Question 1

In the chart below,identify the expense recognition method that you feel is most appropriate and also explain why.

Accepted Answer

The answer of In the chart below,identify the expense recognition...

Question 2

YMN had sales of $1,500,000,including:
• $25,000 of goods shipped on consignment to an unrelated company on December 28,2018 and received by that company on December 31,2018
• $20,000 of goods shipped F.O.B.shipping point to a different unrelated party on December 31,2018 and received on January 2,2019.
On its income statement,what amount of net sales should YMN record for 2018?

Accepted Answer

A) $1,455,000 
B) $1,475,000 
C) $1,525,000 
D) $1,545,000 
A) $1,455,000 
B) $1,475,000 
C) $1,525,000 
D) $1,545,000

Question 3

Which statement best describes a franchise arrangement?

Accepted Answer

A) An arrangement in which one party licenses its business practices to another party. 
B) An arrangement in which one party exchanges goods or services with another party with little or no consideration. 
C) An arrangement in which one party provides goods to another party to sell on its behalf and will accept all goods that are not sold. 
D) An arrangement in which one party allows the purchaser to make payments over an extended period of time. 
A) An arrangement in which one party licenses its business practices to another party. 
B) An arrangement in which one party exchanges goods or services with another party with little or no consideration. 
C) An arrangement in which one party provides goods to another party to sell on its behalf and will accept all goods that are not sold. 
D) An arrangement in which one party allows the purchaser to make payments over an extended period of time.

Question 4

On June 1,Electronics Distribution ships 100 TVs to TV World on consignment.The cost of each unit is $600 and the unit selling price is $750.At the end of June,TV World sold 50 units.How much cost of sales should be recorded by Electronics Distribution for the month of June?

Accepted Answer

A) $37,500 
B) $30,000 
C) $60,000 
D) $75,000 
A) $37,500 
B) $30,000 
C) $60,000 
D) $75,000

Question 5

Harris Corporation sold hardware and software for $70,000 cash.In addition,the company will provide support on the software for 1 year and maintenance on the hardware for 3 years.The observable stand-alone selling prices are as follows:
   
a.Determine how revenue should be allocated to the various components in this transaction.
b.Apply the appropriate revenue recognition criteria to determine when revenue should be recognized for the various components of this transaction.

Accepted Answer

a.The relative stand-alone selling price

Question 6

Here are some financial records for Accounting Plus Magazine which started operations in October 2018.Sales for its first month were as follows:
 
What would be the subscription revenue to be recognized for the month of Oct 2018? (Round to the nearest dollar).

Accepted Answer

A) $68,333 
B) $107,667 
C) $774,333 
D) $882,000 
A) $68,333 
B) $107,667 
C) $774,333 
D) $882,000

Question 7

Discuss advantages and disadvantages of using the cash basis to recognize revenues.Provide three valid reasons in your discussion.

Accepted Answer

Advantages/Pros:
•The cash basis of reve

Question 8

Lagory Co.started a contract in June 2017 to build a bridge at a fixed price of $14 million.The bridge was to be completed by October 2019.Total cumulative costs incurred by the end of December 2017 and 2018 were $2 million and $6 million,respectively.Lagory Co.is unable to estimate the total costs of the project prior to completion.Final costs at the end of the project totalled $11 million.How much revenue will Lagory Co.report in 2018?

Accepted Answer

A) $2,000,000 
B) $3,000,000 
C) $4,000,000 
D) $14,000,000 
A) $2,000,000 
B) $3,000,000 
C) $4,000,000 
D) $14,000,000

In the chart below,identify the expense recognition method that you feel is most appropriate and also explain why.

Which statement best describes a franchise arrangement?

On June 1,Electronics Distribution ships 100 TVs to TV World on consignment.The cost of each unit is $600 and the unit selling price is $750.At the end of June,TV World sold 50 units.How much cost of sales should be recorded by Electronics Distribution for the month of June?

Here are some financial records for Accounting Plus Magazine which started operations in October 2018.Sales for its first month were as follows: What would be the subscription revenue to be recognized for the month of Oct 2018? (Round to the nearest dollar).

Discuss advantages and disadvantages of using the cash basis to recognize revenues.Provide three valid reasons in your discussion.

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Applications of Fair Value to Non-Current Assets

Filters

Exam 4: Revenue and Recognition

In the chart below,identify the expense recognition method that you feel is most appropriate and also explain why.

Which statement best describes a franchise arrangement?

On June 1,Electronics Distribution ships 100 TVs to TV World on consignment.The cost of each unit is $600 and the unit selling price is $750.At the end of June,TV World sold 50 units.How much cost of sales should be recorded by Electronics Distribution for the month of June?

Here are some financial records for Accounting Plus Magazine which started operations in October 2018.Sales for its first month were as follows: What would be the subscription revenue to be recognized for the month of Oct 2018? (Round to the nearest dollar).

Discuss advantages and disadvantages of using the cash basis to recognize revenues.Provide three valid reasons in your discussion.

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Applications of Fair Value to Non-Current Assets

Filters