Financial Accounting MCQs

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The purchase of treasury stock is recorded on the statement of financial position as a(n






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Current assets are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. Current assets ...






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The accounting measurement that is not consistent with the going concern concept is






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When classifying assets as current and noncurrent for reporting purposes,






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A manufacturer receives an advance payment for special-order goods that are to be manufactured and delivered within the next year. The advance payme...






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A cable television entity receives deposits from customers that are refunded when service is terminated. The average customer stays with the entity ...






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A statement of financial position provides a basis for all of the following except






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Noncurrent debt should be included in the current section of the statement of financial position if






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A receivable classified as current on the statement of financial position is expected to be collected within






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A company pays more than the fair value to acquire treasury stock. The difference between the price paid to acquire the treasury stock and the fair ...






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Careful reading of an annual report will reveal that off-balance-sheet debt includes






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Which one of the following is not a form of off-balance-sheet financing?






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In a multiple-step income statement for a retail company, all of the following are included in the operating section except






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When reporting extraordinary items,






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The major segments of the statement of retained earnings for a period are






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In recording transactions, which of the following best describes the relation between expenses and losses?






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An entity has a 50% gross margin, general and administrative expenses of $50, interest expense of $20, and net income of $10 for the year just ended. ...






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Assume that employees confessed to a $500,000 inventory theft but are not able to make restitution. How should this material fraud be shown in the com...






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An entity had the following opening and closing inventory balances during the current year: ................................1/1............ ...






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If the beginning balance for May of the materials inventory account was $27,500, the ending balance for May is $28,750, and $128,900 of materials were...






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Given the following data for Scurry Company, what is the cost of goods sold? Beginning inventory of finished goods.. $100,000 Cost of goods manufa...






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The financial statement that provides a summary of the firms operations for a period of time is the






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Unless the shares are specifically restricted, a holder of common stock with a preemptive right may share proportionately in all of the following exce...






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Which one of the following statements is correct regarding the effect preferred stock has on a company?






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On February 1, Year 1, a computer software firm agrees to program a software package. Twelve payments of $10,000 on the first of each month are to be ...






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An airline should recognize revenue from airline tickets in the period when






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A department store sells gift certificates that may be redeemed for merchandise. Each certificate expires 3 years after issuance. The revenue from the...






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To comply with the matching principle, the cost of labor services of an employee who participates in the manufacturing of a product normally should be...






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Robin Gavaskar, who recently founded a company that produces baseball bats and balls, wants to determine her companys policy for revenue recognition....






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Revenues of an entity are usually measured by the exchange values of the assets or liabilities involved. Recognition of revenue does not occur until






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DEF is the consignee for 1,000 units of product X for ABC Company. ABC should recognize the revenue from these 1,000 units when






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A physical inventory count showed an entity had inventory costing $1,000,000 on hand at December 31, Year 1. Excluded from this amount were the follow...






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Vadis Co. sells appliances that include a 3-year warranty. Service calls under the warranty are performed by an independent mechanic under a contract...






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East Corp. manufactures stereo systems that carry a 2-year warranty against defects. Based on past experience, warranty costs are estimated at 4% of ...






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On April 1, Ash Corp. began offering a new product for sale under a 1-year warranty. Of the 5,000 units in inventory at April 1, 3,000 had been sold b...






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Management accounting differs from financial accounting in that financial accounting is






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Companies characterized by the production of heterogeneous products will most likely use which of the following methods for the purpose of averaging ...






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Companies characterized by the production of heterogeneous products will most likely use which of the following methods for the purpose of averaging ...






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When should an anticipated loss on a long-term contract be recognized under the percentage-of-completion method and the completed-contract method, r...






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In accounting for a long-term construction contract using the percentage-of-completion method, the progress billings on contracts account is a






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Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed $100,000 and Carr contributed $84,000 ...






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When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partners cap...






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Blau and Rubi are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, year 1, their respective capital accounts were ...






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Kern and Pate are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kern an...






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Dunn and Grey are partners with capital account balances of $60,000 and $90,000, respectively. They agree to admit Zorn as a partner with a one-thir...






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In the Adel-Brick partnership, Adel and Brick had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used...






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Allen retired from the partnership of Allen, Beck, and Chale. Allens cash settlement from the partnership was based on new goodwill determined at t...






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When Mill retired from the partnership of Mill, Yale, and Lear, the final settlement of Mills interest exceeded Mills capital balance. Under the b...






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Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Crores Time deposits with banking system - Rs. 250000 Crore...






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Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Crores Time deposits with banking system - Rs. 250000 Crore...






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Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Crores Time deposits with banking system - Rs. 250000 Crore...






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Mr x is to receive Rs. 10000, as interest on bonds by end of each year for 5 years @ 5% roi. Calculate the present value of the amount he is to rece...






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Calculate Standard Error from the given data : X = 10, 20,30,40,50






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Quantity supplied of a product at Rs. 8 per unit is 200 Units. If the price elasticity of supply is 1.5, what will be the quantity supplied at Rs. 1...






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My grandfather, starts giving me gifts of Rupees 1 lakh for the next 4 years. If the interest rate is 10 per cent pa, how much will I get at the end...






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Account credited when assets are donated to a corporation.






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Measured at fair value and recognized as a liability.






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The basic principle is to value assets acquired using fair value of consideration given






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Goodwill is: