20. What does the FRF for SMEs require related to leases?

• a) Capitalize leases that transfer the risks and rewards of ownership to the lessee.
• b) Report all leases as operating leases.
• c) Capitalize all leases that have a term of one year or more.
• d) Report leases as capital or operating depending on how they are treated in the federal tax return. tax return

19. Which of the following is a quality that the FRF for SMEs believes helps to make financial statements useful but that the FASB considers an inappropriate quality?

• a) Timeliness
• b) Verifiability
• c) Conservatism
• d) Predictive value

18. Which of the following does not describe a requirement under the FRF for SMEs related to accounting for loss contingencies?

• a) Accrue loss contingencies when a loss is probable and estimable.
• b) Disclose loss contingencies for which a loss is at least reasonably possible.
• c) Disclose the amounts of accruals for loss contingencies.
• d) When a loss contingency is disclosed, include in the disclosure the estimated amount of a loss contingency or a statement that management cannot estimate the amount.

17. The AICPA standards now use the term "financial reporting framework" instead of an older term. What older term essentially has the same meaning?

• a) Generally accepted accounting principles
• b) Accounting standards
• c) Financial accounting concepts
• d) Basis of accounting

16. When should revenue for the sale of goods be recognized under the FRF for SMEs?

• a) When performance is achieved
• b) When delivery occurs
• c) When the price is fixed and determinable
• d) When title passes