D103 - Intermediate Accounting I Exam Questions and Answers Already Passed Latest Update
2025-2026
APB Opinions - Answers The APB's official pronouncements issued from 1959 through 1973
which were intended to be based mainly on research studies and be supported by reasons and
analysis.
Accounting Principles Board (APB) - Answers An accounting rule-making board which provided
official pronouncements, called APB Opinions, from 1959 through 1973.
Accounting Research Bulletins - Answers Pronouncements issued by CAP dealing with a variety
of timely accounting problems during the years 1939 to 1959.
Accounts Receivable - Answers Oral promises of the purchaser to pay for goods and services
sold.
Accounts Receivable Turnover - Answers The ratio computed by dividing net sales by average
(net) accounts receivable outstanding during the year that measures the number of times, on
average, a company collects receivables during the period.
Accrued Expenses - Answers Expenses incurred but not yet paid.
Accrued Revenues - Answers Revenues for which the performance obligation has been satisfied,
but for which cash has not yet been received.
Adjusted Trial Balance - Answers A trial balance prepared immediately after all adjustments
have been posted.
Adjusting Entries - Answers Entries made at the end of an accounting period to bring all
accounts up to date on an accrual accounting basis.
Aging Schedule - Answers The analysis of customer balances by the length of time they have
been unpaid.
Allowance Method - Answers A method for recording uncollectible receivables where an
estimate is made of the expected uncollectible receivables.
American Institute of Certified Public Accountants (AICPA) - Answers The national professional
organization of practicing Certified Public Accountants.
Average Days to Sell Inventory - Answers The average number of days' sales for which a
company has inventory on hand.
Average-cost Method - Answers An inventory costing method that assumes that the goods
available for sale are homogeneous.
Bank Overdrafts - Answers When a check is written for more than the amount in the cash
, account.
Book Value - Answers The difference between the cost of an asset and its related accumulated
depreciation.
Cash - Answers Resources that consist of coin, currency, money orders, certified checks,
cashier's checks, personal checks, and bank drafts.
Cash Discounts (Sales Discounts) - Answers Discounts offered as an inducement for prompt
payment communicated in terms that read, for example, 2/10, n/30.
Cash Equivalents - Answers Short-term, highly liquid temporary investments that are both (a)
readily convertible to known amounts of cash, and (b) so near their maturity that they present
insignificant risk of changes in interest rates.
Closing Process - Answers The formal process by which all nominal accounts are reduced to
zero to prepare the accounts for the next period's transactions.
Committee On Accounting Procedure (CAP) - Answers An organization composed of practicing
CPAs which issued Accounting Research Bulletins dealing with a variety of accounting
problems during the years 1939 to 1959.
Comparability - Answers Ability to compare accounting information of different companies
because they measure and report information in a similar manner.
Compensating Balances - Answers Minimum cash balances required by a bank in support of
bank loans.
Completeness - Answers All information necessary for faithful representation is provided.
Compound Interest - Answers Interest accrues on the unpaid interest of past periods as well as
on the principal.
Conceptual Framework - Answers A coherent system of interrelated objectives and
fundamentals that can lead to consistent standards.
Confirmatory Value - Answers Information that confirms or corrects prior expectations.
Consigned Goods - Answers Goods shipped by a consignor who retains ownership to another
party called the consignee.
Consistency - Answers An entity applies the same accounting treatment to similar events from
period to period.
Contra Asset Account - Answers An account that offsets an asset account on the balance sheet.
Cost Constraint - Answers The constraint that states that information should be provided only if
2025-2026
APB Opinions - Answers The APB's official pronouncements issued from 1959 through 1973
which were intended to be based mainly on research studies and be supported by reasons and
analysis.
Accounting Principles Board (APB) - Answers An accounting rule-making board which provided
official pronouncements, called APB Opinions, from 1959 through 1973.
Accounting Research Bulletins - Answers Pronouncements issued by CAP dealing with a variety
of timely accounting problems during the years 1939 to 1959.
Accounts Receivable - Answers Oral promises of the purchaser to pay for goods and services
sold.
Accounts Receivable Turnover - Answers The ratio computed by dividing net sales by average
(net) accounts receivable outstanding during the year that measures the number of times, on
average, a company collects receivables during the period.
Accrued Expenses - Answers Expenses incurred but not yet paid.
Accrued Revenues - Answers Revenues for which the performance obligation has been satisfied,
but for which cash has not yet been received.
Adjusted Trial Balance - Answers A trial balance prepared immediately after all adjustments
have been posted.
Adjusting Entries - Answers Entries made at the end of an accounting period to bring all
accounts up to date on an accrual accounting basis.
Aging Schedule - Answers The analysis of customer balances by the length of time they have
been unpaid.
Allowance Method - Answers A method for recording uncollectible receivables where an
estimate is made of the expected uncollectible receivables.
American Institute of Certified Public Accountants (AICPA) - Answers The national professional
organization of practicing Certified Public Accountants.
Average Days to Sell Inventory - Answers The average number of days' sales for which a
company has inventory on hand.
Average-cost Method - Answers An inventory costing method that assumes that the goods
available for sale are homogeneous.
Bank Overdrafts - Answers When a check is written for more than the amount in the cash
, account.
Book Value - Answers The difference between the cost of an asset and its related accumulated
depreciation.
Cash - Answers Resources that consist of coin, currency, money orders, certified checks,
cashier's checks, personal checks, and bank drafts.
Cash Discounts (Sales Discounts) - Answers Discounts offered as an inducement for prompt
payment communicated in terms that read, for example, 2/10, n/30.
Cash Equivalents - Answers Short-term, highly liquid temporary investments that are both (a)
readily convertible to known amounts of cash, and (b) so near their maturity that they present
insignificant risk of changes in interest rates.
Closing Process - Answers The formal process by which all nominal accounts are reduced to
zero to prepare the accounts for the next period's transactions.
Committee On Accounting Procedure (CAP) - Answers An organization composed of practicing
CPAs which issued Accounting Research Bulletins dealing with a variety of accounting
problems during the years 1939 to 1959.
Comparability - Answers Ability to compare accounting information of different companies
because they measure and report information in a similar manner.
Compensating Balances - Answers Minimum cash balances required by a bank in support of
bank loans.
Completeness - Answers All information necessary for faithful representation is provided.
Compound Interest - Answers Interest accrues on the unpaid interest of past periods as well as
on the principal.
Conceptual Framework - Answers A coherent system of interrelated objectives and
fundamentals that can lead to consistent standards.
Confirmatory Value - Answers Information that confirms or corrects prior expectations.
Consigned Goods - Answers Goods shipped by a consignor who retains ownership to another
party called the consignee.
Consistency - Answers An entity applies the same accounting treatment to similar events from
period to period.
Contra Asset Account - Answers An account that offsets an asset account on the balance sheet.
Cost Constraint - Answers The constraint that states that information should be provided only if
