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Examen Contabilidad Intermedia

I. Multiple Choice
1. The major elements of the income statement are:
a. Revenue, cost of goods sold, selling expenses, and general expense.
b. Operating section, nonoperating section, discontinued operations,
extraordinary items, and cumulative effect.
c. Revenues, expenses, gains, and losses.
d. All of these
2. Information in the income statement helps users to
a. Evaluate the past performance of the Enterprise.
b. Provide a basis for predicting future performance
c. Help assess the risk or uncertainty of achieving future cash flows.
d. All of these
3. Limitations of the income statement include all of the following except
a. Items that cannot be measured reliably are not reported.
b. Only actual amounts are reported in determining net income.
c. Income measurement involves judgment
d. Income numbers are affected by the accounting methods employed.
4. Which of the following would represent the least likely to use of an income
statement prepared for the business enterprise?
a. Use by costumers to determine a company’s ability to provide needed
goods and services
b. Use by labor unions to examine earning closely as a basis for salary
discussions
c. Use by government agencies to formulate tax and economic policy
d. Use by investors interested in the financial position of the entity.
5. Which of the following is an example of managing earnings up?
a. Decreasing estimated salvage value of equipment
b. Writing off obsolete inventory
c. Underestimating warranty claims
d. Accruing a contingent liability for an ongoing lawsuit
6. What might a manager do during the last quarter of a fiscal year if she wanted to
improve current annual net income?
a. Increase research and development activities
b. Relax credit policies for customers
c. Delay shipments to customers until after the end of the fiscal year
d. Delay purchases from suppliers until after the end of the fiscal year

Delay shipments to customers until after the end of the fiscal year b. Stock purchased in 1996 deemed worthless in 2010. It does not imply that one type of revenue or expense has priority over another 9. Including gains and losses form discontinued operations of a component of a business in determining net income e. It matches costs and expenses with related revenues d. All of these 11. 10. Relax credit policies for customers c. Freight-out d. 12. It reports gross profit for the year b. Which of the following is an advantage of the single-step income statement over the multiple-step income statement? a. The single-step income statement emphasizes a. Including prior period adjustments in determining net income b. Total revenues and total expenses c. A multiple-step income statement c. Which of the following is not a generally practiced method of presenting the income statement? a. A consolidated statement of income d. The gross profit figure b.7. Store supplies consumed 13. A single-step statement b. The consolidated statement of income d. Which of the following is an acceptable method of presenting the income statement? a. d. an event or transaction should be . Pay suppliers all amounts owed d. The single-step income statement c. Which of the following is not a selling expense? a. Advertising expense b. Extraordinary items and accounting changes more than these are emphasized in the multiple-step income statement. Office salaries expense c. The various components of income from continuing operations. Expenses are classified by function c. Delay purchases from suppliers until after the end of the fiscal year 8. In order to be classified as an extraordinary item in the income statement. What might a manager do during the last quarter of a fiscal year if she wanted to decrease current annual income? a.

but it need not be material Infrequent and material in amount. dollar. Shown net of income tax after ordinary net earnings but before extraordinary items d. Balance sheet information is useful for all of the following except: a. Evaluating a company’s financial flexibility . All of these 17. 15. b. Which of the following is a limitation to the balance sheet? a. Solvency c. 14. Balance sheet information is useful for all of the following except: a. infrequent.a. Current fair value is not reported d. Which of these is generally an example of an extraordinary item? a. Analyse cash inflows and outflows for the period c. Shown as a separate item in operating revenues or expenses if material and supplemented by a footnote if deemed appropriate. but it need not be infrequent. 16. d. How should an unusual event not meet the criteria for an extraordinary item be disclosed in the financial statement? a. Assess future cash flows 19. d. Financial flexibility 18. Shown net of income tax after extraordinary items but before net earnings. Evaluate capital structure d. The balance sheet is useful for analyzing all of the following except: a. c. and material in amount Unusual in natura and infrequent. b. Many items that are of financial value are omitted b. Assessing a company’s risk b. but it need to be unusual in nature. Gain resulting from the devaluation of the U. Compute rates of return b. Evaluating a company’s liquidity c. Write-off of deferred marketing costs believed to have no future benefits c. Liquidity b. Judgments and estimates are used c. Loss incurred because of a strike by employees b. Gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot.S. Unusual in nature. Profitability d. Shown in operating revenues or expenses ir material but not shown as a separate item c. Unusual in nature and material.

A limitation of the balance sheet that is not also a limitation of the income statement is a. The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as a. Cash. Current assets minus current liabilities b. Cash. prepaid items. Determining the increase in cash due to operations d. Financial flexibility c. Computing rates of return b. account receivable. Evaluating the capital structure of the enterprise c. Total assets plus total liabilities c. prepaid items d. Omitted items c. Liquidity d. inventories b.d. Exchangeability 24. Cash. Cash. accounts receivable . The net assets of a business are equal to a. The balance sheet contributes to financial reporting by providing a basis for all of the following except: a. The numbers are affected by the accounting method employed d. The use of judegment and estimates b. prepaid items. inventories. inventories. Total assets minus total stockholders’ equity d. prepaid items c. Failure to reflect current value information b. The correct order to present current assets is a. accounts receivable. Assessing the liquidity and financial flexibility of the enterprise 22. accounts receivable. The extensive use of separate classifications c. None of these 25. inventories. One criticism not normally aimed at the balance sheet prepared using current accounting and report in standards is a. Solvency b. Failure to include items of financial value that cannot be recorded objectively 23. Determining free cash flows 20. Valuation of the items at historical cost 21. An extensive use of estimates d.

000 Net income 1.000 Retained earnings. Please answer the following in good form 1. net of tax $ 430. as adjusted at: .000 Dividends declared 320.000.000 Retained earnings. 1/1/10. Moorman Corporation reports the following information: Correction of understatement of depreciation expense in prior years. net of tax $ 430. 1/1/10.000 Moorman should report retained earning.II.000 Net income 1. Moorman Corporation reports the following information: Correction of understatement of depreciation expense in prior years.000 Dividends declared 320.000.000. 12/31/10. 1/1/10. as reported 2.000. As adjusted at: 2.000 Moorman should report retained earnings. as reported 2.

Valuation of Balance Sheet Items ____ 1.3.000. Property. 1/1/10. Trade accounts payable .000 Retained earnings. Copyrights ____ 7. Natural resources ____ 4. Merchandise inventory ____ 8.000. Land (future plant site) ____11.555. 1/1/10. as reported 1. Patents ____12. Leonard Corporation reports the following information: Correction of overstatement of depreciation expense in prior years.000 Ending RE.000 Leonard should report retained earnings. Long-term bonds payable ____ 9. Trade accounts receivable ____ 6. at: Beg RE. net of tax $ 215. plant.000 Net income 500. Land (in use) ____10. 1/1/12 Prior period adjustment: Overstatement of depreciation expense (net of tax) + Net Income -Devidends declared $ 1.000 500.000 Net income 500. Common Stock ____ 2. as reported 1. as adjusted at: 4. Prepaid expenses ____ 3.000 215. Leonard Corporation reports the following information: Correction of overstatement of depreciation expense in prior years.000) 5. and equipment ____ 5. 1/1/10.000 Retained earnings.000 Dividends declared 160. net of tax $ 215.000. Trading securities ____13.000 (160.000 Dividends declares 160.000 Leonard should report retained earnings. 12/31/12 $1. 12/31/10.

c. i.a. o. w. p. x. u. y. less unamortized discount or pl Amount payable when due Market value at balance sheet date Net realizable value Lower of cost or market Original cost less accumulated amortization Original cost less accumulated depreciation Historical cost Unexpired or unconsumed cost n. q. . d. m. l. j. k. e. r. f. Par value Current cost of replacement Amount payable when due. s. b. t. v. g. h.

.z. aa. ab.