ACCT 3301 INTERMEDIATE
ACCOUNTING I - EXAM #2 QUESTIONS
WITH CORRECT DETAILED ANSWERS
A cash equivalent is a short term, highly liquid investment
that is readily convertible into known amount amounts of
cash and...
A. Bears an interest rate that is an at least Equal to the
prime rate of interest at the date of liquidation
B. Is so near its maturity that it presents insignificant risk
of changes in liquidity.
C. Is support for borrowing arrangements of a corporation
with a lending institution.
D. Is set aside for a particular purpose, such as debt
retirement. - correct answer- B. Is so near its
maturity that it presents insignificant risk of changes and
liquidity
A transaction price for multiple performance obligations
should be allocated based on...
A. Selling price from the compan's competitors.
, B. What the company could sell the goods for on a
standalone basis.
C. Forecasted cost of satisfying performance obligation.
D. Total transaction price less residual value. - correct
answer- B. What the company could sell the goods
for on standalone basis
Angie invested $50,000 she received from her
grandmother today in a fund that is expected to earn 10%
annually. To what amount should the investment grow in
five years if interest is compounded semi m-annually?
A. $77,567
B. $80,525.
C. $81,445.
D. $88,578. - correct answer- C. $81,445.
Before year end, adjusting entries, done companies
account balances at December 31, 2024 for account
receivable in the related allowance for uncollectible
accounts were $1,500,000 and $90,000 respectively. An
account receivable indicated that $125,000 of the
ACCOUNTING I - EXAM #2 QUESTIONS
WITH CORRECT DETAILED ANSWERS
A cash equivalent is a short term, highly liquid investment
that is readily convertible into known amount amounts of
cash and...
A. Bears an interest rate that is an at least Equal to the
prime rate of interest at the date of liquidation
B. Is so near its maturity that it presents insignificant risk
of changes in liquidity.
C. Is support for borrowing arrangements of a corporation
with a lending institution.
D. Is set aside for a particular purpose, such as debt
retirement. - correct answer- B. Is so near its
maturity that it presents insignificant risk of changes and
liquidity
A transaction price for multiple performance obligations
should be allocated based on...
A. Selling price from the compan's competitors.
, B. What the company could sell the goods for on a
standalone basis.
C. Forecasted cost of satisfying performance obligation.
D. Total transaction price less residual value. - correct
answer- B. What the company could sell the goods
for on standalone basis
Angie invested $50,000 she received from her
grandmother today in a fund that is expected to earn 10%
annually. To what amount should the investment grow in
five years if interest is compounded semi m-annually?
A. $77,567
B. $80,525.
C. $81,445.
D. $88,578. - correct answer- C. $81,445.
Before year end, adjusting entries, done companies
account balances at December 31, 2024 for account
receivable in the related allowance for uncollectible
accounts were $1,500,000 and $90,000 respectively. An
account receivable indicated that $125,000 of the
