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    This document contains a 10 question multiple choice quiz about accounting principles for interim financial reporting. The questions cover topics such as the typical frequency of interim reporting, how to account for inventory losses, gains, and advertising costs during interim periods, and the conceptual approach to emphasizing relevance over reliability in interim financial statements. Correct answers emphasize accounting for expenses and losses in the interim period they occur, estimating full-year amounts for the interim period, and viewing interim reporting as an integral part of annual reporting.

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    This document contains a 10 question multiple choice quiz about accounting principles for interim financial reporting. The questions cover topics such as the typical frequency of interim reporting, how to account for inventory losses, gains, and advertising costs during interim periods, and the conceptual approach to emphasizing relevance over reliability in interim financial statements. Correct answers emphasize accounting for expenses and losses in the interim period they occur, estimating full-year amounts for the interim period, and viewing interim reporting as an integral part of annual reporting.

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    This document contains a 10 question multiple choice quiz about accounting principles for interim financial reporting. The questions cover topics such as the typical frequency of interim reporting, how to account for inventory losses, gains, and advertising costs during interim periods, and the conceptual approach to emphasizing relevance over reliability in interim financial statements. Correct answers emphasize accounting for expenses and losses in the interim period they occur, estimating full-year amounts for the interim period, and viewing interim reporting as an integral part of annual reporting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views4 pages

    4

    Uploaded by

    Dip Per
    This document contains a 10 question multiple choice quiz about accounting principles for interim financial reporting. The questions cover topics such as the typical frequency of interim reporting, how to account for inventory losses, gains, and advertising costs during interim periods, and the conceptual approach to emphasizing relevance over reliability in interim financial statements. Correct answers emphasize accounting for expenses and losses in the interim period they occur, estimating full-year amounts for the interim period, and viewing interim reporting as an integral part of annual reporting.

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    © All Rights Reserved
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    QUESTION 19-12 Multiple choice (AICPA Adapted)

    1. Interim financial statements are usually presented on a


    a. Monthly basis
    b. Quarterly basis
    c. Semiannual basis
    d. Nine-month basis
    2. For interim reporting, an inventory loss from a market decline in the second quarter shall be
    recognized as a loss
    a. In the fourth quarter
    b. Proportionately in each of the second, third and fourth quarters
    c. Proportionately in each of the first, second, third and fourth quarters
    d. In the second quarter
    3. For external reporting purposes, it is appropriate to use estimated gross profit rate to determine the
    cost of goods sold for
    a. Interim reporting
    b. Year-end reporting
    c. Interim reporting and year-end reporting
    d. Neither interim reporting nor year-end reporting
    4. For interim financial reporting, an expropriation gain occurring gain occurring in the second quarter
    shall be
    a. Recognized ratably over the last three quarters
    b. Recognized ratably over all four quarters with the first quarter being restated
    c. Recognized in the second quarter
    d. Disclosed in the second quarter
    5. Advertising costs incurred shall be deferred to provide an appropriate expense in each period for
    a. Interim reporting
    b. Year-end reporting
    c. Interim reporting and year-end reporting
    d. Neither interim reporting nor year-end reporting
    6. Due to a decline in market price in the second quarter, an entity incurred an inventory loss: The
    market price is expected to return to previous level by the end of the year. At the end of the year,
    the decline had not reversed. should the loss be reported in the interim income statement?
    a. Ratably over the second, third and fourth quarters
    b. Ratably over the third and fourth quarters
    c. In the second quarter
    d. In the fourth quarter
    7. Conceptually, interim financial statements can be described as emphasizing
    a. Timeliness- over reliability
    b. Reliability over relevance
    c. Relevance over comparability
    d. Comparability over neutrality
    8. Interim financial reporting should be viewed
    a. As a special type of reporting that need not follow International Financial Reporting
    Standards.
    b. As useful only if activity is evenly spread throughout the year so that estimates are
    unnecessary.
    c. As reporting for an integral part of an annual period.
    d. As reporting for a separate accounting period.
    9. Which statement about interim reporting is true?
    a. All entities that issue an annual report must issue interim financial report.
    b. The integral view is the appropriate approach in preparing interim financial
    report.
    c. A complete set of financial statements must be presented for an interim period.
    d. The same accounting principles used for the annual report should be
    employed for interim report.
    10 For interim financial reporting, the income tax expense for the second quarter should
    be computed by using the
    a.
    Statutory tax rate for the year.
    b. Effective tax rate expected to be applicable for the second quarter.
    c. Effective tax rate expected to be applicable for the full year as estimated at
    the end of the first quarter.
    d. Effective tax rate expected to be applicable for the full year as estimated at the
    end of the second quarter.

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