Intermediate Accounting II - D104 WGU exam |\ |\ |\ |\ |\ |\
questions with answers
|\ |\ |\
Which method should be used to handle indirect costs of self-
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
constructed assets? |\
Assigning no variable overhead to a constructed asset
|\ |\ |\ |\ |\ |\ |\
Allocating overhead on the basis of gained production
|\ |\ |\ |\ |\ |\ |\
Assigning a pro rata portion of all overhead to the asset
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Allocating the total overhead to the asset - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Assigning a pro rata portion of all overhead to the asset |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
A company purchases land for development into a subdivision.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The land has a factory building on it that will need to be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
demolished.
Where should the interest costs be allocated?
|\ |\ |\ |\ |\ |\
Interest expenses |\
General administrative expenses |\ |\
Cost of the land |\ |\ |\
Cost of the plant - CORRECT ANSWERS ✔✔Cost of land
|\ |\ |\ |\ |\ |\ |\ |\ |\
In which situation can capitalization of interest be included in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost of land?
|\ |\ |\
When holding the land as an investment
|\ |\ |\ |\ |\ |\
When purchasing land with the intension of developing it for lots
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sales
, When selling the land
|\ |\ |\
When building a structure on the land - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔When purchasing land with the intension of developing it for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
lots sales
|\
Which value should be used to record machinery that was
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
purchased with a long-term note? |\ |\ |\ |\
Sum of all estimated payments
|\ |\ |\ |\
Market price of the machinery
|\ |\ |\ |\
Present value of the future payments
|\ |\ |\ |\ |\
Appraised value of the machinery - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Present value of the future payments |\ |\ |\ |\ |\
Which item is considered to be a technology-related intangible
|\ |\ |\ |\ |\ |\ |\ |\ |\
asset?
Trade secrets |\
Goodwill
Artistic-related rights |\
Licensing agreements - CORRECT ANSWERS ✔✔Trade Secrets
|\ |\ |\ |\ |\ |\
Pay out ratio - CORRECT ANSWERS ✔✔Pay out ratio = cash
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
dividends/net income (less preferred dividends, if applicable) |\ |\ |\ |\ |\ |\
Return on common stockholders' equity - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Return on Common Stockholders' Equity = (Net Income -
|\ |\ |\ |\ |\ |\ |\ |\ |\
Preferred Dividends) / Average Common Stockholders' Equity
|\ |\ |\ |\ |\ |\
questions with answers
|\ |\ |\
Which method should be used to handle indirect costs of self-
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
constructed assets? |\
Assigning no variable overhead to a constructed asset
|\ |\ |\ |\ |\ |\ |\
Allocating overhead on the basis of gained production
|\ |\ |\ |\ |\ |\ |\
Assigning a pro rata portion of all overhead to the asset
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Allocating the total overhead to the asset - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Assigning a pro rata portion of all overhead to the asset |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
A company purchases land for development into a subdivision.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The land has a factory building on it that will need to be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
demolished.
Where should the interest costs be allocated?
|\ |\ |\ |\ |\ |\
Interest expenses |\
General administrative expenses |\ |\
Cost of the land |\ |\ |\
Cost of the plant - CORRECT ANSWERS ✔✔Cost of land
|\ |\ |\ |\ |\ |\ |\ |\ |\
In which situation can capitalization of interest be included in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost of land?
|\ |\ |\
When holding the land as an investment
|\ |\ |\ |\ |\ |\
When purchasing land with the intension of developing it for lots
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sales
, When selling the land
|\ |\ |\
When building a structure on the land - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔When purchasing land with the intension of developing it for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
lots sales
|\
Which value should be used to record machinery that was
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
purchased with a long-term note? |\ |\ |\ |\
Sum of all estimated payments
|\ |\ |\ |\
Market price of the machinery
|\ |\ |\ |\
Present value of the future payments
|\ |\ |\ |\ |\
Appraised value of the machinery - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Present value of the future payments |\ |\ |\ |\ |\
Which item is considered to be a technology-related intangible
|\ |\ |\ |\ |\ |\ |\ |\ |\
asset?
Trade secrets |\
Goodwill
Artistic-related rights |\
Licensing agreements - CORRECT ANSWERS ✔✔Trade Secrets
|\ |\ |\ |\ |\ |\
Pay out ratio - CORRECT ANSWERS ✔✔Pay out ratio = cash
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
dividends/net income (less preferred dividends, if applicable) |\ |\ |\ |\ |\ |\
Return on common stockholders' equity - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Return on Common Stockholders' Equity = (Net Income -
|\ |\ |\ |\ |\ |\ |\ |\ |\
Preferred Dividends) / Average Common Stockholders' Equity
|\ |\ |\ |\ |\ |\
