中级会计1考试1题库

1、会计考试2Avestheequalityofthetotaldebitbalancesandtotalcreditbalancesofledgeraccountsafteralladjustmentshavebeenmade.c.isarequiredfinancialstatementundergenerallyacceptedaccountingprinciples.d.cannotbeusedtopreparefinancialstatements.Adjustingentriesarenecessaryto1obtainapropermatchingofrevenueandexpens

2、e.2achieveanaccuratestatementofassetsandequities.3adjustassetsandliabilitiestotheirfairmarketvalue.1231and2Arevenuecollected,butnotearned.a.Prepaidexpenseb.Unearnedrevenuec.Accruedexpensed.Accruedrevenueaccruedexpensecanbestbedescribedasanamounta.paidandcurrentlymatchedwithearnings.b.paidandnotcurre

3、ntlymatchedwithearnings.c.notpaidandnotcurrentlymatchedwithearnings.d.notpaidandcurrentlymatchedwithearnings.Thedouble-entryaccountingsystemmeansa.Eachtransactionisrecordedwithtwojournalentries.b.Eachitemisrecordedinajournalentry,theninageneralledgeraccount.c.Thedualeffectofeachtransactionisrecorded

4、withadebitandacredit.d.Morethanoneoftheabove.whichofthefollowingisarecordableeventoritema.Changesinmanagerialpolicyb.Thevalueofhumanresourcesc.Changesinpersonneld.NoneoftheseAjournalentrytorecordareceiptofrentrevenueinadvancewillincludeaa.debittorentrevenue.b.credittorentrevenue.c.credittocash.d.cre

5、dittounearnedrent.Anexpenseincurred,butnotpaid.a.Prepaidexpenseb.Unearnedrevenuec.Accruedexpensed.AccruedrevenueFactorsthatshapeanaccountinginformationsystemincludethea.natureofthebusiness.b.sizeofthefirm.c.volumeofdatatobehandled.d.allofthese.Thedebitandcreditanalysisofatransactionnormallytakesplac

6、ea.beforeanentryisrecordedinajournal.b.whentheentryispostedtotheledger.c.whenthetrialbalanceisprepared.d.atsomeotherpointintheaccountingcycleAmaterialitemwhichisunusualinnatureorinfrequentinoccurrence,butnotbothshouldbeshownintheincomestatementDisclosedNetofTaxSeparately1.NoNo2.YesYes3.NoYes4.YesNo1

7、234Comprehensiveincomeincludesallofthefollowingexcepta.dividendrevenue.b.lossesondisposalofassets.c.investmentsbyowners.d.unrealizedholdinggains.DiscontinuanceofallproductionintheUnitedStates.ThemanufacturingoperationswererelocatedinMexico.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ord

8、inaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatementd.PriorperiodadjustmentTheprimaryadvantageofthepresentationandtheabsenceofmultiple-stepanyimplicationformatthatliesonetypeinofthesimplicityofrevenueorexpenseitemhaspriorityoveran

9、other.FCompaniesreporttheresultsofoperationsofacomponentofabusinessthatwillbedisposedofseparatelyfromcontinuingoperations.TWhichofthefollowingisneverclassifiedasanextraordinaryitema.Lossesfromamajorcasualty.b.Lossesfromanexpropriationofassets.c.Gainonasaleoftheonlysecurityinvestmentacompanyhaseverow

10、ned.d.Lossesfromexchangeortranslationofforeigncurrencies.Earningsmanagementgenerallymakesincomestatementinformationmoreusefulforpredictingfutureearningsandcashflows.FTheaccountantfortheOrionSalesCompanyispreparingtheincomestatementfor2007andthebalancesheetatDecember31,2007.TheJanuary1,2007merchandis

11、einventorybalancewillappeara.onlyasanassetonthebalancesheet.b.onlyinthecostofgoodssoldsectionoftheincomestatement.c.asadeductioninthecostofgoodssoldsectionoftheincomestatementandasacurrentassetonthebalancesheet.d.asanadditioninthecostofgoodssoldsectionoftheincomestatementandasacurrentassetonthebalan

12、cesheet.Whichofthefollowingisnotasellingexpensea.Advertisingexpenseb.OfficesalariesexpenseFreight-outStoresuppliesconsumedWhenacompanydiscontinuesanoperationanddisposesofthediscontinuedoperation(component),thetransactionshouldbeincludedintheincomestatementasagainorlossondisposalreportedasa.apriorper

13、iodadjustment.b.anextraordinaryitem.c.anamountaftercontinuingoperationsandbeforeextraordinaryitems.d.abulksaleofplantassetsincludedinincomefromcontinuingoperations.ThetrialbalancefortheStarshipEnterpriseInc.ispresentedbelow:Enterprise,Inc.TrialBalanceDec.31,2011Cash22,000PrepaidInsurance6,000Supplie

14、s12,000Equipment120,000AccountsPayable10,000NotesPayable80,000RetainedEarnings57,000Dividends15,000RentRevenue60,000SalariesExpense15,000InsuranceExpense9,000OtherExpense8,000207,000207,000Assumingthatnoyearendadjustmentsarenecessary,thenetincomefortheyearendedDecember31,2011wouldbe:$60,000$28,000$1

15、3,000$70,000SloppySecondsCorporationreceivedcashof$60,750onSeptember1,2010foroneyearsrentinadvanceandrecordedthetransactionwithacredittoRentRevenue.TheDecember31,2010adjustingentryisa.debitRentRevenueandcreditUnearnedRent,$20,250.b.debitRentRevenueandcreditUnearnedRent,$40,500.c.debitUnearnedRentand

16、creditRentRevenue,$20,250.d.debitCashandcreditUnearnedRent,$40,500.ySecondsCorporationreceivedcashof$60,750onSeptember1,2010foroneyearsrentinadvanceandrecordedthetransactionwithacredittoUnearnedRent.TheDecember31,2010adjustingentryisa.debitRentRevenueandcreditUnearnedRent,$20,250.b.debitRentRevenuea

17、ndcreditUnearnedRent,$40,500.c.debitUnearnedRentandcreditRentRevenue,$20,250.d.debitCashandcreditUnearnedRent,$40,500.Snead,Inc.incurredthefollowinginfrequentlossesduring2007:A$70,000write-downofequipmentleasedtoothers.A$40,000adjustmentofaccrualsonlong-termcontracts.A$60,000write-offofobsoleteinven

18、tory.Inits2007incomestatement,whatamountshouldSneadreportastotalinfrequentlossesthatarenotconsideredextraordinary$170,000.$130,000.$110,000.$100,000.DanNicholsonCorporationhasanextraordinarylossof$50,000,anunusualgainof$35,000,andataxrateof40%.AtwhatamountshouldDanNicholsonreporteachitema.Extraordin

19、arylossof$(50,000)andUnusualgainof$35,000b.Extraordinarylossof$(50,000)andUnusualgainof$21,000c.Extraordinarylossof$(30,000)andUnusualgainof$35,000d.Extraordinarylossof$(30,000)andUnusualgainof$21,000AtHallCompany,eventsandtransactionsduring2007includedthefollowing.Thetaxrateforallitemsis30%.1)Depre

20、ciationfor2005wasfoundtobeunderstatedby$30,000.2)Astrikebytheemployeesofasupplierresultedinalossof$25,000.3)TheinventoryatDecember31,2005wasoverstatedby$40,000.4)Aflooddestroyedabuildingthathadabookvalueof$500,000.Floodsareveryuncommoninthatarea.Theeffectoftheseeventsandtransactionson2007netincomene

21、toftaxwouldbe$17,500.$367,500.$388,500.$416,500.AreviewoftheDecember31,2007,financialstatementsofBadenCorporationrevealedthatunderthecaptionextraordinarylosses,Badenreportedatotalof$515,000.Furtheranalysisrevealedthatthe$515,000inlosseswascomprisedofthefollowingitems:1)Badenrecordedalossof$150,000in

22、curredintheabandonmentofequipmentformerlyusedinthebusiness.2)Inanunusualandinfrequentoccurrence,alossof$250,000wassustainedasaresultofhurricanedamagetoawarehouse.3)During2007,severalfactorieswereshutdownduringamajorstrikebyemployees,resultinginalossof$85,000.4)Uncollectibleaccountsreceivableof$30,00

23、0werewrittenoffasuncollectible.Ignoringincometaxes,whatamountoflossshouldBadenreportasextraordinaryonits2007incomestatement$150,000.$250,000.$400,000.$515,000.ColeCompany,withanapplicableincometaxrateof30%,reportednetincomeof$210,000.Includedinincomefortheperiodwasanextraordinarylossfromflooddamageo

24、f$30,000beforedeductingtherelatedtaxeffect.Thecompanysincomebeforeincometaxesandextraordinaryitemswasa.$240,000$300,000$330,000$231,000Nominalaccountsarealsocalleda.temporaryaccounts.b.permanentaccounts.c.realaccounts.d.noneofthese.Theendingretainedearningsbalanceisreportedonboththeretainedearningss

25、tatementandthebalancesheet.TrueAgeneraljournala.chronologicallyliststransactionsandotherevents,expressedintermsofdebitsandcredits.b.containsonerecordforeachoftheasset,liability,stockholdersequity,revenue,andexpenseaccounts.c.listsalltheincreasesanddecreasesineachaccountinoneplace.d.containsonlyadjus

26、tingentries.Unearnedrevenueonthebooksofonecompanyislikelytobea.aprepaidexpenseonthebooksofthecompanythatmadetheadvancepayment.b.anunearnedrevenueonthebooksofthecompanythatmadetheadvancepayment.c.anaccruedexpenseonthebooksofthecompanythatmadetheadvancepayment.d.anaccruedrevenueonthebooksofthecompanyt

27、hatmadetheadvancepayment.Anaccruedrevenuecanbestbedescribedasanamounta.collectedandcurrentlymatchedwithexpenses.b.collectedandnotcurrentlymatchedwithexpenses.c.notcollectedandcurrentlymatchedwithexpenses.d.notcollectedandnotcurrentlymatchedwithexpensesThebookvalueofanydepreciableassetisthedifference

28、betweenitscostanditssalvagevalue.FalseAjournalentrytorecordthesaleofinventoryonaccountwillincludeaa.debittoinventory.b.debittoaccountsreceivable.c.debittosales.d.credittocostofgoodssold.Debitalwaysmeansa.rightsideofanaccount.increase.decrease.noneofthese.Arevenuecollected,butnotearned.a.Prepaidexpen

29、seb.Unearnedrevenuec.Accruedexpensed.AccruedrevenueAgeneraljournalchronologicallyliststransactionsandotherevents,expressedintermsofdebitsandcreditstoaccounts.TrueWhichofthefollowingisachangeinaccountingprinciplea.Achangeintheestimatedservicelifeofmachineryb.AchangefromFIFOtoLIFOc.Achangefromstraight

30、-linetodouble-declining-balanced.AchangefromFIFOtoLIFOandachangefromstraight-linetodouble-declining-balanceAnitemthatshouldbeclassifiedasanextraordinaryitemisa.write-offofgoodwill.b.gainsfromtransactionsinvolvingforeigncurrencies.c.lossesfrommovingaplanttoanothercity.d.gainsfromacompanysellingtheonl

31、yinvestmentithaseverowned.Inordertobeclassifiedasanextraordinaryitemintheincomestatement,aneventortransactionshouldbea.unusualinnature,infrequent,andmaterialinamount.b.unusualinnatureandinfrequent,butitneednotbematerial.c.infrequentandmaterialinamount,butitneednotbeunusualinnature.d.unusualinnaturea

32、ndmaterial,butitneednotbeinfrequent.Obsoleteinventorywaswrittenoff.Thiswasthefirstlossofthistypeinthecompanyshistory.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatementd

33、.PriorperiodadjustmentPriorperiodadjustmentscaneitherbeaddedorsubtractedintheRetainedEarningsStatement.TrueThecompanyneglectedtorecorditsdepreciationinthepreviousyear.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinued

34、operationsc.Extraordinaryitemontheincomestatementd.PriorperiodadjustmentThecompanysoldoneofitswarehousesataloss.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatementd.Prio

35、rperiodadjustmentAnuninsuredcasualtylosswasincurredbythecompany.Thiswasthefirstlossofthistypeinthecompanys50-yearhistory.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatem

36、entd.PriorperiodadjustmentLossonthedisposalofacomponentofthebusiness.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatementd.PriorperiodadjustmentSloppySecondsCorporationre

37、ceivedcashof$60,750onSeptember1,2010foroneyearsrentinadvanceandrecordedthetransactionwithacredittoRentRevenue.TheDecember31,2010adjustingentryisa.debitRentRevenueandcreditUnearnedRent,$20,250.b.debitRentRevenueandcreditUnearnedRent,$40,500.c.debitUnearnedRentandcreditRentRevenue,$20,250.d.debitCasha

38、ndcreditUnearnedRent,$40,500.HootiandtheBlowfishreceiveinterestona$30,000,8%,5-yearnotereceivableeachApril1.AtDecember31,2010,Hootisadjustingentryshouldbe:a.DebitInterestReceivableandCreditInterestRevenuefor$1,800b.DebitInterestRevenueandCreditInterestReceivablefor$1,800c.DebitInterestReceivableandC

39、reditInterestRevenuefor$2,400d.DebitInterestRevenueandCreditInterestReceivablefor$2,400JamesBondCompanysubletaportionofitswarehouseforfiveyearsatanannualrentalof$24,000,beginningonSeptember1,2010.Thetenant,Goldfinger,paidoneyearsrentinadvance,whichBondrecordedasacredittoUnearnedRentalRevenue.Bondrep

40、ortsonacalendar-yearbasis.TheadjustmentonDecember31,2010forBondshouldbeentryUnearnedRentRevenueandCreditRentRevenuefor$8,000RentRevenueandCreditUnearnedRentRevenuefor$8,000UnearnedRentRevenueCreditRentRevenuefor$16,000SaturnCompanysweeklypayroll,paidonFriday,totalled$20,000onFriday,January4th.Employ

41、eesworka5-dayweek.TheyearendadjustmentonDecember31,shouldbea.DebitSalaryExpenseandCreditSalariesPayablefor$4,000b.DebitSalariesPayableandCreditSalaryExpensefor$4,000c.DebitSalaryExpenseandCreditSalariesPayablefor$16,000d.DebitSalariesExpenseandCreditCashfor$16,000CaliforniaDreamingCorporationpaidcas

42、hof$27,000onJune1,2010foroneyearsrentinadvanceandrecordedthetransactionwithadebittoRentExpense.TheDecember31,2010adjustingentryisa.debitPrepaidRentandcreditRentExpense,$11,250.b.debitPrepaidRentandcreditRentExpense,$15,750.c.debitRentExpenseandcreditPrepaidRent,$15,750.d.debitPrepaidRentandcreditCas

43、h,$11,250.MotownRecordsrentsawarehouseforfiveyearstostoretheirgoldrecordmusiccollectionatanannualrentalof$24,000,beginningonSeptember1,2010.Theypaytheowner,MichaelJordan,oneyearsrentinadvance,whichMotownrecordedasadebittoRentExpense.Motownreportsonacalendar-yearbasis.TheadjustmentonDecember31,2010fo

44、rMotownshouldbea.Noentryb.DebitRentExpenseandCreditPrepaidRentfor$8,000c.DebitPrepaidRentandCreditRentExpensefor$8,000d.DebitPrepaidRentandCreditRentExpensefor$16,000AbbaCorporationloaned$30,000toanothercorporationonDecember1,2010andreceiveda3-month,8%interest-bearingnotewithafacevalueof$30,000.What

45、adjustingentryshouldAbbamakeonDecember31,2010a.DebitInterestReceivableandcreditInterestRevenue,$600.b.DebitCashandcreditInterestRevenue,$200.c.DebitInterestReceivableandcreditInterestRevenue,$200.d.DebitCashandcreditInterestReceivable,$600.GrossbillingsformerchandisesoldbyOttoCompanytoitscustomersla

46、styearamountedto$15,720,000;salesreturnsandallowanceswere$370,000,salesdiscountswere$175,000,andfreight-outwas$140,000.NetsaleslastyearforOttoCompanywerea.$15,720,000.$15,350,000.$15,175,000.$15,035,000.AglerCorp.hadthefollowinginfrequenttransactionsduring2007:A$150,000gainfromsellingtheonlyinvestme

47、ntAglerhaseverowned.A$210,000gainonthesaleofequipment.A$70,000lossonthewrite-downofinventories.Inits2007incomestatement,whatamountshouldAglerreportastotalinfrequentnetgainsthatarenotconsideredextraordinary$80,000.$140,000.$290,000.$360,000.AreviewoftheDecember31,2007,financialstatementsofBadenCorpor

48、ationrevealedthatunderthecaptionextraordinarylosses,Badenreportedatotalof$515,000.Furtheranalysisrevealedthatthe$515,000inlosseswascomprisedofthefollowingitems:Badenrecordedalossof$150,000incurredintheabandonmentofequipmentformerlyusedinthebusiness.Inanunusualandinfrequentoccurrence,alossof$250,000w

49、assustainedasaresultofhurricanedamagetoawarehouse.3)During2007,severalfactorieswereshutdownduringamajorstrikebyemployees,resultinginalossof$85,000.4)Uncollectibleaccountsreceivableof$30,000werewrittenoffasuncollectible.Ignoringincometaxes,whatamountoflossshouldBadenreportasextraordinaryonits2007inco

50、mestatement$150,000.$250,000.$400,000.$515,000.Iftheinventoryaccountattheendoftheyearisunderstated,theeffectwillbetoa.overstatethegrossprofitonsales.b.understatethenetpurchases.c.overstatethecostofgoodssold.d.overstatethegoodsavailableforsale.Thedebitandcreditanalysisofatransactionnormallytakesplace

51、a.beforeanentryisrecordedinajournal.b.whentheentryispostedtotheledger.c.whenthetrialbalanceisprepared.d.atsomeotherpointintheaccountingcycle.Ageneraljournala.chronologicallyliststransactionsandotherevents,expressedintermsofdebitsandcredits.b.containsonerecordforeachoftheasset,liability,stockholderse

52、quity,revenue,andexpenseaccounts.c.listsalltheincreasesanddecreasesineachaccountinoneplace.d.containsonlyadjustingentries.Avesthatdebitsandcreditsareequalintheledger.b.suppliesalistingofopenaccountsandtheirbalancesthatareusedinpreparingfinancialstatements.c.isnormallypreparedthreetimesintheaccountin

53、gcycle.d.allofthese.Anexpenseincurred,butnotpaid.a.Prepaidexpenseb.Unearnedrevenuec.Accruedexpensed.AccruedrevenueTheendingretainedearningsbalanceisreportedonboththeretainedearningsstatementandthebalancesheet.TrueWhyarecertaincostsofdoingbusinesscapitalizedwhenincurredandthendepreciatedoramortizedov

54、ersubsequentaccountingcyclesa.Toreducethefederalincometaxliabilityb.Toaidmanagementincash-flowanalysisc.Tomatchthecostsofproductionwithrevenuesasearnedd.ToadheretotheaccountingconstraintofconservatismWhenanitemofrevenueiscollectedandrecordedinadvance,itisnormallycalleda(n)_revenue.a.accruedb.prepaid

55、unearnedcashStockholdersequityisnotaffectedbyalla.cashreceipts.dividends.revenues.expenses.Atthetimeacompanyprepaysacosta.itdebitsanassetaccounttoshowtheserviceorbenefititwillreceiveinthefuture.b.itdebitsanexpenseaccounttomatchtheexpenseagainstrevenuesearned.c.itscreditsaliabilityaccounttoshowtheobl

56、igationtopayfortheserviceinthefuture.d.morethanoneoftheabove.Astrengthoftheincomestatementascomparedtothebalancesheetisthatitemsthatcannotbemeasuredreliablycanbereportedintheincomestatement.FalseGainsorlossesfromexchangeortranslationofforeigncurrenciesarereportedasextraordinaryitems.FalseTheoccurren

57、cewhichmostlikelywouldhavenoeffecton2007netincome(assumingthatallamountsinvolvedarematerial)isthea.salein2007ofanofficebuildingcontributedbyastockholderin1983.b.collectionin2007ofareceivablefromacustomerwhoseaccountwaswrittenoffin2006byachargetotheallowanceaccount.c.settlementbasedonlitigationin2007

58、ofpreviouslyunrecognizeddamagesfromaseriousaccidentwhichoccurredin2005.d.worthlessnessdeterminedin2007ofstockpurchasedonaspeculativebasisin2003.Thecomponentsofothercomprehensiveincomecanbereportedinastatementofstockholdersequity.TrueIntraperiodtaxallocationrelatestheincometaxexpenseoftheperiodtothes

59、pecificitemsthatgiverisetotheamountofthetaxprovision.TrueThecompanyneglectedtorecorditsdepreciationinthepreviousyear.Indicatehowthisshouldbetreatedinthefinancialstatements.a.Ordinaryorunusual(butnotextraordinary)itemontheincomestatementb.Discontinuedoperationsc.Extraordinaryitemontheincomestatementd

60、.PriorperiodadjustmentSargeantPeppersCompanysaccountbalancesatDecember31,2010forAccountsReceivableandtherelatedAllowanceforDoubtfulAccountsare$460,000debitand$700credit,respectively.Fromanagingofaccountsreceivable,itisestimatedthat$13,900oftheDecember31receivableswillbeuncollectible.Thenecessaryadju