1. A gain on the sale of plant assets in the ordinary course of business should be presented in a statement of cash flows as a (an)

A. Source and use of cash

B. Use of cash

C. Addition to income from continuing operations

D. Deduction from income from continuing operations

2. What is reported on the statement of cash flows?

A. Operating, investing, and financing activities of an entity for a period of time

B. All revenues and expense listed by operating, financing, and operating actitivity

C. Operating, investing, and financing activities of an entity at the balance sheet date

D. A detail of all incoming and outgoing cash flows of a business

3. Fair value is used in financial reporting for each of the following Investment securities

A. Investment securities

B. Tax returns

C. Derivatives

D. Pensions

4. ASC Topics 820 defines fair value as

A. The historical cost plus interest

B. The price that would be received to sell an asset at cost

C. The price that would be paid to transfer a liability in the future

D. The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date

5. All of the following are substantive testing approaches for fair value except

A.Testing management's process

B. Developing an independent fair value estimate for corroborative purposes

C. Referring to an expert in fair valuation

D. Reviewing subsequent events and transactions

6. Proponents of expanding fair value accounting rules argue that

A. Fair value makes financial reporting more relevant to users

B. Fair value makes financial reporting more timely to users

C. Fair value makes financial reporting more clear to users

D. Fair value makes financial reporting more conservative to users

7. Most fair value discussions center around the financial industry because

A. Fair value assets are used only in those industries

B. Fair value assets are more prevalent and important there

C. Fair value assets are used to determine bonuses

D. Fair value assets are used to calculate net income