Question 1

Consignments are a specialized marketing method whereby the

Accepted Answer

A) Consignee purchases goods for sale and sends payment when goods are sold 
B) Consignee agent)holds title to the product 
C) Consignee pays for good up front and is paid when merchandise is sold 
D) Consignee takes possession of merchandise but title remains with manufacturer 
A) Consignee purchases goods for sale and sends payment when goods are sold 
B) Consignee agent)holds title to the product 
C) Consignee pays for good up front and is paid when merchandise is sold 
D) Consignee takes possession of merchandise but title remains with manufacturer

Question 2

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

Accepted Answer

A) Psychic 
B) Real 
C) Investment 
D) Money 
A) Psychic 
B) Real 
C) Investment 
D) Money

Question 3

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

Accepted Answer

A) Persuasive evidence of an arrangement exists. 
B) Delivery has not occurred. 
C) The vendor's fee is fixed or determinable. 
D) Collectability is probable. 
A) Persuasive evidence of an arrangement exists. 
B) Delivery has not occurred. 
C) The vendor's fee is fixed or determinable. 
D) Collectability is probable.

Question 4

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

Accepted Answer

A) Standalone price of the product 
B) Blended price of original contract and contract modification 
C) Average selling price of original selling price and standalone price 
D) Selling price specified in contract modification 
A) Standalone price of the product 
B) Blended price of original contract and contract modification 
C) Average selling price of original selling price and standalone price 
D) Selling price specified in contract modification

Question 5

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

Accepted Answer

A) Determine the transaction price 
B) Identify the separate performance obligations in the contract 
C) Allocate transaction price to the separate performance obligations 
D) Recognize revenue when each performance obligation is satisfied 
A) Determine the transaction price 
B) Identify the separate performance obligations in the contract 
C) Allocate transaction price to the separate performance obligations 
D) Recognize revenue when each performance obligation is satisfied

Question 6

According to FASB ASC 606,a performance obligation exists when

Accepted Answer

A) A company receives the right to receive consideration 
B) A contract is approved and signed 
C) A company provides a distinct product or service 
D) A company provides interdependent product or service 
A) A company receives the right to receive consideration 
B) A contract is approved and signed 
C) A company provides a distinct product or service 
D) A company provides interdependent product or service

Question 7

The cost to replace assets with similar assets in a similar condition is the definition of which of the following current value concepts?

Accepted Answer

A) Replacement cost 
B) Selling price 
C) Exit value 
D) Discounted present value 
A) Replacement cost 
B) Selling price 
C) Exit value 
D) Discounted present value

Question 8

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

Accepted Answer

A) The company has transferred physical possession of the asset 
B) The company has received payment for goods or services 
C) The company has significant risks and rewards of ownership 
D) The company has legal title to the asset 
A) The company has transferred physical possession of the asset 
B) The company has received payment for goods or services 
C) The company has significant risks and rewards of ownership 
D) The company has legal title to the asset

Question 9

The principal disadvantage of using the percentage of completion method of recognizing revenue from long-term contracts is that it

Accepted Answer

A) Is unacceptable for income tax purposes 
B) May require that intraperiod tax allocation procedures be used 
C) Gives results bases upon estimates that may be subject to considerable uncertainty 
D) Is likely to assign a small amount of revenue to a period during which much revenue was actually earned 
A) Is unacceptable for income tax purposes 
B) May require that intraperiod tax allocation procedures be used 
C) Gives results bases upon estimates that may be subject to considerable uncertainty 
D) Is likely to assign a small amount of revenue to a period during which much revenue was actually earned

Question 10

Phoenix Music Company manufactures and sells stereo systems that include an assurance-type warranty for the first 120 days.Phoenix also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty.The total transaction price for the sale of the stereo system and the extended warranty is $2,000.The standalone price of each is $1,600 and $400,respectively.The estimated cost of the assurance-warranty is $200.The amount assigned to the assurance warranty as unearned warranty revenue should be

Accepted Answer

A) $2,000 
B) $1,600 
C) $400 
D) $200 
A) $2,000 
B) $1,600 
C) $400 
D) $200

Question 11

Determining periodic earnings and financial position depends on measuring economic resources and obligations and changes in them as these changes occur.This explanation pertains to

Accepted Answer

A) Disclosure 
B) Accrual accounting 
C) Materiality 
D) The matching concept 
A) Disclosure 
B) Accrual accounting 
C) Materiality 
D) The matching concept

Question 12

Which of the following is not an approach to determining current value?

Accepted Answer

A) Replacement cost 
B) Thrift value 
C) Selling price 
D) Discounting present value 
A) Replacement cost 
B) Thrift value 
C) Selling price 
D) Discounting present value

Question 13

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

Accepted Answer

A) Recognize revenue when each performance obligation is satisfied 
B) Identify the separate performance obligations in the contract 
C) Allocate transaction price to the separate performance obligations 
D) Determine the transaction price 
A) Recognize revenue when each performance obligation is satisfied 
B) Identify the separate performance obligations in the contract 
C) Allocate transaction price to the separate performance obligations 
D) Determine the transaction price

Question 14

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?

Accepted Answer

A) Providing services to outsiders and investments of the funds received 
B) Production of goods or services not yet sold not yet delivered to customers or clients. 
C) Windfall gains and losses due to external causes. 
D) The method used to depreciate property,plant and equipment. 
A) Providing services to outsiders and investments of the funds received 
B) Production of goods or services not yet sold not yet delivered to customers or clients. 
C) Windfall gains and losses due to external causes. 
D) The method used to depreciate property,plant and equipment.

Question 15

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as

Accepted Answer

A) the doctrine of conservatism. 
B) the materiality constraint. 
C) the substance over form principle. 
D) the industry practices constraint. 
A) the doctrine of conservatism. 
B) the materiality constraint. 
C) the substance over form principle. 
D) the industry practices constraint.

Question 16

The one-time overstatement of restructuring charges to reduce assets,which reduces future expenses,is the definition of which of the following earnings management techniques?

Accepted Answer

A) Taking a bath 
B) Creative acquisition accounting 
C) Creasing "cookie jar" reserves 
D) Abusing the materiality concept 
A) Taking a bath 
B) Creative acquisition accounting 
C) Creasing "cookie jar" reserves 
D) Abusing the materiality concept

Question 17

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

Accepted Answer

A) Determine the transaction price 
B) Identify the contract with customers 
C) Allocate transaction price to the separate performance obligations 
D) Identify the separate performance obligations in the contract 
A) Determine the transaction price 
B) Identify the contract with customers 
C) Allocate transaction price to the separate performance obligations 
D) Identify the separate performance obligations in the contract

Question 18

Which of the following is an argument against using historical cost in accounting?

Accepted Answer

A) Fair values are more relevant. 
B) Historical costs are based on an exchange transaction. 
C) Historical costs are reliable. 
D) Fair values are subjective 
A) Fair values are more relevant. 
B) Historical costs are based on an exchange transaction. 
C) Historical costs are reliable. 
D) Fair values are subjective

Consignments are a specialized marketing method whereby the

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

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

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

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

According to FASB ASC 606,a performance obligation exists when

The cost to replace assets with similar assets in a similar condition is the definition of which of the following current value concepts?

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

The principal disadvantage of using the percentage of completion method of recognizing revenue from long-term contracts is that it

Determining periodic earnings and financial position depends on measuring economic resources and obligations and changes in them as these changes occur.This explanation pertains to

Which of the following is not an approach to determining current value?

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

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as

The one-time overstatement of restructuring charges to reduce assets,which reduces future expenses,is the definition of which of the following earnings management techniques?

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

Which of the following is an argument against using historical cost in accounting?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 5: Income Concepts, Revenue Recognition and Matching

Consignments are a specialized marketing method whereby the

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

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

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

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

According to FASB ASC 606,a performance obligation exists when

The cost to replace assets with similar assets in a similar condition is the definition of which of the following current value concepts?

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

The principal disadvantage of using the percentage of completion method of recognizing revenue from long-term contracts is that it

Determining periodic earnings and financial position depends on measuring economic resources and obligations and changes in them as these changes occur.This explanation pertains to

Which of the following is not an approach to determining current value?

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

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as

The one-time overstatement of restructuring charges to reduce assets,which reduces future expenses,is the definition of which of the following earnings management techniques?

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

Which of the following is an argument against using historical cost in accounting?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters