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Intermediate Accounting Sample Test

In: Business and Management

Submitted By buck2517
Words 1715
Pages 7
ACCT 3302
Fall 2012
Exam 3

1 (20):
2 (10):
3 (10):
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7 (5):
8(15):
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10 (5):

Total (100) _____

Name:

INSTRUCTIONS 1. Your test should include 8 pages (cover sheet plus 7 pages of test). All pages should be turned in at the completion of the exam. 2. On the problems, include ALL computations, properly labeled in the space provided. Partial credit may be given at the discretion of the instructor. 3. Calculators may be used. They cannot be shared. You may not use the calculator on a cell phone. 4. If you have a question or problem, ask the instructor. 5. The minimum penalty for academic dishonesty on this exam will be a grade of 0 for this examination. Academic dishonesty includes giving aid to or receiving aid from another student during this exam. 6. No hats. No cell phones

I certify by signing below that I have neither given nor received aid in completing this examination.

Signature Date

I. Accounting Concepts 20 points.

A. Accounting Change. ABC Company has been using specific identification inventory method. However, it has grown and has a broader array of products. The company would like to use the greater efficiency of the FIFO method on a periodic basis for financial reporting. (a) Is ABC Company allowed to change its inventory methods? Why or why not?

(b) Assuming that the company is allowed to make this accounting change, what financial reporting method will the company use in making this change?

prospective method

retrospective method

cumulative effect

B. Pension Plans. Why are defined benefit pension plans recognized on a corporate balance sheet, but defined contribution pension plans are not?

C.

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