Reference no: EM132888974

Problem 1: Which of the following additional disclosures must be made when an entity chooses the cost model as the accounting policy for investment property?

a. Present value of the property

b. Fair value of the property

c. Net realizable value of the property

d. The discounted value of the property

Problem 2: Which of the following best describes the expense approach of accounting for warranty cost?

a. Expensed when paid

b. Expensed when incurred

c. Expensed when warranty claims are certain

d. Expensed when liability is accrued

Problem 3: Which of the following components of defined benefit cost shall be recognized through other comprehensive income?

a. past service cost

b. current service cost

c. remeasurement

d. net interest

Problem 4: Which of the following is most likely item to result in a deferred tax asset?

a. Using the cost recovery method of recognizing construction revenue for tax purposes but using percentage of completion method for financial reporting purposes

b. Using accelerated depreciation for tax purposes but straight line depreciation for accounting purposes

c. Prepaid expense

d. Unearned expense