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ACCT 3113 - Final Exam Questions With
Correct Answers 100% Verified.
True or False
A particular segment is not significant enough to disclose unless its revenues exceed 15% of the
revenues earned by the other segments being reported. - Answer✔False
Of the following components of pension expense, which is most likely to result in a decrease in
pension expense (Ch 20)?
A. Expected return on plan assets.
B Amortization of unrecognized prior service cost.
C. Interest on the liability.
D. Service cost. - Answer✔A. Expected return on plan assets.
Which of the following are journal entries that Voldemort would use when accounting for an
investment using the Equity method of accounting (hint select more than one)?
A. Initial Investment.
B. Dividends.
C. Allocation of Net Income or Loss generated by Voldemort.
D. Fair Value adjustment at the end of the year. - Answer✔A. Initial Investment.
B. Dividends.
C. Allocation of Net Income or Loss generated by Voldemort.
Wilson Company has a machine with a cost of $250,000 which also is its fair market value on
the date the machine is leased to Berger Company. The lease is for 6 years and the machine is
estimated to have a residual value of zero. If the lessor's implicit interest rate is 6%, the six
beginning-of-the-year lease payments would be (Ch21A):
A. $47,962.92
B. $50,840.70
C. $55.639.51
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D. $60,223.43 - Answer✔A. $47,962.92
Cantaloupe Company uses the indirect method in computing net cash provided by operating
activities. How would reported net income be adjusted for the following items?
Loss on Sale of Machinery Increase in Inventories
A. Added to Deducted From
B. Deducted From Added To
C. Added To Added To
D. Deducted From Deducted From - Answer✔A. Added to Deducted From
Thanks Inc. has a beginning Equipment balance of $100,000 and an ending Equipment balance
of $140,000. Thanks also sold a "Earth Moving" machine that had a cost of $30,000 and was
80% depreciated during the year. The gain on the sale of the equipment was $5,000.
1.) What are the cash proceeds on the sale?
2.) How much did Thanos purchase in equipment during the year? - Answer✔1.) $11,000
2.) $70,000
Apple Company issues 500 shares of its $5 par value common stock having a market value of
$25 per share and 750 shares of its $15 par value preferred stock having a market value of $20
per share for a lump sum of $24,000. How would the proceeds be allocated between the common
and preferred stock (Ch 15)?
Common Stock Preferred Stock
A. $2,500. $21,500
B. $10,909 $13,091
C. $12,500 $15,000
D. $12,750 $11.250 - Answer✔B. $10,909 $13,091
Income before income taxes = $750,000
Current taxes = $300,000
Deferred taxes = $(50,000)
Income tax expense = $250,000
Income after taxes = $500,000
Calculate the effective tax rate - Answer✔33%
Voldemort Corporation had the following 2017 income statement:
Sales Revenue $500,000
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ACCT 3113 - Final Exam Questions With
Correct Answers 100% Verified.
True or False
A particular segment is not significant enough to disclose unless its revenues exceed 15% of the
revenues earned by the other segments being reported. - Answer✔False
Of the following components of pension expense, which is most likely to result in a decrease in
pension expense (Ch 20)?
A. Expected return on plan assets.
B Amortization of unrecognized prior service cost.
C. Interest on the liability.
D. Service cost. - Answer✔A. Expected return on plan assets.
Which of the following are journal entries that Voldemort would use when accounting for an
investment using the Equity method of accounting (hint select more than one)?
A. Initial Investment.
B. Dividends.
C. Allocation of Net Income or Loss generated by Voldemort.
D. Fair Value adjustment at the end of the year. - Answer✔A. Initial Investment.
B. Dividends.
C. Allocation of Net Income or Loss generated by Voldemort.
Wilson Company has a machine with a cost of $250,000 which also is its fair market value on
the date the machine is leased to Berger Company. The lease is for 6 years and the machine is
estimated to have a residual value of zero. If the lessor's implicit interest rate is 6%, the six
beginning-of-the-year lease payments would be (Ch21A):
A. $47,962.92
B. $50,840.70
C. $55.639.51
1|Page
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D. $60,223.43 - Answer✔A. $47,962.92
Cantaloupe Company uses the indirect method in computing net cash provided by operating
activities. How would reported net income be adjusted for the following items?
Loss on Sale of Machinery Increase in Inventories
A. Added to Deducted From
B. Deducted From Added To
C. Added To Added To
D. Deducted From Deducted From - Answer✔A. Added to Deducted From
Thanks Inc. has a beginning Equipment balance of $100,000 and an ending Equipment balance
of $140,000. Thanks also sold a "Earth Moving" machine that had a cost of $30,000 and was
80% depreciated during the year. The gain on the sale of the equipment was $5,000.
1.) What are the cash proceeds on the sale?
2.) How much did Thanos purchase in equipment during the year? - Answer✔1.) $11,000
2.) $70,000
Apple Company issues 500 shares of its $5 par value common stock having a market value of
$25 per share and 750 shares of its $15 par value preferred stock having a market value of $20
per share for a lump sum of $24,000. How would the proceeds be allocated between the common
and preferred stock (Ch 15)?
Common Stock Preferred Stock
A. $2,500. $21,500
B. $10,909 $13,091
C. $12,500 $15,000
D. $12,750 $11.250 - Answer✔B. $10,909 $13,091
Income before income taxes = $750,000
Current taxes = $300,000
Deferred taxes = $(50,000)
Income tax expense = $250,000
Income after taxes = $500,000
Calculate the effective tax rate - Answer✔33%
Voldemort Corporation had the following 2017 income statement:
Sales Revenue $500,000
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