This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The company's ledger at 30 April 20X8 shows a balance in the bank of Rp. 2, 490, 000. A comparison with the bank statement on the same date shows the following differences:The ledger balance at 30 April 20X8 is: A) Rp1.930.000. B) Rs 2, 580, 000. C) Rp3.140.000. D) Rs 2, 300, 000. Show Answer Correct Answer: D) Rs 2, 300, 000. 2. Going Concern is..... A) The company carries out its activities separately from those of its owners and other business units. B) Transactions are recorded in the period in which they occur. C) Companies can divide their economic activities into several periods. D) Companies can survive long enough to fulfill their goals and commitments. Show Answer Correct Answer: D) Companies can survive long enough to fulfill their goals and commitments. 3. Company bills to customers as a result of the sale of goods or services on credit, generally with a maturity of less than one year, are recorded in the account..... A) Account receivable. B) Notes receivable. C) Account payable. D) Sales. E) Purchases payment. Show Answer Correct Answer: A) Account receivable. 4. Which of the following statements about stocks is FALSE? A) Every companies must have preferred shareholders. B) Every companies must have shareholders. C) Public companies have many shareholders. D) Not all public companies are listed in the stock exchange. Show Answer Correct Answer: A) Every companies must have preferred shareholders. 5. Suppose a company has net income of THB 1, 500 million with 500 million shares outstanding. If its PE ratio is 16x, its price is: A) 16.00. B) 48.00. C) 3.00. D) 24.00. Show Answer Correct Answer: B) 48.00. 6. Replenishment of petty cash funds which is not determined the same for each period is called the...... method. A) Imprest fund system'. B) Fluctuation fund system'. C) Petty cash record. D) Petty cash fund. E) Petty cash voucher. Show Answer Correct Answer: B) Fluctuation fund system'. 7. Conceptually, a short term note payable with no stated rate of interest should be A) Recorded separately from other short-term notes payable. B) Recorded at the face amount. C) Discounted to its present value. D) Recorded at maturity value. Show Answer Correct Answer: B) Recorded at the face amount. 8. It is a business owned by its stockholders. A) Cooperative. B) Partnership. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: D) Corporation. 9. What does an outstanding check mean? A) Checks made by the business and recorded in the account. But the recipient has not yet cashed the money at the bank. B) Checks that the recipient cannot withdraw money from the bank. C) Check the bank returns to the business. D) Checks that the business has not yet given to outsiders. Show Answer Correct Answer: A) Checks made by the business and recorded in the account. But the recipient has not yet cashed the money at the bank. 10. The cost of an item of fixed assets is only recognized if the cost of the item can be reliably measured and if: A) It is probable that future economic benefits will flow to the entity. B) It has been paid for in cash. C) It is not directly attributable to the asset. D) The item has been received by the acquirer. Show Answer Correct Answer: A) It is probable that future economic benefits will flow to the entity. 11. What is maintaining given level of benefits? A) Purchasing. B) Saving. C) Improvements. D) Expensing. Show Answer Correct Answer: D) Expensing. 12. The ability of a company to convert its assets to cash A) Long-term solvency. B) Liquidity. Show Answer Correct Answer: B) Liquidity. 13. 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 and sold additional 20, 000 shares. 1 Jul. Purchased 39, 000 capital shares back. 1 Nov. September issued an additional 60, 000 shares. What is the weighted average number of common shares? A) 105, 000 shares. B) 155, 000 shares. C) 105, 500 shares. D) 150, 000 shares. E) 155, 500 shares. Show Answer Correct Answer: C) 105, 500 shares. 14. X ltd. Forfeited 1, 000 shares of Rs. 10 each for the non-payment of final call of Rs. 2. The account will be debited for called up price of a share at the time of forfeiture of shares: A) Share Forfeiture A/c. B) Share Capital A/c. C) Share Final Call A/c. D) None of these. Show Answer Correct Answer: B) Share Capital A/c. 15. Represents changes in the RE component of shareholder' equity caused by revenue, expense, gain, loss, and dividend transactions. Balances are closed or zeroes out-closing process A) Permanent Accounts. B) Temporary Accounts. Show Answer Correct Answer: B) Temporary Accounts. 16. Sincere 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 the market price of the common shares is equal to 105 baht and not Know the market price of preferred stocks. Surplus of preferred shares equal to how much A) 50, 000 baht. B) 30, 000 baht. C) 20, 000 baht. D) 10, 000 baht. E) There is no premium on preferred shares. Show Answer Correct Answer: C) 20, 000 baht. 17. Tyren Advertising Agency performed web design and brochure services for 2 clients on August 15th. Tyren invoiced Carter Company $ 2, 700 and was paid in cash. Tyren also invoiced Pro-Seal Lift Systems $ 3, 200, giving Pro-Seal 30 days to pay in full. If Tyren Advertising Agency uses Accrual Accounting, which of the following is true? A) Service Revenue will be credited $ 5, 900 on August 15th. B) Service Revenue will be debited $ 2, 700 on August 15th. C) Service Revenue will be debited $ 5, 900 on August 15th. D) Service Revenue will be credited $ 3, 200 on August 15th. Show Answer Correct Answer: A) Service Revenue will be credited $ 5, 900 on August 15th. 18. Which of the following refers to non-current assets? A) Insurance premiums paid in advance. B) Debtors and notes receivable. C) Land, buildings and equipment. D) Cash and bank deposits. Show Answer Correct Answer: C) Land, buildings and equipment. 19. Physical flow of inventory like grocery stores. Getting the oldest inventory out first A) FIFO. B) LIFO. Show Answer Correct Answer: A) FIFO. 20. The following is the company's trial balance at the end of its financial year at 31 December 20X7:Calculate the cost of goods sold for the period A) IDR 294 million. B) IDR 343 million. C) IDR 304 million. D) IDR 297 million. Show Answer Correct Answer: D) IDR 297 million. 21. Convey additional insights A) Parenthetical comments (modifying comments). B) Disclosure notes. C) Supplemental schedules and tables. D) None of above. Show Answer Correct Answer: B) Disclosure notes. 22. During 2022, Pharsa Company experienced severe business downfall and is likely to default on a 10 million, 8% 4 year note dated January 1, 2021 payable to Xavier Bank.On December 31, 2022, the bank agreed to settle the note and unpaid interest for P 8, 100, 000 cash payable on January 2023.How much is the unpaid interest as of December 31, 2022? A) 760, 000. B) 800, 000. C) 740, 000. D) 820, 000. Show Answer Correct Answer: B) 800, 000. 23. Good/service can be used alone or with other goods that can be obtained elsewhere A) Capable of being distinct. B) Separately Identifiable. Show Answer Correct Answer: A) Capable of being distinct. 24. On 30 June 20X1 PT CARA has decided to write off two receivables amounting to Rp. 1, 300, 000 and Rp. 2, 150, 000 respectively and to make a special provision of Rp. 6, 631, 000. The allowance balance on 1 July 20X0 was IDR 8, 540, 000. What was the bad debts expense for the period up to 30 June 20X1? A) Rp3.450.000. B) Rp1.909.000. C) Rp1.541.000. D) Rp5.359.000. Show Answer Correct Answer: C) Rp1.541.000. 25. Memphis Corp. is a large soft drink bottler thatrequires new bottling equipment. After negotiatingwith several suppliers, Memphis decided to accept aspecial offer from Gasol Corporation. Gasol willdeliver the equipment with a list price of P100, 000 toMemphis on July 1, 2020 with the following paymentterms:* A deposit of P20, 000 is due on June 1, 2020.* Cash on delivery of P20, 000 is due on July 1, 2020.* Three additional payments are to be madeannually from July 1, 2021 to July 1, 2023 ofP20, 000.* Gasol will waive its normal interest charge of 6%per year to facilitate the sale.The equipment is expected to last 5 years, with aresidual value of P20, 000. Memphis has a December31 year end. What should be the depreciation expensefor the year ended 31 December 2020? A) P14, 692. B) P7, 346. C) P8, 570. D) P 9, 346. Show Answer Correct Answer: B) P7, 346. 26. Information presented before it loses its ability to influence decisions is called..... A) Timelines. B) Comparability. C) Understandability. D) Completeness. Show Answer Correct Answer: A) Timelines. 27. What is the exclusive right of protection given to a creator of a published good? A) Patent. B) Copyright. C) Goodwill. D) Contract. Show Answer Correct Answer: B) Copyright. 28. If, at the end of a period, a company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause: A) The ending inventory and retained earnings to be understated. B) The ending inventory, cost of goods sold, and retained earnings to be understated. C) No effect on net income, working capital, and retained earnings. D) Cost of goods sold and net income to be understated. Show Answer Correct Answer: C) No effect on net income, working capital, and retained earnings. 29. When amortizing a premium or discount bond uses effective interest, the periodic amortization will A) Increases if the bond is issued at a premium. B) Decreases if the bond is issued at a premium. C) Increases whether bonds are issued at a premium or discount. D) Increases if the bond is issued at a discount. Show Answer Correct Answer: C) Increases whether bonds are issued at a premium or discount. 30. What are salaries, wages, and other labor costs of R&D personnel, materials consumed, equipment, facilities, and intangibles? A) Overhead Allocation. B) R and D Costs. C) Goodwill. D) Patent. Show Answer Correct Answer: B) R and D Costs. ← 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