Typical U

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

Components of permanent tax differences

2. 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.

3. If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries, the company may seek out more tax effective ways of operating abroad through all of the following means except:

Shift from debt to equity financing of foreign operations to increase interest deductions against foreign-source income.

4. 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.

5. All of the following are most likely to change the FMV of pension plan assets during a given period except:

Changes in Internal Revenue Service regulations for future tax deductible amounts of contributions.

6. Which of the following is not a distinguishing characteristic of a derivative instrument?

Derivative instruments are highly effective throughout their term.

7. When input prices are increasing, companies that use the LIFO method of accounting for inventory will report

Lower gross profit margins in comparison to the FIFO method

8. All of the following are true regarding accrual accounting except:

Accrual basis for the recognition of expenses is not required under IFRS.

9. 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.

10. To calculate a company's average tax rate an analyst would

Divide income tax expense by income before taxes