ACCT 1220 Exam questions and answers 2023 with complete solution

ACCT 1220 Exam questions and answers 2023 with
complete solution
On a classified statement of financial position, prepaid expenses are classified as:
(a) a current liability.
(b) property, plant, and equipment.
(c) a current asset.
(d) a long-term investment.
a current asset.
A current asset is:
(a) the last asset purchased by a business.
(b) an asset which is not currently being used to produce a product or service.
(c) usually found as a separate classification in the income statement.
(d) expected to be converted to cash or used in the business within a relatively short
period of time.
expected to be converted to cash or used in the business within a relatively short period
of time.
Which of the following is not classified as a current asset?
(a) supplies
(b) short-term (trading) investments
(c) a fund to be used to purchase a building within the next year
(d) equipment with an estimated useful life of five years
equipment with an estimated useful life of five years
An intangible asset:
(a) derives its value from the rights and privileges it provides the company.
(b) is worthless because it has no physical substance.
(c) is converted into a tangible asset during the year.
(d) cannot be classified on the statement of financial position because it lacks physical
substance.
derives its value from the rights and privileges it provides the company.
Which of the following is not considered to be an asset?
(a) equipment
(b) dividends
(c) accounts receivable
(d) inventory
dividends
The difference between cost and accumulated depreciation is referred to as:
(a) net depreciation.
(b) carrying amount.
(c) fair value.
(d) cost value.
carrying amount
Trademarks would appear in which section of the statement of financial position?
(a) Shareholders' equity
(b) Investments

, (c) Intangible assets
(d) Current assets
Intangible assets
Liabilities are generally classified on a statement of financial position as:
(a) small liabilities and large liabilities.
(b) present liabilities and future liabilities.
(c) tangible liabilities and intangible liabilities.
(d) current liabilities and non-current liabilities.
current liabilities and non-current liabilities.
Which of the following would not normally be classified as a non-current liability?
(a) current maturities of non-current debt
(b) bonds payable
(c) mortgage payable
(d) lease liabilities
current maturities of non-current debt
Which of the following is not normally a current liability?
(a) salaries payable
(b) accounts payable
(c) income tax payable
(d) bonds payable
bonds payable
Office equipment is classified on the statement of financial position as:
(a) a current asset.
(b) property, plant, and equipment.
(c) shareholders' equity.
(d) a long-term investment
property, plant, and equipment.
Current liabilities are expected to be:
(a) converted to cash within one year.
(b) paid within one year.
(c) used in the business within one year.
(d) acquired within one year
paid within one year.
On a classified statement of financial position, current assets are often listed:
(a) in alphabetical order.
(b) with the largest dollar amounts first.
(c) in the order in which they are expected to be converted into cash.
(d) in the order of acquisition.
in the order in which they are expected to be converted into cash.
Long-lived assets without physical substance are:
(a) listed directly under current assets on the statement of financial position.
(b) not listed on the statement of financial position because they do not have physical
substance.
(c) intangible assets
(d) listed as a long-term investment on the statement of financial position.
intangible assets