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CHAPTER 18 REVENUE TRUE-FALSE Conceptual Answer No. Description F 1. Recognition of revenue. T 2. Delayed recognition of revenue. T 3. Measurement of revenue. F 4. Recognizing revenue when right of return exists. T 5. Recognizing revenue in barter transactions. F 6. Use of percentage-of-completion method. T 7. Input measure for contract progress. T 8. Reporting Construction in Process and Billings on Construction in Process. F 9. Construction in Process account balance. F 10. Recognition of revenue under cost-recovery method. T 11. Recognition of revenue under cost-recovery method. F 12. Recognizing loss on an unprofitable contract. F 13. Recognizing current period loss on a profitable contract. T 14. Disclosure of costs and Net income. F 15. Recording a loss on an unprofitable contract. F 16. Revenue recognition in service contracts. T 17. Revenue recognition in service contracts. T 18. Revenue recognition in service contracts. F 19. Allocating amounts in a multiple-deliverable arrangement. T 20. Recognizing revenue under accretion approach. MULTIPLE CHOICE Conceptual Answer No. Description c 21. Revenue recognition principle. b 22. Recognition of revenue. b S 23. Revenue recognition representations. b 24. IASB and revenue recognition. c 25. Conditions necessary for revenue recognition. c 26. Recording revenue in a barter transaction. c 27. Recognizing revenue from bill-and-hold sales. b 28. Measurement of revenue. 29. d 30. Definition of bill and hold sales. a 31. Recognizing revenue in barter transactions. a 32. Recording sales when right of return exists. c 33. Revenue recognition when right of return exists. d 34. Identify conditions needed to recognize sales revenue. d 35. Accounting for consignment sales. d 36. Revenue recognition by the consignor. b 37. Conditions necessary for using percentage-of-completion method. c 38. Percentage-of-completion method. Test Bank for Intermediate Accounting, IFRS Edition b 39. Percentage-of-completion method. MULTIPLE CHOICE Conceptual (cont.) Answer No. Description c 40. Classification of progress billings and construction in process. b 41. Calculation of gross profit using percentage-of-completion. a 42. Disclosure of earned but unbilled revenues. d S 43. Percentage-of-completion input measures. b 44. Disadvantage of using percentage-of-completion. b 45. Revenue, cost, and gross profit under the completed-contract method. a 46. Loss recognition on a long-term contract. c 47. Accounting for long-term contract losses. b S 48. Treatment of estimated contract cost increase. b S 49. Recognizing revenue in a service company. b 50. Multiple-deliverable arrangement. c S 51. Multiple-deliverable arrangement.... View Full Document

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