1. LIFO layers are more likely to be liquidated when inventory records are kept on:

A) an inventory group basis.

B) a total inventory basis.

C) an item-by-item basis.

D) a specific identification basis.

2. Which of the following statements is true regarding a troubled debt restructuring?

A) In a troubled debt restructuring, there is a lack of symmetry in the financial reporting of the borrower and lender.

B) A troubled debt restructuring can only be accomplished through a continuation with modification of debt terms including cancelation of the original loan and execution of a new loan agreement.

C)In a troubled debt restructuring, GAAP restructuring gains and losses for accounting are equal to real economic gains and losses for the companies involved.

D) All accounting aspects of a troubled debt restructuring are explicitly covered by IFRS.

3. Goods available for sale is determined by

A) adding the cost of any beginning inventory and the cost of purchases during the period.

B) subtracting the cost of any ending inventory from the cost of any beginning inventory.

C) subtracting the cost of any beginning inventory from the cost of any ending inventory.

D) subtracting the cost of any beginning inventory from the cost of purchases during the period.

3. Which one of the following ratios increases with the lessees capitalization of a lease?

Multiple Choice

A) Current ratio

B) Return on equity

C) Inventory turnover

D) financial leverage

4. Consistent with ASC Topic 842, operating lease expense is equal to

A) the amortization expense recognized for financing leases.

B) the interest expense recognized for financing leases.

C) the lease expense that would have been recognized if classified as a short-term lease.

D) the amortization expense recognized if the asset had been purchased by lessee.