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Quiz

SU 9.2

Sadan Dahal 25 perguntas

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Perguntas do quiz (25)

  1. 1A physical inventory count showed an entity had inventory costing US $1,000,000 on hand at December 31, Year 1. Excluded from this amount were the following:
    • Goods costing US $82,000, shipped to a customer free on board (FOB) shipping point on December 28, Year 1. They were expected to be received by the customer on January 4, Year 2.
    Compute the correct ending inventory to be reported on the shipper’s statement of financial position at December 31, Year 1.
    1. AA. US $1,000,000
    2. BB. US $1,082,000
    3. CC. US $918,000
    4. DD. US $1,204,000
  2. 2An entity with a December 31 year end purchased US $2,000 of inventory on account. The seller was responsible for delivery to the shipping point, with freight of US $50 paid at destination by the buyer. The invoice date was December 27, Year 1, and the goods arrived on January 3, Year 2.
    Now assume the terms required the seller to deliver to the destination instead of the shipping point. What is the correct amount of inventory relating to this purchase on the Year 1 financial statements?
    1. AA. US $0
    2. BB. US $2,000
    3. CC. US $50
    4. DD. US $2,050
  3. 3Which of the following is not an appropriate basis for measuring the cost of property, plant, and equipment?
    1. AA. The purchase price, freight costs, and installation costs of a productive asset should be included in the asset’s cost.
    2. BB. Proceeds obtained in the process of readying land for its intended purpose, such as from the sale of cleared timber, should be recognized immediately as income.
    3. CC. The costs of improvements to equipment incurred after its acquisition should be added to the asset’s cost if they increase future service potential.
    4. DD. All costs incurred in the construction of a plant building, from excavation to completion, should be considered as part of the asset’s cost.
  4. 4An entity installed an assembly line in Year 1. Four years later, US $100,000 was invested to automate the line. The automation increased the market value and productive capacity of the assembly line but did not affect its useful life. Proper accounting for the cost of the automation should be to
    1. AA. Report it as an expense in Year 5.
    2. BB. Establish a separate account for the US $100,000.
    3. CC. Allocate the cost of automation between the asset and accumulated depreciation accounts.
    4. DD. Debit the cost to the property, plant, and equipment account.
  5. 5An entity purchased a machine on January 1, Year 1, for US $1,000,000. The machine had an estimated useful life of 9 years and a residual value of US $100,000. The company uses straight-line depreciation. On December 31, Year 1, the machine was sold for US $835,000. The gain or loss that should be recorded on the disposal of this machine is
    1. AA. US $35,000 gain.
    2. BB. US $65,000 loss.
    3. CC. US $65,000 gain.
    4. DD. US $165,000 loss.
  6. 6Which of the following is not an appropriate basis for measuring the historical cost of property, plant, and equipment?
    1. AA. Delivery and handling costs and installation costs of a productive asset should be included in the asset’s cost.
    2. BB. The cost should include the purchase price without a deduction for trade discounts.
    3. CC. The costs of improvements to equipment incurred after its acquisition should be added to the asset’s cost if they provide future economic benefits exceeding the originally assessed standard of performance.
    4. DD. All costs incurred in the construction of a plant building, from excavation to completion, should be considered as part of the asset’s cost.
  7. 7An entity sells a piece of machinery, for cash, prior to the end of its estimated useful life. The sale price is less than the carrying amount of the asset on the date of sale. The entry that the entity uses to record the sale is
    1. AA.
      Cash
      Accumulated depreciation -- machinery
      Loss on disposal of machinery
      Machinery
    2. BB.
      Cash
      Accumulated depreciation -- machinery
      Gain on disposal of machinery
      Machinery
    3. CC.
      Cash
      Expense -- disposal of machinery
      Accumulated depreciation -- machinery
      Machinery
    4. DD.
      Cash
      Machinery
      Accumulated depreciation -- machinery
      Gain on disposal of machinery
  8. 8On January 1, Year 1, an entity purchased an abandoned quarry for US $1,200,000 to be used as a landfill to service its trash collection contracts with nearby cities for the next 20 years. The entity depletes the quarry using the units-of-production method based on a surveyor’s measurements of volume of the quarry’s pit. This amount was 500,000 cubic yards when purchased and 350,000 cubic yards at year-end Year 1. What is the net amount that should be shown on the entity’s December 31, Year 1, statement of financial position for the quarry?
    1. AA. US $1,200,000
    2. BB. US $1,140,000
    3. CC. US $840,000
    4. DD. US $360,000
  9. 9A new machine has an initial cost of US $300,000, an estimated useful life of 2,000 hours of use over a 3-year period, and no estimated residual value. Usage rates are estimated as 500 hours in the first year, 700 hours in the second year, and 800 hours in the third year. Depreciation expense in Year 1 under the units-of-production method of depreciation will be
    1. AA. US $25,000
    2. BB. US $75,000
    3. CC. US $100,000
    4. DD. US $105,000
  10. 10A company uses straight-line depreciation for financial reporting purposes, but uses accelerated depreciation for tax purposes. Which of the following account balances would be lower in the financial statements used for tax purposes than it would be in the general purpose financial statements?
    1. AA. Accumulated depreciation.
    2. BB. Cash.
    3. CC. Retained earnings.
    4. DD. Gross property, plant, and equipment.

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Descrição
CIA Part 3 SU 9 Quiz sobre SU 9.2, criado por Sadan Dahal em 20-06-2020.
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English
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