WorksheetsINTERMEDIATE ACCOUNTING
Total questions: 50
Worksheet time: 32mins
Which of the following is the main objective of good system of internal control?
Increase sales
Provide a means of gathering information about competitors.
Prevent errors and irregularities in the accounting records.
Prosecute employees who embezzle from the company.
Which of the following is another term for irregularities?
Errors
Unintentional mistakes
Fraud
Defects in internal control
What is the basic requirement for cash and cash equivalents?
Unrestricted in use for current operations
Available for the purchase of property, plant, and equipment.
Set aside for the liquidation of long - term debt.
Deposited in bank
Which of the following shall NOT be considered cash for financial reporting purposes?
Petty cash fund
Money orders
Coins and currency
IOUs
Which of the following is usually considered cash?
Certificate of deposit
Checking account
Money market saving certificate.
Postdated check
What is compensating balance?
Saving account balance
Demand deposit account balance
Temporary investment serving as collateral for outstanding loan.
Minimum deposit required to be maintained in connection with a borrowing arrangement.
Which of the following is NOT a cash or cash equivalents?
Redeemable preference shares acquired and due in 60 days.
Commercial papers held and due for repayment in 90 days.
Equity investments
A bank overdraft
How should bank overdraft be reported in the financial statement?
As a deduction from current assets
As a deduction from cash
Netted against cash and a net cash amount reported.
As a current liability
Which of the following is NOT a cash and cash equivalent?
A three - year treasury note maturing on January 31 of the next year purchased by the entity on December 1 of the current year.
A three - year treasury note maturing on January 31 of the next year purchased by the entity on October 1 of the current year.
A 90 - day treasury bill
A 60 - day money market placement
Which of the following is NOT correct?
The accounting function should be separated from custodianship of assets.
Certain clerical personnel should be rotated among various jobs.
The responsibility for receiving merchandise and paying for it should be given to one (1) person.
Entity personnel should be given well - defined responsibilities.
When financial statements are prepared, the balance of Petty Cash account is:
Not reflected in the financial statements.
Reported along with other unrestricted cash items in the current asset section of the balance sheet.
Reported as restricted cash in the balance sheet.
Reported as miscellaneous expense item on the income statement.
Which of the following should NOT be included in the Cash option on the balance sheet?
Coins and currencies in the cash register.
Checks from other parties present in the cash register.
Amounts on deposit in checking account at the bank.
Postage stamps on hand
What is the treatment of customers postdated check?
Accounts receivable
Prepaid expenses
Cash
Accounts payable
Which of the following is NOT a characteristic of system of cash control?
Uses a voucher system.
Combined responsibility for handling and recording cash.
Daily deposit of all cash received.
Internal audit at irregular intervals.
What is proof of cash?
It is a physical count of currencies on hand at the end of reporting period.
It is a formal statement showing the total cash receipt during the year.
It is a four-column bank 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 disbursements of the bank and the depositor during the month.
It is a summary of cash receipts and cash payments.
Which of the following would NOT require an adjusting entry on the depositor's books?
NSF check
Check in payment of account payable by the depositor is overstated.
Depositor of another entity is credited by the bank to the account of the depositor.
Bank service charge
Under which classification is cash restricted for plant expansion reported?
Current assets
Non - current liabilities
Current Liabilities
Equity
Which of the following should NOT be considered as cash?
Change fund
Certified check
Personal check
Postdated check
Which of the following is NOT a category of financial assets?
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Financial assets at amortized cost
Financial assets held for sale
An entity purchased government bonds. The entity's business model in managing financial assets is achieved by collecting contractual cash flows that are solely payments of principal; and interest on the principal amount outstanding and by selling the financial assets. Which of the following is the most appropriate classification for investment in bonds?
Held for trading.
At fair value through profit or loss
At amortized cost
At fair value through other comprehensive income
Accounting as?
(a)
Traced to the times of Summer, in Mesopotamia, starting in the 4th millennium BCE.
Accounting in Egypt and Greece
Byzantine Empire
Accounting in Sumerian Times
History of Accounting
Complex accounting system to account all the transaction involved.
Accounting in Egypt and Greece
Birth of Modern Accounting
Accounting in Sumerian Times
History of Accounting
What did Archeologist Dr. Gunter Dreyer of the German Institute of Archeology discover?
Who is the Archeologist in the German Institute of Archeology?
(a)
Where was the Greek accounting kept?
(a)
Where was the Archeological exploration unearthed?
Tigris
Euphrates
Tigris and Euphrates
Between the Tigris and Euphrates
Where did the Sumerian Times record the documents?
(a)
Who founded and introduced the system of recording business transaction?
(a)
What book did Luca Pacioli published?
(a)
What "Summa de Arithmetica, Geometria, Proportioni et Proportionalita" now formalized?
(a)
Practiced and comprehensive discipline. Proper recording of historical events.
Managerial Accounting
Financial Accounting
Cost Accounting
Government Accounting
It is a Measurement and recognition of the cost of services and products. It is also needed to control cost is prevalent.
Government Accounting
Financial Accounting
Managerial Accounting
Cost Accounting
Internal to the business
Managerial Accounting
Cost Accounting
Government Accounting
Financial Accounting
It is to ensure the reliability and relevance of information provided to external users.
Financial Accounting
Cost Accounting
Managerial Accounting
Tax Accounting
Analyzing, measuring, recording, and distributing reports of all transactions involving the inflows and outflows of government funds.
Tax Accounting
Cost Accounting
Government Accounting
Accounting
What accounting profession does not follow the conventions of accounting; Generally Accepted Accounting Principles (GAAP)?
Financial Accounting
Managerial Accounting
Cost Accounting
Tax Accounting
In public traded companies, what did the Managerial Accounting adhere that provides the minimum internal reporting standards?
(a)
What is the meaning of GAM?
(a)
What accounting profession that needs to be submitted to different taxing authorities such Bureau of Internal Revenue (BIR) and Local Government Unit (LGU)
Tax Accounting
Financial Accounting
Cost Accounting
Managerial Accounting
Which of the following best describes trade discounts?
Not recorded in the accounts; they are a means of computing price.
Used to avoid frequent changes in catalogues.
Used to quote different prices for different quantities purchased.
All of the above
What are the two (2) classifications of receivables as to source?
Trade and non-trade receivables
Current and non-current receivables
Important and specific receivables
None of the above
Jake Co. receives 10,000 from an unsecured open account. What is the classification of this collected receivable?
Accounts receivable
Accounts payable
Notes receivable
Loans receivable
ABC company collected 100,000 for the receivable that have been outstanding for almost 16 months. The normal operating cycle of the business is two (2) years. For financial statement presentation purposes, what was the classification of this receivable before it was collected?
Current receivables
Non-current receivables
Trade receivables
Non-trade receivables
It is usually offered to induce prompt payment of accounts.
Trade discount
Cash discount
Sales returns
Sales allowance
Which term is used to describe the signatory of a promissory note?
Payee
Maker
Receiver
Mortgagee
It is the amount of interest earned by the bank and is computed by getting the product of maturity value, bank discount rate, and discount period.
Discount
Proceeds
Principal
Rebate
These are the fees charged by the bank against the borrower for the creation of loan.
Amortizing fees
Borrowing fees
Origination fees
Service fees
It is a type of financing where the company pledges their receivable as collateral for a loan.
Factoring of receivables
Discounting of receivables
Sale of receivables with recourse
Assignment of receivables
It is a method where it immediately recognizes an expense account if there is an indication that the accounts are uncollectible.
Allowance method
Estimation method
Effective interest method
Direct write off method
