5.temporarily 6.financial
7.apply 8.Ultimately 9.transaction
10.permanently
Exercise 3
1.临时性账户只记录与一个会计期间有关的信息，其包括利润表账户、股利账户和收益汇总账户所有信息。
2.收入和费用通过一个结账账户转入所有者权益，这个结账账户被称为本年利润。
3.费用是指在获得收入的过程中，所耗用的产品和劳务的成本，如员工工资，广告支出，租金支出，公用事业费和建筑物、汽车、办公设备一类资产的折旧费用。
4.每个经营年度末，会计将会把临时账户的余额清零，以便能够重新计算每年的利润。
5.当所有的业务登记完毕后，会计就开始结账，以便确定年度利润、计算留存收益、编制资产负债表或者将会计期末的收入与费用账户余额清零，为下一年做准备。
Unit 8
Lead-in
payroll; five insurances; housing fund
Section A
Exercise 1
1.F 2.F 3.T 4.T 5.F
Exercise 2
1.Because we need to pay part of taxes and insurances by ourselves.
2.Personal income tax, five insurances and housing fund.
3.They are endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance.
4.It should be ¥10,000×11%=¥1,100.
5.The housing fund is used for repaying housing loan.
Exercise 3
The five insurances are endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance.And we also need to pay personal income tax and housing fund.The five insurances account for about 11% of gross salary, while you housing fund ranges from 4% to 12%, it’s varied a lot.
Section B
Exercise 1
1.C 2.A 3.B 4.D 5.D
Exercise 2
1.invest 2.capable 3.necessity
4.levied 5.charity 6.substantial
7.enforce 8.profit 9.purchased
10.facilities
Exercise 3
1.税收是联邦、州和地方政府收入的主要来源，会被用于支付公共建筑物、公共教育、高速公路、飞机、火箭、路标的建设花费以及用于支付数百万政府雇员的工资。
2.联邦个人所得税针对不同收入水平的人按不同的税率进行征税，收入越高征税越多。
3.政府不像其他经济部门有主要的收入来源，因此必须依靠税收来支付大部分的花费。
4.在地方一级政府，税收用于支付学校道路、图书馆、体育设施建设花费，同时消防和警察服务以及县市雇员的工资也靠税收支持。
5.在20世纪80年代和90年代，联邦政府每年会借数以万亿计的美元来支付超过本来的税收收入的万亿美元支出。
