ACCT_370_QUIZ_3 (CH 10-15)
Liberty University ACCT 370 Quiz 3 (100% Correct)
Included many different versions (8 Different versions set, 1000+ MCQ Answers Key) to get an A on your grade.
The below shown few sample Questions.
1. The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on October 20 and Title pays $16,000, agreeing to pay the balance on November 10.
Under the cash basis, how much revenue should Canon recognize in October?
A) $0
B) $16,000
C) $24,000
D) $40,000
2. Accounting treatment for changes in accounting principle are best described as:
A) Changes in accounting principle that are only permitted when FASB issues a standard that revises GAAP.
B) Changes in accounting principle that are always accounted for using the retrospective approach which requires only a restatement of prior years’ presented financial information.
C) Changes in accounting principle that may require both a restatement of prior years’ financial information and the recording of a cumulative adjustment to retained earnings.
D) Tax effects are ignored when reporting changes in accounting principles.
3. Accrual accounting decouples measured earnings from operating cash inflows and outflows. Accumulated depreciation is a/an:
A) expense account.
B) liability account.
C) contra-asset account.
D) owners’ equity account.
4. Adjusting entries are used in all but which of the following situations?
A) Prepayments.
B) Deferred Revenue and Expenses.
C) Accrued Revenue and Expenses.
D) Prepayments, Deferred Revenue, Accrued Expenses, Accrued Revenue.
5. Entering the DR or CR amount in the appropriate left or right side of the affected T-account is called:
A) posting.
B) cross-referencing.
C) journalizing.
D) recording.
6. For each transaction, the dollar total of the debits must equal the dollar total of the credits. For what reasons does management have incentive to meet analysts’ expectations?
A) To build credibility with capital markets.
B) To convey future earnings prospects to investors.
C) To increase stock price.
D) All of these answer choices are correct.
7. Which of the following is not an accurate statement regarding the compensation committee?
A) It selects the performance metrics used.
B) It may adjust a calculated award up or down at its discretion.
C) It selects the annual or multiyear performance goals.
D) It is comprised of both internal and external directors.
8. The method of measuring long-lived assets at their estimated value in an input market is the:
A) net realizable value approach.
B) discounted present value approach.
C) economic sacrifice approach.
D) expected benefit approach.
9. Expected benefit approaches for valuing long-lived assets are not used in current U.S. GAAP because the numbers generated under these methods are inaccurate and:
A) neutral.
B) objective.
C) not verifiable.
D) fictitious.
10. Hickory sold $32,000 of the inventory and has agreed to pay warranty expenses for its customers. These are expected to be $1,600 and occur evenly over the next four months (i.e., starting in June).
What is the amount of Hickory’s cash-basis expenses for the month of May?
A) $33,600
B) $42,400
C) $50,000
D) $51,600
