7 - Name Chapter 7--Revenue Recognition and Related...

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Unformatted text preview: Name Chapter 7--Revenue Recognition and Related Expenses Description Instructions Modify Add Question Here Question 1 Multiple Choice 0 points Modify Remove Question Which of the following would not be suggestive of a company recognizing sales too early? Answer large and volatile amounts of uncollectible accounts receivable excessive warranty expenditures large growth in accounts receivable unusually large amount of returned goods Add Question Here Question 2 Multiple Choice 0 points Modify Remove Question When input prices are increasing, companies that use the LIFO method of accounting for inventory will report Answer Lower cost of goods sold amounts in comparison to the FIFO method Higher sales amounts in comparison to the FIFO method Higher ending inventory amounts in comparison to the FIFO method Lower gross profit margins in comparison to the FIFO method Add Question Here Question 3 Multiple Choice 0 points Modify Remove Question Tiger Company has consistently used the percentage-of-completion method of recognizing income. In 2005, Tiger started on an $18,000,000 construction contract that was completed in 2007. The following information was taken from Tiger's 2005 accounting records: What amount of revenue should Tiger recognize on the contract in 2005? Progress billing $ 6,600,000 Costs incurred $ 5,400,000 Collections $ 4,200,000 Estimated costs to complete $10,800,000 Answer $6,000,000 $5,400,000 $9,000,000 $0 Add Question Here Question 4 Multiple Choice 0 points Modify Remove Question Under the percentage-of-completion contract method Answer revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed. revenue, cost, and gross profit are recognized during the production cycle. revenue, cost, and gross profit are recognized at the time the contract is completed. none of these Add Question Here Question 5 Multiple Choice 0 points Modify Remove Question An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is Answer FIFO LIFO Base stock Weighted-average Add Question Here Question 6 Multiple Choice 0 points Modify Remove Question The installment method of revenue recognition can be used when cash collectibility is uncertain. The installment method Answer requires that no income is recognized until all installments are received. requires that gross profit is recognized as each installment payment is received. requires that entire cost of the sale be recovered prior to any income being recognized. allows revenue recognition at the time of the sale. Add Question Here Question 7 Multiple Choice 0 points Modify Remove Question Folio Corp....
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This note was uploaded on 03/06/2012 for the course ACCT 6344 taught by Professor Mark during the Fall '11 term at University of Texas at Austin.

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7 - Name Chapter 7--Revenue Recognition and Related...

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