ACC/422 Intermediate Financial Accounting II final Multiple choice quiz A+

ACC/422 Intermediate Financial Accounting
Intermediate Accounting, 12th Edition
Donald E. Kieso
acc 422 acc422 "intern acct" intern acct

1) Which of the following is NOT considered cash for financial reporting purposes?

A.Coin, currency, and available funds
B.Postdated checks and I.O.U.'s
C.Petty cash funds and change funds
D.Money orders, certified checks, and personal checks

2) Which of the following is considered cash?
A.Money market savings certificates
B.Postdated checks
C.Certificates of deposit (CDs)
D.Money market checking accounts

3) Which of the following items should NOT be included in the Cash caption on the balance sheet?
A.Amounts on deposit in checking account at the bank
B.Postage stamps on hand
C.Coins and currency in the cash register
D.Checks from other parties presently in the cash register

4) Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense?
A.A percentage of accounts receivable NOT adjusted for the balance in the allowance
B.An amount derived from aging accounts receivable and NOT adjusted for the balance in the allowance
C.A percentage of sales adjusted for the balance in the allowance
D.A percentage of sales NOT adjusted for the balance in the allowance

5) If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as
A.a deduction from accounts receivable in determining the net realizable value of accounts receivable.
B.sales discounts forfeited in the cost of goods sold section of the income statement.
C.a deduction from sales in the income statement. item of "other expense" in the income statement.

6) Which of the following methods of determining annual bad debt expense best achieves the matching concept?
A.Percentage of average accounts receivable
B.Direct write-off
C.Percentage of sales
D.Percentage of ending accounts receivable

7) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inven¬tory results in overstatement of assets and net income. understatement of liabilities and an overstatement of owners' equity. understatement of cost of goods sold and liabilities and an overstatement of assets. understatement of assets and net income.

8) Valuation of inventories requires the deter¬mination of all of the following EXCEPT
A.the costs to be included in inventory.
B.the cost flow assumption to be adopted.
C.the cost of goods held on consign¬ment from other companies.
D.the physical goods to be included in inventory.

9) If the beginning inventory for 2006 is overstated, the effects of this error on cost of goods sold for 2006, net income for 2006, and assets at December 31, 2007, respectively, are
A.overstatement, understatement, overstatement.
B.understatement, overstatement, no effect.
C.understatement, overstatement, overstatement.
D.overstatement, understatement, no effect.

10) Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?
A.Average cost
B.Base stock
C.Last-in, first-out
D.First-in, first-out
ACC/422 Intermediate Financial Accounting