This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following will likely be included in an auditor's report? A) An assessment of the company's internal control procedures. B) A detailed explanation of data contained in the financial statements. C) An opinion that the financials present fairly the financial position, results of operations, and cash flow in accordance to GAAP. D) All of the above. Show Answer Correct Answer: C) An opinion that the financials present fairly the financial position, results of operations, and cash flow in accordance to GAAP. 2. Which of the following is not belong to broad categories of products and services? A) Services. B) Traders. C) Insurance. D) Cash. Show Answer Correct Answer: D) Cash. 3. 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 used the bonus method to back up their initial investment. 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: A) 0 baht. 4. Prepayment of insurance premiums for a period by the insured can be recorded as: A) Assets. B) Income. C) Debt. D) Modal. Show Answer Correct Answer: A) Assets. 5. ABC Company issued $ 20, 000, 000 of 10-year, 9% bonds on March 1 2015 at an exchange rate of 97 plus accrued interest. The bonds are dated January 1 2015, interest is paid every June 30 and December 31. How much cash is received when the bond is issued? A) $ 19, 400, 000. B) $ 20, 450, 000. C) $ 19, 700, 000. D) $ 19, 100, 000. Show Answer Correct Answer: C) $ 19, 700, 000. 6. On the day of stock split up (Stock-split up), how will the account be recorded? A) Memoirs. B) Dr. Share capital (new) xx Cr. Share capital (old) xx. C) No need to record an account but show it in the notes to the financial statements. D) No need to record an account But show it in parentheses following the share capital item in the statement of financial position. E) No action required. Show Answer Correct Answer: A) Memoirs. 7. Jai Jai Company Limited offers shares in a total of 2, 000 units at a price of 525 baht per unit. 1 unit of stock consists of 3 common shares with a value of 100 baht each and 4 preferred shares with a value of 50 baht each. If you do not know both the market price of the common shares and the market price. of preferred shares Which of the following is correct? A) The premium on common shares is equal to 20, 000 baht. B) The excess value of preferred shares is equal to 30, 000 baht. C) The premium on common shares is equal to 30, 000 baht. D) The excess value of preferred shares is equal to 10, 000 baht. E) The premium on common shares is equal to 10, 000 baht. Show Answer Correct Answer: C) The premium on common shares is equal to 30, 000 baht. 8. Journal Entries-Transactions recorded A) 24/7. B) Monthly. C) Year-end. D) None of above. Show Answer Correct Answer: A) 24/7. 9. Prepaid rental costs are recorded in the financial statements, namely: A) Income statement. B) Financial position report. C) Cash flow statement. D) Notes to financial reports. Show Answer Correct Answer: B) Financial position report. 10. Which statement is correct regarding the legal allocation of retained earnings? A) One-twentieth of the income the business earns is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. B) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. C) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-twentieth of the company's capital. D) One-tenth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-twentieth of the company's capital. E) One-tenth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. Show Answer Correct Answer: B) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. 11. What represents the unique value of a company as a whole over and above it's identifiable and intangible? A) Manufactured good. B) Goodwill. C) Intangible asset. D) Lump-sum purchase. Show Answer Correct Answer: B) Goodwill. 12. On 1 Jan. 2020, Jing Jai Company Limited registered 100, 000 common shares with a value of 100 baht per share. 1 Feb. 20 issued 20, 000 common shares at a price based on value. 1 Mar. 20 issued 50, 000 common shares. At a price of 105 baht, which statement is correct regarding accounting recording? On the common stock registration date (1 January 2020) A) Memorandum:Register 100, 000 common shares with a value of 100 baht per share. B) Dr. Unsold common share capital 10, 000, 000 Cr. Common share capital 10, 000, 000. C) Dr. Cash 10, 000, 000 Cr. Common stock capital 10, 000, 000. D) Dr. Cash 10, 000, 000 Cr. Unsold common stock capital 10, 000, 000. E) No recordings are required today. Show Answer Correct Answer: A) Memorandum:Register 100, 000 common shares with a value of 100 baht per share. 13. Land assets Building and equipment How should it appear in the statement of financial position? A) Price-Accumulated Depreciation. B) Book value-Accumulated depreciation-Allowance for impairment (if any). C) Fair price-accumulated depreciation. D) Cost price-Accumulated depreciation-Allowance for impairment (if any). Show Answer Correct Answer: D) Cost price-Accumulated depreciation-Allowance for impairment (if any). 14. Monetary Unit A) Business is separate from owners. Economic events identified specifically with an . B) Assumption anticipates that a business entity will continue to operate indefinitely. C) Assumption allows the life of a company to be divided into artificial time periods to provide timely information. D) Transaction and reports stated in dollars. Show Answer Correct Answer: D) Transaction and reports stated in dollars. 15. What is the classification according to the period of debt repayment? A) Debts that are definite. B) Current liabilities. C) Estimate of debt. D) Contingent liabilities. Show Answer Correct Answer: B) Current liabilities. 16. Which of the following refers to temporary investment? A) Assets that an entity holds for future benefit in the form of a commercial relationship. B) Remaining assets that the business invests in addition to the remaining cash used. which can be sold for profit within 1 year. C) Marketable assets held by an entity by investing in financial assets. To increase the stability of the business. D) Financial assets in which the business invests By using the remaining cash to invest. The objective is to profit from short-term changes in the price of securities. Show Answer Correct Answer: D) Financial assets in which the business invests By using the remaining cash to invest. The objective is to profit from short-term changes in the price of securities. 17. If residual value at the end of the lease term is lower than the amount guaranteed by the lessee, it is recognized as loss in the books of the lessor. A) TRUE. B) FALSE . Show Answer Correct Answer: B) FALSE . 18. On January 1, 20X4 PT JAYA purchased a new machine for Rp. 96, 720. Transport costs amounted to Rp. 3, 660 and internal administration costs amounted to Rp. 9, 450. At that time, the company planned to replace the machine within five years, when the machine no longer had residual value, and depreciate the machine using the straight-line method. determined on 1 January 20X6 that the machine had only one year remaining useful life. It is estimated that there will be no change in the residual value at the end of the machine's useful life. What is the depreciation expense on the machine in the company's profit or loss statement for the year ended 31 December 20X6? A) Rp33.460. B) Rp60.228. C) Rabkh.898. D) Rp58.032. Show Answer Correct Answer: B) Rp60.228. 19. In calculating EPS for a simple capital structure, it involves 2 (two) items other than net profit, namely..... A) Preferred stock dividends and number of shares outstanding. B) Preferred stock dividends and bond interest rates. C) Bond interest rates and number of shares outstanding. D) Bond interest rates and stock nominal value. Show Answer Correct Answer: A) Preferred stock dividends and number of shares outstanding. 20. What is meant by Short Term Debt is..... A) Liabilities whose repayment uses resources classified as current assets or by the creation of new current liabilities. B) Company debt that will mature in more than one accounting period. C) Debt that requires a formal process in its formation, namely approval from the board of directors and/or shareholders. D) The amount a company must pay to its shareholders after obtaining approval from the board of directors. Show Answer Correct Answer: A) Liabilities whose repayment uses resources classified as current assets or by the creation of new current liabilities. ← 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