Intermediate Accounting II - D104 WGU QUESTIONS AND CORRECT
DETAILED ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS) A
NEW UPDATED VERSION LATEST| GUARANTEED A+
1) Which method should be used to handle Assigning a pro rata
indirect costs of self-constructed assets? portion of all overhead
Assigning no variable overhead to a to the asset
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
1) A company purchases land for development Cost of land
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
2) In which situation can capitalization of interest When purchasing land
be included in the cost of land? with the intension of
When holding the land as an investment developing it for lots
When purchasing land with the intension of sales
developing it for lots sales
When selling the land
When building a structure on the land
3) Which value should be used to record Present value of the
machinery that was purchased with a long-term future payments
note?
Sum of all estimated payments
Market price of the machinery
Present value of the future payments
Appraised value of the machinery
4) Which item is considered to be a technology- Trade Secrets
related intangible asset?
Trade secrets
Goodwill
Artistic-related rights
Licensing agreements
5) Pay out ratio Pay out ratio = cash
, dividends/net income
(less preferred
dividends, if applicable)
6) Return on common stockholders' equity Return on Common
Stockholders' Equity =
(Net Income - Preferred
Dividends) / Average
Common Stockholders'
Equity
7) Book value per share Book Value per Share =
common stockholders
equity/outstanding
shares
8) Dilutive Securities Are securities that can
be converted to
common stock. Upon
conversion or exercise
by the holder, the
dilutive securities
reduce (dilute) earnings
per share
9) Antidilutive securities Securities, which upon
conversion or exercise,
DETAILED ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS) A
NEW UPDATED VERSION LATEST| GUARANTEED A+
1) Which method should be used to handle Assigning a pro rata
indirect costs of self-constructed assets? portion of all overhead
Assigning no variable overhead to a to the asset
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
1) A company purchases land for development Cost of land
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
2) In which situation can capitalization of interest When purchasing land
be included in the cost of land? with the intension of
When holding the land as an investment developing it for lots
When purchasing land with the intension of sales
developing it for lots sales
When selling the land
When building a structure on the land
3) Which value should be used to record Present value of the
machinery that was purchased with a long-term future payments
note?
Sum of all estimated payments
Market price of the machinery
Present value of the future payments
Appraised value of the machinery
4) Which item is considered to be a technology- Trade Secrets
related intangible asset?
Trade secrets
Goodwill
Artistic-related rights
Licensing agreements
5) Pay out ratio Pay out ratio = cash
, dividends/net income
(less preferred
dividends, if applicable)
6) Return on common stockholders' equity Return on Common
Stockholders' Equity =
(Net Income - Preferred
Dividends) / Average
Common Stockholders'
Equity
7) Book value per share Book Value per Share =
common stockholders
equity/outstanding
shares
8) Dilutive Securities Are securities that can
be converted to
common stock. Upon
conversion or exercise
by the holder, the
dilutive securities
reduce (dilute) earnings
per share
9) Antidilutive securities Securities, which upon
conversion or exercise,
