1. Which of the following will most likely help identify an increasing proportion of uncollectible sales?

the ratio of bad debt expense to sales

2. Which of the following is not part of the balance sheet approach when computing income tax expense?

Eliminating deferred tax assets.

3. Typical U.S. GAAP disclosures for deferred income taxes include all of the following except:

Components of permanent tax differences

4. Which of the following is not a disclosure for derivatives required under SFAS No. 133?

The specifics of a model that simulates with a 95 percent or other confidence level the minimum, maximum, or average amount of loss that a firm would incur.

5. The projected benefit obligation measures

the pension obligation on the basis of the plan formula applied to years of service to date and based on future salary levels.

6. Regarding actuarial assumptions, firms must disclose in notes to the financial statements all of the following except:

estimates of the number of retirees over the future 10 years.

7. The accumulated benefit obligation measures

the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels.

8. The major difference between accounting for pensions and the accounting for other postretirement benefits is that firms

do not need to report an excess of the accumulated benefits obligations over assets in a postretirement benefits fund as a liability on the balance sheet.

9. Which of the following best describes the accounting treatment for derivative instruments not held for purposes of hedging?

Record as an asset or liability, recognize changes in fair value currently in earnings.

10. An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is

FIFO