1The costs of issuing debt under GAAP require

a*That the debit of the issuance costs be compensated with the debt to the lowest bonds

b*The debit of issuance costs is offset against the debt to increase the bonds payable

c*A debit to the debt issuance asset account which is amortized during the duration of the debt.

2-GAAP requires that if the company chooses to report bonds at fair value they

a*They must report the changes as the increase or decrease of the bonds payable

b*They must report the changes in fair value in the unrealized profit or loss account and the fair value adjustment account

c*There is no option for this under GAAP only in IFRS

3-A lease of ___ includes a non-cancelable lease term and an agreement for a reduced purchase option

a*Capital

b*Operative

c*Patrimony

4-Accounting for income taxes is consistent with the ____ accounting concept

a*Unit of measurement

b*Accrued

c*Historical cost

5-All the following elements will create a tax for deferred assets EXCEPT

a*Estimated warranty costs, the tax is deductible when paid

b*Expense for bad debts when using the provision method for accounting and direct amortization for taxes

c*Interests received in municipal bonds

6-Deferred tax assets and liabilities are classified in the Balance Sheet

a*As current and non-current depending on how the liabilities or related assets are classified

b*As current assets or liabilities, since taxes are assumed to be paid within a period of 1 year

c*As current assets but non-current liabilities, since there is no guarantee that taxes will be paid in the future depending on the profits of the company

7-Which of the following will increase the expense for the periodic pension employer in the year in which the event occurs?

a*Amortization of net earnings

b*Service costs

c*Expected return on plan assets

8-Spending for pension service and interest costs under GAAP and IFRS:

a*They are treated in the same way

b*They are amortized during future periods for IFRS but are declared expenses for GAAP

c*They are declared as GAAP expenses but accounted for only until the pension plan for IFRS is paid

9-ABC declared paid dividends in cash in January of this year to its common shareholders. The dividend

a*It will be added to the denominator of the fraction of earnings per share of the current year

b*It will be subtracted from the numerator of the fraction of earnings per share of this year

c*t has no effect on earnings per share for the next year

10-Treasury shares

a*Reduce shareholders' equity (stockholder's equity)

b*They have no effect on the shareholders' equity (stockholder's equity)

c*Increase the value of the common shares while decreasing the value of the preferred shares

11-Which of the following is an example of a change in accounting principles?

a*A change in inventory costing systems

b*A change in the life expectancy of employees under a pension plan

c*Consolidation of a new subsidiary

12-When calculating the EPS of the dividends for shares distributed in June, they are

a*Calculated retrospectively

b*Calculated from June to the end of the year

c*Not used for EPS calculations, since they are not cash dividends

13-The Statement of cash flows contains all of the following EXCEPT

a*Operation activities

b*Cash activities

c*Financing activities

cted return on plan assets