Intermediate Financial Accounting
Latest Exam Update Questions and
Verified Answers Perfect Score of 100%
Graded A+
Accounting for assets on long-term credit contracts - Correct Answers-Present value of consideration
exchanged at transaction date
Accounting for limited-life trademark - Correct Answers-Amortized over its useful life
Accounting treatment for probable or estimable loss - Correct Answers-Disclose nature and estimate
of possible loss in footnotes
Allocation of costs during construction - Correct Answers-Land: $108,000, Building: $615,000
Amortization of franchise - Correct Answers-Write off over longest possible period
Amortization of franchise by Smith Co. - Correct Answers-$2,000
Asset received in exchange of assets - Correct Answers-Bryant Co.: $15,000, Heyward Inc.: $16,000
Capitalization of costs - Correct Answers-Occurs if costs incurred after asset acquisition provide
future benefits
Capitalized interest at December 31, 2020 - Correct Answers-$67,500
Cash or cash equivalent price - Correct Answers-Best measure of property, plant, and equipment's
value on acquisition
Characteristics of property, plant, and equipment - Correct Answers-Subject to depreciation, physical
substance, not acquired for resale
Conditions for interest capitalization - Correct Answers-Interest cost being incurred, expenditures
made, asset preparation in progress
Contingency definition - Correct Answers-Uncertainty of gain or loss resolved by future events
Contingency definition - Correct Answers-Uncertainty of gain or loss resolved by future events
Cost of nonmonetary asset acquired in exchange - Correct Answers-Recorded at fair value of asset
given up, recognizing gain or loss
Cost of property, plant, and equipment - Correct Answers-Excludes expenditures incurred after the
asset's acquisition
Cost to raze a building - Correct Answers-Capitalized as part of the cost of land
Latest Exam Update Questions and
Verified Answers Perfect Score of 100%
Graded A+
Accounting for assets on long-term credit contracts - Correct Answers-Present value of consideration
exchanged at transaction date
Accounting for limited-life trademark - Correct Answers-Amortized over its useful life
Accounting treatment for probable or estimable loss - Correct Answers-Disclose nature and estimate
of possible loss in footnotes
Allocation of costs during construction - Correct Answers-Land: $108,000, Building: $615,000
Amortization of franchise - Correct Answers-Write off over longest possible period
Amortization of franchise by Smith Co. - Correct Answers-$2,000
Asset received in exchange of assets - Correct Answers-Bryant Co.: $15,000, Heyward Inc.: $16,000
Capitalization of costs - Correct Answers-Occurs if costs incurred after asset acquisition provide
future benefits
Capitalized interest at December 31, 2020 - Correct Answers-$67,500
Cash or cash equivalent price - Correct Answers-Best measure of property, plant, and equipment's
value on acquisition
Characteristics of property, plant, and equipment - Correct Answers-Subject to depreciation, physical
substance, not acquired for resale
Conditions for interest capitalization - Correct Answers-Interest cost being incurred, expenditures
made, asset preparation in progress
Contingency definition - Correct Answers-Uncertainty of gain or loss resolved by future events
Contingency definition - Correct Answers-Uncertainty of gain or loss resolved by future events
Cost of nonmonetary asset acquired in exchange - Correct Answers-Recorded at fair value of asset
given up, recognizing gain or loss
Cost of property, plant, and equipment - Correct Answers-Excludes expenditures incurred after the
asset's acquisition
Cost to raze a building - Correct Answers-Capitalized as part of the cost of land
