Intermediate Accounting Exam Bank
Course Introduction
Intermediate Accounting delves deeper into the principles and practices of financial accounting, building upon the foundations laid in introductory courses. The course focuses on the recognition, measurement, and reporting of assets, liabilities, equity, revenues, and expenses in accordance with generally accepted accounting principles (GAAP). Students will study complex topics such as income recognition, inventory valuation, long-term assets, current and long-term liabilities, and stockholders equity. Emphasis is placed on the preparation, analysis, and interpretation of financial statements, providing students with the technical expertise necessary for advanced accounting coursework and practical application in professional settings.
Recommended Textbook
Introduction to Managerial Accounting 8th Edition by Peter Brewer
Available Study Resources on Quizplus
21 Chapters
4046 Verified Questions
4046 Flashcards
Source URL: https://quizplus.com/study-set/3220 Page 2
Chapter 1: Managerial Accounting and Cost Concepts
Available Study Resources on Quizplus for this Chatper
299 Verified Questions
299 Flashcards
Source URL: https://quizplus.com/quiz/63784
Sample Questions
Q1) For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:
A)$46,200
B)$38,200
C)$8,000
D)$50,200
Answer: A
Q2) If 20,000 books are sold during the second quarter and this activity is within the relevant range, the company's expected contribution margin would be:
A)$300,000
B)$160,000
C)$860,000
D)$58,000
Answer: B
Q3) Committed fixed costs remain largely unchanged in the short run.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Job-Order Costing: Calculating Unit Product
Costs
Available Study Resources on Quizplus for this Chatper
292 Verified Questions
292 Flashcards
Source URL: https://quizplus.com/quiz/63783
Sample Questions
Q1) The predetermined overhead rate is closest to:
A)$18.47
B)$16.94
C)$16.90
D)$15.50
Answer: D
Q2) The estimated total manufacturing overhead is closest to:
A)$90,000
B)$275,000
C)$185,000
D)$90,004
Answer: B
Q3) Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job F is closest to:
A)$4,620
B)$12,780
C)$12,420
D)$8,160
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Job-Order Costing: Cost Flows and External Reporting
Available Study Resources on Quizplus for this Chatper
256 Verified Questions
256 Flashcards
Source URL: https://quizplus.com/quiz/63781
Sample Questions
Q1) The cost of goods manufactured is:
A)$82,000
B)$64,000
C)$71,000
D)$62,000
Answer: D
Q2) Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours.The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs.By how much was manufacturing overhead underapplied or overapplied for the year?
A)$15,000 overapplied
B)$15,000 underapplied
C)$2,250 overapplied
D)$2,250 underapplied
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/63780
Sample Questions
Q1) The unit product cost of Product N0 under activity-based costing is closest to:
A)$2,525.39 per unit
B)$2,434.27 per unit
C)$2,042.37 per unit
D)$2,996.06 per unit
Q2) An activity rated is computed for each product.
A)True
B)False
Q3) If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
A)$38.80 per DLH
B)$36.95 per DLH
C)$97.10 per DLH
D)$107.88 per DLH
Q4) When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Process Costing6 Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/63778
Sample Questions
Q1) The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
A)$13,570
B)$50,888
C)$30,660
D)$67,851
Q2) All of the following statements are correct when referring to process costing except:
A)Process costing would be appropriate for a jeweler who makes custom jewelry to order.
B)A process costing system has the same basic purposes as a job-order costing system.
C)Units produced are indistinguishable from each other.
D)Costs are accumulated by department.
Q3) What was the cost per equivalent unit for conversion during the month?
A)$5.45
B)$6.95
C)$4.00
D)$3.05
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/63776
Sample Questions
Q1) A company makes a single product that it sells for $16 per unit.Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%.If the company's actual sales are $224,000, its margin of safety is:
A)$32,000
B)$96,000
C)$128,000
D)$192,000
Q2) Derst Inc.sells a particular textbook for $140.Variable expenses are $25 per book.At the current volume of 6,000 books sold per year the company is just breaking even.Given these data, the annual fixed expenses associated with the textbook total:
A)$400,000
B)$690,000
C)$840,000
D)$150,000
Q3) In a CVP graph (sometimes called a break-even chart), unit volume is represented on the horizontal (X)axis and dollars on the vertical (Y)axis.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Variable Costing and Segment Reporting: Tools for Management
Available Study Resources on Quizplus for this Chatper
291 Verified Questions
291 Flashcards
Source URL: https://quizplus.com/quiz/63775
Sample Questions
Q1) The net operating income (loss)under absorption costing in Year 1 is closest to:
A)$126,000
B)$96,000
C)$26,000
D)$2,000
Q2) What is the net operating income for the month under absorption costing?
A)$8,800
B)$24,800
C)$1,700
D)$12,200
Q3) What is the unit product cost for the month under absorption costing?
A)$79 per unit
B)$95 per unit
C)$104 per unit
D)$88 per unit
Q4) Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Master Budgeting
Available Study Resources on Quizplus for this Chatper
236 Verified Questions
236 Flashcards
Source URL: https://quizplus.com/quiz/63774
Sample Questions
Q1) In the manufacturing overhead budget, the non-cash charges (such as depreciation)are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead.
A)True
B)False
Q2) The estimated finished goods inventory balance at the end of February is closest to:
A)$74,880
B)$362,160
C)$316,080
D)$287,280
Q3) Whitmer Corporation is working on its direct labor budget for the next two months.Each unit of output requires 0.05 direct labor-hours.The direct labor rate is $11.80 per direct labor-hour.The production budget calls for producing 7,100 units in February and 6,800 units in March.
Required:
Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Performance Measurement in Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/63770
Sample Questions
Q1) A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits.
A)True
B)False
Q2) Turk's return on investment for the year was:
A)4%
B)15%
C)36%
D)20%
Q3) The turnover for this year's investment opportunity considered alone is closest to:
A)16.67
B)0.06
C)0.28
D)3.60
Q4) All other things the same, an increase in unit sales will normally result in an increase in the return on investment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 11: Differential Analysis: The Key to Decision Making
Available Study Resources on Quizplus for this Chatper
203 Verified Questions
203 Flashcards
Source URL: https://quizplus.com/quiz/63769
Sample Questions
Q1) A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making.
A)True
B)False
Q2) Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap.The sale of these defective units will have no effect on the company's other sales.Which of the following costs is relevant in this decision?
A)$11 variable manufacturing cost
B)$19 unit product cost
C)$1 variable selling and administrative cost
D)$26 full cost
Q3) If the special order from Woolgar Symphony Orchestra is accepted, the financial advantage (disadvantage)Bharu for the year should be:
A)$40,000
B)($10,000)
C)($22,000)
D)($28,000)
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Capital Budgeting Decisions
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/63767
Sample Questions
Q1) The internal rate of return of the investment is closest to:
A)16%
B)18%
C)20%
D)22%
Q2) (Ignore income taxes in this problem.)Orbit Airlines is considering the purchase of a new $275,000 maintenance hangar.The new hangar has an estimated useful life of 5 years with an expected salvage value of $50,000.The new hangar is expected to generate cost savings of $90,000 per year in each of the 5 years.A $20,000 increase in working capital will also be needed for this new hangar.The working capital will be released at the end of the 5 years.Orbit's discount rate is 18%.What is the net present value of the new hangar?
A)$8,280
B)$9,440
C)$17,020
D)$28,280
Q3) The cost of capital is the average rate of return that the company earns on its investments.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 9: Flexible Budgets Standard Costs and Variance Analysis
Available Study Resources on Quizplus for this Chatper
461 Verified Questions
461 Flashcards
Source URL: https://quizplus.com/quiz/63771
Sample Questions
Q1) The spending variance for occupancy expenses in September would be closest to:
A)$10 F
B)$106 F
C)$10 U
D)$106 U
Q2) Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.
A)True
B)False
Q3) The net operating income in the flexible budget for September would be closest to:
A)$9,661
B)$5,367
C)$5,516
D)$10,360
Q4) The variable overhead efficiency variance for July is:
A)$600 U
B)$540 U
C)$540 F
D)$600 F
14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/63765
Sample Questions
Q1) An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:
A)an addition to net income of $1,000 in order to arrive at net cash provided by operating activities.
B)a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.
C)a deduction of $1,000 under investing activities.
D)an addition of $1,000 under financing activities.
Q2) Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts receivable would be subtracted from net income.
A)True
B)False
Q3) Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
289 Verified Questions
289 Flashcards
Source URL: https://quizplus.com/quiz/63764
Sample Questions
Q1) The company's average collection period for Year 2 is closest to:
A)35.7 days
B)1.1 days
C)1.0 days
D)35.2 days
Q2) Maraby Corporation's working capital (in thousands of dollars)at the end of Year 2 was closest to:
A)$260
B)$620
C)$360
D)$990
Q3) The working capital at the end of Year 2 is:
A)$850
B)$770
C)$400
D)$80
Q4) If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick)ratio.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Job-Order Costing: Cost Flows and External Reporting
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/63782
Sample Questions
Q1) In the Excel, or spreadsheet, approach to recording financial transactions, factory utility costs paid in cash are recorded as a decrease in the Cash column and as an increase in the Manufacturing Overhead column.
A)True
B)False
Q2) In the Excel, or spreadsheet, approach to recording financial transactions, the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate.
A)True
B)False
Q3) In the Excel, or spreadsheet, approach to recording financial transactions, direct labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Process Costing6 Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/63779
Sample Questions
Q1) What are the equivalent units for materials for the month in the first processing department?
A)975
B)8,250
C)9,300
D)7,100
Q2) From the standpoint of cost control, the FIFO method of process costing is superior to the weighted-average method.
A)True
B)False
Q3) What was the cost per equivalent unit for materials during the month?
A)$3.95
B)$4.50
C)$2.00
D)$5.00
Q4) Under the FIFO method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/63777
Sample Questions
Q1) Which of the following statements is true when referring to the high-low method of cost analysis?
A)The high-low method has no major weaknesses.
B)The high-low method is very hard to apply.
C)In essence, the high-low method draws a straight line through two data points.
D)The high-low method uses all of the available data to estimate fixed and variable costs.
Q2) The best estimate of the total variable cost per unit is:
A)$82.90
B)$128.50
C)$104.00
D)$125.00
Q3) Using the least-squares regression method, the estimate of the fixed component of maintenance cost per month is closest to:
A)$5,139
B)$2,806
C)$4,973
D)$2,738
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18:Flexible Budgets, Standard Costs, and Variance Analysis
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/63773
Sample Questions
Q1) The higher the denominator activity level used to compute the predetermined overhead rate, the higher the predetermined overhead rate.
A)True
B)False
Q2) A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.The company's choice of the denominator level of activity has no effect on the fixed manufacturing overhead budget variance.
A)True
B)False
Q3) The fixed overhead volume variance is:
A)$52,195 U
B)$65,195 U
C)$65,195 F
D)$52,195 F
Q4) An unfavorable volume variance means that the company operated at an activity level greater than that planned for the period.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Flexible Budgets, Standard Costs, and Variance Analysis
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/63772
Sample Questions
Q1) When recording the direct labor costs, the Cash account will increase (decrease)by:
A)$339,492
B)($318,780)
C)$318,780
D)($339,492)
Q2) When the direct labor cost is recorded, which of the following entries will be made?
A)($7,915)in the Labor Efficiency Variance column
B)$7,915 in the Labor Rate Variance column
C)$7,915 in the Labor Efficiency Variance column
D)($7,915)in the Labor Rate Variance column
Q3) When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?
A)($550)in the Materials Price Variance column
B)($550)in the Materials Quantity Variance column
C)$550 in the Materials Price Variance column
D)$550 in the Materials Quantity Variance column
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: A Capital Budgeting Decisions
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/63768
Sample Questions
Q1) The present value of an amount to be received in five years is exactly twice as large as the present value of an equal amount to be received in ten years.
A)True
B)False
Q2) (Ignore income taxes in this problem.)Domebo Corporation has entered into a 7 year lease for a piece of equipment.The annual payment under the lease will be $3,400, with payments being made at the beginning of each year.If the discount rate is 14%, the present value of the lease payments is closest to:
A)$9,511
B)$16,623
C)$20,877
D)$23,800
Q3) The higher the discount rate, the higher the present value of a given future cash flow. A)True
B)False
Q4) The present value of a cash flow increases as it moves further into the future.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: A Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/63766
Sample Questions
Q1) Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.
A)True
B)False
Q2) On the statement of cash flows, the sales adjusted to a cash basis would be:
A)$976,000
B)$982,000
C)$984,000
D)$980,000
Q3) On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:
A)$546,000
B)$536,000
C)$544,000
D)$540,000
To view all questions and flashcards with answers, click on the resource link above.
23