This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The concept that forms the basis of the basic framework for presenting and disclosing financial statements is.....The concept that forms the basis of the basic framework for presenting and disclosing financial statements is..... A) Usefulness in decision making (decision usefulness). B) Ease of information to understand (understandability). C) Information reliability (reliability). D) Comparability of information (comparability). Show Answer Correct Answer: A) Usefulness in decision making (decision usefulness). 2. On June 2, Tom Company sold to Jerry Company merchandise having a sale price $ 5, 000 with terms of 2/10, n/60, f.o.b. shipping point. On June 11, the company received a check for the balance do from Jerry Company. Assuming Tom records sales using the net method. What is the journal entries on Tom Company books to record the sale? A) Dr. Accounts receivable $ 5, 000Cr. Sales $ 5, 000. B) Dr. Cash $ 4, 900Dr. Sales discounts $ 100Cr. Accounts receivable $ 5, 000. C) Dr. Cash $ 3, 920Cr. Accounts receivable $ 3, 920. D) Dr. Cash $ 4, 900Cr. Accounts receivable $ 4, 900. E) Dr. Cash $ 5, 000Cr. Accounts receivable $ 5, 000. Show Answer Correct Answer: D) Dr. Cash $ 4, 900Cr. Accounts receivable $ 4, 900. 3. When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the A) Book value of the stock. B) Par value of the stock. C) Stated value of the stock. D) Fair value of the stock. Show Answer Correct Answer: D) Fair value of the stock. 4. On January 1, Santibanez Inc. issued $ 3, 000, 000, 11% nominal interest, raising cash $ 3, 195, 000 (10% effective interest). Interest is payable annually on December 31. Santibanez uses the effective-interest method for premium/discount amortization. At the end of the first year, what is the value of the bonds reported in the financial statements? A) $ 3, 184, 500. B) $ 3, 165, 000. C) $ 3, 185, 130. D) $ 3, 173, 550. Show Answer Correct Answer: A) $ 3, 184, 500. 5. A company days sales outstanding are as follows for 2017, 2018, 2019:40 days, 35 days, 32 days. The Company is healthy A) True. B) False. Show Answer Correct Answer: A) True. 6. The party who needs accounting information to make a decision about whether or not to invest capital in the company is...... A) Government. B) Creditors. C) Investor. D) Employee. Show Answer Correct Answer: C) Investor. 7. Represents obligations created when expenses have been incurred but will not be paid until a subsequent reporting period A) Accrued Liabilities. B) Deferred Revenue. Show Answer Correct Answer: A) Accrued Liabilities. 8. Obtain source documents about external transactions, analyze the transaction, record the transaction in a journal, post from the journal to the general ledger accounts 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: A) During the Accounting Period. 9. Which of the following is not treated as a change in accounting principle? A) A change from LIFO to FIFO for inventory valuation. B) A change to a different method of depreciation for plant assets. C) A change from completed-contract to percentage-of-completion. D) A change from full-cost to successful efforts in the extractive industry. Show Answer Correct Answer: B) A change to a different method of depreciation for plant assets. 10. Globally recognized accounting standards are A) IFRS. B) IAI. C) DSAK. D) IASB. Show Answer Correct Answer: A) IFRS. 11. The main objectives of making financial reports include: A) Seeking Profit. B) Provides information for users. C) Ease of Taxation. D) Maximizing Revenue. Show Answer Correct Answer: B) Provides information for users. 12. Earnings per share means A) Net profit or net loss per bond of the company. B) Net profit or net loss per share of the company's capital. C) Net profit or net loss to total shareholders' equity. D) Net profit or net loss per preferred share of the company. E) Net profit or net loss per common share of the company. Show Answer Correct Answer: E) Net profit or net loss per common share of the company. 13. Governmental agencies that regulate public companies. Congress gave ..... the power to regulate GAAP and select delegates for the FASB A) SEC. B) GASB. C) IASB. D) FASB. E) GAAP. Show Answer Correct Answer: A) SEC. 14. Residual rights to company assets after deducting liabilities are called A) Asset. B) Expense. C) Equity. D) Liabilities. Show Answer Correct Answer: C) Equity. 15. Which of the following will likely be included in an auditor's report? A) An assessment of the company's internal control procedures. B) A detailed explanation of data contained in the financial statements. C) An opinion that the financials present fairly the financial position, results of operations, and cash flow in accordance to GAAP. D) All of the above. Show Answer Correct Answer: C) An opinion that the financials present fairly the financial position, results of operations, and cash flow in accordance to GAAP. 16. Which of the following is not belong to broad categories of products and services? A) Insurance. B) Traders. C) Services. D) Cash. Show Answer Correct Answer: D) Cash. 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 used the bonus method to back up their initial investment. What is the amount of goodwill that must be recorded in the James capital increase account? A) 38, 400 baht. B) 0 baht. C) 76, 800 baht. D) 9, 600 baht. Show Answer Correct Answer: B) 0 baht. 18. Prepayment of insurance premiums for a period by the insured can be recorded as: A) Modal. B) Assets. C) Debt. D) Income. Show Answer Correct Answer: B) Assets. 19. ABC Company issued $ 20, 000, 000 of 10-year, 9% bonds on March 1 2015 at an exchange rate of 97 plus accrued interest. The bonds are dated January 1 2015, interest is paid every June 30 and December 31. How much cash is received when the bond is issued? A) $ 19, 700, 000. B) $ 19, 400, 000. C) $ 20, 450, 000. D) $ 19, 100, 000. Show Answer Correct Answer: A) $ 19, 700, 000. 20. On the day of stock split up (Stock-split up), how will the account be recorded? A) No action required. B) No need to record an account but show it in the notes to the financial statements. C) No need to record an account But show it in parentheses following the share capital item in the statement of financial position. D) Dr. Share capital (new) xx Cr. Share capital (old) xx. E) Memoirs. Show Answer Correct Answer: E) Memoirs. 21. Jai Jai Company Limited offers shares in a total of 2, 000 units at a price of 525 baht per unit. 1 unit of stock consists of 3 common shares with a value of 100 baht each and 4 preferred shares with a value of 50 baht each. If you do not know both the market price of the common shares and the market price. of preferred shares Which of the following is correct? A) The premium on common shares is equal to 10, 000 baht. B) The premium on common shares is equal to 20, 000 baht. C) The premium on common shares is equal to 30, 000 baht. D) The excess value of preferred shares is equal to 30, 000 baht. E) The excess value of preferred shares is equal to 10, 000 baht. Show Answer Correct Answer: C) The premium on common shares is equal to 30, 000 baht. 22. Journal Entries-Transactions recorded A) 24/7. B) Monthly. C) Year-end. D) None of above. Show Answer Correct Answer: A) 24/7. 23. Prepaid rental costs are recorded in the financial statements, namely: A) Notes to financial reports. B) Cash flow statement. C) Income statement. D) Financial position report. Show Answer Correct Answer: D) Financial position report. 24. Which statement is correct regarding the legal allocation of retained earnings? A) One-tenth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. B) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-twentieth of the company's capital. C) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. D) One-tenth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-twentieth of the company's capital. E) One-twentieth of the income the business earns is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. Show Answer Correct Answer: C) One-twentieth of the profit the business makes is kept as a reserve fund. until the reserve fund reaches one-tenth of the company's capital. 25. What represents the unique value of a company as a whole over and above it's identifiable and intangible? A) Lump-sum purchase. B) Manufactured good. C) Goodwill. D) Intangible asset. Show Answer Correct Answer: C) Goodwill. 26. On 1 Jan. 2020, Jing Jai Company Limited registered 100, 000 common shares with a value of 100 baht per share. 1 Feb. 20 issued 20, 000 common shares at a price based on value. 1 Mar. 20 issued 50, 000 common shares. At a price of 105 baht, which statement is correct regarding accounting recording? On the common stock registration date (1 January 2020) A) Memorandum:Register 100, 000 common shares with a value of 100 baht per share. B) Dr. Unsold common share capital 10, 000, 000 Cr. Common share capital 10, 000, 000. C) Dr. Cash 10, 000, 000 Cr. Common stock capital 10, 000, 000. D) Dr. Cash 10, 000, 000 Cr. Unsold common stock capital 10, 000, 000. E) No recordings are required today. Show Answer Correct Answer: A) Memorandum:Register 100, 000 common shares with a value of 100 baht per share. 27. Land assets Building and equipment How should it appear in the statement of financial position? A) Price-Accumulated Depreciation. B) Book value-Accumulated depreciation-Allowance for impairment (if any). C) Fair price-accumulated depreciation. D) Cost price-Accumulated depreciation-Allowance for impairment (if any). Show Answer Correct Answer: D) Cost price-Accumulated depreciation-Allowance for impairment (if any). 28. What is the classification according to the period of debt repayment? A) Contingent liabilities. B) Debts that are definite. C) Estimate of debt. D) Current liabilities. Show Answer Correct Answer: D) Current liabilities. 29. Which of the following refers to temporary investment? A) Marketable assets held by an entity by investing in financial assets. To increase the stability of the business. B) Assets that an entity holds for future benefit in the form of a commercial relationship. C) Financial assets in which the business invests By using the remaining cash to invest. The objective is to profit from short-term changes in the price of securities. D) Remaining assets that the business invests in addition to the remaining cash used. which can be sold for profit within 1 year. Show Answer Correct Answer: C) Financial assets in which the business invests By using the remaining cash to invest. The objective is to profit from short-term changes in the price of securities. 30. If residual value at the end of the lease term is lower than the amount guaranteed by the lessee, it is recognized as loss in the books of the lessor. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . ← 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