7. A company places a $1.00 discount coupon inside each box of its product. During 2022 the company sold 1,000,000 units (boxes) of the product. Coupons can be used on any date in 2023. The company will recognize an expense for coupons:

a. In 2023 for the number of coupons redeemed

b. In 2023 for $1,000,000

c. In 2022 for an estimate of the number of coupons to be redeemed

d. In 2022 for $1,000,000

8. A contingent gain:

a. It is recognized if it is probable and can be reasonably estimated

b. not recognized

c. It is optional to recognize it when it is probable and can be reasonably estimated

d. Contingent gains do not exist

9. A company was sued. Your legal counsel informs you that you may have to pay compensation between $300,000 and $900,000. No number in this interval is more probable than the others. What amount should the company present as contingent debt in its balance sheet?

US GAAP IFRS

a. $600,000 $600,000

b. $300,000 $300,000

c. $300,000 $900,000

d. $300,000 $600,000

10. A company has a current ratio of 2.26 ($2.26 in current assets for every $1 in current debt). So, the company pays a current debt using cash. As a result of paying that current debt, the "current ratio" of the company:

a. It stays at 2.26

b. It will be higher than 2.26

c. It will be lower than 2.26

d. It cannot be determined if we do not know the amount of the debt paid.