This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a key provision of the Sarbanes-Oxley Act? A) Hiring of the audit firm. B) Hiring of executive officers. C) Tax advisory services. D) Investment consulting. Show Answer Correct Answer: A) Hiring of the audit firm. 2. Represents cash received from a customer for goods or services to be provided in a future period A) Deferred Revenue. B) Accrued Liabilities. Show Answer Correct Answer: A) Deferred Revenue. 3. Refers to the process of admitting information into the financial statements A) Recognition. B) Measurement. C) Disclosure. D) None of above. Show Answer Correct Answer: A) Recognition. 4. Assumes inventory cost is a mix of all goods available for sale. Average us weighted by number of units. A) Specific Identification method. B) Average Cost. C) FIFO (First In, First Out). D) LIFO (Last in, First Out). Show Answer Correct Answer: B) Average Cost. 5. Which of the following is not an accurate representation concerning revenue recognition? A) Revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers. B) Revenue from services rendered is recognized when cash is received or when services have been performed. C) Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used. D) Revenue from disposing of assets other than products is recognized at the date of sale. Show Answer Correct Answer: B) Revenue from services rendered is recognized when cash is received or when services have been performed. 6. Recognizes revenue when it is earned and expenses when they are incurred A) Cash Basis. B) Accrual Basis. Show Answer Correct Answer: B) Accrual Basis. 7. Maximum number of shares a company may legally issue A) Authorized Shares. B) Issued Shares. C) Outstanding Shares. D) None of above. Show Answer Correct Answer: A) Authorized Shares. 8. On September 1, Harry purchased $ 13, 300 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $ 280. Payment for the purchase was made on September 18. Assuming Harry uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase? A) $ 13, 167. B) $ 13, 447. C) $ 13, 580. D) $ 13, 300. E) None of these. Show Answer Correct Answer: A) $ 13, 167. 9. PT Banjar purchased a machine in 2012 with an allocated acquisition price of IDR 9.2 billion for the machine body and IDR 1.2 billion for the motor components. In 2015, the motor components of the machine were replaced with a new motor at a cost of IDR 2.2 billion. At the time of replacement, the accumulated depreciation of the machine body was IDR 3.5 billion and the accumulated depreciation of the motor was IDR 800 million. How much value should be derecognized on the replacement date? A) IDR 2.2 billion. B) IDR 1.2 billion. C) IDR 400 million. D) Nol. Show Answer Correct Answer: C) IDR 400 million. 10. Mention the activities in the cash flow statement. A) Operating Activities, Investments and Expenditures. B) Investment Activities, Funding and Expenditures. C) Operational, Investment and Funding Activities. D) Investment, Funding and Financing activities. Show Answer Correct Answer: C) Operational, Investment and Funding Activities. 11. There are two methods for recording accounts regarding capital shares returned: A) Cost method and Value method. B) Cost method and fair value method. C) Cost method and market price method. D) Cost method and book value method. E) Value price method and fair value method. Show Answer Correct Answer: A) Cost method and Value method. 12. Faithful representation bermakna bahwa A) The numbers and their descriptions show what actually exists or happened. B) Manage the Company honestly and fairly. C) Generate maximum profit. D) Covering the company's losses last year. Show Answer Correct Answer: A) The numbers and their descriptions show what actually exists or happened. 13. It is a type of Partners wherein it contributes money, property and belongings. A) General Partner. B) Limited Partner. C) Capitalist Partner. D) Industrial Partner. Show Answer Correct Answer: C) Capitalist Partner. 14. The process of buying asset in business operations is called ..... ? A) Investing Activities. B) Financing Activities. C) Operating activities. D) Raising Capital. Show Answer Correct Answer: A) Investing Activities. 15. A mining company declares a liquidating dividend. The journal entry for this dividend announcement on the debit side is A) Retained Earnings. B) Share Premium. C) Accumulated Depletion. D) Accumulated Depreciation. Show Answer Correct Answer: B) Share Premium. 16. Not subject to amortization A) Finite useful life. B) Indefinite useful life. Show Answer Correct Answer: B) Indefinite useful life. 17. What is the accounting treatment for Unearned Income when the goods or services have been enjoyed by consumers (revenue is earned)? A) Debit the Income account, and credit the Income Received in Advance. B) Debit Income Received in Advance, and credit the Income account. C) Debit cash, and credit Earnings Received in Advance. D) Debit Income Received in Advance, and credit Cash. Show Answer Correct Answer: B) Debit Income Received in Advance, and credit the Income account. 18. What is the estimated use the company expects to receive from the asset? A) Service life. B) Cost Allocation. C) Overhead Costs. D) None of above. Show Answer Correct Answer: A) Service life. 19. What inventory valuation method is used when the assumption is made that inventory valuation is based on the order in which it is received A) FIFO. B) LIFO. C) Weighted Average. D) Weighted Continue. Show Answer Correct Answer: A) FIFO. 20. The following are categories of Other Comprehensive Income, except..... A) Hedging. B) Translation. C) Revaluation Surplus. D) Impairment Loss. Show Answer Correct Answer: D) Impairment Loss. ← PreviousNext →Related QuizzesAccounting QuizzesIntermediate Accounting Quiz 1Intermediate Accounting Quiz 2Intermediate Accounting Quiz 3Intermediate Accounting Quiz 4Intermediate Accounting Quiz 5Intermediate Accounting Quiz 6Intermediate Accounting Quiz 7Intermediate Accounting Quiz 8Intermediate Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books