This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The net carrying amount of non-current assets was CU200, 000 at 1 August 20X0. During the financial year ended 31 July 20X1, a non-current asset was sold for Rp. 25, 000, of which the company suffered a loss of Rp. 5, 000. Depreciation expense for the year was CU20, 000. What was the carrying amount of non-current assets at 31 July 20X1? A) Rp150.000. B) Rp155.000. C) Rp160.000. D) Rp180.000. Show Answer Correct Answer: A) Rp150.000. 2. On March 1 (Year 1), ABC Company issued a P90, 000, 8% interest-bearing note payable from a financial institution. Interest and principal are payable after 1 year. How much is the interest expense for Year 1? A) 7, 200. B) 5, 400. C) 6, 000. D) 7, 000. Show Answer Correct Answer: C) 6, 000. 3. International standards board for countries around the US A) GAAP. B) FASB. C) SEC. D) IASB. E) GASB. Show Answer Correct Answer: D) IASB. 4. If cost is lower than NRV A) Reduce inventory from its already recorded purchase cost to the lower NRV. B) No adjusting entry needed. Show Answer Correct Answer: B) No adjusting entry needed. 5. PS shareholders participate wit common stock shareholders in dividends in excess of a specific amount A) Cumulative PS. B) Noncumulative PS. C) Participating PS. D) Nonparticipating PS. Show Answer Correct Answer: C) Participating PS. 6. Land acquired and held for speculation is classified as an: A) Inventory. B) Investment. C) Liabilities. D) None of these. Show Answer Correct Answer: B) Investment. 7. On January 1, 2015, Pulgoso Company sold bonds $ 10, 000, 000 at 10% nominal interest, receiving cash $ 8, 852, 960 (12% market interest). Interest is payable semiannually on January 1 and July 1. The first interest payment journal on July 1 2015 includes A) Debit to Interest Expense for $ 531, 178. B) Credit to Bonds Payable for $ 1, 062, 355. C) Debit to Cash for $ 600, 000. D) Credit to Interest Expense for $ 442, 648. Show Answer Correct Answer: A) Debit to Interest Expense for $ 531, 178. 8. The bank account in the ledger shows a balance of IDR 1, 138 on December 31. When the company compared this balance with the bank statement on the same date, it discovered the following discrepancy:What was the correct balance on the bank account in the general ledger on December 31? A) Rp1.060. B) Rp1.078. C) Rp1.276. D) Rp1.527. Show Answer Correct Answer: B) Rp1.078. 9. In an accounting period, if an expense item has arisen and been utilized, but has not been paid or recorded in the accounting system, then the adjusting journal entry that needs to be made at the end of the period is..... A) Liability accounts and asset accounts. B) Asset accounts and expense accounts. C) Contra asset accounts and expense accounts. D) Liability accounts and expense accounts. Show Answer Correct Answer: D) Liability accounts and expense accounts. 10. The cornerstone of good internal control for cash Which measures should be taken? A) Income and expenses are recorded. and can be verified together. B) Take the cash received Deposit in the bank every day and pay expenses by check. C) A bank balance sheet is prepared and a petty cash limit is set for small expenses. D) All of the above are correct. Show Answer Correct Answer: D) All of the above are correct. 11. When is there a substantial modification of terms of an existing financial liability? A) More than 10% of the present value of the new liability. B) At least 10% of the present value of the new liability. C) More than 10% of the carrying amount of the old liability. D) At least 10% of the carrying amount of the old liability. Show Answer Correct Answer: B) At least 10% of the present value of the new liability. 12. The entity recognizes the purchase of a calculator worth 500 thousand as an administration fee even though the calculator has a useful life of more than one year. What considerations underlie the accounting treatment? The entity recognizes the purchase of a calculator for 500 thousand as an administrative cost because the calculator has benefits for more than one year. What considerations underlie this accounting treatment? A) Materiality. B) Going concern. C) Reliability. D) Relevance. Show Answer Correct Answer: A) Materiality. 13. The cost of an intangible asset includes all of the following except. A) Purchase price. B) Legal fees. C) Other incidental expenses. D) All of these are included. Show Answer Correct Answer: D) All of these are included. 14. Ketika suatu note payable diterbitkan dengan memperoleh property, goods, or services, the present value of the note diukur dengan A) The fair value of the property, goods, or services. B) The fair value of the note. C) Using an imputed interest rate to discount all future payments on the note. D) All of these answer choices are correct. Show Answer Correct Answer: D) All of these answer choices are correct. 15. Steps in changing inventory method though the LIFO Method A) Revise Comparative statements. B) Adjust affected accounts. C) Disclose additional information. D) The LIFO Method is used from the point the change is adopted and that period's beginning balance is considered as the base year inventory. Show Answer Correct Answer: D) The LIFO Method is used from the point the change is adopted and that period's beginning balance is considered as the base year inventory. 16. Seller's location. Buyer has rights to inventory as soon as items are shipped (put) in truck A) F.O.B. Shipping point. B) F.O.B. Destination point. Show Answer Correct Answer: A) F.O.B. Shipping point. 17. The following is an account with a normal debit balance A) Assets and Liabilities. B) Liability and equity. C) Assets and Equity. D) Assets and Liabilities. Show Answer Correct Answer: A) Assets and Liabilities. 18. Adjusting journal to record accrued wages: A) Debit salary expenses and credit cash. B) Salary debt is debited and salary burden is credited. C) Salary debt is debited and cash is credited. D) Salary expenses are debited and salary arrears are credited. Show Answer Correct Answer: D) Salary expenses are debited and salary arrears are credited. 19. The Company's Leverage is 2.5. This is a healthy company A) True. B) False. Show Answer Correct Answer: B) False. 20. An example of a correction of an error in previously issued financial statements is a change: A) From the FIFO method of inventory valuation to the LIFO method. B) In the service life of plant assets, based on changes in the economic environment. C) From the cash basis of accounting to the accrual basis of accounting. D) In the tax assessment related to a prior period. Show Answer Correct Answer: C) From the cash basis of accounting to the accrual basis of accounting. ← 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