Intermediate Accounting 1

Intermediate Accounting 1

Intermediate Accounting is a course of study in financial accounting. In traditional universities it is often taught in a two semester sequence that students majoring in accounting are required to take, usually during their junior year. One might think the phrase "intermediate accounting" could apply to beyond-basic techniques in w:management accounting or any other area of accounting, too, but in fact the phrase is applied exclusively to the courses and textbooks in the financial accounting area. Financial accounting, beyond a beginner's introduction,


AnswersQuestions
unbiased and neutralWhich of the following terms describing information in the financial statements are properly matched?
upon replenishmentUnder the imprest petty cash system, expenses out of the petty cash fund are recorded
Increase in asset and decrease in equityWhich is not a possible combination of a journal entry?
true, true, trueConsider the following statements.
Transfers journal entries to the ledger accounts.Posting
financial accountingGeneral-purpose financial statements are the product of
a degree of caution in the exercise of judgments about estimates is madeIn respect to information included in financial statements, the accounting concept of prudence ensures that
before adjusting entries are entered in the journal and posted to the ledgerIn the accounting cycle, a worksheet is prepared
it must be classified as an external event rather than an internal event.Which one of these is not among the criteria to consider an event as accountable?
Debit individual expense accounts, credit Cash in bankIn replenishing a petty cash fund, which one of the following entries is required?
all items except bank errors, outstanding checks, and deposits in transit.Bank reconciliations are normally prepared on a monthly basis to identify adjustments needed in the depositor's records and to identify bank errors. Adjustments should be recorded for
statement of retained earningsThe financial statements most frequently provided include all of the following except the
To provide information on the liquidation value of an entity.Which statement is not a specific objective of financial reporting?
the safeguarding of cashCash control systems are the methods and procedures used to ensure
The same under the cash basis as under the accrual basisTotal net income over the life of an entity is
Postdated checks and IOUsWhich of the following shall not be considered "cash" for financial reporting purposes?
The reimbursement of the petty cash fund should be credited to the cash account.When a petty cash fund is used, which of the following is true?
financial statements are preparedThe recording phase of financial accounting covers the following steps, except
Remove the balances from the entity's temporary accountsClosing entries
They always involve legal restrictions on the cash received.Which of the following statements concerning compensating balance agreements is not true?
II, I and IIIArrange the following steps in their correct order:
The dual effect of each transaction is recorded with a debit and a credit.The double entry accounting system means
Postdated checks and I.O.U.'sWhich of the following is not considered cash for financial reporting purposes?
inherent uncertainties of many accounting measurementsAccounting traditionally has been influenced by conservatism because of the
Adjusting entries where revenue or expense recognition precedes cash flowAccruals are
interest credited to the account by the bankIn reconciling the bank balance with the book cash balance, which of the following would not cause the bank shown in the bank statement to be lower than the unadjusted book balance?
Which cannot be offset is classified as current liabilityBank overdraft
Is the foundation for the Conceptual Framework.The objective of financial reporting in the Conceptual Framework
Short-term and highly liquid investments that are readily convertible into cash and acquired three months before maturityCash equivalents are
Liabilities, revenue and share capital are credited for increases.In recording transactions
Preparation of the post-closing trial balanceWhich among the following is the last step in the accounting cycle?
P30,500In preparing its May 31, 2019 bank reconciliation, Dogg Co. has the following information available:
to help users make decisionsWhich of the following best states the objective of general purpose financial statements?
Is so near maturity that it presents insignificant risk of change in interest rateA cash equivalent is a short-term, highly liquid investment that is readily convertible into known amount of cash and
Confirmatory valueWhich of the following is not an ingredient of faithful representation according to Conceptual Framework for Financial Reporting?
Bank overdraftsWhich of the following is generally classified as a current liability on the balance sheet?
Postdated checksWhich of the following is considered cash?
The responsibility for receiving merchandising and paying for it should usually be given to one personWhich of the following statements is incorrect?
The petty cash custodian files receipts by category of expenditure after their presentation to the general cashier so that variations in different types of expenditures can be monitored.Which of the following is not an appropriate procedure for controlling the petty cash fund?
All of these may prove that debits and credits are equal.A trial balance may prove that debits that debits and credits are equal, except
2, 4 and 6In reconciling a business cash book with the bank statement, which of the following items could require a subsequent entry in the cash book?
understandabilityWhat links the decision makers and the decisions they make so that financial information would be useful?
All of these statements are true about the
Conceptual Framework.Which statement is true about the Conceptual Framework for Financial Reporting?
materialIf financial information that is presented in a balance sheet or income statement is misstated and it influences the economic decisions of users, that information is described as
increase assetsThe adjusting entry at the end of the accounting year to reflect revenues earned but not yet collected or recorded will
Consists of one debit and one creditA simple journal entry
Collected and not currently matched with expenseAn unearned revenue can be best be described as an amount
trial balanceA control device that helps minimize and localize accounting errors is known as
A schedule that accounts for the difference between an entity's cash balance as shown in the bank statement and the cash balance shown in the general ledger.A bank reconciliation is
the bank, when certifying checks, automatically debits the company's accountIn preparing the bank reconciliation, certified checks should be excluded from outstanding checks. The rationale for this treatment is
Note receivable collected by the bank in favor of the depositor and credited to the account of the depositor.Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted balance?
Debit asset, credit liabilityWhich of the following least resembles a typical adjusting entry?
daily entry in a voucher registerWhich is not a key element of internal control over cash receipts?
Uses the accrual basis of accountingAdjusting entries are needed because an entity
imprest systemThe internal control feature that is specific to petty cash is
EquipmentAll of the following would be regarded as financial instruments EXCEPT:
cash disbursements journalA cash refund to a customer for sales returns should be entered in
Objective of financial reportingWhich of the following provides "the why" or the goal and purpose of accounting?
improved allocation of resourcesWhich of the following is a benefit of providing financial information?
Financial statements, closing entries and reversing entriesWhich is a logical order in the accounting cycle?
A firm's investment in government treasury bills.Which of the following best qualifies as a "cash equivalent?"
relevantWhich term best describes information that influences the economic decision of users?
Post-dated checks from customersWhich of the following is most likely not considered as cash for financial reporting purposes?
Equity investmentsAll of the following can be classified as cash and cash equivalents EXCEPT:
Readily convertible into cash and acquired 3 months before maturityCash equivalents are short-term and highly liquid investments that are
P10,000Hamilton Company has cash in bank of P10,000, restricted cash in a separate account of P3,000, and a bank overdraft in an account at another bank of P1,000. Hamilton should report cash of
Recording depreciation of a truckWhich of the following is an example of an adjusting entry?
Financial assetUnder existing accounting rules, cash is considered as a
It proves that debits and credits were properly entered in the ledger accounts.Which of the following is not correct about an unadjusted trial balance?
That is useful for decision makingThe overall objective of financial reporting is to provide information
Three months or lessIn order to be classified as a cash equivalent, an investment must have a maturity period of
#202 and #404The information below was taken from the bank transfer schedule prepared during the audit of Fox Co.'s financial statements for the year ended December 31, 2018. Assume all checks are dated and issued on December 30, 2018.
change retained earningsThe effect of closing entries is to
Side represented by the increase in the account balanceThe normal balance of an account is on the
accountIt is an accounting device for accumulating increases and decreases relating to a particular accounting value such as an asset or a liability.
a mixture of costs and valuesWhat is the valuation basis used in conventional financial statements?
4,600,000Tranvia Company had the following balances on December 31, 2018:
The segregated account should be reported as a noncurrent asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.On October 31, 2018, Dingo, Inc. had cash accounts at three different banks. One account balance is segregated solely for a November 15, 2018 payment into a bond sinking fund. A second account, used for branch operations, is overdrawn. The third account, used for regular corporate operations, has a positive balance. How should these accounts be reported in Dingo's October 31, 2018 classified balance sheet?
II onlyOn an entity's December 31, 2018 statement of financial position which of the following items should be included in the amount reported as cash?
assist investors in predicting prospective cash flowsA primary objective of financial reporting is to:
is a four-column bank reconciliation showing reconciliation of cash balances per book and per bank at the beginning and end of the current month and reconciliation of cash receipts and cash disbursement of the bank and the depositor during the current month.A proof of cash
One nominal account and one real accountAdjusting entries affect
All of theseThe Conceptual Framework is intended to assist
At least one real and one nominal accountAdjusting entries involve
Equity investmentsAll of the following can be classified as cash and cash equivalents, except?
economic entity assumptionPreparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of
May be classified as current or non-current depending on the purpose for its establishmentCash set aside for a particular purpose (i.e. restricted)
All of these are usersUsers of financial reports include all of the following except
4,500,000Thor Company provided the following data on December 31, 2018:
All of the following can be classified as cash
and cash equivalents,
All of the following can be classified as cash and cash equivalents,
Bank reconciliations are normally prepared on a
monthly basis to identify adjustments needed in the depositor's records and to
identify bank errors. Adjustments should be recorded for
Cash equivalents are
Consider the following statements.
General-purpose
financial statements are the product of
In preparing its May
31, 2019 bank reconciliation, Dogg Co. has the following
information available:
In preparing the bank reconciliation, certified checks should be
excludedfrom outstanding checks. The
rationale for this treatment is
In reconciling a business cash book with the bank statement, which of the
following items could require a subsequent entry in the cash book?
In replenishing a petty cash fund, which
one of the following entries is required?
On an entity's December 31, 2018 statement of financial position
which of the following items should be included in the amount reported as cash?
On October 31, 2018, Dingo, Inc. had cash accounts at three
different banks. One account balance is segregated solely for a November 15,
2018 payment into a bond sinking fund. A second account, used for branch
operations, is overdrawn. The third account, used for regular corporate
operations, has a positive balance. How should these accounts be reported in
Dingo's October 31, 2018 classified balance sheet?
The financial statements
most frequently provided include all of the following the
The information below was taken from the bank transfer schedule prepared
during the audit of Fox Co.'s financial statements for the year ended December
31, 2018. Assume all checks are dated and issued on December 30, 2018.
Users of financial reports
include all of the following
When a petty cash fund is used, which of the
following is true?
When a petty cash fund is used, which of the following is true?
Which of the following best qualifies as a "cash
equivalent?"
Which of the following is
considered cash?
Which of the following is considered cash for financial
reporting purposes?
Which of the following is not an appropriate procedure for
controlling the petty cash fund?
Which of the following shall not be considered
"cash" for financial reporting purposes?
Which of the following statements is incorrect?