Which item does NOT result in the recording of a liability?

a.

Reasonably Possible Contingent Loss

b.

Compensated Absences

c.

Payroll Accrued

d.

Employer Tax Accrued

e.

Customer Deposits

25) Trey reports a loss of $140,000 in 2024 before tax effects. Future income is probable; tax rate 30%. 2024 Net Loss is:

Select one:

a.

$182,000

b.

$98,000

c.

$140,000

d.

$42,000

e.

$16,000

Indicate the type of Deferred Tax account created by Accrued Expenses and Accrued Revenues, respectively.

Select one:

a.

Asset, Asset

b.

Liability, Liability

c.

Asset, Liability

d.

Liability, Asset

At December 31, 20X4, Bren Co. had the following deferred income tax items:

A deferred income tax asset of $15,000 related to a current liability

A deferred income tax asset of $3,000 related to a noncurrent liability

A deferred income tax liability of $8,000 related to a current asset

Which of the following should Bren report in thenoncurrentsection(s) of its December 31, 20X4 balance sheet?

Select one:

a.

$12,000 Net Liability

b.

$10,000 Net Asset

c.

$7,000 Net Liability

d.

$7,000 Net Asset

e.

$3,000 Net Asset

29) A salvage value affects the lessee's computation of the recorded cost of the Right of Use asset if the salvage value is guaranteed, and the lessee's estimate of the salvage value is

Select one:

a.

more than the guaranteed amount

b.

less than the guaranteed amount

c.

the same as the guaranteed amount

d.

more or less than the guaranteed amount, if the lease qualifies as an operating lease

31) Under the completed-contract method:

Select one:

a.

Revenue, cost, and gross profit are recognized during the production cycle.

b.

Costs (Construction in Progress) are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed.

c.

Revenue, cost, and gross profit are not recognized until the contract is completed.

d.

Gross Profit is recognized during the production cycle, but net losses are delayed until the contract is completed.

The account "Construction in Progress" contains which of the following amounts?

Select one:

a.

Both Gross Profit recognized and estimated costs to complete

b.

Neither Gross Profit recognized nor estimated costs to complete

c.

Gross profit recognized, but not estimated costs to complete

d.

Estimated costs to complete, but not gross profit recognized

The Quinlan Construction Company began work on a three-year contract in 2022. In 2022, Collections were less than Billings, which were less than Costs plus Gross Profit recognized.The Billings amount would be used to determine a net amount for the balance sheet.That net amount would appear in

Select one:

a.

Current Assets

b.

Current Liabilities

c.

Noncurrent Assets

d.

Noncurrent Liabilities

Which statement regarding a lessee's finance lease is true?

a.

Amortization expense should be computed using the effective method

b.

The capitalized Right of Use asset should include the present value of a bargain purchase option

c.

The annual Amortization Expense will be the annual rental payment less the interest portion of that payment

d.

The annual Amortization Expense will be an increased amount each year

When treasury stock is bought for more than the par value of the stock, what account(s) should be debited?

Select one:

a.

Treasury Stock for the par value and additional paid-in capital for the excess of the cost over the par value

b.

Additional paid-in capital for the cost

c.

Common Stock for the cost

d.

Common Stock for the par value and retained earnings for the excess of the cost over the par value.

e.

Treasury Stock for the cost