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Intermediate Accounting Quiz 28 (20 MCQs)

Quiz Instructions

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1. During 2022, Pharsa Company experienced severe business downfall and is likely to default on a 10 million, 8% 4 year note dated January 1, 2021 payable to Xavier Bank.On December 31, 2022, the bank agreed to settle the note and unpaid interest for P 8, 100, 000 cash payable on January 2023.How much is the unpaid interest as of December 31, 2022?
2. Good/service can be used alone or with other goods that can be obtained elsewhere
3. On 30 June 20X1 PT CARA has decided to write off two receivables amounting to Rp. 1, 300, 000 and Rp. 2, 150, 000 respectively and to make a special provision of Rp. 6, 631, 000. The allowance balance on 1 July 20X0 was IDR 8, 540, 000. What was the bad debts expense for the period up to 30 June 20X1?
4. Memphis Corp. is a large soft drink bottler thatrequires new bottling equipment. After negotiatingwith several suppliers, Memphis decided to accept aspecial offer from Gasol Corporation. Gasol willdeliver the equipment with a list price of P100, 000 toMemphis on July 1, 2020 with the following paymentterms:* A deposit of P20, 000 is due on June 1, 2020.* Cash on delivery of P20, 000 is due on July 1, 2020.* Three additional payments are to be madeannually from July 1, 2021 to July 1, 2023 ofP20, 000.* Gasol will waive its normal interest charge of 6%per year to facilitate the sale.The equipment is expected to last 5 years, with aresidual value of P20, 000. Memphis has a December31 year end. What should be the depreciation expensefor the year ended 31 December 2020?
5. Information presented before it loses its ability to influence decisions is called.....
6. What is the exclusive right of protection given to a creator of a published good?
7. If, at the end of a period, a company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause:
8. When amortizing a premium or discount bond uses effective interest, the periodic amortization will
9. What are salaries, wages, and other labor costs of R&D personnel, materials consumed, equipment, facilities, and intangibles?
10. Statement 1:All directly atributable cost related to the issuance of the financial liability shall be added to the fair value.Statement 2:Financial liability as expressed in PFRS 9 par. 5.1.1 provides that it shall be measured at amortized cost at subquent dates.
11. The existence of a residual value guarantee indicates that the lease does NOT have a bargain purchase option nor a provision for transfer of title.
12. A company issued 6, 000 shares of Rs. 10 each money to be called up:-On application Rs. 3 on allotment Rs. 3 on first call Rs. 2 and remaining on second call. On allotment one shareholders having 100 shares paid full amountThe amount collected on allotment .....
13. On July 1, 2017, Rio Corporation acquires 2, 000 shares (10% ownership) of Beal Corporation common stock. Sanchez pays $ 40 per share. The entry for the purchase is:
14. Grant, Inc. had 50, 000 shares of treasury stock (P10 par value) at December 31, 2022, which it acquired at P12 per share. On June 4, 2023, Grant issued 25, 000 treasury shares to employees who exercised options under Grant's employee stock option plan. The market value per share was P13 at December 31, 2022, P15 at June 4, 2023, and P18 at December 31, 2023. The stock options had been granted for P13 per share. The cost method is used. What is the balance of the treasury stock on Grant's balance sheet at December 31, 2023?
15. Repayment of Accounts Payable will:
16. On July 1, Patrick issues a $ 202, 000, four-month, zero-interest-bearing note to US National Bank. The present value of the note is $ 150, 000. What is the journal entry to record this transaction?
17. Accounting for goods on transit for inventory owner ship depends on
18. A company might decide to construct an asset for its own use rather than buy on existing one. What is this?
19. What is the exclusive right to manufacture a product or to use a process?
20. Requires that companies also disclose total liabilities of its reportable segments along with the rest of the items required.
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