This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If cost is lower than NRV A) No adjusting entry needed. B) Reduce inventory from its already recorded purchase cost to the lower NRV. Show Answer Correct Answer: A) No adjusting entry needed. 2. PS shareholders participate wit common stock shareholders in dividends in excess of a specific amount A) Cumulative PS. B) Noncumulative PS. C) Participating PS. D) Nonparticipating PS. Show Answer Correct Answer: C) Participating PS. 3. Land acquired and held for speculation is classified as an: A) Inventory. B) Investment. C) Liabilities. D) None of these. Show Answer Correct Answer: B) Investment. 4. On January 1, 2015, Pulgoso Company sold bonds $ 10, 000, 000 at 10% nominal interest, receiving cash $ 8, 852, 960 (12% market interest). Interest is payable semiannually on January 1 and July 1. The first interest payment journal on July 1 2015 includes A) Debit to Cash for $ 600, 000. B) Credit to Interest Expense for $ 442, 648. C) Credit to Bonds Payable for $ 1, 062, 355. D) Debit to Interest Expense for $ 531, 178. Show Answer Correct Answer: D) Debit to Interest Expense for $ 531, 178. 5. The bank account in the ledger shows a balance of IDR 1, 138 on December 31. When the company compared this balance with the bank statement on the same date, it discovered the following discrepancy:What was the correct balance on the bank account in the general ledger on December 31? A) Rp1.276. B) Rp1.078. C) Rp1.527. D) Rp1.060. Show Answer Correct Answer: B) Rp1.078. 6. In an accounting period, if an expense item has arisen and been utilized, but has not been paid or recorded in the accounting system, then the adjusting journal entry that needs to be made at the end of the period is..... A) Liability accounts and asset accounts. B) Asset accounts and expense accounts. C) Contra asset accounts and expense accounts. D) Liability accounts and expense accounts. Show Answer Correct Answer: D) Liability accounts and expense accounts. 7. The cornerstone of good internal control for cash Which measures should be taken? A) Income and expenses are recorded. and can be verified together. B) Take the cash received Deposit in the bank every day and pay expenses by check. C) A bank balance sheet is prepared and a petty cash limit is set for small expenses. D) All of the above are correct. Show Answer Correct Answer: D) All of the above are correct. 8. When is there a substantial modification of terms of an existing financial liability? A) At least 10% of the present value of the new liability. B) More than 10% of the present value of the new liability. C) At least 10% of the carrying amount of the old liability. D) More than 10% of the carrying amount of the old liability. Show Answer Correct Answer: A) At least 10% of the present value of the new liability. 9. The entity recognizes the purchase of a calculator worth 500 thousand as an administration fee even though the calculator has a useful life of more than one year. What considerations underlie the accounting treatment? The entity recognizes the purchase of a calculator for 500 thousand as an administrative cost because the calculator has benefits for more than one year. What considerations underlie this accounting treatment? A) Materiality. B) Reliability. C) Relevance. D) Going concern. Show Answer Correct Answer: A) Materiality. 10. The cost of an intangible asset includes all of the following except. A) Purchase price. B) Legal fees. C) Other incidental expenses. D) All of these are included. Show Answer Correct Answer: D) All of these are included. 11. Ketika suatu note payable diterbitkan dengan memperoleh property, goods, or services, the present value of the note diukur dengan A) The fair value of the property, goods, or services. B) The fair value of the note. C) Using an imputed interest rate to discount all future payments on the note. D) All of these answer choices are correct. Show Answer Correct Answer: D) All of these answer choices are correct. 12. Steps in changing inventory method though the LIFO Method A) Revise Comparative statements. B) Adjust affected accounts. C) Disclose additional information. D) The LIFO Method is used from the point the change is adopted and that period's beginning balance is considered as the base year inventory. Show Answer Correct Answer: D) The LIFO Method is used from the point the change is adopted and that period's beginning balance is considered as the base year inventory. 13. Seller's location. Buyer has rights to inventory as soon as items are shipped (put) in truck A) F.O.B. Destination point. B) F.O.B. Shipping point. Show Answer Correct Answer: B) F.O.B. Shipping point. 14. The following is an account with a normal debit balance A) Assets and Liabilities. B) Liability and equity. C) Assets and Equity. D) Assets and Liabilities. Show Answer Correct Answer: A) Assets and Liabilities. 15. Adjusting journal to record accrued wages: A) Debit salary expenses and credit cash. B) Salary debt is debited and salary burden is credited. C) Salary debt is debited and cash is credited. D) Salary expenses are debited and salary arrears are credited. Show Answer Correct Answer: D) Salary expenses are debited and salary arrears are credited. 16. The Company's Leverage is 2.5. This is a healthy company A) True. B) False. Show Answer Correct Answer: B) False. 17. An example of a correction of an error in previously issued financial statements is a change: A) From the FIFO method of inventory valuation to the LIFO method. B) In the service life of plant assets, based on changes in the economic environment. C) In the tax assessment related to a prior period. D) From the cash basis of accounting to the accrual basis of accounting. Show Answer Correct Answer: D) From the cash basis of accounting to the accrual basis of accounting. 18. Moly Co. incurs $ 200, 000 in legal costs on January 1, 2016, to successfully defend a patent. The patent's useful life is 20 years, amortized on a straight-line basis. What is the journal entry to record the legal fees? A) Dr. Amortization Expense $ 200, 000Cr. Patents $ 200, 000. B) Dr. Patents $ 200, 000Cr. Cash $ 200, 000. C) Dr. Patents $ 200, 000Cr. Account Payable $ 200, 000. D) Dr. Patents $ 10, 000Cr. Cash $ 10, 000. E) Dr. Amortization Expense $ 10, 000Cr. Patents $ 10, 000. Show Answer Correct Answer: B) Dr. Patents $ 200, 000Cr. Cash $ 200, 000. 19. Statement of financial position only for shareholders of Jing Jai Company Limited as of March 31, 2020, as follows:2, 000 preferred shares, value 50 baht each, 100, 000 baht, common shares 1, 500 shares, value 100 baht each, 150, 000 baht, excess value of preferred shares 10, 000 baht, profit Accumulated 40, 000 baht Conversion conditions:10 preferred shares, convertible to 7 common shares. There are 400 preferred shares shareholders requesting conversion. Please show the accounting records as of the conversion date. A) Dr. Preferred share capital 20, 000 Surplus on preferred shares 2, 000 Cr. Ordinary share capital 20, 000 Surplus on common shares 2, 000. B) Dr. Preferred share capital 20, 000 Premium on preferred shares 2, 000 Retained earnings 6, 000 Cr. Common share capital 28, 000. C) Dr. Ordinary share capital 20, 000 Cr. Preferred share capital 20, 000. D) Dr. Preferred share capital 20, 000 Cr. Ordinary share capital 20, 000. E) Dr. Preferred share capital 20, 000 Surplus value of preferred shares 2, 000 Cr. Common share capital 22, 000. Show Answer Correct Answer: B) Dr. Preferred share capital 20, 000 Premium on preferred shares 2, 000 Retained earnings 6, 000 Cr. Common share capital 28, 000. 20. A non-current asset was purchased on the first day ofan accounting period, 1 January 2018 for P34, 000 anddepreciated by 20% per annum using the reducingbalance method. On 30 June 2020 the asset was sold, realizing a loss on disposal of P2, 100. What were the proceeds of sale? A) P14, 900. B) P21, 684. C) P17, 484. D) For 19, 660. Show Answer Correct Answer: C) P17, 484. 21. What is an acquisition of a group of assets for a single sum? A) Multiple sum. B) Group sum. C) Lump sum. D) None of above. Show Answer Correct Answer: C) Lump sum. 22. Monsters Inc. declared a $ 160, 000 cash dividend. The Company has 6, 000 shares of preference, 7%, $ 100 par value cumulative preference shares outstanding. There is a dividend in arrears for one year for preference shares. How much cash will be distributed to ordinary shareholders? A) $ 76, 000. B) There isn't any. C) $ 118, 000. D) $ 84, 000. Show Answer Correct Answer: A) $ 76, 000. 23. IFRS is the basis of accounting standards used in Indonesia. IFRS stands for A) International Federation of Reporting Services. B) Independent Financial Reporting Standards. C) Integrated Financial Reporting Services. D) International Financial Reporting Standards. Show Answer Correct Answer: D) International Financial Reporting Standards. 24. Which of the following is not a reason why revenue is recognized at time of sale? A) Realization has occurred. B) The sale is the critical event. C) Title legally passes from seller to buyer. D) All of these are reasons to recognize revenue at time of sale. Show Answer Correct Answer: D) All of these are reasons to recognize revenue at time of sale. 25. Goods in the form of raw materials that will be processed into finished goods are..... A) Merchandise inventory. B) Work on proces inventory. C) Inventory system'. D) Finishing goods inventory. E) Raw material inventory. Show Answer Correct Answer: E) Raw material inventory. 26. Non-Controlling Interests (Minority Interests) are disclosed in the statement of changes in equity section..... A) Assets. B) Long Term Liabilities. C) Short-term liabilities. D) Equity. Show Answer Correct Answer: D) Equity. 27. The following are not included in the COGS calculation:..... A) Purchase Discount. B) Freight in. C) Ending Inventory. D) Freight out. Show Answer Correct Answer: D) Freight out. 28. Lease term refers to the cancelable period of lease together with:a. periods covered by an option to renew if the lessee is reasonably certain to exercise that optionb. periods covered by an option to terminate the lease if the lessee is reasonably certain NOT to exercise that option A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 29. Debt Service Coverage ratio (DSCR) is 2.13. This is a sign of good health? A) True. B) False. Show Answer Correct Answer: A) True. 30. Journal Entries-Closing recorded A) 24/7. B) Monthly. C) Year-end. D) None of above. Show Answer Correct Answer: C) Year-end. ← 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