148. Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts. Ans: D 149. What is the order in which assets are generally listed on a classified balance sheet? a. Current and long-term b. Current; property, plant, and equipment; long-term investments; intangible assets c. Current; property, plant, and equipment; intangible assets; long-term investments d. Current; long-term investments; property, plant, and equipment; intangible assets Ans: D 150. These are selected account balances on December 31, 2014. Land (location of the corporation’s office building) $100,000 Land (held for future use) 150,000 Corporate Office Building 700,000 Inventory 200,000 Equipment 450,000 Office Furniture 150,000 Accumulated Depreciation 425,000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? a. $975,000 b. $1,125,000 c. $1,175,000 d. $1,400,000 Ans: A Solution: $100,000  $700,000  $450,000  $150,000  $425,000  $975,000 151. The following selected account balances appear on the December 31, 2014 balance sheet of Superchunk Co. Land (location of the corporation’s office building) $150,000 Land (held for future use) 225,000 Corporate Office Building 800,000 Inventory 300,000 Equipment 675,000 Office Furniture 225,000 Accumulated Depreciation 640,000 What is the total amount of property, plant, and equipment that will be reported on the balance sheet? a. $1,210,000 b. $1,435,000 c. $1,510,000 d. $1,850,000 a152. A reversing entry a. reverses entries that were made in error. b. is the exact opposite of an adjusting entry made in a previous period. c. is made when a business disposes of an asset it previously purchased. d. is made when a company sustains a loss in one period and reverses the effect with a profit in the next period. a 153. If a company utilizes reversing entries, they will a. be made at the beginning of the next accounting period. b. not actually be posted to the general ledger accounts. c. be made before the post-closing trial balance. d. be part of the adjusting entry process. 154. The steps in the preparation of a worksheet do not include a. analyzing documentary evidence. b. preparing a trial balance on the worksheet. c. entering the adjustments in the adjustment columns. d. entering adjusted balances in the adjusted trial balance columns. 155. Balance sheet accounts are considered to be a. temporary owner's equity accounts. b. permanent accounts. c. capital accounts. d. nominal accounts. 156. Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is a. credit Income Summary $17,000, debit Owner’s Capital $17,000. b. credit Income Summary $17,000, debit Owner’s Drawings $17,000. c. debit Income Summary $17,000, credit Owner’s Drawings $17,000. d. debit Income Summary $17,000, credit Owner’s Capital $17,000. 157. The post-closing trial balance contains only a. income statement accounts. b. balance sheet accounts. c. balance sheet and income statement accounts. d. income statement, balance sheet, and owner's equity statement accounts. 158. Which of the following is an optional step in the accounting cycle? a. Adjusting entries b. Closing entries c. Correcting entries d. Reversing entries 159. Which one of the following statements concerning the accounting cycle is incorrect? a. The accounting cycle includes journalizing transactions and posting to ledger accounts. b. The accounting cycle includes only one optional step. c. The steps in the accounting cycle are performed in sequence. d. The steps in the accounting cycle are repeated in each accounting period. 160. Correcting entries are made a. at the beginning of an accounting period. b. at the end of an accounting period. c. whenever an error is discovered. d. after closing entries. 161. On September 23, Sebadoh Company received a $350 check from Surfer Rosa Inc. for services to be performed in the future. The bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should a. debit Cash $350 and credit Unearned Service Revenue $350. b. debit Accounts Receivable $350 and credit Unearned Service Revenue $350. c. debit Accounts Receivable $350 and credit Cash $350. d. debit Accounts Receivable $350 and credit Service Revenue $350. 162. All of the following are owner's equity accounts except a. the Capital account. b. Capital Stock. c. Investment in Stock. d. Retained Earnings. 163. Current liabilities a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity. c. are listed in the balance sheet, starting with accounts payable. d. should not include long-term debt that is expected to be paid within the next year. a164. The use of reversing entries a. is a required step in the accounting cycle. b. changes the amounts reported in the financial statements. c. simplifies the recording of subsequent transactions. d. is required for all adjusting entries. 165. The classified balance sheet is a. required under GAAP but not under IFRS. b. required under IFRS in the same format as under GAAP. c. required under IFRS but not under GAAP. d. required under IFRS with certain variations in format as compared to GAAP. 166. IFRS requires the use of a. the term balance sheet. b. the term statement of financial position. c. neither balance sheet nor statement of financial position, but recommends use of the term balance sheet. d. neither balance sheet nor statement of financial position, but recommends use of the term statement of financial position. 167. IFRS a. requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP. b. requires a specific format for the balance sheet (statement of financial position) that is different from U.S. GAAP. c. requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP. d. requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP. 168. Most companies that follow IFRS present balance sheet (statement of financial position) information in this order: a. current assets; investments; property, plant and equipment; intangible assets; current liabilities; long term liabilities; owners' equity. b. intangible assets; property, plant and equipment; investments; current assets; current liabilities; owners' equity; long term liabilities. c. current assets; noncurrent assets; current liabilities; noncurrent liabilities; equity. d. noncurrent assets; current assets; equity; noncurrent liabilities; current liabilities. 169. Under IFRS and under GAAP, current assets are listed in IFRS GAAP a. order of liquidity order of liquidity b. reverse order of liquidity order of liquidity. c. order of liquidity reverse order of liquidity d. reverse order of liquidity reverse order of liquidity 170. The subtotal net assets is used in a. both GAAP and IFRS. b. GAAP but not IFRS. c. IFRS but not GAAP. d. neither IFRS nor GAAP. 171. Both IFRS and GAAP require disclosure about a. accounting policies followed. b. judgements that management has made in the process of applying the entity's accounting policies. c. the key assumptions and estimation uncertainty. d. All of these answer choices are correct. 172. Under IFRS a. comparative prior-period information must be presented, but financial statements need not be provided annually. b. comparative prior-period informaton must be presented, and financial statements must be provided annually. c. comparative prior-period information is not required, and financial statements need not be provided annually. d. comparative prior-period information is not required, but financial statements must be provided annually. 173. The use of fair value to report assets a. is not allowed under GAAP or IFRS. b. is required by GAAP and IFRS. c. is increasing under GAAP and IFRS, but GAAP has adopted it more broadly. d. is increasing under GAAP and IFRS, but IFRS has adopted it more broadly. 174. Under IFRS a. companies can apply fair value to property, plant, and equipment and natural resources. b. companies can apply fair value to property, plant, and equipment but not to natural resources. c. companies can apply fair value to neither property, plant, and equipment nor natural resources. d. companies can apply fair value to natural resources but not to property, plant, and equipment. 175. The IASB and FASB are working on a converged statement of financial position using the headings of a. assets, liabilities, and owner's equity. b. revenues and expenses. c. assets, liabilities, revenues, expenses and owner's equity. d. operating, investing, and financing. CLICK HERE TO GET THE ANSWER !!!!

148.    Which statement about long-term investments is not true?

a.    They will be held for more than one year.

b.    They are not currently used in the operation of the business.

c.    They include investments in stock of other companies and land held for future use.

d.    They can never include cash accounts.

Ans: D

 

149.    What is the order in which assets are generally listed on a classified balance sheet?

a.    Current and long-term

b.    Current; property, plant, and equipment; long-term investments; intangible assets

c.    Current; property, plant, and equipment; intangible assets; long-term investments

d.    Current; long-term investments; property, plant, and equipment; intangible assets

Ans: D

150.    These are selected account balances on December 31, 2014.

Land (location of the corporation’s office building)    $100,000

Land (held for future use)    150,000

Corporate Office Building    700,000

Inventory    200,000

Equipment    450,000

Office Furniture    150,000

Accumulated Depreciation    425,000

What is the total amount of property, plant, and equipment that will appear on the balance sheet?

a.    $975,000

b.    $1,125,000

c.    $1,175,000

d.    $1,400,000

Ans: A

Solution: $100,000  $700,000  $450,000  $150,000  $425,000  $975,000

    151.    The following selected account balances appear on the December 31, 2014 balance sheet of Superchunk Co.

Land (location of the corporation’s office building)    $150,000

Land (held for future use)    225,000

Corporate Office Building    800,000

Inventory    300,000

Equipment    675,000

Office Furniture    225,000

Accumulated Depreciation    640,000

What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

a.    $1,210,000

b.    $1,435,000

c.    $1,510,000

d.    $1,850,000

 

a152.    A reversing entry

a.    reverses entries that were made in error.

b.    is the exact opposite of an adjusting entry made in a previous period.

c.    is made when a business disposes of an asset it previously purchased.

d.    is made when a company sustains a loss in one period and reverses the effect with a profit in the next period.

a    153.    If a company utilizes reversing entries, they will

a.    be made at the beginning of the next accounting period.

b.    not actually be posted to the general ledger accounts.

c.    be made before the post-closing trial balance.

d.    be part of the adjusting entry process.

    154.    The steps in the preparation of a worksheet do not include

a.    analyzing documentary evidence.

b.    preparing a trial balance on the worksheet.

c.    entering the adjustments in the adjustment columns.

d.    entering adjusted balances in the adjusted trial balance columns.

    155.    Balance sheet accounts are considered to be

a.    temporary owner's equity accounts.

b.    permanent accounts.

c.    capital accounts.

d.    nominal accounts.

    156.    Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

a.    credit Income Summary $17,000, debit Owner’s Capital $17,000.

b.    credit Income Summary $17,000, debit Owner’s Drawings $17,000.

c.    debit Income Summary $17,000, credit Owner’s Drawings $17,000.

d.    debit Income Summary $17,000, credit Owner’s Capital $17,000.

    157.    The post-closing trial balance contains only

a.    income statement accounts.

b.    balance sheet accounts.

c.    balance sheet and income statement accounts.

d.    income statement, balance sheet, and owner's equity statement accounts.

 

158.    Which of the following is an optional step in the accounting cycle?

a.    Adjusting entries

b.    Closing entries

c.    Correcting entries

d.    Reversing entries

    159.    Which one of the following statements concerning the accounting cycle is incorrect?

a.    The accounting cycle includes journalizing transactions and posting to ledger accounts.

b.    The accounting cycle includes only one optional step.

c.    The steps in the accounting cycle are performed in sequence.

d.    The steps in the accounting cycle are repeated in each accounting period.

160.    Correcting entries are made

a.    at the beginning of an accounting period.

b.    at the end of an accounting period.

c.    whenever an error is discovered.

d.    after closing entries.

    161.    On September 23, Sebadoh Company received a $350 check from Surfer Rosa Inc. for services to be performed in the future. The bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should

a.    debit Cash $350 and credit Unearned Service Revenue $350.

b.    debit Accounts Receivable $350 and credit Unearned Service Revenue $350.

c.    debit Accounts Receivable $350 and credit Cash $350.

d.    debit Accounts Receivable $350 and credit Service Revenue $350.

    162.    All of the following are owner's equity accounts except

a.    the Capital account.

b.    Capital Stock.

c.    Investment in Stock.

d.    Retained Earnings.

    163.    Current liabilities

a.    are obligations that the company is to pay within the forthcoming year.

b.    are listed in the balance sheet in order of their expected maturity.

c.    are listed in the balance sheet, starting with accounts payable.

d.    should not include long-term debt that is expected to be paid within the next year.

 

a164.    The use of reversing entries

a.    is a required step in the accounting cycle.

b.    changes the amounts reported in the financial statements.

c.    simplifies the recording of subsequent transactions.

d.    is required for all adjusting entries.

165.    The classified balance sheet is

a.    required under GAAP but not under IFRS.

b.    required under IFRS in the same format as under GAAP.

c.    required under IFRS but not under GAAP.

d.    required under IFRS with certain variations in format as compared to GAAP.

166.    IFRS requires the use of

a.    the term balance sheet.

b.    the term statement of financial position.

c.    neither balance sheet nor statement of financial position, but recommends use of the term balance sheet.

d.    neither balance sheet nor statement of financial position, but recommends use of the term statement of financial position.

167.    IFRS

a.    requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP.

b.    requires a specific  format for the balance sheet (statement of financial position) that is different from U.S. GAAP.

c.    requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP.

d.    requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP.

168.    Most companies that follow IFRS present balance sheet (statement of financial position) information in this order:

a.    current assets; investments; property, plant and equipment; intangible assets; current liabilities; long term liabilities; owners' equity.

b.    intangible assets; property, plant and equipment; investments; current assets; current liabilities; owners' equity; long term liabilities.

c.    current assets; noncurrent assets; current liabilities; noncurrent liabilities; equity.

d.    noncurrent assets; current assets; equity; noncurrent liabilities; current liabilities.

 

169.    Under IFRS and under GAAP, current assets are listed in

        IFRS            GAAP   

a.    order of liquidity    order of liquidity

b.    reverse order of liquidity    order of liquidity.

c.    order of liquidity    reverse order of liquidity

d.    reverse order of liquidity        reverse order of liquidity

170.    The subtotal net assets is used in

a.    both GAAP and IFRS.

b.    GAAP but not IFRS.

c.    IFRS but not GAAP.

d.    neither IFRS nor GAAP.

171.    Both IFRS and GAAP require disclosure about

a.    accounting policies followed.

b.    judgements that management has made in the process of applying the entity's accounting policies.

c.    the key assumptions and estimation uncertainty.

d.    All of these answer choices are correct.

172.    Under IFRS

a.    comparative prior-period information must be presented, but financial statements need not be provided annually.

b.    comparative prior-period informaton must be presented, and financial statements must be provided annually.

c.    comparative prior-period information is not required, and financial statements need not be provided annually.

d.    comparative prior-period information is not required, but financial statements must be provided annually.

173.    The use of fair value to report assets

a.    is not allowed under GAAP or IFRS.

b.    is required by GAAP and IFRS.

c.    is increasing under GAAP and IFRS, but GAAP has adopted it more broadly.

d.    is increasing under GAAP and IFRS, but IFRS has adopted it more broadly.

 

174.    Under IFRS

a.    companies can apply fair value to property, plant, and equipment and natural resources.

b.    companies can apply fair value to property, plant, and equipment but not to natural resources.

c.    companies can apply fair value to neither property, plant, and equipment nor natural resources.

d.    companies can apply fair value to natural resources but not to property, plant, and equipment.

175.    The IASB and FASB are working on a converged statement of financial position using the headings of

a.    assets, liabilities, and owner's equity.

b.    revenues and expenses.

c.    assets, liabilities, revenues, expenses and owner's equity.

d.    operating, investing, and financing.

                                        

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