Download Past Paper On Intermediate Accounting II For Revision
Intermediate Accounting II dives into the most challenging sections of the balance sheet: the “right-hand side.” This course focuses on complex liabilities, stockholders’ equity, and specialized topics like leases, pensions, and income tax accounting. To excel in this exam, you must go beyond basic entries and master the valuation and disclosure requirements for sophisticated financial instruments.
Below is the exam past paper download link
BFC-3275-INTERMEDIATE-ACCOUNTING-II-
Above is the exam past paper download link
To help you balance your knowledge of complex structures, we have synthesized the most frequent “advanced” questions found in Intermediate Accounting II past papers.
Intermediate Accounting II: Key Revision Q&A
Q1: How do you account for “Bond Issuances” at a Discount or Premium?
A: Bonds are rarely issued at face value because the Market Rate often differs from the Stated Rate.
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Discount: Market Rate > Stated Rate (Bond sells for less than face value).
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Premium: Market Rate < Stated Rate (Bond sells for more than face value).
The Effective Interest Method is the standard for amortizing these amounts over the bond’s life to ensure interest expense reflects the true cost of borrowing.
Q2: What is the difference between “Operating Leases” and “Finance Leases” (IFRS 16 / ASC 842)?
A: Under modern standards, most leases are recognized on the balance sheet.
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Finance Lease: The lessee essentially “owns” the asset for the lease term, recognizing a Right-of-Use (ROU) Asset and a Lease Liability.
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Operating Lease: Often used for shorter terms, but still requires the recognition of an asset and liability, though the expense pattern differs.
Q3: Explain “Dilutive Securities” and Earnings Per Share (EPS).
A: Dilutive securities are instruments like convertible bonds or stock options that could potentially reduce EPS.
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Basic EPS: Calculated using actual outstanding shares.
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Diluted EPS: A “worst-case scenario” calculation that assumes all convertible securities are converted into common stock.
$$\text{Basic EPS} = \frac{\text{Net Income} – \text{Preferred Dividends}}{\text{Weighted Average Common Shares Outstanding}}$$
Q4: How do you account for “Deferred Income Taxes”?
A: Differences between Accounting Income and Taxable Income create:
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Deferred Tax Liabilities (DTL): When future taxable income will be higher than future accounting income (e.g., accelerated depreciation for tax).
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Deferred Tax Assets (DTA): When a company has “overpaid” taxes or has carryforwards that will reduce future tax bills.
Q5: What are the components of “Stockholders’ Equity”?
A: This section is more than just common stock. It includes:
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Paid-in Capital: Par value plus Additional Paid-in Capital (APIC).
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Retained Earnings: Accumulated net income not distributed as dividends.
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Treasury Stock: Shares the company has bought back (a contra-equity account).
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Accumulated Other Comprehensive Income (AOCI): Unrealized gains/losses.
Why Practice with Intermediate Accounting II Past Papers?
Exams at this level are Calculation-Intensive and Case-Heavy. You won’t just define a “Pension Plan”; you will be given a set of actuarial assumptions and asked to “Calculate the Pension Expense and the Projected Benefit Obligation (PBO).”
By practicing with our past papers, you will:
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Master Complex Journal Entries: Practice the “book-entry” for stock splits, stock dividends, and bond retirements.
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Refine Statement Presentation: Learn how to properly disclose Contingent Liabilities (lawsuits, warranties) in the notes to the financial statements.
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Analyze Dilution: Practice the “if-converted” method and “treasury stock” method for complex EPS problems.
Access the Full Revision Archive
Ready to tackle the complexities of the credit side? We have organized a comprehensive PDF library containing five years of Intermediate Accounting II past papers, complete with step-by-step amortization schedules, EPS calculation worksheets, and model answers for lease accounting.