MC4. The use of a Deferred Tax Asset account is subject to all of the following restrictions, EXCEPT: (1 mark) A. the valuation allowance method for recognizing the deferred tax asset account is the required standard. B. when conditions change a previously unrecognized deferred tax asset account may be recognized. C. if the future taxable income is not probable, the deferred tax asset account will be removed. D. the deferred tax asset account is regularly reviewed. MC5. All of the following are decisions that may be made with financial statement analysis, EXCEPT: (1 mark) A. share offering decisions. B. share investment decisions. C. contractual decisions. D. regulatory decisions. E. lending decisions. MC6. It is important for the user to understand the financial statements in order to make an informed decision. A user must generally do all of the following, EXCEPT: (1 mark) A. If an equity investor, will generally use consolidated statements. B. If a lender, will generally use unconsolidated statements. C. All users must be able to evaluate risks. D. All of these choices are correct. MC7. The rule of thumb for the current ratio is 2:1. When would a current ratio below this threshold no necessarily be a concern for a company? (1 mark) A. When inventories are high B. When accounts receivable balances are high C. When cash flows are steady and reliable D. None of these choices are correct MC8. Solvency ratios can be further classified as: (1 mark) A. Leverage ratios. (B) Liquidity ratios. C. Fixed ratios. D. Asset ratios. MC9. Under ASPE, the defined benefit obligation is adjusted to its most recent actuarial valuation, the adjustment flows through