Company A has unconditional rights to receive consideration because a performance obligation has been satisfied. This unconditional right:

None of these answers are correct

should be reported as a contract asset on Company A's balance sheet.

should be reported as a receivable on Company A's balance sheet.

should be reported as a contract liability on Company A's balance sheet.

should not be reported on Company A's balance sheet.

2

Changes in long-term liabilities and stockholders' equity will typically be shown in the ___________ activities section of the Statement of Cash Flows.

Operating

Financing

None of these answers are correct

Capital

Investing

The accounting for compensation expense related to stock options depends on the accounting method used. Under the intrinsic value method, compensation expense resulting from an incentive stock option is

allocated to the periods benefited by the employee's required service.

recognized in the period of exercise.

none of these answers are correct

not recognized if the market price does not exceed the option price at the date of grant.

recognized in the period of the grant.

A company's Taxable Income amount is determined based on which of the following?

Generally Accepted Accounting Principles (GAAP)

None of these answers are correct

Internal Revenue Code (IRS) Regulations

Securities and Exchange Commission (SEC) Regulations

Financial Accounting Standards Board (FASB) Pronouncements

Which of the following statements is true?

In a defined-benefit pension plan, employees make voluntary contributions.

In a defined-benefit pension plan, the risk is assumed by the employee.

None of these answers are correct.

In a defined-contribution pension plan, the risk is assumed by the employer.

In a defined-benefit pension plan, actuaries determine the amount of contributions employers must make.