CHAPTER 18 TEST BANK THEORY AND PRACTICE
OF CONCELLING 11TH EDITION WITH COMPLETE
QUESTIONS AND ANSWER 100% CORREECT.
The process of formally recording or incorporating an item in the
financial statements of an entry is - CORRECT ANSWER-recognition
Dot point sells the appliances on an installment basis, all service
contracts are cash sales at the time of the purchase by the buyer.
Collections received for service contracts should be recorded as -
CORRECT ANSWER-deferred service revenue
Which of the following is not a reason why revenue is recognized at
time of sale? - CORRECT ANSWER-Realization has occurred
The sale is the critical event
Title legally passes from seller to buyer
All of these are reasons to recognize revenue at time of sale
, the principal advantage of the completed contract method is that -
CORRECT ANSWER-reported revenue is based on final results rather
than estimates of unperformed work
Under the completed contract method - CORRECT ANSWER-revenue,
cost, and gross profit are recognized at the time the contract is
completed
Cost estimates on a long term contract may indicate that a loss will
result on completion of the entire contract. In this case, the entire
expected loss should be? - CORRECT ANSWER-recognized in the current
period, regardless of whether the percentage of completion or
completed contract method is employed
Cost estimates at the end of the second year indicate a loss will result
on completion of the entire contract. Which of the following statements
is correct? - CORRECT ANSWER-Under the completed contract method,
when the billings exceed the accumulated costs, the amount of the
estimated loss is reported as a current liability
The criteria for recognition of revenue at the completion of production
of precious metals and farm products include - CORRECT ANSWER-an
established market with quoted prices
low additional costs of completion and selling
units are interchangeable
OF CONCELLING 11TH EDITION WITH COMPLETE
QUESTIONS AND ANSWER 100% CORREECT.
The process of formally recording or incorporating an item in the
financial statements of an entry is - CORRECT ANSWER-recognition
Dot point sells the appliances on an installment basis, all service
contracts are cash sales at the time of the purchase by the buyer.
Collections received for service contracts should be recorded as -
CORRECT ANSWER-deferred service revenue
Which of the following is not a reason why revenue is recognized at
time of sale? - CORRECT ANSWER-Realization has occurred
The sale is the critical event
Title legally passes from seller to buyer
All of these are reasons to recognize revenue at time of sale
, the principal advantage of the completed contract method is that -
CORRECT ANSWER-reported revenue is based on final results rather
than estimates of unperformed work
Under the completed contract method - CORRECT ANSWER-revenue,
cost, and gross profit are recognized at the time the contract is
completed
Cost estimates on a long term contract may indicate that a loss will
result on completion of the entire contract. In this case, the entire
expected loss should be? - CORRECT ANSWER-recognized in the current
period, regardless of whether the percentage of completion or
completed contract method is employed
Cost estimates at the end of the second year indicate a loss will result
on completion of the entire contract. Which of the following statements
is correct? - CORRECT ANSWER-Under the completed contract method,
when the billings exceed the accumulated costs, the amount of the
estimated loss is reported as a current liability
The criteria for recognition of revenue at the completion of production
of precious metals and farm products include - CORRECT ANSWER-an
established market with quoted prices
low additional costs of completion and selling
units are interchangeable
