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 point 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
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Coopersmith Career Consulting ACC-301 Final Exam Version A
, Coopersmith Career Consulting Intermediate Accounting I-Final Exam
Name: ________________________ Exam ID: A
Date: _________________________ Student ID: _______________
10) In a periodic inventory system, the cost of purchases is debited to:
A) Inventory.
B) Purchases.
C) Cost of goods sold.
D) Accounts payable.
Answer: B
11) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water
District #45 on April 12 of the current year with terms 1/15, n/60. Oswego
uses the gross method of accounting for sales discounts.
What entry would Oswego make on April 12?
A)
Accounts receivable 45,540
Sales discounts 460
Sales 46,000
B)
Accounts receivable 46,000
Sales 45,540
Sales discounts 460
C)
Accounts receivable 46,000
Sales 46,000
D)
Accounts receivable 45,540
Sales 45,540
Answer: C
3
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 point 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: _______________
10) In a periodic inventory system, the cost of purchases is debited to:
A) Inventory.
B) Purchases.
C) Cost of goods sold.
D) Accounts payable.
Answer: B
11) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water
District #45 on April 12 of the current year with terms 1/15, n/60. Oswego
uses the gross method of accounting for sales discounts.
What entry would Oswego make on April 12?
A)
Accounts receivable 45,540
Sales discounts 460
Sales 46,000
B)
Accounts receivable 46,000
Sales 45,540
Sales discounts 460
C)
Accounts receivable 46,000
Sales 46,000
D)
Accounts receivable 45,540
Sales 45,540
Answer: C
3
Coopersmith Career Consulting ACC-301 Final Exam Version A
