(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because $\begin{array}{ccc} \text { Sales prices are } & \text { Assets are } & \text { Production cost } \\ \text { reasonably } & \text { readily } & \text { can be readily }\\ \text { assured } & \text {realizable } & \text {determined } \end{array}$

A) $\begin{array}{lll} \text { Yes } & \text { Yes } & \text { No } \end{array}$ B) $\begin{array}{lll} \text { Yes } & \text { No } & \text { Yes } \end{array}$ C) $\begin{array}{lll} \text { No } & \text { Yes } & \text { No } \end{array}$ D) $\text { No } \quad \text { No } \quad \text { Yes }$ E) $\text { No } \quad \text { Yes } \quad \text { Yes }$ A) $\begin{array}{lll} \text { Yes } & \text { Yes } & \text { No } \end{array}$ B) $\begin{array}{lll} \text { Yes } & \text { No } & \text { Yes } \end{array}$ C) $\begin{array}{lll} \text { No } & \text { Yes } & \text { No } \end{array}$ D) $\text { No } \quad \text { No } \quad \text { Yes }$ E) $\text { No } \quad \text { Yes } \quad \text { Yes }$

Exam 8: Revenue Recognition, Receivables, and Advances From Customers

Fassino Wholesale Corporation ("Fassino's") operates discount retail stores.To shop in a Fassino's store, customers must pay a nonrefundable, annual membership fee in advance, using either cash or an American Express card.A customer purchases an annual membership from Fassino's for $120, a 20-pack of paper towels for $10.99, and four new tires for $480.The tire purchase includes mounting and aligning by a Fassino's tire technician at the time of initial installation and alignment and tire rotation services for three years afterward.The customer pays with an American Express card. When should Fassino's recognize revenue from selling the paper towels?

(Multiple Choice)

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Question 121

In year 1, Southern Construction agrees to construct a school building for $12,000,000, receiving payments for the work of $6,000,000 in both year 1 and year 2.Southern estimates that the costs will be $4,000,000 in Year 1 and $6,000,000 in Year 2.If Southern uses the percentage-of-completion method (based on total costs), what amount of profit is recognized in each year of the contract? $\text { Year } 1 \quad \text { Year } 2$

(Multiple Choice)

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Question 122

The SRI company provides substantial services after the time of product sale and this condition introduces uncertainty.Which of the following is true?

(Multiple Choice)

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Question 123

Which of the following is true regarding income recognition?

(Multiple Choice)

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Question 124

Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year. It made journal entries at the end of each month. Healthy Lawn Maintenance deems uncollectible any customer account not paid after six months. This means that every accounting period, Healthy Lawn Maintenance ascertains which accounts remained uncollected for six months, and treats these customer accounts as uncollectible by writing them off. If, during 2013, Healthy Lawn Maintenance identified accounts of specific customers totaling $20,000 with unpaid balances for six months and wrote them off, the journal entry would be as follows:

(Multiple Choice)

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Question 125

Bad Debt Expense is also called the Provision for Bad Debts and the Provision for Uncollectible Accounts.Provision in this context refers to

(Multiple Choice)

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Question 126

Describe the accounts receivable recognition process.

(Essay)

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Question 127

Recognizing income after the time of sale is

(Multiple Choice)

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Question 128

Recognizing revenue before the seller collects cash requires estimating the amount of uncollectible accounts with reasonable accuracy.Both U.S.GAAP and IFRS require the

(Multiple Choice)

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Question 129

(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because Sales prices are Assets are Production cost reasonably readily can be readily assured realizable determined

(Multiple Choice)

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Question 130

Bad Debt Expense is also called

(Multiple Choice)

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Question 131

Firms that reduce the price charged to a customer after the firm has delivered the goods and the customer has found them to be unsatisfactory or damaged issue a

(Multiple Choice)

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Question 132

A debit balance in the allowance account may exist before recognizing estimated uncollectibles for the period because

(Multiple Choice)

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Question 133

Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year. It made journal entries at the end of each month. If Healthy Lawn Maintenance’s customers remitted $1,900,000 in cash during 2013, it would make the following journal entries with the following aggregated amounts:

(Multiple Choice)

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Question 134

A common-size income statement expresses each expense and net income as a percentage of

(Multiple Choice)

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Question 135

After the firm estimates the amount of uncollectible accounts associated with the credit sales of each period, it makes an adjusting entry to debit _ and credit _.

(Multiple Choice)

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Question 136

The direct write-off method

(Multiple Choice)

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Question 137

When the seller has received cash, but has not earned all of the revenues represented by the cash by providing goods and services, the seller has incurred an obligation to provide goods or services. These liabilities

(Multiple Choice)

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Question 138

Showing 121 - 138 of 138

The SRI company provides substantial services after the time of product sale and this condition introduces uncertainty.Which of the following is true?

Which of the following is true regarding income recognition?

Bad Debt Expense is also called the Provision for Bad Debts and the Provision for Uncollectible Accounts.Provision in this context refers to

Describe the accounts receivable recognition process.

Recognizing income after the time of sale is

Recognizing revenue before the seller collects cash requires estimating the amount of uncollectible accounts with reasonable accuracy.Both U.S.GAAP and IFRS require the

(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because Sales prices are Assets are Production cost reasonably readily can be readily assured realizable determined

Bad Debt Expense is also called

Firms that reduce the price charged to a customer after the firm has delivered the goods and the customer has found them to be unsatisfactory or damaged issue a

A debit balance in the allowance account may exist before recognizing estimated uncollectibles for the period because

A common-size income statement expresses each expense and net income as a percentage of

After the firm estimates the amount of uncollectible accounts associated with the credit sales of each period, it makes an adjusting entry to debit _ and credit _.

The direct write-off method

When the seller has received cash, but has not earned all of the revenues represented by the cash by providing goods and services, the seller has incurred an obligation to provide goods or services. These liabilities

Introduction to Business Activities and Overview of Financial Statements and the Reporting Process

The Basics of Record Keeping and Financial Statement Preparation: Balance Sheet

The Basics of Record Keeping and Financial Statement Preparation: Income Statement

Balance Sheet: Presenting and Analyzing Resources and Financing

Income Statement: Reporting Results of Operating Activities

Statement of Cash Flows

Introduction to Financial Statement Analysis

Working Capital

Long-Lived Tangible and Intangible Assets

Notes, Bonds, and Leases

Liabilities: Off-Balance Sheet Financing, Retirement Benefits, and Income Taxes

Marketable Securities and Derivatives

Intercorporate Investments in Common Stock

Shareholders Equity: Capital Contributions and Distributions

Statement of Cash Flows: Another Look

Synthesis and Extensions

Filters

Exam 8: Revenue Recognition, Receivables, and Advances From Customers

The SRI company provides substantial services after the time of product sale and this condition introduces uncertainty.Which of the following is true?

Which of the following is true regarding income recognition?

Bad Debt Expense is also called the Provision for Bad Debts and the Provision for Uncollectible Accounts.Provision in this context refers to

Describe the accounts receivable recognition process.

Recognizing income after the time of sale is

Recognizing revenue before the seller collects cash requires estimating the amount of uncollectible accounts with reasonable accuracy.Both U.S.GAAP and IFRS require the

(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because Sales prices are Assets are Production cost reasonably readily can be readily assured realizable determined

Bad Debt Expense is also called

Firms that reduce the price charged to a customer after the firm has delivered the goods and the customer has found them to be unsatisfactory or damaged issue a

A debit balance in the allowance account may exist before recognizing estimated uncollectibles for the period because

A common-size income statement expresses each expense and net income as a percentage of

After the firm estimates the amount of uncollectible accounts associated with the credit sales of each period, it makes an adjusting entry to debit _____ and credit _____.

The direct write-off method

When the seller has received cash, but has not earned all of the revenues represented by the cash by providing goods and services, the seller has incurred an obligation to provide goods or services. These liabilities

Introduction to Business Activities and Overview of Financial Statements and the Reporting Process

The Basics of Record Keeping and Financial Statement Preparation: Balance Sheet

The Basics of Record Keeping and Financial Statement Preparation: Income Statement

Balance Sheet: Presenting and Analyzing Resources and Financing

Income Statement: Reporting Results of Operating Activities

Statement of Cash Flows

Introduction to Financial Statement Analysis

Working Capital

Long-Lived Tangible and Intangible Assets

Notes, Bonds, and Leases

Liabilities: Off-Balance Sheet Financing, Retirement Benefits, and Income Taxes

Marketable Securities and Derivatives

Intercorporate Investments in Common Stock

Shareholders Equity: Capital Contributions and Distributions

Statement of Cash Flows: Another Look

Synthesis and Extensions

Filters

After the firm estimates the amount of uncollectible accounts associated with the credit sales of each period, it makes an adjusting entry to debit _ and credit _.