When presenting long-term debt note disclosures generally indicate

	A.	conversion privileges
	B.	interest rates
	C.	maturity dates
	D.	all of the above

1 points

Question 2

When companies report financial instruments at fair value the method is applied

	A.	by comparing the total carrying value of the portfolio to the total fair value of the portfolio
	B.	on an instrument-by-instrument basis

1 points

Question 3

The least reliable measurement of fair value is

	A.	quoted prices
	B.	similar assets and liabilities
	C.	unobservable inputs

1 points

Question 4

After the Alexander Company liquidated its short-term debt on February 2, 2015 it reported long-term debt on its December 31, 2014 balance sheet of

	A.	$0
	B.	$300,000
	C.	$900,000
	D.	$1,200,000

1 points

Question 5

A deferred tax liability represents the increase in

	A.	taxes payable
	B.	taxes refundable (or saved)

1 points

Question 6

The FASB defines liabilities as

	A.	economic benefits
	B.	probable future sacrifices
	C.	residual interest

1 points

Question 7

Nonrefundable upfront fees are payments to customers before

	A.	delivery of a product
	B.	performance of a service
	C.	both A or B
	D.	neither A nor B

1 points

Question 8

Within troubled-debt restructurings creditors should account for the noncash assets or equity interest received at their

	A.	carrying value
	B.	face value
	C.	fair value
	D.	par value

1 points

Question 9

IFRS

	A.	does not require the use of the effective-interest method
	B.	requires the use of the efffective-interest method

1 points

Question 10

Gain contingencies are

	A.	not recorded
	B.	recorded

1 points

Question 11

A deferred tax assets represents the increase in

	A.	taxes payable
	B.	taxes refundable (or saved)

1 points

Question 12

Unamortized bond issue costs are treated as

	A.	a contra-asset
	B.	a contra-liability
	C.	a deferred charge
	D.	a long-term liability

1 points

Question 13

The FASB allows special accounting for

	A.	cash flow hedges
	B.	fair value hedges
	C.	both A and B
	D.	neither A nor B

1 points

Question 14

A long-term notes payable is valued at the present value of its

	A.	future interest
	B.	principal cash flows
	C.	both A and B
	D.	neither A nor B

1 points

Question 15

A company that displayed a shocking and inappropriate use of off-balance sheet financing to hide debt was

	A.	AIG
	B.	Bausch & Lomb
	C.	Enron
	D.	Merrill Lynch

1 points

Question 16

When debt is extinguished the entire issue is called at its

	A.	carrying amount
	B.	net carrying amount
	C.	reacquisition price
	D.	none of the above

1 points

Question 17

Self-insurance is

	A.	insurance
	B.	risk assumption

1 points

Question 18

Revenue cannot be recognized until

	A.	a contract exists
	B.	an invoice exists
	C.	a purchase order exists

1 points

Question 19

A company should disclose the significant components of income tax expense in the

	A.	income statement
	B.	notes to the financial statements
	C.	both A or B
	D.	neither A nor B

1 points

Question 20

Impairments in investments represent a

	A.	a loss in value that is other than temporary
	B.	a loss in value that is temporary

1 points

Question 21

A contingency is an existing condition, situation, or set of circumstances that will ultimately be resolved when one or more future events

	A.	occur
	B.	fail to occur
	C.	A and B
	D.	A or B

1 points

Question 22

If the probability of loss is remote, accountants

	A.	accrue
	B.	footnote
	C.	ignore

1 points

Question 23

The first step in the revenue recognition process is to

	A.	allocate the transaction price to the separate performance obligations
	B.	determine the transaction price
	C.	identify the contract with customers
	D.	identify the separate performance obligations in the contract

1 points

Question 24

Federal and state unemployment insurance is paid by the

	A.	employee
	B.	employer

1 points

Question 25

When one corporation acquires a voting interest of more than 50 percent in another corporation the investment in the subsidiary is reported on the parent's balance sheet as

	A.	an intangible asset
	B.	a long-term investment
	C.	a short-term investment

1 points

Question 26

Using the losses of one year to offset the profits of other years is permitted under

	A.	federal tax laws
	B.	generally accepted accounting principles
	C.	international financial reporting standards

1 points

Question 27

In regard to making effective business decisions the FASB believes that fair value information is

	A.	relevant
	B.	reliable

1 points

Question 28

The FASB believes that fair value measurement for financial instruments, including financial liabilities, provides more

	A.	relevant information
	B.	understandable information
	C.	both A and B
	D.	neither A nor B

1 points

Question 29

If companies invest in equity and management intends to sell the securities, the valuation approach is

	A.	amortized cost
	B.	equity method
	C.	fair value

1 points

Question 30

A contract modification is

	A.	a change in contract terms after the contract expires
	B.	a change in contract terms while it is ongoing

1 points

Question 31

Long-term debt consist of probable future sacrifices of economic benefits arising from present obligations that are

	A.	not payable within a year
	B.	payable within a year

1 points

Question 32

Derivatives are recognized in the financial statements as

	A.	assets and liabilities
	B.	revenues and expenses
	C.	stockholders' equity

1 points

Question 33

Contract assets are

	A.	unconditional rights
	B.	conditional rights
	C.	both A and B
	D.	neither A nor B

1 points

Question 34

The amount of interest that is actually recorded as interest expense is calculated by multiplying the

	A.	market rate to the carrying value
	B.	market rate to the face value
	C.	stated rate to the carrying value
	D.	stated rate to the face value

1 points

Question 35

Companies should classify deferred tax accounts on the balance sheet in

	A.	one category
	B.	two categories
	C.	three categories
	D.	four categories

1 points

Question 36

The difference between the present value and maturity value of current liabilities is considered

	A.	immaterial
	B.	material

1 points

Question 37

If an investor holds 35% of an investee's voting stock, the income effect is

	A.	dividends declared
	B.	gains and losses from sale
	C.	not applicable
	D.	the proportionate share of investee's net income

1 points

Question 38

When reporting available-for-sale debt securities "Accumulated Other Comprehensive Loss" appears within

	A.	Other expenses and losses
	B.	Other revenues and gains
	C.	Stockholders' equity

1 points

Question 39

An example of a compensated absence is

	A.	holidays
	B.	illness
	C.	vacation
	D.	all of the above

1 points

Question 40

When payment is received before delivering goods or rendering services the amount is reported as

	A.	revenue
	B.	unearned revenue

1 points