Exam 9: OL: Revenue Recognition

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Refer to Tullis Corporation.How should Tullis report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the completed-contract method?

(Multiple Choice)

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Question 81

Refer to Craft Construction.Assume Craft uses the percentage-of-completion method for revenue recognition.Prepare all journal entries to record costs,billings,collections and profit recognition.

(Essay)

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Question 82

Construction costs and profits in excess of billings are carried on the balance sheet as a/an ________.

(Multiple Choice)

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Question 83

The percentage-of-completion method violates the general rule for revenue recognition that the earnings process is complete.

(True/False)

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Question 84

Billings in excess of costs and profits are carried on the balance sheet as a/an ________.

(Multiple Choice)

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Question 85

Revenue received in advance is recorded as an asset on the provider's balance sheet.

(True/False)

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Question 86

What conditions are necessary for a company to use the percentage-of-completion method?

(Essay)

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Question 87

When a firm delivers merchandise to a buyer,it has met both criteria for revenue recognition.

(True/False)

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Question 88

Refer to Craft Construction.Assume that Craft uses the zero-gross-profit approach for revenue recognition.Make the appropriate journal entries for 2016 and 2017 for Craft Company.

(Essay)

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Question 89

When merchandise sold under the installment sale method is repossessed,a gain may be recognized.

(True/False)

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Question 90

Under GAAP,when a company uses the completed-contract method of accounting,________.

(Multiple Choice)

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Question 91

The percentage-of-completion method conforms to the matching principle.

(True/False)

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Question 92

Transactions where a buyer accepts title and billings but delays receipt of the goods is a bill-and-hold arrangement.

(True/False)

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Question 93

The total profit recognized on a contract using the completed-contract method is different than the total profit recognized under the percentage-of-completion method.

(True/False)

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Question 94

What is a consignment sale?

(Essay)

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Question 95

Able sells a piece of equipment to Smythe for $1,800 on August 1.The equipment cost $1,000.The equipment is picked up by Smythe on August 10.How is this transaction accounted for under a perpetual system of inventory?

(Multiple Choice)

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Question 96

Billings in excess of costs and profits are carried on the balance sheet as a/an ________.

(Multiple Choice)

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Question 97

A seller recognizes the right to return sales as a/an ________.

(Multiple Choice)

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Question 98

The method of reporting gross profit for long term contracts that does a better job of providing relevant information on the income statement is the ________.

(Multiple Choice)

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Question 99

Which one of the following is not an indicator of a consignment arrangement?

(Multiple Choice)

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Question 100

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Exam 9: OL: Revenue Recognition

Refer to Tullis Corporation.How should Tullis report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the completed-contract method?

Refer to Craft Construction.Assume Craft uses the percentage-of-completion method for revenue recognition.Prepare all journal entries to record costs,billings,collections and profit recognition.

Construction costs and profits in excess of billings are carried on the balance sheet as a/an ________.

The percentage-of-completion method violates the general rule for revenue recognition that the earnings process is complete.

Billings in excess of costs and profits are carried on the balance sheet as a/an ________.

Revenue received in advance is recorded as an asset on the provider's balance sheet.

What conditions are necessary for a company to use the percentage-of-completion method?

When a firm delivers merchandise to a buyer,it has met both criteria for revenue recognition.

Refer to Craft Construction.Assume that Craft uses the zero-gross-profit approach for revenue recognition.Make the appropriate journal entries for 2016 and 2017 for Craft Company.

When merchandise sold under the installment sale method is repossessed,a gain may be recognized.

Under GAAP,when a company uses the completed-contract method of accounting,________.

The percentage-of-completion method conforms to the matching principle.

Transactions where a buyer accepts title and billings but delays receipt of the goods is a bill-and-hold arrangement.

The total profit recognized on a contract using the completed-contract method is different than the total profit recognized under the percentage-of-completion method.

What is a consignment sale?

Able sells a piece of equipment to Smythe for $1,800 on August 1.The equipment cost $1,000.The equipment is picked up by Smythe on August 10.How is this transaction accounted for under a perpetual system of inventory?

Billings in excess of costs and profits are carried on the balance sheet as a/an ________.

A seller recognizes the right to return sales as a/an ________.

The method of reporting gross profit for long term contracts that does a better job of providing relevant information on the income statement is the ________.

Which one of the following is not an indicator of a consignment arrangement?

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

Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

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