This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What type of dividend does not reduce equity? A) Cash dividends. B) Liquidating dividends. C) Share dividends. D) Property dividends. Show Answer Correct Answer: C) Share dividends. 2. Cupcake Co. started 2020 with P94, 000 ofmerchandise inventory on hand. During 2020, P400, 000 in merchandise was purchased on accountwith credit terms of 1/15, n/45. All discounts weretaken. Purchases were all made f.o.b. shipping point.Cupcake paid freight charges of P7, 500. Merchandisewith an invoice amount of P5, 000 was returned forcredit. Cost of goods sold for the year was P380, 000.Cupcake uses a perpetual inventory system. What is ending inventory assuming Cupcake uses thegross method to record purchases? A) P120, 300. B) P112, 550. C) P116, 500. D) P112, 490. Show Answer Correct Answer: B) P112, 550. 3. On December 31, 2014, the following is PT Salvador's balance:Bonds Payable $ 1, 380, 000 Interest Payable 37, 000 If the bonds are redeemed on January 1, 2015 for $ 1, 530, 000 (after interest payments), how much does Salvador report as loss on extinguishment? A) $ 113, 000. B) $ 187, 000. C) $ 37, 000. D) $ 150, 000. Show Answer Correct Answer: D) $ 150, 000. 4. Lifo reserves formula A) Inventory Account balance under lifo for external reporting and income tax purposes minus Inventory account balance under FIFO and average cost used to maintain internal records. B) Inventory Account balance under lifo for internal reporting and income tax purposes minus Inventory account balance under FIFO and average cost used to maintain internal records. C) Inventory Account balance under lifo for internal reporting and income tax purposes plus Inventory account balance under FIFO and average cost used to maintain internal records. D) Inventory Account balance under lifo for external reporting and income tax purposes plus Inventory account balance under FIFO and average cost used to maintain internal records. Show Answer Correct Answer: A) Inventory Account balance under lifo for external reporting and income tax purposes minus Inventory account balance under FIFO and average cost used to maintain internal records. 5. Close the temporary accounts to retained earnings and prepare a post-closing trial balance. 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: C) At the end of the year. 6. Naruko Company received a P1, 800, 000 subsidy fromthe government to purchase manufacturing equipmenton January 2, 2020. The equipment has a cost ofP3, 000, 000, a useful life of five years, and no salvagevalue. Naruko depreciates the equipment using sumof-the-years' digits method. If Naruko chooses to account for the grant as deferred income, the grant income to be recognized in 2020 is A) Give 0, 000. B) P600, 000. C) P400, 000. D) Nil. Show Answer Correct Answer: B) P600, 000. 7. A company's Investing cash flows are negative. This is a sign of ill-health, definitely. A) True. B) False. Show Answer Correct Answer: B) False. 8. Which type of accounting change should always be accounted for in current and future periods? A) Change in accounting estimate. B) Change in reporting entity. C) Change in accounting principle. D) Correction of an error. Show Answer Correct Answer: A) Change in accounting estimate. 9. Recording RevenueTotal Sales price paid by the customers A) Principal. B) Agent. Show Answer Correct Answer: A) Principal. 10. Sales will be reported in the Financial Report..... A) Income Statement. B) Retained Earnings Statement. C) Statement of Financial Position. D) Statement of Cash Flows. Show Answer Correct Answer: A) Income Statement. 11. PT JAYA sold an air conditioner worth Rp. 5, 500, 000 to PT ABADI on 1 October 20X7, which will open a new branch. The air conditioner has a basic price of IDR 4, 250, 000. Based on the agreement, PT JAYA will hold the air conditioner until the new PT ABADI branch is ready for use. Ownership transfers to PT ABADI when the agreement is signed. The journal entries that PT JAYA must make on October 1, 20X7 are: A) Cash (D) 5, 500, 000Cost of goods sold (D) 4, 250, 000Sales revenue (K) 5, 500, 000Air conditioning (K) 4, 250, 000. B) Cash (D) 5, 500, 000 Cost of goods sold (DI) 4, 250, 000 Sales revenue (K) 5, 500, 000 inventory (K) 4, 250, 000. C) No journal. D) . Show Answer Correct Answer: B) Cash (D) 5, 500, 000 Cost of goods sold (DI) 4, 250, 000 Sales revenue (K) 5, 500, 000 inventory (K) 4, 250, 000. 12. Jai Jai Company Limited has transactions regarding common stocks during 2020 as follows:1 Jan. Number of shares remaining at the beginning of the period 100, 000 shares. 1 Apr. Issued additional 20, 000 shares for sale. 1 May. Announced dividend payment of 20% of the number of common shares. What is the weighted average number of shares outstanding from January 1 to April 1? A) 25, 500 shares. B) 20, 000 shares. C) 32, 000 shares. D) 25, 000 shares. E) 30, 000 shares. Show Answer Correct Answer: E) 30, 000 shares. 13. Can you see the trial question? A) No. B) Yes. Show Answer Correct Answer: B) Yes. 14. The amount of cash into which an asset is expected to be converted into the ordinary course of business A) Fair value. B) Net realizable value. C) Present value. D) Current cost. E) Historical Cost. Show Answer Correct Answer: D) Current cost. 15. The price that would be received to sell assets or paid to transfer a liability in an orderly transaction between market participants at the measurement date A) Current cost. B) Present value. C) Historical Cost. D) Net realizable value. E) Fair value. Show Answer Correct Answer: E) Fair value. 16. Non-current assets held for sale are presented as a group..... A) Fixed assets. B) Equity. C) Current assets. D) Non-current liabilities. Show Answer Correct Answer: C) Current assets. 17. Expenses for setting up a company What type of item is this considered? And what are the procedures? A) Considered an asset and amortized according to its useful life. B) Considered an asset and fully amortized within 5 years. C) It is considered an expense in the first year of operation. D) Cannot be considered an expense of the business Because it is an event that occurred before the date the company was legally established. E) Businesses can choose procedures that are appropriate for their business. Show Answer Correct Answer: C) It is considered an expense in the first year of operation. 18. What is meant by Share Capital Withdrawn from Circulation (Treasury Stock) is..... A) The number of shares and their nominal value that were once in circulation and then repurchased (withdrawn from circulation) by the PT concerned. B) The number of shares that have been ordered to purchase by a particular party. The shares ordered will only be handed over to the buyer after the share price has been paid. C) The number of shares and their nominal value that can be issued is in accordance with the deed of establishment of the PT concerned. D) The number of shares for which authorization has been issued but which have not yet been sold. Show Answer Correct Answer: A) The number of shares and their nominal value that were once in circulation and then repurchased (withdrawn from circulation) by the PT concerned. 19. Guaranteeing sustainable business continuity in the future is the fulfillment of basic accounting assumptions, namely: A) Economic entity. B) Monetary. C) Periodicity. D) Going concern. Show Answer Correct Answer: D) Going concern. 20. Recognition of liabilities means A) Include debt items as part of the statement of financial position. B) Being responsible. C) Keeping documents. D) All correct. Show Answer Correct Answer: A) Include debt items as part of the statement of financial position. 21. The following data has been taken from the payroll of a company for the month of February 20X1. The salary expenses for the month are: A) 80.5 juta. B) 56 jute. C) 74.5 juta. D) 50 juta. Show Answer Correct Answer: A) 80.5 juta. 22. It is known to be the language of business. A) Financial Statements. B) Financial Accounting. C) Accounting. D) Money. Show Answer Correct Answer: C) Accounting. 23. Which of the following is not a disadvantage of the corporate business form? A) Separate ownership and management. B) Government regulation. C) Continuous life. D) Additional taxes. Show Answer Correct Answer: C) Continuous life. 24. At the beginning of 2016, Tiktok Company had retained earnings of $ 150, 000. During the year net income was reported as $ 75, 000, selling treasury shares with a gain of $ 27, 000, declaring a cash dividend of $ 45, 000, and declaring and issuing a small share dividend of 1, 500 shares ($ 10 par value) when the fair value of the shares was $ 30 per share. The amount of retained earnings available for dividends at the end of 2016 is: A) $ 162, 000. B) $ 157, 500. C) $ 165, 000. D) $ 184, 500. Show Answer Correct Answer: C) $ 165, 000. 25. Equipment-new = fair value + cash paid A) False. B) True. Show Answer Correct Answer: B) True. 26. On Jul 5, Jeff Company sold to Bezos Company merchandise having a sale price of $ 4, 000 with terms of 2/10, n/60, f.o.b. shipping point. On Jul 14, the company received a check for the balance due from Bezos Company. What is the journal entries at Jeff Company books to records sales using the gross method at Jul 14? A) Dr. Cash $ 3, 920Cr. Accounts receivable $ 3, 920. B) Dr. Cash $ 3, 920Dr. Sales discounts $ 80Cr. Accounts receivable $ 4, 000. C) Dr. Cash $ 4, 000Dr. Sales discounts $ 80Cr. Accounts receivable $ 4, 080. D) Dr. Cash $ 4, 800Cr. Accounts receivable $ 4, 800. E) Dr. Accounts receivable $ 3, 920Cr. Sales $ 3, 920. Show Answer Correct Answer: B) Dr. Cash $ 3, 920Dr. Sales discounts $ 80Cr. Accounts receivable $ 4, 000. 27. How should a note payable designated at fair value through profit or loss be measured? A) Fair value plus transaction cost. B) Face amount. C) Fair value minus transaction cost. D) Fair value. Show Answer Correct Answer: D) Fair value. 28. Dallas Company purchased a tooling machine in 2010for P600, 000. The machine was being depreciated onthe straight-line method over an estimated useful lifeof 20 years with no salvage value. At the beginningof 2020, Dallas paid P120, 000 to overhaul themachine. As a result of this improvement, Dallasestimated that the useful life of the machine would beextended an additional 5 years. The depreciation to be recognized in 2020 is A) 000 spots. B) P20, 000. C) P28, 000. D) P15, 000. Show Answer Correct Answer: C) P28, 000. 29. Adjustments for unpaid expenses fall into the category..... A) Accrued Expense. B) Accrued Revenue. C) Prepaid Expense. D) Unearned Revenue. Show Answer Correct Answer: A) Accrued Expense. 30. Goods on Consignment for inventory owner ship depends on A) Consignee. B) Reduction of purchases. C) Ownership of goods. D) Consignor. Show Answer Correct Answer: D) Consignor. ← 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