Test Bank For Intermediate Accounting, 15th Edition

Preview (16 of 1193 Pages)

100%

Purchase to unlock

Test Bank For Intermediate Accounting, 15th Edition - Page 1 preview image

Loading page ...

COMPREHENSIVE EXAMINATION APART 1(Chapters 1-6)Problem A-I—Multiple Choice.Choose thebestanswer for each of the following questions and enter the identifyingletter in the space provided.____1.How does failure to record accrued revenue distort the financial reports?a.It understates revenue, net income, and current assets.b.It understates net income, stockholders’ equity, and current liabilities.c.It overstates revenue, stockholders’ equity, and current liabilities.d.It understates current assets and overstates stockholders’ equity.____2.A contingent liability which is normally accrued isa.notes receivable discounted.b.accommodation endorsements on customer notes.c.additional compensation that may be payable on a dispute now beingarbitrated.d.estimated claims under a service warranty on new products sold.____3.Which of the following items is a current liability?a.Bonds due in three months (for which there is an adequate sinking fundclassified as a long-term investment).b.Bonds due in three years.c.Bonds (for which there is an adequate appropriation of retained earnings)due in eleven months.d.Bonds to be refunded when due in eight months, there being no doubtabout the marketability of the refunding issue.____4.On June 15, 2014 Stine Corporation accepted delivery of merchandise whichitpurchasedonaccount.AsofJune30Stinehadnotrecordedthetransaction or included the merchandise in its inventory. The effect of thiserror on its balance sheet for June 30, 2014 would bea.assets and stockholders’ equity were overstated but liabilities were notaffected.b.stockholders’ equity was the only item affected by the omission.c.assets and liabilities were understated but stockholders’ equity was notaffected.d.assets and stockholders’ equity were understated but liabilities were notaffected.____5.Reversing entries are most commonly used in relation to year-end adjustingentries thata.allocate the expired portion of a depreciable asset to expense.b.amortize intangible assets.c.provide for bad debt expense.d.accrue interest revenue on notes receivable.

Preview Mode

This document has 1193 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Intermediate Accounting, Volume 2, 10th Canadian Edition Solution Manual

Intermediate Accounting, Volume 2, 10th Canadian Edition Test Bank

Intermediate Accounting, Volume 2, 10th Canadian Edition Lecture Notes

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Accounting Audit Final Exam MCQs 2015

Team A Week 5 Problems

Sarbanes Oxley Act, GAAP and IFRS

Decision Making with Managerial Accounting

Company

Explore

Study Tools