International Accounting Test Questions
Course Introduction
International Accounting explores the fundamental principles and practices of accounting in a global context, examining how different countries' accounting standards, regulations, and cultural influences impact financial reporting and decision-making. The course covers the convergence of International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), the challenges of consolidating financial statements across borders, foreign currency transactions, and the role of international regulatory bodies. Students will analyze case studies, evaluate the implications of diverse accounting practices on multinational corporations, and gain the skills necessary to interpret and apply international accounting information in a global business environment.
Recommended Textbook
Advanced Accounting 13th Edition By
Joe Ben Hoyle
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38 Chapters
3570 Verified Questions
3570 Flashcards
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Page 2
Chapter 1: The Equity Method of Accounting for Investments
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Sample Questions
Q1) Jarmon Company owns twenty-three percent (23%) of the voting common stock of Kaleski Corp.Jarmon does not have the ability to exercise significant influence over the operations of Kaleski.What method should Jarmon use to account for its investment in Kaleski?
Answer: The fair-value method should be used. Generally, ownership of more than twenty percent (20%) of the voting common stock would be presumed to carry significant influence and would require use of the equity method. The equity method is not appropriate in this case because of the lack of the ability to exercise significant influence.
Q2) How much income did Mehan report from Cook during 2018?
A) $90,000.
B) $110,000.
C) $67,500.
D) $87,500.
E) $78,750.
Answer: D
Q3) What was the balance in the Investment in Nicole Corp.account at December 31, 2018?
Answer: [$503,000 + $36,660 - ($40,000 × .4)] = $523,660
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Chapter 1: A: the Equity Method of Accounting for Investments
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Sample Questions
Q1) On January 2, 2018, Heinreich Co.paid $500,000 for 25% of the voting common stock of Jones Corp.At the time of the investment, Jones had net assets with a book value and fair value of $1,800,000.During 2018, Jones incurred a net loss of $60,000 and paid dividends of $100,000.Any excess cost over book value is attributable to goodwill with an indefinite life.
Required:
1) Prepare a schedule to show the amount of goodwill from Heinrich's investment in Jones.
2) Prepare a schedule to show the balance in Heinreich's investment account at December 31, 2018.
Answer: 11ea7e46_dcee_5a70_ab1f_b911cb0e675d_TB2563_00
Q2) What was the balance in the investment account before the shares were sold?
A) $1,560,000.
B) $1,600,000.
C) $1,700,000.
D) $1,800,000.
E) $1,860,000.
Answer: A
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Chapter 2: Consolidation of Financial Information
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Sample Questions
Q1) For acquisition accounting, why are assets and liabilities of the subsidiary consolidated at fair value?
Answer: The acquisition transaction is assumed to occur through an orderly transaction between market participants at the measurement date of the acquisition. Thus identified assets and liabilities acquired have been assigned fair value for the transfer to the acquirer and this is a relevant and faithful representation for consolidation.
Q2) Describe the accounting for direct costs, indirect costs, and issuance costs under the acquisition method of accounting for a business combination.
Answer: Direct and indirect combination costs are expensed and issuance costs reduce the otherwise fair value of the consideration issued under the acquisition method of accounting for business combinations.
Q3) Prepare the journal entries to record: (1) the issuance of stock by Jode; and (2) the payment of the combination costs.
Answer: Entry One - To record the issuance of common stock by Jode to execute the purchase. 11ea7e46_dc58_5b60_ab1f_e13ffe4b222d_TB2563_00 Entry Two - To record the combination costs.
11ea7e46_dc58_5b61_ab1f_9d7f9b6799f6_TB2563_00
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Page 5
Chapter 2: A: Consolidation of Financial Information
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Q1) Compute fair value of the net assets acquired at the date of the acquisition.
A) $1,300.
B) $1,340.
C) $1,500.
D) $1,750.
E) $2,480.
Q2) What will the consolidated common stock account be as a result of this acquisition?
A) $ 300,000.
B) $ 990,000.
C) $1,000,000.
D) $1,590,000.
E) $1,600,000.
Q3) What amount will be reported for consolidated cash after the acquisition is completed?
A) $475,000.
B) $500,000.
C) $555,000.
D) $580,000.
E) $875,000.
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Page 6
Chapter 3: Consolidations - Subsequent to the Date of Acquisition
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Sample Questions
Q1) Using the acquisition method, how will Beatty record the stock contingency?
A) Credit Contingent Performance Obligation, $20,000.
B) Debit Additional Paid-In Capital, $20,000.
C) Credit Additional Paid-In Capital, $2,884.
D) Debit Contingent Performance Obligation, $2,884.
E) No entry.
Q2) Parrett Corp.acquired one hundred percent of Jones Inc.on January 1, 2016, at a price in excess of the subsidiary's fair value.On that date, Parrett's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000.Jones had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000.Parrett used the partial equity method to record its investment in Jones.On December 31, 2018, Parrett had equipment with a book value of $250,000 and a fair value of $400,000.Jones had equipment with a book value of $170,000 and a fair value of $320,000.What is the consolidated balance for the Equipment account as of December 31, 2018?
A) $387,000.
B) $497,000.
C) $508.000.
D) $537,000.
E) $570,000.
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Chapter 3: A: Consolidations - Subsequent to
the Date of Acquisition
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Q1) Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination?
A) Goodwill.
B) Equipment.
C) Investment in Subsidiary.
D) Common Stock.
E) Additional Paid-In Capital.
Q2) How is the fair value allocation of an intangible asset allocated to expense when the asset has no legal, regulatory, contractual, competitive, economic, or other factors that limit its life?
A) Equally over 20 years.
B) Equally over 40 years.
C) Equally over 20 years with an annual impairment review.
D) No amortization, but annually reviewed for impairment and adjusted accordingly.
E) No amortization over an indefinite period time.
Q3) What was consolidated equipment as of December 31, 2018?
Q4) If the parent's net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2018?
Page 8
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Chapter 4: Consolidated Financial Statements and Outside Ownership
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Q1) How much does Pell record as Income from Demers for the year ended December 31, 2021?
A) $48,000.
B) $56,000.
C) $98,400.
D) $97,000.
E) $50,400.
Q2) Compute the noncontrolling interest in Demers at December 31, 2021.
A) $107,800.
B) $140,000.
C) $ 80,000.
D) $ 50,000.
E) $160,800.
Q3) Where should a noncontrolling interest appear on a consolidated balance sheet?
Q4) Compute the noncontrolling interest in Demers at December 31, 2021.
A) $107,800.
B) $140,000.
C) $165,200.
D) $160,800.
E) $146,800.
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Chapter 4: A: Consolidated Financial Statements and Outside Ownership
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Q1) What is the amount of excess land allocation attributed to the controlling interest at the acquisition date?
A) $ 0.
B) $30,000.
C) $22,500.
D) $25,000.
E) $17,500.
Q2) Compute the noncontrolling interest in the net income of Demers at December 31, 2021.
A) $20,400.
B) $26,000.
C) $24,600.
D) $14,000.
E) $12,600.
Q3) What amount represents consolidated current assets at January 2, 2019?
A) $127,000.
B) $129,800.
C) $143,800.
D) $148,000.
E) $135,400.
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Chapter 5: Consolidated Financial Statements Intra-Entity
Asset Transactions
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Q1) X-Beams Inc.owned 70% of the voting common stock of Kent Corp.During 2018, Kent made several sales of inventory to X-Beams.The total selling price was $180,000 and the cost was $100,000.At the end of the year, 20% of the goods were still in X-Beams' inventory.Kent's reported net income was $300,000.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest in Kent?
A) $90,000.
B) $85,200.
C) $54,000.
D) $94,800.
E) $86,640.
Q2) In the consolidation worksheet for 2018, which of the following accounts would be credited to eliminate unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?
A) Retained earnings.
B) Cost of goods sold.
C) Inventory.
D) Investment in Fisher Company.
E) Sales.
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Chapter 5: A: Consolidated Financial Statements
Intra-Entity Asset Transactions
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Q1) Compute Parker's reported gain or loss on its internal accounting records prior to consolidation relating to the land for 2019.
A) $12,000 gain.
B) $ 5,000 loss.
C) $12,000 loss.
D) $ 7,000 gain.
E) $ 7,000 loss.
Q2) For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?
A) $ 300.
B) $ 240.
C) $2,000.
D) $1,600.
E) $ 270.
Q3) Fraker, Inc.owns 90 percent of Richards, Inc.and bought $200,000 of Richards' inventory in 2018.The transfer profit was equal to 30 percent of the sales price.When preparing consolidated financial statements, what amount of these sales is eliminated?
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Chapter 6: Variable Interest Entities, Intra-Entity Debt,
Consolidated Cash Flows, and Other Issues
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Q1) Which of the following characteristics is not indicative of an enterprise qualifying as a primary beneficiary with a controlling financial interest in a variable interest entity?
A) The power to direct the most significant economic performance activities.
B) The power through voting or similar rights to direct activities, which significantly impact economic performance.
C) The obligation to absorb potentially significant losses of the entity.
D) No ability to make decisions about the entity's activities.
E) The right to receive potentially significant benefits of the entity.
Q2) After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account?
A) $70,000 increase.
B) $70,000 decrease.
C) $12,188 decrease.
D) $12,188 increase.
E) No adjustment is necessary.
Q3) Prepare Panton's journal entry to recognize the impact of this transaction.
Q4) What consolidation entry would be recorded in connection with these intra-entity bonds on December 31, 2020?
Page 13
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Chapter 6: A: Variable Interest Entities, Intra-Entity Debt,
Consolidated Cash Flows, and Other Issues
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Sample Questions
Q1) Parent Corporation acquired some of its subsidiary's bonds on the open bond market.The remaining life of the bonds was eight years, and Parent expected to hold the bonds for the full eight years.How would the acquisition of the bonds affect the consolidation process?
Q2) If Smith's net income is $100,000 in the year following the acquisition, A) The portion allocated to the common stock (residual amount) is $92,800.
B) $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in consolidated income. C) The noncontrolling interest in consolidated net income is $27,200.
D) The preferred stock dividend will be ignored in noncontrolling interest in consolidated net income because Nichols owns the noncontrolling interest of preferred stock. E) The noncontrolling interest in consolidated net income is $30,800.
Q3) Prepare all consolidation entries for 2018.
Q4) Parent Corporation had just purchased some of its subsidiary's outstanding bonds on the open market.What items related to these bonds will have to be accounted for in the consolidation process?
Q5) Prepare Panton's journal entry to recognize the impact of this transaction.
Page 14
Q6) Prepare Panton's journal entry to recognize the impact of this transaction.
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Chapter 7: Consolidated Financial Statements - Ownership
Patterns and Income Taxes
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Q1) What is this pattern of ownership called?
A) Pyramid ownership.
B) A connecting affiliation.
C) Mutual ownership.
D) An indirect affiliation.
E) An affiliated group.
Q2) Horse Corporation acquires all of Pony, Inc.for $300,000 cash.On that date, Pony has net assets with fair value of $250,000 but a book value and tax basis of $200,000.The tax rate is 40 percent.Prior to this date, neither Horse nor Pony has reported any deferred income tax assets or liabilities.What amount of goodwill should be recognized on the date of the acquisition?
A) $ 0.
B) $ 50,000.
C) $ 70,000.
D) $100,000.
E) $150,000.
Q3) Required:
Determine the total amount of goodwill for the January 1, 2017 acquisition of Curle Co.and for the acquisition of Lance Co.on the same date.
Page 15
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Chapter 7: A: Consolidated Financial Statements -
Ownership Patterns and Income Taxes
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Sample Questions
Q1) What amount should be reported for consolidated net income?
A) $1,285,000.
B) $1,331,700.
C) $1,349,000.
D) $1,315,000.
E) $1,314,900.
Q2) For West Corp.and consolidated subsidiaries, what total amount would be reported for the net income attributable to the noncontrolling interest?
A) $165,300.
B) $199,300.
C) $191,000.
D) $228,000.
E) $153,000.
Q3) What is Sigma's accrual-based income for 2018?
A) $400,000.
B) $592,000.
C) $540,000.
D) $572,800.
E) $600,000.
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Q4) What are the benefits or advantages of filing a consolidated income tax return?
Chapter 8: Segment and Interim Reporting
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Q1) Assuming Baker makes the change in the first quarter of 2018 and that $400,000 net income is earned during the second quarter, how much is reported as net income for the second quarter of 2018?
A) $400,000.
B) $405,200.
C) $427,950.
D) $894,850.
E) $905,200.
Q2) Prepare the revenue test and determine which of these segments was separately reportable.
Q3) What is the major objective of segment reporting?
Q4) Which of the following operating segment disclosures is not required by U.S.GAAP?
A) Interest expense.
B) Intersegment sales.
C) Unusual items.
D) Depletion.
E) Liabilities.
Q5) Why are publicly traded companies in the U.S.required to publish quarterly financial statements?
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Chapter 8: A: Segment and Interim Reporting
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Q1) When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?
A) The products sold by each segment are produced in the same plant.
B) Both segments have several customers in common.
C) The segments may sell different products, but they have a similar economic environment and similar business activities.
D) Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws.
E) Both segments are owned by the same parent company.
Q2) Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?
Q3) How does a company measure income tax expense to be reported in an interim period?
Q4) Prepare the journal entries to reflect the sales and cost of goods sold, assuming Urbanski does not expect to replace the liquidated inventory at year-end.
Q5) What is the major objective of segment reporting?
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Chapter 9: Foreign Currency Transactions and Hedging
Foreign Exchange Risk
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Sample Questions
Q1) What amount of foreign exchange gain or loss should be recorded on January 30?
A) $1,516 gain.
B) $1,516 loss.
C) $575 loss.
D) $500 loss.
E) $500 gain.
Q2) How much US $ will it cost Brisco to finally pay the payable on June 7?
A) $1,666,667.
B) $2,440,000.
C) $2,520,000.
D) $2,500,000.
E) $2,400,000.
Q3) Compute the fair value of the foreign currency option at December 1, 2018.
A) $6,000.
B) $4,500.
C) $3,000.
D) $7,500.
E) $1,500.
Q4) How is the fair value of a Forward Contract determined by U.S.GAAP?
Q5) What factors create a foreign exchange gain?
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Chapter 9: A: Foreign Currency Transactions and Hedging
Foreign Exchange Risk
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Sample Questions
Q1) What happens when a U.S.company sells goods denominated in a foreign currency and the foreign currency appreciates?
Q2) All of the following hedges are used for future purchase/sale transactions except
A) Forward contracts used as a fair value hedge of a firm commitment.
B) Options used as a fair value hedge of a firm commitment.
C) Option contract cash flow hedge of a forecasted transaction.
D) Forward contract cash flow hedges of a forecasted transaction.
E) Forward contracts used to hedge a foreign currency denominated liability.
Q3) (A.) Assume this hedge is designated as a fair value hedge.Prepare the journal entries relating to the transaction and the forward contract. (B.) Compute the effect on 2018 net income. (C.) Compute the effect on 2019 net income.
Q4) What amount will Coyote Corp.report in its 2018 balance sheet for Inventory?
Q5) What is the purpose of a hedge of foreign exchange risk?
Q6) What amount will Coyote Corp.report in its 2018 income statement for Cost of goods sold?
Q7) What are the two separate transactions that require recording under the two-transaction perspective?
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Chapter 10: Translation of Foreign Currency Financial Statements
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Q1) Prepare an income statement for this subsidiary in stickles and then translate these amounts into U.S.dollars.
Q2) Required:
Assume that Boerkian was a foreign subsidiary of a U.S.multinational company and the local currency of the subsidiary (stickle) is the functional currency.On the December 31, 2018 balance sheet, what was the translated value of the Land account?
Q3) What was the amount of the translation adjustment for 2018?
A) $60,800 decrease in relative value of net assets.
B) $60,800 decrease in relative value of net assets
C) $61,200 decrease in relative value of net assets
D) $466,400 increase in relative value of net assets..
E) $26,000 increase in relative value of net assets.
Q4) Compute ending inventory for 2018 under the temporal method.
A) $13,950.
B) $14,100.
C) $14,400.
D) $14,850.
E) $15,150.
Q5) Contrast the purpose of remeasurement with the purpose of translation.
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Chapter 10: A: Translation of Foreign Currency Financial Statements
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Q1) A foreign subsidiary of a U.S.corporation purchased equipment on January 4, 2015. (A.) How would depreciation expense on the equipment be translated for 2018? (B.) How would depreciation expense on the equipment be remeasured for 2018?
Q2) In translating a foreign subsidiary's financial statements, which exchange rate does the current method require for the subsidiary's assets and liabilities?
A) The exchange rate in effect when each asset or liability was acquired.
B) The average exchange rate for the current year.
C) A calculated exchange rate based on market value.
D) The exchange rate in effect as of the balance sheet date.
E) The exchange rate in effect at the start of the current year.
Q3) Under the current rate method, depreciation expense would be translated at what rate?
A) Beginning of the year rate.
B) Average rate.
C) Current rate.
D) Historical rate.
E) Composite amount.
Q4) Contrast the purpose of remeasurement with the purpose of translation.
Page 22
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Chapter 11: Worldwide Accounting Diversity and International Accounting Standards
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Q1) Which of the following is the organization that governs the IASB?
A) IASC.
B) IOSCO.
C) UNESCO.
D) IFRS Foundation.
E) IAS Service.
Q2) Prepare the journal entry to convert the 2017 Dowa, Ltd.financial statements from IFRS to U.S.GAAP.
Q3) A U.S.company has many foreign subsidiaries and is converting its consolidated financial statements from U.S.GAAP to IFRS.Which of the following items is not one of the likely accounting issues to resolve for the conversion?
A) Measuring impairment.
B) Classifying preferred shares of stock.
C) Sale and leaseback gain recognition.
D) Measuring salaries expense.
E) Prior service cost recognition for defined benefit plans.
Q4) What are the four different ways IFRS can be used by a country?
Q5) What are measurement differences in financial reporting and what would be an example of a difference between IFRS and U.S.GAAP??
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Chapter 11: A: Worldwide Accounting Diversity and International Accounting Standards
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Q1) Which of the following is not a way for a country to use IFRS?
A) Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements.
B) Allow foreign companies listed on that country's stock exchange to use IFRS.
C) Permit its domestic companies listed on that country's stock exchange to use IFRS.
D) Adopt IFRS as that country's national GAAP.
E) All of these answer choices are correct.
Q2) Prepare the journal entry to convert the 2017 Dowa, Ltd.financial statements from IFRS to U.S.GAAP.
Q3) According to U.S.GAAP, what is the amount recognized by Bugs, Inc.as a provision for loss contingency?
A) No amount will be recorded but an amount will be disclosed in the notes to the financial statements.
B) $50,000
C) $60,000
D) $100,000
E) $150,000
Q4) What problems are caused by diverse accounting practices?
Page 24
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Chapter 12: Financial Reporting and the Securities and Exchange Commission
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Q1) Which one of the following is not a division of the SEC?
A) The Division of Corporation Finance.
B) The Division of Investment Management.
C) The Division of Compliance Information.
D) The Division of Enforcement.
E) The Division of Trading and Markets.
Q2) What is a sophisticated investor?
A) An investor with a net worth equal to or exceeding $1,000,000.
B) An investor holding an active CPA license.
C) An investor with a portfolio of 50 or more securities.
D) An investor having knowledge and experience in financial matters.
E) An investor currently serving as an audit committee member.
Q3) Who has the responsibility for the evaluation of the quality of an investment?
Q4) When would a letter of comments be issued by the SEC?
A) To request clarification of a registration statement.
B) To convey your pertinent comments to the SEC.
C) In response to a company's filing of Form 8-K.
D) After receiving the company's Form 10-K.
E) To indicate that a registration statement has been approved.
Q5) How are the operations of the SEC funded?
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Chapter 12: A: Financial Reporting and the Securities and Exchange Commission
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Q1) What is included in Part II of a securities registration statement?
Q2) What is blue sky legislation?
Q3) Which of the following forms is used in connection with registration of securities of a small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates?
A) S-8.
B) S-3.
C) S-4.
D) S-1
E) S-11.
Q4) What is a primary focus of the Sarbanes-Oxley Act?
A) Accounting standards and the registration of securities.
B) Regulation of the continuous reporting by publicly owned companies.
C) Accounting standards and registration of investment companies that engage in investing and trading in securities.
D) Accounting standards and penalties against persons who profit from illegal use of inside information.
E) Regulation of independent audit firms and audit standards.
Q5) How are the operations of the SEC funded?
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Chapter 13: Accounting for Legal Reorganizations and Liquidations
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Q1) What are some of the common elements that can be included in a reorganization proposal?
Q2) During a reorganization, cash reserves tend to grow.How should interest earned on these reserves be reported on the financial statements?
A) As deferred revenue until the reorganization is complete.
B) As a credit directly to retained earnings.
C) On the balance sheet as a long-term liability.
D) On the income statement, but not classified as a reorganization item.
E) On the income statement as a reorganization item.
Q3) Lawyer's fees incurred during a reorganization are accounted for as:
A) An expense.
B) An intangible asset, Reorganization Cost, which would normally be amortized over a five-year period.
C) Additional paid-in capital.
D) Retained earnings.
E) A prepaid asset until the entity emerges from reorganization.
Q4) Prepare a schedule to show the amount of assets available for unsecured creditors after payment of liabilities with priority.
Q5) To what does the termChapter 7 bankruptcy refer?
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Chapter 13: A: Accounting for Legal Reorganizations and Liquidations
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/66040
Sample Questions
Q1) AChapter 7 bankruptcy is a(n)
A) Involuntary reorganization.
B) Bankruptcy forced by a company's creditors.
C) Liquidation.
D) Bankruptcy in which all creditors receive payment in full.
E) Voluntary reorganization.
Q2) A company is insolvent when
A) It is unable to pay debts as the obligations come due.
B) It is more likely than not that it will not be able to pay debts within a reasonable period of time following the date such obligations become due.
C) It is unable to timely remit payment on more than two-thirds of its outstanding obligations measured on a rolling three-month basis.
D) It is unable to pay debts within 90 days following the close of the company's reporting year, whether such year is a calendar or fiscal year.
E) It is in default on one-third or more of its outstanding debt obligations.
Q3) Prepare a schedule to show the amount of total liabilities with priority.
Q4) How much will Hampton's creditor of an unsecured accounts payable of $4,000 receive?
Page 28
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Chapter 14: Partnerships: Formation and Operation
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Source URL: https://quizplus.com/quiz/66018
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Q1) C contributes $10,000 to the partnership and the goodwill method is used.What will be the result of the goodwill calculation?
A) Goodwill of $15,000; split among the original partners.
B) Goodwill of $15,000; all to C.
C) Goodwill of $15,000; split among all four partners: P, L, O, and C.
D) Goodwill of $12,000; all to C.
E) Goodwill of $12,000; split among original partners.
Q2) Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners.No goodwill is to be recorded.Profits and losses have previously been split according to the following percentages: Adams, 15%, Barnes, 35%, Cordas, 30%, and Davis, 20%.After Eden made his investment, what were the individual capital balances?
Q3) Under what circumstances does a partner's balance in his or her capital account have practical consequences for the partner?
Q4) What are the remaining partners' capital balances after Howell's interest is dissolved, assuming the goodwill method is applied?
Q5) What is the dissolution of a partnership?
Q6) For what events or conditions should the Articles of Partnership make provision?
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Chapter 14: A: Partnerships: Formation and Operation
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89 Verified Questions
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Source URL: https://quizplus.com/quiz/66039
Sample Questions
Q1) Anne retires and is paid $80,000 based on the terms of the original partnership agreement.If the bonus method is used, what is the capital of the remaining partners?
A) Donald, $40,000; Todd, $30,000
B) Donald, $30,000; Todd, $10,000
C) Donald, $50,000; Todd, $50,000
D) Donald, $24,000; Todd, $18,000
E) Donald, $70,000; Todd, $40,000
Q2) What was the amount of interest attributed to Wasser in the income distribution for 2018?
A) $17,600.
B) $18,800.
C) $20,100.
D) $17,800.
E) $30,100.
Q3) How is accounting for a partnership different from accounting for a corporation?
Q4) Under what circumstances does a partner's balance in his or her capital account have practical consequences for the partner?
Q5) Record the journal entry to allocate the salary of Noris.
Q6) What events cause the dissolution of a partnership?
Page 30
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Chapter 15: Partnerships: Termination and Liquidation
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69 Verified Questions
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Source URL: https://quizplus.com/quiz/66020
Sample Questions
Q1) What is the purpose of a predistribution plan?
Q2) Record the journal entry for the cash distribution to the partners.
Q3) If the noncash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle with respect to the noncash assets?
A) $43,200.
B) $46,800.
C) $40,000.
D) $42,400.
E) $43,100.
Q4) If the assets could be sold for $228,000 and there are no liquidation expenses, what is the minimum amount that Ezzard would receive from the liquidation?
A) $36,000.
B) $ 0.
C) $ 2,500.
D) $38,250.
E) $67,250.
Q5) If the noncash assets are sold for $105,000, what would be the maximum amount of cash that Canton could expect to receive?
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Chapter 15: A: Partnerships: Termination and Liquidation
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69 Verified Questions
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Source URL: https://quizplus.com/quiz/66038
Sample Questions
Q1) Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid.
Q2) Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2018, to record payment of liabilities.
Q3) The Albert, Boynton, and Creamer partnership was in the process of liquidating its assets and going out of business.Albert, Boynton, and Creamer had capital account balances of $80,000, $120,000, and $200,000, respectively, and shared profits and losses in the ratio of 1:3:2.Equipment that had cost $90,000 and had a book value of $60,000 was sold for $24,000 cash.
Required:
Prepare the appropriate journal entry to record the sale of the equipment, distributing any gain or loss directly to the partners.
Q4) Record the journal entry for the sale of the noncash assets.
Q5) How much of this money should Zobart receive?
A) $15,467.
B) $14,467.
C) $17,333.
D) $15,633.
E) $15,867.
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Chapter 16: Accounting for State and Local Governments,
Part I
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83 Verified Questions
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Source URL: https://quizplus.com/quiz/66022
Sample Questions
Q1) What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?
Q2) Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?
Q3) What assets would be included in the accounting records of a city's general fund?
Q4) Which of the following is a governmental fund?
A) Enterprise fund.
B) Internal service fund.
C) Permanent fund.
D) Investment trust fund.
E) Agency fund.
Q5) Which group of financial statements is prepared using the "modified accrual accounting" approach?
A) GAAP-based financial statements.
B) Governmental fund financial statements.
C) Cost-based financial statements.
D) Government-wide financial statements.
E) General-purpose financial statements.
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Chapter 16: A: Accounting for State and Local Governments,
Part I
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83 Verified Questions
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Source URL: https://quizplus.com/quiz/66037
Sample Questions
Q1) For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.
Q2) Under modified accrual accounting, revenues should be recognized when they are A) Collected.
B) Realizable and estimable.
C) Reasonably estimable.
D) Measurable and available to be used.
E) Earned and collected.
Q3) The Trumbull County legislature voted to set aside $500,000 to have new street signs produced for county roads..
Required:
For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.
Q4) Which of the following funds is most likely created with an endowed gift?
A) Enterprise Fund.
B) Internal Service Fund.
C) Debt Service Fund.
D) Capital Projects Fund.
E) Permanent Fund.
34
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Chapter 17: Accounting for State and Local Governments,
Part II
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42 Verified Questions
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Source URL: https://quizplus.com/quiz/66023
Sample Questions
Q1) What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?
Q2) For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill
A) Is not recognized until the costs are actually incurred.
B) Is accrued and amortized over the expected useful life of the landfill.
C) Is accrued on a pro-rated basis each period based on how full the landfill is.
D) Is accrued in full at the time the costs become estimable.
E) Is treated as an encumbrance at the time it become estimable, and then as an expenditure when it is actually paid.
Q3) Assuming the landfill is recorded within the General fund, how would the landfill information be represented in the governmental fund financial statements at December 31, 2018?
Q4) Prepare the journal entry/entries for the two transactions for the purposes of preparing the government-wide financial statements.
Q5) What is meant by the term fiscally independent?
Q6) What is meant by the term legally independent?
Page 35
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Chapter
Part II
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Q1) Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?
A) The Balance Sheet for Governmental Fund Financial Statements measures only current financial resources of the governmental entity.
B) The Balance Sheet for Governmental Fund Financial Statements uses the modified accrual method for timing purposes.
C) Capital Assets are not reported on the Balance Sheet for Governmental Fund Financial Statements.
D) The Balance Sheet for Governmental Fund Financial Statements measures only long-term financial resources of the governmental entity.
E) Long-term debts are not reported on the Balance Sheet for Governmental Fund Financial Statements.
Q2) Which of the following is a financial statement of a proprietary fund?
A) Balance sheet.
B) Statement of Operations.
C) Statement of Changes in Cash Flows.
D) Statement of Net Position.
E) Statement of Revenues, Expenditures, and Changes in Fund Balance.
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Chapter 18: Accounting for Not-For-Profit Entities
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Sample Questions
Q1) Which of the following topics are not included in the Form 990 which tax-exempt entities file to maintain their tax-exempt status?
A) Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees and Independent Contractors.
B) Donor Disclosure: Identification of Every Donor by Name, Contribution Value & Contribution Type.
C) Statement of Revenue.
D) Balance Sheet.
E) Statement of Functional Expenses.
Q2) How does a not-for-profit entity account for: 1) cash contributions, and 2) donated goods that are received for operating purposes? What types of revenues are recognized by voluntary health and welfare entities?
Q3) For a not-for-profit entity, when is recognition of contributions of artworks and historical treasures not required?
Q4) Assume that the donor retains the right to revoke or redirect the gift. Prepare the journal entries for Charity A and Charity B.The entries should be for the gift when received by Charity A, and when the gift is distributed for Charity B.
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Chapter 18: A: Accounting for Not-For-Profit Entities
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Sample Questions
Q1) What financial statements would normally be prepared by a voluntary health and welfare entity?
Q2) For a not-for-profit entity, when is recognition of contributions of artworks and historical treasures not required?
Q3) With respect to the donations received in 2016, what total amount should be recorded as an increase to Temporarily Restricted Net Assets?
A) $ 2,000
B) $ 7,000
C) $12,000
D) $15,000
E) $17,000
Q4) For not-for-profit entities, what is the difference in identification of "control" between a merger and an acquisition?
Q5) Which of the following is a voluntary health and welfare entity?
A) A charity raising money for underprivileged children.
B) A nursing home.
C) A private medical school.
D) A hospital.
E) A preschool.
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Chapter 19: Accounting for Estates and Trusts
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Sample Questions
Q1) Assume that Bob Smith dies on May 25, 2018.Mr.Smith's assets include the following: ABC Stock costing $30,000 but valued at $40,000; a house costing $280,000 but valued at $620,000; life insurance in the amount of $600,000; and cash from various sources totaling $50,700.Three credit cards in Mr.Smith's name had balances totaling $8,530 on the date of death.The estate paid funeral and final medical expenses in the amount of $50,492.There were no charitable gifts designated by the will, and Mr.Smith was single at the time of his death.What is the amount of the taxable estate?
A) $ 901,678.
B) $1,251,678.
C) $1,268,738.
D) $1,310,700.
E) $ 651,678.
Q2) A gift that is specified in a will as "I leave $5,000 in cash from my checking account to my daughter" is a
A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.
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Chapter 19: A: Accounting for Estates and Trusts
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81 Verified Questions
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Source URL: https://quizplus.com/quiz/66034
Sample Questions
Q1) A gift of any remaining estate property is a
A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.
Q2) Executor's fees and court costs for settling an estate usually
A) Must be apportioned between the principal and the income of the estate.
B) Are adjustments to the principal of the estate.
C) Are adjustments to the income of the estate.
D) Are subtracted from life insurance proceeds.
E) Are ignored.
Q3) Prepare the journal entry to record the payment of the estate's liabilities for debts incurred prior to the decedent's death.
Q4) Additional debts of $78,000 were discovered.Debts totaling $130,000 were paid.Prepare the journal entry to record the transaction.
Q5) Prepare the journal entry to record the distribution of $4,000 to Anna Lee, an income beneficiary.
Q6) Prepare the journal entry to record the property of the estate.
Page 40
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