Test Bank for Intermediate Accounting, 16th Edition
Questions and Revised Correct Answers. with 100%
Guarantee Pass
Completed contract method - ans -The accounting for long term construction
contracts where revenues and gross profit are recognized at a point in time, that
is, when the contract is completed
Consignee - ans -The party that receives goods from a consignor under a
consignment.
Consignment - ans -The consignor (manufacturer or wholesaler) ships
merchandise to the consignee (dealer), who is to act as an agent for the consignor
in selling the merchandise.
Consignor - ans -The party that sends goods to a consignee under consignment.
Continuing franchise fees - ans -The payments received in return for the
continuing rights granted by the franchise agreement and for providing such
services as management training, advertising and promotion, legal assistance, and
other support
Contract - ans -An agreement that creates enforceable rights or obligations.
Contract assets - ans -There are two types: (1) unconditional rights to receive
consideration because the company has satisfied its performance obligation with
a customer, and (2) conditional rights to receive consideration because the
company has satisfied one performance obligation but must satisfy another
performance obligation in the contract before it can bill the customer.
Contract liabilities - ans -A company's obligation to transfer goods or services to a
customer for which the company has received consideration form the customer;
also generally referred to as Unearned Sales Revenue.
Contract modification - ans -When parties to a contract change the contract terms
while it is ongoing.
Questions and Revised Correct Answers. with 100%
Guarantee Pass
Completed contract method - ans -The accounting for long term construction
contracts where revenues and gross profit are recognized at a point in time, that
is, when the contract is completed
Consignee - ans -The party that receives goods from a consignor under a
consignment.
Consignment - ans -The consignor (manufacturer or wholesaler) ships
merchandise to the consignee (dealer), who is to act as an agent for the consignor
in selling the merchandise.
Consignor - ans -The party that sends goods to a consignee under consignment.
Continuing franchise fees - ans -The payments received in return for the
continuing rights granted by the franchise agreement and for providing such
services as management training, advertising and promotion, legal assistance, and
other support
Contract - ans -An agreement that creates enforceable rights or obligations.
Contract assets - ans -There are two types: (1) unconditional rights to receive
consideration because the company has satisfied its performance obligation with
a customer, and (2) conditional rights to receive consideration because the
company has satisfied one performance obligation but must satisfy another
performance obligation in the contract before it can bill the customer.
Contract liabilities - ans -A company's obligation to transfer goods or services to a
customer for which the company has received consideration form the customer;
also generally referred to as Unearned Sales Revenue.
Contract modification - ans -When parties to a contract change the contract terms
while it is ongoing.
