西财选择题multiplechoicech.docx

西财选择题multiplechoicech.docx

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西财选择题multiplechoicech

Chapter10

1.CottonHotelCorporationrecentlypurchasedEmporiaHotelandthelandonwhichitislocatedwiththeplantoteardowntheEmporiaHotelandbuildanewluxuryhotelonthesite.ThecostoftheEmporiaHotelshouldbe

a.depreciatedovertheperiodfromacquisitiontothedatethehotelisscheduledtobetorndown.

b.writtenoffaslossintheyearthehotelistorndown.

c.capitalizedaspartofthecostoftheland.

d.capitalizedaspartofthecostofthenewhotel.

2.Whichofthefollowingcostsarecapitalizedforself-constructedassets?

a.Materialsandlaboronly

b.Laborandoverheadonly

c.Materialsandoverheadonly

d.Materials,labor,andoverhead

3.Whichofthefollowingassetsdonotqualifyforcapitalizationofinterestcostsincurredduringconstructionoftheassets?

a.Assetsunderconstructionforacompany'sownuse.

b.Assetsintendedforsaleorleasethatareproducedasdiscreteprojects.

c.Assetsfinancedthroughtheissuanceoflong-termdebt.

d.Assetsnotcurrentlyundergoingtheactivitiesnecessarytopreparethemfortheirintendeduse.

4.Whenfundsareborrowedtopayforconstructionofassetsthatqualifyforcapitalizationofinterest,theexcessfundsnotneededtopayforconstructionmaybetemporarilyinvestedininterest-bearingsecurities.Interestearnedonthesetemporaryinvestmentsshouldbe

a.offsetagainstinterestcostincurredduringconstruction.

b.usedtoincreasethecostofassetsbeingconstructed.

c.multipliedbyanappropriateinterestratetodeterminetheamountofinteresttobecapitalized.

d.recognizedasrevenueoftheperiod.

5.Whichofthefollowingnon-monetaryexchangetransactionshascommercialsubstance?

a.Exchangeofassetswithnodifferenceinfuturecashflows.

b.Exchangeofproductsbycompaniesinthesamelineofbusinesswithnodifferenceinfuturecashflows.

c.Exchangeofassetswithadifferenceinfuturecashflows.

d.Exchangeofanequivalentinterestinsimilarproductiveassetsthatcausesthecompaniesinvolvedtoremaininessentiallythesameeconomicposition.

6.Plantassetspurchasedonlong-termcreditcontractsshouldbeaccountedforat

a.thetotalvalueofthefuturepayments.

b.thefutureamountofthefuturepayments.

c.thepresentvalueofthefuturepayments.

d.noneofthese.

7.Duringself-constructionofanassetbySamuelsonCompany,thefollowingwereamongthecostsincurred:

Fixedoverheadfortheyear$1,000,000

Portionof$1,000,000fixedoverheadthatwould

beallocatedtoassetifitwerenormalproduction40,000

Variableoverheadattributabletoself-construction35,000

Whatamountofove,rheadshouldbeincludedinthecostoftheself-constructedasset?

a.$-0-

b.$35,000

c.$40,000

d.$75,000

8.During2010,BassCorporationconstructedassetscosting$1,000,000.Theweighted-averageaccumulatedexpendituresontheseassetsduring2010was$600,000.Tohelppayforconstruction,$440,000wasborrowedat10%onJanuary1,2010,andfundsnotneededforconstructionweretemporarilyinvestedinshort-termsecurities,yielding$9,000ininterestrevenue.Otherthantheconstructionfundsborrowed,theonlyotherdebtoutstandingduringtheyearwasa$500,000,10-year,9%notepayabledatedJanuary1,2004.WhatistheamountofinterestthatshouldbecapitalizedbyBassduring2010?

a.$60,000.

b.$30,000.

c.$58,400.

d.$94,400.

9.Inanexchangewithcommercialsubstance,HuangCompanytradedequipmentwithacostof¥8,200,000andbookvalueof¥3,120,000andgave¥4,698,000cash.Theoldmachinehadafairvalueof¥2,960,000.WhichofthefollowingjournalentrieswouldHuangmaketorecordtheexchange?

a.Equipment7,658,000

LossonExchange160,000

AccumulatedDepreciation5,080,000

Equipment8,200,000

Cash4,698,000

b.Equipment8,208,000

Equipment8,200,000

Cash8,000

c.AccumulatedDepreciation5,080,000

Equipment7,398,000

Equipment8,200,000

Cash4,698,000

d.Equipment7,658,000

AccumulatedDepreciation542,000

Equipment8,200,000

Usethefollowinginformationforquestions10–14.

LeeCompanyreceivedanHK$1,800,000subsidyfromthegovernmenttopurchasemanufacturingequipmentonJanuary,2,2011.TheequipmenthasacostofHK$3,000,000,ausefullifeasixyears,andnosalvagevalue.Leedepreciatestheequipmentonastraight-linebasis.

10.IfLeechoosestoaccountforthegrantasdeferredrevenue,thegrantrevenuerecognizedwillbe:

a.Zerointhefirstyearofthegrant'slife.

b.HK$300,000peryearfortheyears2011-2016.

c.HK$500,000peryearfortheyears2011-2016.

d.$HK1,800,000in2011.

11.IfLeechoosestoaccountforthegrantasdeferredrevenue,theamountofdepreciationexpenserecordedin2011willbe:

a.HK$0.

b.HK$200,000.

c.HK$300,000.

d.$HK500,000.

12.IfLeechoosestoaccountforthegrantasanadjustmenttotheasset,theamountofdepreciationexpenserecordedin2011willbe:

a.HK$0.

b.HK$200,000.

c.HK$300,000.

d.$HK500,000.

13.IfLeechoosestoaccountforthegrantasanadjustmenttotheasset,thebookvalueoftheassetonthe2012statementoffinancialpositionwillbe:

a.HK$800,000.

b.HK$1,200,000.

c.HK$2,800,000.

d.$HK2,400,000.

14.WhetherLeechoosestoaccountforthegrantasdeferredrevenueorasanadjustmenttotheasset,thecombinedimpactofdeferredgrantrevenuerecognitionand/ordepreciationexpenserecordedperyearwillbe:

a.decreasetonetincomeofHK$200,000.

b.decreasetonetincomeofHK$300,000.

c.increasetonetincomeofHK$500,000.

d.increasetonetincomeofHK$100,000.

Cddaccdcabdbaa

Chapter11

1.Whichofthefollowingmostaccuratelyreflectstheconceptofdepreciationasusedinaccounting?

a.Theprocessofchargingthedeclineinvalueofaneconomicresourcetoincomeintheperiodinwhichthebenefitoccurred.

b.Theprocessofallocatingthecostoftangibleassetstoexpenseinasystematicandrationalmannertothoseperiodsexpectedtobenefitfromtheuseoftheasset.

c.Amethodofallocatingassetcosttoanexpenseaccountinamannerwhichcloselymatchesthephysicaldeteriorationofthetangibleassetinvolved.

d.Anaccountingconceptthatallocatestheportionofanassetusedupduringtheyeartothecontraassetaccountforthepurposeofproperlyrecordingthefairmarketvalueoftangibleassets.

2.Whendepreciationiscomputedforpartialperiodsunderadiminishing-chargedepreciationmethod,itisnecessaryto

a.chargeafullyear'sdepreciationtotheyearofacquisition.

b.determinedepreciationexpenseforthefullyearandthenproratetheexpensebetweenthetwoperiodsinvolved.

c.usethestraight-linemethodfortheyearinwhichtheassetissoldorotherwisedisposedof.

d.usearesidualvalueequaltothefirstyear'spartialdepreciationcharge.

3.Allofthefollowingaretrueoftherecoverableamountusedintheimpairmenttestofalong-livedassetexcept:

a.Anasset’srecoverableamountisthelowerofitsvalue-in-useanditsfairvaluelesscosttosell.

b.Anasset’srecoverableamountisthehigherofitsfairvaluelesscosttosellanditsvalue-in-use.

c.Iftherecoverableamountishigherthanthecarryingvalue,animpairmentlosswillberecorded.

d.Ifanasset’srecoverableamountishigherthanthecarryingamount,noimpairmentlosswillbereportedontheperiod’sincomestatement.

4.Ofthefollowingcostsrelatedtothedevelopmentofmineralresources,whichoneisnotapartofdepletioncost?

a.Acquisitioncostofthemineralresourcedeposit

b.Explorationcosts

c.Tangibleequipmentcostsassociatedwithmachineryusedtoextractthemineralresource

d.Intangibledevelopmentcostssuchasdrillingcosts,tunnels,andshafts

5.UnderIFRS,howistheaccountGainonrevaluationofProperty,PlantandEquipmentreported?

a.As“otherrevenuesandexpenses”ontheincomestatement.

b.Aspartofothercomprehensiveincomewhichcanbepresentedinseparatestatement,combinedwithincomestatement,orinstatementofcomprehensiveincome.

c.ItisincludedwithReservesinthestockholders’equitysectionoftheStatementofFinancialPosition.

d.Theaccountisnotreportedinthefinancialstatements.

6.SolarProductspurchasedacomputerfor$13,000onJuly1,2010.Thecompanyintendstodepreciateitover4yearsusingthedouble-decliningbalancemethod.Residualvalueis$1,000.Depreciationfor2011is

a.$6,500

b.$3,250

c.$4,875

d.$3,000

7.FroelichCompanyreportedthefollowingdata:

20102011

Sales$2,000,000$2,800,000

NetIncome300,000400,000

Assetsatyearend1,800,0002,500,000

Liabilitiesatyearend1,100,0001,500,000

WhatisFroelich’sassetturnoverfor2011?

a.1.12

b.1.15

c.1.30

d.1.56

bbbcbcc

Chapter12

1.Onefactorthatisnotconsideredindeterminingtheusefullifeofanintangibleassetis

a.salvagevalue.

b.provisionsforrenewalorextension.

c.legallife.

d.expectedactionsofcompetitors.

2.BroadwayCorporationwasgrantedapatentonaproductonJanuary1,2000.Toprotectitspatent,thecorporationpurchasedonJanuary1,2011apatentonacompetingproductwhichwasoriginallyissuedonJanuary10,2007.Becauseofitsuniqueplant,BroadwayCorporationdoesnotfeelthecompetingpatentcanbeusedinproducingaproduct.Assumethatthelegallifeofpatentis20years.Thecostofthecompetingpatentshouldbe

a.amortizedoveramaximumperiodof20years.

b.amortizedoveramaximumperiodof16years.

c.amortizedoveramaximumperiodof9years.

d.expensedin2011.

3.Inabusinesscombination,theexcessofthecostofthepurchaseoverthefairvalueoftheidentifiablenetassetspurchasedis:

a.otherasse