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WGU D103 PRE-ASSESSMENT:
INTERMEDIATE ACCOUNT ING I UNITS
5-7 (JMV1) (PJMV) | QUESTIONS WITH
100% CORRECT ANSWERS | VERIFIED |
LATEST UPDATE
Question : Which compound interest table is appropriate for
this situation?
- Present value of an annuity due of 1 (4 periods, 8%)
- Present value of an ordinary annuity of 1 (4 periods, 8%)
- Present value of an ordinary annuity of 1 (16 periods, 2%)
- Present value of an annuity due of 1 (16 periods, 2%)
Correct answer: d. 2%, 16 periods. (8% / 4 quarters) (4 years
x 4 quarters) Since the payments occur at the beginning of each quarter, the annuity due factor is used to determine the value of the payments.
Question : Which transaction should be included in this list?
- Current notes receivable.
- Investments in active markets.
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- Long-term leases.
Short-term liabilities.
Correct answer: c
Question : Which of the following situations does not base an
accounting measure on present values?
- Pensions.
- Prepaid insurance.
- Leases.
- Sinking funds.
Correct answer: b
Question : Which category includes present value-based
transactions that must be evaluated based on the time value of money?
- Equity.
- Cash.
- Goodwill.
- Post retirement benefits.
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Correct answer: d
Question : Which present value-based accounting
measurement is associated with this transaction?
- Stock-based compensation.
- Disclosure.
- Long-term asset.
- Business combination.
Correct answer: All of the above answers are correct.
Question : What amount should be recorded for the cost of the
lathe?
Correct answer: The lathe is recorded at its present value of
$20,548. No calculation is required.
Question : What amount should be recorded for the purchase
of this equipment?
Correct answer: $20,000. As this is a one-year non-interest
bearing note, it is not required to discount this note even though the note is noninterest-bearing under GAAP.
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Question : What amount should Company A record for the
sale?
Correct answer: The note is recorded at its present value of
$90,703. No calculation is required.
Question : What amount must Company A consider as
proceeds from the sale of the land in order to calculate gross profit or gain/loss on the sale, and be in accordance with generally accepted accounting principles (GAAP)?
Correct answer: The note is recorded at its present value of
$495,870. No calculation is required.
Question : What amount should the company record as
service revenue from this transaction to be in accordance with generally accepted accounting principles (GAAP)?
Correct answer: The note is recorded at its present value of
$86,384. No calculation is required.