WGU D105 INTERMEDIATE ACCOUNTING 3
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
1. Accounting Poli-
cies The specific accounting principles and methods currently employed and
consid- ered most appropriate to present fairly the financial statements of
an enterprise
2. Amortized cost The acquisition cost adjusted for the amortization of discount or premium,
if
appropriate
3. Asset-Liability Ap- The approach recognizes and measures revenue based on changes in
assets and
proach liabilities
4. Asset-Liability A method used to account for income taxes that recognizes the amount
Method
of taxes payable or refundable for the current year and records deferred
tax liabilities ans assets for the future tax consequences of events that have
been recognized in the financial statements or tax returns
5. Assurance-
type Warranty
A warranty that the product meets the agreed-upon specifications in the
contract at the time the product is sold
6. Available-for-sale Securities not classified as held-to-maturity or trading securities
7. Bargain Purchase A lease purchase option that allows the lessee to purchase the property
for a price
Option (BPO) Arrangement
8. Bargain
Renewal
Option (BRO)
9. Bill-and-Hold
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, WGU D105 INTERMEDIATE ACCOUNTING 3
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
gnificantly lower than the lease provision that allows the lessee to renew the lease for a period of
underlying asset's time at a rent lower than the market rental price
expected fair value at the
date the option contract under which an entity bills a customer for a product but the entity
becomes exercisable retains physical possession of the product until it is transferred to the
customer at a point in time in the future
10. Billings Account Under the percentage-of-completion method, when a company
records a receiv- able from a sale, it must subtract the balance from
this account from Construction in Process to avoid double-counting
inventory.
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16
, WGU D105 INTERMEDIATE ACCOUNTING 3
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
11. Change in ac- Change from one generally accepted accounting principle to another
counting princi-
ple
12. Changes in Ac-
counting Esti- change that occurs as the result of new information or as additional
mates
experience is acquired
13. Collectibility The risk that a customer will be unable to pay the amount of
consideration in
accordance with the contract.
14. Completed
Con- tract the accounting for long-term construction contracts where revenues and
Method gross profit are recognized only when the contract is completed
15. Consignee The party that receives goods from a consignor under a consignment
16. Consignment The consignor ships the merchandise to the consignee, who is to act
as an agent for the consignor in selling the merchandise
17. Consignor The party that sends good to a consignee under consignment
18. Consolidated Fi-
nancial State- financial statements which disregard the distinction between separate
ments legal enti- ties and treat parent and subsidiary corporations as a single
economic entity
19. Contract Assets (1) Unconditional rights to receive consideration because the company
has sat- isfied its performance obligation with a customer, and (2)
conditional rights to receive consideration because the company has
satisfied one performance oblig- ation but must satisfy another
performance obligation in the contract before it can bill the customer.
3/
16
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
1. Accounting Poli-
cies The specific accounting principles and methods currently employed and
consid- ered most appropriate to present fairly the financial statements of
an enterprise
2. Amortized cost The acquisition cost adjusted for the amortization of discount or premium,
if
appropriate
3. Asset-Liability Ap- The approach recognizes and measures revenue based on changes in
assets and
proach liabilities
4. Asset-Liability A method used to account for income taxes that recognizes the amount
Method
of taxes payable or refundable for the current year and records deferred
tax liabilities ans assets for the future tax consequences of events that have
been recognized in the financial statements or tax returns
5. Assurance-
type Warranty
A warranty that the product meets the agreed-upon specifications in the
contract at the time the product is sold
6. Available-for-sale Securities not classified as held-to-maturity or trading securities
7. Bargain Purchase A lease purchase option that allows the lessee to purchase the property
for a price
Option (BPO) Arrangement
8. Bargain
Renewal
Option (BRO)
9. Bill-and-Hold
1/
16
, WGU D105 INTERMEDIATE ACCOUNTING 3
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
gnificantly lower than the lease provision that allows the lessee to renew the lease for a period of
underlying asset's time at a rent lower than the market rental price
expected fair value at the
date the option contract under which an entity bills a customer for a product but the entity
becomes exercisable retains physical possession of the product until it is transferred to the
customer at a point in time in the future
10. Billings Account Under the percentage-of-completion method, when a company
records a receiv- able from a sale, it must subtract the balance from
this account from Construction in Process to avoid double-counting
inventory.
2/
16
, WGU D105 INTERMEDIATE ACCOUNTING 3
QUESTIONS & VERIFIED PASSED ANSWERS
NEWEST VERSION
11. Change in ac- Change from one generally accepted accounting principle to another
counting princi-
ple
12. Changes in Ac-
counting Esti- change that occurs as the result of new information or as additional
mates
experience is acquired
13. Collectibility The risk that a customer will be unable to pay the amount of
consideration in
accordance with the contract.
14. Completed
Con- tract the accounting for long-term construction contracts where revenues and
Method gross profit are recognized only when the contract is completed
15. Consignee The party that receives goods from a consignor under a consignment
16. Consignment The consignor ships the merchandise to the consignee, who is to act
as an agent for the consignor in selling the merchandise
17. Consignor The party that sends good to a consignee under consignment
18. Consolidated Fi-
nancial State- financial statements which disregard the distinction between separate
ments legal enti- ties and treat parent and subsidiary corporations as a single
economic entity
19. Contract Assets (1) Unconditional rights to receive consideration because the company
has sat- isfied its performance obligation with a customer, and (2)
conditional rights to receive consideration because the company has
satisfied one performance oblig- ation but must satisfy another
performance obligation in the contract before it can bill the customer.
3/
16
