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Intermediate Accounting Exam 3 With Questions And 100% SURE ANSWERS
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JACKLINEIntermediate Accounting Exam 3 With Questions And 100% SURE
ANSWERS
Practice questions for this set
1 earnings for 2013, 2014, 2015, respectively?
a. Overstate, overstate, understate.
b. Overstate, understate, understate.
, c. Overstate, overstate, overstate.
d. None of these answer choices are correct.
Kaniper Company has the following items at year-end:
Cash in bank $35,000
Petty cash 500
Short-term paper with maturity of 2 months 8,200
Postdated checks 2,100
2
Kaniper should report cash and cash equivalents of
a. $35,000.
b. $35,500.
c. $43,700.
d. $45,800.
Why is the allowance method preferred over the direct write-off method of accounting for bad
debts?
a. Allowance method is used for tax purposes.
3
b. Improved matching of bad debt expense with revenue.
c. Estimates are used.
d. Determining worthless accounts under direct write-off method is difficult to do.
Travel advances should be reported as
a. receivables.
4
b. cash because they represent the equivalent of money.
c. investments.
d. none of these answers are correct.
Don't know?
Terms in this set (101)
Travel advances should be reported as receivables.
a. receivables.
b. cash because they represent the equivalent of
money.
c. investments.
d. none of these answers are correct.
Intermediate Accounting Exam 3
,8/25/24, 8:49 AM
In which account are postage stamps classified? Office supplies.
a. Cash.
b. Receivables.
c. Office supplies.
d. Inventory.
We have an expert-written solution to this problem!
Bank overdrafts, if material, should be reported as a current liability.
a. reported as a current liability.
b. reported as a deduction from the current asset
section.
c. reported as a deduction from cash.
d. netted against cash and a net cash amount
reported.
We have an expert-written solution to this problem!
Which of the following should be recorded in the Open accounts resulting from short-term extensions of credit to customers.
category "trade receivables"
a. advances to officers and employees.
b. income tax refunds receivable.
c. Open accounts resulting from short-term
extensions of credit to customers.
d. claims against insurance companies for casualties
sustained.
, 8/25/24, 8:49 AM
If a company employs the gross method of a deduction from sales in the income statement.
recording accounts receivable from customers, then
sales discounts taken should be reported as
a. an item of "other expense" in the income
statement.
b. a deduction from accounts receivable in
determining the net realizable value of accounts
receivable.
c. sales discounts forfeited in the cost of goods sold
section of the income statement.
d. a deduction from sales in the income statement.
We have an expert-written solution to this problem!
Of the approaches to record cash discounts related Net approach.
to accounts receivable, which is more theoretically
correct?
a. Gross approach.
b. Net approach.
c. Allowance approach.
d. All three approaches are theoretically correct.
We have an expert-written solution to this problem!
Why is the allowance method preferred over the Improved matching of bad debt expense with revenue.
direct write-off method of accounting for bad
debts?
a. Allowance method is used for tax purposes.
b. Improved matching of bad debt expense with
revenue.
c. Estimates are used.
d. Determining worthless accounts under direct
write-off method is difficult to do.
We have an expert-written solution to this problem!
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