Ch 18 - Name: Status : Score: Instructions: Test Revenue...

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Name: Test Revenue Recognition --- Stec Status : Completed Score: 190 out of 200 points Instructions: Question 1 Multiple Choice 10 of 10 points The most popular input measure used to determine the progress toward completion is the cost-to-cost basis. Selected Answer: True Question 2 Multiple Choice 0 of 10 points The revenue recognition principle provides that revenue is recognized when Selected Answer: it is realized. Question 3 Multiple Choice 10 of 10 points Deferred gross profit on installment sales is generally treated as a(n) Selected Answer: unearned revenue and classified as a current liability. Question 4 Multiple Choice 10 of 10 points Seeman Furniture uses the installment-sales method. No further collections could be made on an account with a balance of $18,000. It was estimated that the repossessed furniture could be sold as is for $5,400, or for $6,300 if $300 were spent reconditioning it. The gross profit rate on the original sale was 40%. The loss on repossession was Selected Answer: $4,800. Question 5 Multiple Choice 10 of 10 points On May 1, 2007, TV Inc. consigned 80 TVs to Al's TV. The TVs cost $270. Freight on the shipment paid by Al's TV was $600. On July 10, TV Inc. received an account sales and $12,900 from Al's TV. Thirty TVs had been sold and the following expenses were deducted: The total sales price of the TVs sold by AL's TV was Selected Answer: $17,625. Question 6 Multiple Choice 10 of 10 points Harber Co. uses the installment-sales method. When an account had a balance of $8,400, no further collections could be made and the dining room set was repossessed. At that time, it was estimated that the dining room set could be sold for $2,400 as
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This note was uploaded on 09/21/2008 for the course ACC 203 taught by Professor Giansante during the Spring '08 term at Community College of Allegheny County.

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Ch 18 - Name: Status : Score: Instructions: Test Revenue...

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