This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Jai Jai Company Limited has 20, 000 issued and paid-up common shares with a value of 50 baht per share, 10, 000 12% preferred shares with a value of 100 baht per share. The last cash dividend was paid in 2017. Later in 2020, it announced a total dividend payment of 350, 000. Baht in the case of preferred shares It is a non-accumulative type. How much dividends will common shares receive? A) 350, 000 baht. B) 250, 000 baht. C) 230, 000 baht. D) 120, 000 baht. E) 180, 000 baht. Show Answer Correct Answer: C) 230, 000 baht. 2. Sony Inc. borrowed $ 280, 000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? A) $ 0. B) $ 33, 600. C) $ 8, 400. D) $ 25, 200. E) $ 22, 500. Show Answer Correct Answer: D) $ 25, 200. 3. What is the bank balance statement made for? A) Verify the accuracy of current bank deposits. B) Verify the authenticity of bank deposits in the form of fixed deposits. C) Verify the authenticity of savings bank deposits. D) All correct. Show Answer Correct Answer: D) All correct. 4. What is a natural resource? A) Oil, gas, timber tracts, mineral deposits. B) Initial cost. Show Answer Correct Answer: A) Oil, gas, timber tracts, mineral deposits. 5. Do not involve an exchange transaction with another entity A) External Events. B) Internal Events. Show Answer Correct Answer: B) Internal Events. 6. Neutrality in the qualitative characteristics of financial statements means..... A) Companies must choose information to present to one party over another, such as tax reports. B) Companies may choose information to present to one party rather than another. C) Companies do not prefer information to be presented to one party over another. D) All answers are wrong. Show Answer Correct Answer: C) Companies do not prefer information to be presented to one party over another. 7. Trump Inc. sold 14, 000 annual subscriptions on July 1, 2018, for $ 20 each. What is the journal entry at July 1, 2018? A) Dr. Cash $ 14, 000Cr. Unearned revenue $ 14, 000. B) Dr. Unearned revenue $ 140, 000Cr. Subscription revenue $ 140, 000. C) Dr. Cash $ 280, 000Cr. Unearned revenue $ 280, 000. D) Dr. Unearned revenue $ 14, 000Cr. Subscription revenue $ 14, 000. E) Dr. Unearned revenue $ 280, 000Cr. Cash $ 280, 000. Show Answer Correct Answer: C) Dr. Cash $ 280, 000Cr. Unearned revenue $ 280, 000. 8. Which of the following items affects diluted earnings per share? A) Redeemable preferred shares. B) Convertible preferred shares. C) Non-cumulative preferred shares. D) Participatory preferred shares. E) Cumulative preferred shares. Show Answer Correct Answer: B) Convertible preferred shares. 9. Involve the acquisition and sale of long term assets and non operating investment assets A) Operating Activity. B) Investing Activity. C) Financial Activity. D) None of above. Show Answer Correct Answer: B) Investing Activity. 10. The amount that can be received when selling an asset or paying a liability between parties who have sufficient knowledge of an arm's length transaction is called..... A) Historical costs. B) Fair value. C) Past Prices. D) All wrong. Show Answer Correct Answer: B) Fair value. 11. Estimate the costs of satisfying a performance obligation and then add an appropriate profit margin A) Adjusted market assessment approach. B) Expected cost plus margin approach. C) Residual Approach. D) None of above. Show Answer Correct Answer: B) Expected cost plus margin approach. 12. On the date of issuance of the grant of rights to the employees/executives of the company The accountant records the price of the option as the difference between the market price of the stock and the price at which the option was exercised. and debit in which of the following accounts? A) Retained earnings account (If rights are granted in return for past year's work). B) Deferred performance compensation account (If rights are granted in return for past year's work). C) Work performance compensation account (If rights are granted in return for past year's work). D) Surplus account from grant of rights (If rights are granted in return for past year's work). E) Deferred performance compensation account (If rights are granted in return for the current year's performance). Show Answer Correct Answer: A) Retained earnings account (If rights are granted in return for past year's work). 13. Provided that all or part of the PS dividend not paid in any year accumulates and must be paid in the future BEFORE any dividends can be paid to common shareholders A) Cumulative PS. B) Noncumulative PS. C) Participating PS. D) Nonparticipating PS. Show Answer Correct Answer: A) Cumulative PS. 14. It is an artificial being created by operation of law, having the rights of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. A) Sole Proprietorship. B) Partnership. C) Corporation. D) Cooperative. Show Answer Correct Answer: C) Corporation. 15. Hilary Inc. sold 15, 000 annual subscriptions on July 1, 2018, for $ 24 each. What is the annual adjusting entry at Dec 31, 2018? A) Dr. Cash $ 360, 000Cr. Unearned revenue $ 360, 000. B) Dr. Unearned revenue $ 180, 000Cr. Subscription revenue $ 180, 000. C) Dr. Cash $ 15, 000Cr. Unearned revenue $ 15, 000. D) Dr. Unearned revenue $ 360, 000Cr. Subscription revenue $ 360, 000. E) Dr. Unearned revenue $ 180, 000Cr. Cash $ 180, 000. Show Answer Correct Answer: B) Dr. Unearned revenue $ 180, 000Cr. Subscription revenue $ 180, 000. 16. What type of partnership has partners with unlimited liability? A) Juristic General Partnership. B) General partnership. C) Limited partnership. D) All correct. Show Answer Correct Answer: D) All correct. 17. Provides protection beyond the manufacture's quality-assurance A) Extended Warranty. B) Option. Show Answer Correct Answer: A) Extended Warranty. 18. In practice (public or private), a good accountant will make adjusting entries and produce internal financial statements: A) Annually. B) Quarterly. C) Monthly. D) Weekly. Show Answer Correct Answer: C) Monthly. 19. Which statement is correct regarding the call for payment of shares according to Thai law? A) The first installment must be collected at least 25% of the share value. along with all excess value. B) The first installment must be collected at least 25% of the share value and premium. C) The first installment must be collected at least 50% of the share value. along with all excess value. D) Payment must be made in full at one time. E) The law does not specify Therefore, payment can be made in any amount. It depends on the policy of each company. Show Answer Correct Answer: A) The first installment must be collected at least 25% of the share value. along with all excess value. 20. Granted to the customer to receive additional goods or services at no cost or at a discount as a performance obligation A) Extended Warranty. B) Option. Show Answer Correct Answer: B) Option. ← 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