INTERMEDIATE ACCOUNTING 1 FINAL
EXAMINTION MASTER BONDS,
IMPAIRMENT, AND LOAN RECEIVABLES"
ESSENTIAL PRACTICE FOR STUDENTS"|
AVAILABLE FOR FREE| A+ STUDENTS
1.After initial recognition, bonds payable shall be measured at
a. Amortized cost using the effective interest method
b. Fair value through profit or loss
c. Either amortized cost using the effective interest method or fair
value through other comprehensive income
d. Either amortized cost using the effective interest method or fair
value through profit or loss
2. An entity purchased land and hotel with the plan to tear down the
hotel and build a new hotel. The allocated cost of the old hotel
should be
a. Depreciated over the remaining life of the old hotel
b. Written off as loss in the year the hotel is torn down
c. Capitalized as part of the cost of the land
d. Capitalized as part of the cost of the new hotel
3. An entity is performing its annual test of the impairment of goodwill
for a cash generating unit. The entity has determined that the fair
value of the unit exceeds the carrying amount. Which of the
following statements is true concerning the test of impairment?
a. Goodwill should be written down as impaired
b. The assets and liabilities should be valued to determine if there
has been an impairment of goodwill
c. Impairment is not indicated and no additional analysis is
necessary
d. Goodwill should be retested at the entity level
, 4. On July 1, 2019, an entity obtained a two-year 8% note receivable
for services rendered. At that time, the market rate of interest was
10%. The face amount of the note and the entire amount of interest
are due on June 30, 2021. Interest receivable on December 31,
2019 is
a. 4% of the face amount of the note
b. 5% of the face amount of the note
c. 5% of the July 1, 2019 present value of the amount due on June
30, 2021
d. 4% of the July 1, 2019 present value of the amount due on June
30, 2021
5. In preparing a bank reconciliation, interest paid by the bank on the
account is
a. Added to the bank balance
b. Subtracted from the bank balance
c. Added to the book balance
d. Subtracted from the book balance
6. It is a financing arrangement whereby one party formally transfers
its rights to accounts receivable to another party in consideration
for a loan
a. Pledge
b. Assignment
c. Factoring
d. Discounting
7. To be reported as “cash and cash equivalent”, the cash and cash
equivalent must be
a. Available for the purchase of property, plant and equipment
b. Set aside for the liquidation of long-term debt
c. Deposit in bank
d. Unrestricted in use for current operations
8. Accounts receivable shall be recognized initially at
a. Face value
b. Discounted value
c. Maturity value
d. Current value
9. The amortized cost of loan receivable is the amount at which
a. The loan receivable is measured initially minus principal
EXAMINTION MASTER BONDS,
IMPAIRMENT, AND LOAN RECEIVABLES"
ESSENTIAL PRACTICE FOR STUDENTS"|
AVAILABLE FOR FREE| A+ STUDENTS
1.After initial recognition, bonds payable shall be measured at
a. Amortized cost using the effective interest method
b. Fair value through profit or loss
c. Either amortized cost using the effective interest method or fair
value through other comprehensive income
d. Either amortized cost using the effective interest method or fair
value through profit or loss
2. An entity purchased land and hotel with the plan to tear down the
hotel and build a new hotel. The allocated cost of the old hotel
should be
a. Depreciated over the remaining life of the old hotel
b. Written off as loss in the year the hotel is torn down
c. Capitalized as part of the cost of the land
d. Capitalized as part of the cost of the new hotel
3. An entity is performing its annual test of the impairment of goodwill
for a cash generating unit. The entity has determined that the fair
value of the unit exceeds the carrying amount. Which of the
following statements is true concerning the test of impairment?
a. Goodwill should be written down as impaired
b. The assets and liabilities should be valued to determine if there
has been an impairment of goodwill
c. Impairment is not indicated and no additional analysis is
necessary
d. Goodwill should be retested at the entity level
, 4. On July 1, 2019, an entity obtained a two-year 8% note receivable
for services rendered. At that time, the market rate of interest was
10%. The face amount of the note and the entire amount of interest
are due on June 30, 2021. Interest receivable on December 31,
2019 is
a. 4% of the face amount of the note
b. 5% of the face amount of the note
c. 5% of the July 1, 2019 present value of the amount due on June
30, 2021
d. 4% of the July 1, 2019 present value of the amount due on June
30, 2021
5. In preparing a bank reconciliation, interest paid by the bank on the
account is
a. Added to the bank balance
b. Subtracted from the bank balance
c. Added to the book balance
d. Subtracted from the book balance
6. It is a financing arrangement whereby one party formally transfers
its rights to accounts receivable to another party in consideration
for a loan
a. Pledge
b. Assignment
c. Factoring
d. Discounting
7. To be reported as “cash and cash equivalent”, the cash and cash
equivalent must be
a. Available for the purchase of property, plant and equipment
b. Set aside for the liquidation of long-term debt
c. Deposit in bank
d. Unrestricted in use for current operations
8. Accounts receivable shall be recognized initially at
a. Face value
b. Discounted value
c. Maturity value
d. Current value
9. The amortized cost of loan receivable is the amount at which
a. The loan receivable is measured initially minus principal
