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Final review most missed questions

most missed questions on test 1-4
Course

Intermediate Accounting I (ACC 301)

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acc 317IAcc1 finals

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Test 1 Most missed What was service Revenue? 300,000- 40,000 (A/R)+ 70,000-10,000= 320, Body that has power to prescribe/ enforce accounting practices and standards SEC Assumption not followed when a company goes into bankruptcy Going Concern

  1. Which of the following is not a major challenge for accounting? Accounting for hard assets
  2. Which of the following is not a financial reporting objective? Provide information on liquidation of enterprise
  3. GAAP: derives credit and authority from general recognition and acceptance by accounting profession
  4. Decrease in net assets arising from peripheral or incidental transactions is : loss
  5. What is is called when information about 2 different enterprises has been prepared and presented similarly: none of above
  6. Going concern principle: may not be followed when firm in bankruptcy report financial results
  7. Which is not a statement by GAAP: Accounting research done by AICPA
  8. Underlying theme of conceptual framework is: Decision usefulness
  9. Relevance and faithful reporting: make accounting information useful for decisions
  10. Information is neutral if: free from bias toward predetermined results
  11. Nominal Accounts: Temporary Accounts
  12. Accounting equation remains in balance: throughout each step in cycle
  13. Which is a recordable event: none of these
  14. Which would cause an imbalance in trial balance: list balance of accounts with debit in credit column
  15. Which is an accrued expense: property taxes incurred during the year but paid in first quarter of next year
  16. Failure to properly record adjusting entry to accrue an expense would result in: understatement of expenses and liabilities
  17. Failure to properly record adjusting entry to accrue a revenue would result in: understatement of revenue and assets
  18. The prepaid expenses below expire when: Rent=>time passage, Supplies=>usage
  19. Prepaid expense: paid now and not currently matched with revenue
  20. What is always debited in closing entries: revenue

Test

1. Which is true? (a.)

a. Income Statements are for a period of time and Balance Sheets are for a

specific point in time

b. Balance Sheets are for a period of time and Income Statements are for a

specific point in time

c. Income Statements and Balance Sheets are both for a period of time

d. Income Statements and Balance Sheets are both for a specific point in

time

2. The amount invested now at a given rate of interest to produce given future amount:

(a.)

a. Present Value

b. Present Value of an Ordinary Annuity

c. Future Value

d. Future Value of an Ordinary Annuity

3. Which is found in the long term investment section of the Balance Sheet? (c.)

a. Machinery

b. Goodwill

c. Land held for speculation

d. Inventory

4. Equity/Debt Securities held to finance future construction of additional plants on the

Balance Sheet: (d.)

a. Current Assets

b. Property, Plant, Equipment

c. Intangible Assets

d. Long Term Investments

5. Discounted amount of a series of equal payments at the end of equal-length time

periods: (b.)

a. Present Value

b. Present Value of an Ordinary Annuity

c. Future Value

d. Future Value of an Ordinary Annuity

6. If JKL Company bought land in 1964 for $120,000, the market value of the land is

$275,000, the Property Tax value of the land is $200,000, and there was an offer last

year to purchase the property for $150,000. What amount should be recorded on the

Balance Sheet?

($120,000)

13. On the Statement of Cash Flows, cash flows from operating activities can be

calculated by: (b.)

a. Adding/deducting from net income those items in the income statement that

affect cash

b. Adding/deducting from net income those items in the income statement that do

not affect cash

c. Adding/deducting from cash those items on the balance sheet that affect income

d. Adding/deducting from cash those items on the balance sheet that do not affect

income

14. Cash Debt Coverage Ratio is computed by dividing “net cash from operating

activities” by: (a.)

a. Average total liabilities

b. Average total assets

c. Average current liabilities

d. Average current assets

e. None of these

15. A company has the following account balances: (c.)

Sales $120,

COGS $60,

Salaries Expense $10,

Depreciation Expense $20,

Dividend Revenue $4,

Utilities Expense $8,

Rental Revenue $20,

Interest Expense $12,

Interest Revenue $11,

Advertising Expense $13,

What is the total revenue?

a. $32,

b. $120,

c. $133,

d. $140,

16. An Income Statement contains the following information: “income before taxes

and discontinued operations”: $2,055,000, income taxes payable: $1,080,000—which

includes $360,000 from gains from discontinued operations. What is “income before

discontinued operations/income from continued operations”? (d.)

a. $2,055,

b. $360,

c. $1,080,

d. $615,

17. Austria Company has the following: Common Stock: $720,000, Treasury Stock:

$85,000, Deferred Taxes: $100,000, Retained Earnings: $363,000. What is

Stockholders’ Equity? (b.)

a. $363,

b. $998,

c. $1,063,

d. $1,268,

18. Hark Corporation has discontinued operations loss of $50,000, unusual gains of

$35,000, and a tax rate of 40%. How should the gain and loss be recorded? (c.)

a. (50,000), 35,

b. (50,000), 21,

c. (30,000), 35,

d. (30,000), 21,

19. Cash provided by operating activities: $200, 000

Cash provided by investing activities: ($110,000)

Cash provided by financing activities: $140,

Beginning cash balance: $70,

What is the ending cash balance? a

a. $300,

b. $340,

c. $230,

d. $110,

20. A company had Net Income: $1,000,000, declared and paid Preferred Stock

dividends: $250,000 and Common Stock dividends of $100,000, and a weighted

average of 200,000 common shares outstanding. What is earnings per share? (c.)

a. 1.

b. 2.

c. 3.

d. 4.

21. Net Income: $500,

Depreciation Expense: $140,0 00

Decrease in Accounts Receivable: $60,

What is income from operating activities? (c.)

an accrual basis, to a cash basis

  1. Balance sheet information is useful for all the following except: A) assessing a company’s risk B) evaluating a company’s liquidity C) evaluating a company’s flexibility D) all are useful

  2. The correct order to present assets is: Current assets, long term assets, PPE, intangible assets

  3. The basis for classifying assets as current or noncurrent: the operating cycle or one year, whichever is longer.

  4. If a savings account pays interest at 4% compounding quarterly, then the value of $ left on deposit for 8 years would be found in a table using: 32 periods at 1%

Test 3

  1. Which is true regarding the use of LIFO for inventory valuation? A. None of these

  2. In no case can “market” in the lower of cost or market rule be more than A. Estimated selling price in ordinary course of business less reasonable predictable cost completion and disposal

  3. An item of inventory purchased this period for $15 has been incorrectly written down to its current replacement cost of $10. It sells during the period for $30 with disposal cost of $3 and normal profit of $12. Which of the following statements is not true? A. Income of the following year will be understated

  4. When inventory declines in value below historical cost, and decline is considered other than temporary, what is the maximum amount that the inventory can be value at? A. Net Realizable Value

  5. Inventory may be recorded at net realizable value if A. All of these- a control market with quoted price, no significant cost of disposal, inventory consists of precious metals or agricultural product.

  6. The credit balance that arises when a net loss on a purchase commitment is recognized should be A. Presented as a current liability

  7. Which statement is not true about the gross profit method of inventory valuation? A. It may be used to estimate inventories for annual statements

  8. Inventory method designed to approximate inventory valuation at lower of cost or market is A. Conventional retail method

  9. Company has cash in a bank of $18,000, restricted cash in a separate account of $3,000, and a bank overdraft in another bank of $2,000. The company should report cash of A. $18,

  10. Cost of goods available for sale for value was $1,350,000. The gross profit rate was 30%. Sales were $1,200,000. What is the ending inventory? A. $510,

Cost Retail Beg. Inv. $119,000 $170, Purchases $448,000 $640, Freight-In $12,000 - Net Markup $40, Net Markdown $28, Sales $672,

  1. (Refer to table above) Ending inventory at retail should be A. $150,
  2. If ending inventory is to be valued at approximately the lower of cost or market, calculation of the cost of retail ratio should be based on goods available for sale at (1) cost and (2) retail, of A. $579,000 and $850,
  3. Inventory turnover ratio is computed by dividing the cost of goods sold by A. Average Inventory

Received Cost Issued On Hand Inventory $2 $3, Issue $1,600 $1, Purchase $4,000 $2 $5,

32.(Refer to table above) Moving-Average unit cost of X inventory is A. $2. 33 of the following is not considered cash for financial reporting purposes? A. Postdated checks and I.O’s 34. Bank overdrafts; if material

Test 4 17. Intangible asset goodwill: capitalized only when purchased 18. Machine BV= 190,000 Future Cash flow=125,000 FV=140, Loss on impairment= $50, 19. Entry to record impairment Loss on impairment asset Accum Depr-Asset 20. Exchange of assets, no commercial substance & some cash received. P Comp pays W Comp cash. W recognized gain: determined by proportion of cash received to total consideration 21. Avoidable interest= portion of total interest cost which would have not been incurred if expenditures for asset construction had not been made 22. PPE presented on balance sheet: At historical cost- depreciation portion thereof 23. Machine Price= 250,000 Shipping= 40,000 Testing & Prep=20,000 Maintenance= 20, What is the total cost? $310, 24 Price= 25,000 Legal fees $900. Cost= 25, 25. Indefinite life intangible. What is amortization expense?

$

  1. Assets= 5,000,000 Liabilities= 2,000,000 FV 300,000 greater than BV Price Paid 5,100, Goodwill= 1,800,
  2. Cost of ordinary repairs to equipment charged during year to asset account: Overstate Net Income
  3. January 1, 2010: Patent Cost 5,000,000 10 year straight line amortization. December 31, 2011 Future Cash flows 400,000/year for next 8 years. FV 2,400, amount carried on balance sheet: 2,400,
  4. What is R&D costs? 2,025,000: Materials used, personnel costs, consulting fees, indirect costs
  5. Land price=600,000 Raze=50,000 Legal Fees=10,000 Title Insurance=12,000 proceeds from salvage= Amount on BS reported as land= 664,
  6. Land cost= 600,000. Additional costs: 150,
Lots Sales price/unit

Dancer 100 24, Prancer 100 16, Comet 200 10, What is the cost amount allocated to Dancer lot? 300,

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Final review most missed questions

Course: Intermediate Accounting I (ACC 301)

4 Documents
Students shared 4 documents in this course

University: Missouri State University

Was this document helpful?
Test 1
Most missed
What was service Revenue?
300,000- 40,000 (A/R)+ 70,000-10,000= 320,000
Body that has power to prescribe/ enforce accounting practices and standards
SEC
Assumption not followed when a company goes into bankruptcy
Going Concern
16. Which of the following is not a major challenge for accounting? Accounting for hard assets
17. Which of the following is not a financial reporting objective? Provide information on
liquidation of enterprise
18. GAAP: derives credit and authority from general recognition and acceptance by accounting
profession
19. Decrease in net assets arising from peripheral or incidental transactions is : loss
20. What is is called when information about 2 different enterprises has been prepared and
presented similarly: none of above
21. Going concern principle: may not be followed when firm in bankruptcy report financial results
22. Which is not a statement by GAAP: Accounting research done by AICPA
23. Underlying theme of conceptual framework is: Decision usefulness
24. Relevance and faithful reporting: make accounting information useful for decisions
25. Information is neutral if: free from bias toward predetermined results
26. Nominal Accounts: Temporary Accounts
27. Accounting equation remains in balance: throughout each step in cycle
28. Which is a recordable event: none of these
29. Which would cause an imbalance in trial balance: list balance of accounts with debit in credit
column
30. Which is an accrued expense: property taxes incurred during the year but paid in first
quarter of next year
31. Failure to properly record adjusting entry to accrue an expense would result in:
understatement of expenses and liabilities
32. Failure to properly record adjusting entry to accrue a revenue would result in:
understatement of revenue and assets
33. The prepaid expenses below expire when:
Rent=>time passage, Supplies=>usage
34. Prepaid expense: paid now and not currently matched with revenue
35. What is always debited in closing entries: revenue
Test #2

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