This quiz works best with JavaScript enabled. Home > Finance > Accounting > Intermediate Accounting > Intermediate Accounting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Intermediate Accounting Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the event that the subscriber fails to pay for the shares According to Thai law, what does a company do regarding confiscated shares? A) Forfeit part of all monies already paid. B) Issue shares equal to the amount already paid. C) Refund to forfeited shareholders the amount received after deducting losses and expenses incurred from the resale of shares. D) Refund to forfeited shareholders equal to the amount received. E) The company can choose to choose any one method. And you must use that method regularly. Show Answer Correct Answer: C) Refund to forfeited shareholders the amount received after deducting losses and expenses incurred from the resale of shares. 2. The entity when preparing the consolidated financial statements eliminates transactions that occur between the subsidiary and the parent company. What assumptions underlie the accounting treatment? When preparing consolidated financial statements, an entity eliminates transactions that occur between subsidiaries and parent companies. What assumptions underlie this accounting treatment? A) Going concern. B) Entity. C) Periodicity. D) Accrual. Show Answer Correct Answer: B) Entity. 3. Tory Manufacturing Co. ships merchandise costing $ 42, 000 on consignment to Kelly Stores. Tory pays $ 4, 500 of freight costs, and Kelly pays $ 2, 500 for local advertising costs that reimbursable from Tory. By the end of the period, Kelly has sold two-thirds of the consigned merchandise for $ 46, 000 cash. What is the journal entry at Tory to record the shipment of consigned merchandise? A) Dr. Finished Goods Inventory $ 46, 000Cr. Inventory on Consignment $ 46, 000. B) No entry. C) Dr. Inventory on Consignment $ 42, 000Cr. Finished Goods Inventory $ 42, 000. D) Dr. Inventory on Consignment $ 46, 000Cr. Finished Goods Inventory $ 46, 000. E) Dr. Finished Goods Inventory $ 42, 000Cr. Inventory on Consignment $ 42, 000. Show Answer Correct Answer: C) Dr. Inventory on Consignment $ 42, 000Cr. Finished Goods Inventory $ 42, 000. 4. Which of the following is considered cash according to accounting meaning? A) Banknotes and coins. B) Bank draft. C) Order. D) All correct. Show Answer Correct Answer: D) All correct. 5. Ending Inventory equation (CGS) A) Beginning Inventory-Purchases + CGS = Ending Inventory. B) Beginning Inventory + Purchases + CGS = Ending Inventory. C) Beginning Inventory + Purchases-CGS = Ending Inventory. D) Beginning Inventory-Purchases = Ending Inventory. Show Answer Correct Answer: C) Beginning Inventory + Purchases-CGS = Ending Inventory. 6. What is consigned inventory? A) Goods that are shipped, but title transfers to the receiver. B) Goods that are sold, but payment is not required until the goods are sold. C) Goods that are sold, but payment is not required until the goods are sold. D) None of above. Show Answer Correct Answer: B) Goods that are sold, but payment is not required until the goods are sold. 7. A company's business activities with regards to cash receipts and payments are divided up between Operating, Investing, and Financing. Which of the following is considered Operating? A) Outflow of cash for dividends paid to a stockholder. B) Outflow of cash for payment on an Insurance policy. C) Inflow of cash from the sale of an old factory. D) Outflow of cash for payment on a Note Payable. Show Answer Correct Answer: B) Outflow of cash for payment on an Insurance policy. 8. On March 1, 20X7, the company received cash amounting to Rp. 80, 000, 000 for services to be performed in April 20X7. The journal entry for the above transaction is A) Cash (D)Unearned Service Revenue (K)80 million. B) Cash (D)Service Revenue (K)80 million. C) Debt (D)Unearned Service Revenue (K)80 million. D) Debt (D)Service income (K)80 million. Show Answer Correct Answer: A) Cash (D)Unearned Service Revenue (K)80 million. 9. Which is not a criterion for measuring value? A) Original cost (Historical Cost). B) Settlement Value. C) Lowest value. D) Current Cost. Show Answer Correct Answer: C) Lowest value. 10. Government policy stating that companies are justified in changing their inventory valuation method to the LIFO method because devaluation is policy: A) Banking. B) Stock Exchange. C) Government Accounting. D) Taxation. Show Answer Correct Answer: D) Taxation. 11. Goods that are purchased primarily in finished form and retailersCosts include:Purchase Price plus any other cost necessary to get goods un condition and location for sale A) Merchandising Inventory. B) Manufacturing Inventory. Show Answer Correct Answer: A) Merchandising Inventory. 12. Which statement is most accurate regarding partnership accounting? A) Establishment of a partnership Partners must always record assets and liabilities at cost. B) Withdrawals for personal use will always increase your capital. C) Establishment of a partnership Partners must always record assets and liabilities at fair value. D) All correct. Show Answer Correct Answer: C) Establishment of a partnership Partners must always record assets and liabilities at fair value. 13. Lease term can be measured with the following, EXCEPT: A) Periods of time. B) Production units. C) None of the above. D) All of the above. Show Answer Correct Answer: C) None of the above. 14. Which are the assumptions in the PSAK conceptual framework? A) Accrual. B) Relevance. C) Substance over form. D) Economics Units. Show Answer Correct Answer: A) Accrual. 15. The right of shareholders to have the first opportunity to buy new shares issued by the company is called: A) Profit sharing rights. B) Voting rights. C) The right to pay attention to the proportion of share ownership. D) Capital deposit rights. Show Answer Correct Answer: C) The right to pay attention to the proportion of share ownership. 16. What does a returned check mean? A) A check that the business pays to another person and that person returns it to the business. B) A check that the business lost and then someone picked it up and returned it to me. C) Checks that the business paid to others and were returned by the bank because there was not enough money in the account to pay. D) Checks made by the business and recorded in the account. But the recipient has not yet cashed the money at the bank. Show Answer Correct Answer: C) Checks that the business paid to others and were returned by the bank because there was not enough money in the account to pay. 17. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. A) Financial Accounting. B) Financial Information. C) Accounting. D) None of the choices. Show Answer Correct Answer: C) Accounting. 18. Which of the following items is not counted as cash? A) Returned check. B) Deposit for air conditioner. C) Capital share certificate. D) All correct. Show Answer Correct Answer: D) All correct. 19. Number of issued shares held by shareholders of the company. Difference between issued ad outstanding arise when a corporation buys back its own shares of stock in the market, referred to as treasury stock A) Authorized Shares. B) Issued Shares. C) Outstanding Shares. D) None of above. Show Answer Correct Answer: C) Outstanding Shares. 20. Tanger Mining Corp. purchased the rights to a property in North America to mine for copper. The engineers estimate that a payment for the restoration of the property will need to be made at the end of the project, and that it has the following probable future outcomes:$ 200, 000 (40%), $ 400, 000 (60%). The present value of $ 1 factor for Tanger's 5 year project and risk-free interest rate of 3% is.86261. Which of the following will be the credit to the Asset Retirement Liability at the time of estimate? A) 517, 566. B) 370, 967. C) 276, 035. D) 320, 000. Show Answer Correct Answer: C) 276, 035. 21. Accrued interest on notes receivable is presented: A) On the balance sheet as debt. B) In profit and loss it goes to operating expenses. C) In profit and loss add to the cost of goods sold. D) On the balance sheet as an asset. Show Answer Correct Answer: D) On the balance sheet as an asset. 22. Rock Company had a balance Accounts Receivable of $ 180, 000, Allowance for Doubtful Accounts of $ 4, 000, Sales (all on credit) of $ 600, 000, and Sales return and allowances of $ 40, 000. What is the journal entry if Rock estimates bad debts at 2% of net sales? A) Dr. Bad debt expense $ 12, 000Cr. Allowance for doubtful accounts $ 12, 000. B) Dr. Bad debt expense $ 11, 200Cr. Allowance for doubtful accounts $ 11, 200. C) Dr. Bad debt expense $ 12, 800Cr. Allowance for doubtful accounts $ 12, 800. D) Dr. Allowance for doubtful accounts $ 11, 200Cr. Bad debt expense $ 11, 200. E) None of these. Show Answer Correct Answer: B) Dr. Bad debt expense $ 11, 200Cr. Allowance for doubtful accounts $ 11, 200. 23. Requires companies to report information about reported segment profit or loss, including certain revenues and expenses, segment assets, and the basis of measurement A) IFRS. B) U.S. GAAP. Show Answer Correct Answer: B) U.S. GAAP. 24. Lower of cost or market.Only used on LIFO or Inventory Market Value A) LCM. B) LCNRV. Show Answer Correct Answer: A) LCM. 25. Assumes units last acquired are sold first A) Specific Identification method. B) FIFO (First In, First Out). C) LIFO (Last in, First Out). D) Average Cost. Show Answer Correct Answer: C) LIFO (Last in, First Out). 26. "Gains" from the sale of treasury shares (using the cost method) should be credited to A) Retained earnings. B) Share premium-treasury. C) Share capital. D) Other income. Show Answer Correct Answer: B) Share premium-treasury. 27. If NRV is lower than cost A) Reduce inventory from its already recorded purchase cost to the lower NRV. B) No adjusting entry needed. Show Answer Correct Answer: A) Reduce inventory from its already recorded purchase cost to the lower NRV. 28. Which of the following is accounted for as a change in accounting principle? A) A change in the estimated useful life of plant assets. B) A change from the cash basis of accounting to the accrual basis of accounting. C) A change from expensing immaterial expenditures to deferring and amortizing them as they become material. D) A change in inventory valuation from average cost to FIFO. Show Answer Correct Answer: D) A change in inventory valuation from average cost to FIFO. 29. In public companies, it is mandatory to include Earnings per Share in the profit and loss report. This statement..... A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 30. It refers to transactions and events of a business that can be measured in terms of money. A) Financial Accounting. B) Financial Information. C) Accounting. D) None of the choices. Show Answer Correct Answer: B) Financial Information. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesIntermediate Accounting Quiz 1Intermediate Accounting Quiz 2Intermediate Accounting Quiz 3Intermediate Accounting Quiz 5Intermediate Accounting Quiz 6Intermediate Accounting Quiz 7Intermediate Accounting Quiz 8Intermediate Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books