Question

1The costs of issuing debt under GAAP require

a*That the debit of the issuance costs be compensated with the debt to the lowest bonds

b*The debit of issuance costs is offset against the debt to increase the bonds payable

c*A debit to the debt issuance asset account which is amortized during the duration of the debt

2-GAAP requires that if the company chooses to report bonds at fair value they

a*They must report the changes as the increase or decrease of the bonds payable

b*They must report the changes in fair value in the unrealized profit or loss account and the fair value adjustment account

c*There is no option for this under GAAP only in IFRS

3-A lease of ___ includes a non-cancelable lease term and an agreement for a reduced purchase option

a*Capital

b*Operative

c*Patrimony

4-Accounting for income taxes is consistent with the ____ accounting concept

a*Unit of measurement

b*Accrued

c*Historical cost

5-All the following elements will create a tax for deferred assets EXCEPT

a*Estimated warranty costs, the tax is deductible when paid

b*Expense for bad debts when using the provision method for accounting and direct amortization for taxes

c*Interests received in municipal bonds

Answer 1