1. Under which set of rules is the term "revaluation surplus" permitted? A) US GAAP B) IFRS C) Martian GAAP 2. The acid-test ratio excludes which of the following from the numerator? A) Cash B) Receivable C) Inventory D) Short-term investments 3. If a company wants to classify a short-term obligation they are about to refinance, the must be able to demonstrate either the ability or the intent to do so A) True B) False 4. When should a gain contingency be recorded? A) When receipt is probable. B) When it is received. C) When it can be estimated. D) None of the above. 5. If the chance of an unfavorable outcome on a contingent liability is remote, it only nee! be disclosed in the footnotes to the financial statements. A) True B) False 6. In order for a contingent liability to be recorded, a loss must be: A) Probable B) Settled C) Able to be estimated D) Both A) and C) E) Both B) and C) 7. When should the expense for an assurance warranty (not an extended warranty be! recorded? A) At the same time as the sale. B) When the guarantee work is performed (ie cash basis) C) Straight line over 2 years D) None of the above 1. Under which set of rules is the term "revaluation surplus" permitted? A) US GAAP B) IFRS C) Martian GAAP 2. The acid-test ratio excludes which of the following from the numerator? A) Cash B) Receivable C) Inventory D) Short-term investments 3. If a company wants to classify a short-term obligation they are about to refinance, the must be able to demonstrate either the ability or the intent to do so A) True B) False 4. When should a gain contingency be recorded? A) When receipt is probable. B) When it is received. C) When it can be estimated. D) None of the above. 5. If the chance of an unfavorable outcome on a contingent liability is remote, it only nee! be disclosed in the footnotes to the financial statements. A) True B) False 6. In order for a contingent liability to be recorded, a loss must be: A) Probable B) Settled C) Able to be estimated D) Both A) and C) E) Both B) and C) 7. When should the expense for an assurance warranty (not an extended warranty be! recorded? A) At the same time as the sale. B) When the guarantee work is performed (ie cash basis) C) Straight line over 2 years D) None of the above