ch18 - CHAPTER 18 REVENUE RECOGNITION MULTIPLE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 18 REVENUE RECOGNITION MULTIPLE CHOICE —Conceptual Answer No. Description c 1. Revenue recognition principle. b 2. Definition of "realized." a 3. Definition of "earned." d 4. Recognizing revenue at point of sale. d 5. Recording sales when right of return exists. c 6. Revenue recognition when right of return exists. d 7. Revenue recognition when right of return exists. b 8. Appropriate accounting method for long-term contracts. c 9. Percentage-of-completion method. b 10. Percentage-of-completion method. c 11. Classification of progress billings and construction in process. b 12. Calculation of gross profit using percentage-of-completion. a 13. Disclosure of earned but unbilled revenues. c 14. Revenue, cost, and gross profit under completed contract. b 15. Disadvantage of using percentage-of-completion. a 16. Loss recognition on a long-term contract. c 17. Accounting for long-term contract losses. d 18. Criteria for revenue recognition of completion of production. a 19. Completion-of-production basis. c 20. Presentation of deferred gross profit. c 21. Appropriate use of the installment-sales method. b 22. Valuing repossessed assets. b 23. Gross profit deferred under the installment-sales method. b 24. Income recognition under the cost-recovery method. b 25. Income recognition under the cost-recovery method. d 26. Cost recovery basis of revenue recognition. d *27. Allocation of initial franchise fee. a *28 Recognition of continuing franchise fees. b *29. Future bargain purchase option. a *30. Option to purchase franchisee's business agreement. d *31. Revenue recognition by the consignor. MULTIPLE CHOICE —Computational Answer No. Description c 32. Percentage-of-completion method. c 33. Percentage-of-completion method. b 34. Determine cash collected on long-term construction contract. d 35. Determine gross profit using percentage-of-completion. c 36. Gross profit to be recognized using percentage-of-completion. *This topic is dealt with in an Appendix to the chapter.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE—Computational (cont.) Answer No. Description b 37. Gross profit to be recognized using percentage-of-completion. c 38. Profit to be recognized using completed-contract method. a 39. Gross profit to be recognized using percentage-of-completion. b 40. Profit to be recognized using completed-contract method. b 41. Loss recognized using completed-contract method. c 42. Revenue recognition using completed-contract method. c 43. Reporting a current liability with completed-contract-method. a 44. Reporting inventory under completed-contract method. d 45. Gain recognized on repossession—installment sale. b 46. Calculate loss on repossessed merchandise. a
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.

Page1 / 35

ch18 - CHAPTER 18 REVENUE RECOGNITION MULTIPLE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online