中级会计1考试1题库

会计考试2An adjusted trial balancea. is prepared after the financial statements are completed.b. proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made.c. is a required financial statement under generally accepted accounting principles.d. cannot be used to prepare financial statements.Adjusting entries are necessary to1obtain a proper matching of revenue and expense.2achieve an accurate statement of assets and equities.3adjust assets and liabilities to their fair market value.a. 1b. 2c. 3d. 1 and 2A revenue collected, but not earned.a. Prepaid expenseb. Unearned revenuec. Accrued expensed. Accrued revenueaccrued expense can best be described as an amounta. paid and currently matched with earnings.b. paid and not currently matched with earnings.c. not paid and not currently matched with earnings.d. not paid and currently matched with earnings.The double-entry accounting system meansa. Each transaction is recorded with two journal entries.b. Each item is recorded in a journal entry, then in a general ledger account.c. The dual effect of each transaction is recorded with a debit and a credit.d. More than one of the above.which of the following is a recordable event or itema. Changes in managerial policyb. The value of human resourcesc. Changes in personneld. None of theseA journal entry to record a receipt of rent revenue in advance will include aa. debit to rent revenue.b. credit to rent revenue.c. credit to cash.d. credit to unearned rent.An expense incurred, but not paid.a. Prepaid expenseb. Unearned revenuec. Accrued expensed. Accrued revenueFactors that shape an accounting information system include thea. nature of the business.b. size of the firm.c. volume of data to be handled.d. all of these.The debit and credit analysis of a transaction normally takes placea. before an entry is recorded in a journal.b. when the entry is posted to the ledger.c. when the trial balance is prepared.d. at some other point in the accounting cycleA material item which is unusual in nature or infrequent in occurrence, but not both should be shown in the income statementDisclosedNet of TaxSeparately1.NoNo2.YesYes3.NoYes4.YesNoa. 1b. 2c. 3d. 4Comprehensive income includes all of the following excepta. dividend revenue.b. losses on disposal of assets.c. investments by owners.d. unrealized holding gains.Discontinuance of all production in the United States. The manufacturing operations were relocated in Mexico. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentThe primary advantage of the multiple-step format lies in the simplicity of presentation and the absence of any implication that one type of revenue or expense item has priority over another.FCompanies report the results of operations of a component of a business that will be disposed of separately from continuing operations.TWhich of the following is never classified as an extraordinary itema. Losses from a major casualty.b. Losses from an expropriation of assets.c. Gain on a sale of the only security investment a company has ever owned.d. Losses from exchange or translation of foreign currencies.Earnings management generally makes income statement information more useful for predicting future earnings and cash flows.FThe accountant for the Orion Sales Company is preparing the income statement for 2007 and the balance sheet at December 31, 2007. The January 1, 2007 merchandiseinventory balance will appeara. only as an asset on the balance sheet.b. only in the cost of goods sold section of the income statement.c. as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet.d. as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.Which of the following is not a selling expensea. Advertising expenseb. Office salaries expensec. Freight-outd. Store supplies consumedWhen a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be included in the income statement as a gain or loss on disposal reported asa. a prior period adjustment.b. an extraordinary item.c. an amount after continuing operations and before extraordinary items.d. a bulk sale of plant assets included in income from continuing operations.The trial balance for the Starship Enterprise Inc. is presented below: Enterprise, Inc.Trial BalanceDec. 31, 2011Cash22,000Prepaid Insurance6,000Supplies12,000Equipment120,000Accounts Payable10,000Notes Payable80,000Retained Earnings57,000Dividends15,000Rent Revenue60,000Salaries Expense 15,000Insurance Expense 9,000Other Expense8,000207,000207,000Assuming that no year end adjustments are necessary, the net income for the year ended December 31, 2011 would be:a. $60,000b. $28,000c. $13,000d. $70,000Sloppy Seconds Corporation received cash of $60,750 on September 1, 2010 for one year’s rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2010 adjusting entry isa. debit Rent Revenue and credit Unearned Rent, $20,250.b. debit Rent Revenue and credit Unearned Rent, $40,500.c. debit Unearned Rent and credit Rent Revenue, $20,250.d. debit Cash and credit Unearned Rent, $40,500.y Seconds Corporation received cash of $60,750 on Septem ber 1, 2010 for one year’s rent in advance and recorded the transaction with a credit to Unearned Rent. The December 31, 2010 adjusting entry isa. debit Rent Revenue and credit Unearned Rent, $20,250.b. debit Rent Revenue and credit Unearned Rent, $40,500.c. debit Unearned Rent and credit Rent Revenue, $20,250.d. debit Cash and credit Unearned Rent, $40,500.Snead, Inc. incurred the following infrequent losses during 2007:A $70,000 write-down of equipment leased to others.A $40,000 adjustment of accruals on long-term contracts.A $60,000 write-off of obsolete inventory.In its 2007 income statement, what amount should Snead report as total infrequent losses that are not considered extraordinarya. $170,000.b. $130,000.c. $110,000.d. $100,000.Dan Nicholson Corporation has an extraordinary loss of $50,000, an unusual gain of $35,000, and a tax rate of 40%. At what amount should Dan Nicholson report each itema. Extraordinary loss of $(50,000) and Unusual gain of $35,000b. Extraordinary loss of $(50,000) and Unusual gain of $21,000c. Extraordinary loss of $(30,000) and Unusual gain of $35,000d. Extraordinary loss of $(30,000) and Unusual gain of $21,000At Hall Company, events and transactions during 2007 included the following. The tax rate for all items is 30%.1)Depreciation for 2005 was found to be understated by $30,000.2)A strike by the employees of a supplier resulted in a loss of $25,000.3)The inventory at December 31, 2005 was overstated by $40,000.4)A flood destroyed a building that had a book value of $500,000. Floods are very uncommon in that area.The effect of these events and transactions on 2007 net income net of tax would bea. $17,500.b. $367,500.c. $388,500.d. $416,500.A review of the December 31, 2007, financial statements of Baden Corporation revealed that under the caption "extraordinary losses," Baden reported a total of $515,000. Further analysis revealed that the $515,000 in losses was comprised of the following items:1)Baden recorded a loss of $150,000 incurred in the abandonment of equipment formerly used in the business.2)In an unusual and infrequent occurrence, a loss of $250,000 was sustained as a result of hurricane damage to a warehouse.3)During 2007, several factories were shut down during a major strike by employees, resulting in a loss of $85,000.4)Uncollectible accounts receivable of $30,000 were written off as uncollectible.Ignoring income taxes, what amount of loss should Baden report as extraordinary on its 2007 income statementa. $150,000.b. $250,000.c. $400,000.d. $515,000.Cole Company, with an applicable income tax rate of 30%, reported net income of $210,000. Included in income for the period was an extraordinary loss from flood damage of $30,000 before deducting the related tax effect. The company's income before income taxes and extraordinary items wasa. $240,000b. $300,000c. $330,000d. $231,000Nominal accounts are also calleda. temporary accounts.b. permanent accounts.c. real accounts.d. none of these.The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.TrueA general journala. chronologically lists transactions and other events, expressed in terms ofdebits and credits.b. contains one record for each of the asset, liability, stockholders’ equity, revenue, and expense accounts.c. lists all the increases and decreases in each account in one place.d. contains only adjusting entries.Unearned revenue on the books of one company is likely to bea. a prepaid expense on the books of the company that made the advance payment.b. an unearned revenue on the books of the company that made the advance payment.c. an accrued expense on the books of the company that made the advance payment.d. an accrued revenue on the books of the company that made the advance payment.An accrued revenue can best be described as an amounta. collected and currently matched with expenses.b. collected and not currently matched with expenses.c. not collected and currently matched with expenses.d. not collected and not currently matched with expensesThe book value of any depreciable asset is the difference between its cost and its salvage value.FalseA journal entry to record the sale of inventory on account will include aa. debit to inventory.b. debit to accounts receivable.c. debit to sales.d. credit to cost of goods sold.Debit always meansa. right side of an account.b. increase.c. decrease.d. none of these.A revenue collected, but not earned.a. Prepaid expenseb. Unearned revenuec. Accrued expensed. Accrued revenueA general journal chronologically lists transactions and other events, expressed in terms of debits and credits to accounts.TrueWhich of the following is a change in accounting principlea. A change in the estimated service life of machineryb. A change from FIFO to LIFOc. A change from straight-line to double-declining-balanced. A change from FIFO to LIFO and a change from straight-line to double-declining- balanceAn item that should be classified as an extraordinary item isa. write-off of goodwill.b. gains from transactions involving foreign currencies.c. losses from moving a plant to another city.d. gains from a company selling the only investment it has ever owned.In order to be classified as an extraordinary item in the income statement, an event or transaction should bea. unusual in nature, infrequent, and material in amount.b. unusual in nature and infrequent, but it need not be material.c. infrequent and material in amount, but it need not be unusual in nature.d. unusual in nature and material, but it need not be infrequent.Obsolete inventory was written off. This was the first loss of this type in the company's history. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentPrior period adjustments can either be added or subtracted in the Retained Earnings Statement.TrueThe company neglected to record its depreciation in the previous year. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentThe company sold one of its warehouses at a loss. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentAn uninsured casualty loss was incurred by the company. This was the first loss ofthis type in the company's 50-year history. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentLoss on the disposal of a component of the business. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentSloppy Seconds Corporation received cash of $60,750 on September 1, 2010 for one year’s rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2010 adjusting entry isa. debit Rent Revenue and credit Unearned Rent, $20,250.b. debit Rent Revenue and credit Unearned Rent, $40,500.c. debit Unearned Rent and credit Rent Revenue, $20,250.d. debit Cash and credit Unearned Rent, $40,500.Hooti and the Blowfish receive interest on a $30,000, 8%, 5-year note receivable each April 1. At December 31, 2010, Hooti’s adjusting entry should be:a. Debit Interest Receivable and Credit Interest Revenue for $1,800b. Debit Interest Revenue and Credit Interest Receivable for $1,800c. Debit Interest Receivable and Credit Interest Revenue for $2,400d. Debit Interest Revenue and Credit Interest Receivable for $2,400James Bond Company sublet a portion of its warehouse for five years at an annual rental of $24,000, beginning on September 1, 2010. The tenant, Goldfinger, paid one year's rent in advance, which Bond recorded as a credit to Unearned Rental Revenue. Bond reports on a calendar-year basis. The adjustment on December 31, 2010 for Bond should beentryUnearned Rent Revenue and Credit Rent Revenue for $8,000Rent Revenue and Credit Unearned Rent Revenue for $8,000Unearned Rent Revenue Credit Rent Revenue for $16,000Saturn Company’s weekly payroll, paid on Friday, totalled $20,000 on Friday, January 4th. Employees work a 5-day week. The year end adjustment on December 31, should bea. Debit Salary Expense and Credit Salaries Payable for $4,000b. Debit Salaries Payable and Credit Salary Expense for $4,000c. Debit Salary Expense and Credit Salaries Payable for $16,000d. Debit Salaries Expense and Credit Cash for $16,000California Dreaming Corporation paid cash of $27,000 on June 1, 2010 for one year’s rent in advance and recorded the transaction with a debit to Rent Expense. The December 31, 2010 adjusting entry isa. debit Prepaid Rent and credit Rent Expense, $11,250.b. debit Prepaid Rent and credit Rent Expense, $15,750.c. debit Rent Expense and credit Prepaid Rent, $15,750.d. debit Prepaid Rent and credit Cash, $11,250.Motown Records rents a warehouse for five years to store their gold record music collection at an annual rental of $24,000, beginning on September 1, 2010. They pay the owner, Michael Jordan, one year's rent in advance, which Motown recorded as a debit to Rent Expense. Motown reports on a calendar-year basis. The adjustment on December 31, 2010 for Motown should bea. No entryb. Debit Rent Expense and Credit Prepaid Rent for $8,000c. Debit Prepaid Rent and Credit Rent Expense for $8,000d. Debit Prepaid Rent and Credit Rent Expense for $16,000Abba Corporation loaned $30,000 to another corporation on December 1, 2010 and received a 3-month, 8% interest-bearing note with a face value of $30,000. What adjusting entry should Abba make on December 31, 2010a. Debit Interest Receivable and credit Interest Revenue, $600.b. Debit Cash and credit Interest Revenue, $200.c. Debit Interest Receivable and credit Interest Revenue, $200.d. Debit Cash and credit Interest Receivable, $600.Gross billings for merchandise sold by Otto Company to its customers last year amounted to $15,720,000; sales returns and allowances were $370,000, sales discounts were $175,000, and freight-out was $140,000. Net sales last year for Otto Company werea. $15,720,000.b. $15,350,000.c. $15,175,000.d. $15,035,000.Agler Corp. had the following infrequent transactions during 2007:A $150,000 gain from selling the only investment Agler has ever owned.A $210,000 gain on the sale of equipment.A $70,000 loss on the write-down of inventories.In its 2007 income statement, what amount should Agler report as total infrequent net gains that are not considered extraordinarya. $80,000.b. $140,000.c. $290,000.d. $360,000.A review of the December 31, 2007, financial statements of Baden Corporation revealed that under the caption "extraordinary losses," Baden reported a total of $515,000. Further analysis revealed that the $515,000 in losses was comprised of the following items:1) Baden recorded a loss of $150,000 incurred in the abandonment of equipment formerly used in the business.2) In an unusual and infrequent occurrence, a loss of $250,000 was sustained asa result of hurricane damage to a warehouse.3) During 2007, several factories were shut down during a major strike by employees, resulting in a loss of $85,000.4) Uncollectible accounts receivable of $30,000 were written off as uncollectible.Ignoring income taxes, what amount of loss should Baden report as extraordinary on its 2007 income statementa. $150,000.b. $250,000.c. $400,000.d. $515,000.If the inventory account at the end of the year is understated, the effect will be toa. overstate the gross profit on sales.b. understate the net purchases.c. overstate the cost of goods sold.d. overstate the goods available for sale.The debit and credit analysis of a transaction normally takes placea. before an entry is recorded in a journal.b. when the entry is posted to the ledger.c. when the trial balance is prepared.d. at some other point in the accounting cycle.A general journala. chronologically lists transactions and other events, expressed in terms of debits and credits.b. contains one record for each of the asset, liability, stockholders’ equity, revenue, and expense accounts.c. lists all the increases and decreases in each account in one place.d. contains only adjusting entries.A trial balancea. proves that debits and credits are equal in the ledger.b. supplies a listing of open accounts and their balances that are used in preparing financial statements.c. is normally prepared three times in the accounting cycle.d. all of these.An expense incurred, but not paid.a. Prepaid expenseb. Unearned revenuec. Accrued expensed. Accrued revenueThe ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.TrueWhy are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cyclesa. To reduce the federal income tax liabilityb. To aid management in cash-flow analysisc. To match the costs of production with revenues as earnedd. To adhere to the accounting constraint of conservatismWhen an item of revenue is collected and recorded in advance, it is normally called a(n) ___________ revenue.a. accruedb. prepaidc. unearnedd. cashStockholders’ equity is not affected by alla. cash receipts.b. dividends.c. revenues.d. expenses.At the time a company prepays a costa. it debits an asset account to show the service or benefit it will receive in the future.b. it debits an expense account to match the expense against revenues earned.c. its credits a liability account to show the obligation to pay for the service in the future.d. more than one of the above.A strength of the income statement as compared to the balance sheet is that items that cannot be measured reliably can be reported in the income statement.Gains or losses from exchange or translation of foreign currencies are reported as extraordinary items.FalseThe occurrence which most likely would have no effect on 2007 net income (assuming that all amounts involved are material) is thea. sale in 2007 of an office building contributed by a stockholder in 1983.b. collection in 2007 of a receivable from a customer whose account was written off in 2006 by a charge to the allowance account.c. settlement based on litigation in 2007 of previously unrecognized damages from a serious accident which occurred in 2005.d. worthlessness determined in 2007 of stock purchased on a speculative basis in 2003.The components of other comprehensive income can be reported in a statement of stockholders’ equity.TrueIntraperiod tax allocation relates the income tax expense of the period to the specific items that give rise to the amount of the tax provision.The company neglected to record its depreciation in the previous year. Indicate how this should be treated in the financial statements.a. Ordinary or unusual (but not extraordinary) item on the income statementb. Discontinued operationsc. Extraordinary item on the income statementd. Prior period adjustmentSargeant Pepper’s Company's account balances at Decemb er 31, 2010 for Accounts Receivable and the related Allowance for Doubtful Accounts are $460,000 debit and $700 credit, respectively. From an aging of accounts receivable, it is estimated that $13,900 of the December 31 receivables will be uncollectible. The necessary adjusting entry would include a credit to the allowance account fora. $12,500.b. $13,200.c. $11,800.d. $700.Motown Records rents a warehouse for five years to store their gold record musiccollection at an annual rental of $24,000, beginning on September 1, 2010. They pay the owner, Michael Jordan, one year's rent in advance, which Motown recorded as a debit to Rent Expense. Motown reports on a calendar-year basis. The adjustment on December 31, 2010 for Motown should bea. No entryb. Debit Rent Expense and Credit Prepaid Rent for $8,000c. Debit Prepaid Rent and Credit Rent Expense for $8,000d. Debit Prepaid Rent and Credit Rent Expense for $16,000Jumping Jack Flash Company recorded journal entries for the issuance of common stock for $25,000, the payment of $10,000 on accounts payable, and the payment of salaries expense of $4,000. What net effect do these entries have on owners’ equitya. Increase of $25,000.b. Increase of $15,000.c. Increase of $21,000.d. Increase of $11,000.During the first year of James Taylor Co.'s operations, all purchases were recorded as assets. Store supplies in the amount of $19,350 were purchased. Actual year-end store supplies amounted to $6,450. The adjusting entry for store supplies willa. decrease net income by $12,900.b. decrease expenses by $12,900.c. decrease store supplies by $6,450.d. debit Accounts Payable for $6,450Fleming Company has the following items: write-down of inventories, $240,000; loss on disposal of Sports Division, $370,000; and loss due to an expropriation, $226,000. Ignoring income taxed, what total amount should Fleming Company report as extraordinary lossesa. $226,000b. $370,000c. $446,000d. $596,000Sam Hurd Company has the following items: write-down of inventories, $120,000; loss on disposal of Sports Division, $185,000; and loss due to strike, $113,000. Ignoring income taxes, what total amount should Sam Hurd Company report as extraordinary lossesa. $ -0-.b. $185,000.c. $233,000.d. $298,000If plant assets of a manufacturing company are sold at a gain of $820,000 less related taxes of $250,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects asa. a gain of $820,000 and an increase in income tax expense of $250,000.b. operating income net of applicable taxes, $570,000.c. a prior period adjustment net of applicable taxes, $570,000.d. an extraordinary item net of applicable taxes, $570,000.If plant assets of a manufacturing company are sold at a gain of $820,000 less related taxes of $250,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects asa. a gain of $820,000 and an increase in income tax expense of $250,000.b. operating income net of applicable taxes, $570,000.c. a prior period adjustment net of applicable taxes, $570,000.d. an extraordinary item net of applicable taxes, $570,000.Snead, Inc. incurred the following infrequent losses during 2007:A $70,000 write-down of equipment leased to others.A $40,000 adjustment of accruals on long-term contracts.A $60,000 write-off of obsolete inventory.In its 2007 income statement, what amount should Snead report as total infrequent losses that are not considered extraordinarya. $170,000.b. $130,000.c. $110,000.d. $100,000.1. (Points:The financial statements most frequently provided include all of the following except thea. balance sheet.b. income statement.c. statement of cash flows.d. statement of retained earnings.吴晓波 10:14:04 PMThe Governmental Accounting Standards Boarda. oversees the activities of the SEC.b. is a private-sector body, which addresses state and local governmental reporting issues.c. is a division of the Securities and Exchange Commission, which oversees the corpo-rate accounting in annual reports.d. was terminated when the Financial Accounting Standards Board was created.奇奇 10:14:07 PMD奇奇 10:16:56 PMc周律君 10:16:56 PMc吴晓波 10:16:59 PMWhich of the following statements is not an objective of financial reportinga. Provide information that is useful in investment and credit decisions.b. Provide information about enterprise resources, claims to those resources, and changes to them.c. Provide information on the liquidation value of an enterprise.d. Provide information that is useful in assessing cash flow prospects.奇奇 10:17:41 PMc陈庚岸 10:17:39 PMc吴晓波 10:17:40 PM4. (Points:An effective capital allocation processa. promotes productivity.b. encourages innovation.c. provides an efficient market for buying and selling securities.d. all of these.奇奇 10:18:01 PMd吴晓波 10:18:00 PM。