This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it: A) Is unacceptable for income tax purposes. B) Gives results based upon estimates which may be subject to considerable uncertainty. C) Is likely to assign a small amount of revenue to a period during which much revenue was actually earned. D) None of these. Show Answer Correct Answer: B) Gives results based upon estimates which may be subject to considerable uncertainty. 2. It is the activity of infrastructure as a broad category of product and services. A) Selling the utilization of infrastructure. B) Buying and Selling Products. C) Designing products, aggregating components and assembling finished products. D) Growing and Extracting Raw Materials. Show Answer Correct Answer: B) Buying and Selling Products. 3. Which of the following refers to intangible assets? A) Patent. B) Trademark. C) Concession. D) All correct. Show Answer Correct Answer: D) All correct. 4. Performance Obligation:To provide goods and services (so is vulnerable to risks associated with holding inventory) A) Agent. B) Principal. Show Answer Correct Answer: B) Principal. 5. Assumes units first acquired are sold first A) Specific Identification method. B) Average Cost. C) FIFO (First In, First Out). D) LIFO (Last in, First Out). Show Answer Correct Answer: C) FIFO (First In, First Out). 6. Investments that are highly liquid, short-term, that can be quickly converted into cash in a determinable amount and have an insignificant risk of changes in value, are called: A) What. B) Setara kas. C) Short term investment. D) Long term investment. Show Answer Correct Answer: B) Setara kas. 7. Omni Company purchased a new vehicle on January 1, 2012. The cost of the vehicle was IDR 200, 000, 000, it had been used for five years, and the residual value was IDR 40, 000, 000. Omni has financial statements ending December 31. If Omni depreciated the truck using the double declining balance method, how much should be recorded as depreciation expense during 2015? A) Rp 0. B) Rp 3.200.000. C) Rp 17.280.000. D) Rp 80.000.000. Show Answer Correct Answer: C) Rp 17.280.000. 8. Inventory must be stated in ..... A) Whichever is lower of cost and fair value. B) Whichever is lower of cost and net realizable value. C) Whichever is lower between costs and net selling price. D) Nothing is right. Show Answer Correct Answer: B) Whichever is lower of cost and net realizable value. 9. Notes payable with a maturity of 120 days will be included in the SOFP section..... A) Non Current Assets. B) Current Assets. C) Non Current Liabilities. D) Current Liabilities. Show Answer Correct Answer: D) Current Liabilities. 10. The current value of future cash flows, calculated by applying the time value of money A) Historical Cost. B) Net realizable value. C) Current cost. D) Present value. E) Fair value. Show Answer Correct Answer: D) Present value. 11. At the time of repayment of the bonds, the bonds are extended with modifications to the terms and carrying value of the debt is higher than the fair value of the debt, then A) A loss should be recognized by the debtor. B) A new effective-interest rate must be computed. C) A gain should be recognized by the debtor. D) No interest expense should be recognized in the future. Show Answer Correct Answer: C) A gain should be recognized by the debtor. 12. When a company decides to switch from the double-declining balance method to the straight-line method, this change should be handled as a: A) Change in accounting principle. B) Change in accounting estimate. C) Prior period adjustment. D) Correction of an error. Show Answer Correct Answer: B) Change in accounting estimate. 13. Accounting is expected to be able to meet the challenges that arise in the business world, so accounting must be: A) Flexible. B) Dynamic. C) Realistic. D) Futuristic. Show Answer Correct Answer: B) Dynamic. 14. Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though, in theory, this may be a violation of the accounting concept of: A) Materiality. B) Consistency. C) Conservatism. D) Objectivity. Show Answer Correct Answer: B) Consistency. 15. On June 2, Selena Company sold to Gomez Company merchandise having a sale price $ 6, 000 with terms of 2/10, n/60, f.o.b. shipping point. On June 11, the company received a check for the balance do from Gomez Company. Assuming Selena records sales using the net method. What is the journal entries at Selena Company books to record the sale? A) Dr. Cash $ 6, 000Cr. Accounts receivable $ 6, 000. B) Dr. Accounts receivable $ 5, 880Cr. Sales $ 5, 880. C) Dr. Accounts receivable $ 6, 000Cr. Cash $ 6, 000. D) Dr. Sales $ 5, 880Cr. Accounts receivable $ 5, 880. E) Dr. Cash $ 6, 000Cr. Accounts receivable $ 5, 880Cr. Sales discounts $ 120. Show Answer Correct Answer: B) Dr. Accounts receivable $ 5, 880Cr. Sales $ 5, 880. 16. Includes Depreciation Expense and Bad Debt Expense A) Prepayments (Deferrals). B) Accruals. C) Estimates. D) None of above. Show Answer Correct Answer: C) Estimates. 17. Which of the following journals correctly records the issuance of bonus shares? A) Debit as the bank, credit modal saham. B) Debit share capital, credit share premium. C) Debit share premium, credit share capital. D) Debit investment, credit cash at bank. Show Answer Correct Answer: C) Debit share premium, credit share capital. 18. Retained Earnings= A) Net Income-Dividends. B) Assets-Liabilities. C) Common Stock-Stockholder Equity. D) Revenues-Expenses. Show Answer Correct Answer: A) Net Income-Dividends. 19. Debt means A) Current obligations of the business. B) It is the result of past events. C) It is expected that the business will lose economically useful resources. D) All correct. Show Answer Correct Answer: D) All correct. 20. Stockholders is also known as? A) Stakeholders. B) Shareholders. C) Managers. D) Owners. Show Answer Correct Answer: B) Shareholders. ← 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