1. Which of the following is a reason why lease accounting under U.S. GAAP and IFRS were revised?

• It was too easy for firms to circumvent lease capitalization criteria.
• To enhance comparability for analyzing different companies' financial statements.
• Operating leases were a popular means of off-balance sheet financing.
• All of these answer choices are correct.

2. A temporary difference that causes book income to be greater than or less than taxable income when it is initially recorded is a/an:

Multiple Choice

• reversing temporary difference.
• originating temporary difference.
• permanent difference.
• minor difference.

3. The net pension liability that must be shown on the balance sheet of the plan sponsor is the:

Multiple Choice

• accumulated benefit obligation.
• projected benefit obligation.
• excess of the accumulated benefit obligation over the plan assets at fair value.
• excess of the projected benefit obligation over the fair value of plan assets.