follows: At December 31, 2006, Rex should report an estimated warranty liability of
Question 1
Which of the following should be disclosed for each reportable operating segment of an enterprise?
Question 2
Advertising costs may be accrued or deferred to provide an appropriate expense in each period for
Question 3
Ace Co. settled litigation on February 1, 2005 for an event that occurred during 2004. An estimated liability was determined as of December 31, 2004. This estimate was significantly less than the final settlement. The transaction is considered to be material. The financial statements for year-end 2004 have not been issued. How should the settlement be reported in Ace ' s year-end 2004 financial statements?
Question 4
When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an operating lease?
Question 5
In a sale-leaseback transaction, a gain resulting from the sale should be deferred at the time of the sale-leaseback and subsequently amortized when I. The seller-lessee has transferred substantially all the risks of ownership. II. The seller-lessee retains the right to substantially all of the remaining use of the property.
Question 6