11.According to U.S. GAAP, which of the following would be an operating cash flow?

A)Interest received

B)Dividends paid

C)Payments to acquire new long-term assets

D)Cash received from a bank loan

16.When an investor acquires 100% of an investee company (i.e. no NCI) and obtains outright control, purchased goodwill is calculated as follows under acquisition accounting:

A)Book value of the consideration paid less the book value of the investee's total assets at the acquisition date

B)Book value of the consideration paid less the book value of the investee's assets at the acquisition date

C)Fair value of the consideration paid less the fair value of the investee's identifiable net assets at the acquisition date

D)Fair value of the consideration paid less the book value of the investee's identifiable net assets at the acquisition date

17.Under IFRS and GAAP, how should positive goodwill be accounted for?

A)It is capitalized and amortized over a period of no more than 40 years.

B)It is expensed in the year the subsidiary is acquired.

C)It is capitalized and tested for impairment at least annually.

D)It is amortized over between 5 and 40 years.

21.Food Inc received 20 lawsuits from customers claiming that the company's products caused food poisoning . At 12/31/2020, the company's attorney thought it 59% likely that his client would be found guilty. The estimated settlement amount per case is predicated as either $50,000 or $150,000, with each outcome being 50% likely (i.e. equally likely). As at 12/31/2020, how would this situation be accounted for under IFRS and U.S GAAP?

A) A provision of $2,000,0000 would be recognized/accrued under IFRS, and a contingent liability of $1,000,000 would be recognized/accrued under US GAAP.

B)A provision of $3,000,000 would be recognized/accrued under BOTH IFRS and U.S. GAAP.

C)Both IFRS and U.S. GAAP financials would merely disclose the possible contingent liability in the notes, since the likely outcome is not certain.

D)A provision of $2,000,0000 would be recognized/accrued under IFRS, but the contingency would only be disclosed in the notes under US GAAP since the transfer of economic benefits to settle the obligation is merely "possible".

22.An oil company causes environmental contamination in a country where there is no legislation requiring clean-up. The company has a widely published environmental policy of cleaning up any contamination caused. Clean-up costs are estimated to be $10m or $15m, with each outcome equally likely. How would this be accounted for under IFRS?

A)No provision for the clean-up costs is required, as there is no obligating legislation

B)A $15m provision for the clean-up costs must be recognized.

C)A $10m provision for the clean-up costs must be recognized

D)A $12.5m provision for the clean-up costs must be recognized