Intermediate Accounting Exam Review
Course Introduction
Intermediate Accounting delves into the principles, standards, and procedures underlying the preparation and analysis of financial statements in accordance with generally accepted accounting principles (GAAP). This course builds on foundational accounting concepts, focusing on more complex transactions such as revenue recognition, inventory valuation, long-term assets, liabilities, and shareholders' equity. Students will sharpen their analytical skills by interpreting and applying accounting standards, constructing financial reports, and evaluating disclosure requirements. Emphasis is placed on problem-solving, real-world case studies, and ethical considerations to prepare students for advanced accounting roles and professional certification exams.
Recommended Textbook
Managerial Accounting 2nd Edition by Karen W. Braun
Available Study Resources on Quizplus 14 Chapters
2698 Verified Questions
2698 Flashcards
Source URL: https://quizplus.com/study-set/3504
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69606
Sample Questions
Q1) An example of the IMA's credibility standard is to:
A)abstain from engaging in or supporting any activity that might discredit the profession.
B)communicate information fairly and objectively.
C)keep information confidential except when disclosure is legally required.
D)provide decision support that is accurate,clear,concise and timely.
Answer: B
Q2) The philosophy of providing superior goods and services is:
A)ERP.
B)JIT.
C)Supply-chain management.
D)TQM.
Answer: D
Q3) Which reflects a philosophy of providing customers with superior products and services?
A)ERP
B)XBRL
C)TQM
D)IFRS
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Building Blocks of Managerial Accounting
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/69605
Sample Questions
Q1) A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars.Which of the following costs would NOT be relevant to its decision?
A)The cost per gallon of gasoline
B)The purchase price of the hybrid model
C)The purchase price of the gasoline-engine model
D)The book value of the current fleet of sales vehicles
Answer: D
Q2) Why do service firms not have inventory costs pertaining to items to be sold? What type of costs do they have?
Answer: Service firms do not have inventory costs because services cannot be produced today and stored up to sell later.They do not have inventory.They only have period costs that are expensed.
Q3) What is the total cost for the marketing category of the value chain?
A)$227,000
B)$218,000
C)$67,000
D)$311,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Job Costing
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/69604
Sample Questions
Q1) Cost of goods sold is debited and finished goods inventory is credited for:
A)purchase of goods on account.
B)transfer of goods to the finished goods storeroom.
C)the sale of goods to a customer.
D)transfer of materials into work in process inventory.
Answer: C
Q2) Manufacturers follow four steps to implement a manufacturing overhead allocation system.Which step is NOT performed before the year begins?
A)Select an allocation base and estimate the total amount that will be used during the year.
B)Allocate some manufacturing overhead to each individual job.
C)Estimate total manufacturing overhead costs for the coming year.
D)Calculate a predetermined manufacturing overhead rate.
Answer: B
Q3) Which of these documents are used to accumulate the costs of a job?
A)Labor time record
B)Materials inventory requisition form
C)Job cost record
D)Bill of materials
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Activity-Based Costing, lean Production, and the Costs of Quality
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69603
Sample Questions
Q1) The estimated total manufacturing overhead costs that will be incurred in each department in the coming year are often referred to as activity cost pools.
A)True
B)False
Q2) What is the first step in developing an ABC system?
A)Identify the primary activities and estimate a total cost pool for each.
B)Allocate the costs to the cost object using the activity cost allocation rates.
C)Select an allocation base for each activity.
D)Calculate an activity cost allocation rate for each activity.
Q3) The cost of product liability claims is an example of a(n):
A)appraisal cost.
B)external failure cost.
C)internal failure cost.
D)prevention cost.
Q4) The cost of inspection at various stages of production is an example of a(n):
A)appraisal cost.
B)prevention cost.
C)internal failure cost.
D)external failure cost.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Process Costing
Available Study Resources on Quizplus for this Chatper
224 Verified Questions
224 Flashcards
Source URL: https://quizplus.com/quiz/69602
Sample Questions
Q1) The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials inventory.
A)True
B)False
Q2) In a process costing system,the number of WIP inventories:
A)equals the number of products produced.
B)equals the number of production departments.
C)equals the number used in a job cost system.
D)cannot equal the number of parts used in the product
Q3) ABC produces ping pong balls using a three-step process that includes molding,coloring and finishing.Which account is credited when the balls are totally completed?
A)Finished goods inventory
B)WIP inventory-finishing
C)Manufacturing overhead
D)WIP inventory-coloring
Q4) The production equivalent unit report summarizes all costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Cost Behavior
Available Study Resources on Quizplus for this Chatper
266 Verified Questions
266 Flashcards
Source URL: https://quizplus.com/quiz/69601
Sample Questions
Q1) If a regression analysis shows an R factor of .85 exists,it is safe to assume:
A)a strong positive relationship between cost and volume.
B)a strong negative relationship between cost and volume.
C)no relationship between cost and volume.
D)a perfect positive relationship between cost and volume .
Q2) Using the high-low method,the fixed costs for a month are:
A)$ 1,000.
B)$10,400.
C)$ 1,200.
D)$ 4,800.
Q3) If Toby prepares a contribution margin income statement for the month of June,what would be his operating income?
A)$48,200
B)$108,000
C)$160,000
D)$56,000
Q4) When graphing total variable costs,the cost line always begins at the origin.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/69600
Sample Questions
Q1) Coodson Company sells two products,Quartz models and Wind-up models.McDaniel predicts that it will sell 7,200 Quartz models and 5,600 Wind-up models in the next period.The unit contribution margins for Quartz models and Wind-up models are $31 and $63,respectively.What is the weighted-average unit contribution margin?
A)$ 0.02
B)$ 45.00
C)$360.00
D)$ 23.14
Q2) Contribution margin ratio is computed by dividing:
A)contribution margin by sales revenue.
B)contribution margin by operating income.
C)sales revenue by contribution margin.
D)operating income by contribution margin.
Q3) Which of the following statements is TRUE if the variable cost per unit decreases while the sales price per unit and total fixed costs remain constant?
A)The contribution margin increases and the breakeven point decreases.
B)The contribution margin decreases and the breakeven point decreases.
C)The contribution margin increases and the breakeven point increases.
D)The contribution margin decreases and the breakeven point increases.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Short Term Business Decisions
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69599
Sample Questions
Q1) If Andrew Corporation buys the part,what is the most Andrew Corporation can spend per unit so that their operating income remains the same as it is currently?
A)$5.70
B)$1.50
C)$1.65
D)$4.10
Q2) Label each item below as relevant or irrelevant in making a decision.
a)The cost of insurance on a new vehicle when deciding to buy a new vehicle
b)Cost of roof repair made on rental property last year
c)Original cost of old equipment that is being evaluated for replacement
d)Cost of new equipment under evaluation to replace used equipment
e)Accumulated depreciation on old equipment being evaluated for replacement
f)Cost of previous year's insurance policy on old equipment being evaluated for replacement
Q3) Which of the following affects stockholders' expectations of company profits?
A)Industry risk
B)General economic conditions
C)Historical company earnings
D)All of the above
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: The Master Budget and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/69598
Sample Questions
Q1) A rolling budget is a budget that:
A)is continuously updated,so that the next 12 months of operations are always budgeted.
B)extends 5-10 years into the future.
C)begins with zero for each expense,and then amounts are added in.
D)is rolled out by upper management.
Q2) Dell's payroll department preparing its budget based upon payroll expenses would be a(n):
A)cost center.
B)investment center.
C)profit center.
D)revenue center.
Q3) Atwood Lake Boats has budgeted sales for June and July at $420,000 and $480,000,respectively.Sales are 80% credit,of which 40% is collected in the month of sale and 60% is collected in the following month.What is the accounts receivable balance on July 31?
A)$201,600
B)$230,400
C)$384,000
D)$288,000
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
204 Verified Questions
204 Flashcards
Source URL: https://quizplus.com/quiz/69597
Sample Questions
Q1) What is the direct labor price variance?
A)$120 favorable
B)$120 unfavorable
C)$125 favorable
D)$125 unfavorable
Q2) When assigning direct labor costs to the production process,which of the following shows the effect on work in process inventory?
A)Credited for standard quantity usage of direct labor for actual production times actual cost per hour
B)Debited for actual quantity of direct labor times standard cost per hour
C)Credited for standard quantity of direct labor used for actual production times standard cost per hour
D)Debited for standard quantity of direct labor used for actual production times standard cost per hour
Q3) A static budget is a budget prepared for multiple volume levels.
A)True
B)False
Q4) Identify five benefits of standard costs.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/69596
Sample Questions
Q1) The duties of an investment center manager are similar to those of a CFO.
A)True
B)False
Q2) The human resources department for car dealership is likely to be classified as a(n):
A)cost center.
B)investment center.
C)profit center.
D)revenue center.
Q3) What is the division's Residual Income (RI)?
A)$472,500
B)$600,000
C)$690,000
D)$300,000
Q4) Comparing actual results to the results of competitors and comparing actual results to industry standards would be an example of:
A)promoting goal congruence and coordination.
B)motivating managers.
C)providing feedback.
D)benchmarking.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Capital Investment Decisions and the Time
Value of Money
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/69595
Sample Questions
Q1) Assuming an interest rate of 6%,the present value of $16,000 received at the end of each year for 6 years would be closest to:
A)$ 10,640.
B)$ 78,672.
C)$111,600.
D)$128,000.
Q2) A company finds that the residual value of $10,000 for the equipment in a capital budgeting project has been inadvertently omitted from the calculation of the net present value (NPV)for that project.How does this omission affect the NPV of that project?
A)The project's NPV should be $10,000 higher with the residual value included.
B)The project's NPV should be higher,but be less than $10,000 higher,with the residual value included.
C)The project's NPV should be $10,000 lower with the residual value included.
D)The project's NPV should be lower,but be less than $10,000 lower,with the residual value included.
Q3) Choosing among alternative capital investments is called capital rationing.
A)True
B)False
Page 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
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/69594
Sample Questions
Q1) Buying and selling property,plant and equipment would be considered in:
A)the operating portion of the statement of cash flows.
B)the investing portion of the statement of cash flows.
C)the financing portion of the statement of cash flows.
D)none of the above portions of the statement of cash flows.
Q2) The following data relate to Wise Enterprises for last year: \[\begin{array} { | l | c c | }
\hline \text { Operating incume } & \$ & 108,000 \\
\hline \text { Net increase in all current assets except cash } & \$ & 12,000 \\
\hline \text { Net increase in current liabilities } & \$ & 38,000 \\
\hline \text { Cash dividends paid an common stock } & \$ & 15,000 \\
\hline \text { Loss an sale of investments } & \$ & 4,000 \\
\hline \text { Depreciation expense } & \$ & 6,000 \\
\hline
\end{array}\] What is the net cash provided by operating activities for last year on the statement of cash flows for Wise Enterprises?
A)$121,000
B)$124,000
C)$144,000
D)$151,000
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
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/69593
Sample Questions
Q1) What would a horizontal analysis report with respect to selling/general expenses?
A)The current ratio is: 1.14.
B)There was an 11.11% increase from prior to current year.
C)There was a 10% decrease from prior to current year.
D)Selling/general expenses are 8.27% of net sales revenue.
Q2) What would a vertical analysis report with respect to current year net income before income tax and income tax expense?
A)Net income before tax of 20% and income tax of 1.00% of net sales revenue
B)An increase of both net income before income tax and income tax of 20%
C)An increase of $24,000 in net income before tax
D)An increase of $120,000 from prior to current year
Q3) Which company has the better relationship percentage-wise between selling and general expenses compared to net sales revenue?
A)Impossible to determine
B)Both have the same relationship
C)Johnston
D)Haley
To view all questions and flashcards with answers, click on the resource link above.
Page 16