This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Company bills to customers as a result of the sale of goods or services on credit, generally with a maturity of less than one year, are recorded in the account..... A) Account receivable. B) Notes receivable. C) Account payable. D) Purchases payment. E) Sales. Show Answer Correct Answer: A) Account receivable. 2. Which of the following statements about stocks is FALSE? A) Every companies must have preferred shareholders. B) Every companies must have shareholders. C) Public companies have many shareholders. D) Not all public companies are listed in the stock exchange. Show Answer Correct Answer: A) Every companies must have preferred shareholders. 3. Suppose a company has net income of THB 1, 500 million with 500 million shares outstanding. If its PE ratio is 16x, its price is: A) 48.00. B) 24.00. C) 16.00. D) 3.00. Show Answer Correct Answer: A) 48.00. 4. Replenishment of petty cash funds which is not determined the same for each period is called the...... method. A) Fluctuation fund system'. B) Petty cash fund. C) Petty cash record. D) Imprest fund system'. E) Petty cash voucher. Show Answer Correct Answer: A) Fluctuation fund system'. 5. Conceptually, a short term note payable with no stated rate of interest should be A) Recorded at maturity value. B) Recorded at the face amount. C) Discounted to its present value. D) Recorded separately from other short-term notes payable. Show Answer Correct Answer: B) Recorded at the face amount. 6. It is a business owned by its stockholders. A) Sole Proprietorship. B) Partnership. C) Corporation. D) Cooperative. Show Answer Correct Answer: C) Corporation. 7. What does an outstanding check mean? A) Checks made by the business and recorded in the account. But the recipient has not yet cashed the money at the bank. B) Checks that the recipient cannot withdraw money from the bank. C) Check the bank returns to the business. D) Checks that the business has not yet given to outsiders. Show Answer Correct Answer: A) Checks made by the business and recorded in the account. But the recipient has not yet cashed the money at the bank. 8. The cost of an item of fixed assets is only recognized if the cost of the item can be reliably measured and if: A) It is not directly attributable to the asset. B) It has been paid for in cash. C) It is probable that future economic benefits will flow to the entity. D) The item has been received by the acquirer. Show Answer Correct Answer: C) It is probable that future economic benefits will flow to the entity. 9. What is maintaining given level of benefits? A) Improvements. B) Expensing. C) Purchasing. D) Saving. Show Answer Correct Answer: B) Expensing. 10. The ability of a company to convert its assets to cash A) Liquidity. B) Long-term solvency. Show Answer Correct Answer: A) Liquidity. 11. Jai Jai Company Limited has transactions regarding common stocks during 2020 as follows:1 Jan. Number of shares remaining at the beginning of the period:100, 000 shares. 1 Apr. Issued and sold additional 20, 000 shares. 1 Jul. Purchased 39, 000 capital shares back. 1 Nov. September issued an additional 60, 000 shares. What is the weighted average number of common shares? A) 105, 000 shares. B) 105, 500 shares. C) 150, 000 shares. D) 155, 000 shares. E) 155, 500 shares. Show Answer Correct Answer: B) 105, 500 shares. 12. X ltd. Forfeited 1, 000 shares of Rs. 10 each for the non-payment of final call of Rs. 2. The account will be debited for called up price of a share at the time of forfeiture of shares: A) Share Forfeiture A/c. B) Share Capital A/c. C) Share Final Call A/c. D) None of these. Show Answer Correct Answer: B) Share Capital A/c. 13. Represents changes in the RE component of shareholder' equity caused by revenue, expense, gain, loss, and dividend transactions. Balances are closed or zeroes out-closing process A) Permanent Accounts. B) Temporary Accounts. Show Answer Correct Answer: B) Temporary Accounts. 14. Sincere 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 the market price of the common shares is equal to 105 baht and not Know the market price of preferred stocks. Surplus of preferred shares equal to how much A) 50, 000 baht. B) 30, 000 baht. C) 20, 000 baht. D) 10, 000 baht. E) There is no premium on preferred shares. Show Answer Correct Answer: C) 20, 000 baht. 15. Tyren Advertising Agency performed web design and brochure services for 2 clients on August 15th. Tyren invoiced Carter Company $ 2, 700 and was paid in cash. Tyren also invoiced Pro-Seal Lift Systems $ 3, 200, giving Pro-Seal 30 days to pay in full. If Tyren Advertising Agency uses Accrual Accounting, which of the following is true? A) Service Revenue will be credited $ 5, 900 on August 15th. B) Service Revenue will be debited $ 2, 700 on August 15th. C) Service Revenue will be credited $ 3, 200 on August 15th. D) Service Revenue will be debited $ 5, 900 on August 15th. Show Answer Correct Answer: A) Service Revenue will be credited $ 5, 900 on August 15th. 16. Which of the following refers to non-current assets? A) Insurance premiums paid in advance. B) Debtors and notes receivable. C) Land, buildings and equipment. D) Cash and bank deposits. Show Answer Correct Answer: C) Land, buildings and equipment. 17. Physical flow of inventory like grocery stores. Getting the oldest inventory out first A) FIFO. B) LIFO. Show Answer Correct Answer: A) FIFO. 18. The following is the company's trial balance at the end of its financial year at 31 December 20X7:Calculate the cost of goods sold for the period A) IDR 343 million. B) IDR 304 million. C) IDR 297 million. D) IDR 294 million. Show Answer Correct Answer: C) IDR 297 million. 19. Convey additional insights A) Parenthetical comments (modifying comments). B) Disclosure notes. C) Supplemental schedules and tables. D) None of above. Show Answer Correct Answer: B) Disclosure notes. 20. Going Concern 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: B) Assumption anticipates that a business entity will continue to operate indefinitely. ← 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