1. Under troubled debt restructuring, when a creditors restructured measurement of a loan is less than the current carrying value of the loan (prior to restructuring) they will record a(n)

A. extraordinary loss, net of tax

B. bad debt loss

C. contra-account to the loan as a valuation account

D. loan receivable for the difference between the carrying value of the loan (prior to restructuring) and restructured measurement of the loan

2. Unrealized holding gains and losses from equity securities classified as available-for-sale

A. are reported as extraordinary items, net of tax

B. are reported as other gains or losses

C. are reported not reported on the income statement

D. are reported as other comprehensive income

3. The measurement and reporting of stock options as an expense was one of the most politically debated topics since the inception of the CAP, APB, and FASB. The end result is that

A. there is no recognition of an expense until the stock options are exercised

B. there is only recognition of expense for stock options that have not been exercised and expired

C. there is recognition of expense only for stock options exercised in the same year they are granted

D. there is recognition of expense for stock options in the year they are granted

4. Among the competing theories related to the recording and reporting of accounting theory, the theory which views management and control as important components of the firm is the

A. commander theory

B. fund theory

C. enterprise theory

D. residual equity theory

5. One of the criticisms of the lower of cost or market rule for inventories is that it does not consider holding gains, only holding losses. A viewpoint to counter this criticism is

A. materiality

B. cost/benefit

C. conservatism

D. fair value