1) Starlight Ltd. assigned $600,000 of Accounts Receivable to Moonbeam Management as security for a loan of $580,000. Moonbeam charged a 3% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Starlight collected $320,000 of the assigned accounts, after deducting $500 of discounts. As well, Starlight accepted returns worth $2,600 and wrote off assigned accounts totalling $4,500. The amount of cash Starlight received from Moonbeam at the time of the transfer was

A

$280,000.

B

$378,000.

C

$582,000.

D

$562,600.

2) You want to improve the qualitative characteristics of your firm's financial statements. Which of the following options would most likely improve the timeliness of your company's financial statements?

A	Decreasing the useful life of property, plant and equipment from ten years to five.

B	Increasing the number of disclosures.

C	Changing the timing of when revenues are recognized.

D	Increasing the frequency of statements from annually to quarterly.

3) In the absence of specific GAAP guidance, an entity should adopt accounting policies that are i. consistent with specific GAAP guidance. ii. consistent with the most conservative reporting choices. iii. collaboratively developed with the assistance of all business units. iv. developed through exercising professional judgement and applying the conceptual framework.

A	i, ii, and iii

B

i and iii

C

i and iv

D

ii and iv