WGU Intermediate Accounting I Exam Questions AND Correct
Answers
*Bank Reconciliation. - ✔✔A schedule explaining any
differences between the company's record and the bank's
record of the company's cash.
*Dollar-value LIFO retail method. - ✔✔A method of estimating
the cost of ending inventory by calculating the dollar increase
in retail inventory layers with price indexes.
*LIFO retail method. - ✔✔A method of estimating the cost of
ending inventory which excludes the beginning inventory in
the cost-to-retail ratio.
*Lockbox Account. - ✔✔An account where customer
remittances are mailed to a local post office box and a local
bank is authorized to pick up the remittances mailed to it.
*Modified Accelerated Cost Recovery System (MACRS). - ✔✔A
tax depreciation method used for assets placed in service in
1987 and thereafter.
,*Not-Sufficient-Funds (NSF) Check. - ✔✔A check that is not
paid by a bank because of insufficient funds in a customer's
bank account.
*Troubled debt restructuring. - ✔✔When a creditor for
economic or legal reasons related to the debtor's financial
difficulties grants a concession to the debtor that it would not
otherwise consider.
1 Copyright. - ✔✔A federally granted right that all authors,
painters, musicians, sculptors, and other artists have in their
creations and expressions, which is granted for the life of the
creator plus 70 years.
Accelerated Cost Recovery System (ACRS). - ✔✔A tax
depreciation method used for assets purchased in the years
1981 through 1986.
Accounting Principles Вoard (APB). - ✔✔An accounting rule-
making board which provided official pronouncements, called
APB Opinions, from 1959 through 1973.
,Accounting Research Bulletins (ARBS). - ✔✔Pronouncements
issued by CAP dealing with a variety of timely accounting
problems during the years 1939 to 1959.
Accounting Standards Executive Committee (AcSEC) - ✔✔The
senior technical committee that was authorized to speak for
the AICPA in the area of financial accounting and reporting.
Accounting Standards Updates - ✔✔These Updates amend the
Accounting Standards accounting standards, other than
standards issued by the Codification, which represents the
source of authoritative SEC
Accounts payable. - ✔✔Balances owed to others for goods,
supplies, or services purchased on open account.
Accounts Receivable, - ✔✔Oral promises of the purchaser to
pay for goods and services sold.
Accrual basis method of warranty costs (expense warranty
approach). - ✔✔Warranty costs are charged to operating
expense in the year of sale.
, Accumulated rights. - ✔✔carried forward to future period if
not used in the period in Obligations by an employer to an
employee that can be which earned.
Activity method (variable charge approach). - ✔✔A
depreciation method in which depreciation is a function of use
or productivity instead of the passage of time.
Additional paid-in capital. - ✔✔The excess of amounts paid in
over the par or stated value.
Additions. - ✔✔Expenditures on assets which increase or
extend them.
Aging Schedule. - ✔✔The analysis of customer balances by the
length of time they have been unpaid.
All-inclusive approach. - ✔✔An approach that states that
irregular items be included in net income.
Answers
*Bank Reconciliation. - ✔✔A schedule explaining any
differences between the company's record and the bank's
record of the company's cash.
*Dollar-value LIFO retail method. - ✔✔A method of estimating
the cost of ending inventory by calculating the dollar increase
in retail inventory layers with price indexes.
*LIFO retail method. - ✔✔A method of estimating the cost of
ending inventory which excludes the beginning inventory in
the cost-to-retail ratio.
*Lockbox Account. - ✔✔An account where customer
remittances are mailed to a local post office box and a local
bank is authorized to pick up the remittances mailed to it.
*Modified Accelerated Cost Recovery System (MACRS). - ✔✔A
tax depreciation method used for assets placed in service in
1987 and thereafter.
,*Not-Sufficient-Funds (NSF) Check. - ✔✔A check that is not
paid by a bank because of insufficient funds in a customer's
bank account.
*Troubled debt restructuring. - ✔✔When a creditor for
economic or legal reasons related to the debtor's financial
difficulties grants a concession to the debtor that it would not
otherwise consider.
1 Copyright. - ✔✔A federally granted right that all authors,
painters, musicians, sculptors, and other artists have in their
creations and expressions, which is granted for the life of the
creator plus 70 years.
Accelerated Cost Recovery System (ACRS). - ✔✔A tax
depreciation method used for assets purchased in the years
1981 through 1986.
Accounting Principles Вoard (APB). - ✔✔An accounting rule-
making board which provided official pronouncements, called
APB Opinions, from 1959 through 1973.
,Accounting Research Bulletins (ARBS). - ✔✔Pronouncements
issued by CAP dealing with a variety of timely accounting
problems during the years 1939 to 1959.
Accounting Standards Executive Committee (AcSEC) - ✔✔The
senior technical committee that was authorized to speak for
the AICPA in the area of financial accounting and reporting.
Accounting Standards Updates - ✔✔These Updates amend the
Accounting Standards accounting standards, other than
standards issued by the Codification, which represents the
source of authoritative SEC
Accounts payable. - ✔✔Balances owed to others for goods,
supplies, or services purchased on open account.
Accounts Receivable, - ✔✔Oral promises of the purchaser to
pay for goods and services sold.
Accrual basis method of warranty costs (expense warranty
approach). - ✔✔Warranty costs are charged to operating
expense in the year of sale.
, Accumulated rights. - ✔✔carried forward to future period if
not used in the period in Obligations by an employer to an
employee that can be which earned.
Activity method (variable charge approach). - ✔✔A
depreciation method in which depreciation is a function of use
or productivity instead of the passage of time.
Additional paid-in capital. - ✔✔The excess of amounts paid in
over the par or stated value.
Additions. - ✔✔Expenditures on assets which increase or
extend them.
Aging Schedule. - ✔✔The analysis of customer balances by the
length of time they have been unpaid.
All-inclusive approach. - ✔✔An approach that states that
irregular items be included in net income.
