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Intermediate Accounting Quiz 9 (20 MCQs)

Quiz Instructions

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1. Merchandiser using FIFO perpetual will be different from one that uses FIFO periodic
2. Prepaid expenses are included in.....
3. Results in old cost being matched with current selling prices. If cost have been increasing (decreasing), LIFO liquidations produce higher (lower) net income.
4. Some of the functions of a qualified accounting role are, except:
5. The estimated life of a building that has been depreciated 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should:
6. The amount of cash provided by a company to pay relatively small expenses is called.....
7. Inventory error correction-when the error is found two years later-requires
8. Which of the following principles best describes the conceptual rationale for the method of matching depreciation expense to income?
9. Legal, regulatory, or contractual provisions often limit the useful life of an intangible asset
10. On December 31, 2008 Kean Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2008 beginning inventory to increase by $ 420, 000. The cumulative effect on COGS of this accounting change to be reported for the year ended 12/31/08, assuming a 40% tax rate, is:
11. Components that DEFINITELY reduce the amount of retained earnings include:
12. Management:
13. Jackson Classic Car Parts Corp. uses the gross method for sales to customers on account. If Jackson's sells $ 4, 000 to a customer on account on September 21st, with credit terms 2/15, N/30, FOB shipping point, what would Jackson's debit Accounts Receivable for?
14. Pemberly Corporation began business in 2009 by issuing 200, 000 shares of common stock at $ 20 par selling for $ 36 per share. In 2014, 20, 000 shares were withdrawn at $52 per share by Pemberly Corporation and recorded as treasury shares. On June 15, 2015, the 20, 000 shares were exchanged for property with an appraised value of $ 810, 000. Pemberly shares are actively traded and had a market price of $60 per share on June 15, 2015. The cost method is used to record treasury shares. The amount of share premium-treasury resulting from the above transaction is
15. The purpose of financial reports in the basic framework for preparing local government financial reports according to SAP prioritizes aspects..... The purpose of financial reports in the basic framework for preparing local government financial reports according to SAP prioritizes aspects.....
16. Limitations of the Financial Position Report include.....
17. Sincere Company Limited registered 20, 000 common shares with a value of 100 baht per share on January 1, 2020. Issued 6, 000 common shares at a price of 120 baht per share on June 1, 2020. Purchased 1, 000 common shares back at the price. 130 baht per share. Show the recording of treasury shares on June 1, 2020 (according to the cost method).
18. PT Permata purchased a patent related to a new manufacturing process, which will be used to produce new products. The costs incurred are as follows:1. Patent acquisition price:Rp. 1, 600, 000, 0002. Expenditures for new product promotion:IDR 150, 000, 0003. Employee benefits costs related to testing required to ensure the new process works:Rp. 200, 000, 000 How much total costs are capitalized as intangible assets?
19. A contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration, given that the supplier has a substantive right regarding the said asset.
20. Matching between the formation of revenue and the amount of expenses to generate revenue in one period is the fulfillment of basic accounting assumptions, namely:
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