Reference no: EM131976682

Questions: 1. All of the following are factors influencing the development of accounting except:

A) C Standard Setting Process

B) Political and legal systems

C) Geographic location

D) Social and cultural values

2. Disclosed information about a segment includes all of the following traits except for:

A) Disclosure of the segment assets

B) The measure of profit or loss follows a management approach focusing on internal decision making rather than any strict definition of profit used by the enterprise

C) Information presented for reportable segments must be reconciled to the respective consolidated amounts for the enterprise as a whole

D) Information must be presented in the dominant foreign currency if the majority of the segment's assets are located outside the U.S.

3. A current rate of exchange between two currencies is known as the:

A) Spot Rate

B) Floating Rate

C) Forward Rate

D) Average Rate

4. Accounting standards relevant to private not-for-profit entities include all of the following except:

A) FASB 101

B) FASB 93

C) FASB 116

D) FASB 117

5. A governmental fund balance that represents potential uses of resources planned for suture period is referred to as:

A) Encumbered

B) Reserved

C) Unreserved Undesignated

D) Unreserved Designated

6. A foreign currency option represents a(n) _____ to either ____ or _____ some quantity of a particular foreign currency.

A) Obligation, hold, retain

B) Obligation, buy, sell

C) Right, sell, buy

D) Right, hold, retain

7. The standards issued by the International Accounting Standards Board are known as:

A) Global Accounting Standards

B) General Accepted Accounting Principles

C) International Financial Reporting Standards

D) IASBs

8. Convergence initiatives of the FASB includes all of the following except:

A) Rewriting all of GAAP to align with IFRS

B) IASB member in residence at the FASB

C) FASB monitoring IASB projects

D) Joint projects with the IASB

9. The solution available through the bankruptcy code when a troubled corporation is liquidated is known as a ___________ liquidation.

A) Chapter 11

B) Chapter 7

C) Chapter 22

D) Chapter 13

10. All of the following are purposes of government financial reporting except:

A) Evaluate efficiency and effectiveness

B) Compare actual results with the budget

C) Determine the overall profitability of the government entity

D) Determine compliance with laws and regulations

11. The types of journal entries encountered in government accounting include all of the following except:

A) Closing entries

B) Operating entries

C) Accrual entries

D) Budgetary entries

12. Agency funds are used for all of the following except:

A) Payroll deductions

B) Grants, entitlements, shared revenue

C) Tax collections for itself

D) Pass-through grants

13. A future rate of exchange between two currencies is known as the:

A) Forward Rate

B) Spot Rate

C) Floating Rate

D) Average Rate

14. The solution available through the bankruptcy code when a corporation remains in business through a restructuring of its debt and/or equity is known as a ________ reorganization:

A) Chapter 7

B) Chapter 22

C) Chapter 11

D) Chapter 13

15. A type of governmental fund that accounts for resources for which the governmental units acts of trustee or agent is a:

A) Permanent fund

B) Proprietary fund

C) Fiduciary fund

D) Special revenue fund

16. Company ABC, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was £200,000, and the cost of the goods was $80,000. The receivable is payable in full on 6/10, and Company ABC prepares their financials monthly. Relevant exchanges rates are 5/10 £1 = $1.25, 5/31 £1 = $1.30, and 6/10 £1 = $1.35. Based on this information, what was the amount booked to cost of goods sold by Company D on 5/10?

A) $80,000

B) $100,000

C) $200,000

D) £100,000

17. Company ABC, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was £200,000, and the cost of the goods was $80,000. The receivable is payable in full on 6/10, and Company D prepares their financials monthly. Relevant exchanges rates are 5/10 £1 = $1.30, 5/31 £1 = $1.25, and 6/10 £1 = $1.35. Based on this information, how much would accounts receivable need to be revalued by on 5/31?

A) $10,000 decrease

B) $0

C) $10,000 increase

D) $4,000 decrease

18. Company F is a foreign subsidiary of a domestic company and Company F's functional currency is the Euro. On Company F's financials at the end of the year 2017, they reported €50,000 in inventory. If the spot rate on 1/1/17 was €1 = $1.15, the spot rate on 12/31/17 was €1 $1.06, and the weighted average rate for the full year 2017 was €1 = $1.10, how much is the translated balance of inventory in U.S. $ at year-end?

A) $50,000

B) $53,000

C) $57,500

D) $55,000

19. Company F is a foreign subsidiary of a domestic company and Company F's functional currency is the Euro. On Company F's financials at the end of the year 2017, they reported €150,000 in cost of goods sold. If the spot rate on 1/1/17 was €1 = $1.12, the spot rate on 12/31/17 was €1 $1.18, and the weighted average rate for the full year 2017 was €1 = $1.02, how much is the translated balance of cost of goods sold in U.S. $ at year-end?

A) $153,000

B) $150,000

C) $168,000

D) $177,000

20. Company F is a foreign subsidiary of a domestic company and Company F's functional currency is the Euro. The total U.S. $ Translated balances of total assets per the trial balance at year-end but prior to closing entries is $700,000, liabilities is $200,000, equity is $400,000, and net income adds up to $150,000. The amount to be entered into Accumulated Translation Adjustment will be:

A) $50,000 debit

B) $100,000 credit

C) $100,000 debit

D) $50,000 credit

21. Lydia, James, and Lola form a partnership where each partner will have an equal share to start. Lydia contributes $60,000 in cash, James contributes $60,000 in equipment, and Lola contributes $20,000 in cash and bring to the table expertise that the partners agree is worth $40,000, and choose to account for the value of this expertise using the goodwill method. Immediately after formation, Lola's capital account would reflect a balance of:

A) $60,000 credit

B) $20,000 credit

C) $45,000 credit

D) $20,000 debit

22. Lydia, James, and Lola's partnership calls for the following allocation of income: James and Lola are to receive lump sum salary payments of $25,000 each, Lydia and Lola are to receive interest of 5% of their ending capital balances, if there's a profit James is to receive a bonus equal to 10% of the profit, and any remaining income is to be split between Lydia, James, and Lola 40%, 20%, and 40% respectively. Lydia, James, and Lola's ending capital balances were $100,000, $50,000, and $150,000 respectively. If there was a partnership net profit of $500,000, how much was allocated to James in total?

A) $157,000

B) $152,500

C) $160,000

D) $175,000

23. Lydia, James, and Lola's partnership calls for the following allocation of income: James and Lola are to receive lump sum salary payments of $25,000 each, Lydia and Lola are to receive interest of 5% of their ending capital balances, if there's a profit James is to receive a bonus equal to 10% of the profit, and any remaining income is to be split between Lydia, James, and Lola 40%, 20%, and 40% respectively. Lydia, James, and Lola's ending capital balances were $100,000, $50,000, and $150,000 respectively. If there was a partnership net loss of <$100,000>, how much was allocated to or <from> James in total?

A) <$15,500>

B) $25,000

C) $500

D) <$7,500>

24. Lydia, James, and Lola are in a partnership together and each have capital balances of $250,000. A new partner, Shawn, pays James $200,000 directly for 100% of his interest in the new partnership, replacing him in the partnership. The journal entry on the books of the partnership to account for this transaction would be:

A) Debit Capital-James $250,000; Credit Capital-Shawn $250,000

B) No entry is made on the partnership's books as the transaction was made directly between James and Shawn

C) Debit Capital-James $200,000, Debit Cash $50,000; Credit Capital-Shawn $250,000

D) Debit Cash $250,000; Credit Capital-Shawn $250,000

25. Lydia, James, Lola, and Shawn are in a partnership together and have a combined capital balance of $700,000. A new partner, Carol pays the partnership $300,000 directly for a 1/5 interest in the new partnership. The partnership chooses the goodwill method to existing partners to account for this transaction and will allocate any increase in implied value evenly amongst the existing partners. The journal entry on the books of the partnership to account for this transaction would be:

A) Debit Cash $300,000, Debit Goodwill $500,000; Credit each of the existing partner's capital accounts $125,000 each, Credit Capital-Carol $300,000

B) A Debit Cash $300,000, Debit Goodwill $400,000; Credit each of the existing partner's capital accounts $100,000 each, Credit Capital-Carol $300,000

C) Debit Goodwill $400,000, Debit Cash $800,000; Credit each of the existing partner's capital accounts $200,000 each, Credit Capital-Carol $400,000

D) Debit Goodwill $300,000, Debit Cash $800,000; Credit each of the existing partner's capital accounts $200,000 each, Credit Capital-Carol $300,000