This quiz works best with JavaScript enabled. Home > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In public companies, it is mandatory to include Earnings per Share in the profit and loss report. This statement..... A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 2. It refers to transactions and events of a business that can be measured in terms of money. A) Financial Accounting. B) Financial Information. C) Accounting. D) None of the choices. Show Answer Correct Answer: B) Financial Information. 3. IAS No. 2 does not permit the use of LIFO A) U.S. GAAP. B) IRFS. Show Answer Correct Answer: B) IRFS. 4. Which of the following is not a consideration of current liability? A) The entity expects to settle the liability within the entity's operating cycle. B) The entity holds the liability primarily for the purpose of trading. C) The liability is due to be settled within 12 months before the reporting period. D) The entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Show Answer Correct Answer: C) The liability is due to be settled within 12 months before the reporting period. 5. Land in the statement of financial position can be depreciated over 20 years. This statement..... A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 6. = NRVMarket should not be greater than the NRV A) Ceiling. B) Floor. Show Answer Correct Answer: A) Ceiling. 7. Purchased laundry equipment from the Bahtera Jaya shop on credit. The transaction analysis is ..... A) Assets increased, namely laundry equipment; debt increases. B) Assets increased, namely laundry equipment; debt is reduced. C) Assets increased, namely laundry equipment; cash is reduced. D) Salon equipment increases and laundry equipment loads increase. Show Answer Correct Answer: A) Assets increased, namely laundry equipment; debt increases. 8. Notes receivable with a nominal value of IDR 50, 000, 000.00, interest rate 12% per year, issued on December 1 2006 and due on January 30 2007, the maturity value is: A) Rp 56.000.000, 00. B) Rp 51.000.000, 00. C) Rp 50.000.000, 00. D) Rp 44.000.000, 00. Show Answer Correct Answer: B) Rp 51.000.000, 00. 9. Occurs when cash precede either expense or revenue expectations.Includes Prepaid Expense and Deferred Revenue A) Prepayments (Deferrals). B) Accruals. C) Estimates. D) None of above. Show Answer Correct Answer: A) Prepayments (Deferrals). 10. Which of the following refers to current assets? A) Vehicle. B) Long term investment. C) Marketable securities. D) Expenses for setting up a company. Show Answer Correct Answer: C) Marketable securities. 11. Best type of auditor report (nothing wrong) A) Unqualified. B) Unqualified with an explanation or emphasis paragraph. C) Qualified. D) Adverse or disclaimer. E) Rejected. Show Answer Correct Answer: A) Unqualified. 12. What occurs when small companies incorporate and the owner contributes assets to new corporation in exchange for ownership securities? A) Noncash Acquisitions. B) Lump-Sum Purchases. C) Goodwill. D) Issuance of Equity Securities. Show Answer Correct Answer: D) Issuance of Equity Securities. 13. When a bond is repaid by handing over assets where the fair value of the asset is less than the carrying value of the bond, the debtor will recognize A) No gain or loss on the repayment. B) Gain on the repayment. C) Loss on the repayment. D) There is no right answer. Show Answer Correct Answer: B) Gain on the repayment. 14. Amount of discount given at the time of reissue of shares should be debited to: A) Shares Capital. B) Discount on Shares. C) Share Forfeiture A/c. D) Calls-In-Areas A/c. Show Answer Correct Answer: C) Share Forfeiture A/c. 15. It is the activity of Traders as a broad category of product and services. A) Selling People's Time. B) Buying and Selling Products. C) Designing products, aggregating components and assembling finished products. D) Growing and Extracting Raw Materials. Show Answer Correct Answer: B) Buying and Selling Products. 16. Written promises to pay cash at some future date A) Accounts Payable. B) Notes Payable. Show Answer Correct Answer: B) Notes Payable. 17. The closing inventory of Tigreal Corp. amounted toP116, 400 excluding the following:* 400 items which had cost P4 each. All were soldafter the reporting period for P3 each, withselling expenses of P200 for the batch. * 200 different items which had cost P30 each.These items were found to be defective at theend of the reporting period. Rectification workafter the statement of financial position dateamounted to P1, 200, after which they were soldfor P35 each, with selling expenses totalingP300. Which of the following total figures should appear inthe statement of financial position of Tigreal Corp. forinventory? A) For 122, 900. B) For 123, 100. C) For 123, 400. D) For 123, 600. Show Answer Correct Answer: A) For 122, 900. 18. The best guess of a company's long-term growth rate is ..... A) Long-term economic growth rate. B) Historical average of dividend growth rate. C) Industry's profitability. D) The company's payout policy. Show Answer Correct Answer: A) Long-term economic growth rate. 19. Michael Corporation has a machine costing P480, 000, with an annual depreciation of P96, 000, and hasaccumulated depreciation of P240, 000 on December31, 2019. On April 1, 2020, when the machine has afair value of P192, 000, it is exchanged for a similarmachine with a fair value of P576, 000 and the properamount of cash is paid. The loss to be recognized on exchange is A) P48, 000. B) P24, 000. C) For 168, 000. D) P 0. Show Answer Correct Answer: B) P24, 000. 20. Prepare an unadjusted trial balance, record adjusting entries and post to general ledger accounts, prepare an adjusted trial balance, prepare financial statements A) During the Accounting Period. B) At the end of the Accounting Period. C) At the end of the year. D) None of above. Show Answer Correct Answer: B) At the end of the Accounting Period. ← PreviousNext →Related QuizzesAccounting QuizzesIntermediate Accounting Quiz 1Intermediate Accounting Quiz 2Intermediate Accounting Quiz 3Intermediate Accounting Quiz 4Intermediate Accounting Quiz 5Intermediate Accounting Quiz 6Intermediate Accounting Quiz 8Intermediate Accounting Quiz 9Intermediate Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books