This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mike Corporation issues 10, 000 shares of $ 12 par value preferred stock for $ 15 cash per share. The journal entry to record the issuance is: A) Dr. Cash $ 120, 000Cr. Common Stock $ 120, 000. B) Dr. Cash $ 150, 000Cr. Preferred Stock $ 120, 000Cr. Paid-in Capital in Excess of Par-Preferred Stock $ 30, 000. C) Dr. Cash $ 150, 000Cr. Preferred Stock $ 150, 000. D) Dr. Cash $ 150, 000Cr. Common Stock $ 120, 000Cr. Paid-in Capital in Excess of Par-Common Stock $ 30, 000. Show Answer Correct Answer: B) Dr. Cash $ 150, 000Cr. Preferred Stock $ 120, 000Cr. Paid-in Capital in Excess of Par-Preferred Stock $ 30, 000. 2. The portion of authorized capital which can be called up only on the liquidation of the company:- A) Authorised capital. B) Reserve capital. C) Issued capital. D) Called up capital. Show Answer Correct Answer: B) Reserve capital. 3. When treasury shares are purchased above the par value of the shares and the cost method is used to record the treasury shares, what account should be debited? A) Treasury shares for the par value dan retained earnings for the excess of the purchase price over the par value. B) Treasury shares for the purchase price. C) Share premium for the purchase price. D) Treasury shares for the par value dan share premium for the excess of the purchase price over the par value. Show Answer Correct Answer: B) Treasury shares for the purchase price. 4. If a business ceases operations and liquidates, which of the following will be paid last? A) Owners. B) Creditors who have collateral for their loans. C) General creditors. D) Employees. Show Answer Correct Answer: A) Owners. 5. Journal Entries-Adjusting recorded A) 24/7. B) Monthly. C) Year-end. D) None of above. Show Answer Correct Answer: B) Monthly. 6. Represents the accumulated net income reported by the company since its inception minus all dividends distributed to all shareholders A) Retained Earnings. B) Paid in Capital. Show Answer Correct Answer: A) Retained Earnings. 7. The company recorded purchases of CU9, 801 in the purchases account and CU107 in the cash account in the financial year ended 31 January 20X4. Purchase accruals were Rp. 75 lower compared to the previous year, and prepayments were Rp. 60 lower. How much of the purchase was included in selling expenses in the profit or loss statement for the year ended 31 January 20X4? A) Rp9.786. B) Rp9.893. C) Rp9.908. D) Rp9.923. Show Answer Correct Answer: B) Rp9.893. 8. UK National Bank agrees to lend $ 160, 000 on March 1, 2019, to Butter D Co. if Butter D signs a $ 160, 000, 6 percent, four-month note. Butter D prepares financial statements semiannually. At maturity (July 1), what is the journal entry in Butter D Co. to record payment of the note and accrued interest? A) Dr. Interest expense $ 163, 200Cr. Cash $ 163, 200. B) Dr. Interest payable $ 160, 000Cr. Cash $ 160, 000. C) Dr. Notes payable $ 160, 000Dr. Interest payable $ 9, 600Cr. Cash $ 169, 600. D) Dr. Interest expense $ 160, 000Cr. Cash $ 160, 000. E) Dr. Notes payable $ 160, 000Dr. Interest payable $ 3, 200Cr. Cash $ 163, 200. Show Answer Correct Answer: E) Dr. Notes payable $ 160, 000Dr. Interest payable $ 3, 200Cr. Cash $ 163, 200. 9. On January 1 2012 Mr. Raka deposited money into the "OKE PUNYA" Workshop amounting to Rp. 500, 000, 000, -as capital contribution. The journal entry for the above transaction is A) Cash IDR 500, 000, 000 (D) and Deposit IDR 500, 000, 000 (K). B) Debt IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). C) Trade receivables IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). D) Cash IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). Show Answer Correct Answer: D) Cash IDR 500, 000, 000 (D) and Capital Mr. Raka Rp. 500, 000, 000 (K). 10. The following are included in the cost of inventory, except: A) Carriage costs. B) Purchase Price. C) Import Customs. D) Storage Fees. Show Answer Correct Answer: D) Storage Fees. 11. Roy 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 record the sale? A) Dr. Cash $ 20, 500Cr. Machinery $ 20, 500. B) Dr. Cash $ 20, 500Dr. Accumulated depreciation 11, 050Cr. Machinery $ 30, 000Cr. Gain on sale $ 1, 050. C) Dr. Cash $ 30, 000Cr. Machinery $ 30, 000. D) Dr. Cash $ 20, 500Dr. Accumulated depreciation $ 9, 500Cr. Machinery $ 30, 000. E) None of these. Show Answer Correct Answer: B) Dr. Cash $ 20, 500Dr. Accumulated depreciation 11, 050Cr. Machinery $ 30, 000Cr. Gain on sale $ 1, 050. 12. Compromising layers of dollar value from different years. Inventory is viewed as a quantity of value rather than a physical quantity of goods. A) Dollar-Value LIFO. B) LIFO Inventory Pools. Show Answer Correct Answer: A) Dollar-Value LIFO. 13. Accounting principal equation A) Assets + Liabilities = Stockholder Equity. B) Assets = Liabilities-Stockholder Equity. C) Assets = Liabilities x Stockholder Equity. D) Assets = Liabilities + Stockholder Equity. Show Answer Correct Answer: D) Assets = Liabilities + Stockholder Equity. 14. Who publishes Accounting Standards in Indonesia? A) American Institute of Certified Public Accountants. B) Indonesia stock exchange. C) Indonesian Association of Public Accountants. D) Indonesian Accountants Association. Show Answer Correct Answer: D) Indonesian Accountants Association. 15. Grouping inventory units into groups based on physical similarities of the individual units. Individual unit costs are converted to an average cost for the group A) LIFO Inventory Pools. B) Dollar-Value LIFO. Show Answer Correct Answer: A) LIFO Inventory Pools. 16. What types of partnerships have limited liability partners? A) Juristic General Partnership. B) General partnership. C) Limited partnership. D) All correct. Show Answer Correct Answer: C) Limited partnership. 17. Joe and James have agreed to record equal initial interests. Although Joe invested 240, 000 baht in cash, James invested 201, 600 baht in cash. The five partners use the goodwill method to record their initial capital. What is the amount of goodwill that must be recorded in the James capital increase account? A) 76, 800 baht. B) 38, 400 baht. C) 9, 600 baht. D) 0 baht. Show Answer Correct Answer: B) 38, 400 baht. 18. Discounts that sellers give to buyers as soon as they agree to buy and sell products. It is usually set as a percentage of the originally set price, called A) Credit discount. B) Partner discount. C) Trade discount. D) Cash discount. Show Answer Correct Answer: C) Trade discount. 19. Pink, Inc. issued 6, 000 shares of stock at a stated value of $ 10 per share. The total issue of stock sold for $ 12 per share. What is the journal entry to record this transaction? A) Dr. Cash $ 72, 000Cr. Common Stock $ 60, 000Cr. Paid-in Capital in Excess of Stated Value-Common Stock $ 12, 000. B) Dr. Cash $ 12, 000Cr. Common Stock $ 12, 000. C) Dr. Cash $ 72, 000Cr. Common Stock $ 72, 000. D) Dr. Cash $ 60, 000Cr. Common Stock $ 60, 000. Show Answer Correct Answer: A) Dr. Cash $ 72, 000Cr. Common Stock $ 60, 000Cr. Paid-in Capital in Excess of Stated Value-Common Stock $ 12, 000. 20. What does amortized mean? A) Infinite useful life. B) Finite useful life. Show Answer Correct Answer: B) Finite useful life. 21. Salon "Pesona Ayu" has the following data:Assets Rp. 50, 000, 000.00 ; Debt Rp. 12, 500, 000.00. Thus, the company's equity is..... A) Rp. 17.500.000, 00. B) P. 12.500.000, 00. C) Rp. 50.000.000, 00. D) Rp. 37.500.000, 00. Show Answer Correct Answer: D) Rp. 37.500.000, 00. 22. The basic quality in financial reporting is..... A) Predictive and relevant value. B) Timely and understandable. C) Comparable and verifiable. D) Relevant and honest presentation. Show Answer Correct Answer: D) Relevant and honest presentation. 23. Material error, ..... restate financials A) Retrospectively. B) Prospectively. Show Answer Correct Answer: A) Retrospectively. 24. Ltd company took over assets worth Rs. 10, 00, 000 and liabilities of Rs. 3, 00, 000 for purchase consideration worth Rs. 12, 00, 000 how much amount will be debited to goodwill account A) Rs. 5, 00, 000. B) Rs. 10, 00, 000. C) Rs. 3, 00, 000. D) Rs. 12, 00, 000. Show Answer Correct Answer: A) Rs. 5, 00, 000. 25. Changing Depreciation A) Retrospectively. B) Prospectively. Show Answer Correct Answer: B) Prospectively. 26. The process of associating numerical accounts with the elements A) Recognition. B) Measurement. C) Disclosure. D) None of above. Show Answer Correct Answer: B) Measurement. 27. Long term investments include..... A) Current assets. B) Non-current Equity. C) Non-current Liabilities. D) Non-current Assets. Show Answer Correct Answer: D) Non-current Assets. 28. The net carrying amount of non-current assets was CU200, 000 at 1 August 20X0. During the financial year ended 31 July 20X1, a non-current asset was sold for Rp. 25, 000, of which the company suffered a loss of Rp. 5, 000. Depreciation expense for the year was CU20, 000. What was the carrying amount of non-current assets at 31 July 20X1? A) Rp150.000. B) Rp155.000. C) Rp160.000. D) Rp180.000. Show Answer Correct Answer: A) Rp150.000. 29. On March 1 (Year 1), ABC Company issued a P90, 000, 8% interest-bearing note payable from a financial institution. Interest and principal are payable after 1 year. How much is the interest expense for Year 1? A) 6, 000. B) 5, 400. C) 7, 000. D) 7, 200. Show Answer Correct Answer: A) 6, 000. 30. International standards board for countries around the US A) IASB. B) SEC. C) GAAP. D) FASB. E) GASB. Show Answer Correct Answer: A) IASB. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesIntermediate Accounting Quiz 1Intermediate Accounting Quiz 2Intermediate Accounting Quiz 3Intermediate Accounting Quiz 4Intermediate Accounting Quiz 5Intermediate Accounting Quiz 6Intermediate Accounting Quiz 7Intermediate Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books