This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 19 (15 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Statement 1:All directly atributable cost related to the issuance of the financial liability shall be added to the fair value.Statement 2:Financial liability as expressed in PFRS 9 par. 5.1.1 provides that it shall be measured at amortized cost at subquent dates. A) Both statements are true. B) Both statements are false. C) Statement 1 is true. D) Statement 2 is true. Show Answer Correct Answer: D) Statement 2 is true. 2. The existence of a residual value guarantee indicates that the lease does NOT have a bargain purchase option nor a provision for transfer of title. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. A company issued 6, 000 shares of Rs. 10 each money to be called up:-On application Rs. 3 on allotment Rs. 3 on first call Rs. 2 and remaining on second call. On allotment one shareholders having 100 shares paid full amountThe amount collected on allotment ..... A) 18, 400. B) 18, 600. C) 12, 000. D) 18, 000. Show Answer Correct Answer: A) 18, 400. 4. On July 1, 2017, Rio Corporation acquires 2, 000 shares (10% ownership) of Beal Corporation common stock. Sanchez pays $ 40 per share. The entry for the purchase is: A) Dr. Cash $ 80, 000Cr. Stock Investments $ 80, 000. B) Dr. Stock Investment $ 80, 000Cr. Cash $ 80, 000. C) Dr. Cash $ 8, 000Cr. Stock Investment $ 8, 000. D) Dr. Stock Investment $ 8, 000Cr. Cash $ 8, 000. Show Answer Correct Answer: B) Dr. Stock Investment $ 80, 000Cr. Cash $ 80, 000. 5. Grant, Inc. had 50, 000 shares of treasury stock (P10 par value) at December 31, 2022, which it acquired at P12 per share. On June 4, 2023, Grant issued 25, 000 treasury shares to employees who exercised options under Grant's employee stock option plan. The market value per share was P13 at December 31, 2022, P15 at June 4, 2023, and P18 at December 31, 2023. The stock options had been granted for P13 per share. The cost method is used. What is the balance of the treasury stock on Grant's balance sheet at December 31, 2023? A) P300, 000. B) 000000000000000000000000'000. C) P175, 000. D) Bahh, 000. Show Answer Correct Answer: A) P300, 000. 6. Repayment of Accounts Payable will: A) Increase assets and reduce debt. B) Reducing assets and increasing debt. C) Reduce assets and reduce debt. D) Adding assets and increasing debt. Show Answer Correct Answer: C) Reduce assets and reduce debt. 7. On July 1, Patrick issues a $ 202, 000, four-month, zero-interest-bearing note to US National Bank. The present value of the note is $ 150, 000. What is the journal entry to record this transaction? A) Dr. Notes payable $ 202, 000Cr. Cash $ 150, 000Cr. Discount on notes payable $ 52, 000. B) Dr. Notes payable $ 150, 000Dr. Cash $ 52, 000Cr. Discount on notes payable $ 202, 000. C) Dr. Cash $ 150, 000Dr. Discount on notes payable $ 52, 000Cr. Notes payable $ 202, 000. D) Dr. Discount on notes payable $ 202, 000Cr. Notes payable $ 150, 000Cr. Cash $ 97, 000. E) Dr. Cash $ 202, 000Cr. Discount on notes payable $ 52, 000Cr. Notes payable $ 150, 000. Show Answer Correct Answer: C) Dr. Cash $ 150, 000Dr. Discount on notes payable $ 52, 000Cr. Notes payable $ 202, 000. 8. Accounting for goods on transit for inventory owner ship depends on A) Reduction of purchases. B) If buyers is not found. C) Ownership of goods. D) If buyer is found. Show Answer Correct Answer: C) Ownership of goods. 9. A company might decide to construct an asset for its own use rather than buy on existing one. What is this? A) Revenue expenditure. B) Self Constructed Assets. C) Capital expenditure. D) Operating expenditure. Show Answer Correct Answer: B) Self Constructed Assets. 10. What is the exclusive right to manufacture a product or to use a process? A) Treaty. B) Contract. C) Monopoly. D) Patent. Show Answer Correct Answer: D) Patent. 11. Requires that companies also disclose total liabilities of its reportable segments along with the rest of the items required. A) IFRS. B) U.S. GAAP. Show Answer Correct Answer: A) IFRS. 12. Recognizes revenue when the customer has paid us, and expenses when we have paid something A) Cash Basis. B) Accrual Basis. Show Answer Correct Answer: A) Cash Basis. 13. Which of the following is considered research and development costs? A) Laboratory research aimed at discovery of new knowledge. B) Application of research findings or other knowledge to a plan or design for a new product process. C) Conceptual formulation and design of possible product of process alternatives. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. A company may retire plant assets voluntarily or dispose of them by: A) Sale. B) Involuntary conversion. C) None of the above. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. Stock dividends increase total shareholders' equity. A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousRelated 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