FINANCIAL ACCOUNTING II MsC in MANAGEMET / FINANCE AND ACCOUNTING FINAL EXAM 财务会计代写 INFORMATION 1.The duration of the exam is 2 hours and 30 minutes. 2.The exam must be performed ...View details
FINANCIAL ACCOUNTING II
财务会计考试助攻 1. Which of the following is a characteristic describing the primary quality of relevance? A. Materiality. B. Predictive value. C. Verifiability.
Which of the following is a characteristic describing the primary quality of relevance?
B. Predictive value.
2. If financial accounting information is complete, free from error, and neutral, it can be considered:
D. a faithful representation.
3. The major objective of the quality of comparability is to:
A. provide timely financial information for statement users.
B. promote comparability between financial statements of different accounting periods. Pergunta B estava considerada como correta.
C. enable users to identify the real similarities and differences in economic events between companies.
D. be sure the same information is disclosed in each accounting period.
A prepaid expense can best be described as an amount:
A. Paid and currently matched with revenues.
B. Paid and not currently matched with revenues.
C. Not paid and not currently matched with revenues.
D. Not paid and currently matched with revenues.
5. An accrued expense can best be described as an amount:
A. Paid and not currently matched with revenues.
B. Not paid and currently matched with revenues.
C. Not paid and not currently matched with revenues.
D. Paid and currently matched with revenues.
6. The income statement discloses:
A. resources and equities of a firm at a point in time.
B. resources and equities of a firm for a period of time.
C. net income(profit/loss) of a firm at a point in time.
D. net income(profit/loss) of a firm for a period of time.
7. When a manufacturing company sells one of its plant assets at a price in excess of its book value it should recognize
A. No Revenue and a gain
B. No Revenue and no gain
C. A Revenue, but not a gain
D. A Revenue and a gain
The Statement of Financial Position (balance sheet) contributes to financial reporting by providing a basis for all of the following except:
A. computing rates of return.
B. evaluating the capital structure of the enterprise.
C. determining the increase in cash due to operations.
D. assessing the liquidity and financial flexibility of the enterprise.
9. One of the main reasons for separating liabilities into current and long-term is:
A. to provide decision makers with information regarding liabilities claim ranges.
B. to separate large and small debts.
C. to separate capital into its component parts.
D. to separate total equity into its two basic parts.
10. The statement of cash flows provides answers to all of the following questions except:
A. Where did the cash come from during the period?
B. What was the cash used for during the period?
C. What is the impact of inflation on the cash balance at the end of the year?
D. What was the change in the cash balance during the period?
Which of the following would not be considered a basic source of information useful in preparing a statement of cash flows?
A. Selected transaction data.
B. Comparative statements of financial position (balance sheets).
C. An analysis of sales by territory.
D. The current income statements.
12. The payment of cash dividends to the ordinary shareholders would be reported on a company’s statement of cash flows under the classification of
A. Operating Activities.
B. Financing Activities.
C. Investing Activities.
D. Significant Transactions.
13. How would the two items shown below be handled in arriving at cash provided by operations in the statement of cash flows under the indirect method?? i) Increase in Accounts Receivable ii) Increase in Accounts Payable
A. i) Add to net income; ii) Add to net income
B. i) Deduct from net income; ii) Deduct from net income
C. i) Add to net income; ii) Deduct from net income
D. i) Deduct from net income; ii) Add to net income
Amy Carlson Company had current assets of $12,000, current liabilities of $20,000, net sales of $40,000, cost of goods sold of $24,000, and net income of $8,000. What is Amy Carlson’s gross profit margin?
15.Which of the following is not a necessary characteristic for an item to be classified as property, plant, and equipment?
A. Usually subject to depreciation.
B. Characterized by physical substance.
C. Can be used in operations for at least 5 years.
D. Not acquired for resale.
16. Stacia Theater Corporation recently purchased the Robinson Theater and the land on which it is located. Stacia plans to raze the building immediately and build a new modern theater on the site. The cost to raze the Robinson Theater should be:
A. written off as an extraordinary loss in the year the theater is razed.
B. capitalized as part of the cost of land.
C. depreciated over the period from the date of acquisition to the date the theater is to be razed.
D. capitalized as part of the cost of the new theater.
On January 15, 2014, Thorne Corporation purchased a parcel of land as a factory site for $100,000. An old building on the property was demolished, and construction began on a new building which was completed on October 18, 2014. Costs incurred during this period are listed below: Demolition of old building: $ 6,000; Architect’s fees: $ 15,000; Legal fees for title investigation and purchase contract: $ 5,000; Construction costs: $ 600,000 (Salvaged materials resulting from demolition were sold for $3,000.) Thorne should record the cost of the land and new building respectively as:
A. $100,000 and $623,000
B. $105,000 and $618,000
C. $108,000 and $615,000
D. $111,000 and $615,000
18. Hardin Company received $40,000 in cash and a used computer with a fair value of $120,000 from Page Corporation for Hardin Company’s existing computer having a fair value of $160,000 and an acquisition cost of $150,000 recorded on its books. The transaction has no commercial substance. How much gain should Hardin recognize on this exchange, and at what amount should the acquired computer be recorded, respectively?
A. $0 and $110,000.
B. $769 and $110,769.
C. $10,000 and $120,000.
D. $40,000 and $150,000. 6/8
19. Elizabeth Company recently accepted a donation of land with a cost to the donor of $200,000 and a fair market value of $250,000. Which of the following journal entries would Elizabeth Company most likely make to record the receipt of the land?
A. Land 200,000; Donated Capital 200,000
B. Land 200,000; Revenue from Donation 200,000
C. Land 250,000; Donated Capital 250,000
D. Land 250,000; Revenue from Donation 250,000
Which of the following most accurately reflects the concept of depreciation as used in accounting?
A. The process of charging the decline in value of an economic resource to income in the period in which the benefit occurred.
B. The process of allocating the cost of tangible assets to expense in a systematic rational manner to those periods expected to benefit from the use of the asset.
C. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved.
D. An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible assets.
21. Which of the following statements is the assumption on which straight-line depreciation is based?
A. The operating efficiency of the asset decreases in later years.
B. Service value declines as a function of time rather than use.
C. Service value declines as a function of obsolescence rather than time.
D. Physical wear and tear are more important than economic obsolescence.
22. The Archer Company purchased a tooling machine in 2000 for $30,000. The machine was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2014, when the machine had been in use for 10 years, the company paid $5,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years. What should be the depreciation expense recorded for this machine in 2014?
Maimonides Inc. bought a machine on January 1, 2004 for $100,000. The machine had an expected life of 20 years and was expected to have a salvage value of $10,000. On July 1, 2014, the company reviewed the potential of the machine and determined that its fair value less costs to sell totaled $50,000 and its value-in-use totaled $35,000. If no active market exists for the machine and the company does not plan to dispose of it, what should Maimonides record as an impairment loss on July 1,2014 assuming the straight-line method is used?
A. $ 0
B. $ 2,750
C. $ 5,000
24. An impairment in the value of property, plant, and equipment is recorded by recognizing:
A. Increase in accumulated depreciation and increase on impairment losses on PP&E
B. Increase in accumulated depreciation and decrease on impairment losses on PP&E
C. Decrease in accumulated depreciation and decrease on impairment losses on PP&E
D. Decrease in accumulated depreciation and increase on impairment losses on PP&E
25. On December 31, 2013, Aquinas Company had equipment register according to the revaluation method, that had a carrying amount of $300,000 which the company wrote down to its $250,000 fair value. At the end of 2014, it was determined that the fair value of the equipment had risen to $320,000. On December 31, 2014, assuming Aquinas does not intend to dispose of the equipment, how should Aquinas record the change in fair value of the equipment?
A. The company should not revaluate the asset.
B. The company should revaluate the asset to $300,000.
C. The company should revaluate the asset to $320,000.
D. The company should revaluate the asset to $270,000.