ACTG-6257 - Intermediate Accounting oed answer key

Showing 81 to 100 of 117 total answers.

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Awesome StudentQuestion • Intermediate Accounting 3

An entity that changed its method of inventory valuation from weighted average to FIFO shall account for the change as

Answer

a change in accounting policy and account for it retrospectively.

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Awesome StudentQuestion • Intermediate Accounting 3

In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?

Answer

sale of a business segment

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Awesome StudentQuestion • Intermediate Accounting 3

In a statement of cash flows, receipt from sale of property, plant, and equipment would be classified as cash inflows from

Answer

investing activity

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Awesome StudentQuestion • Intermediate Accounting 3

This means a new accounting policy to transactions, other events and conditions as if that policy had always been applied.

Answer

retrospective application

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Awesome StudentQuestion • Intermediate Accounting 3

In preparing a statement of cash flows, sale of treasury shares at an amount greater than cost would be classified as a/ an

Answer

financing activity

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Awesome StudentQuestion • Intermediate Accounting 3

Show Company provided the following trial balance on December 31, 2020 which had been adjusted except for income tax expense:

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Awesome StudentQuestion • Intermediate Accounting 3

When preparing a statement of cash flows using the indirect method, the amortization of trademarks should be reported as a/an

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Awesome StudentQuestion • Intermediate Accounting 3

Brent Corp. beginning inventory on January 1 was understated by P 260,000 and the ending inventory was overstated by P 520,000.

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Awesome StudentQuestion • Intermediate Accounting 3

The presentation and classification of items in the financial statements shall be retained from one accounting period to the next.

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Awesome StudentQuestion • Intermediate Accounting 3

Under the indirect method, which of the following items would be added to profit to arrive at cash flows from operating activities?

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Awesome StudentQuestion • Intermediate Accounting 3

Would the following be added to or deducted from profit when reporting cash flow from operating activities using the indirect method?

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Awesome StudentQuestion • Intermediate Accounting 3

Where the financial statements for a single year are being presented, a prior period error recognized in the current year ordinarily should

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Awesome StudentQuestion • Intermediate Accounting 3

The expenses are classified according to their function, as part of cost of sales, distribution costs, administrative activities and other operating activities.

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Awesome StudentQuestion • Intermediate Accounting 3

In a statement of comprehensive income, showing expenses according to their function, which of the following is included in the line item “Administrative expenses?”

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Awesome StudentQuestion • Intermediate Accounting 3

Quezon Company, a calendar-year entity, had the following income before tax provision and effective annual tax rate for the first three quarters of the current year:

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Awesome StudentQuestion • Intermediate Accounting 3

These are the resources controlled by the entity as a result of past transactions or events and from which future economic benefits are expected to flow to the entity.

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Awesome StudentQuestion • Intermediate Accounting 3

In a classified statement of financial position, PAS 1 Presentation of Financial Statements requires deferred tax assets and deferred tax liabilities to be presented as

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Awesome StudentQuestion • Intermediate Accounting 3

During 2020, an entity discovered that ending inventory reported in its 2019 financial statements was understated. How should the entity account for this understatement?

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Awesome StudentQuestion • Intermediate Accounting 3

Each material class of similar items shall be presented separately and items of a dissimilar nature or function shall be presented separately unless they are immaterial.

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