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Contents
1 INTERMEDIATE ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 INTERMEDIATE ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. INTERMEDIATE ACCOUNTING
NARAYAN CHANGDER
1.1 INTERMEDIATE ACCOUNTING
1. cash payments for lease liability:financing A. Predictive value
activitycash payments for short-term
B. Confirmation Value
lease:
A. Operating Activity C. Verifiable
B. Financing Activity D. Comparable
C. Investing Activity
5. The separation of the owner’s interests
D. None of the above from the business he owns is a fulfillment
2. Shares that have rights to company assets of the assumption
and rights to profit distribution in the last A. economic entity
order are shares:
B. going concern
A. Priority
C. monetary unit
B. Normal
C. Open D. accrual basis of accounting
D. Closed 6. Costs relevant to R&D projects

3. Inventory includes: A. Salaries, wages, and other labor costs
A. Raw materials of R&D personnel
B. Work in progress B. Costs of materials consumed, equip-
C. Finished goods ment, facilities, and intangibles used in
R&D projects
D. Sold goods
E. Equipment C. Costs of services performed by others
D. A reasonable allocation of indirect
4. The quality of information that confirms
costs related to the R&D activities
the user’s previous expectations is the def-
inition of E. Purchase of R&D equipment
1. A 2. B 3. A 3. B 3. C 4. B 5. A 6. A 6. B 6. C 6. D
1.1 INTERMEDIATE ACCOUNTING 3
7. It is the oldest and simplest form of busi- 10. CV Pantai Karunia has assets of Rp. 87,
ness ownership. 500, 000.00 and trade payables Rp. 22,
500, 000.00. The company earned rev-

A. Sole Propreitorship
enue of Rp. 750, 000.00. The company’s
B. Partnership capital after the transaction is
C. Corporations A. Rp. 87.500.000, 00
D. None of the choices B. Rp. 64.250.000, 00
C. Rp. 65.750.000, 00
8. Leomord Company transferred real es-
D. Rp. 22.500.000, 00
tate to Minsitthar Company pursuant to
a debt restructuring in full liquidation of 11. Examples of accrued liabilities do NOT in-
Leonard’s liability to Minsitthar.Carrying clude:
amount of liability liquidated P7, 500,
A. Salaries Payable and Vacation Payable
000Carrying amount of real estate trans-
ferred P6, 300, 000Fair value of real es- B. Interest Payable and Income Taxes
tate transferred P5, 400, 000Under USA Payable
GAAP, what amount should be reported as C. Accounts Payable and Notes Payable
gain or loss on transfer of real estate?
D. All of the above are Accrued Liabilities
A. P900, 000 loss
B. P2, 100, 000 loss tate to Minsitthar Company pursuant to
C. P2, 100, 000 gain a debt restructuring in full liquidation of
Leonard’s liability to Minsitthar.Carrying
D. P900, 000 gain amount of liability liquidated P7, 500,
000Carrying amount of real estate trans-
9. FW Factory provides a 2-year warranty
ferred P6, 300, 000Fair value of real es-
with one of its products which was first
tate transferred P5, 400, 000Under USA
sold in 2017. In that year, FW spent
GAAP, what amount should be reported as
$80, 000 servicing warranty claims. At
gain or loss on restructuring.
year-end, FW estimates that an additional
$500, 000 will be spent in the future to A. P1, 200, 000 gain
service warranty claims related to 2017 B. P2, 100, 000 gain
sales. What is the adjusting entry at De- C. P900, 000 loss
cember 31?
D. 0
A. Dr. Warranty expense $ 80, 000Cr.
Warranty liability $ 80, 000 13. Subscribe share capital can be less than or
equal to the issued share capital but can-
B. Dr. Warranty liability $500, 000Cr.
not be more
Warranty expense $500, 000
A. True
C. Dr. Cash $80, 000Cr. Warranty ex-
pense $80, 000 B. False
D. Dr. Warranty expense $80, 000Cr. 14. A company be able to pay all its liabilities
Cash $80, 000 including its long-term liabilities
E. Dr. Warranty expense $500, 000Cr. A. Liquidity
Warranty liability $500, 000 B. Long-term solvency
7. D 8. A 9. E 10. C 11. C 12. B 13. A 14. B 15. A

15. LIFO is an acceptable inventory valuation not be presented separately from other as-
method sets.
A. U.S. GAAP A. TRUE
B. IRFS B. FALSE
16. On June 1st 2021, Walker Construction 19. The basic accounting equation formula is
Corp. paid $360, 000 for their annual A. ASSETS = LIABILITIES-EQUITY
equipment insurance policy. The accoun-
NARAYAN CHANGDER
B. ASSETS = LIABILITIES+EQUITY
tant erroneously recorded this to Insur-
ance Expense. For the annual audit of the C. LIABILITIES=EQUITY+ASSETS
company’s financials as of 12/31/2021, D. ASSETS = PROPERTY+EQUITY
the audit team found the error. What cor-
recting entry will the audit team recom- 20. PT BRANTAS has eight employees. Em-
mend? ployee salaries are paid every Friday of
every week. Five employees receive a
A. Debit Retained Earnings $360, 000;
salary of IDR 700, 000 per week, and
credit Insurance Expense $360, 000
three employees receive a salary of IDR
B. Debit Prepaid Insurance $180, 000; 500, 000 per week. No employees work
credit Retained Earnings $180, 000 on weekends. If December 31 falls on a
C. Debit Insurance Expense $180, 000; Tuesday, then the adjusting entries related
Credit Prepaid Insurance $180, 000 to employee salaries are:
D. Debit Prepaid Insurance $150, 000; A. No journal

credit Insurance Expense $150, 000 B. Salaries Expense (D) 5, 000,
000Salaries Payable (K) 5, 000, 000
17. On January 1, 2017, Candle, Inc. sells
C. Salaries Expense (D) 3, 000,
$100, 000, five-year, 10% bonds for
000Salaries Payable (K) 3, 000, 000
$98, 000 (98% of face value). Interest
is payable annually January 1. The entry D. Salaries Expense (D) 2, 000,
to record the issuance is: 000Salaries Payable (K) 2, 000, 000
A. Dr. Cash $98.000Dr. Discount on 21. Answer the following questions.3. What
Bonds Payable $2, 000Cr. Bonds Payable is the depreciation expense on June 30,
$100, 000 2023?4. What amount should be rec-
B. Dr. Cash $98, 000Cr. Bonds Payable ognized as impairment loss on June 30,
$98, 000 2023.5. What amount should be recog-
nized as gain on reversal of impairment on
C. Dr. Cash $100, 000Cr. Bonds Payable December 31, 2023?
$100, 000
D. Dr. Cash $100.000Cr. Bonds Payable
$98, 000Cr. Premium on Bonds Payable
$2, 000
18. The lessee shall present the right-of-use

asset separately from other assets. How-
ever, a right-of-use asset that meets the A. P95, 000
definition of an investment property need B. P80, 000
16. D 17. A 18. A 19. B 20. B 21. D 22. A

C. P70, 000 A. Rp 15.400.000.000

D. P115, 000 B. Rp 14.400.000.000

22. Market is in the middle of what three C. Rp 14.600.000.000
things? D. Rp 13.400.000.000
A. Replacement Costs
26. Inflows and outflows of cash related to
B. Ceiling transactions entering into the determina-
C. Floor tion of net income
D. Cost A. Operating Activity
E. LCM B. Investing Activity
23. What is the lifetime of a patent? C. Financial Activity
A. 15 years D. none of above
B. 30 years 27. Amounts invested by shareholders in the
C. 10 years corporation
D. 20 years A. Paid in Capital
24. Jai Jai Company Limited has 20, 000 is- B. Retained Earnings
sued and paid-up common shares with a
28. The following are not types of current
value of 50 baht per share, 10, 000 12%
debt, namely:
preferred shares with a value of 100 baht
per share. The last cash dividend was paid A. Cash dividends payable
in 2017. Later in 2020, it announced a to- B. Stock dividends payable
tal dividend payment of 350, 000. baht if
the preferred shares are cumulative How C. Income received in advance
much dividends will the preferred shares D. Bond debt
receive?
29. On January 1, 2011, Oliver Foods issued
A. 350, 000 baht
stock options for 50, 000 shares to a di-
B. 360, 000 baht vision manager. The options have an es-
C. 120, 000 baht timated fair value of P10 each. To pro-
vide additional incentive for managerial
D. 240, 000 baht
achievement, the options are not exercis-
E. Haven’t received dividends this year. able unless Oliver Foods’ stock price in-
Because the dividends are not enough creases by 5% in four years. Oliver Foods
Must collect to receive next year. initially estimates that it is not probable
the goal will be achieved. How much com-
25. The following is the available information
pensation will be recorded in each of the
regarding PT Anugerah Jaya’s inventory
next five years?
for the period ending June 2015. Total
inventory purchases:Rp. 14, 000, 000, A. P60, 000
000 Beginning inventory balance:Rp. 1, B. P150, 000
000, 000, 000 Decrease in inventory bal-
ance:Rp. 400, 000, 000 Cost of goods C. P50, 000
sold for 2015 is D. P100, 000
22. B 22. C 23. D 24. A 25. C 26. A 27. A 28. D 29. D 30. C
30. The main components of an income state- 34. COGS / Average InventoryThe higher the
ment include ratio, the more effectively a company man-
A. Income Expenses ages its inventory
B. Income Expense Profit A. Gross Profit Ratio

C. Income Expense Other Income Other B. Inventory turnover ratio
Expenses
35. When establishing a company, the owner
D. Income Expenses Other income Other
always hopes that the company he estab-
NARAYAN CHANGDER
expenses Other profits
lishes will operate for a long period of
31. Namwan and Namkhing set up the time. This in the accounting structure is
Khingwan Partnership, agreeing to give called an assumption
Namwan and Namkhing a salary of 180, A. Periodicity
000 baht and 192, 000 baht, respec-
tively, with the remainder splitting prof- B. Business continuity
its equally. The current year’s net profit C. Unit moneter
is 400, 000 baht. How much share does
each partner receive? D. Economic Entity
A. Sweet water 200, 000 baht, ginger 36. Which statement is incorrect regarding the
juice 200, 000 baht nature of a partnership?
B. Sweet water 194, 000 baht, ginger A. It must be made in the form of a writ-
juice 206, 000 baht ten partnership establishment contract
C. Sweet water 206, 000 baht, ginger only.
juice 206, 000 baht
B. A partnership consists of two or more
D. Sweet water 206, 000 baht, ginger people.
juice 194, 000 baht
C. Agree to do activities to share profits.
32. Four basic types of auditor’s report D. The allocation of profits and losses de-
A. Unqualified pends on the contractual terms.
B. Unqualified with an explanation or em-
37. Debit if write-down is common for the
phasis paragraph
particular company
C. Qualified
A. COGS
D. Adverse or disclaimer
B. Loss
E. Rejected
38. In financing activities, the primary sources
33. Made to maintain a given level of benefits
of financing for most business are owner
provided by the asset and do not increase
and ?
future benefits.What is this?
A. Expensing A. neighbors
B. Improvements B. Parents
C. Repairs and Maintenance C. creditors
D. Substitution D. Friends
31. B 32. A 32. B 32. C 32. D 33. C 34. B 35. B 36. A 37. A 38. C 39. A
39. Which is a type of current liability where 42. Resources controlled by a company as a
the time and amount of payment cannot be result of past events and from which the
determined with certainty? company’s economic benefits are expected

A. Estimating debt for gratuity to be derived in the future are the defini-
tion of
B. short term bills
A. Liabilities
C. Advance income
B. Asset
D. Accrued expenses
C. Equity
40. A company purchased a machine on 31 Au- D. Income
gust 20X0 for CU22, 000. The machine is
estimated to have a useful life of 7 years 43. Namwan and Namkhing established the
and an estimated residual value of IDR Khingwan Partnership and agreed to share
1, 000. On June 30 2014, the machine profits in the ratio of 6:4. Net profit for
was sold for IDR 9, 000. The end of the the current year is 500, 000 baht. How
company’s financial year is December 31. much share does each partner receive?
The company’s accounting policy charges A. Sweet water 300, 000 baht, ginger
depreciation on a monthly basis using the juice 200, 000 baht
straight-line method. What is the loss on
B. Sweet water 200, 000 baht, ginger
disposal of machinery in the profit or loss
juice 300, 000 baht
statement for the financial year ended 31
December 20X4? C. Sweet water 206, 000 baht, ginger
juice 206, 000 baht
A. 1.000
D. Sweet water 206, 000 baht, ginger
B. 1.500
juice 194, 000 baht
C. 3.500
44. Dion Corporation made credit sales of
D. 5.800
$40, 000 which are subject to 5% sales
41. Layla Company issued a 3-year, P 150, tax. The corporation also made cash sales
000 face value non interest-bearing note which totaled $30, 555 including the 5%
payable in exchange for a new machinery sales tax. What is the journal entry to
on January 1 (Year 1). The note is payable record Dion’s cash?
in 3 equal annual installments every Jan- A. Dr. Cash $30, 555Cr. Sales $29, 100Cr.
uary 1, starting year 1. No cash price of Sales tax payable $1, 455
the machinery is available. The prevailing
B. Dr. Cash $29, 100Dr. Sales $1, 455Cr.
rate for similar note is 12%. PV of 1 at
Sales tax payable $30, 555
12% for 3 periods is 0.7118. PV of an
ordinary annuity of 1 at 12% periods us C. Dr. Accounts receivable $42, 000Cr.
2.4018. PV of an annuity due at 12% for Sales $40, 000Cr. Sales tax payable $2,
3 period us 2.6900. How much is the in- 000
terest expense for Year 1? D. Dr. Accounts receivable $30, 555Cr.
A. 8, 410 Sales $29, 100Cr. Sales tax payable $1,
455
B. 10, 140
E. Dr. Accounts receivable $40, 000Dr.
C. 16, 140 Sales tax payable $2, 000Cr. Sales $42,
D. 14410 000
40. B 41. B 42. B 43. A 44. A

45. The lease payments shall be accounted us- 51. The entity depreciates the fixed assets
ing what rate? with an estimated useful life of 10 years,
A. Market Rate implicit in the lease so that the depreciation expense will be
recognized for 10 years of use of the as-
B. Interest Rate implicit in the lease sets. What are the basic assumptions un-
C. Effective Rate implicit in the lease derlying these accounting policies? (Enti-
ties depreciate fixed assets owned with
D. Nominal Rate implicit in the lease
an estimated useful life of 10 years, so
that depreciation expense will be recog-
NARAYAN CHANGDER
46. International Accounting standard setting
bodies are nized over 10 years of use of the assets.
What basic assumptions underlie these ac-
A. IAI
counting policies?)
B. IASB
A. Monetary unit
C. IFRS
B. periodicity
D. DSAK
C. Going concern
47. Loan acceleration is to give a loan to the D. Economic entity
borrower quickly.
A. True 52. Dividends paid/distributed in the form of
shares themselves are called
B. False
A. Debt Dividends
48. Involves cash inflows and outflows from B. Liquidating Dividends
transactions with creditors and owners
C. Stock Dividends
A. Operating Activity
D. Dividend Kas
B. Investing Activity
C. Financial Activity 53. n/30 means
D. none of above A. 2 10s and 30 ns

B. 2% discount if paid within ten days,
49. Income Taxes and Net Income purposes. otherwise full payment within 30 days
Provides higher cost of goods sold and
therefore, lower net income than the other C. 2% discount if paid within ten days,
methods 30% discount within n amount of days
A. FIFO D. 2% discount if paid within 30 days
B. LIFO 54. On December 31, Year 1, Zilong Company
had an overdue 10% note payable to Al-
50. A Co. has issued 6, 000 equity shares of.
dous Bank worth 8 million and an accrued
Rs. 10 each at par and called up amount
interest of P 800, 000. On that date, Al-
Rs. 6 per share. The remaining part of
dous Bank offered modification of terms
capital is termed as
of the liability as follows:> Principal is re-
A. Called up Capital duced by P 2 million and accrued interest is
B. Paid up Capital condoned> Maturity is extended to Decem-
ber 31, Year 5> The new interest rate of
C. uncalled Capital 12% is payable every December 31> PV
D. Subscribed Capital of 1 at 10% for 4 periods is 0.683 and PV
45. B 46. B 47. B 48. C 49. B 50. C 51. C 52. C 53. B

of 1 at 12% for 4 periods is 0.636> PV B. The company has the ability and intent
of an ordinary annuity of 1 at 10% for 4 to sell within the next 9 months or operat-
period is 3.17 and PV of an ordinary annu- ing cycle

ity of 1 at 12% for 4 period is 3.037How
C. The company has the ability and intent
much is the PV of the new note payable at
to sell within the next 6 months or operat-
Year 1?
ing cycle
A. 6, 380, 400
D. The company has the ability and intent
B. 6, 002, 640 to sell within the next 24 months or oper-
C. 4, 098, 000 ating cycle
D. 3, 816, 000
60. The accounting profession requires a con-
55. How can property, plant, and equipment ceptual framework to , except:
be acquired? A. Building and related to the concept be-
A. purchase, donation, lease, exchange, ing built
business, self construction B. Provides a basic framework for solving
B. Inheritance accounting problems
C. Increasing the comparability of finan-
56. Accumulated Other Comprehensive Income
cial reports between companies
in SOFP will fall into the category
A. Assets D. Providing information to capital
providers
B. Liabilities
C. Equity 61. Lower of cost or net realizable value.Used
for companies that use FIFO, Average Cost,
D. none of above
or any other method besides LIFO or the
57. Recognizes and measure the assets and li- retail inventory method
abilities that exist at a balance sheet date. A. LCNRV
A. Revenue/Expense Approach B. LCM
B. Asset/Liability Approach
62. Refers to the assets of a company
58. The purchase transportation costs borne
by the buyer are called A. COGS
A. FOB Shoping Point’ B. Inventory

B. FOB Destination 63. Ifa company must pay the shipping costs
C. Received of Goods on inventory it purchased, what will be
included in the journal entry to pay the
D. Freight In
freight company?
E. Freight Out
A. Debit to Cash
59. Short term Investments occur when B. Debit to Freight Expense
A. The company has the ability and intent
C. c. Debit to Inventory
to sell within the next 12 months or oper-
ating cycle D. d. Debit to Cost of Goods Sold
54. A 55. A 56. C 57. B 58. D 59. A 60. D 61. A 62. B 63. C 64. D
64. Which of the following is not a shareholder D. Money that the salesperson will bring
right? to the business
A. The preemptive right. 68. Company X currently has book value per
B. The right to share in dividends. share of THB 20 and cost of equity of 12%.
If its ROE is 15% and dividend payout ra-
C. The right to vote on the board of direc-
tio is 80%, its share value is closest to:
tors.
A. 26.66
D. The right to participate in management
NARAYAN CHANGDER
decisions. B. 33.33
C. 20.00
65. Which of the following costs can be recog-
nized in fixed assets? D. 25.00
A. Purchase of vehicles for resale 69. All the following are early warning indica-
tors of a problem loan, except
B. Annual costs for painting factory floors
A. Higher sales and higher Margins
C. Repair of windows in a building
B. Higher sales and Increased aging of
D. Legal costs incurred on the purchase account receivables
of the building
C. Higher sales and lower margins
66. Spencer Co. incurs $220, 000 in legal D. Higher Sales and higher Sales returns
costs on January 1, 2015, to successfully
defend a patent. The patent’s useful life 70. The profession responsible for preparing
is 20 years, amortized on a straight-line accounting standards in Indonesia is
basis. What is the journal entry to record A. DSAK
the amortization at the end of 2015?
B. IASB
A. Dr. Patents $220, 000Cr. Cash $220, C. IAI
000
D. Accountant
B. Dr. Cash $220, 000Cr. Patents $220,
000 71. Depending on which estimation approach
better predicts the amount that the seller
C. Dr. Amortization Expense $220, 000Cr.
will recieve
Patents $220, 000
A. Expected Value
D. Dr. Amortization Expense $11, 000Cr.
Patents $11, 000 B. Most Likely Amount
E. Dr. Amortization Expense $11, 000Cr. 72. Reported as a contra account to adjust the
Cash $11, 000 balance from the internal method to the
Lifo method for external reporting
67. What does deposit in transit mean?
A. LIFO Reserves
A. Money lost by the financial officer
B. Lifo liquidation
B. The money that the business deposits
in the bank is then used by bank officials 73. Gross Profit / Net sales or (Net Sale-
first. COGS)/ Net SalesHigher the ratio, higher
the markup achieved
C. The money that the business has de-
posited in the bank has not yet been A. Gross Profit Ratio
recorded by the bank officials. B. Inventory turnover ratio
65. D 66. D 67. C 68. A 69. A 70. D 71. B 72. A 73. A

74. It is a type of Partners wherein it is only D. Dr. Accounts receivable $20, 000Cr.
liable to the extent of his contribution to Sales $19, 000Cr. Sales tax payable $1,
business. 000

A. General Partner E. Dr. Accounts receivable $20, 000Dr.
B. Limited Partner Sales tax payable $1, 000Cr. Sales $21,
000
C. Capitalist Partner
D. Industrial Partner 79. For an adjusting entry for deferred ex-
penses, it is common to:
75. Which of the following is not a characteris- A. Debit an expense and credit cash
tic of the corporate form of organization?
B. Debit a liability and credit an asset
A. Separate legal existence
C. Debit an expense and credit a liability
B. Unlimited liability for shareholders
D. Debit an expense and credit an asset
C. Easy transferability of ownership inter-
ests 80. What is the enticement to do something
that benefits the donor?
D. Ability to obtain large amounts of capi-
tal easily A. Goodwill
B. Security
76. Calculated as the sum of each possible
amount multiplies by its probability C. Donated Assets
A. Expected Value D. none of above
B. Most Likely Amount 81. The following are disadvantages of Corpo-
ration, except?
77. -lack physical substance-patents, copy-
rights, trademarks, franchises, goodwill A. Difficult to organize
A. natural resources B. Strictly regulated and supervised by
the Government
B. initial cost
C. Formal and Impersonal Employer-
C. intangible assets Employee Relationship
D. none of above D. none of the choices
78. Tilaar Corporation made credit sales of 82. Robert Corporation owns machinery that
$20, 000 which are subject to 5% sales cost $30, 000 when purchased on July 1,
tax. The corporation also made cash sales 2015. Depreciation has been recorded at
which totaled $30, 770 including the 5% a rate of $2, 600 per year, resulting in a
sales tax. What is the journal entry to balance in accumulated depreciation of $9,
record Tilaar’s credit sales? 100 at December 2018. The machinery is
A. Dr. Cash $30, 770Cr. Sales $29, 500Cr. sold on Oct 1, 2019, for $20, 500. What
Sales tax payable $1, 270 is the journal entry to update depreciation
B. Dr. Cash $29, 500Dr. Sales $1, 270Cr. for 2019?
Sales tax payable $30, 770 A. Dr. Depreciation expense $650Cr. Ac-
C. Dr. Accounts receivable $21, 000Cr. cumulated depreciation $650
Sales $20, 000Cr. Sales tax payable $1, B. Dr. Depreciation expense $2, 600Cr.
000 Accumulated depreciation $2, 600
74. B 75. B 76. A 77. C 78. C 79. D 80. C 81. D 82. C

C. Dr. Depreciation expense $1, 950Cr. A. Capable of being distinct

Accumulated depreciation $1, 950 B. Separately Identifiable
D. Dr. Accumulated depreciation $1,
950Cr. Depreciation expense $1, 950 88. If the bond interest payment dates are
May 1 and November 1, and the bond is
E. Dr. Accumulated depreciation $650Cr.
sold on June 1, the amount of cash re-
Depreciation expense $650
ceived by the bond issuer will be
83. The amount shareholders put in the com- A. minus interest owed from June 1 to
NARAYAN CHANGDER
pany is called: November 1
A. Retained Earnings B. minus interest owed from May 1 to
B. Paid in Capital June 1
C. plus interest owed from June 1 to
84. The accounts that are in debt are: November 1
A. Rent Charges Paid Up Front D. plus interest owed from May 1 to June
B. Rental Income 1
C. Rent Expense 89. Unearned income is recorded in the finan-
D. Prepaid Rental Income cial statements, i.e
85. Which best describes Management’s re- A. income statement

sponsibility? B. financial position report
A. An assessment of the company’s inter- C. cash flow statement
nal control procedures
D. capital change report
B. A detailed explanation of data con-
tained in the financial statements 90. Which of the following is (are) the proper
time period(s) to record the effects of a
C. An opinion that the financials present
change in accounting estimate?
fairly the financial position, results of op-
erations, and cash flow in accordance to A. Current period and prospectively
GAAP. B. Current period and retrospectively
D. All of the above C. Retrospectively only
86. A sale should not be recognized as revenue D. Current period only
by the seller at the time of sale if:
91. Which of the following best describes re-
A. payment was made by check. tained earnings?
B. the selling price is less than the normal A. Cash available for dividends.
selling price.
B. The amount initially invested in the
C. the buyer has a right to return the prod- business by stockholders.
uct and the amount of future returns can-
not be reasonably estimated. C. Cash available for expansion and
growth.
D. none of these.
D. Income that has been reinvested in the
87. Good/service are not highly interrelated business rather than distributed as divi-
with other good/services in the contract dends to stockholders.
CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

92. Economic Entity A. Dr. Contribution Expense $100, 000Cr.

A. Business is separate from owners. Land $100, 000

Economic events identified specifically B. Dr. Contribution Expense $130, 000Cr.
with an Land $100, 000Cr. Gain on Disposal of
B. Assumption anticipates that a busi- Land $30, 000
ness entity will continue to operate indef- C. Dr. Contribution Expense $130, 000Cr.
initely Land $130, 000
C. Assumption allows the life of a com- D. Dr. Contribution Expense $100, 000Dr.
pany to be divided into artificial time pe- Gain on Disposal of Land $30, 000Cr. Land
riods to provide timely information $130, 000
D. Transaction and reports stated in dol- E. None of these
lars
96. The use of company financial statements
93. The differences between GAAP (FASB) and for potential creditors is:
IFRS (IASB) A. As a consideration in investing capital.
A. FASB has worked on relatively narrow B. To find out the distribution of profits to
products, such as the definition off materi- shareholders.
ality and a more general disclosure frame- C. To find out the amount of company cap-
work ital.
B. IASB has moved forward with a more D. As a consideration when providing
comprehensive overhaul of its conceptual credit
framework
C. IASB has worked on relatively narrow 97. What are assets that are constructed for
products, such as the definition off materi- a company’s own use as well as assets
ality and a more general disclosure frame- constructed as discrete projects for sale on
work lease?
D. FASB has moved forward with a more A. Interest Capitalization

comprehensive overhaul of its conceptual B. Self Constructed Assets
framework C. Overhead Allocation
94. Primary focus of financial accounting is: D. Qualifying Assets
A. Providing financial information to ex- 98. How to calculate cost of equipment?
ternal users
A. purchase price
B. Providing financial information to in-
B. sales tax
ternal users
C. transportation
C. Make sure books balance
D. legal fees and other costs
D. Make sure company follows rules
E. expenditures for installation and test-
95. Carry Industries donates land to the city of ing
Los Angeles for a city park. The land cost
$100, 000 and has a fair value of $130, 99. Sales returns for perpetual inventory
000. What is the journal entry in Carry owner ship depends on
Industries to record this donation? A. Ownership of goods

B. Consignee and parent companies. What assumptions

C. Consignor underlie this accounting treatment?
D. Reduction of purchases A. Accrual

B. Periodicity
100. Repayment of bonds previously issued at
a premium price is repaid by issuing new C. Going concern
bonds between interest payment dates. D. Entity
So at the time of the reacquisition
NARAYAN CHANGDER
103. Tory Manufacturing Co. ships merchan-
A. all costs related to the issuance of (old)
dise costing $42, 000 on consignment to
bonds are amortized up to the reacquisi-
Kelly Stores. Tory pays $4, 500 of freight
tion date.
costs, and Kelly pays $2, 500 for local
B. The premium must be amortized up to advertising costs that reimbursable from
the reacquisition date. Tory. By the end of the period, Kelly has
C. There is accrued interest from the sold two-thirds of the consigned merchan-
date of the last interest payment until the dise for $46, 000 cash. What is the jour-
date of reacquisition. nal entry at Tory to record the shipment of
consigned merchandise?
D. all answers are correct.
A. Dr. Inventory on Consignment $42,
101. In the event that the subscriber fails to 000Cr. Finished Goods Inventory $42, 000
pay for the shares According to Thai law, B. Dr. Finished Goods Inventory $42,
what does a company do regarding confis- 000Cr. Inventory on Consignment $42,
cated shares? 000
A. Forfeit part of all monies already paid. C. No entry
B. Issue shares equal to the amount al-
D. Dr. Inventory on Consignment $46,
ready paid.
000Cr. Finished Goods Inventory $46, 000
C. Refund to forfeited shareholders the
E. Dr. Finished Goods Inventory $46,
amount received after deducting losses
000Cr. Inventory on Consignment $46,
and expenses incurred from the resale of
000
shares.
D. Refund to forfeited shareholders equal 104. Which of the following is considered cash
to the amount received. according to accounting meaning?
E. The company can choose to choose A. banknotes and coins
any one method. And you must use that B. bank draft
method regularly.
C. order
102. The entity when preparing the con- D. All correct.
solidated financial statements eliminates
transactions that occur between the sub- 105. Ending Inventory equation (CGS)
sidiary and the parent company. What
assumptions underlie the accounting treat- A. Beginning Inventory-Purchases +
ment? When preparing consolidated finan- CGS = Ending Inventory
cial statements, an entity eliminates trans- B. Beginning Inventory + Purchases-
actions that occur between subsidiaries CGS = Ending Inventory

C. Beginning Inventory + Purchases + B. Current Cost

CGS = Ending Inventory
C. Settlement Value

D. Beginning Inventory-Purchases =
Ending Inventory D. lowest value
106. What is consigned inventory? 110. Government policy stating that compa-
nies are justified in changing their inven-
A. Goods that are shipped, but title trans-
tory valuation method to the LIFO method
fers to the receiver.
because devaluation is policy:
B. Goods that are sold, but payment is not
required until the goods are sold. A. Taxation
C. Goods that are sold, but payment is not B. stock Exchange

required until the goods are sold. C. Banking
D. none of above
D. Government Accounting
107. A company’s business activities with re-
gards to cash receipts and payments are 111. Goods that are purchased primarily
divided up between Operating, Investing, in finished form and retailersCosts in-
and Financing. Which of the following is clude:Purchase Price plus any other cost
considered Operating? necessary to get goods un condition and
location for sale
A. Inflow of cash from the sale of an old
factory A. Merchandising Inventory
B. Outflow of cash for payment on a Note B. Manufacturing Inventory
Payable
C. Outflow of cash for payment on an In- 112. Which statement is most accurate regard-
surance policy ing partnership accounting?
D. Outflow of cash for dividends paid to a A. Establishment of a partnership Part-

stockholder ners must always record assets and lia-
bilities at cost.
108. On March 1, 20X7, the company received
B. Withdrawals for personal use will al-
cash amounting to Rp. 80, 000, 000 for
ways increase your capital.
services to be performed in April 20X7.
The journal entry for the above transaction C. Establishment of a partnership Part-
is ners must always record assets and lia-
A. Cash (D)Service Revenue (K)80 million bilities at fair value.
B. Debt (D)Service income (K)80 million D. All correct.

C. Cash (D)Unearned Service Revenue
113. Lease term can be measured with the fol-
(K)80 million
lowing, EXCEPT:
D. Debt (D)Unearned Service Revenue
(K)80 million A. periods of time
B. production units
109. Which is not a criterion for measuring
value? C. None of the above
A. Original cost (Historical Cost) D. All of the above

114. Which are the assumptions in the PSAK A. Returned check

conceptual framework? B. Deposit for air conditioner
A. Substance over form C. capital share certificate
B. Accrual D. All correct.
C. Relevance
119. Number of issued shares held by share-
D. Economics Units holders of the company. Difference be-
tween issued ad outstanding arise when
NARAYAN CHANGDER
115. The right of shareholders to have the first
opportunity to buy new shares issued by a corporation buys back its own shares of
the company is called: stock in the market, referred to as trea-
sury stock
A. Voting rights
A. Authorized Shares
B. Capital deposit rights
B. Issued Shares
C. The right to pay attention to the pro-
portion of share ownership C. Outstanding Shares
D. Profit sharing rights D. none of above
116. What does a returned check mean? 120. Tanger Mining Corp. purchased the rights
to a property in North America to mine
A. A check that the business pays to an- for copper. The engineers estimate that
other person and that person returns it to a payment for the restoration of the prop-
the business. erty will need to be made at the end of the
B. A check that the business lost and then project, and that it has the following prob-
someone picked it up and returned it to able future outcomes:$200, 000 (40%),
me. $400, 000 (60%). The present value of
C. Checks that the business paid to oth- $1 factor for Tanger’s 5 year project and
ers and were returned by the bank be- risk-free interest rate of 3% is.86261.
cause there was not enough money in the Which of the following will be the credit to
account to pay the Asset Retirement Liability at the time
of estimate?
D. Checks made by the business and
recorded in the account. But the recipient A. 320, 000
has not yet cashed the money at the bank. B. 276, 035
117. It is a systematic process of identifying, C. 517, 566

recording, measuring, classifying, verify- D. 370, 967
ing, summarizing, interpreting and commu-
nicating financial information. 121. Accrued interest on notes receivable is
presented:
A. Financial Accounting
A. On the balance sheet as debt
B. Financial Information
B. In profit and loss it goes to operating
C. Accounting expenses
D. None of the choices C. In profit and loss add to the cost of
118. Which of the following items is not goods sold
counted as cash? D. On the balance sheet as an asset

122. Rock Company had a balance Accounts 127. Which of the following statements is cor-
Receivable of $180, 000, Allowance for rect regarding a partnership? (i) The part-
Doubtful Accounts of $4, 000, Sales (all ners always agree to share profits equally.

on credit) of $600, 000, and Sales return (ii) The partners run the same business
and allowances of $40, 000. What is the with the intention of making a profit. (iii)
journal entry if Rock estimates bad debts A person who previously had the status
at 2% of net sales? of an employee of the partnership, cannot
A. Dr. Bad debt expense $12, 000Cr. Al- join as new partners. (iv) The personal li-
lowance for doubtful accounts $12, 000 ability of partners for partnership obliga-
tions is unlimited.
B. Dr. Bad debt expense $11, 200Cr. Al-
lowance for doubtful accounts $11, 200 A. i
C. Dr. Bad debt expense $12, 800Cr. Al- B. ii
lowance for doubtful accounts $12, 800
D. Dr. Allowance for doubtful accounts C. iii
$11, 200Cr. Bad debt expense $11, 200 D. iv
E. None of these
123. Requires companies to report informa- 128. If NRV is lower than cost
tion about reported segment profit or loss, A. Reduce inventory from its already
including certain revenues and expenses, recorded purchase cost to the lower NRV
segment assets, and the basis of measure-
ment B. no adjusting entry needed
A. U.S. GAAP
B. IFRS 129. Which of the following is accounted for
as a change in accounting principle?
124. Lower of cost or market.Only used on
LIFO or Inventory Market Value A. A change in the estimated useful life of
plant assets.
A. LCNRV
B. LCM B. A change from the cash basis of ac-
counting to the accrual basis of account-
125. Assumes units last acquired are sold first ing.
A. Specific Identification method
C. A change from expensing immaterial
B. Average Cost expenditures to deferring and amortizing
C. FIFO (First In, First Out) them as they become material.
D. LIFO (Last in, First Out) D. A change in inventory valuation from
126. “Gains” from the sale of treasury shares average cost to FIFO.
(using the cost method) should be credited
to 130. In public companies, it is mandatory to in-
A. share premium-treasury. clude Earnings per Share in the profit and
loss report. This statement
B. share capital
C. retained earnings A. Correct
D. other income B. Salah

131. It refers to transactions and events of a 137. Purchased laundry equipment from the
business that can be measured in terms of Bahtera Jaya shop on credit. The trans-
money. action analysis is
A. Financial Accounting A. Assets increased, namely laundry
B. Financial Information equipment; debt increases
C. Accounting B. Assets increased, namely laundry
equipment; debt is reduced
D. None of the choices
NARAYAN CHANGDER
C. Assets increased, namely laundry
132. IAS No. 2 does not permit the use of LIFO equipment; cash is reduced
A. U.S. GAAP D. Salon equipment increases and laun-
B. IRFS dry equipment loads increase
133. Which of the following is not a consider- 138. Which of the following items are in-
ation of current liability? cluded in measuring the right-of-use as-
set? (NOTE:You can choose more than one
A. the entity expects to settle the liability
answer)
within the entity’s operating cycle
A. FV of lease payments paid
B. the entity holds the liability primarily
for the purpose of trading B. Cost of lease payments not yet paid
C. the liability is due to be settled within C. Initial direct costs incurred by the
12 months before the reporting period lessee
D. the entity does not have an uncondi- D. Any estimated costs for dismantling
tional right to defer settlement of the lia- and removing the asset
bility for at least twelve months after the E. Lease bonus to the lessor
reporting period
139. Contracts do not exist if
134. Land in the statement of financial po-
sition can be depreciated over 20 years. A. Neither the seller nor the customer
This statement has performed any obligations under the
contract
A. Correct
B. Both the seller and the customer can
B. Salah
terminate the contract without penalty
135. = NRVMarket should not be greater than C. Neither the seller nor the customer
the NRV sign a written contract
A. Ceiling D. Both the seeker and customer get in-
B. Floor volved in a lawsuit
136. What increases when credited? 140. Notes receivable with a nominal value of
A. Dividends IDR 50, 000, 000.00, interest rate 12%
per year, issued on December 1 2006 and
B. Expenses due on January 30 2007, the maturity
C. Revenue value is:
D. Liabilities A. Rp 56.000.000, 00
E. Equity B. Rp 51.000.000, 00

C. Rp 50.000.000, 00 146. when a bond is repaid by handing over

D. Rp 44.000.000, 00 assets where the fair value of the asset is
less than the carrying value of the bond,

141. Occurs when cash precede either expense the debtor will recognize
or revenue expectations.Includes Prepaid
Expense and Deferred Revenue A. no gain or loss on the repayment
A. Prepayments (Deferrals) B. gain on the repayment

B. Accruals C. loss on the repayment
C. Estimates D. there is no right answer
D. none of above
147. Amount of discount given at the time of
142. Which of the following refers to current reissue of shares should be debited to:
assets?
A. Shares Capital
A. vehicle
B. Discount on Shares
B. long term investment
C. Marketable securities C. Share Forfeiture A/c
D. Expenses for setting up a company D. Calls-In-Areas A/c
143. Intangible assets 148. It is the activity of Traders as a broad cat-

A. Patents egory of product and services.
B. Copyrights A. Selling People’s Time
C. Trademarks B. Buying and Selling Products
D. Franchises
C. Designing products, aggregating com-
E. Goodwill ponents and assembling finished products
144. Best type of auditor report (nothing D. Growing and Extracting Raw Materials
wrong)
A. Unqualified 149. Retained Earnings are affected by
B. Unqualified with an explanation or em- A. Net income
phasis paragraph B. Net Loss
C. Qualified
C. Cash, Dividends, and Property Divi-
D. Adverse or disclaimer dends
E. Rejected D. Prior period adjustments related to
145. What occurs when small companies incor- correction of error
porate and the owner contributes assets E. Cumulative effect of an accounting
to new corporation in exchange for own- change reported retrospectively
ership securities?
A. Noncash Acquisitions 150. Written promises to pay cash at some fu-
B. Lump-Sum Purchases ture date
C. Goodwill A. Accounts Payable
D. Issuance of Equity Securities B. Notes Payable

151. The closing inventory of Tigreal Corp. 154. Prepare an unadjusted trial balance,
amounted toP116, 400 excluding the fol- record adjusting entries and post to gen-
lowing:* 400 items which had cost P4 eral ledger accounts, prepare an adjusted
each. All were soldafter the reporting trial balance, prepare financial statements
period for P3 each, withselling expenses A. During the Accounting Period
of P200 for the batch. * 200 differ-
ent items which had cost P30 each.These B. At the end of the Accounting Period
items were found to be defective at theend C. At the end of the year
of the reporting period. Rectification
NARAYAN CHANGDER
D. none of above
workafter the statement of financial po-
sition dateamounted to P1, 200, after 155. How many methods are there to measure
which they were soldfor P35 each, with value?
selling expenses totalingP300. Which of
the following total figures should appear A. 1
inthe statement of financial position of Ti- B. 2
greal Corp. forinventory?
C. 3
A. For 122, 900
D. 4
B. For 123, 100
C. For 123, 400 156. Obama Inc. trades its used machine for
a new model at Bezos Inc. The exchange
D. For 123, 600 has commercial substance. The used ma-
chine has a book value of $10, 000 (orig-
152. The best guess of a company’s long-term
inal cost $16, 000 less $6, 000 accumu-
growth rate is
lated depreciation) and fair value of $8,
A. Long-term economic growth rate 000. The new model lists for $20, 000.
B. Historical average of dividend growth Bezos gives Obama a trade-in allowance
rate of $11, 000 for the used machine. What
is the journal entry to record this transac-
C. Industry’s profitability
tion at Obama?
D. The company’s payout policy
A. Dr. Equipment $17, 000Dr. Accumu-
153. Michael Corporation has a machine cost- lated Depreciation-Equipment $6, 000Cr.
ing P480, 000, with an annual deprecia- Equipment $16, 000Cr. Cash $7, 000
tion of P96, 000, and hasaccumulated de- B. Dr. Equipment $17, 000Dr. Loss on
preciation of P240, 000 on December31, Disposal of Equipment $2, 000Cr. Equip-
2019. On April 1, 2020, when the ma- ment $16, 000Cr. Cash $3, 000
chine has afair value of P192, 000, it is
exchanged for a similarmachine with a fair C. Dr. Equipment $20, 000Dr. Accumu-
value of P576, 000 and the properamount lated Depreciation-Equipment $6, 000Dr.
of cash is paid. The loss to be recognized Loss on Disposal of Equipment $2, 000Cr.
on exchange is Equipment $16, 000Cr. Cash $12, 000
A. P48, 000 D. Dr. Equipment $20, 000Dr. Accumu-

lated Depreciation-Equipment $6, 000Cr.
B. P24, 000 Equipment $16, 000Cr. Cash $10, 000
C. For 168, 000 E. Dr. Equipment $17, 000Dr. Accumu-
D. P 0 lated Depreciation-Equipment $6, 000 Dr.

Loss on Disposal of Equipment $2, 000Cr. 160. PT VERY purchased some new equipment
Equipment $16, 000Cr. Cash $9, 000 on 1 April 20X1 for Rp. 6, 000, 000. The
residual value of the new equipment over

157. The cost of an item of fixed assets shall a 5 year period is estimated at IDR 300,
be recognized as an asset if, and only if: 000. PT VERY charges monthly depreci-
A. It is probable that future economic ation on the straight-line method. What
benefits associated with the item will flow was the depreciation charge for the equip-
to the entity. ment in the one-year reporting period to
B. The cost of the item can be measured 30 September 20X1?
reliably. A. Rp570.000
C. All of the above.
B. Rp1.140.000
D. None of the above.
C. Rp600, 000
158. On January 1, 2015, Yorry Manufactur-
ing Company purchased equipment from D. Rp1.200.000
Woles Inc. There is no market price for
this equipment which has a useful life of 161. The following are Advantages of Sole
8 years with no residual value. Yorry Proprietorship, except?
handed over to Woles a £105, 000 zero- A. Low cost of formation and dissolution
interest-bearing note payable in 3 equal
annual installments of £35, 000, with the B. Independent and Flexibility
first payment due December 31, 2015. C. Tax advantage and less Government
The applicable market interest rate for this regulation
type of note is 8%. The present value of
the note at 8% was £90, 199. Assum- D. None of the choices
ing Yorry uses the straight-line method of
depreciation, how much will be reported 162. Represents the basic financial position el-
as interest expense for notes payable and ements (Assets, Liabilities, and Stockhold-
equipment depreciation expense in 2015? ers’ Equity)
A. £7, 216; £11, 275 A. Permanent Accounts
B. £7, 216; £30, 066 B. Temporary Accounts
C. £8, 400; £13, 125
D. £1, 750; £8, 750 163. Buyer’s location. Buyer has rights to in-
ventory as soon as items have arrived to
159. Why did the AICPA create the Accounting their unloading dock. Seller has rights to
Principles Board? inventory while in truck.
A. The SEC disbanded the previous stan- A. F.O.B. Shipping point
dard setting organization.
B. F.O.B. Destination point
B. The previous standard setting organi-
zation did not provide a structured set of
164. Amounts earned by the corporation on be-
accounting principles.
half of its shareholders
C. No such organization existed in the
past. A. Paid in Capital
D. None of the above. B. Retained Earnings

165. On March 1, 2020, Jai Jai Company Lim- repairs and testing, a fee of IDR 5, 000,
ited issued 10, 000 Stock Rights to exist- 000.00 will be incurred. The economic life
ing shareholders, with 2 rights to purchase of the car is estimated at 5 years with a
1 common share worth 100 baht per share, residual value of IDR 6, 000, 000.00. de-
at a price of 105 baht per share. Common preciation using the straight line method.
shares have the market price as of today, If the machine is sold on September 1,
per share. 120 baht The right expires on 2008 for Rp. 19, 000, 000.00, then the
July 31, 2020. How should the company sale occurs
record the accounts on the date of granting
NARAYAN CHANGDER
A. profit IDR 1, 900, 000.00
the right?
A. Memorandum:Issued 10, 000 rights B. loss of IDR 800, 000.00
certificates to purchase 5, 000 common C. loss IDR 1, 800, 000.00
shares at 105 baht per share by July 31,
2020. D. profit IDR 200, 000.00
B. Dr. Warrant to purchase shares 500, 169. What is the inclusion of only the incre-
000Cr. Ordinary shares 500, 000 mental overhead costs?
C. Dr. Warrant to purchase shares 525, A. Overhead Allocation
000Cr. Common shares 500, 000 Premium
on common shares 25, 000 B. Interest Capitalization
D. Dr. Warrant to purchase shares 500, C. Qualifying Assets
000Cr. Surplus-rights to purchase com-
D. Self Constructed Assets
mon shares 500, 000
E. There are no records of any transac- 170. The portion of authorized shares that
tions. On the day of granting rights have been issued in the market
166. Revenue Recognition determines A. Authorized Shares
A. How much revenue is recorded? B. Issued Shares
B. When to record it C. Outstanding Shares
C. What to record D. none of above
D. Why you should record it
171. Accumulated building depreciation in the
167. Net realizable value = trial balance K Rp. 6, 000, 000.00 the
A. Estimated selling price-costs of com- acquisition price of the building is Rp. 60,
pletion, disposal, and transportation 000, 000.00. If the building depreciation
at the end of each year is Rp. 3, 000,
B. Estimated selling price + costs of com-
000.00. So the estimated building depreci-
pletion, disposal, and transportation
ation expense in the year-end trial balance
C. Estimated selling price / costs of com- is
pletion, disposal, and transportation
A. D Rp. 60, 000, 000.00
D. Estimated selling price x costs of com-
pletion, disposal, and transportation B. D Rp. 9, 000, 000.00
C. D Rp. 6, 000, 000.00
168. On May 1, 2006, a machine was pur-
chased for Rp. 25, 000, 000.00. For D. D Rp. 3, 000, 000.00

172. Bond issuance costs, including printing C. FIFO (First In, First Out)
costs and legal fees associated with the D. LIFO (Last in, First Out)
bond issuance, should be

A. recorded as an expense in the bond is- 176. Jai Jai Company Limited has 20, 000 is-
suance period sued and paid-up common shares with a
B. recorded as a deduction from the car- preferred shares with a value of 100 baht
rying value of the bond per share. The last cash dividend was paid
C. recorded as a deferred expense and in 2017. Later in 2020, it announced a to-
amortized over the term of the bond tal dividend payment of 350, 000. Baht
in the case of preferred shares It is a par-
D. reported as an expense in the period
ticipation type not exceeding 20%. How
the bond matures
much dividends will the preferred shares
173. The key distinction between current lia- receive?
bilities and long-term liabilities is: A. 142, 000 baht
A. The amount of the obligation to be B. 128, 800 baht
satisfied-large vs small
C. 230, 000 baht
B. To whom the obligation is owed-those D. 156, 000 baht
inside versus those outside of the com-
pany E. 200, 000 baht
C. The length of time until the obligation 177. Merchandiser using FIFO perpetual will
is expected to be satisfied-less than one be different from one that uses FIFO pe-
year vs more than one year, or operating riodic
cycle if longer A. True
D. The nature of the obligation- B. False
determination amount versus estimated
amount 178. Prepaid expenses are included in
174. Temporary Accounts A. Liquid Assets
A. Revenues B. Non-current Assets

C. Liabilities
B. Expenses
D. Equity
C. Assets
D. Liabilities 179. Results in old cost being matched with
current selling prices. If cost have been
E. Dividends
increasing (decreasing), LIFO liquidations
175. Refers to matching each unit sold during produce higher (lower) net income.
the period or each unit on hand at the end A. LIFO Reserves
of the accounting period with its actual B. Lifo liquidation
account.Used by companies selling unique,
expensive products with low sales volume 180. Some of the functions of a qualified ac-
(ex. car dealerships) counting role are, except:
A. Specific Identification method A. minimize fraud
B. Average Cost B. menghindari expectation gap

C. support alignment 184. Which of the following principles best

describes the conceptual rationale for the
D. address political environmental prob-
method of matching depreciation expense
lems
to income?
181. The estimated life of a building that has A. Connecting cause and effect
been depreciated 30 years of an origi- B. Systematic and rational allocation
nally estimated life of 50 years has been
revised to a remaining life of 10 years. C. Partial award
NARAYAN CHANGDER
Based on this information, the accountant D. Confession
should:
185. Legal, regulatory, or contractual provi-
A. continue to depreciate the building sions often limit the useful life of an in-
over the original 50-year life. tangible asset
B. depreciate the remaining book value A. Useful Life
over the remaining life of the asset.
B. Residual Value
C. adjust accumulated depreciation to its
appropriate balance, through net income, 186. On December 31, 2008 Kean Company
based on a 40-year life, and then depreci- changed its method of accounting for
ate the adjusted book value as though the inventory from weighted average cost
estimated life had always been 40 years. method to the FIFO method. This change
caused the 2008 beginning inventory to in-
D. adjust accumulated depreciation to crease by $420, 000. The cumulative ef-
its appropriate balance through retained fect on COGS of this accounting change to
earnings, based on a 40-year life, and be reported for the year ended 12/31/08,
then depreciate the adjusted book value assuming a 40% tax rate, is:
as though the estimated life had always
been 40 years. A. $420, 000.
B. $252, 000.
182. The amount of cash provided by a com-
C. $168, 000.
pany to pay relatively small expenses is
called D. $0.
A. Cash shortage E. $588, 000
B. Cash overage 187. Components that DEFINITELY reduce the

amount of retained earnings include:
C. Cash on hand
A. Net profit
D. Paybill
B. Dividends
E. Petty cash
C. Changes in Accounting Principles
183. Inventory error correction-when the er- D. Previous Period Adjustments
ror is found two years later-requires
188. Management:
A. No correcting entry required and a dis-
closure note in the company’s annual re- A. Acknowledges responsibility and certi-
port is needed. fies accuracy of financial statements
B. Debit retained earningsCredit inven- B. Makes sure a company is run correctly

tory C. makes no effort to accounting

D. Has the power to overrule accounting 192. Limitations of the Financial Position Re-
procedure in case of an economic disaster port include

189. Jackson Classic Car Parts Corp. uses the A. Can assess the company’s solvency
gross method for sales to customers on B. Cannot Calculate rate of return
account. If Jackson’s sells $4, 000 to a
C. Most assets and liabilities are re-
customer on account on September 21st,
ported on a historical cost basis
with credit terms 2/15, N/30, FOB ship-
ping point, what would Jackson’s debit Ac- D. can find out financial flexibility
counts Receivable for?
193. Sincere Company Limited registered 20,
A. 4000 000 common shares with a value of 100
B. 3920 baht per share on January 1, 2020. Is-
C. 4600 sued 6, 000 common shares at a price of
120 baht per share on June 1, 2020. Pur-
D. 4080 chased 1, 000 common shares back at the
190. Pemberly Corporation began busi- price. 130 baht per share. Show the
ness in 2009 by issuing 200, 000 recording of treasury shares on June 1,
shares of common stock at $20 par 2020 (according to the cost method).
selling for $36 per share. In 2014, A. Dr. Treasury shares-common shares
20, 000 shares were withdrawn at 100, 000 Cr. Cash 100, 000
52persharebyPemberlyCorporationandrecordedastreasuryshares.OnJune15, 2015,the20, 000sharesw
B. Dr. Treasury shares-common shares
per share on June 15, 2015. The cost
130, 000 Cr. Cash 130, 000
method is used to record treasury shares.
The amount of share premium-treasury C. Dr. Treasury shares-common shares
resulting from the above transaction is 100, 000 Premium on common shares 30,
000 Cr. Cash 130, 000
A. $800, 000.
B. $480, 000. D. Dr. Treasury shares-common shares
100, 000 Premium on common shares 20,
C. $390, 000. 000 Cr. Cash 120, 000
D. $160, 000. E. Memoirs Buy back 1, 000 common
191. The purpose of financial reports in the shares at a price of 130 baht per share.
basic framework for preparing local gov-
194. PT Permata purchased a patent related to
ernment financial reports according to
a new manufacturing process, which will
SAP prioritizes aspects The purpose
be used to produce new products. The
of financial reports in the basic frame-
costs incurred are as follows:1. Patent ac-
work for preparing local government finan-
quisition price:Rp. 1, 600, 000, 0002. Ex-
cial reports according to SAP prioritizes
penditures for new product promotion:IDR
aspects
150, 000, 0003. Employee benefits costs
A. Usefulness in decision making (deci- related to testing required to ensure the
sion usefulness) new process works:Rp. 200, 000, 000
B. Ease of information to understand (un- How much total costs are capitalized as in-
derstandability) tangible assets?
C. Valuation A. Rp 1.950.000.000
D. Accountability B. Rp 1.800.000.000

C. Rp 1.750.000.000 198. Mark Transportation Company ex-

changed a number of used trucks plus cash
D. Rp 1.600.000.000
for a semi-truck. The used trucks have a
195. Common Stock has combined book value of $40, 000 (cost
$62, 000 less $22, 000 accumulated de-
A. Basic ownership interest in the corpo- preciation). Mark’s purchasing agent, ex-
ration perienced in the second-hand market, indi-
B. Owners bear the ultimate risk of loss cates that the used trucks have a fair mar-
ket value of $47, 000. In addition to the
NARAYAN CHANGDER
because upon liquidation there is no guar-
antee trucks, Interstate must pay $9, 000 cash
for the semi-truck. What is the journal
C. Right to vote and have general control entry to record the exchange transaction?
over management through voting rights
A. Dr. Semi-truck $47, 000Dr. Accu-
and election of officers
mulated Depreciation-Trucks $22, 000Cr.
D. Right to share of earnings when divi- Trucks (used) $62, 000Cr. Loss on dis-
dends are declared by management posal of used Trucks $7, 000
E. Preemptive right B. Dr. Semi-truck $56, 000Dr. Accu-
mulated Depreciation-Trucks $22, 000Cr.
196. A contract, or part of a contract, that con- Trucks (used) $62, 000Cr. Gain on dis-
veys the right to use an asset for a pe- posal of used Trucks $7, 000Cr. Cash $9,
riod of time in exchange for consideration, 000
given that the supplier has a substantive C. Dr. Semi-truck $47, 000Dr. Accu-
right regarding the said asset. mulated Depreciation-Trucks $22, 000Cr.
A. Manufacturer’s Lease Trucks (used) $62, 000Cr. Gain on dis-
posal of used Trucks $7, 000
B. Finance Lease
D. Dr. Semi-truck $56, 000Dr. Accu-
C. Lease mulated Depreciation-Trucks $22, 000Cr.
D. None of the above Trucks (used) $62, 000Cr. Loss on dis-
posal of used Trucks $7, 000Cr. Cash $9,
E. All of the above
000
Explanation:There is no identified asset if
the supplier has substantive right regard- E. None of these
ing the said asset. Hence, it cannot be
199. General-purpose financial statements are
considered as a lease, much less a finance
the product of
or manufacturer’s lease.
A. financial accounting.
197. matching between the formation of rev- B. managerial accounting.
enue and the amount of expenses to gener-
C. both financial and managerial account-
ate revenue in one period is the fulfillment
ing.
of basic accounting assumptions, namely:
D. neither financial nor managerial ac-
A. economic entity counting.
B. going concern
200. The principal classification of liabilities
C. periodecity are
D. accrual basis of accounting A. Current and non-current

B. long-term and short-term 205. Amazon Inc. Giant Inc. acquires the cus-
tomer list of a large newspaper for $8,
C. Interest and non-interest bearing
000, 000 on January 1, 2016. Giant Inc.

D. All the above expects to benefit from the information
evenly over a four-year period. What is
201. Securities that are in market demand in the journal entry to record the customer
which the business invests with uncertain list?
objectives What type of securities will
A. Dr. Cash $8, 000, 000Cr. Customer
they be classified as?
List $8, 000, 000
A. Securities for trading B. Dr. Customer List $8, 000, 000Cr. Ac-
B. Securities available for sale count Payable $8, 000, 000
C. Debt instruments due within 1 year C. Dr. Customer List $2, 000, 000Cr.
Cash $2, 000, 000
D. General investments
D. Dr. Customer List $2, 000, 000Cr. Ac-
202. The following costs may all be included in count Payable $2, 000, 000
the costs of acquiring fixed assets, except: E. Dr. Customer List $8, 000, 000Cr.
Cash $8, 000, 000
A. Costs of site preparation
B. Costs of testing whether the assets is 206. Natural Resources
functioning properly A. Oil and Gas Deposits
C. Installation and assembly costs B. Timber
D. Administration and general overhead C. Tracts
costs D. Mineral Deposits
E. Equipment
203. An unclean opinion
A. Unqualified 207. The following figures relate to inven-
tory held at theend of the reporting pe-
B. Unqualified with an explanation or em- riod:Cost of materials P100, 000Net re-
phasis paragraph alizable value of materials 90, 000Esti-
C. Qualified mated costs to convert materialsinto fin-
ished goods 50, 000Estimated selling price
D. Adverse or disclaimer of finished goods 160, 000Estimated costs
E. Rejected to sell 5, 000 The entity should recognize
loss on write-down ofinventory of materi-
204. Revenue is recognized by the consignor als of
when the: A. P15, 000
A. goods are shipped to the consignee. B. P10, 000
B. consignee receives the goods. C. P5, 000
C. consignor receives an advance from D. Nil
the consignee.
208. PT Royal purchased a jet aircraft for use
D. consignor receives an advance from by the entity’s top management. The ac-
the consignee. quisition price of the jet aircraft was IDR

1 billion. The jet aircraft is estimated to be aggravated anyway to gain the conve-
used for 7 years, however there are main nience of a collective depreciation calcula-
components of the jet aircraft which have tion?
different useful lives as follows:the engine A. Group Depreciation Method
has a useful life of 5 years and the aircraft
tires will be replaced every 2 years. The B. Composite Depreciation Method
jet aircraft will be depreciated using the
213. Part of the process of preparing a cash
straight line method over
flow statement is calculating cash flows
NARAYAN CHANGDER
A. 7 years of benefit period from operating activities. Which of the fol-
B. 2 years useful life for reasons of con- lowing statements is incorrect regarding
servatism the use of the indirect method:
C. 5 years useful life for the engine, 2 A. 1, 2, 3
years useful life for tires, and 7 years for B. 1, 2, 4
the remaining purchase price
C. 1, 3, 4
D. 5 years of benefit time which is the av-
D. 2, 3, 4
erage benefit time
214. Inventory is part of the asset classifica-
209. What is capitalized and then allocated as
tion. The incorrect definition is:
depreciation?
A. Used in the production or supply of
A. Overhead Allocation
goods and services for administrative pur-
B. Interest Capitalization poses
C. Constructed Assets B. For sale in the normal course of busi-
D. Patent ness
C. In the production process for the sale
210. When the shares are issued for consider-
ation other than cash which account will be D. In the form of materials or equipment
debited to be consumed in the production/service
process
A. Securities Premium
B. Capital Reserve A/c 215. Purchase equipment in cash. The conse-
quences of the transaction and its effect
C. Vendor A/c on the account
D. Share Capital A/c A. Assets (equipment) decrease and as-
sets (cash) increase
211. Dividends not paid during a year do not
accumulate to PS shareholders B. Assets (equipment) increase and As-
sets (cash) increase
A. Cumulative PS
C. Assets (equipment) increase and as-
B. Noncumulative PS
sets (cash) decrease
C. Participating PS
D. Assets (equipment) are reduced and
D. Nonparticipating PS assets (cash) are reduced
212. What is the collection of depreciable as- 216. Resources controlled by an entity as a re-
sets that are physically dissimilar but are sult of the past and which are expected to

have economic benefits flowing to the en- A. Deferred Revenue

tity in the future are called B. Accrued Liabilities

A. Debt
222. Refers to the process of admitting infor-
B. Equity mation into the financial statements
C. Asset A. Recognition
D. Income B. Measurement
217. The element or elements related to the C. Disclosure
residual interest in the company’s assets D. none of above
after deducting liabilities are
223. Assumes inventory cost is a mix of all
A. Asset
goods available for sale. Average us
B. Burden weighted by number of units.
C. Income A. Specific Identification method
D. Equity B. Average Cost
218. Companies IPO because C. FIFO (First In, First Out)
A. all of the mentioned reasons D. LIFO (Last in, First Out)
B. it allows original shareholders to exit 224. Which of the following is not an accurate
C. they want to raise funds representation concerning revenue recog-
nition?
D. it allows employees to enjoy the com-
pany’s success A. Revenue from selling products is rec-
ognized at the date of sale, usually inter-
219. Company X currently has book value per preted to mean the date of delivery to cus-
share of THB 20 and cost of equity of 12%. tomers.
If its ROE is 15% and dividend payout ra- B. Revenue from services rendered is
tio is 80%, its sustainable growth rate is: recognized when cash is received or when
A. 3% services have been performed.
B. 2.4% C. Revenue from permitting others to use
enterprise assets is recognized as time
C. 12%
passes or as the assets are used.
D. 9.6%
D. Revenue from disposing of assets
220. Which of the following is a key provision other than products is recognized at the
of the Sarbanes-Oxley Act? date of sale.
A. Hiring of the audit firm 225. Recognizes revenue when it is earned
B. Hiring of executive officers and expenses when they are incurred
C. Tax advisory services A. Cash Basis
D. Investment consulting B. Accrual Basis
221. Represents cash received from a cus- 226. Maximum number of shares a company
tomer for goods or services to be provided may legally issue
in a future period A. Authorized Shares

B. Issued Shares B. Investment Activities, Funding and Ex-

penditures
C. Outstanding Shares
D. none of above C. Operational, Investment and Funding
Activities
227. On September 1, Harry purchased $13, D. Investment, Funding and Financing ac-
300 of inventory items on credit with tivities
the terms 1/15, net 30, FOB destination.
Freight charges were $280. Payment 230. There are two methods for recording ac-
NARAYAN CHANGDER
for the purchase was made on September counts regarding capital shares returned:
18. Assuming Harry uses the perpetual
inventory system and the net method of A. Cost method and Value method
accounting for purchase discounts, what B. Cost method and fair value method
amount is recorded as inventory from this
C. Cost method and market price method
purchase?
A. $13, 167. D. Cost method and book value method
B. $13, 447. E. Value price method and fair value

method
C. $13, 580.
D. $13, 300. 231. Faithful representation bermakna bahwa
E. None of these A. the numbers and their descriptions

show what actually exists or happened
228. PT Banjar purchased a machine in 2012 B. Manage the Company honestly and
with an allocated acquisition price of IDR fairly
9.2 billion for the machine body and IDR
1.2 billion for the motor components. In C. Generate maximum profit
2015, the motor components of the ma- D. Covering the company’s losses last
chine were replaced with a new motor at year
a cost of IDR 2.2 billion. At the time of
replacement, the accumulated depreciation 232. It is a type of Partners wherein it con-
of the machine body was IDR 3.5 billion tributes money, property and belongings.
and the accumulated depreciation of the
motor was IDR 800 million. How much A. General Partner
value should be derecognized on the re- B. Limited Partner
placement date?
C. Capitalist Partner
A. IDR 2.2 billion
D. Industrial Partner
B. IDR 1.2 billion
C. IDR 400 million 233. The process of buying asset in business
operations is called ?
D. Nol
A. Investing Activities
229. Mention the activities in the cash flow
B. Financing Activities
statement.
C. Operating activities
A. Operating Activities, Investments and
Expenditures D. Raising Capital

234. A mining company declares a liquidating 239. The following are categories of Other
dividend. The journal entry for this divi- Comprehensive Income, except
dend announcement on the debit side is

A. Hedging
A. Retained Earnings. B. Translation
B. Share Premium. C. Revaluation Surplus
C. Accumulated Depletion. D. Impairment Loss
D. Accumulated Depreciation.
240. Which of the following is not subject to
235. Not subject to amortization amortization?
A. Patents
A. Finite useful life
B. Copyrights
B. Indefinite useful life
C. Franchise agreements
236. What is the accounting treatment for Un- D. Goodwill
earned Income when the goods or services
have been enjoyed by consumers (revenue 241. Performance Obligation:To facilitate a
is earned)? transaction between a principal and a cus-
A. Debit the Income account, and credit tomer
the Income Received in Advance. A. Agent
B. Debit Income Received in Advance, B. Principal
and credit the Income account.
242. Roll Company had a balance Accounts
C. Debit cash, and credit Earnings Re- Receivable of $180, 000, Allowance for
ceived in Advance. Doubtful Accounts of $4, 000, Sales (all
D. Debit Income Received in Advance, on credit) of $700, 000, and Sales return
and credit Cash. and allowances of $50, 000. What is the
journal entry if Roll estimates bad debts
237. What is the estimated use the company at 5% of accounts receivable?
expects to receive from the asset? A. Dr. Bad debt expense $9, 000Cr. Al-
A. Service life lowance for doubtful accounts $9, 000
B. Cost Allocation B. Dr. Bad debt expense $9, 200Cr. Al-
lowance for doubtful accounts $9, 200
C. Overhead Costs
C. Dr. Bad debt expense $5, 000Cr. Al-
D. none of above lowance for doubtful accounts $5, 000
238. What inventory valuation method is used D. Dr. Allowance for doubtful accounts
when the assumption is made that inven- $5, 000Cr. Bad debt expense $5, 000
tory valuation is based on the order in E. None of the above
which it is received
243. What is an asset received in an exchange
A. FIFO
of nonmonetary assets that is generally
B. LIFO valued at fair value?
C. Weighted Average A. Donated Assets
D. Weighted Continue B. Exchanges

C. Goodwill C. 2, 419, 600 loss

D. Acquisitions D. 2, 419, 600 gain
244. On 1 Jan. 2020, Jing Jai Company Lim- 246. The accounting equation can be written
ited registered 100, 000 common shares as follows:
with a value of 100 baht per share. 1 A. Assets + profit-withdrawals-
Feb. 20 issued 20, 000 common shares liabilities = final capital
at a price based on value. 1 Mar. 20 is-
B. Assets-liabilities-withdrawals = ini-
NARAYAN CHANGDER
sued 50, 000 common shares. At a price
of 105 baht, which statement is correct re- tial capital + profit
garding accounting recording? On the com- C. Assets-liabilities-initial capital + with-
mon stock issue date on March 1, 2020 drawals = profit
A. Dr. Cash 5, 250, 000 Cr. Unsold com- D. Initial capital + profit-withdrawals-
mon stock capital 5, 000, 000 Retained liabilities = assets
earnings 250, 000
247. It encompasses the entire system of mon-
B. Dr. Cash 5, 250, 000 Cr. Common itoring and control of money as it flows in
share capital 5, 000, 000 Premium on com- and out of an organization as assets and
mon shares 250, 000 liabilities, and revenues and expenses.
C. Dr. Cash 5, 250, 000 Cr. Unsold com- A. Financial Accounting
mon stock capital 5, 250, 000
B. Financial Information
D. Dr. Cash 5, 250, 000 Cr. Common
stock capital 5, 250, 000 C. Accounting
E. Memorandum:Issued 50, 000 common D. None of the choices

shares with a value of 100 baht per share. 248. Which of the following will likely be in-
cluded in a Management’s Discussion &
245. On December 31, Year 1, Zilong Company
Analysis report?
had an overdue 10% note payable to Al-
dous Bank worth 8 million and an accrued A. An assessment of the company’s inter-
interest of P 800, 000. On that date, Al- nal control procedures.
dous Bank offered modification of terms B. A detailed explanation of data con-
of the liability as follows:> Principal is retained in the financial statements (details
duced by P 2 million and accrued interest is on long-termdebt, leases, etc.).
condoned> Maturity is extended to Decem-
ber 31, Year 5> The new interest rate of C. An opinion that the financials present
12% is payable every December 31> PV fairly the financial position, results of op-
of 1 at 10% for 4 periods is 0.683 and PV erations, and cash flows in accordance
of 1 at 12% for 4 periods is 0.636> PV with GAAP.
of an ordinary annuity of 1 at 10% for 4 D. All of the above.
period is 3.17 and PV of an ordinary annu-
ity of 1 at 12% for 4 period is 3.037What 249. On Dec 31, 2018, Lopez Inc. has 1, 500
amount of gain(loss) on extinguishment of shares of 8%, $150 par value common
debt shall be recognized for Year 1. stock outstanding. At Dec 31, 2018, the
directors declare a $10, 000 cash dividend.
A. 2, 797, 360 loss What is the journal entry to record the dec-
B. 2, 797, 360 gain laration of dividend?

A. Dr. Cash Dividends $10, 000Cr. Com- 254. An entity’s Equipment has a carrying
mon Stock $10, 000 amount ofP67, 460. An equipment cost-
ing P15, 000 had beensold for P4, 000,

B. Dr. Cash Dividends $10, 000Cr. Divi-
dends Payable $10, 000 making a loss on disposal of P1, 250.No
entries had been made for this disposal.
C. Dr. Dividends Payable $10, 000Cr. What is the correct carrying amount of the
Common Stock $10, 000 entity’s Equipment?
D. Dr. Dividends Payable $10, 000Cr. A. Bukha, 460
Cash $10, 000
B. P62, 210
250. What is the disposition of the old com- C. P64, 710
ponent and acquisition of the new compo-
nent? D. P66, 210
A. Repair 255. The accounting standard setting body in
B. Substitution Indonesia is
C. Fix A. IAI
D. Improvements B. IFRS
C. FASB
251. Another term for a promissory note that
has a predetermined interest rate is D. DSAK
A. Notes receivable 256. Rudolfo Corp redeems bonds with a nom-

B. Interest-bearing money order inal/maturity value of $100, 000 at an
exchange rate of 102 on January 1, af-
C. Notes payable ter interest payments. Carrying value of
D. Money order interest bonds at redemption is $96, 250. journal
E. Money orders do not bear interest entry when the bonds are redeemed is in-
cluded
252. What does noncash acquisitions include? A. debit of $5, 750 to Loss on Extinguish-
A. deferred payments ment of Debt
B. issuance of equity securities B. debit of $96, 250 to Bonds Payable
C. donated assets C. credit of $3, 750 to Gain on Extinguish-
D. exchange of nonmonetary assets for ment of Debt
other assets D. debit of $3, 750 to Bonds Payable
253. Statement 1:A liability is a present obli- 257. Which of the following describes a
gation of entity to transfer an economic re- change in reporting entity?
source as a result of past event.Statement A. A company acquires a subsidiary that
2:An obligation is a duty or responsibility is to be accounted for as a purchase.
that the entity has no practical ability to
avoid B. A manufacturing company expands its
market from regional to nationwide.
A. Both statements are false
C. A company divests itself of a European
B. Both statements are true branch sales office.
C. Statement 1 is true D. Changing the companies included in
D. Statement 2 is true combined financial statements.

258. Costs for supplies do not include 262. Report more detailed information than is
A. Purchase price shown in the primary financial statements
B. Import duties and other taxes A. Parenthetical comments (modifying

comments)
C. Abnormal amounts of waste materials
B. Disclosure notes
D. Sales costs
C. Supplemental schedules and tables
259. Company X currently has book value per
D. none of above
share of THB 20 and cost of equity of 12%.
NARAYAN CHANGDER
If its ROE is 15% and dividend payout ra- 263. US National Bank agrees to lend $150,
tio is 80%, its next dividend payment is: 000 on March 1, 2019, to Butter D Co.
A. 2.40 if Butter D signs a $150, 000, 8 percent,
four-month note. If Butter D prepares fi-
B. 3.00
nancial statements semiannually, what is
C. 0.60 the adjusting entry to recognize interest
D. 1.92 expense and interest payable at June 30?
260. Answer the following questions.3. What A. Dr. Interest expense $12, 000Cr. In-
is the depreciation expense on June 30, terest payable $12, 000
2023?4. What amount should be rec- B. Dr. Interest payable $4, 000Cr. Inter-
ognized as impairment loss on June 30, est expense $4, 000
2023.5. What amount should be recog- C. Dr. Interest expense $4, 000Cr. Inter-
nized as gain on reversal of impairment on est payable $4, 000
December 31, 2023?
D. Dr. Interest payable $12, 000Cr. In-
terest expense $12, 000
E. None of these
264. What is the measurement of the equity in-

strument issued to extinguish a financial li-
ability in an equity swap debt restructure?
A. Bakh, 000
A. Par value of the equity instrument is-
B. P15, 000 sued
C. P30, 000
B. Fair value of the financial liability extin-
D. P45, 000 guished
261. Management’s discussion and analysis C. Fair value of the equity instrument is-
provides management’s biased but in- sued
formed perspective on significant events, D. Carrying amount of the financial liabil-
trends, and uncertainties pertaining to: ity extinguished
A. Operations
265. Involves cash flow that occur after either
B. Liquidity expense or revenue recognition.Includes
C. Capital resources Accrued Liabilities and Accrued Recievables
D. Events A. Prepayments (Deferrals)
E. Growth B. Accruals

C. Estimates 270. The process of raising money through in-

vestors and lenders is called ?
D. none of above

A. Investing Activities
266. Recording Revenue:Only the commission B. Operating Activities
it receives on the transaction
C. Raising Capital
A. Agent
D. All of the choices
B. Principal
271. A Company allotted 20, 000 shares to ap-
267. Stock Exchange of Thailand’s Total Return plicants of 50, 000 shares after rejecting
Index grows the normal SET Index. 10, 000 applications. The ratio in which
company allotted the share will be
A. faster than than
A. 5:2
B. slower than
B. 5:3
C. at the same rate as C. 2:1
D. A bond certificate must specify the D. 3:1
name of its holder
272. What is the definition of a promissory
268. PT DEMI purchased a machine for Rp. 15, note/note payable?
000, 000 on January 1, 20X1. PT DEMI A. An unconditional promise in writing
has incurred transportation costs of IDR made by one person, signed by the cre-
1, 300, 000 and spent IDR 2, 500, 000 ator, engaging to pay on demand, or at a
for machine installation. Then the machine fixed or determinable future time, a sum
was damaged and cost IDR 600, 000 for certain in money to order or to bearer.
repairs. Depreciation is charged at 10%
per year. What is the carrying value of B. A situation whereby the creditor for
the machine in PT DEMI’s statement of fi- economic or legal reasons related to the
nancial position at 31 December 20X1? debtor’s financial difficulties grants a con-
cession to the debtor that it would not oth-
A. Rp13.500.000 erwise consider.
B. Rp14.670.000 C. The issuance or granting of an equity
C. Rp16.920.000 interest to the creditor by the debtor to
satisfy fully or partially a debt unless the
D. Rp18.800.000 equity interest is granted pursuant to ex-
isting terms for converting the debt into
269. Guidance committee for governmental an equity interest.
and non-profit entities. treats accounting
a bit different from accrual accounting ba- D. None of the above.
sics. 273. Deferred gross profit on installment sales
A. GAAP is generally treated as a(n):
B. FASB A. deduction from installment accounts
receivable.
C. SEC
B. deduction from installment sales.
D. IASB
C. unearned revenue and classified as a
E. GASB current liability.

D. deduction from gross profit on sales. 279. According to PAS 39 as revised by PFRS
9, financial long-term liabilities not fair
274. Long-term debt that will mature within value through profit or loss are measured
1 year and will be converted into shares initially at
should be reported
A. present value
A. as a current liability.
B. current value
B. in a special section between liabilities
and equity. C. amortized cost
NARAYAN CHANGDER
C. as part current and part non-current. D. market value
D. as non-current if the refinancing 280. Preferred shareholders typically have the

agreement is completed by the end of the right to share in the distribution of divi-
year. dends before common shareholders.
275. Received payment of receivables from A. True

Mr. X amounting to IDR 200, 000.00. The B. False
correct journal for this transaction is
281. Placed on the face of the financial state-
A. Receivables (D) and Cash (K) IDR 200, ments
000.00
A. Parenthetical comments (modifying
B. Receivables (D) and Payables (K) IDR comments)
200, 000.00
B. Disclosure notes
C. Cash (D) and Receivables (K) IDR 200,
000.00 C. Supplemental schedules and tables
D. Cash (D) and Debt (K) IDR 200, 000.00 D. none of above
E. Cash (D) and Sales (K) IDR 200, 000.00 282. The depreciation charge calculated using
the diminishing balance method reflects:
276. What is not a short-term debt is:
A. an increasing pattern of benefits over
A. Notes receivable
the asset’s useful life.
B. Rental income received in advance
B. a decreasing pattern of benefits over
C. Salary debt the asset’s useful life.
D. Tax payable C. a constant pattern of benefits over the
asset’s useful life.
277. Obligations to suppliers of merchandise
or service purchased on account D. a fluctuating pattern of benefits over
the asset’s useful life.
A. Accounts Payable
B. Notes Payable 283. Refers to the process of including addi-
tional pertinent information in the financial
278. One example of liability. statements and accompanying notes
A. Stock Dividends unsettled A. Recognition
B. Accounts payable B. Measurement
C. Credit balances in customer accounts C. Disclosure
D. PPE D. none of above

284. Is the expense related to inventory 289. The general objectives of financial report-
ing are
A. COGS

A. Providing financial information about
B. Inventory
financial reporting entities in decision
making for capital providers
285. On February 6 2007, Toko REJEKI paid
IDR 34, 300, 000.00 for the purchase of B. Becomes a reference for calculating
merchandise on January 28 2007. Terms employee salaries
of sale and purchase 2/10; n/30. The pur- C. Makes it easier for the government to
chase price of the merchandise is: calculate the taxes that must be paid by
A. Rp 33.500.000, 00 companies
B. Rp 34.300.000, 00 D. As a basis for establishing accounting
standards
C. Rp 34.986.000, 00
D. Rp 35.000.000, 00 290. Long term assets include:
A. Supplies
286. Information is said to be relevant if it can
B. Investments (Over 12 months)
make a difference in the decisions made by
users of the information. Based on the Fi- C. Property, plant, land, Equipment, build-
nancial Reporting Conceptual Framework, ing
financial information can make a difference D. Intangible assets
in decision making when it has the follow-
E. Deferred income tax
ing values:(1) Estimated value (2) Compar-
ative value (3) Historical value (4) Confir- 291. Managers, Investors, Creditors, Govern-
matory value ment Agencies, and Non-Profit Organiza-
A. and (3) tions are
B. and (4) A. Parties that do not require accounting
C. and (4) B. Accounting partners
D. and (3) C. Parties who need accounting informa-

tion
287. Prepaid expenses are included in the ad- D. A neutral party with accounting
justment type
A. Accrual tate to Minsitthar Company pursuant to
B. Deferral a debt restructuring in full liquidation of
Leonard’s liability to Minsitthar.Carrying
288. Which of the following is not considered amount of liability liquidated P7, 500,
cash for financial reporting purposes? 000Carrying amount of real estate trans-
A. Petty cash funds and change funds ferred P6, 300, 000Fair value of real es-
tate transferred P5, 400, 000Under IFRS,
B. Money orders, certified checks, and what amount should be reported as gain
personal checks on extinguishment of liability?
C. Coin, currency, and available funds A. P1, 200, 000
D. Postdated checks and I.O.U.’s B. Ba, 100, 000

C. P900, 000 B. Real

D. Ba, 200, 000 C. Nominal
D. none of above
293. On January 1, 2007, Gregg Corp. ac-
quired a machine at a cost of $500, 000. 296. The following are examples of infrastruc-
It is to be depreciated on the straight- ture as broad category of product and ser-
line method over a five-year period with vices, except?
no residual value. Because of a book-
A. Hotels
NARAYAN CHANGDER
keeping error, no depreciation was rec-
ognized in Gregg’s 2007 financial state- B. Sports Facilities
ments. The oversight was discovered dur- C. Property Management
ing the preparation of Gregg’s 2008 finan-
cial statements. Depreciation expense on D. none of the choices
this machine for 2008 should be: 297. In certain cases, revenue is recognized at
A. $0. the completion of production even though
B. $100, 000. no sale has been made. Which of the fol-
lowing statements is not true?
C. $125, 000.
A. Examples involve precious metals or
D. $200, 000 farm equipment.
E. $500, 000 B. The products possess immediate mar-
ketability at quoted prices.
294. Deddy Manufacturing Co. ships merchan-
dise costing $34, 000 on consignment to C. No significant costs are involved in
Corbuzier Stores. Deddy pays $3, 500 selling the product.
of freight costs, and Corbuzier pays $1, D. All of these statements are true.
500 for local advertising costs that reim-
bursable from Deddy. By the end of the 298. On January 1, 2015, Honey Co. selling
period, Corbuzier has sold two-thirds of 12% bonds with a face value of $600,
the consigned merchandise for $38, 000 000. The bonds mature in 5 years and
cash. What is the journal entry at Cor- interest is paid every June 30 and De-
buzier to record the sales of consigned cember 31. The bonds were sold at a
merchandise? price of $646, 200 to yield 10%. Us-
ing the effective-interest method amorti-
A. Dr. Payable to Consignor $38, 000Cr.
zation method, interest expense for 2015
Cash $38, 000
is
B. Dr. Cash $38, 000Cr. Payable to Con-
A. $60, 000.
signor $38, 000
B. $64, 436.
C. Dr. Payable to Consignor $34, 000Cr.
Cash $34, 000 C. $64, 620
D. No entry D. $72, 000.
E. Dr. Cash $34, 000Cr. Payable to Con- 299. Paid advertising costs on Kompas daily
signor $34, 000 amounting to IDR 200, 000.00. The ap-
propriate petty cash journal for this trans-
295. Shares Application &Allotment A/c is a:- action if using the fluctuation find system
A. Personal method is

A. Petty cash (D) and Cash (K) IDR 200, B. Reserve capital
000.00
C. Issued capital

B. Cash (D) and petty cash (K) IDR 200,
000.00 D. Called up capital
C. Advertising costs (D) and petty cash 303. When treasury shares are purchased
(K) 200, 000.00 above the par value of the shares and the
D. Advertising costs (D) and cash (K) 200, cost method is used to record the treasury
000.00 shares, what account should be debited?
E. Cash (D) and advertising costs (K) IDR A. Treasury shares for the par value dan
200, 000.00 share premium for the excess of the pur-
chase price over the par value.
300. Gross profit method (gross margin
method) is useful for: B. share premium for the purchase price.
A. In determining cost of inventory that C. Treasury shares for the purchase
has been lost, destroyed, or stolen price.
B. In estimating inventory and COGS for D. Treasury shares for the par value dan
intern reports, avoiding the expense of a retained earnings for the excess of the
physical inventory account purchase price over the par value.
C. In auditor’s testing of the overall rea-
sonableness of inventory amounts re- 304. If a business ceases operations and liqui-
ported by clients dates, which of the following will be paid
last?
D. In budgeting and forecasting
E. Finding Market A. Owners.
B. General creditors.
301. Mike Corporation issues 10, 000 shares
of $12 par value preferred stock for $15 C. Employees.
cash per share. The journal entry to record
D. Creditors who have collateral for their
the issuance is:
loans.
A. Dr. Cash $150, 000Cr. Preferred Stock
$150, 000 305. Journal Entries-Adjusting recorded
B. Dr. Cash $150, 000Cr. Common Stock A. 24/7
$120, 000Cr. Paid-in Capital in Excess of
Par-Common Stock $30, 000 B. Monthly
C. Dr. Cash $120, 000Cr. Common Stock C. Year-end
$120, 000 D. none of above
D. Dr. Cash $150, 000Cr. Preferred Stock
$120, 000Cr. Paid-in Capital in Excess of 306. Represents the accumulated net income
Par-Preferred Stock $30, 000 reported by the company since its incep-
tion minus all dividends distributed to all
302. The portion of authorized capital which shareholders
can be called up only on the liquidation of
the company:- A. Retained Earnings
A. Authorised capital B. Paid in Capital

307. The company recorded purchases of CU9, C. Trade receivables IDR 500, 000, 000
801 in the purchases account and CU107 (D) and Capital Mr. Raka Rp. 500, 000,
in the cash account in the financial year 000 (K)
ended 31 January 20X4. Purchase accru- D. Cash IDR 500, 000, 000 (D) and Capital
als were Rp. 75 lower compared to the Mr. Raka Rp. 500, 000, 000 (K)
previous year, and prepayments were Rp.
60 lower. How much of the purchase was 310. The following are included in the cost of
included in selling expenses in the profit inventory, except:
or loss statement for the year ended 31
NARAYAN CHANGDER
A. Carriage costs
January 20X4?
B. Storage Fees
A. Rp9.893
C. Purchase Price
B. Rp9.923 D. Import Customs
C. Rp9.786
311. Roy Corporation owns machinery that
D. Rp9.908 cost $30, 000 when purchased on July 1,
2015. Depreciation has been recorded at
308. UK National Bank agrees to lend $160,
a rate of $2, 600 per year, resulting in a
000 on March 1, 2019, to Butter D Co.
balance in accumulated depreciation of $9,
if Butter D signs a $160, 000, 6 percent,
100 at December 2018. The machinery is
four-month note. Butter D prepares finan-
sold on Oct 1, 2019, for $20, 500. What
cial statements semiannually. At maturity
is the journal entry to record the sale?
(July 1), what is the journal entry in But-
ter D Co. to record payment of the note A. Dr. Cash $20, 500Cr. Machinery $20,
and accrued interest? 500
A. Dr. Interest expense $160, 000Cr. B. Dr. Cash $20, 500Dr. Accumulated
Cash $160, 000 depreciation 11, 050Cr. Machinery $30,
000Cr. Gain on sale $1, 050
B. Dr. Interest payable $160, 000Cr.
Cash $160, 000 C. Dr. Cash $30, 000Cr. Machinery $30,
000
C. Dr. Interest expense $163, 200Cr.
D. Dr. Cash $20, 500Dr. Accumulated de-
Cash $163, 200
preciation $9, 500Cr. Machinery $30, 000
D. Dr. Notes payable $160, 000Dr. Inter-
E. None of these
est payable $3, 200Cr. Cash $163, 200
E. Dr. Notes payable $160, 000Dr. Inter- 312. Compromising layers of dollar value from
est payable $9, 600Cr. Cash $169, 600 different years. Inventory is viewed as
a quantity of value rather than a physical
309. On January 1 2012 Mr. Raka deposited quantity of goods.
money into the “OKE PUNYA” Workshop A. LIFO Inventory Pools
amounting to Rp. 500, 000, 000, -as cap-
B. Dollar-Value LIFO
ital contribution. The journal entry for the
above transaction is 313. Accounting principal equation
A. Cash IDR 500, 000, 000 (D) and De- A. Assets = Liabilities + Stockholder Eq-
posit IDR 500, 000, 000 (K) uity
B. Debt IDR 500, 000, 000 (D) and Capital B. Assets = Liabilities-Stockholder Eq-
Mr. Raka Rp. 500, 000, 000 (K) uity

C. Assets + Liabilities = Stockholder Eq- A. 0 baht

uity B. 9, 600 baht

D. Assets = Liabilities x Stockholder Eq-
C. 38, 400 baht
uity
D. 76, 800 baht
314. What increases when debited?
A. Dividends 319. Discounts that sellers give to buyers as
soon as they agree to buy and sell prod-
B. Expenses ucts. It is usually set as a percentage of
C. Assets the originally set price, called
D. Liabilities A. trade discount
E. Equity B. Partner discount
315. Who publishes Accounting Standards in C. cash discount
Indonesia? D. credit discount
A. Indonesian Accountants Association
320. Pink, Inc. issued 6, 000 shares of stock
B. Indonesia stock exchange at a stated value of $10 per share. The
C. Indonesian Association of Public Ac- total issue of stock sold for $12 per share.
countants What is the journal entry to record this
transaction?
D. American Institute of Certified Public
Accountants A. Dr. Cash $60, 000Cr. Common Stock
$60, 000
316. Grouping inventory units into groups
based on physical similarities of the indi- B. Dr. Cash $72, 000Cr. Common Stock
vidual units. Individual unit costs are con- $60, 000Cr. Paid-in Capital in Excess of
verted to an average cost for the group Stated Value-Common Stock $12, 000
A. LIFO Inventory Pools C. Dr. Cash $12, 000Cr. Common Stock
$12, 000
B. Dollar-Value LIFO
D. Dr. Cash $72, 000Cr. Common Stock
317. What types of partnerships have limited $72, 000
liability partners?
321. What does amortized mean?
A. Juristic General Partnership
B. general partnership A. infinite useful life
C. limited partnership B. finite useful life
D. All correct. 322. Salon “Pesona Ayu” has the following

data:Assets Rp. 50, 000, 000.00 ; Debt
318. Joe and James have agreed to record
Rp. 12, 500, 000.00. Thus, the com-
equal initial interests. Although Joe in-
pany’s equity is
vested 240, 000 baht in cash, James
invested 201, 600 baht in cash. The A. Rp. 50.000.000, 00
five partners use the goodwill method to B. Rp. 37.500.000, 00
record their initial capital. What is the
amount of goodwill that must be recorded C. Rp. 17.500.000, 00
in the James capital increase account? D. p. 12.500.000, 00

323. The basic quality in financial reporting D. Due to human error like missing a
is record, balance sheet have the potential
A. Predictive and relevant value of being wrong
B. Timely and understandable E. Balance sheet is not very organized
C. Comparable and verifiable 329. Long term investments include

D. Relevant and honest presentation A. Current assets
324. Material error, restate financials B. Non-current Assets
NARAYAN CHANGDER
A. Prospectively C. Non-current Liabilities
B. Retrospectively D. Non-current Equity
325. ltd company took over assets worth Rs. 330. The net carrying amount of non-current
10, 00, 000 and liabilities of Rs. 3, 00, assets was CU200, 000 at 1 August 20X0.
000 for purchase consideration worth Rs. During the financial year ended 31 July
12, 00, 000 how much amount will be deb- 20X1, a non-current asset was sold for Rp.
ited to goodwill account 25, 000, of which the company suffered a
loss of Rp. 5, 000. Depreciation expense
A. Rs. 10, 00, 000 for the year was CU20, 000. What was
B. Rs. 5, 00, 000 the carrying amount of non-current assets
C. Rs. 3, 00, 000 at 31 July 20X1?
D. Rs. 12, 00, 000 A. Rp150.000

B. Rp155.000
326. Changing Depreciation
C. Rp160.000
A. Prospectively
D. Rp180.000
B. Retrospectively
331. On March 1 (Year 1), ABC Company is-
327. The process of associating numerical ac- sued a P90, 000, 8% interest-bearing
counts with the elements note payable from a financial institution.
A. Recognition Interest and principal are payable after 1
B. Measurement year. How much is the interest expense
for Year 1?
C. Disclosure
A. 7, 200
D. none of above
B. 5, 400
328. Balance sheet limitations C. 6, 000
A. Balance sheet usually does not directly D. 7, 000
measure the company’s market value
B. Many assets are measured at their his- 332. Property, plant, and equipment
torical costs rather than the amounts for A. Land
which the assets could be sold B. Buildings and Furniture
C. Many aspects of a company may repre- C. Equipment and Machinery
sent valuable resources, but theses items
are not recorded as assets in the balance D. Autos and trucks
sheet E. Mineral Deposits

333. International standards board for coun- July 1. The first interest payment journal
tries around the US on July 1 2015 includes

A. GAAP A. debit to Interest Expense for $531,
B. FASB 178.
C. SEC B. credit to Bonds Payable for $1, 062,
355.
D. IASB
C. debit to Cash for $600, 000.
E. GASB
D. credit to Interest Expense for $442,
334. If cost is lower than NRV 648.
A. Reduce inventory from its already
recorded purchase cost to the lower NRV 339. The bank account in the ledger shows
a balance of IDR 1, 138 on December
B. no adjusting entry needed 31. When the company compared this bal-
335. Purpose of a financial statement ance with the bank statement on the same
date, it discovered the following discrep-
A. Reports a company’s financial position ancy:What was the correct balance on the
at a point in time bank account in the general ledger on De-
B. Provide an organized list of assets, li- cember 31?
abilities, and equity-grouped according to A. Rp1.060
common characteristics
B. Rp1.078
C. Measures the company’s market value
C. Rp1.276
D. Brings power to the accountants
D. Rp1.527
336. PS shareholders participate wit common
stock shareholders in dividends in excess 340. In an accounting period, if an expense
of a specific amount item has arisen and been utilized, but has
A. Cumulative PS not been paid or recorded in the account-
ing system, then the adjusting journal en-
B. Noncumulative PS try that needs to be made at the end of
C. Participating PS the period is
D. Nonparticipating PS A. Liability accounts and asset accounts
337. Land acquired and held for speculation is B. Asset accounts and expense accounts
classified as an: C. Contra asset accounts and expense ac-
A. Inventory. counts
B. Investment. D. Liability accounts and expense ac-
counts
C. Liabilities.
D. None of these 341. The cornerstone of good internal control
for cash Which measures should be taken?
338. On January 1, 2015, Pulgoso Company
sold bonds $10, 000, 000 at 10% nom- A. Income and expenses are recorded.
inal interest, receiving cash $8, 852, and can be verified together
960 (12% market interest). Interest is B. Take the cash received Deposit in the
payable semiannually on January 1 and bank every day and pay expenses by check

C. A bank balance sheet is prepared and A. the fair value of the property, goods,
a petty cash limit is set for small ex- or services.
penses.
B. the fair value of the note.
D. All of the above are correct.
C. using an imputed interest rate to dis-
342. When is there a substantial modification count all future payments on the note.
of terms of an existing financial liability? D. All of these answer choices are cor-
A. More than 10% of the present value of rect.
NARAYAN CHANGDER
the new liability
346. Steps in changing inventory method
B. At least 10% of the present value of the though the LIFO Method
new liability
A. Revise Comparative statements
C. More than 10% of the carrying amount
of the old liability B. Adjust affected accounts
D. At least 10% of the carrying amount of C. Disclose additional information
the old liability D. The LIFO Method is used from the
point the change is adopted and that pe-
343. The entity recognizes the purchase of a
riod’s beginning balance is considered as
calculator worth 500 thousand as an ad-
the base year inventory
ministration fee even though the calcula-
tor has a useful life of more than one 347. Seller’s location. Buyer has rights to in-
year. What considerations underlie the ac- ventory as soon as items are shipped (put)
counting treatment? The entity recognizes in truck
the purchase of a calculator for 500 thou-
sand as an administrative cost because the A. F.O.B. Shipping point
calculator has benefits for more than one B. F.O.B. Destination point
year. What considerations underlie this ac-
counting treatment? 348. The following is an account with a normal
A. Materiality debit balance
B. Going concern A. Assets and Liabilities
C. Reliability B. Liability and equity
D. Relevance C. Assets and Equity
344. The cost of an intangible asset includes D. Assets and Liabilities

all of the following except.
349. Adjusting journal to record accrued
A. purchase price. wages:
B. legal fees A. Debit salary expenses and credit cash
C. other incidental expenses. B. Salary debt is debited and salary bur-
D. all of these are included. den is credited
C. Salary debt is debited and cash is cred-
345. Ketika suatu note payable diterbitkan
ited
dengan memperoleh property, goods, or
services, the present value of the note D. Salary expenses are debited and
diukur dengan salary arrears are credited

350. The Company’s Leverage is 2.5. This is a C. Dr. Amortization Expense $200, 000Cr.
healthy company Patents $200, 000

A. True D. Dr. Amortization Expense $10, 000Cr.
B. False Patents $10, 000
E. Dr. Patents $10, 000Cr. Cash $10, 000
351. 4 basic finical statements
A. Income Statement 355. Statement of financial position only for
shareholders of Jing Jai Company Lim-
B. Retained Earnings
ited as of March 31, 2020, as follows:2,
C. Balance Sheet 000 preferred shares, value 50 baht each,
D. Statement of Cash Flows 100, 000 baht, common shares 1, 500
shares, value 100 baht each, 150, 000
E. Statement of Shareholders’ Equity
baht, excess value of preferred shares
352. An example of a correction of an error in 10, 000 baht, profit Accumulated 40, 000
previously issued financial statements is a baht Conversion conditions:10 preferred
change: shares, convertible to 7 common shares.
There are 400 preferred shares sharehold-
A. from the FIFO method of inventory val-
ers requesting conversion. Please show
uation to the LIFO method.
the accounting records as of the conversion
B. in the service life of plant assets, date.
based on changes in the economic envi-
ronment. A. Dr. Preferred share capital 20, 000 Cr.
Ordinary share capital 20, 000
C. from the cash basis of accounting to
the accrual basis of accounting. B. Dr. Preferred share capital 20, 000
Surplus value of preferred shares 2, 000
D. in the tax assessment related to a Cr. Common share capital 22, 000
prior period.
C. Dr. Preferred share capital 20, 000
353. Classifications of Stockholder Equity Premium on preferred shares 2, 000 Re-
A. OCI tained earnings 6, 000 Cr. Common share
capital 28, 000
B. AOC i
D. Dr. Preferred share capital 20, 000
C. Paid-In Capital
Surplus on preferred shares 2, 000 Cr. Or-
D. Retained Earnings dinary share capital 20, 000 Surplus on
E. Treasury Stock common shares 2, 000
E. Dr. Ordinary share capital 20, 000 Cr.
354. Moly Co. incurs $200, 000 in legal costs
Preferred share capital 20, 000
on January 1, 2016, to successfully de-
fend a patent. The patent’s useful life is 356. A non-current asset was purchased on
20 years, amortized on a straight-line ba- the first day ofan accounting period, 1 Jan-
sis. What is the journal entry to record the uary 2018 for P34, 000 anddepreciated
legal fees? by 20% per annum using the reducingbal-
A. Dr. Patents $200, 000Cr. Account ance method. On 30 June 2020 the asset
Payable $200, 000 was sold, realizing a loss on disposal of P2,
B. Dr. Patents $200, 000Cr. Cash $200, 100. What were the proceeds of sale?
000 A. P14, 900

B. P17, 484 361. Which of the following is not a reason

why revenue is recognized at time of sale?
C. For 19, 660
A. Realization has occurred.
D. P21, 684
B. The sale is the critical event.
357. Debt is C. Title legally passes from seller to
A. Assets buyer.
B. Liabilities D. All of these are reasons to recognize
NARAYAN CHANGDER
revenue at time of sale.
C. Equity
362. Goods in the form of raw materials
D. Financial Statements that will be processed into finished goods
are
358. What is an acquisition of a group of as-
sets for a single sum? A. Merchandise inventory
A. multiple sum B. Work on proces inventory

C. Inventory system’
B. group sum
D. Finishing goods inventory
C. lump sum
E. Raw material inventory
D. none of above
363. Non-Controlling Interests (Minority Inter-
359. Monsters Inc. declared a $160, 000 ests) are disclosed in the statement of
cash dividend. The Company has 6, 000 changes in equity section
shares of preference, 7%, $100 par value A. Assets
cumulative preference shares outstanding.
There is a dividend in arrears for one year B. Short-term liabilities
for preference shares. How much cash will C. Long Term Liabilities
be distributed to ordinary shareholders? D. Equity
A. $76, 000.
364. The following are not included in the
B. $84, 000. COGS calculation:
C. $118, 000 A. Ending Inventory
D. There isn’t any B. Purchase Discount
C. Freight out
360. IFRS is the basis of accounting standards
D. Freight in
used in Indonesia. IFRS stands for
A. International Federation of Reporting 365. Lease term refers to the cancelable period
Services of lease together with:a. periods covered
by an option to renew if the lessee is rea-
B. Independent Financial Reporting Stan- sonably certain to exercise that optionb.
dards periods covered by an option to terminate
C. Integrated Financial Reporting Ser- the lease if the lessee is reasonably certain
vices NOT to exercise that option
D. International Financial Reporting Stan- A. TRUE
dards B. FALSE

366. Debt Service Coverage ratio (DSCR) is

2.13. This is a sign of good health?

A. True
B. False
A. $883, 560.
367. Journal Entries-Closing recorded
B. $884, 820.
A. 24/7
C. $889, 560.
B. Monthly
D. $999, 600.
C. Year-end
D. none of above 371. On December 31, 2014, the following
is PT Salvador’s balance:Bonds Payable
368. What type of dividend does not reduce
$1, 380, 000 Interest Payable 37, 000
equity?
If the bonds are redeemed on January 1,
A. Cash dividends 2015 for $1, 530, 000 (after interest pay-
B. Share dividends ments), how much does Salvador report as
loss on extinguishment?
C. Property dividends
D. Liquidating dividends A. $37, 000
B. $113, 000
369. Cupcake Co. started 2020 with P94, 000
ofmerchandise inventory on hand. Dur- C. $150, 000
ing 2020, P400, 000 in merchandise was D. $187, 000
purchased on accountwith credit terms of
1/15, n/45. All discounts weretaken. 372. Lifo reserves formula
Purchases were all made f.o.b. shipping
A. Inventory Account balance under lifo
point.Cupcake paid freight charges of P7,
for external reporting and income tax pur-
500. Merchandisewith an invoice amount
poses minus Inventory account balance
of P5, 000 was returned forcredit. Cost
under FIFO and average cost used to
of goods sold for the year was P380,
maintain internal records
000.Cupcake uses a perpetual inventory
system. What is ending inventory as- B. Inventory Account balance under lifo
suming Cupcake uses thegross method to for internal reporting and income tax pur-
record purchases? poses minus Inventory account balance
A. P112, 490 under FIFO and average cost used to
maintain internal records
B. P112, 550
C. Inventory Account balance under lifo
C. P116, 500
for internal reporting and income tax pur-
D. P120, 300 poses plus Inventory account balance un-
der FIFO and average cost used to main-
370. On January 1, 2015, Ellison Co. is-
tain internal records
sued bonds with a face value of $1, 000,
000, 8 years, and nominal interest of 6%, D. Inventory Account balance under lifo
payable semiannually on June 30 and De- for external reporting and income tax pur-
cember 31. Bonds were sold at a mar- poses plus Inventory account balance un-
ket/effective interest rate of 8%. hence, der FIFO and average cost used to main-
the bond issue price tain internal records

373. Close the temporary accounts to retained 378. Internal Users

earnings and prepare a post-closing trial A. Managers
balance.
B. Sales team
A. During the Accounting Period
C. Investors
B. At the end of the Accounting Period
D. Creditors
C. At the end of the year
E. Government
D. none of above
NARAYAN CHANGDER
379. Sales will be reported in the Financial
374. Naruko Company received a P1, 800, Report
000 subsidy fromthe government to pur-
chase manufacturing equipmenton January A. Income Statement
2, 2020. The equipment has a cost ofP3, B. Retained Earnings Statement
000, 000, a useful life of five years, and
no salvagevalue. Naruko depreciates the C. Statement of Financial Position
equipment using sumof-the-years’ digits D. Statement of Cash Flows
method. If Naruko chooses to account for
the grant as deferred income, the grant in- 380. PT JAYA sold an air conditioner worth Rp.
come to be recognized in 2020 is 5, 500, 000 to PT ABADI on 1 October
20X7, which will open a new branch. The
A. Nil
air conditioner has a basic price of IDR 4,
B. Give 0, 000 250, 000. Based on the agreement, PT
C. P400, 000 JAYA will hold the air conditioner until the
new PT ABADI branch is ready for use.
D. P600, 000 Ownership transfers to PT ABADI when
the agreement is signed. The journal en-
375. A company’s Investing cash flows are
tries that PT JAYA must make on October
negative. This is a sign of ill-health, defi-
1, 20X7 are:
nitely.
A. No journal
A. True
B.
B. False
C. Cash (D) 5, 500, 000 Cost of goods sold
376. Which type of accounting change should (DI) 4, 250, 000 Sales revenue (K) 5, 500,
always be accounted for in current and fu- 000 inventory (K) 4, 250, 000
ture periods?
D. Cash (D) 5, 500, 000Cost of goods sold
A. Change in accounting principle (D) 4, 250, 000Sales revenue (K) 5, 500,
B. Change in reporting entity 000Air conditioning (K) 4, 250, 000
C. Change in accounting estimate 381. Jai Jai Company Limited has transactions
D. Correction of an error regarding common stocks during 2020 as
follows:1 Jan. Number of shares remain-
377. Recording RevenueTotal Sales price paid ing at the beginning of the period 100,
by the customers 000 shares. 1 Apr. Issued additional
20, 000 shares for sale. 1 May. An-
A. Agent nounced dividend payment of 20% of the
B. Principal number of common shares. What is the

weighted average number of shares out- 386. The price that would be received to sell
standing from January 1 to April 1? assets or paid to transfer a liability in an
orderly transaction between market par-

A. 20, 000 shares
ticipants at the measurement date
B. 25, 000 shares
A. Historical Cost
C. 25, 500 shares
B. Net realizable value
D. 30, 000 shares
C. Current cost
E. 32, 000 shares
D. Present value
382. Can you see the trial question? E. Fair value
A. Yes
387. Non-current assets held for sale are pre-
B. No sented as a group
383. Expense recognition approaches A. Non-current liabilities
A. Earnings process is judged to be com- B. Current assets
plete or virtually complete C. Equity
B. In the period incurred, without regard D. Fixed assets
to related revenue
388. Expenses for setting up a company What
C. Based on an exact cause-and effect re- type of item is this considered? And what
lationship are the procedures?
D. Associating an expensed with the rev- A. Considered an asset and amortized ac-
enues recognized in the same time period cording to its useful life.
E. Systematic and rational allocation to B. Considered an asset and fully amor-
specific time periods tized within 5 years.
384. U.S. GAAP requires reporting certain ge- C. It is considered an expense in the first
ographic information including year of operation.
A. Revenues from external customers D. cannot be considered an expense of
the business Because it is an event that oc-
B. Revenues from internal customers
curred before the date the company was
C. Long lived assets, long term customer legally established.
relationships, and other policies
E. Businesses can choose procedures
D. Short term assets, short term cus- that are appropriate for their business.
tomer relationships, and other policies.
389. What is meant by Share Capital With-
385. The amount of cash into which an asset is drawn from Circulation (Treasury Stock)
expected to be converted into the ordinary is
course of business A. The number of shares and their nomi-
A. Historical Cost nal value that were once in circulation and
B. Net realizable value then repurchased (withdrawn from circu-
lation) by the PT concerned.
C. Current cost
B. The number of shares that have been
D. Present value ordered to purchase by a particular party.
E. Fair value The shares ordered will only be handed

over to the buyer after the share price has 394. Perpetual Inventory System:
been paid.
A. Continually adjust the inventory ac-
C. The number of shares and their nom- count for each change in inventory caused
inal value that can be issued is in accor- by a:Purchase, sale, or return of inventory
dance with the deed of establishment of
B. Continually adjust the cost of goods
the PT concerned.
sold account each time goods are:Sold or
D. The number of shares for which autho- returned by a customer
rization has been issued but which have
NARAYAN CHANGDER
C. Allows Management to:-Determine
not yet been sold.
goods on hand on any date-Determine the
390. Guaranteeing sustainable business conti- number of items sold during a period
nuity in the future is the fulfillment of basic D. Adjust the inventory account and
accounting assumptions, namely: records cost of sold only at the end of each
A. economic entity reporting period
B. going concern E. Records merchandise purchases, pur-
chase returns, purchase discounts, and
C. monetary freight-in in temporary accounts
D. periodicity
395. The following data has been taken from
391. 3 Trial Balances the payroll of a company for the month of
A. Unadjusted February 20X1. The salary expenses for
the month are:
B. Adjusted (Financial Statement)
A. 50 juta
C. Post-Closing
B. 56 jute
D. Transactions
C. 74.5 juta
E. Income Statement
D. 80.5 juta
392. The following are not considered sepa-
rate performance obligations 396. It is known to be the language of busi-
ness.
A. Prepayments
A. Accounting
B. Quality-assurance warranties
C. Right of return B. Financial Accounting
D. Options C. Money
E. Warranties D. Financial Statements
393. Recognition of liabilities means 397. Which of the following is not a disadvan-
tage of the corporate business form?
A. Include debt items as part of the state-
ment of financial position. A. Separate ownership and management.
B. being responsible B. Government regulation.
C. Keeping documents C. Continuous life.
D. All correct. D. Additional taxes.

398. At the beginning of 2016, Tiktok Com- E. Dr. Cash $3, 920Cr. Accounts receiv-
pany had retained earnings of $150, 000. able $3, 920
During the year net income was reported

as $75, 000, selling treasury shares with 402. Cash is also called:
a gain of $27, 000, declaring a cash divi- A. Bank Drafts
dend of $45, 000, and declaring and issu-
ing a small share dividend of 1, 500 shares B. Cashier checks
($10 par value) when the fair value of the C. Money Order
shares was $30 per share. The amount of
D. Cash equivalents
retained earnings available for dividends
at the end of 2016 is: E. Dollars
A. $184, 500. 403. How should a note payable designated at
B. $162, 000. fair value through profit or loss be mea-
C. $157, 500. sured?
D. $165, 000. A. Face amount
B. Fair value plus transaction cost
399. Equipment-new = fair value + cash paid
A. true C. Fair value
B. false D. Fair value minus transaction cost
400. External Users 404. Dallas Company purchased a tooling ma-

chine in 2010for P600, 000. The machine
A. Managers
was being depreciated onthe straight-line
B. Customers or Vendors method over an estimated useful lifeof 20
C. Investors years with no salvage value. At the be-
D. Creditors ginningof 2020, Dallas paid P120, 000
to overhaul themachine. As a result of
E. Government this improvement, Dallasestimated that
401. On Jul 5, Jeff Company sold to Bezos the useful life of the machine would beex-
Company merchandise having a sale price tended an additional 5 years. The depreci-
of $4, 000 with terms of 2/10, n/60, ation to be recognized in 2020 is
f.o.b. shipping point. On Jul 14, the com- A. P28, 000
pany received a check for the balance due
B. 000 spots
from Bezos Company. What is the journal
entries at Jeff Company books to records C. P20, 000
sales using the gross method at Jul 14? D. P15, 000
A. Dr. Cash $3, 920Dr. Sales discounts
$80Cr. Accounts receivable $4, 000 405. Revenue recognition criteria
B. Dr. Accounts receivable $3, 920Cr. A. Earnings process is judged to be com-
Sales $3, 920 plete or virtually complete
C. Dr. Cash $4, 800Cr. Accounts receiv- B. Reasonable certainty as to the col-
able $4, 800 lectability of the asset to be received
D. Dr. Cash $4, 000Dr. Sales discounts C. Based on an exact cause-and effect re-
$80Cr. Accounts receivable $4, 080 lationship

D. Associating an expensed with the rev- D. Transactions are permissible as long

enues recognized in the same time period as they are not illegal and prohibited.
E. Systematic and rational allocation to Transactions are permissible as long as
specific time periods they are not illegal and prohibited
406. Adjustments for unpaid expenses fall into 410. Cash will never get affected by an ad-
the category justed entry process
A. Accrued Revenue A. True
NARAYAN CHANGDER
B. Accrued Expense B. False
C. Prepaid Expense
411. The criteria for recognition of revenue at
D. Unearned Revenue the completion of production of precious
407. Goods on Consignment for inventory metals and farm products include:
owner ship depends on A. an established market with quoted
A. Ownership of goods prices.
B. Consignee B. low additional costs of completion and
selling.
C. Consignor
D. Reduction of purchases C. units are interchangeable.
D. all of these.
408. In a perpetual inventory system, pur-
chase returns affect which accounts? 412. When bonds are issued between inter-
A. Reduction in both inventory and pur- est dates, the journal entries made are in-
chases cluded
B. Reduction in just purchase A. debit to Interest Payable.
C. Increase in cash, decrease in pur- B. credit to Interest Receivable
chases
C. credit to Interest Expense.
D. Increase to both inventory and pur-
chases D. credit to Unearned Interest.
409. The following is not a basic principle in 413. ABC, Inc. issues bonds with a maturity
sharia transactions value of $200, 000 and a maturity of 10
A. Transactions are based on the princi- years after the date of issuance. If bonds
ple of mutual understanding and mutual are issued at a premium
pleasureTransaksi didasarkan pada prin- A. market rate is greater than the nomi-
sip saling paham dan saling ridho nal rate
B. Transaction freedom of transaction as B. nominal rate is greater than the mar-
long as it is halal and thoyib Transaction ket rate
freedom of transaction as long as it is ha-
lal and thoyib C. market rate is the same as nominal
rate
C. Transactions are based on the princi-
ple of mudharabahTransaksi didasarkan D. There is no relationship between mar-
prinsip mudharabah ket rate and nominal rate

414. The revenue recognition principle pro- rate for similar note is 12%. PV of 1 at
vides that revenue is recognized when: 12% for 3 periods is 0.7118. PV of an
ordinary annuity of 1 at 12% periods us

A. it is realized.
2.4018. PV of an annuity due at 12% for
B. it is realizable. 3 period us 2.6900. How much is PV of
C. it is realized or realizable and it is the note payable at the end of Year 2
earned. A. 44, 640
D. none of these. B. 28, 500
415. Fright-in costs to get inventory to the C. 84, 500
location of sale in a perpetual system is D. 41, 590
added to:
A. Freight cost expense account 419. Current liabilities are recorded at
amount.
B. Freight-in temporary account
A. face
C. Inventory accounts
B. discounted
D. Purchase account
C. future
416. Practice and body of knowledge con- D. replacement
cerned primarily with methods for record-
ing transactions, keeping financial records, 420. Assuming there is no preferred stock,
performing internal audits, reporting and book value per share of common stock is
analyzing financial information to the man- derived by which of the following:
agement. A. Stockholders’ equity divided by the
A. Financial Accounting number of shares authorized.
B. Financial Information B. Stockholders’ equity divided by the
C. Accounting number of shares outstanding.
D. None of the choices C. Net income divided by the number of

shares outstanding.
417. The following are the accounts contained D. Net income divided by the number of
in the Statement of Financial Position, ex- shares authorized.
cept
A. Assets 421. Rent revenue collected one year in ad-
vance shall be accounted as
B. Burden
A. revenue in the year collected
C. Liabilities
B. current liability
D. Equity
C. deferred income
418. Miya Company issued a 3-year, P 150, D. separate item in the Shareholders’ eq-
000 face value non interest-bearing note uity
payable in exchange for a new machinery
on January 1 (Year 1). The note is payable 422. Patrick sold 1, 000 shares of treasury
in 3 equal annual installments every Jan- for $15 per share. The cost for the shares
uary 1, starting year 1. No cash price of was $10. The journal entry to record this
the machinery is available. The prevailing transaction is:

A. Dr. Cash $15, 000Cr. Treasury Stock 426. What is the bank balance statement
$15, 000 made for?
B. Dr. Cash $15, 000Cr. Preferred Stock A. Verify the accuracy of current bank de-
$10, 000Cr. Paid-in Capital from Pre- posits.
ferred Stock $5, 000 B. Verify the authenticity of bank deposits
C. Dr. Cash $10, 000Cr. Treasury Stock in the form of fixed deposits.
$10, 000
C. Verify the authenticity of savings bank
D. Dr. Cash $15, 000Cr. Treasury Stock
NARAYAN CHANGDER
deposits.
$10, 000Cr. Paid-in Capital from Treasury
D. All correct.
Stock $5, 000
427. What is a natural resource?
423. Lease incentives granted by the lessor
shall be included in determining the fixed A. oil, gas, timber tracts, mineral de-
lease payments. posits
A. TRUE B. initial cost
B. FALSE 428. Do not involve an exchange transaction
424. Jai Jai Company Limited has 20, 000 is- with another entity
sued and paid-up common shares with a A. External Events
B. Internal Events
preferred shares with a value of 100 baht
per share. The last cash dividend was paid 429. Neutrality in the qualitative characteris-
in 2017. Later in 2020, it announced a to- tics of financial statements means
tal dividend payment of 350, 000. Baht
A. Companies must choose information
in the case of preferred shares It is a non-
to present to one party over another, such
accumulative type. How much dividends
as tax reports
will common shares receive?
A. 350, 000 baht B. Companies may choose information to
present to one party rather than another
B. 250, 000 baht
C. Companies do not prefer information
C. 230, 000 baht to be presented to one party over another
D. 120, 000 baht D. All answers are wrong
E. 180, 000 baht
430. Trump Inc. sold 14, 000 annual subscrip-
425. Sony Inc. borrowed $280, 000 on April tions on July 1, 2018, for $20 each. What
1. The note requires interest at 12% and is the journal entry at July 1, 2018?
principal to be paid in one year. How much
A. Dr. Cash $14, 000Cr. Unearned rev-
interest is recognized for the period from
enue $14, 000
April 1 to December 31?
B. Dr. Unearned revenue $140, 000Cr.
A. $0.
Subscription revenue $140, 000
B. $33, 600.
C. Dr. Cash $280, 000Cr. Unearned rev-
C. $8, 400. enue $280, 000
D. $25, 200. D. Dr. Unearned revenue $14, 000Cr.
E. $22, 500 Subscription revenue $14, 000

E. Dr. Unearned revenue $280, 000Cr. C. Past Prices

Cash $280, 000 D. All wrong

431. Which of the following items affects di-
435. Estimate the costs of satisfying a perfor-
luted earnings per share?
mance obligation and then add an appro-
A. Redeemable preferred shares priate profit margin
B. Convertible preferred shares A. Adjusted market assessment ap-
C. Non-cumulative preferred shares proach
D. Participatory preferred shares B. Expected cost plus margin approach
E. Cumulative preferred shares C. Residual Approach
D. none of above
432. Involve the acquisition and sale of long
term assets and non operating investment 436. On the date of issuance of the grant of
assets rights to the employees/executives of the
A. Operating Activity company The accountant records the price
of the option as the difference between
the market price of the stock and the price
C. Financial Activity at which the option was exercised. and
D. none of above debit in which of the following accounts?
A. Retained earnings account (If rights
433. Which of the following statements is cor-
are granted in return for past year’s work)
rect?
B. Deferred performance compensation
A. IFRS uses fair value in all valuation
account (If rights are granted in return for
of its assets and liabilitiesIFRS uses fair
past year’s work)
value in all valuation of its assets and lia-
bilities C. Work performance compensation ac-
count (If rights are granted in return for
B. In US GAAP there is no valuation of as-
past year’s work)
sets using fair value. In US GAAP there is
no valuation of assets using fair value D. Surplus account from grant of rights
(If rights are granted in return for past
C. IFRS uses fair value judgments more
year’s work)
than US GAAPIFRS uses fair value judg-
ments more than US GAAP E. Deferred performance compensation
D. In IFRS valuation using historical value account (If rights are granted in return for
is not permitted. In IFRS valuation using the current year’s performance)
historical value is not permitted
437. Situations that can cause a reduced abil-
434. The amount that can be received when ity to sell
selling an asset or paying a liability be- A. Inventory Damage
tween parties who have sufficient knowl-
B. Physical deterioration
edge of an arm’s length transaction is
called C. Obsolescence
A. Historical costs D. Change in price levels
B. Fair value E. Purchasing inventory

438. Provided that all or part of the PS divi- 442. What type of partnership has partners
dend not paid in any year accumulates and with unlimited liability?
must be paid in the future BEFORE any divi- A. Juristic General Partnership
dends can be paid to common shareholders
B. general partnership
A. Cumulative PS
C. limited partnership
B. Noncumulative PS
D. All correct.
C. Participating PS
443. Provides protection beyond the manufac-
NARAYAN CHANGDER
D. Nonparticipating PS ture’s quality-assurance
439. It is an artificial being created by opera- A. Extended Warranty
tion of law, having the rights of succession B. Option
and the powers, attributes and properties
expressly authorized by law or incident to 444. In practice (public or private), a good ac-
its existence. countant will make adjusting entries and
produce internal financial statements:
A. Sole Proprietorship
A. Annually
B. Partnership
B. Quarterly
C. Corporation C. Monthly
D. Cooperative D. Weekly
440. General Recognition criteria 445. Which statement is correct regarding the
A. Definition call for payment of shares according to
Thai law?
B. Measurability
A. The first installment must be collected
C. Relevance at least 25% of the share value. along with
D. Reliability all excess value
E. Accurate B. The first installment must be collected
at least 25% of the share value and pre-
441. Hilary Inc. sold 15, 000 annual subscrip- mium.
tions on July 1, 2018, for $24 each. What C. The first installment must be collected
is the annual adjusting entry at Dec 31, at least 50% of the share value. along with
2018? all excess value
A. Dr. Cash $360, 000Cr. Unearned rev- D. Payment must be made in full at one
enue $360, 000 time.
B. Dr. Unearned revenue $180, 000Cr. E. The law does not specify Therefore,
Subscription revenue $180, 000 payment can be made in any amount. It
depends on the policy of each company.
C. Dr. Cash $15, 000Cr. Unearned rev-
enue $15, 000 446. Granted to the customer to receive addi-
D. Dr. Unearned revenue $360, 000Cr. tional goods or services at no cost or at a
Subscription revenue $360, 000 discount as a performance obligation
E. Dr. Unearned revenue $180, 000Cr. A. Extended Warranty
Cash $180, 000 B. Option

447. The principal disadvantage of using the 452. Investments that are highly liquid, short-
percentage-of-completion method of rec- term, that can be quickly converted into
ognizing revenue from long-term contracts cash in a determinable amount and have an

is that it: insignificant risk of changes in value, are
A. is unacceptable for income tax pur- called:
poses. A. What
B. gives results based upon estimates B. Setara kas
which may be subject to considerable un- C. Short term investment
certainty.
D. Long term investment
C. is likely to assign a small amount of
revenue to a period during which much 453. Omni Company purchased a new vehicle
revenue was actually earned. on January 1, 2012. The cost of the ve-
hicle was IDR 200, 000, 000, it had been
D. none of these. used for five years, and the residual value
was IDR 40, 000, 000. Omni has financial
448. It is the activity of infrastructure as a
statements ending December 31. If Omni
broad category of product and services.
depreciated the truck using the double de-
A. Selling the utilization of infrastructure clining balance method, how much should
B. Buying and Selling Products be recorded as depreciation expense dur-
ing 2015?
C. Designing products, aggregating com-
ponents and assembling finished products A. Rp 0
B. Rp 3.200.000
D. Growing and Extracting Raw Materials
C. Rp 17.280.000
449. Which of the following refers to intangi- D. Rp 80.000.000
ble assets?
A. patent 454. Inventory must be stated in
A. Whichever is lower of cost and fair
B. trademark
value
C. concession
B. Whichever is lower of cost and net re-
D. All correct. alizable value
C. Whichever is lower between costs and
450. Performance Obligation:To provide goods
net selling price
and services (so is vulnerable to risks as-
sociated with holding inventory) D. Nothing is right
A. Agent 455. Based on the information provided, if the
B. Principal cost of equity is 16%, the stock value is
closest to:
451. Assumes units first acquired are sold first
A. Specific Identification method
B. Average Cost
C. FIFO (First In, First Out)
D. LIFO (Last in, First Out) A. 11.15

B. 14.20 D. correction of an error.

C. 9.33
460. Accounting is expected to be able to meet
D. 10.00
the challenges that arise in the business
456. Notes payable with a maturity of world, so accounting must be:
120 days will be included in the SOFP A. flexible
section
B. dynamic
A. Non Current Assets
NARAYAN CHANGDER
B. Current Assets C. realistic
C. Non Current Liabilities D. futuristic
D. Current Liabilities
461. Accounting changes are often made and
457. The current value of future cash flows, the monetary impact is reflected in the
calculated by applying the time value of financial statements of a company even
money though, in theory, this may be a violation
A. Historical Cost of the accounting concept of:
B. Net realizable value A. materiality.
C. Current cost B. consistency.
D. Present value
C. conservatism.
E. Fair value
D. objectivity.
458. At the time of repayment of the bonds,
the bonds are extended with modifications 462. On June 2, Selena Company sold to
to the terms and carrying value of the debt Gomez Company merchandise having a
is higher than the fair value of the debt, sale price $6, 000 with terms of 2/10,
then n/60, f.o.b. shipping point. On June 11,
A. a loss should be recognized by the the company received a check for the bal-
debtor. ance do from Gomez Company. Assuming
Selena records sales using the net method.
B. a new effective-interest rate must be
What is the journal entries at Selena Com-
computed.
pany books to record the sale?
C. a gain should be recognized by the
debtor. A. Dr. Cash $6, 000Cr. Accounts receiv-
able $6, 000
D. no interest expense should be recog-
nized in the future. B. Dr. Accounts receivable $5, 880Cr.
Sales $5, 880
459. When a company decides to switch from
the double-declining balance method to the C. Dr. Accounts receivable $6, 000Cr.
straight-line method, this change should Cash $6, 000
be handled as a:
D. Dr. Sales $5, 880Cr. Accounts receiv-
A. change in accounting principle. able $5, 880
B. change in accounting estimate. E. Dr. Cash $6, 000Cr. Accounts receiv-
C. prior period adjustment. able $5, 880Cr. Sales discounts $120

463. Includes Depreciation Expense and Bad 469. Dividend payment in the form of return
Debt Expense of capital What type of business does it
often occur?

A. Prepayments (Deferrals)
A. Hotel and resort business
B. Accruals
B. Private schools and universities
C. Estimates
C. Natural resource concession business
D. none of above
D. Retail businesses such as Tesco Lotus
464. Which of the following journals correctly E. Banking and financial institution busi-
records the issuance of bonus shares? ness
A. Debit as the bank, credit modal saham
470. Original transaction value adjusted for
B. Debit share capital, credit share pre- depreciation and amortization
mium
A. Historical Cost
C. Debit share premium, credit share cap- B. Net realizable value
ital
C. Current cost
D. Debit investment, credit cash at bank
D. Present value
465. Retained Earnings= E. Fair value
A. Net Income-Dividends
471. Debit if write-down is common for
B. Assets-Liabilities the particular company
C. Common Stock-Stockholder Equity A. COGS
D. Revenues-Expenses B. Loss
466. Debt means 472. Cash will always get affected by an ad-
justed entry process
A. Current obligations of the business
A. True
B. It is the result of past events.
B. False
C. It is expected that the business will
lose economically useful resources. 473. The activity of discontinuing a company’s
product line is called
D. All correct.
A. Stop Operation
467. Stockholders is also known as?
B. Continuing Operation
A. Stakeholders C. Discontinued Operation
B. Shareholders D. Other Comprehensive Income
C. Managers
474. The concept that forms the basis of the
D. Owners basic framework for presenting and dis-
closing financial statements is The con-
468. A shift of approach to strengthen in the
cept that forms the basis of the basic
field of accounting. Work hard to achieve
framework for presenting and disclosing
the highest quality of reporting possible.
financial statements is
A. Principles-based (Objective oriented) A. Usefulness in decision making (deci-
B. Rules Based sion usefulness)

B. Ease of information to understand (un- A. $3, 185, 130

derstandability) B. $3, 184, 500
C. Information reliability (reliability) C. $3, 173, 550
D. Comparability of information (compa- D. $3, 165, 000
rability)
478. A company days sales outstanding are as
475. On June 2, Tom Company sold to Jerry
follows for 2017, 2018, 2019:40 days,
Company merchandise having a sale price
35 days, 32 days. The Company is healthy
NARAYAN CHANGDER
$5, 000 with terms of 2/10, n/60, f.o.b.
shipping point. On June 11, the company A. True
received a check for the balance do from B. False
Jerry Company. Assuming Tom records
sales using the net method. What is the 479. The party who needs accounting informa-
journal entries on Tom Company books to tion to make a decision about whether or
record the sale? not to invest capital in the company is .
A. Dr. Cash $4, 900Dr. Sales discounts A. Creditors
$100Cr. Accounts receivable $5, 000 B. Investor
B. Dr. Accounts receivable $5, 000Cr. C. Government
Sales $5, 000
D. Employee
C. Dr. Cash $4, 900Cr. Accounts receiv-
able $4, 900 480. Represents obligations created when ex-
D. Dr. Cash $5, 000Cr. Accounts receiv- penses have been incurred but will not be
able $5, 000 paid until a subsequent reporting period
E. Dr. Cash $3, 920Cr. Accounts receiv- A. Deferred Revenue
able $3, 920 B. Accrued Liabilities
476. When a plant asset is acquired by is- 481. Obtain source documents about exter-
suance of common stock, the cost of the nal transactions, analyze the transaction,
plant asset is properly measured by the record the transaction in a journal, post
A. Par value of the stock. from the journal to the general ledger ac-
counts
B. stated value of the stock.
A. During the Accounting Period
C. book value of the stock
B. At the end of the Accounting Period
D. fair value of the stock.
C. At the end of the year
477. On January 1, Santibanez Inc. issued
D. none of above
$3, 000, 000, 11% nominal interest,
raising cash $3, 195, 000 (10% ef- 482. Periodicity
fective interest). Interest is payable
annually on December 31. Santibanez A. Business is separate from owners.
uses the effective-interest method for pre- Economic events identified specifically
mium/discount amortization. At the end with an
of the first year, what is the value of B. Assumption anticipates that a busi-
the bonds reported in the financial state- ness entity will continue to operate indef-
ments? initely

C. Assumption allows the life of a com- 487. Governmental agencies that regulate
pany to be divided into artificial time pe- public companies. Congress gave the
riods to provide timely information power to regulate GAAP and select dele-

D. Transaction and reports stated in dol- gates for the FASB
lars A. GAAP
483. Which of the following is not treated as B. FASB
a change in accounting principle? C. SEC
A. A change from LIFO to FIFO for inven- D. IASB
tory valuation. E. GASB
B. A change to a different method of de-
preciation for plant assets. 488. Residual rights to company assets after
deducting liabilities are called
C. A change from full-cost to successful
efforts in the extractive industry. A. Asset
D. A change from completed-contract to B. Equity
percentage-of-completion. C. Liabilities
484. Globally recognized accounting standards D. Expense
are
489. Which of the following will likely be in-
A. IASB cluded in an auditor’s report?
B. IAI A. An assessment of the company’s inter-
C. IFRS nal control procedures
D. DSAK B. A detailed explanation of data con-
tained in the financial statements
485. The main objectives of making financial
C. An opinion that the financials present
reports include:
fairly the financial position, results of op-
A. Seeking Profit erations, and cash flow in accordance to
B. Maximizing Revenue GAAP.
C. Provides information for users D. All of the above
D. Ease of Taxation 490. Which of the following is not belong to
broad categories of products and services?
486. Earnings per share means
A. Net profit or net loss per share of the A. Services
company’s capital. B. Traders
B. Net profit or net loss per common C. Insurance
share of the company D. Cash
C. Net profit or net loss per preferred
share of the company 491. Joe and James have agreed to record
equal initial interests. Although Joe in-
D. Net profit or net loss to total sharehold- vested 240, 000 baht in cash, James in-
ers’ equity vested 201, 600 baht in cash, the five
E. Net profit or net loss per bond of the partners used the bonus method to back
company up their initial investment. What is the

amount of goodwill that must be recorded per unit. 1 unit of stock consists of 3 com-
in the James capital increase account? mon shares with a value of 100 baht each
A. 0 baht and 4 preferred shares with a value of 50
baht each. If you do not know both the
B. 9, 600 baht market price of the common shares and the
C. 38, 400 baht market price. of preferred shares Which of
the following is correct?
D. 76, 800 baht
A. The premium on common shares is
NARAYAN CHANGDER
492. Prepayment of insurance premiums for a equal to 20, 000 baht.
period by the insured can be recorded as: B. The excess value of preferred shares
A. Assets is equal to 30, 000 baht.
B. Income C. The premium on common shares is
equal to 30, 000 baht.
C. Debt
D. The excess value of preferred shares
D. Modal
is equal to 10, 000 baht.
493. ABC Company issued $20, 000, 000 of E. The premium on common shares is
10-year, 9% bonds on March 1 2015 at equal to 10, 000 baht.
an exchange rate of 97 plus accrued inter-
est. The bonds are dated January 1 2015, 496. Journal Entries-Transactions recorded
interest is paid every June 30 and Decem- A. 24/7
ber 31. How much cash is received when B. Monthly
the bond is issued?
C. Year-end
A. $19, 400, 000
D. none of above
B. $20, 450, 000
497. Prepaid rental costs are recorded in the
C. $19, 700, 000
financial statements, namely:
D. $19, 100, 000
A. income statement
494. On the day of stock split up (Stock-split B. financial position report
up), how will the account be recorded? C. cash flow statement
A. Memoirs D. notes to financial reports
B. Dr. Share capital (new) xx Cr. Share
capital (old) xx 498. The following are not characteristics of
Tangible Fixed Assets:
C. No need to record an account but show
A. Relatively Permanent
it in the notes to the financial statements.
B. Used in company operations
D. No need to record an account But show
it in parentheses following the share capi- C. Intended for resale
tal item in the statement of financial posi- D. Has a physical form
tion.
499. Which statement is correct regarding the
E. No action required
legal allocation of retained earnings?
495. Jai Jai Company Limited offers shares in a A. One-twentieth of the income the busi-
total of 2, 000 units at a price of 525 baht ness earns is kept as a reserve fund. until

the reserve fund reaches one-tenth of the D. Dr. Cash 10, 000, 000 Cr. Unsold com-
company’s capital mon stock capital 10, 000, 000

B. One-twentieth of the profit the busi- E. No recordings are required today.
ness makes is kept as a reserve fund. un-
til the reserve fund reaches one-tenth of 502. Where long-term assets can be acquired
the company’s capital A. Purchase
C. One-twentieth of the profit the busi- B. Donation
ness makes is kept as a reserve fund. un-
til the reserve fund reaches one-twentieth C. Business Combination
of the company’s capital D. Lease
D. One-tenth of the profit the business E. Exchange
makes is kept as a reserve fund. until the
reserve fund reaches one-twentieth of the 503. Land assets Building and equipment How
company’s capital should it appear in the statement of finan-
E. One-tenth of the profit the business cial position?
makes is kept as a reserve fund. until A. Price-Accumulated Depreciation
the reserve fund reaches one-tenth of the
company’s capital B. Book value-Accumulated depreciation-
Allowance for impairment (if any)
500. What represents the unique value of a C. Fair price-accumulated depreciation
company as a whole over and above it’s
identifiable and intangible? D. Cost price-Accumulated depreciation-
Allowance for impairment (if any)
A. manufactured good
B. goodwill 504. Which of the following is/are indicator/s
C. intangible asset of a finance lease? (NOTE:Select all that
apply.)
D. lump-sum purchase
A. Transfer of ownership of the asset to
501. On 1 Jan. 2020, Jing Jai Company Lim- the lessee by the lessor
ited registered 100, 000 common shares
B. The economic term is for the major
with a value of 100 baht per share. 1
part of the useful life of the asset even if
Feb. 20 issued 20, 000 common shares at
the title is not transferred
a price based on value. 1 Mar. 20 issued
50, 000 common shares. At a price of 105 C. PV of lease payments amounts to sub-
baht, which statement is correct regard- stantially all of the FV of leased asset
ing accounting recording? On the common D. The underlying asset is common in na-
stock registration date (1 January 2020) ture
A. Memorandum:Register 100, 000 com-
E. The lessee has an option to purchase
mon shares with a value of 100 baht per
the asset at a price significantly lower
share.
than the fair value
B. Dr. Unsold common share capital 10,
000, 000 Cr. Common share capital 10, 505. Monetary Unit
000, 000 A. Business is separate from owners.
C. Dr. Cash 10, 000, 000 Cr. Common Economic events identified specifically
stock capital 10, 000, 000 with an

B. Assumption anticipates that a busi- 509. On January 1, 20X4 PT JAYA purchased

ness entity will continue to operate indef- a new machine for Rp. 96, 720. Transport
initely costs amounted to Rp. 3, 660 and internal
C. Assumption allows the life of a com- administration costs amounted to Rp. 9,
pany to be divided into artificial time pe- 450. At that time, the company planned
riods to provide timely information to replace the machine within five years,
when the machine no longer had residual
D. Transaction and reports stated in dol- value, and depreciate the machine using
lars the straight-line method. determined on 1
NARAYAN CHANGDER
January 20X6 that the machine had only
506. What is the classification according to the
one year remaining useful life. It is esti-
period of debt repayment?
mated that there will be no change in the
A. Debts that are definite residual value at the end of the machine’s
B. Current liabilities useful life. What is the depreciation ex-
pense on the machine in the company’s
C. Estimate of debt profit or loss statement for the year ended
D. Contingent liabilities 31 December 20X6?
507. Which of the following refers to tempo- A. Rp33.460

rary investment? B. Rp60.228
A. Assets that an entity holds for future C. Rabkh.898
benefit in the form of a commercial rela-
D. Rp58.032
tionship.
B. Remaining assets that the business in- 510. In calculating EPS for a simple capital
vests in addition to the remaining cash structure, it involves 2 (two) items other
used. which can be sold for profit within than net profit, namely
1 year A. Preferred stock dividends and number
C. Marketable assets held by an entity by of shares outstanding.
investing in financial assets. To increase B. Preferred stock dividends and bond in-
the stability of the business terest rates.
D. Financial assets in which the business C. Bond interest rates and number of
invests By using the remaining cash to in- shares outstanding
vest. The objective is to profit from short-
term changes in the price of securities. D. Bond interest rates and stock nominal
value.
508. If residual value at the end of the lease
term is lower than the amount guaranteed 511. What is meant by Short Term Debt is
by the lessee, it is recognized as loss in A. Liabilities whose repayment uses re-
the books of the lessor. sources classified as current assets or by
A. TRUE the creation of new current liabilities.
B. FALSE B. Company debt that will mature in more

Explanation:If residual value at the end of than one accounting period.
the lease term is lower than the amount C. Debt that requires a formal process in
guaranteed by the lessee, the lessee is re- its formation, namely approval from the
quired to pay for the deficiency. board of directors and/or shareholders.

D. The amount a company must pay to 516. Types of long-term assets

its shareholders after obtaining approval
A. Property, plant, and equipment
from the board of directors.

B. Natural Resources
512. Karina Company purchased a patent on
C. Intangible assets
January 1, 2017, for P3, 570, 000. The
patent was beingamortized over its re- D. Tangible assets
maining legal life of 15 years.During 2020
Karina determined that the economicben- 517. Jai Jai Company Limited has a capital
efits of the patent would not last longer structure as of January 1, 2020 as fol-
than tenyears from the date of acquisition. lows:10% preferred stock capital, cumula-
What amount should be reported in the tive type, 10, 000 shares, value 10 baht
statement of financial position as patent, per share, 100, 000 baht, common stock
net of accumulated amortization, at De- capital, 20, 000 shares, value 5 baht each
cember 31, 2020? share, 100, 000 baht, on July 1, 2020,
the company has An additional 5, 000 com-
A. Ba, 618, 000 mon shares were issued on December 31,
B. Ba, 520, 000 2020. The company had a net profit of
93, 000 baht. What is basic earnings per
C. Ba, 448, 000 share?
D. Ba, 142, 000 A. 3.69 baht
513. Two situations for a change in inventory B. 6.25 baht
method C. 3.72 baht
A. Most Inventory changes:retrospective D. 5.56 baht
treatment
E. 4.75 baht
B. Change to the LIFO Method
C. Change to the Average Cost Method 518. Kassandra has bonds with a carrying
value on December 31, 2014 of $832,
D. Change to to the Retail Inventory 000, nominal value 12%. face value
Method bonds $800, 000 were issued at an ef-
E. Change to the FIFO Method fective interest rate of 10%. Kassandra
amortizes discounts/premiums using the
514. Subject to depreciation, depletion or effective interest method. Interest is paid
amortization every June 30 and December 31. On June
30, 2015, several years before maturity,
A. Finite useful life
Kassandra redeemed the bonds at an ex-
B. Indefinite useful life change rate of 104 plus interest owed.
Then there is a loss on the redemption of
515. Inventory Turnover ratio for the 2017, the bonds
2018, 2019 is asl follows:4.1x, 4.7x,
A. $0
5.0x. The company is healthy. True or
false B. $6, 400
A. True C. $9, 920
B. False D. $32, 000

519. How are assets listed on the balance 522. Goods that are produced by a manufac-
sheet generally organized? turing company to be sold to wholesalers,
A. From intangible assets to intangible retailers, other manufacturers, or con-
assets sumersConsist of:Raw Materials, Work-
in-process, Finished Goods
B. From current assets to non-current as-
sets A. Merchandising Inventory
B. Manufacturing Inventory
C. From low value assets to high value as-
NARAYAN CHANGDER
sets 523. The following events are transactions
D. From more liquid assets to less liquid that must be recorded in the general
assets journal:
A. The company added one employee in
520. Giant Inc. acquires the customer list of
the accounting department
a large newspaper for $8, 000, 000 on
January 1, 2016. Giant Inc. expects to B. The company plans to purchase new of-
benefit from the information evenly over fice equipment
a four-year period. What is the journal en- C. The company received complaints re-
try to record the amortization of the cus- garding unsatisfactory services
tomer list at the end of each year?
D. The company charges customers for
A. Dr. Amortization expense $2, 000, the services provided
000Cr. Customer List $2, 000, 000
524. Based on the information provided, divi-
B. Dr. Amortization expense $2, 000,
dend in year 3 will be:
000Cr. Cash $2, 000, 000
C. Dr. Customer List $2, 000, 000Cr.
Amortization expense $2, 000, 000
D. Dr. Amortization expense $8, 000,
000Cr. Customer List $8, 000, 000
E. Dr. Amortization expense $8, 000,
000Cr. Cash $8, 000, 000 A. 1.76
B. 2.81
521. Statement A:The lessee shall recognize
a gain or loss relating to partial or full C. 1.92
termination of the lease in P/L. State- D. 2.20
ment B:A lease modification not accounted
for as a separate contract requires a re- 525. Which of the following items It will not
measurement of the lease liability using appear in the shareholders’ equity. In the
the old implicit rate. statement of financial position
A. Both statements are true A. Surplus value of common shares
B. Both statements are false B. Surplus from redemption of preferred

shares
C. Only Statement A is true.
C. Unallocated retained earnings
D. Only Statement B is true.
Explanation:The implicit rate is also re- D. treasury preferred shares
vised during re-measurement. E. Surplus value of bonds

526. Which of the following items It is not con- 531. Which best describes disclosure notes?
sidered a change in shareholders’ equity.
A. An assessment of the company’s inter-

A. Net loss items nal control procedures
B. Adjusting errors from previous ac- B. A detailed explanation of data con-
counting periods tained in the financial statements
C. issuance of bonds C. An opinion that the financials present
D. Dividend payment fairly the financial position, results of op-
erations, and cash flow in accordance to
E. Buying back preferred shares
GAAP.
527. Involves an exchange transaction with D. All of the above
another entity
A. External Events 532. = NRV-Normal Profit MarginMarket
should not be less than the NRV reduced
B. Internal Events by an allowance for normal profit margin
528. Which of the following could explain a A. Ceiling
fall in operating cash flow? B. Floor
A. Increased inventory
533. Good report, but a footnote added to it.
B. Repayment of loan
C. Increased cash Sales A. Unqualified
D. Purchase of fixed assets B. Unqualified with an explanation or em-

phasis paragraph
529. The following data was obtained from C. Qualified
the accounting department of PT
D. Adverse or disclaimer
A. Rp11.200.000
E. Rejected
B. Rp10.625.000
C. Rp10.275.000 534. How many financial reports must a com-
D. Rp10.500.000 pany make?
A. 3
530. It is known that the receivable balance
data is IDR 250, 000, 000 and the amount B. 4
of the receivable allowance is 3.5% of C. 5
the receivable balance. The balance of the
allowance for receivables that has been D. none of above
established is IDR 5, 750, 000. So the
adjustment amount for the allowance for 535. Inventory error correction-when the er-
trade receivables is: ror is found one year later-requires
A. A. No correcting entry required and a dis-

closure note in the company’s annual re-
B. port is needed.
C. B. Debit retained earningsCredit inven-
D. tory

536. Kaylie Corporation traded in used machin- 540. Namwan and Namkhing form a partner-
ery with a book value of $70, 000 (cost ship. Khingwan agrees to share profits
$120, 000 less accumulated depreciation equally. The current year’s net profit is
$50, 000) and a fair value of $100, 000. 400, 000 baht. How much share does
It receives in exchange a machine with a each partner receive?
fair value of $80, 000 plus cash of $20, A. Sweet water 200, 000 baht, ginger
000. The portion of the gain in a company juice 200, 000 baht
recognizes is:
B. Sweet water 194, 000 baht, ginger
NARAYAN CHANGDER
A. $6, 000 juice 206, 000 baht
B. $14, 000 C. Sweet water 206, 000 baht, ginger
C. $20, 000 juice 206, 000 baht
D. $10, 000 D. Sweet water 206, 000 baht, ginger
juice 194, 000 baht
E. None of these
541. Subtract the sum of the known or esti-
537. Proof of the transaction of returning mated stand-alone selling prices of other
goods that have been purchased to the goods and service is in the contract from
seller as a result of non-conformity of the total transaction price of the contract
goods is called
A. Adjusted market assessment ap-
A. Sales invoice proach
B. Memo B. Expected cost plus margin approach
C. Check C. Residual Approach
D. Credit note D. none of above
E. Not happy
542. Which characteristic is not possessed by
538. Which of the following liquidity ratios is intangible assets?
a sign of ill-health? A. Physical existence
A. Current ratio is 1.33 B. Identifiable
B. Quick ratio is 1.01 C. Result in future benefits
C. Current ratio is 2.10 D. Expensed over current and/or future
years
D. Quick Ratio is 0.90
543. On Jul 5, David Company sold to Beck-
539. Estimated costs for dismantling and re-
ham Company merchandise having a sale
moving refer to decommissioning costs
price of $3, 000 with terms of 2/10,
capitalized as part of the cost of an item
n/60, f.o.b. shipping point. What is the
of PPE, and are recognized as contingent
journal entry on David Company books to
liability if the entity has a constructive or
record sales using the net method if Beck-
legal obligation for removal of asset or
ham did not remit payment until August
restoration of the site.
30?
A. TRUE
A. Dr. Cash $2, 940Dr. Sales discounts
B. FALSE $60Cr. Accounts receivable $3, 000

B. Dr. Accounts receivable $3, 000Cr. B. The company’s stock is overpriced

Sales $3, 000 C. The company has very few sharehold-

C. Dr. Cash $2, 940Cr. Accounts receiv- ers
able $2, 940 D. The company is very profitable
D. Dr. Cash $3, 000Cr. Accounts receiv-
able $2, 940Cr. Sales discounts forfeited 548. Which is a debt security?
$60 A. Siam Commercial Bank debentures
E. Dr. Cash $3, 000Cr. Accounts receiv- B. Bangkok Bank common shares
able $3, 000
C. Thai Bank common shares
544. Changing estimate calculation in Depreci- D. All correct.
ation
549. An inventory record card shows the fol-
A. Prospectively
lowing detailsfor the month of June:June
B. Retrospectively 1:50 units in stock at a cost of P40 per
unit 7:100 units purchased at a cost of
545. Worst report from auditor (goes against
P45 per unit 14:80 units sold21:50 units
GAAP)
purchased at a cost of P50 per unit28:60
A. Unqualified units sold What is the value of inventory
B. Unqualified with an explanation or em- at June 30 using theFIFO method?
phasis paragraph A. Ba, 450
C. Qualified B. Ba, 700
D. Adverse or disclaimer C. Ba, 950
E. Rejected D. Sell, 000
546. Which of the following is the formula for 550. Which of the following intangible assets
Net Realizable Value? should not be amortized?
A. Estimated Cost of Good Sold, less A. Copyrights
costs of completion, divided by target
number of units B. Customers lists
B. Estimated Selling Price, less costs of C. Perpetual franchises
completion, divided by target number of D. All of these intangible assets should be
units amortized
C. Estimated Selling Price, less costs of
551. Techniques to simplify LIFO
completion, transportation, and/or dis-
posal cost A. Lifo Inventory pools
D. Estimated Cost of Good Sold, less B. Dollar-value LIFO method
costs of completion, transportation, C. Inventory Turnover Ratio
and/or disposal
D. Gross Profit Ratio
547. If a company has high PE ratio, it is most
likely because 552. Buying/paying Company
A. The company is expected to grow very A. Creditors

fast B. Investors

553. Emphasize principles for recognizing rev- 000 tons were sold. What is the amount
enues and expenses, with some assets of depletion that the entity should ex-
and liabilities recognized as necessary to pense for 2020?
make the balance sheet reconcile with the A. P640, 000
income statement
B. Phth00, 000
A. Revenue/Expense Approach
C. P 840, 000
B. Asset/Liability Approach
D. P1, 050, 000
NARAYAN CHANGDER
554. Current GAAP standard setting commit-
tee. Made up of professional CPAs around 558. financial statements present the financial
US position on a certain date and fulfill the ba-
sic accounting assumptions, namely:
A. GAAP
A. economic entity
B. FASB
B. going concern
C. SEC
C. monetary unit
D. IASB
D. periodicity
E. GASB
559. Publicly trades companies must use what
555. When reconciling a bank statement and in accordance to GAAP?
cash book, which two of the following
will require a transaction journal in the A. Cash Basis
cash book?(1) Deposits credited after the B. Accrual Basis
date(2) Direct debits only to bank ac-
counts(3) Bank charges(4) Bank error 560. The entity classifies a lease that meets
the criteria as a finance lease. The lessee
A. 1 dandy will depreciate the asset over the lease
B. Invite term. What qualitative characteristics un-
C. A, 3 Dan 4 derlie the accounting treatment? An entity
classifies a lease that meets the criteria as
D. 1, a, don’t a finance lease. The lessee will depreciate
556. Current Liabilities are the asset throughout the lease term. What
qualitative characteristics underlie this ac-
A. Current liabilities counting treatment?
B. Non-current liabilities A. Substance over form
C. long term debt B. Going concern
D. All correct. C. Reliability
557. In January 2020, an entity purchased a D. Relevance
mineral minefor P3, 400, 000 with remov-
able ore estimated bygeological surveys at 561. Debit journal entries for an account are
2, 000, 000 tons. The propertyhas an es- for:
timated value of P200, 000 after the ore A. Increase liabilities
hasbeen extracted. The company incurred B. Increase assets
P1, 000, 000 ofdevelopment costs prepar-
ing the mine for production.During 2020, C. Increase equity
500, 000 tons were removed and400, D. Answers A and C are correct

562. Land held for sale in the SOFP falls into 567. Expected residual value of an intangible
the category asset usually is zero

A. Current Assets A. Useful Life
B. Current Liabilities B. Residual Value
C. Non Current Assets 568. The deposit method of revenue recogni-
D. Equity tion is used when:
A. the product can be marketed at quoted
563. If there is a cash purchase, it will be
prices and units are interchangeable.
recorded in the journal
B. cash is received before the sales trans-
A. Cash disbursement journal
action is complete.
B. Cash receipts journal
C. the contract is short-term or the
C. Purchase journal percentage-of-completion method can’t
D. Purchase returns journal be used.
D. there are no significant costs of distri-
564. Price if the product or services were sold
bution.
in the market
A. Adjusted market assessment ap- 569. Shareholders are limited to the dividends
proach provided under stock preference and are
not eligible to share in excess dividends
B. Expected cost plus margin approach
A. Cumulative PS
C. Residual Approach
B. Noncumulative PS
D. none of above
C. Participating PS
565. Cash is needed to meet payments aris- D. Nonparticipating PS
ing from company activities. This motif is
called 570. JE for NRV for either write down is sub-
A. Transaction motive stantial and unusual or write down is com-
mon for the particular company
B. Precautionary motive
A. D:COGSC:Inventory
C. Motif investasi
B. D:LossC:Inventory
D. Speculative motive
C. D:InventoryC:COGS
E. Compensation motive
D. D:InventoryC:Loss
566. Retail inventory method is used by
571. set of rules and guidance for accounts to
A. High volume retailers selling many dif- properly/correctly record transactions in
ferent items at low unit prices the accounting system
B. Low volume retailers selling many dif- A. GAAP
ferent items at low unit prices
B. FASB
C. Low volume retailers selling many dif-
ferent items at high unit prices C. SEC
D. High volume retailers selling many dif- D. IASB

ferent items at high unit prices E. GASB

572. Which of the following capital is not 577. Money we owe to

shown in the company’s Balance Sheet ‘ A. Creditors
A. Authorised capital B. Investors
B. Issued &subscribed capital
578. Company bills to customers as a result
C. Called-up and paid up-capital of the sale of goods or services on credit,
D. Reserve capital generally with a maturity of less than one
year, are recorded in the account
573. What is the collection of depreciable as-
NARAYAN CHANGDER
sets that share similar service lives and A. Account receivable
other attributes? B. Notes receivable
A. Group Depreciation Method C. Account payable
B. Composite Depreciation Method D. Purchases payment
574. Information is said to be material if E. Sales
A. The value is large, more than 5% of as- 579. Which of the following statements about
sets stocks is FALSE?
B. influence decisions that have been A. Every companies must have preferred
made based on financial information re- shareholders
ports
B. Every companies must have sharehold-
C. Making the company lose money ers
D. Reducing Profit C. Public companies have many share-
575. The company’s ledger at 30 April 20X8 holders
shows a balance in the bank of Rp. 2, 490, D. Not all public companies are listed in
000. A comparison with the bank state- the stock exchange
ment on the same date shows the follow-
580. Suppose a company has net income of
ing differences:The ledger balance at 30
THB 1, 500 million with 500 million shares
April 20X8 is:
outstanding. If its PE ratio is 16x, its price
A. Rp1.930.000 is:
B. Rp3.140.000 A. 48.00
C. Rs 2, 580, 000 B. 24.00
D. Rs 2, 300, 000 C. 16.00
576. Going Concern is D. 3.00
A. the company carries out its activities 581. Replenishment of petty cash funds which
separately from those of its owners and is not determined the same for each period
other business units is called the . method.
B. Transactions are recorded in the pe- A. Fluctuation fund system’
riod in which they occur
B. Petty cash fund
C. Companies can divide their economic
activities into several periods C. Petty cash record
D. companies can survive long enough to D. imprest fund system’
fulfill their goals and commitments E. Petty cash voucher

582. Conceptually, a short term note payable C. Purchasing

with no stated rate of interest should be D. Saving

A. recorded at maturity value
587. Three categories of transaction affecting
B. recorded at the face amount
cash flows
C. discounted to its present value
A. Operating Activity
D. recorded separately from other short-
term notes payable
C. Financial Activity
583. It is a business owned by its stockhold-
D. Income Activity
ers.
E. Record Activity
A. Sole Proprietorship
B. Partnership 588. The ability of a company to convert its
assets to cash
C. Corporation
A. Liquidity
D. Cooperative
B. Long-term solvency
584. What does an outstanding check mean?
589. Jai Jai Company Limited has transactions
A. Checks made by the business and
regarding common stocks during 2020 as
recorded in the account. But the recipient
follows:1 Jan. Number of shares remain-
has not yet cashed the money at the bank.
ing at the beginning of the period:100,
B. Checks that the recipient cannot with- 000 shares. 1 Apr. Issued and sold ad-
draw money from the bank ditional 20, 000 shares. 1 Jul. Pur-
C. Check the bank returns to the busi- chased 39, 000 capital shares back. 1
ness. Nov. September issued an additional 60,
000 shares. What is the weighted aver-
D. Checks that the business has not yet
age number of common shares?
given to outsiders
A. 105, 000 shares
585. The cost of an item of fixed assets is only
B. 105, 500 shares
recognized if the cost of the item can be re-
liably measured and if: C. 150, 000 shares
A. it is not directly attributable to the as- D. 155, 000 shares
set. E. 155, 500 shares
B. it has been paid for in cash.
590. X ltd. Forfeited 1, 000 shares of Rs. 10
C. it is probable that future economic ben- each for the non-payment of final call of Rs.
efits will flow to the entity. 2. The account will be debited for called up
D. the item has been received by the ac- price of a share at the time of forfeiture of
quirer. shares:
A. Share Forfeiture A/c
586. What is maintaining given level of bene-
fits? B. Share Capital A/c
A. Improvements C. Share Final Call A/c
B. Expensing D. None of these

591. Role of an Auditor 595. Sincere Company Limited offers shares in

A. Offer credibility to financial state- a total of 2, 000 units at a price of 525
ments baht per unit. 1 unit of stock consists of 3
common shares with a value of 100 baht
B. Express an opinion on the compliance each and 4 preferred shares with a value
of financial statements with GAAP of 50 baht each if the market price of the
C. Licensed by the states to provide au- common shares is equal to 105 baht and
dit services-certifies public accountants not Know the market price of preferred
(CPA) stocks. Surplus of preferred shares equal
NARAYAN CHANGDER
D. Record and make corrections to errors to how much
E. Investigate companies when fraud is A. 50, 000 baht
detected. B. 30, 000 baht
592. Represents changes in the RE component C. 20, 000 baht
of shareholder’ equity caused by revenue,
expense, gain, loss, and dividend transac- D. 10, 000 baht
tions. Balances are closed or zeroes out- E. There is no premium on preferred
closing process shares.
A. Permanent Accounts
596. Tyren Advertising Agency performed web
B. Temporary Accounts
design and brochure services for 2 clients
593. Steps in changing inventory method on August 15th. Tyren invoiced Carter
though retrospective treatment Company $2, 700 and was paid in cash.
Tyren also invoiced Pro-Seal Lift Systems
A. Revise Comparative statements
$3, 200, giving Pro-Seal 30 days to pay
B. Adjust affected accounts in full. If Tyren Advertising Agency uses
C. Disclose additional information Accrual Accounting, which of the following
D. The LIFO Method is used from the is true?
point the change is adopted and that pe- A. Service Revenue will be credited $5,
riod’s beginning balance is considered as 900 on August 15th.
the base year inventory
B. Service Revenue will be debited $2,
594. Over a Period of time requirements are: 700 on August 15th.
A. The customer consumes the benefit of C. Service Revenue will be credited $3,
the seller’s work as it is performed 200 on August 15th.
B. The customer controls the asset as it D. Service Revenue will be debited $5,
is created 900 on August 15th.
C. The seller is creating an asset that has
no alternative use to the seller, and the 597. Which of the following refers to non-
seller has the legal right to receive pay- current assets?
ment for progress to date A. Insurance premiums paid in advance
D. The customer can hold payment if a le- B. Debtors and notes receivable
gal action occurs between buyer and cus-
tomer C. Land, buildings and equipment
E. The seller can make use of an asset. D. Cash and bank deposits

598. Physical flow of inventory like grocery D. Transaction and reports stated in dol-
stores. Getting the oldest inventory out lars
first

603. During 2022, Pharsa Company experi-
A. FIFO enced severe business downfall and is
B. LIFO likely to default on a 10 million, 8% 4 year
note dated January 1, 2021 payable to
599. The following is the company’s trial bal- Xavier Bank.On December 31, 2022, the
ance at the end of its financial year at bank agreed to settle the note and unpaid
31 December 20X7:Calculate the cost of interest for P 8, 100, 000 cash payable
goods sold for the period on January 2023.How much is the unpaid
A. IDR 343 million interest as of December 31, 2022?
B. IDR 304 million A. 800, 000
C. IDR 297 million B. 760, 000
D. IDR 294 million C. 820, 000
D. 740, 000
600. Convey additional insights
A. Parenthetical comments (modifying 604. Good/service can be used alone or with
comments) other goods that can be obtained else-
where
B. Disclosure notes
A. Capable of being distinct
C. Supplemental schedules and tables
B. Separately Identifiable
D. none of above
605. On 30 June 20X1 PT CARA has decided
601. Which of the following statements about to write off two receivables amounting to
stocks is FALSE? Rp. 1, 300, 000 and Rp. 2, 150, 000
A. Stocks must always pay dividends respectively and to make a special provi-
sion of Rp. 6, 631, 000. The allowance
B. Stocks provide return through divi-
balance on 1 July 20X0 was IDR 8, 540,
dend income and price growth
000. What was the bad debts expense for
C. Preferred stocks pay dividend before the period up to 30 June 20X1?
common stocks
A. Rp1.541.000
D. Not all stocks give owners the right to
B. Rp1.909.000
vote
C. Rp3.450.000
602. Going Concern D. Rp5.359.000
A. Business is separate from owners.
Economic events identified specifically 606. Memphis Corp. is a large soft drink
with an bottler thatrequires new bottling equip-
ment. After negotiatingwith several sup-
B. Assumption anticipates that a busi- pliers, Memphis decided to accept aspe-
ness entity will continue to operate indef- cial offer from Gasol Corporation. Gasol
initely willdeliver the equipment with a list price
C. Assumption allows the life of a com- of P100, 000 toMemphis on July 1, 2020
pany to be divided into artificial time pe- with the following paymentterms:* A de-
riods to provide timely information posit of P20, 000 is due on June 1, 2020.*

Cash on delivery of P20, 000 is due on its accounting records, these errors would
July 1, 2020.* Three additional payments cause:
are to be madeannually from July 1, 2021 A. the ending inventory and retained
to July 1, 2023 ofP20, 000.* Gasol will earnings to be understated.
waive its normal interest charge of 6%per
year to facilitate the sale.The equipment B. the ending inventory, cost of goods
is expected to last 5 years, with aresidual sold, and retained earnings to be under-
value of P20, 000. Memphis has a Decem- stated.
ber31 year end. What should be the de-
NARAYAN CHANGDER
C. no effect on net income, working capi-
preciation expensefor the year ended 31 tal, and retained earnings.
December 2020?
D. cost of goods sold and net income to
A. P7, 346 be understated.
B. P8, 570
611. When amortizing a premium or discount
C. P 9, 346 bond uses effective interest, the periodic
D. P14, 692 amortization will
A. increases if the bond is issued at a dis-
607. Information presented before it loses its count
ability to influence decisions is called
B. decreases if the bond is issued at a
A. Timelines premium
B. Comparability C. increases if the bond is issued at a pre-
C. Understandability mium
D. Completeness D. increases whether bonds are issued at
a premium or discount
608. Option need to consider
612. What are salaries, wages, and other la-
A. Material Right bor costs of R&D personnel, materials con-
B. Likelihood that customer will use op- sumed, equipment, facilities, and intangi-
tion bles?
C. Contract renewal options A. Overhead Allocation
D. Recorded as deferred revenue liability B. R and D Costs
C. Goodwill
609. What is the exclusive right of protection
given to a creator of a published good? D. Patent
A. contract 613. Statement 1:All directly atributable cost
B. copyright related to the issuance of the finan-
cial liability shall be added to the fair
C. patent
value.Statement 2:Financial liability as ex-
D. goodwill pressed in PFRS 9 par. 5.1.1 provides that
it shall be measured at amortized cost at
610. If, at the end of a period, a company er- subquent dates.
roneously excluded some goods from its
ending inventory and also erroneously did A. Both statements are true
not record the purchase of these goods in B. Both statements are false

C. Statement 1 is true P15 at June 4, 2023, and P18 at De-

D. Statement 2 is true cember 31, 2023. The stock options had
been granted for P13 per share. The cost

614. The existence of a residual value guaran- method is used. What is the balance of the
tee indicates that the lease does NOT have treasury stock on Grant’s balance sheet at
a bargain purchase option nor a provision December 31, 2023?
for transfer of title. A. P175, 000
A. TRUE B. 000000000000000000000000’000
B. FALSE C. Bahh, 000
615. A company issued 6, 000 shares of Rs. D. P300, 000
10 each money to be called up:-On ap- 618. Repayment of Accounts Payable will:
plication Rs. 3 on allotment Rs. 3 on
first call Rs. 2 and remaining on second A. Increase assets and reduce debt
call. On allotment one shareholders having B. Reducing assets and increasing debt
100 shares paid full amountThe amount C. Reduce assets and reduce debt
collected on allotment
D. Adding assets and increasing debt
A. 18, 000
619. Which of the following accounts appears
B. 12, 000
as a short-term liability:(1) Loans due
C. 18, 400 within one year (2) Taxes payable (3) War-
D. 18, 600 ranty provisions
A. 1
616. On July 1, 2017, Rio Corporation ac-
quires 2, 000 shares (10% ownership) of B. 2
Beal Corporation common stock. Sanchez C. 3
pays $40 per share. The entry for the pur- D. just 1 & 2
chase is:
620. On July 1, Patrick issues a $202, 000,
A. Dr. Cash $80, 000Cr. Stock Invest-
four-month, zero-interest-bearing note to
ments $80, 000
US National Bank. The present value of
B. Dr. Stock Investment $80, 000Cr. the note is $150, 000. What is the jour-
Cash $80, 000 nal entry to record this transaction?
C. Dr. Stock Investment $8, 000Cr. Cash A. Dr. Discount on notes payable $202,
$8, 000 000Cr. Notes payable $150, 000Cr. Cash
D. Dr. Cash $8, 000Cr. Stock Investment $97, 000
$8, 000 B. Dr. Cash $150, 000Dr. Discount on
notes payable $52, 000Cr. Notes payable
617. Grant, Inc. had 50, 000 shares of trea- $202, 000
sury stock (P10 par value) at December
31, 2022, which it acquired at P12 per C. Dr. Notes payable $202, 000Cr. Cash
share. On June 4, 2023, Grant issued 25, $150, 000Cr. Discount on notes payable
000 treasury shares to employees who $52, 000
exercised options under Grant’s employee D. Dr. Cash $202, 000Cr. Discount on
stock option plan. The market value per notes payable $52, 000Cr. Notes payable
share was P13 at December 31, 2022, $150, 000

E. Dr. Notes payable $150, 000Dr. Cash A. P70, 000

$52, 000Cr. Discount on notes payable B. P40, 000
$202, 000
C. P60, 000
621. Which of the following statements is cor- D. P50, 000
rect?
624. What does cost allocation include?
A. The conceptual framework is an ac-
counting standard. The conceptual frame- A. depreciation
NARAYAN CHANGDER
work is an accounting standard. B. depletion
B. The conceptual framework is used C. amortization
if there are transactions that do not
D. service life
have standardsKonseptual framework di-
gunakan jika ada transaksi yang belum 625. A company might decide to construct an
ada standarnya asset for its own use rather than buy on
C. The conceptual framework is used as existing one. What is this?
the basis for recognizing a transaction. A. Operating expenditure
The conceptual framework is used as the
B. Revenue expenditure
basis for recognizing a transaction
C. Self Constructed Assets
D. The conceptual framework as the ba-
sis for standards has a higher legal force D. Capital expenditure
than PSAK. The conceptual framework as 626. What is the exclusive right to manufac-
the basis for standards has a higher legal ture a product or to use a process?
force than PSAK.
A. monopoly
622. Accounting for goods on transit for inven- B. patent
tory owner ship depends on
C. contract
A. Ownership of goods
D. treaty
B. If buyer is found
627. Requires that companies also disclose to-
C. If buyers is not found
tal liabilities of its reportable segments
D. Reduction of purchases along with the rest of the items required.
623. Answer the following questions.3. What A. U.S. GAAP

is the depreciation expense on June 30, B. IFRS
2023?4. What amount should be rec-
ognized as impairment loss on June 30, 628. Recognizes revenue when the customer
2023.5. What amount should be recog- has paid us, and expenses when we have
nized as gain on reversal of impairment on paid something
December 31, 2023? A. Cash Basis
B. Accrual Basis
629. Which of the following is considered re-

search and development costs?
A. Laboratory research aimed at discov-
ery of new knowledge

B. Application of research findings or B. Involuntary conversion

other knowledge to a plan or design for
C. None of the above
a new product process

C. Conceptual formulation and design of D. All of the above
possible product of process alternatives
D. All of the above 631. Stock dividends increase total sharehold-
ers’ equity.
630. A company may retire plant assets volun-
tarily or dispose of them by: A. True
A. Sale B. False

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MOST POPULAR AROUND THE WORLD

PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

D. Closed 6. Costs relevant to R&D projects

PRACTICE BOOK» NOT FOR SALE

7. D 8. A 9. E 10. C 11. C 12. B 13. A 14. B 15. A

D. Debit Prepaid Insurance $150, 000; A. No journal

18. The lessee shall present the right-of-use

16. D 17. A 18. A 19. B 20. B 21. D 22. A

C. P70, 000 A. Rp 15.400.000.000

PRACTICE BOOK» NOT FOR SALE

B. Income Expense Profit A. Gross Profit Ratio

PRACTICE BOOK» NOT FOR SALE

40. B 41. B 42. B 43. A 44. A

D. none of above A. 2 10s and 30 ns

45. B 46. B 47. B 48. C 49. B 50. C 51. C 52. C 53. B

PRACTICE BOOK» NOT FOR SALE

A. FOB Shoping Point’ B. Inventory

65. D 66. D 67. C 68. A 69. A 70. D 71. B 72. A 73. A

PRACTICE BOOK» NOT FOR SALE

74. B 75. B 76. A 77. C 78. C 79. D 80. C 81. D 82. C

C. Dr. Depreciation expense $1, 950Cr. A. Capable of being distinct

85. Which best describes Management’s re- A. income statement

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92. Economic Entity A. Dr. Contribution Expense $100, 000Cr.

PRACTICE BOOK» NOT FOR SALE

D. FASB has moved forward with a more A. Interest Capitalization

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B. Consignee and parent companies. What assumptions

D. Reduction of purchases A. Accrual

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C. Beginning Inventory + Purchases + B. Current Cost

PRACTICE BOOK» NOT FOR SALE

C. Goods that are sold, but payment is not B. stock Exchange

D. Outflow of cash for dividends paid to a A. Establishment of a partnership Part-

B. Debt (D)Service income (K)80 million D. All correct.

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114. Which are the assumptions in the PSAK A. Returned check

D. Profit sharing rights D. none of above

117. It is a systematic process of identifying, C. 517, 566

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C. Rp 50.000.000, 00 146. when a bond is repaid by handing over

PRACTICE BOOK» NOT FOR SALE

A. Prepayments (Deferrals) B. gain on the repayment

143. Intangible assets 148. It is the activity of Traders as a broad cat-

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A. P48, 000 D. Dr. Equipment $20, 000Dr. Accumu-

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PRACTICE BOOK» NOT FOR SALE

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PRACTICE BOOK» NOT FOR SALE

174. Temporary Accounts A. Liquid Assets