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英文会計検定 1級

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When is a “gain contingency” recorded in the financial statements?

Gain contingencies are not recognized until they are realized (settled), following the principle of…

2026年5月18日

A Type 1 (recognized) subsequent event requires:

Type 1 events provide additional evidence about conditions that existed at the balance sheet date a…

2026年5月18日

What creates a “Deferred Tax Liability”?

When tax depreciation exceeds book depreciation, taxable income is lower now but will be higher lat…

2026年5月18日

Which of the following would NOT potentially dilute EPS?

Non-convertible preferred stock is not a potential common share and thus does not enter the diluted…

2026年5月18日

When a fixed asset is sold, the gain or loss is reported:

Gains and losses on the disposal of fixed assets are generally reported as other operating income o…

2026年5月18日

If an exchange has “commercial substance,” at what value is the new asset recorded?

Commercial substance requires the use of fair values for recording the transaction and recognizing …

2026年5月18日

Which inventory method is conceptually the “closest” matching of current costs to current revenues?

LIFO matches the most recent costs against current revenues on the income statement.

2026年5月18日

Using the indirect method, an increase in “Accounts Payable” is:

An increase in accounts payable means expenses were recorded but cash was not yet paid, so it is ad…

2026年5月18日

What is the accounting for an investment in common stock where the investor has “significant influence”?

Significant influence (typically 20-50% ownership) requires the use of the equity method of account…

2026年5月18日

Where is the “Cumulative Translation Adjustment” (CTA) reported?

CTA arises from translating foreign currency financial statements and is reported in the equity sec…

2026年5月18日