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chapter 18 - Correct MultipleChoice,Question22...

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Correct Multiple Choice, Question 22 When goods or services are exchanged for cash or claims to cash (receivables), revenues are earned. realized. recognized. all of these. Multiple Choice, Question 23
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Correct.     When the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues,  revenues are earned. realized. recognized. all of these. Multiple Choice, Question 24 Correct.     Which of the following is  not  an accurate representation concerning revenue recognition? Revenue from disposing of assets other than products is recognized at the date of sale. Revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to  customers. Revenue from services rendered is recognized when cash is received or when services have been performed. Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used.
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Multiple Choice, Question 30 Correct.     The FASB concluded that if a company sells its product but gives the buyer the right to return the product, revenue from the  sales transaction shall be recognized at the time of sale only if  all  of six conditions have been met. Which of the following is  not  one of these six conditions? The buyer's obligation to the seller would not be changed in the event of theft or damage of the product. The buyer is obligated to pay the seller upon resale of the product. The amount of future returns can be reasonably estimated. The seller's price is substantially fixed or determinable at time of sale. Correct Multiple Choice, Question 32 The percentage-of-completion method must be used when certain conditions exist. Which of the following is  not  one of those  necessary conditions? Estimates of progress toward completion, revenues, and costs are reasonably dependable. The contractor can be expected to perform the contractual obligation.
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The contract clearly specifies the enforceable rights of the parties, the consideration to be exchanged, and the manner and  terms of settlement. The buyer can be expected to satisfy some of the obligations under the contract. Multiple Choice, Question 35 Correct.     In accounting for a long-term construction-type contract using the percentage-of-completion method, the gross profit  recognized during the first year would be the estimated total gross profit from the contract, multiplied by the percentage of  the costs incurred during the year to the total costs incurred to date.
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