Intermediate Accounting Test Bank
Course Introduction
Intermediate Accounting delves into the core concepts, principles, and standards that govern the preparation and presentation of financial statements. Building upon fundamental accounting knowledge, the course explores complex topics such as revenue recognition, inventory valuation, fixed assets, intangible assets, and liabilities. Emphasis is placed on the interpretation and application of Generally Accepted Accounting Principles (GAAP), as well as the analysis of financial reports to support decision-making by stakeholders. This course equips students with the analytical and technical skills required for higher-level accounting studies and professional practice.
Recommended Textbook
Horngren's Accounting Volume 2 10th Canadian Edition by Tracie L. Miller Nobles
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7 Chapters
1392 Verified Questions
1392 Flashcards
Source URL: https://quizplus.com/study-set/3557 Page 2
Chapter 1: Partnerships
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202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/70622
Sample Questions
Q1) Refer to Table 12-12.Determine the capital balances of Ruben Ho and Clay Runnerup,on December 31,2017,after the completion of their first year of operations.
Answer: Ruben Ho,capital balance on December 31,2017
$157,000 + $18,800 - $20,000 = $155,800
Clay Runnerup,capital balance on December 31,2017
$192,000 + $28,200 - $20,000 = $200,200
Q2) Refer to Table 12-13.Assuming that the business earns $35,000,allocate the income to Burns and Allan.
Answer: 11ea8586_2da5_2206_a31f_bf34ab60a04c_TB5022_00
Q3) When a new partner investing in a partnership receives an equity interest greater than the size of their investment the assets of the partnership must be adjusted upward.
A)True
B)False Answer: False
Q4) Partnerships have tax advantages over proprietorships.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Corporations: Share Capital and the Balance Sheet
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180 Verified Questions
180 Flashcards
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Sample Questions
Q1) Dividends were not declared by Royal Inc.in 2015 or 2016.During 2017,total dividends declared amount to $20,000.There are 6,000 shares of $1 cumulative preferred shares outstanding and 10,000 common shares outstanding.The total amount of dividends payable to each class of shares in 2017 amounts to:
A) $18,000 to preferred, $2,000 to common
B) $6,000 to preferred, $14,000 to common
C) $12,000 to preferred, $8,000 to common
D) $10,000 to preferred, $10,000 to common
Answer: A
Q2) Your friends have come to you for advice.They are starting a landscaping business and are confused about which organizational structure to choose - partnership or corporation.What structure would you recommend? Support your recommendation by discussing the advantages and disadvantages of both of these organizational structures.
Answer: Students should select one-partnership or corporation-and then draw on the advantages and disadvantages of each organizational structure to support their recommendation.
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Page 4
Chapter 3: Corporations: Retained Earnings and the
Income Statement
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205 Verified Questions
205 Flashcards
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Sample Questions
Q1) A corporation repurchases 2,000 of its common shares initially issued for $10 per share for $12 per share.This transaction will:
A) decrease total shareholders' equity by $4,000
B) decrease common shares by $24,000
C) decrease total shareholders' equity by $24,000
D) have no effect on total shareholders' equity
Answer: C
Q2) When a company sells a piece of equipment used in the business,the gain or loss on the disposal is shown as:
A) an extraordinary item
B) part of discontinued operations
C) other gains and losses
D) an adjustment to the beginning balance of retained earnings
Answer: C
Q3) When a corporation has discontinued operations,it has a separate earnings per share amount for the discontinued operations.
A)True
B)False
Answer: True
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Chapter 4: Long-Term Liabilities
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186 Verified Questions
186 Flashcards
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Sample Questions
Q1) Serial bonds mature in installments at regular intervals.
A)True
B)False
Q2) The effective interest method of amortization keeps each interest expense amount at the same percentage of the bond's carrying value for every interest payment over the bond's life.
A)True
B)False
Q3) Refer to Table 15-1.The entry to record the issuance of the bonds at maturity value plus accrued interest on August 1,2017,includes a:
A) debit to Cash for $1,000,000
B) credit to Interest Payable for $12,500
C) debit to Interest Expense for $37,500
D) credit to Bonds Payable for $1,012,500
Q4) A $1,000 bond quoted at 97.75 is selling for:
A) $970.75
B) $907.75
C) $977.50
D) $973.40
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Chapter 5: Investments and International Operations
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191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/70626
Sample Questions
Q1) Which of the following statements is correct?
A) Under International Financial Reporting Standards (IFRS), consolidated financial statements are required when there is a controlling interest.
B) Under Accounting Standards for Private Enterprises (ASPE), consolidated financial statements are required when there is a controlling interest.
C) Under International Financial Reporting Standards (IFRS), a subsidiary's results can be accounted for using the equity method.
D) When there is a controlling interest, consolidation is preferable but not required under both International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE).
Q2) When the equity method is used to account for a share investment,dividends received are recorded as a reduction to the investment account and the investor's share of income reported by the investee is treated as an increase in the investment account.Explain why this is done.
Q3) Described what is meant by a strong or weak currency.Explain two underlying reasons why currencies change in relation to each other.
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Chapter 6: The Cash Flow Statement
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207 Verified Questions
207 Flashcards
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Sample Questions
Q1) Cash payments to suppliers equals purchases plus the decrease in accounts payable.
A)True
B)False
Q2) The Accounting Standards Board prefers the use of the indirect format of the cash flow statement.
A)True
B)False
Q3) Hailey Beach Resort reports beginning property,plant,and equipment,net of amortization,of $645,000 and an ending amount of $732,500.The income statement shows amortization of $48,300 and a $5,600 loss on sale of property,plant,and equipment.Patton Park acquired $213,000 of property,plant,and equipment during the year.The cash received from the sale of property,plant,and equipment is:
A) $125,500
B) $71,600
C) $82,800
D) $77,200
Q4) An expense account that does not represent a cash outflow
Q5) ASPE cash flow statement classification of dividend payments
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Chapter 7: Financial Statement Analysis
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214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/70628
Sample Questions
Q1) Assume a company has a current ratio of 1.5 and working capital equal to $25,000.Total current liabilities are equal to:
A) $50,000
B) $37,500
C) $75,000
D) $22,500
Q2) Refer to Table 18-4.What would a horizontal analysis report with respect to current liabilities show?
A) that current liabilities are 38.46% of total capital
B) a 50.00% increase in current liabilities
C) a current ratio of 0.87
D) a 33.33% increase in current liabilities
Q3) Refer to Table 18-2.If net sales increased 15%,and cost of goods sold increased 20%,gross margin would:
A) increase 10%
B) decrease 15%
C) increase 20%
D) decrease 10%
Q4) Ratio of income from operations to interest expense
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