(Solution) -ACC 541 Midterm Exam Updated

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ACC 541 Midterm Exam NEW

Question 21   Generally accepted accounting principles

Question 47  Which of the following does not relate to relevance?

Question 34   The difference between the accounting process and the accounting cycle is

Question 28   Which of the following tables would show the smallest value for an interest rate of 5% for six periods?

Question 43  In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the December 31, 2017 balance sheet date, the market price for these materials dropped to $510,000. The journal entry to record this situation at December 31, 2017 will result in a credit that should be reported

Question 30   Historical cost is the basis advocated for recording the acquisition of property, plant, and equipment for all of the following reasons except

Question 39  Broadway Corporation was granted a patent on a product on January 1, 2007. To protect its patent, the corporation purchased on January 1, 2018 a patent on a competing product which was originally issued on January 10, 2014. Because of its unique plant, Broadway Corporation does not feel the competing patent can be used in producing the product. The cost of the competing patent should be

Question 32  An account which would be classified as a current liability is

Question 68   A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,108. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2017 balance sheet?

Question 41   A company that uses the last-in, first-out (LIFO) method of inventory pricing finds at an interim reporting date that there has been a partial liquidation of the base period inventory layer. The decline is considered temporary and the partial liquidation is expected to be recovered prior to year-end. The amount shown as inventory at the interim reporting date should