INTERMEDIATE ACCOUNTING 1-
D103: UNITS 2-4 PRE-
ASSESSMENT QUESTIONS AND
ANSWERS 2026 -2027
What is the correct order to present current assets? - ANSWERS-
Cash, accounts receivable, inventories, prepaid items (in order of
liquidity)
Are dividends on the balance sheet? - ANSWERS-NO
What is included in an owners' equity section reported in the balance
sheet? - ANSWERS-noncontrolling interest (Capital Stock, Additional
Paid-in Capital, Retained Earnings, Accumulated Other
Comprehensive Income, Treasury Stock, and Noncontrolling interests
are reported in the Stockholders' Equity section of the balance sheet)
received cash of $36,000 on September 1, 2020, for one year's rent in
advance and recorded the transaction with credit to Unearned Rent
Revenue.
What is the correct representation of the December 31, 2020 adjusting
entry? - ANSWERS-Debit Unearned Rent Revenue and credit Rent
Revenue, $12,000
The supplies inventory on January 1, 2020 was $5,000.
, Supplies costing $16,000 were purchased during 2020 and debited to
the asset account.
A count on December 31, 2020 revealed supplies on hand of $3,000.
Which is the adjusted journal entry prior to preparing the December
31 financial statement? - ANSWERS-Debit Supplies Expense
$18,000; Credit Supply Inventory $18,000
The supplies purchased were posted to the inventory account.
Therefore an adjusting entry for both the purchases and the difference
in inventory must be made. $5,000 (beginning inventory) plus
$16,000 (purchases) minus $3,000 (ending inventory) = $18,000; The
correct adjusting journal entry: Debit Supplies Expense $18,000;
Credit Supply Inventory $18,000
If $10,000 of salaries was paid in January, what was the balance in
Salaries and Wages Payable at December 31, 2020? - ANSWERS-he
entry in January to record salary expense was: Debit Salaries and
Wages Expenses $7,200, Salaries & Wages Payable $2,800, Credit
Cash $10,000. Therefore, the beginning balance os salaries and wages
payable was: $3,200 (ending balance of salaries and wages payable)
plus $2,800 (reduction of salaries and wages payable) = $6,000.
What is the current cash debt coverage often used to assess? -
ANSWERS-Liquidity- Liquidity refers to the "nearness to cash" of
assets and liabilities - how quickly can they get and use their cash
Cash debt coverage - ANSWERS-net cash provided by operating
activities/average total liabilities
D103: UNITS 2-4 PRE-
ASSESSMENT QUESTIONS AND
ANSWERS 2026 -2027
What is the correct order to present current assets? - ANSWERS-
Cash, accounts receivable, inventories, prepaid items (in order of
liquidity)
Are dividends on the balance sheet? - ANSWERS-NO
What is included in an owners' equity section reported in the balance
sheet? - ANSWERS-noncontrolling interest (Capital Stock, Additional
Paid-in Capital, Retained Earnings, Accumulated Other
Comprehensive Income, Treasury Stock, and Noncontrolling interests
are reported in the Stockholders' Equity section of the balance sheet)
received cash of $36,000 on September 1, 2020, for one year's rent in
advance and recorded the transaction with credit to Unearned Rent
Revenue.
What is the correct representation of the December 31, 2020 adjusting
entry? - ANSWERS-Debit Unearned Rent Revenue and credit Rent
Revenue, $12,000
The supplies inventory on January 1, 2020 was $5,000.
, Supplies costing $16,000 were purchased during 2020 and debited to
the asset account.
A count on December 31, 2020 revealed supplies on hand of $3,000.
Which is the adjusted journal entry prior to preparing the December
31 financial statement? - ANSWERS-Debit Supplies Expense
$18,000; Credit Supply Inventory $18,000
The supplies purchased were posted to the inventory account.
Therefore an adjusting entry for both the purchases and the difference
in inventory must be made. $5,000 (beginning inventory) plus
$16,000 (purchases) minus $3,000 (ending inventory) = $18,000; The
correct adjusting journal entry: Debit Supplies Expense $18,000;
Credit Supply Inventory $18,000
If $10,000 of salaries was paid in January, what was the balance in
Salaries and Wages Payable at December 31, 2020? - ANSWERS-he
entry in January to record salary expense was: Debit Salaries and
Wages Expenses $7,200, Salaries & Wages Payable $2,800, Credit
Cash $10,000. Therefore, the beginning balance os salaries and wages
payable was: $3,200 (ending balance of salaries and wages payable)
plus $2,800 (reduction of salaries and wages payable) = $6,000.
What is the current cash debt coverage often used to assess? -
ANSWERS-Liquidity- Liquidity refers to the "nearness to cash" of
assets and liabilities - how quickly can they get and use their cash
Cash debt coverage - ANSWERS-net cash provided by operating
activities/average total liabilities
