operating expenses is converted to accrual-basis operating expenses , what would be the amount of operating expenses ? 25 . The adjusted balance for officers ' compensation expense for the year ended December 31 , 2004 should be : 26 . According to ASC Topic 820 , which level has the lowest priority for valuation purposes ? 27 . The FASB ’ s conceptual framework classifies gains and losses based on whether they are related to an entity ’ s major ongoing or central operations . These gains or losses may be classified as 28 . Which of the following assumptions means that money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis ? 29 . A company received royalties from the assignment of patents to other enterprises . In the period in which the royalties are earned , the royalties should be ? 30 . According to the FASB Conceptual Framework , which of the following situations violates the concept of faithful representation ? 31 . The company ' s cash-basis consulting revenue is what amount ? 32 . What was the total amount of insurance premiums paid by East during 2005 ? 33 . Under Statement of Financial Accounting Concepts 8 , which of the following does not interact with both relevance and faithful representation to contribute to the usefulness of information ? 34 . According to the FASB Conceptual Framework , predictive value is an ingredient of 35 . In its Income Statement for the year ended March 31 , 2002 , what amount should Zach report as commission expense ? 36 . According to ASC Topic 820 , the fair value of an asset should be based upon 37 . Deb Co . records all sales using the installment method of accounting . Installment sales contracts call for 36 equal monthly cash payments . According to the FASB ’ s conceptual framework , the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the 38 . Recognizing depletion expense is an example of the accounting process of