INTERMEDIATE ACCOUNTING II CHAPTER 1-23 REAL EXAM QUESTIONS AND ANSWERS ALREADY GRADED A+

INTERMEDIATE ACCOUNTING II CHAPTER 1-23 REAL EXAM QUESTIONS AND
ANSWERS ALREADY GRADED A+



Chapter I: The Nature of Computation

QUESTION :Accounts receivable aging schedule - Correct Answer-applying different percentages to
accounts receivable balances depending on the length of time outstanding.




QUESTION :Accrual accounting - Correct Answer-measurement of the entity's accomplishments and
resource sacrifices during the period, regardless of when cash is received or paid.




QUESTION :Accruals - Correct Answer-when the cash flow comes after either expense or revenue
recognition.




QUESTION :Accrued interest - Correct Answer-interest that has accrued since the last interest date.




QUESTION :Accrued liabilities - Correct Answer-expenses already incurred but not yet paid (accrued
expenses).




QUESTION :Accrued receivables - Correct Answer-the recognition of revenue earned before cash is
received.




QUESTION :Accumulated benefit obligation (ABO) - Correct Answer-the discounted present value of
estimated retirement benefits earned so far by employees, applying the plan's pension formula using
existing compensation levels.



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,QUESTION :Accumulated other comprehensive income - Correct Answer-amount of other
comprehensive income (nonowner changes in equity other than net income) accumulated over the
current and prior periods.




QUESTION :Accumulated postretirement benefit obligation (APBO) - Correct Answer-portion of the
EPBO attributed to employee service up to a particular date.




QUESTION :Acid-test ratio - Correct Answer-current assets, excluding inventories and prepaid items,
divided by current liabilities.




QUESTION :Acquisition costs - Correct Answer-the amounts paid to acquire the rights to explore for
undiscovered natural resources or to extract proven natural resources.




QUESTION :Activity-based method - Correct Answer-allocation of an asset's cost base using a measure
of the asset's input or output.




QUESTION :Actuary - Correct Answer-a professional trained in a particular branch of statistics and
mathematics to assess the various uncertainties and to estimate the company's obligation to employees
in connection with its pension plan.




QUESTION :Additions - Correct Answer-the adding of a new major component to an existing asset.




QUESTION :Adjusted trial balance - Correct Answer-trial balance after adjusting entries have been
recorded.




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,QUESTION :Adjusting entries - Correct Answer-internal transactions recorded at the end of any period
when financial statements are prepared.




QUESTION :Allocation base - Correct Answer-the value of the usefulness that is expected to be
consumed.




QUESTION :Allocation method - Correct Answer-the pattern in which the usefulness is expected to be
consumed.




QUESTION :Allowance method - Correct Answer-recording bad debt expense and reducing accounts
receivable indirectly by crediting a contra account (allowance for uncollectible accounts) to accounts
receivable for an estimate of the amount that eventually will prove uncollectible.




QUESTION :American Institute of Accountants (AIA)/American Institute of Certified Public Accountants
(AICPA) - Correct Answer-national organization of professional public accountants.




QUESTION :Amortization - Correct Answer-cost allocation for intangibles.




QUESTION :Amortization schedule - Correct Answer-schedule that reflects the changes in the debt over
its term to maturity.




QUESTION :Annuity - Correct Answer-cash flows received or paid in the same amount each period.




QUESTION :Annuity due - Correct Answer-cash flows occurring at the beginning of each period.




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, QUESTION :Antidilutive securities - Correct Answer-the effect of the conversion or exercise of potential
common shares would be to increase rather than decrease, EPS.




QUESTION :Articles of incorporation - Correct Answer-statement of the nature of the firm's business
activities, the shares to be issued, and the composition of the initial board of directors.




QUESTION :Asset retirement obligations (AROs) - Correct Answer-obligations associated with the
disposition of an operational asset.




QUESTION :Assets - Correct Answer-probable future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events.




QUESTION :Asset turnover ratio - Correct Answer-measure of a company's efficiency in using assets to
generate revenue.




QUESTION :Assigning - Correct Answer-using receivables as collateral for loans; nonpayment of a debt
will require the proceeds from collecting the assigned receivables to go directly toward repayment of
the debt.




QUESTION :Attribution - Correct Answer-process of assigning the cost of benefits to the years during
which those benefits are assumed to be earned by employees.




QUESTION :Auditors - Correct Answer-independent intermediaries who help ensure that management
has appropriately applied GAAP in preparing the company's financial statements.




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