Under contract law, consideration requires: Under contract law, consideration requires: A. A gift promise B. Bargained-for exchange of legal detriment C. Notarized contract D. Written contract Answer:

What is the statute of limitations for IRS assessment of tax return with substantial understatement of income What is the statute of limitations for IRS assessment of tax return with substantial under

Which entity provides limited liability to all owners and is a pass-through for federal income tax Which entity provides limited liability to all owners and is a pass-through for federal income tax? A

Which items are deductible for AGI on individual tax return Which items are deductible for AGI on individual tax return? A. Student loan interest B. Trade or business expenses of a self-employed perso

Under UCC Article 2 Sales, a merchant’s firm offer: Under UCC Article 2 Sales, a merchant’s firm offer: A. May be revoked any time before acceptance B. Is irrevocable for the time stated,

Which of the following is a requirement to form a general partnership Which of the following is a requirement to form a general partnership? A. Written formal partnership agreement required by law B.

A taxpayer sells a capital asset and realizes a capital loss. For individual tax A taxpayer sells a capital asset and realizes a capital loss. For individual tax, net capital loss deduction limit agai

For individual federal income tax, what is the tax treatment of ordinary dividends For individual federal income tax, what is the tax treatment of ordinary dividends? A. Always tax-exempt B. Taxed at

Which accounts are closed at year-end Multi-select (choose two): Which accounts are closed at year-end? A. Sales revenue B. Rent expense C. Accounts receivable D. Common stock Answer: A, B Explanation

Which of the following is a period cost? Which of the following is a period cost? A. Factory raw material B. Factory machine depreciation C. Sales commission D. Direct labor Answer: C Explanation: Sal

Noncontrolling interest (NCI) in consolidated financial statements is classified as: Noncontrolling interest (NCI) in consolidated financial statements is classified as: A. Liability B. Equity C. Asse

Under US GAAP, development costs for internal-use software are: Under US GAAP, development costs for internal-use software are: A. Expensed as incurred B. Capitalized once technological feasibility is

Treasury stock purchased by a corporation is recorded as: Treasury stock purchased by a corporation is recorded as: A. Asset on balance sheet B. Contra-equity account C. Liability D. Investment income

A contingent loss is accrued when: A contingent loss is accrued when: A. Loss is remote B. Loss is reasonably possible C. Loss is probable and estimable D. Loss is possible but cannot estimate amount

Which items are cash flows from operating activities Which items are cash flows from operating activities? A. Cash received from customers B. Cash paid for employee salaries C. Cash paid to purchase e

Which of the following financial statements is required for a full set of US GAAP financial statements Which of the following financial statements is required for a full set of US GAAP financial state

Revenue recognition core principle under ASC 606: Revenue recognition core principle under ASC 606: A. Recognize revenue when cash is received B. Recognize revenue when performance obligation is satis

A change in accounting estimate is accounted for A change in accounting estimate is accounted for: A. Retrospectively, restate prior year financial statements B. Prospectively in current and future pe

Lease accounting under ASC 842: lessee recognizes right-of-use asset and lease liability for Lease accounting under ASC 842: lessee recognizes right-of-use asset and lease liability for: A. All leases

Which of the following is a component of other comprehensive income Which of the following is a component of other comprehensive income (OCI)? A. Gain on sale of equipment B. Unrealized gain on availa

Goodwill arising from a business combination under US GAAP is: Goodwill arising from a business combination under US GAAP is: A. Amortized over 10 years B. Tested annually for impairment C. Expensed i

A company issues bonds at a discount. The bond discount is A company issues bonds at a discount. The bond discount is: A. Added to bonds payable on balance sheet B. Amortized as additional interest ex

Under US GAAP, inventory is measured at Under US GAAP, inventory is measured at: A. Historical cost only B. Lower of cost or net realizable value C. Fair value always D. Replacement cost Answer: B Exp

Which of the following is a multi-select question Which of the following is a multi-select question (choose two answers):Which of the following affect the auditor’s determination of materiality?

For an integrated audit of an issuer under PCAOB standards, the auditor must: For an integrated audit of an issuer under PCAOB standards, the auditor must: A. Audit financial statements and audit inte