age 1 of 90
WGU D103 Intermediate Accounting II OBJECTIVE
ASSESSMENT ACTUAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <BRAND NEW VERSION>
Accounting for the issuance of shares of stock for property or
services involves an issue of valuation .......Answer.........The
general rule is: Companies should record stock issued for services
or property other than cash at either the fair value of the stock
issued or the fair value of the noncash consideration received,
whichever is more clearly determinable.
If a company can readily determine both, and the transaction
results from an arm's-length exchange, there will probably be
little difference in their fair values. In such cases, the basis for
,age 2 of 90
valuing the exchange should not matter. Financial Accounting
Standards. .......Answer.........Pronouncements issued by the FASB
which are considered generally accepted accounting principles.
Financial Accounting Standards Advisory Council (FASAC)
.......Answer.........A council responsible for consulting with the FASB
on both major policy and technical issues.
Which method should be used to handle indirect costs of self-
constructed assets?
Assigning no variable overhead to a constructed asset
Allocating overhead on the basis of gained production
Assigning a pro rata portion of all overhead to the asset
,age 3 of 90
Allocating the total overhead to the asset
.......Answer.........Assigning a pro rata portion of all overhead to
the asset
A company purchases land for development into a subdivision.
The land has a factory building on it that will need to be
demolished.
Where should the interest costs be allocated?
Interest expenses
General administrative expenses
Cost of the land
Cost of the plant .......Answer.........Cost of land
, age 4 of 90
In which situation can capitalization of interest be included in the
cost of land?
When holding the land as an investment
When purchasing land with the intension of developing it for lots
sales
When selling the land
When building a structure on the land .......Answer.........When
purchasing land with the intension of developing it for lots sales
Which value should be used to record machinery that was
purchased with a long-term note?
Sum of all estimated payments
Market price of the machinery
WGU D103 Intermediate Accounting II OBJECTIVE
ASSESSMENT ACTUAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <BRAND NEW VERSION>
Accounting for the issuance of shares of stock for property or
services involves an issue of valuation .......Answer.........The
general rule is: Companies should record stock issued for services
or property other than cash at either the fair value of the stock
issued or the fair value of the noncash consideration received,
whichever is more clearly determinable.
If a company can readily determine both, and the transaction
results from an arm's-length exchange, there will probably be
little difference in their fair values. In such cases, the basis for
,age 2 of 90
valuing the exchange should not matter. Financial Accounting
Standards. .......Answer.........Pronouncements issued by the FASB
which are considered generally accepted accounting principles.
Financial Accounting Standards Advisory Council (FASAC)
.......Answer.........A council responsible for consulting with the FASB
on both major policy and technical issues.
Which method should be used to handle indirect costs of self-
constructed assets?
Assigning no variable overhead to a constructed asset
Allocating overhead on the basis of gained production
Assigning a pro rata portion of all overhead to the asset
,age 3 of 90
Allocating the total overhead to the asset
.......Answer.........Assigning a pro rata portion of all overhead to
the asset
A company purchases land for development into a subdivision.
The land has a factory building on it that will need to be
demolished.
Where should the interest costs be allocated?
Interest expenses
General administrative expenses
Cost of the land
Cost of the plant .......Answer.........Cost of land
, age 4 of 90
In which situation can capitalization of interest be included in the
cost of land?
When holding the land as an investment
When purchasing land with the intension of developing it for lots
sales
When selling the land
When building a structure on the land .......Answer.........When
purchasing land with the intension of developing it for lots sales
Which value should be used to record machinery that was
purchased with a long-term note?
Sum of all estimated payments
Market price of the machinery
