Exam 5: Income Concepts, Revenue Recognition, and Other Methods of Reporting

Under FASB ASC 606, the second step in the revenue recognition process is to

List three reasons why income reporting is important to our economic society.

Under FASB ASC 606, when multiple performance obligations exist in a contract, they should be accounted for as a single performance obligation when

Explain the accounting for sales with right of return under the provisions of FASB ASC 606.

Under FASB ASC 606, the first step in the revenue recognition process is to

What conditions must be satisfied in order to recognize revenue according to Staff Accounting Bulletin (SAB) No. 101, "Revenue Recognition in Financial Statements?

Under FASB ASC 606, the last step in the revenue recognition process is to

Which of the following is not a criterion outlined in SEC Staff Accounting Bulletin No. 101 for the recognition of revenue?

Which of the following is not a concept of income identified by Bedford?

Under the provisions of FASB ASC 606, when a customer purchases a product but is not yet ready for delivery, this is referred to as

Business organizations have long recognized that primarily using financial measures such as sales or profitability to measure performance often fails to provide information about the factors that result in success. One of these factors is sustainability. Which of the following is not a pillar of sustainability identified in chapter 5?

Under FASB ASC 606, when a contract modification does not result in a separate performance obligation, the additional products are priced at the

FASB ASC 606 introduces the concept of a performance obligation in recognizing revenue. Discuss: a. A performance obligation is a promise in a contract to provide a product or service to a customer. This promise may be explicit, implicit, or possibly based on customary business practice. a. How a performance obligation is defined under FASB ASC 606? b. How companies determine if a performance obligation exists? b. To determine whether a performance obligation exists, a company must determine whether the customer can benefit from the good or service on its own or together with other readily available resources.

One of the basic features of financial accounting is the

Discuss how revenue might be recognized at various points in a company's production - sale cycle.

Define the following terms: a. Entry price b. Exit price c. Discounted present value

Under the provisions of FASB ASC 606 A company has satisfied its performance obligation when the

One concept of income suggests that income be measured by determining the net change over time in the discounted present value of net cash flow expected to be received by the firm. Under this concept of income, which of the following, ignoring income taxes would not affect the amount of income for a period?