Double entry bookkeeping means Double entry bookkeeping means: A. Every transaction affects only one account B. Every transaction has equal debit and credit entries C. Only revenues need dual entries

Which of the following is a current asset Which of the following is a current asset? A. Office building B. Machinery C. Trade receivables D. Long-term investment Answer: C Explanation: Current assets

Under UK accounting rules, which accounting basis is required for most businesses Under UK accounting rules, which accounting basis is required for most businesses? A. Cash basis B. Accrual basis C. T

What is the fundamental accounting equation What is the fundamental accounting equation? A. Assets = Liabilities - Equity B. Assets = Liabilities + Equity C. Assets + Liabilities = Equity D. Equity =

Which body sets the UK GAAP for small and medium-sized enterprises Which body sets the UK GAAP for small and medium-sized enterprises? A. HMRC B. Financial Reporting Council (FRC) C. International Acc

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,