Which of the following statements best describes the difference between U

1. Which of the following statements best describes the difference between U.S. GAAP and IFRS with respect to revenue recognition?

There are subtle differences in the wording of U.S. GAAP as compared with IFRS.

2. Which of the following would not be suggestive of a company recognizing sales too early?

large growth in accounts receivable

3. The installment method of revenue recognition can be used when cash collectibility is uncertain. The installment method

requires that gross profit is recognized as each installment payment is received.

4. All of the following are considered by analysts when assessing the quality of accounting except:

Any liquidation of FIFO inventory layers

5. 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.

6. A typical defined benefit pension plan formula includes all of the following except:

the fair market value of pension plan assets

7. 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.

8. 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.

9. All of the following are conditions for revenue recognition outlined by SAB 104 except:

The seller's price to the buyer can be variable.

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

the ratio of bad debt expense to sales