A 99 calculation of gross profit rate d 100

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a 99. Calculation of gross profit rate. d 100. Computation of net income from installment sales. a 101. Computation of realized and deferred gross profit. c 102. Computation of realized gross profit amount. b 103. Computation of realized gross profit-cost recovery method. a 104. Revenue recognized under the cost-recovery method. d *105. Cancellation of franchise agreement. c *106. Accounting for initial and annual continuing franchise fees. b *107. Franchise fee with a bargain purchase option. d *108. Sales on consignment. a *109. Reporting inventory on consignment. MULTIPLE CHOICE —CPA Adapted Answer No. Description a 110. FASB's definition of "recognition." b 111. Determine contract costs incurred during year. d 112. Gross profit to be recognized using percentage-of-completion. d 113. Profit to be recognized using completed-contract method. c 114. Revenue recognized under completed-production method. b 115. Determine balance of installment accounts receivable. c 116. Calculate deferred gross profit—installment sales. c 117. Calculate deferred gross profit—installment sales. c 118. Balance of deferred gross profit—installment sales. c 119. Reporting deferred gross profit—installment sales. a 120. Effect of collections received on service contracts. 18 - 3
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Test Bank for Intermediate Accounting, Thirteenth Edition EXERCISES Item Description E18-121 Revenue recognition (essay). E18-122 Revenue recognition (essay). E18-123 Long-term contracts (essay). E18-124 Journal entries—percentage-of-completion. E18-125 Percentage-of-completion method. E18-126 Percentage-of-completion method. E18-127 Percentage-of-completion and completed-contract methods. E18-128 Installment sales. E18-129 Installment sales. E18-130 Installment sales. *E18-131 Franchises. PROBLEMS Item Description P18-132 Long-term construction project accounting. P18-133 Accounting for long-term construction contracts. P18-134 Long-term contract accounting—completed-contract. P18-135 Installment sales. CHAPTER LEARNING OBJECTIVES 1. Apply the revenue recognition principle. 2. Describe accounting issues for revenue recognition at point of sale. 3. Apply the percentage-of-completion method for long-term contracts. 4. Apply the completed-contract method for long-term contracts. 5. Identify the proper accounting for losses on long-term contracts. 6. Describe the installment-sales method of accounting. 7. Explain the cost-recovery method of accounting. *8. Explain revenue recognition for franchises and consignment sales. 18 - 4
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Revenue Recognition SUMMARY OF LEARNING OBJECTIVES BY QUESTIONS Ite Typ Ite Typ Ite Typ Ite Typ Item Typ Ite Typ Ite Typ Learning Objective 1 1. TF 3. TF 22. MC S 24. MC P 26. MC 121. E 2. TF 21. MC 23. MC P 25. MC 110. MC 122. E Learning Objective 2 4. TF 6. TF 28. MC 30. MC 5. TF 27. MC 29. MC 122. E Learning Objective 3 7. TF 34. MC 66. MC 72. MC 80. MC 123. E 133. P 8. TF 35. MC 67. MC 73. MC 82. MC 124. E 9. TF 36. MC 68. MC 74. MC 83. MC 125. E 31. MC 37. MC 69. MC 75. MC 84. MC 126. E 32. MC S 38. MC 70. MC 76. MC 111. MC 127. E 33. MC 65. MC 71. MC 78. MC 112. MC 132. P Learning Objective 4 10. TF 40. MC 81. MC 87. MC 123. E 134. P 11. TF 77. MC 85. MC 88. MC 127. E S 39. MC 79. MC 86. MC 113. MC 133. P Learning Objective 5 12. TF 14. TF 41. MC 43. MC S 45. MC 114. MC 133. P 13. TF 15. TF 42. MC 44. MC S 46. MC 132.
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