100+ Free Intermediate Accounting Practice Practice Questions

accounting-foundations-and-quality-requirements

Accounting basic assumptions (entity, going concern, accounting periods, monetary measurement), accrual accounting basis, qualitative characteristics of accounting information (reliability, relevance, understandability, comparability, substance over form, materiality, prudence, timeliness), definitions and recognition criteria of assets, liabilities, equity, revenue, expenses, and profit, and measurement attributes (historical cost, replacement cost, net realizable value, present value, fair value).

inventories-and-receivables

Initial cost components of inventories (purchase price, import duties, transportation, handling, processing conversion costs, consignment processing consumption tax), inventory costing flow assumptions, lower-of-cost-and-net-realizable-value (NRV) valuation, calculation of NRV for contracted vs non-contracted raw materials and finished goods, inventory write-down recognition, partial reversal, and cost of sales carry-forward upon disposal, stocktaking differences (surpluses in management expenses vs deficits in non-operating expenses), and accounts receivable expected credit loss (ECL) provisions.

fixed-assets

Initial measurement of fixed assets, installment purchases with significant financing components (present value discounting), self-constructed assets (trial run production revenue and cost treatment), decommissioning cost provisions (弃置费用 present value and unwinding interest expense), depreciation methods (straight-line, double-declining balance, sum-of-years'-digits), subsequent capitalizable vs expensed expenditures (component replacement carrying value derecognition), and disposal accounting in gains on disposal of assets.

intangible-assets

Initial measurement of intangible assets, internal research and development (R&D) expenditure categorization (research phase expensing vs development phase capitalization criteria per CAS 6), amortization methods and useful life determinations for finite-life intangibles, treatment of indefinite-life intangible assets (no amortization, mandatory annual impairment test), accounting for land use rights (separate intangible asset vs capitalized into building cost), and intangible asset derecognition/disposal.

investment-real-estate

Scope and identification of investment real estate (leased land use rights, land held for capital appreciation, leased buildings), cost model vs fair value model subsequent measurement criteria and restrictions (no conversion from FV to cost model), conversion between owner-occupied property/inventories and investment property (fair value revaluation surplus to OCI vs deficit to P&L), and disposal accounting including recycling of revaluation surplus from OCI to other operating cost.

asset-impairment

Scope of CAS 8 long-term asset impairment standards (non-reversibility of recognized impairment losses for fixed assets, intangibles, long-term equity investments, and cost-model investment property), determination of recoverable amount (higher of fair value less costs of disposal and present value of future cash flows), identification of asset groups (资产组), allocation of impairment losses across asset groups, and multi-step goodwill impairment testing.

financial-assets-and-liabilities

Classification of financial assets based on business model and SPPI contractual cash flow characteristics into Amortized Cost (AC), Fair Value through Other Comprehensive Income (FVOCI debt and irrevocable equity designation), and Fair Value through Profit or Loss (FVTPL); initial measurement and transaction costs; effective interest method amortization; expected credit loss (ECL) 3-stage model; recycling vs non-recycling of OCI upon disposal; classification of financial liabilities; and derecognition criteria for financial asset transfers.

long-term-equity-investments-and-joint-arrangements

Initial measurement of long-term equity investments under business combinations (common control carrying amount share vs non-common control fair value consideration) and non-business combinations; Cost Method (subsidiaries in separate statements) vs Equity Method (associates and joint ventures); equity method goodwill and bargain purchase adjustments; investee net profit adjustments for fair value differentials and unrealized upstream/downstream internal transactions; investee OCI and capital reserve changes; accounting conversions between financial assets, equity method, and cost method; and joint arrangements classification (joint operations vs joint ventures per CAS 40).

bonds-payable-and-borrowing-costs

Issuance and subsequent measurement of bonds payable (face value, interest adjustment, effective interest method amortization), convertible corporate bonds bifurcation into liability and equity components (其他权益工具), borrowing cost capitalization criteria (commencement, temporary vs non-temporary suspension, cessation), specific borrowings interest capitalization (actual interest minus interest income on unutilized funds), and general borrowings weighted average capitalization rate and accumulated expenditure calculation.

revenue-costs-and-expenses

CAS 14 Revenue from Contracts with Customers 5-Step Model: (1) Identify contract, (2) Identify distinct performance obligations, (3) Determine transaction price (variable consideration constraint, significant financing component, non-cash consideration, consideration payable to customer), (4) Allocate transaction price based on relative standalone selling prices, (5) Recognize revenue over time (input/output methods) or at a point in time; contract assets vs receivables; contract liabilities; contract acquisition and fulfillment costs; and specific sales transactions (sales with right of return, sales with buyback commitments, customer reward points, principal vs agent).

government-grants-and-employee-benefits

CAS 16 Government Grants: asset-related vs income-related grants, gross method (deferred income amortization) vs net method (netting against asset carrying amount or expense), and government grant repayments; CAS 9 Employee Benefits: short-term benefits (non-monetary product welfare and VAT), post-employment benefits (defined contribution plans vs defined benefit plans actuarial gains/losses to OCI), termination benefits (immediate P&L recognition), and other long-term benefits.

income-taxes

Balance sheet liability method under CAS 18: determination of asset and liability tax bases, identification of taxable temporary differences (deferred tax liabilities) and deductible temporary differences (deferred tax assets), special initial recognition exceptions, deferred tax accounting under changing statutory tax rates, deferred tax directly recognized in equity/OCI, current income tax payable computation, and total income tax expense reconciliation.

leases

CAS 21 single lessee accounting model: identification of a lease, initial measurement of lease liability (present value of unpaid lease payments discounted at implicit interest rate or incremental borrowing rate), initial measurement of right-of-use (ROU) asset (initial liability + initial direct costs + restoration obligation - incentives received), subsequent measurement (effective interest amortization of lease liability and straight-line depreciation of ROU asset), short-term and low-value lease exemptions, and lessor finance vs operating lease classification.

foreign-currency-accounting-changes-and-subsequent-events

CAS 19 Foreign Currency Translation: spot exchange rates, translation of monetary vs non-monetary items, and foreign operation financial statement translation (translation reserve in OCI); CAS 28 Accounting Policies, Estimates and Errors: retrospective application vs prospective application criteria and retrospective restatement of material prior period errors; CAS 29 Events After the Balance Sheet Date: adjusting events (existing conditions) vs non-adjusting events; and CAS 13 Contingencies: provisions (预计负债) recognition and measurement.

consolidated-financial-statements-and-public-sector

CAS 33 Consolidated Financial Statements: scope of consolidation under the control model, consolidation work sheet procedures, elimination of parent's long-term equity investment against subsidiary equity, elimination of internal inventory, fixed asset, and creditor/debtor transactions, non-controlling interests (少数股东权益) and non-controlling profit/loss; Government Accounting Standards and System: dual accounting system (budget accounting on cash basis vs financial accounting on accrual basis) and dual financial reports; and Non-Profit Organizations Accounting: net assets classification into donor-restricted and unrestricted net assets.