This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Inventory error correction-when the error is found one year later-requires A) No correcting entry required and a disclosure note in the company's annual report is needed. B) Debit retained earningsCredit inventory. Show Answer Correct Answer: B) Debit retained earningsCredit inventory. 2. Kaylie Corporation traded in used machinery with a book value of $ 70, 000 (cost $ 120, 000 less accumulated depreciation $ 50, 000) and a fair value of $ 100, 000. It receives in exchange a machine with a fair value of $ 80, 000 plus cash of $ 20, 000. The portion of the gain in a company recognizes is: A) $ 6, 000. B) $ 14, 000. C) $ 20, 000. D) $ 10, 000. E) None of these. Show Answer Correct Answer: A) $ 6, 000. 3. Proof of the transaction of returning goods that have been purchased to the seller as a result of non-conformity of goods is called..... A) Sales invoice. B) Memo. C) Check. D) Credit note. E) Not happy. Show Answer Correct Answer: D) Credit note. 4. Which of the following liquidity ratios is a sign of ill-health? A) Current ratio is 1.33. B) Quick ratio is 1.01. C) Current ratio is 2.10. D) Quick Ratio is 0.90. Show Answer Correct Answer: D) Quick Ratio is 0.90. 5. Estimated costs for dismantling and removing refer to decommissioning costs capitalized as part of the cost of an item of PPE, and are recognized as contingent liability if the entity has a constructive or legal obligation for removal of asset or restoration of the site. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 6. Namwan and Namkhing form a partnership. Khingwan agrees to share profits equally. The current year's net profit is 400, 000 baht. How much share does each partner receive? A) Sweet water 200, 000 baht, ginger juice 200, 000 baht. B) Sweet water 194, 000 baht, ginger juice 206, 000 baht. C) Sweet water 206, 000 baht, ginger juice 206, 000 baht. D) Sweet water 206, 000 baht, ginger juice 194, 000 baht. Show Answer Correct Answer: A) Sweet water 200, 000 baht, ginger juice 200, 000 baht. 7. Subtract the sum of the known or estimated stand-alone selling prices of other goods and service is in the contract from the total transaction price of the contract A) Adjusted market assessment approach. B) Expected cost plus margin approach. C) Residual Approach. D) None of above. Show Answer Correct Answer: C) Residual Approach. 8. Which characteristic is not possessed by intangible assets? A) Physical existence. B) Identifiable. C) Result in future benefits. D) Expensed over current and/or future years. Show Answer Correct Answer: A) Physical existence. 9. On Jul 5, David Company sold to Beckham Company merchandise having a sale price of $ 3, 000 with terms of 2/10, n/60, f.o.b. shipping point. What is the journal entry on David Company books to record sales using the net method if Beckham did not remit payment until August 30? A) Dr. Cash $ 2, 940Dr. Sales discounts $ 60Cr. Accounts receivable $ 3, 000. B) Dr. Accounts receivable $ 3, 000Cr. Sales $ 3, 000. C) Dr. Cash $ 2, 940Cr. Accounts receivable $ 2, 940. D) Dr. Cash $ 3, 000Cr. Accounts receivable $ 2, 940Cr. Sales discounts forfeited $ 60. E) Dr. Cash $ 3, 000Cr. Accounts receivable $ 3, 000. Show Answer Correct Answer: D) Dr. Cash $ 3, 000Cr. Accounts receivable $ 2, 940Cr. Sales discounts forfeited $ 60. 10. Changing estimate calculation in Depreciation A) Prospectively. B) Retrospectively. Show Answer Correct Answer: A) Prospectively. 11. Worst report from auditor (goes against GAAP) A) Unqualified. B) Unqualified with an explanation or emphasis paragraph. C) Qualified. D) Adverse or disclaimer. E) Rejected. Show Answer Correct Answer: D) Adverse or disclaimer. 12. Which of the following is the formula for Net Realizable Value? A) Estimated Cost of Good Sold, less costs of completion, divided by target number of units. B) Estimated Selling Price, less costs of completion, divided by target number of units. C) Estimated Selling Price, less costs of completion, transportation, and/or disposal cost. D) Estimated Cost of Good Sold, less costs of completion, transportation, and/or disposal. Show Answer Correct Answer: C) Estimated Selling Price, less costs of completion, transportation, and/or disposal cost. 13. If a company has high PE ratio, it is most likely because ..... A) The company is expected to grow very fast. B) The company's stock is overpriced. C) The company has very few shareholders. D) The company is very profitable. Show Answer Correct Answer: A) The company is expected to grow very fast. 14. Which is a debt security? A) Siam Commercial Bank debentures. B) Bangkok Bank common shares. C) Thai Bank common shares. D) All correct. Show Answer Correct Answer: A) Siam Commercial Bank debentures. 15. An inventory record card shows the following detailsfor the month of June:June 1:50 units in stock at a cost of P40 per unit 7:100 units purchased at a cost of P45 per unit 14:80 units sold21:50 units purchased at a cost of P50 per unit28:60 units sold What is the value of inventory at June 30 using theFIFO method? A) Ba, 450. B) Ba, 700. C) Ba, 950. D) Sell, 000. Show Answer Correct Answer: C) Ba, 950. 16. Which of the following intangible assets should not be amortized? A) Copyrights. B) Customers lists. C) Perpetual franchises. D) All of these intangible assets should be amortized. Show Answer Correct Answer: C) Perpetual franchises. 17. Buying/paying Company A) Creditors. B) Investors. Show Answer Correct Answer: B) Investors. 18. Emphasize principles for recognizing revenues and expenses, with some assets and liabilities recognized as necessary to make the balance sheet reconcile with the income statement A) Revenue/Expense Approach. B) Asset/Liability Approach. Show Answer Correct Answer: A) Revenue/Expense Approach. 19. Current GAAP standard setting committee. Made up of professional CPAs around US A) GAAP. B) FASB. C) SEC. D) IASB. E) GASB. Show Answer Correct Answer: B) FASB. 20. When reconciling a bank statement and cash book, which two of the following will require a transaction journal in the cash book?(1) Deposits credited after the date(2) Direct debits only to bank accounts(3) Bank charges(4) Bank error A) 1 dandy. B) Invite. C) A, 3 Dan 4. D) 1, a, don't. Show Answer Correct Answer: B) Invite. ← 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