WGU D105 Intermediate Accounting III |PA |
Pre - Assessment | Actual Questions and
Answers Latest Updated
(Graded A+)
Correct
Incorrect
D105 Intermediate Accounting III | Pre - Assessment
1 of 34
Term
Company A needs to lease scaffolding for nine months. It enters into
an agreement to lease the scaffolding for six months, with an option to
extend the term for up to nine additional months in increments of three
months. It expects to complete the project in nine months.
How should the company record the lease?
Give this one a try later!
, Expense the lease payments as they are incurred.
These are short term and are an operating lease so these need to be
expensed instead of amortized
Decrease of $51,000
-Purchase of investment stock
$ 43,000
-Purchase of equipment
$ 40,000
-Cash proceeds from sale of equipment
$ 32,000
($32,000-$40,000-$43,000)
$8,000
($50,000/10 = $5,000
$5,000 *2 = $10,000
$50,000-$10,000 = $40,000
$40,000/5 =$8,000)
Increased by $9,000 (what you have paid is your right of use)
Don't know?
2 of 34
Term
,Company A (lessee) enters into a lease agreement with Company B
(lessor). The term of the lease is five years with monthly payments of
$1,500. Prior to the beginning of the lease, Company A paid $9,000 in
advance.
Which adjustment should be made by Company A to the value of the
right-of-use asset?
Give this one a try later!
$0
Increased by $9,000 (what you have paid is your right of use)
Payment of cash for equipment
Decrease of $51,000
-Purchase of investment stock
$ 43,000
-Purchase of equipment
$ 40,000
-Cash proceeds from sale of equipment
$ 32,000
($32,000-$40,000-$43,000)
Don't know?
3 of 34
, Term
Company A purchases wholly owned Subsidiary S. Company A and
Subsidiary S are currently reporting individual financial statements.
Which situation requires a change in reporting entity?
Give this one a try later!
Company A sells Subsidiary S to Company A merges with Subsidiary S
another entity. for operational efficiency.
Company A combines with
Company A outsources financial
Subsidiary S for financial
reporting to Subsidiary S.
statement reporting.
Don't know?
4 of 34
Term
A company switches from using the cash method to using the accrual
method to record revenue. As a result, sales are understated by
$20,000. Which entry should be made in the current period to record
this change?
Give this one a try later!
Pre - Assessment | Actual Questions and
Answers Latest Updated
(Graded A+)
Correct
Incorrect
D105 Intermediate Accounting III | Pre - Assessment
1 of 34
Term
Company A needs to lease scaffolding for nine months. It enters into
an agreement to lease the scaffolding for six months, with an option to
extend the term for up to nine additional months in increments of three
months. It expects to complete the project in nine months.
How should the company record the lease?
Give this one a try later!
, Expense the lease payments as they are incurred.
These are short term and are an operating lease so these need to be
expensed instead of amortized
Decrease of $51,000
-Purchase of investment stock
$ 43,000
-Purchase of equipment
$ 40,000
-Cash proceeds from sale of equipment
$ 32,000
($32,000-$40,000-$43,000)
$8,000
($50,000/10 = $5,000
$5,000 *2 = $10,000
$50,000-$10,000 = $40,000
$40,000/5 =$8,000)
Increased by $9,000 (what you have paid is your right of use)
Don't know?
2 of 34
Term
,Company A (lessee) enters into a lease agreement with Company B
(lessor). The term of the lease is five years with monthly payments of
$1,500. Prior to the beginning of the lease, Company A paid $9,000 in
advance.
Which adjustment should be made by Company A to the value of the
right-of-use asset?
Give this one a try later!
$0
Increased by $9,000 (what you have paid is your right of use)
Payment of cash for equipment
Decrease of $51,000
-Purchase of investment stock
$ 43,000
-Purchase of equipment
$ 40,000
-Cash proceeds from sale of equipment
$ 32,000
($32,000-$40,000-$43,000)
Don't know?
3 of 34
, Term
Company A purchases wholly owned Subsidiary S. Company A and
Subsidiary S are currently reporting individual financial statements.
Which situation requires a change in reporting entity?
Give this one a try later!
Company A sells Subsidiary S to Company A merges with Subsidiary S
another entity. for operational efficiency.
Company A combines with
Company A outsources financial
Subsidiary S for financial
reporting to Subsidiary S.
statement reporting.
Don't know?
4 of 34
Term
A company switches from using the cash method to using the accrual
method to record revenue. As a result, sales are understated by
$20,000. Which entry should be made in the current period to record
this change?
Give this one a try later!
