ch 18 acc 5 - Take Assessment: Ch 18 - Quiz Page 1 of 4...

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Take Assessment: Ch 18 - Quiz FALL 2010 INTERM FIN ACCNT 2: ACCT. 3021 T3 [4189] (BROOKLYN ) (BKLYN_ACCT._3021_T3_201009) > GRADED QUIZZES > TAKE ASSESSMENT: CH 18 - QUIZ Name Ch 18 - Quiz Instructions Timed Assessment This Test has a 3 hour timer.The elapsed time appears at the top right of the window. A 1 minute warning will be displayed. Multiple Attempts This Test allows 2 attempts. This is attempt number 2. Force Completion This Test must be completed now. Question Completion Status: Question 1 10 points Save A manufacturer of large equipment sells on an installment basis to customers with questionable credit ratings. Which of the following methods of revenue recognition is least likely to overstate the amount of gross profit reported? At the time of completion of the equipment (completion of production method) At the date of delivery (sales method) The installment-sales method The cost–recovery method Question 2 10 points Save The principal advantage of the completed-contract method is that reported revenue is based on final results rather than estimates of unperformed work. it reflects current performance when the period of a contract extends into more than one accounting period. it is not necessary to recognize revenue at the point of sale. a greater amount of gross profit and net income is reported than is the case when the percentage-of-completion method is used. Question 3 10 points Save Coaster manufactures and sells logging equipment. Due to the nature of its business, Coaster is unable to reliably predict bad debts. During 2010, Coaster sold equipment costing $2,400,000 for $3,600,000. The terms of the sale were 20% down, with equal payments due
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This note was uploaded on 12/08/2010 for the course ACCT 5 taught by Professor Kaas during the Fall '10 term at CUNY Brooklyn.

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ch 18 acc 5 - Take Assessment: Ch 18 - Quiz Page 1 of 4...

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