INTERMEDIATE ACCOUNTING EXAM WITH
QUESTIONS AND WELL VERIFIED ANSWERS ||
ALREADY GRADED A+ || GUARANTEED PASS ||
LATEST VERSION!!!
1. Listed below are year-end account balances ($ in millions) taken from the
records of Symphony Stores.
Debit
Accounts receivable710
Building and equipment920
Cash39
Interest receivable30
Inventory16
Land150
Notes receivable (long-term)450
Prepaid rent20
Supplies8
Trademark40
Credits
Accounts payable 560
Accumulated depreciation 80
Additional paid-in capital 485
Dividends payable 30
,Common stock (at par) 15
Income tax payable 65
Notes payable (long-term) 800
Retained earnings 308
Deferred revenue 40
TOTALS2,383 2,383
What would Symphony report as total shareholders' equity?
Multiple Choice
$323 millions.
$808 millions.
$838 millions.
$928 millions. - ANSWER-$808 millions.
2. Which of the following is not a current liability account?
Multiple Choice
Accrued payroll.
Dividends payable.
Prepaid rent.
Subscriptions collected in advance from customers. - ANSWER-Prepaid rent.
The principal concern with accounting for related-party transactions is:
Multiple Choice
The size of the transactions.
Differences between economic substance and legal form.
,The absence of legally binding contracts.
The lack of accurate data to record transactions. - ANSWER-Differences
between economic substance and legal form.
3. A company would classify a six-month prepaid insurance policy as:
Multiple Choice
Property, plant, and equipment.
Investment.
Current asset.
Goodwill. - ANSWER-Current asset.
4. Which of the following is not a required segment reporting disclosure
according to U.S. GAAP?
Multiple Choice
Segment profit or loss.
Segment assets.
Segment liabilities.
General information about the operating segment. - ANSWER-Segment
liabilities.
5. Long-term solvency refers to:
Multiple Choice
The efficiency with which a company manages its resources.
The profitability of a company over a long-term period of time.
The amount of current assets relative to long-term assets.
The risk that a company will not be able to pay its long-term debt. - ANSWER-
The risk that a company will not be able to pay its long-term debt.
, 6. Disclosure notes would not include:
Multiple Choice
Depreciation methods used and estimated useful life.
Definition of cash equivalents.
Details of pension plans.
Data to adjust the financial statements so that they are not misleading. -
ANSWER-Data to adjust the financial statements so that they are not
misleading.
7. What is the amount of current assets, assuming the accounts above reflect
normal activity?
Multiple Choice
$20,000.
$60,000.
$140,000.
$175,000. - ANSWER-60,000.
The following information is provided for Sacks Company.
Cash$12,000
Supplies 4,500
Prepaid rent 2,000
Salaries expense 4,500
Equipment 65,000
Service revenue 30,000 Miscellaneous expenses 20,000
Dividends 3,000
Accounts payable 5,000
Common stock 68,000
QUESTIONS AND WELL VERIFIED ANSWERS ||
ALREADY GRADED A+ || GUARANTEED PASS ||
LATEST VERSION!!!
1. Listed below are year-end account balances ($ in millions) taken from the
records of Symphony Stores.
Debit
Accounts receivable710
Building and equipment920
Cash39
Interest receivable30
Inventory16
Land150
Notes receivable (long-term)450
Prepaid rent20
Supplies8
Trademark40
Credits
Accounts payable 560
Accumulated depreciation 80
Additional paid-in capital 485
Dividends payable 30
,Common stock (at par) 15
Income tax payable 65
Notes payable (long-term) 800
Retained earnings 308
Deferred revenue 40
TOTALS2,383 2,383
What would Symphony report as total shareholders' equity?
Multiple Choice
$323 millions.
$808 millions.
$838 millions.
$928 millions. - ANSWER-$808 millions.
2. Which of the following is not a current liability account?
Multiple Choice
Accrued payroll.
Dividends payable.
Prepaid rent.
Subscriptions collected in advance from customers. - ANSWER-Prepaid rent.
The principal concern with accounting for related-party transactions is:
Multiple Choice
The size of the transactions.
Differences between economic substance and legal form.
,The absence of legally binding contracts.
The lack of accurate data to record transactions. - ANSWER-Differences
between economic substance and legal form.
3. A company would classify a six-month prepaid insurance policy as:
Multiple Choice
Property, plant, and equipment.
Investment.
Current asset.
Goodwill. - ANSWER-Current asset.
4. Which of the following is not a required segment reporting disclosure
according to U.S. GAAP?
Multiple Choice
Segment profit or loss.
Segment assets.
Segment liabilities.
General information about the operating segment. - ANSWER-Segment
liabilities.
5. Long-term solvency refers to:
Multiple Choice
The efficiency with which a company manages its resources.
The profitability of a company over a long-term period of time.
The amount of current assets relative to long-term assets.
The risk that a company will not be able to pay its long-term debt. - ANSWER-
The risk that a company will not be able to pay its long-term debt.
, 6. Disclosure notes would not include:
Multiple Choice
Depreciation methods used and estimated useful life.
Definition of cash equivalents.
Details of pension plans.
Data to adjust the financial statements so that they are not misleading. -
ANSWER-Data to adjust the financial statements so that they are not
misleading.
7. What is the amount of current assets, assuming the accounts above reflect
normal activity?
Multiple Choice
$20,000.
$60,000.
$140,000.
$175,000. - ANSWER-60,000.
The following information is provided for Sacks Company.
Cash$12,000
Supplies 4,500
Prepaid rent 2,000
Salaries expense 4,500
Equipment 65,000
Service revenue 30,000 Miscellaneous expenses 20,000
Dividends 3,000
Accounts payable 5,000
Common stock 68,000
