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BACC FINAL 2024 EXAM QUESTIONS WITH 100% VERIFIED SOLUTIONS!!
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BACC FINAL 2024 EXAM QUESTIONS WITH 100% VERIFIED SOLUTIONS!!
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BACC FINAL2024 EXAM
QUESTIONS
WITH 100%
VERIFIED
Evatee 10/9/24 BACC
,BACC FINAL 2024 EXAM QUESTIONS WITH
100% VERIFIED SOLUTIONS!!
Which of the following statements is true about current liabilities?
A. Current liabilities are obligations payable within one year or within the firm's
operating cycle, which ever is longer.
B. Current liabilities are ordinarily recorded at maturity amounts rather than
present value.
C. Current liabilities as those expected to be satisfied with current assets or by
the creation of other current liabilities.
D. All of the above. Answer - D. All of the above
Jamal borrowed $100,000 on July 1, 2024, and signed a one-year note bearing
interest at 8%. Interest is payable in full at maturity on June 30, 2025. Jamal
should report interest expense at Dec 31, 2024 of:
A $0
B. $4,000
C.$8,000
D. $32,000 Answer - B. $4,000
$100,000 x 8% x 6/12 = $4,000
Perkins Inc. accepted an advance of $2,400 on Dec 1, 2024, for providing IT
helpdesk services for the for the following six months. Perkins estimates
fulfillment of its performance obligation based on the passage of time. On Dec
,31, 2024, Perkins will make an adjusting entry that includes a credit to revenue
of:
A. $2,400
B. $2,000
C. $800
D. $400 Answer - D. $400
$2,400 x 1/6 = 400
Ling, Inc. sold $30,000 of gift cards during 2021. Also during 2021, $25,000 of
gift cards were redeemed, some of which were sold in 2021 and some of which
were sold in the prior year. Ling also concluded that $2,500 of gift cards sold in
the prior year would never be redeemed, and Ling finished 2021 with a balance
of $17,500 in deferred revenue—gift cards. Ling should recognize revenue in
2021 associated with gift cards of:
A. $30,000
B. $27,500
C. $25,000
D. $17,500 Answer - B. $27,500
$25,000 + $2,500
Kim's Academy had $10,000,000 of X bonds payable due in 2022. Prior to
12/31/2021, Kim's refinanced $3,000,000 of the X bonds with other bonds that
mature in 2032. On January 15, 2022, Kim's refinanced another $2,000,000 of
the X bonds with others that mature in 2029. Kim's issued its financial
statements on February 1, 2022. On February 15, 2022, Kim's refinanced
, another $4,000,000 of the X bonds with others that mature in 2030. In its 2021
financial statements, Kim's should show noncurrent bonds payable of:
A. $2,000,000
B. $3,000,000
C. $5,000,000
D. $9,000,000 Answer - C. $5,000,000
$3,000,0000 refinanced prior to year-end + $2,000,000 refinanced prior to
issuance of financial statements = $5,000,000
Which of the following is not true regarding loss contingencies and their
disclosure?
A. A loss contingency arises when there is uncertainty about whether a past
event will result in future loss
B. US GAAP requires the likelihood if the future event be categorized as
"probable", "reasonably possible" or "remote"
C. Companies are required to account for a loss contingency when the event
that gave rise to it occurred before the end of the fiscal year.
D. To be accrued and reported, the company must be able to estimate amount
of loss Answer - C. Companies are required to account for a loss contingency
when the event that gave rise to it occurred before the end of the fiscal year
On October 1, 2024, Majoor, Inc. sold a $480 snow blower with a $120
extended warranty. The warranty covers three years of repairs. During 2024,
Majoor would recognize warranty revenue of:
A. $120
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