Under ASC 326, the allowance for credit losses is measured using Under ASC 326, the allowance for credit losses is measured using: A. Historical loss rates B. Expected credit losses over the life of t

A company purchases a patent for $100,000 with a 10-year life. Amortization expense in Year 1 is A company purchases a patent for $100,000 with a 10-year life. Amortization expense in Year 1 is: A. $0

Under ASC 810, a variable interest entity (VIE) is consolidated if: Under ASC 810, a variable interest entity (VIE) is consolidated if: A. The entity has no equity investors B. The company has a contr

Which of the following is a current liability Which of the following is a current liability? A. Bonds payable due in 10 years B. Deferred tax liability C. Unearned revenue (due within 1 year) D. Mortg

A company has a $10,000 credit balance in its Allowance for Doubtful Accounts A company has a $10,000 credit balance in its Allowance for Doubtful Accounts. After writing off $5,000 in bad debts, the

A company has a $10,000 credit balance in its Allowance for Doubtful Accounts A company has a $10,000 credit balance in its Allowance for Doubtful Accounts. After writing off $5,000 in bad debts, the

Under ASC 718, share-based compensation expense is recognized over Under ASC 718, share-based compensation expense is recognized over: A. The vesting period B. The life of the option C. The contract t

A company issues 1,000 shares of $1 par value common stock for $50,000. The journal entry includes A company issues 1,000 shares of $1 par value common stock for $50,000. The journal entry includes: A

Which of the following is not a qualitative factor in goodwill impairment testing Which of the following is not a qualitative factor in goodwill impairment testing? A. Decline in market share B. Legal

A lessee classifies a lease as a finance lease if the lease term is 70% of the asset's useful life A lessee classifies a lease as a finance lease if the lease term is 70% of the asset's useful life.

Under ASC 606, a "performance obligation" is Under ASC 606, a "performance obligation" is: A. A promise to transfer goods/services to a customer B. A payment received from a customer C. A cost incurre

A company has a $50,000 deferred tax liability related to accelerated depreciation A company has a $50,000 deferred tax liability related to accelerated depreciation. If the tax rate increases from 25

Which of the following is not a component of comprehensive income Which of the following is not a component of comprehensive income? A. Net income B. Foreign currency translation adjustments C. Unreal

Under ASC 815, a derivative instrument is designated as a hedge if Under ASC 815, a derivative instrument is designated as a hedge if: A. It is used for speculative purposes B. It is used to reduce ri

An entity receives $1,000 for a 12-month service contract. If 3 months have passed, the unearned revenue is An entity receives $1,000 for a 12-month service contract. If 3 months have passed, the unea

A company purchases equipment for $100,000 with a 5-year life. Under MACRS A company purchases equipment for $100,000 with a 5-year life. Under MACRS, the Year 1 depreciation is: A. $20,000 B. $25,000

Under ASC 740, a deferred tax asset for a net operating loss carryforward is recognized if Under ASC 740, a deferred tax asset for a net operating loss carryforward is recognized if: A. The company ha

Which of the following is a permanent difference for tax purposes Which of the following is a permanent difference for tax purposes? A. Depreciation (book vs. tax) B. Estimated warranty costs C. Inter

A company issues convertible bonds. The equity component is allocated A company issues convertible bonds. The equity component is allocated: A. Based on relative fair values at issuance B. Based on pa

Under ASC 825, which financial instrument is measured at fair value with changes in fair value reported in OCI Under ASC 825, which financial instrument is measured at fair value with changes in fair

When a company acquires a subsidiary, goodwill is measured as When a company acquires a subsidiary, goodwill is measured as: A. Fair value of consideration paid minus fair value of net assets acquired

A lessee records a right-of-use asset for an operating lease A lessee records a right-of-use asset for an operating lease: A. Always B. Never C. Only if it's a finance lease D. Only if it's a capita

Under ASC 842, a lease is classified as a finance lease if Under ASC 842, a lease is classified as a finance lease if: A. The lease term is >75% of the asset's useful life B. The present value of lea

A company sells a product with a 30-day return policy. Revenue should be recognized A company sells a product with a 30-day return policy. Revenue should be recognized: A. When the product is shipped

Under ASC 606, revenue from a software license should be recognized when Under ASC 606, revenue from a software license should be recognized when: A. The customer pays the license fee B. The software