ACCOUNTING
Coopersmith Career Consulting Intermediate Accounting I-Final Exam
Name: ________________________ Exam ID: A
Date: _________________________ Student ID: _______________
Coopersmith Career Consulting
Intermediate Accounting I – Final Exam
Multiple Choice (1.5 points each)
Identify the choice that best completes the statement or answers the question.
Clearly circle the letter or whole choice of the answer you choose. If you wish to change your
answer, please CLEARLY write the letter of your choice next to the question.
1) External decision makers would not look primarily to financial accounting information to
assist them in making decisions on:
A) Selecting stocks.
B) Mergers and acquisitions.
C) Capital budgeting.
D) Granting credit.
Answer: C
2) Which of the following was the first private-sector entity that set accounting standards in
the United States?
A) Accounting Principles Board.
B) Financial Accounting Standards Board.
C) AICPA.
D) Committee on Accounting Procedure.
Answer: D
3) Which of the following is not an indicator that the customer is likely to have control over
a good?
A) Physical possession of the asset
B) Legal title to the asset
C) Asset warehoused by seller-affiliated third party
D) Accepted the asset
Answer: C
4) Under the retail inventory method:
A) None of the other answer choices are correct.
B) A company measures inventory on its balance sheet on a LIFO basis.
C) A company measures inventory on its balance sheet at current selling prices.
D) A company measures inventory on its balance sheet by converting retail prices to
cost.
Answer: D
1
Coopersmith Career Consulting ACC-301 Final Exam Version A
, Coopersmith Career Consulting Intermediate Accounting I-Final Exam
Name: ________________________ Exam ID: A
Date: _________________________ Student ID: _______________
5) Earnings quality refers to:
A) the ability of management to quickly collect cash from customers.
B) the ability of reported earnings to predict a company’s future earnings.
C) the ability of management to sell its inventory for a profit.
D) the ability of management to budget for expenditures in the following year.
Answer: B
6) Under International Financial Reporting Standards, research expenditures are
A) Expensed in the period they are determined to be unsuccessful.
B) Expensed if unsuccessful, capitalized if successful.
C) Expensed in the period incurred.
D) Capitalized if certain criteria are met.
Answer: C
7) The difference between single-step and multiple-step income statements is primarily an
issue of
A) Consistency.
B) Valuation.
C) Measurement.
D) Presentation.
Answer: D
8) Under the LIFO retail method, which of the following is used to calculate the
denominator of the current-period cost-to-retail percentage?
A) Employee discounts.
B) Beginning inventory.
C) None of the other answer choices are correct.
D) Normal spoilage.
Answer: C
9) An asset that has an estimated physical life of six years and an estimated service life of
four years should be depreciated over:
A) Any of these choices can be chosen by management.
B) Five years.
C) Six years.
D) Four years.
Answer: D
2
Coopersmith Career Consulting ACC-301 Final Exam Version A
Coopersmith Career Consulting Intermediate Accounting I-Final Exam
Name: ________________________ Exam ID: A
Date: _________________________ Student ID: _______________
Coopersmith Career Consulting
Intermediate Accounting I – Final Exam
Multiple Choice (1.5 points each)
Identify the choice that best completes the statement or answers the question.
Clearly circle the letter or whole choice of the answer you choose. If you wish to change your
answer, please CLEARLY write the letter of your choice next to the question.
1) External decision makers would not look primarily to financial accounting information to
assist them in making decisions on:
A) Selecting stocks.
B) Mergers and acquisitions.
C) Capital budgeting.
D) Granting credit.
Answer: C
2) Which of the following was the first private-sector entity that set accounting standards in
the United States?
A) Accounting Principles Board.
B) Financial Accounting Standards Board.
C) AICPA.
D) Committee on Accounting Procedure.
Answer: D
3) Which of the following is not an indicator that the customer is likely to have control over
a good?
A) Physical possession of the asset
B) Legal title to the asset
C) Asset warehoused by seller-affiliated third party
D) Accepted the asset
Answer: C
4) Under the retail inventory method:
A) None of the other answer choices are correct.
B) A company measures inventory on its balance sheet on a LIFO basis.
C) A company measures inventory on its balance sheet at current selling prices.
D) A company measures inventory on its balance sheet by converting retail prices to
cost.
Answer: D
1
Coopersmith Career Consulting ACC-301 Final Exam Version A
, Coopersmith Career Consulting Intermediate Accounting I-Final Exam
Name: ________________________ Exam ID: A
Date: _________________________ Student ID: _______________
5) Earnings quality refers to:
A) the ability of management to quickly collect cash from customers.
B) the ability of reported earnings to predict a company’s future earnings.
C) the ability of management to sell its inventory for a profit.
D) the ability of management to budget for expenditures in the following year.
Answer: B
6) Under International Financial Reporting Standards, research expenditures are
A) Expensed in the period they are determined to be unsuccessful.
B) Expensed if unsuccessful, capitalized if successful.
C) Expensed in the period incurred.
D) Capitalized if certain criteria are met.
Answer: C
7) The difference between single-step and multiple-step income statements is primarily an
issue of
A) Consistency.
B) Valuation.
C) Measurement.
D) Presentation.
Answer: D
8) Under the LIFO retail method, which of the following is used to calculate the
denominator of the current-period cost-to-retail percentage?
A) Employee discounts.
B) Beginning inventory.
C) None of the other answer choices are correct.
D) Normal spoilage.
Answer: C
9) An asset that has an estimated physical life of six years and an estimated service life of
four years should be depreciated over:
A) Any of these choices can be chosen by management.
B) Five years.
C) Six years.
D) Four years.
Answer: D
2
Coopersmith Career Consulting ACC-301 Final Exam Version A
