This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Current Liabilities are A) Current liabilities. B) Non-current liabilities. C) Long term debt. D) All correct. Show Answer Correct Answer: A) Current liabilities. 2. In January 2020, an entity purchased a mineral minefor P3, 400, 000 with removable ore estimated bygeological surveys at 2, 000, 000 tons. The propertyhas an estimated value of P200, 000 after the ore hasbeen extracted. The company incurred P1, 000, 000 ofdevelopment costs preparing the mine for production.During 2020, 500, 000 tons were removed and400, 000 tons were sold. What is the amount of depletion that the entity should expense for 2020? A) P640, 000. B) Phth00, 000. C) P 840, 000. D) P1, 050, 000. Show Answer Correct Answer: C) P 840, 000. 3. Financial statements present the financial position on a certain date and fulfill the basic accounting assumptions, namely: A) Economic entity. B) Going concern. C) Monetary unit. D) Periodicity. Show Answer Correct Answer: D) Periodicity. 4. Publicly trades companies must use what in accordance to GAAP? A) Cash Basis. B) Accrual Basis. Show Answer Correct Answer: B) Accrual Basis. 5. The entity classifies a lease that meets the criteria as a finance lease. The lessee will depreciate the asset over the lease term. What qualitative characteristics underlie the accounting treatment? An entity classifies a lease that meets the criteria as a finance lease. The lessee will depreciate the asset throughout the lease term. What qualitative characteristics underlie this accounting treatment? A) Substance over form. B) Going concern. C) Reliability. D) Relevance. Show Answer Correct Answer: A) Substance over form. 6. Debit journal entries for an account are for: A) Increase liabilities. B) Increase assets. C) Increase equity. D) Answers A and C are correct. Show Answer Correct Answer: B) Increase assets. 7. Land held for sale in the SOFP falls into the category..... A) Current Assets. B) Current Liabilities. C) Non Current Assets. D) Equity. Show Answer Correct Answer: C) Non Current Assets. 8. If there is a cash purchase, it will be recorded in the journal..... A) Cash disbursement journal. B) Cash receipts journal. C) Purchase journal. D) Purchase returns journal. Show Answer Correct Answer: A) Cash disbursement journal. 9. Price if the product or services were sold in the market A) Adjusted market assessment approach. B) Expected cost plus margin approach. C) Residual Approach. D) None of above. Show Answer Correct Answer: A) Adjusted market assessment approach. 10. Cash is needed to meet payments arising from company activities. This motif is called..... A) Transaction motive. B) Precautionary motive. C) Motif investasi. D) Speculative motive. E) Compensation motive. Show Answer Correct Answer: A) Transaction motive. 11. Retail inventory method is used by A) High volume retailers selling many different items at low unit prices. B) Low volume retailers selling many different items at low unit prices. C) Low volume retailers selling many different items at high unit prices. D) High volume retailers selling many different items at high unit prices. Show Answer Correct Answer: A) High volume retailers selling many different items at low unit prices. 12. Expected residual value of an intangible asset usually is zero A) Useful Life. B) Residual Value. Show Answer Correct Answer: B) Residual Value. 13. The deposit method of revenue recognition is used when: A) The product can be marketed at quoted prices and units are interchangeable. B) Cash is received before the sales transaction is complete. C) The contract is short-term or the percentage-of-completion method can't be used. D) There are no significant costs of distribution. Show Answer Correct Answer: B) Cash is received before the sales transaction is complete. 14. Shareholders are limited to the dividends provided under stock preference and are not eligible to share in excess dividends A) Cumulative PS. B) Noncumulative PS. C) Participating PS. D) Nonparticipating PS. Show Answer Correct Answer: D) Nonparticipating PS. 15. Set of rules and guidance for accounts to properly/correctly record transactions in the accounting system A) GAAP. B) FASB. C) SEC. D) IASB. E) GASB. Show Answer Correct Answer: A) GAAP. 16. What is the collection of depreciable assets that share similar service lives and other attributes? A) Group Depreciation Method. B) Composite Depreciation Method. Show Answer Correct Answer: A) Group Depreciation Method. 17. Information is said to be material if..... A) The value is large, more than 5% of assets. B) Influence decisions that have been made based on financial information reports. C) Making the company lose money. D) Reducing Profit. Show Answer Correct Answer: B) Influence decisions that have been made based on financial information reports. 18. The company's ledger at 30 April 20X8 shows a balance in the bank of Rp. 2, 490, 000. A comparison with the bank statement on the same date shows the following differences:The ledger balance at 30 April 20X8 is: A) Rp1.930.000. B) Rp3.140.000. C) Rs 2, 580, 000. D) Rs 2, 300, 000. Show Answer Correct Answer: D) Rs 2, 300, 000. 19. Going Concern is..... A) The company carries out its activities separately from those of its owners and other business units. B) Transactions are recorded in the period in which they occur. C) Companies can divide their economic activities into several periods. D) Companies can survive long enough to fulfill their goals and commitments. Show Answer Correct Answer: D) Companies can survive long enough to fulfill their goals and commitments. 20. Money we owe to A) Creditors. B) Investors. Show Answer Correct Answer: A) Creditors. ← 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