Question 1

Which one of the following approaches is not a method for allocating a transaction price to multiple performance obligations?

Accepted Answer

A)  adjusted market assessment 
B)  expected-cost-plus-a-margin 
C)  residual 
D)  present cost basis 
A)  adjusted market assessment 
B)  expected-cost-plus-a-margin 
C)  residual 
D)  present cost basis

Question 2

Fare Jewelry Company is holding goods on consignment from Tomko with a selling price of $3,000,000. Fare is promised a commission of 25% for goods sold. By the end of 2019 Fare has sold $700,000 of Tomko's goods. How much revenue should Tomko recognize for 2019 on this transaction?

Accepted Answer

A)  $0 
B)  $3,000,000 
C)  $2,300,000 
D)  $700,000 
A)  $0 
B)  $3,000,000 
C)  $2,300,000 
D)  $700,000

Question 3

Greenwell Farm Equipment sells a tractor to Farmer for $150,000 on January 1, 2019. The tractor is delivered that day. Greenwell agrees that the Farmer may delay the payment for 2 years. The market rate of interest is 10%. Refer to Greenwell Farms. How much sales revenue will Greenwell report on January 1, 2019? Use the formula approach.

Accepted Answer

A)  $150,000 
B)  $135,000 
C)  $165,000 
D)  $123,967 
A)  $150,000 
B)  $135,000 
C)  $165,000 
D)  $123,967

Question 4

Jones Corporation enters into a contract with Warner Video to add their programs to Jones' network. Warner will pay Jones an upfront fixed fee of $250,000 for 12 months of access, and will also pay a $130,000 bonus if Jones' users access Warner Video for at least 10,000 hours during the 12 month period. Jones estimates that it has a 60% chance of earning the $130,000 bonus. Ignore any constraints on variable consideration. Refer to Jones Corporation. Using the most-likely-amount approach, the transaction price would be ________.

Accepted Answer

A)  $130,000 
B)  $250,000 
C)  $328,000 
D)  $380,000 
A)  $130,000 
B)  $250,000 
C)  $328,000 
D)  $380,000

Which one of the following approaches is not a method for allocating a transaction price to multiple performance obligations?

Fare Jewelry Company is holding goods on consignment from Tomko with a selling price of $3,000,000. Fare is promised a commission of 25% for goods sold. By the end of 2019 Fare has sold $700,000 of Tomko's goods. How much revenue should Tomko recognize for 2019 on this transaction?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

Filters

Exam 8: Revenue Recognition

Which one of the following approaches is not a method for allocating a transaction price to multiple performance obligations?

Fare Jewelry Company is holding goods on consignment from Tomko with a selling price of $3,000,000. Fare is promised a commission of 25% for goods sold. By the end of 2019 Fare has sold $700,000 of Tomko's goods. How much revenue should Tomko recognize for 2019 on this transaction?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

Filters