When a company received $$2,000$ of refundable deposit from customers, the company should

record:

A$)$ a credit to revenue of $$2,000.$

B$)$ a debit to deferred revenue of $$2,000.$

C$)$ a debit to liability of $$2,000.$

D$)$ a credit to liability of $$2,000.$

Hoosier company filed a lawsuit against a customer for contracts rejected in $2023.$ The

lawsuit is in final appeal and attorney advises that it is virtually certain that Hoosier will be

awarded $$2$ million. Hoosier should:

A$)$ record $$2$ million of gain in $2023$ financial statement under U$.$S$.$ GAAP.

B$)$ record $$2$ million of loss in $2023$ financial statement under U$.$S$.$ GAAP.

C$)$ record $$2$ million of gain in $2023$ financial statement under IFRS.

D$)$ record $$2$ million of loss in $2023$ financial statement under IFRS.

In $2023,$ the state of New Jersey is in the process of investigating ABC company for violation

of environmental laws. A penalty assessment has not been proposed yet. The company's

attorney feels an assessment is reasonably possible, and if an assessment is made, a payment

of $$5$ million is probable. Under U$.$S$.$ GAAP, ABC company should:

A$)$ record $$5$ million of loss in $2023$ financial statement.

B$)$ record $$5$ million of gain in $2023$ financial statement.

C$)$ not record any loss in $2023$ financial statement.

D$)$ the accounting treatment can not be determined.

Debt issue costs for a bond issued at discount:

A$)$ should be recorded as expense in the period the debt is issued.

B$)$ should result in a decrease in the effective interest rate.

C$)$ should increase the cash proceeds from the sale of bond.

D$)$ should be combined with any discount on bonds payable and amortized over the bond's

term to maturity.

Green Industries purchased a machine from Cyan Corporation on January $1,2023.$ In

payment for the $$148,000$ purchase, Green issued a two$-$year installment note to be paid in

equal payments of $$6,761$ at the end of each month beginning January $31,2023.$ What was

the effective interest rate in the transaction?

A$)8\%$

B$)9\%$

C$)12\%$

D$)14\%$