1. in a warranty liability any difference between estimate and actual cost is a change in
a. accounting procedure
b. accounting principle
c. accounting entity
d. accounting estimate
2. under the effective interest method, bond issue cots must be lumped with the discount on
bonds payable and netted against the
a. selling price of the bond
b. present value of the bond
c. market value of the bond
d. premium on bonds payable
3. in the books of the lessor, using a direct financing lease, the net investment is equal to the
a. cost of the lease
b. fairvalue of the lease
c. fairvalue of the asset
d. cost of the asset
4. under the defined benefit plan the obligation of the entity is to provide the
a. benefits to current employees
b. the benefits to current and former employees
c. the agreed benefit to current employees
d. the agreed benefit to current and former employees.
5. the revalued asset can only be carried at revalued amount if there is
a. An inflation in the economy
b. A deflation in the economy
c. An market value for the asset\
d. An active market for the asset