CLASS QUESTIONS 4CMWF

CLASS QUESTIONS 4CMWF - CLASS QUESTIONS: (4C) (1) At what...

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CLASS QUESTIONS : (4C) (1) At what point should revenue be recognized on the income statement by a business that sells furniture? A. When the customer places the order for the furniture. B. When the furniture is delivered to the customer. C. When payment is received from the customer. D. One-third at each of the above points. (2) Texas Airlines sold a reduced-fare ticket to a customer on January 8 for a flight to be taken on May 15. No changes can be made and the ticket price is not refundable after 24 hours (Jan. 9). When should Texas Airlines report the ticket price as revenue? A. January 8 B. January 9 C. May 15 D. Depends on whether or not the passenger shows up for the flight. (3) The Dallas Cowboys football organization sold a season ticket for $400 which covers 8 home games ($50 each). Season tickets are not refundable. How should the ticket revenue be recognized? A. Revenue should be recognized at the rate of $50 per home game played. B. All $400 should be reported as revenue when the season ticket is sold. C.
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This note was uploaded on 09/02/2011 for the course MGT 3305 taught by Professor Reed during the Spring '08 term at Baylor.

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CLASS QUESTIONS 4CMWF - CLASS QUESTIONS: (4C) (1) At what...

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