Revenue from a contract with a customer

is recognized when the customer receives the rights to receive consideration.

is recognized even if the contract is still wholly unperformed.

can be recognized even when a contract is still pending.

cannot be recognized until a contract exists.

When a change in the tax rate is enacted into law, its effect on existing deferred income tax accounts should be

handled retroactively in accordance with the guidance related to changes in accounting principles.

considered, but it should only be recorded in the accounts if it reduces a deferred tax liability or increases a deferred tax asset.

applied to all temporary or permanent differences that arise prior to the date of the enactment of the tax rate change, but not subsequent to the date of the change.

reported as an adjustment to income tax expense in the period of change.

Major reasons for disclosure of deferred income tax information is (are)

better assessment of quality of earnings.

better predictions of future cash flows.

predicting future cash flows for operating loss carryforwards.

All of these answer choices are correct.

Differing measures of the pension obligation can be based on

all years of serviceboth vested and nonvestedusing current salary levels.

only the vested benefits using current salary levels.

both vested and nonvested service using future salaries.

All of these answers are correct.

Which of the following statements about the expected postretirement benefit obligation (EPBO) is not correct?

The EPBO is an actuarial present value.

The EPBO is recorded in the accounts.

The EPBO is used in measuring periodic expense.

The EPBO is an actuarial present value and is used in measuring periodic expense.