1. Members of the Financial Accounting Standards Board are
A) employed by the American Institute of Certified Public Accountants (AICPA).
B) part-time employees.
C) required to hold a CPA certificate.
D) independent of any other organization.


2. Which of the following is not a publication of the FASB?
A) Statements of Financial Accounting Concepts
B) Accounting Research Bulletins
C) Interpretations
D) Technical Bulletins


3. According to the FASB's conceptual framework, earnings
A) is the same as comprehensive income.
B) excludes certain gains and losses that are included in comprehensive income.
C) includes certain gains and losses that are excluded from comprehensive income.
D) includes certain losses that are excluded from comprehensive income.


4. The underlying theme of the conceptual framework is
A) reliability.
B) understandability.
C) decision usefulness.
D) comparability.


5. In November and December 2007, Lane Co., a newly organized magazine publisher, received $90,000 for 1,000 three-year subscriptions at $30 per year, starting with the January 2008 issue. Lane included the entire $90,000 in its 2007 income tax return. What amount should Lane report in its 2007 income statement for subscriptions revenue?
A) $0.
B) $5,000.
C) $30,000.
D) $90,000.