Which of the following is a key principle of ASC 606 Which of the following is a key principle of ASC 606? A. Revenue is recognized when cash is received B. Revenue is recognized when control transfer

A company issues $1,000,000 of 8% bonds at 98. The discount is A company issues $1,000,000 of 8% bonds at 98. The discount is: A. $0 B. $20,000 C. $80,000 D. $980,000 Answer: B Explanation: Discount =

Under ASC 815, a fair value hedge of a forecasted transaction is Under ASC 815, a fair value hedge of a forecasted transaction is: A. Allowed B. Not allowed C. Only for interest rate risk D. Only for

Which of the following is not a cash flow from investing activities Which of the following is not a cash flow from investing activities? A. Purchase of equipment B. Sale of land C. Purchase of treasur

A company has a $100,000 loan with 5% interest. The interest expense for the year is A company has a $100,000 loan with 5% interest. The interest expense for the year is: A. $5,000 B. $500 C. $50,000

Under ASC 820, Level 3 inputs are Under ASC 820, Level 3 inputs are: A. Quoted prices in active markets B. Inputs observable for the asset C. Unobservable inputs D. Inputs from similar assets Answer:

A company has a $50,000 deferred tax liability related to depreciation A company has a $50,000 deferred tax liability related to depreciation. If the tax rate decreases from 30% to 25%, the deferred t

Which of the following is a qualitative factor in impairment testing Which of the following is a qualitative factor in impairment testing (ASC 350)? A. Decline in market share B. Current operating los

A company reports $200,000 net income, $30,000 depreciation A company reports $200,000 net income, $30,000 depreciation, and $15,000 decrease in accounts payable. Operating cash flow is: A. $215,000 B

Under ASC 842, the lease liability is measured at Under ASC 842, the lease liability is measured at: A. The present value of future lease payments B. The fair value of the leased asset C. The asset's

Which of the following is a key difference between IFRS and US GAAP for inventory Which of the following is a key difference between IFRS and US GAAP for inventory? A. IFRS allows LIFO B. US GAAP allo

A company has a defined benefit pension plan. The pension expense includes A company has a defined benefit pension plan. The pension expense includes: A. Service cost only B. Service cost, interest co

Under ASC 606, a "bundle" of goods/services is treated as Under ASC 606, a "bundle" of goods/services is treated as: A. A single performance obligation B. Multiple performance obligations C. Only if t

Which of the following is not a component of retained earnings Which of the following is not a component of retained earnings? A. Net income B. Dividends declared C. Treasury stock D. Prior period adj

A company has a $50,000 note payable due in 2 years A company has a $50,000 note payable due in 2 years. The current portion is $10,000. The non-current portion is reported as: A. $10,000 B. $40,000 C

Under ASC 815, a fair value hedge of a debt instrument is used to hedge Under ASC 815, a fair value hedge of a debt instrument is used to hedge: A. The fair value of the debt B. The interest rate risk

Which of the following is a current asset Which of the following is a current asset? A. Land B. Equipment C. Inventory D. Bonds payable Answer: C Explanation: Inventory is a current asset. Land and eq

A company reports a gain on sale of equipment. This gain is A company reports a gain on sale of equipment. This gain is: A. Included in operating income B. Included in non-operating income C. Deducted

Under ASC 820, fair value hierarchy levels are based on Under ASC 820, fair value hierarchy levels are based on: A. The type of asset B. The level of observable inputs C. The company's accounting pol

A company has a 10% convertible bond with a face value of $100,000 A company has a 10% convertible bond with a face value of $100,000. The conversion ratio is 20 shares per $1,000 bond. If converted,

Which of the following is a non-cash investing activity Which of the following is a non-cash investing activity? A. Purchase of equipment for cash B. Issuance of common stock for equipment C. Sale of

Under ASC 815, a cash flow hedge is used to hedge Under ASC 815, a cash flow hedge is used to hedge: A. The fair value of a fixed asset B. The variability in cash flows from a forecasted transaction C

When a company issues a stock dividend, it When a company issues a stock dividend, it: A. Increases total shareholders' equity B. Decreases total shareholders' equity C. Has no effect on shareholder

A company has a $10,000 deferred tax asset related to a net operating loss A company has a $10,000 deferred tax asset related to a net operating loss. If the company expects to have taxable income in

Which of the following is not a criterion for a lease to be classified as a finance lease under ASC 842 Which of the following is not a criterion for a lease to be classified as a finance lease under