This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Company X currently has book value per share of THB 20 and cost of equity of 12%. If its ROE is 15% and dividend payout ratio is 80%, its share value is closest to: A) 26.66. B) 33.33. C) 20.00. D) 25.00. Show Answer Correct Answer: A) 26.66. 2. All the following are early warning indicators of a problem loan, except A) Higher sales and higher Margins. B) Higher sales and Increased aging of account receivables. C) Higher sales and lower margins. D) Higher Sales and higher Sales returns. Show Answer Correct Answer: A) Higher sales and higher Margins. 3. The profession responsible for preparing accounting standards in Indonesia is A) DSAK. B) IASB. C) IAI. D) Accountant. Show Answer Correct Answer: D) Accountant. 4. Depending on which estimation approach better predicts the amount that the seller will recieve A) Expected Value. B) Most Likely Amount. Show Answer Correct Answer: B) Most Likely Amount. 5. Reported as a contra account to adjust the balance from the internal method to the Lifo method for external reporting A) LIFO Reserves. B) Lifo liquidation. Show Answer Correct Answer: A) LIFO Reserves. 6. Gross Profit / Net sales or (Net Sale-COGS)/ Net SalesHigher the ratio, higher the markup achieved A) Gross Profit Ratio. B) Inventory turnover ratio. Show Answer Correct Answer: A) Gross Profit Ratio. 7. It is a type of Partners wherein it is only liable to the extent of his contribution to business. A) General Partner. B) Limited Partner. C) Capitalist Partner. D) Industrial Partner. Show Answer Correct Answer: B) Limited Partner. 8. Which of the following is not a characteristic of the corporate form of organization? A) Separate legal existence. B) Unlimited liability for shareholders. C) Easy transferability of ownership interests. D) Ability to obtain large amounts of capital easily. Show Answer Correct Answer: B) Unlimited liability for shareholders. 9. Calculated as the sum of each possible amount multiplies by its probability A) Expected Value. B) Most Likely Amount. Show Answer Correct Answer: A) Expected Value. 10. -lack physical substance-patents, copyrights, trademarks, franchises, goodwill A) Natural resources. B) Initial cost. C) Intangible assets. D) None of above. Show Answer Correct Answer: C) Intangible assets. 11. Tilaar Corporation made credit sales of $ 20, 000 which are subject to 5% sales tax. The corporation also made cash sales which totaled $ 30, 770 including the 5% sales tax. What is the journal entry to record Tilaar's credit sales? A) Dr. Cash $ 30, 770Cr. Sales $ 29, 500Cr. Sales tax payable $ 1, 270. B) Dr. Cash $ 29, 500Dr. Sales $ 1, 270Cr. Sales tax payable $ 30, 770. C) Dr. Accounts receivable $ 21, 000Cr. Sales $ 20, 000Cr. Sales tax payable $ 1, 000. D) Dr. Accounts receivable $ 20, 000Cr. Sales $ 19, 000Cr. Sales tax payable $ 1, 000. E) Dr. Accounts receivable $ 20, 000Dr. Sales tax payable $ 1, 000Cr. Sales $ 21, 000. Show Answer Correct Answer: C) Dr. Accounts receivable $ 21, 000Cr. Sales $ 20, 000Cr. Sales tax payable $ 1, 000. 12. For an adjusting entry for deferred expenses, it is common to: A) Debit an expense and credit cash. B) Debit a liability and credit an asset. C) Debit an expense and credit a liability. D) Debit an expense and credit an asset. Show Answer Correct Answer: D) Debit an expense and credit an asset. 13. What is the enticement to do something that benefits the donor? A) Goodwill. B) Security. C) Donated Assets. D) None of above. Show Answer Correct Answer: C) Donated Assets. 14. The following are disadvantages of Corporation, except? A) Difficult to organize. B) Strictly regulated and supervised by the Government. C) Formal and Impersonal Employer-Employee Relationship. D) None of the choices. Show Answer Correct Answer: D) None of the choices. 15. Robert Corporation owns machinery that cost $ 30, 000 when purchased on July 1, 2015. Depreciation has been recorded at a rate of $ 2, 600 per year, resulting in a balance in accumulated depreciation of $ 9, 100 at December 2018. The machinery is sold on Oct 1, 2019, for $ 20, 500. What is the journal entry to update depreciation for 2019? A) Dr. Depreciation expense $ 650Cr. Accumulated depreciation $ 650. B) Dr. Depreciation expense $ 2, 600Cr. Accumulated depreciation $ 2, 600. C) Dr. Depreciation expense $ 1, 950Cr. Accumulated depreciation $ 1, 950. D) Dr. Accumulated depreciation $ 1, 950Cr. Depreciation expense $ 1, 950. E) Dr. Accumulated depreciation $ 650Cr. Depreciation expense $ 650. Show Answer Correct Answer: C) Dr. Depreciation expense $ 1, 950Cr. Accumulated depreciation $ 1, 950. 16. The amount shareholders put in the company is called: A) Retained Earnings. B) Paid in Capital. Show Answer Correct Answer: B) Paid in Capital. 17. The accounts that are in debt are: A) Rent Charges Paid Up Front. B) Rental Income. C) Rent Expense. D) Prepaid Rental Income. Show Answer Correct Answer: D) Prepaid Rental Income. 18. Which best describes Management's responsibility? 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: A) An assessment of the company's internal control procedures. 19. A sale should not be recognized as revenue by the seller at the time of sale if: A) Payment was made by check. B) The selling price is less than the normal selling price. C) The buyer has a right to return the product and the amount of future returns cannot be reasonably estimated. D) None of these. Show Answer Correct Answer: C) The buyer has a right to return the product and the amount of future returns cannot be reasonably estimated. 20. Good/service are not highly interrelated with other good/services in the contract A) Capable of being distinct. B) Separately Identifiable. Show Answer Correct Answer: B) Separately Identifiable. ← PreviousNext →Related QuizzesAccounting QuizzesIntermediate Accounting Quiz 1Intermediate Accounting Quiz 2Intermediate Accounting Quiz 3Intermediate Accounting Quiz 5Intermediate Accounting Quiz 6Intermediate Accounting Quiz 7Intermediate Accounting Quiz 8Intermediate Accounting Quiz 9Intermediate Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books