This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. UK National Bank agrees to lend $ 160, 000 on March 1, 2019, to Butter D Co. if Butter D signs a $ 160, 000, 6 percent, four-month note. Butter D prepares financial statements semiannually. At maturity (July 1), what is the journal entry in Butter D Co. to record payment of the note and accrued interest? A) Dr. Interest expense $ 160, 000Cr. Cash $ 160, 000. B) Dr. Interest payable $ 160, 000Cr. Cash $ 160, 000. C) Dr. Interest expense $ 163, 200Cr. Cash $ 163, 200. D) Dr. Notes payable $ 160, 000Dr. Interest payable $ 3, 200Cr. Cash $ 163, 200. E) Dr. Notes payable $ 160, 000Dr. Interest payable $ 9, 600Cr. Cash $ 169, 600. Show Answer Correct Answer: D) Dr. Notes payable $ 160, 000Dr. Interest payable $ 3, 200Cr. Cash $ 163, 200. 2. On January 1 2012 Mr. Raka deposited money into the "OKE PUNYA" Workshop amounting to Rp. 500, 000, 000, -as capital contribution. The journal entry for the above transaction is A) Cash IDR 500, 000, 000 (D) and Deposit IDR 500, 000, 000 (K). B) Debt IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). C) Trade receivables IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). D) Cash IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). Show Answer Correct Answer: D) Cash IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). 3. The following are included in the cost of inventory, except: A) Carriage costs. B) Storage Fees. C) Purchase Price. D) Import Customs. Show Answer Correct Answer: B) Storage Fees. 4. Roy Corporation owns machinery that cost $ 30, 000 when purchased on July 1, 2015. Depreciation has been recorded at a rate of $ 2, 600 per year, resulting in a balance in accumulated depreciation of $ 9, 100 at December 2018. The machinery is sold on Oct 1, 2019, for $ 20, 500. What is the journal entry to record the sale? A) Dr. Cash $ 20, 500Cr. Machinery $ 20, 500. B) Dr. Cash $ 20, 500Dr. Accumulated depreciation 11, 050Cr. Machinery $ 30, 000Cr. Gain on sale $ 1, 050. C) Dr. Cash $ 30, 000Cr. Machinery $ 30, 000. D) Dr. Cash $ 20, 500Dr. Accumulated depreciation $ 9, 500Cr. Machinery $ 30, 000. E) None of these. Show Answer Correct Answer: B) Dr. Cash $ 20, 500Dr. Accumulated depreciation 11, 050Cr. Machinery $ 30, 000Cr. Gain on sale $ 1, 050. 5. Compromising layers of dollar value from different years. Inventory is viewed as a quantity of value rather than a physical quantity of goods. A) LIFO Inventory Pools. B) Dollar-Value LIFO. Show Answer Correct Answer: B) Dollar-Value LIFO. 6. Accounting principal equation A) Assets = Liabilities + Stockholder Equity. B) Assets = Liabilities-Stockholder Equity. C) Assets + Liabilities = Stockholder Equity. D) Assets = Liabilities x Stockholder Equity. Show Answer Correct Answer: A) Assets = Liabilities + Stockholder Equity. 7. Who publishes Accounting Standards in Indonesia? A) Indonesian Accountants Association. B) Indonesia stock exchange. C) Indonesian Association of Public Accountants. D) American Institute of Certified Public Accountants. Show Answer Correct Answer: A) Indonesian Accountants Association. 8. Grouping inventory units into groups based on physical similarities of the individual units. Individual unit costs are converted to an average cost for the group A) LIFO Inventory Pools. B) Dollar-Value LIFO. Show Answer Correct Answer: A) LIFO Inventory Pools. 9. What types of partnerships have limited liability partners? A) Juristic General Partnership. B) General partnership. C) Limited partnership. D) All correct. Show Answer Correct Answer: C) Limited partnership. 10. Joe and James have agreed to record equal initial interests. Although Joe invested 240, 000 baht in cash, James invested 201, 600 baht in cash. The five partners use the goodwill method to record their initial capital. What is the amount of goodwill that must be recorded in the James capital increase account? A) 0 baht. B) 9, 600 baht. C) 38, 400 baht. D) 76, 800 baht. Show Answer Correct Answer: C) 38, 400 baht. 11. Discounts that sellers give to buyers as soon as they agree to buy and sell products. It is usually set as a percentage of the originally set price, called A) Trade discount. B) Partner discount. C) Cash discount. D) Credit discount. Show Answer Correct Answer: A) Trade discount. 12. Pink, Inc. issued 6, 000 shares of stock at a stated value of $ 10 per share. The total issue of stock sold for $ 12 per share. What is the journal entry to record this transaction? A) Dr. Cash $ 60, 000Cr. Common Stock $ 60, 000. B) Dr. Cash $ 72, 000Cr. Common Stock $ 60, 000Cr. Paid-in Capital in Excess of Stated Value-Common Stock $ 12, 000. C) Dr. Cash $ 12, 000Cr. Common Stock $ 12, 000. D) Dr. Cash $ 72, 000Cr. Common Stock $ 72, 000. Show Answer Correct Answer: B) Dr. Cash $ 72, 000Cr. Common Stock $ 60, 000Cr. Paid-in Capital in Excess of Stated Value-Common Stock $ 12, 000. 13. What does amortized mean? A) Infinite useful life. B) Finite useful life. Show Answer Correct Answer: B) Finite useful life. 14. Salon "Pesona Ayu" has the following data:Assets Rp. 50, 000, 000.00 ; Debt Rp. 12, 500, 000.00. Thus, the company's equity is..... A) Rp. 50.000.000, 00. B) Rp. 37.500.000, 00. C) Rp. 17.500.000, 00. D) P. 12.500.000, 00. Show Answer Correct Answer: B) Rp. 37.500.000, 00. 15. The basic quality in financial reporting is..... A) Predictive and relevant value. B) Timely and understandable. C) Comparable and verifiable. D) Relevant and honest presentation. Show Answer Correct Answer: D) Relevant and honest presentation. 16. Material error, ..... restate financials A) Prospectively. B) Retrospectively. Show Answer Correct Answer: B) Retrospectively. 17. Ltd company took over assets worth Rs. 10, 00, 000 and liabilities of Rs. 3, 00, 000 for purchase consideration worth Rs. 12, 00, 000 how much amount will be debited to goodwill account A) Rs. 10, 00, 000. B) Rs. 5, 00, 000. C) Rs. 3, 00, 000. D) Rs. 12, 00, 000. Show Answer Correct Answer: B) Rs. 5, 00, 000. 18. Changing Depreciation A) Prospectively. B) Retrospectively. Show Answer Correct Answer: A) Prospectively. 19. The process of associating numerical accounts with the elements A) Recognition. B) Measurement. C) Disclosure. D) None of above. Show Answer Correct Answer: B) Measurement. 20. Long term investments include..... A) Current assets. B) Non-current Assets. C) Non-current Liabilities. D) Non-current Equity. Show Answer Correct Answer: B) Non-current Assets. ← 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