Question 1

When using the cost -recovery method,gross profit is not recognized until the full cost of the merchandise has been recovered.

Accepted Answer

A) True 
 B)False

Question 2

Refer to Tullis Corporation.How much should revenue should Tullis recognize at the end of Year 1 assuming the use of the zero-gross-profit approach?

Accepted Answer

A) $0 
B) $3,000,000 
C) $4,000,000 
D) $5,000,000 
A) $0 
B) $3,000,000 
C) $4,000,000 
D) $5,000,000

Question 3

Refer to LaGrow Developers.Assuming that LaGrow uses the installment sales method,the company would recognize gross profit in 2016 of ________.

Accepted Answer

A) $0 
B) $400,000 
C) $600,000 
D) $1,000,000 
A) $0 
B) $400,000 
C) $600,000 
D) $1,000,000

Question 4

The percentage of-completion method accounting should not be used if ________.

Accepted Answer

A) completion rates are determinable 
B) completion time on projects exceeds four years 
C) profits are low 
D) it is not possible to make dependable estimates of progress 
A) completion rates are determinable 
B) completion time on projects exceeds four years 
C) profits are low 
D) it is not possible to make dependable estimates of progress

Question 5

Refer to Tullis Corporation.How much should Tullis report as Accounts Receivable at the end of year 1 on the balance sheet assuming the use of the completed-contract method?

Accepted Answer

A) $0 
B) $500,000 
C) $4,000,000 
D) $5,000,000 
A) $0 
B) $500,000 
C) $4,000,000 
D) $5,000,000

Question 6

Refer to LaGrow Developers.Assuming that LaGrow uses the cost-recovery method,the company would recognize gross profit in 2017 of ________.

Accepted Answer

A) $0 
B) $1,000,000 
C) $1,500,000 
D) $2,500,000 
A) $0 
B) $1,000,000 
C) $1,500,000 
D) $2,500,000

Question 7

Another name for channel stuffing is ________.

Accepted Answer

A) trade stuffing 
B) trade loading 
C) channel loading 
D) trade disclosure 
A) trade stuffing 
B) trade loading 
C) channel loading 
D) trade disclosure

Question 8

Gleason Construction enters into a long-term fixed price contract to build an office building for $20,000,000.In the first year of the contract,Gleason incurs $6,000,000 of cost and the engineers determined that the remaining costs to complete are $10,000,000.How much revenue should Gleason recognize in Year 1 assuming the use of the zero-gross -profit approach?

Accepted Answer

A) $0 
B) $6,000,000 
C) $7,500,000 
D) $10,000,000 
A) $0 
B) $6,000,000 
C) $7,500,000 
D) $10,000,000

Question 9

Installment receivables may be reported on the balance sheet net of deferred gross profit.

Accepted Answer

A) True 
 B)False

Question 10

The Billings on Construction in Progress is a/an ________.

Accepted Answer

A) asset 
B) liability 
C) contra-asset 
D) revenue 
A) asset 
B) liability 
C) contra-asset 
D) revenue

When using the cost -recovery method,gross profit is not recognized until the full cost of the merchandise has been recovered.

Refer to Tullis Corporation.How much should revenue should Tullis recognize at the end of Year 1 assuming the use of the zero-gross-profit approach?

Refer to LaGrow Developers.Assuming that LaGrow uses the installment sales method,the company would recognize gross profit in 2016 of ________.

The percentage of-completion method accounting should not be used if ________.

Refer to Tullis Corporation.How much should Tullis report as Accounts Receivable at the end of year 1 on the balance sheet assuming the use of the completed-contract method?

Refer to LaGrow Developers.Assuming that LaGrow uses the cost-recovery method,the company would recognize gross profit in 2017 of ________.

Another name for channel stuffing is ________.

Installment receivables may be reported on the balance sheet net of deferred gross profit.

The Billings on Construction in Progress is a/an ________.

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

Filters

Exam 9: OL: Revenue Recognition

When using the cost -recovery method,gross profit is not recognized until the full cost of the merchandise has been recovered.

Refer to Tullis Corporation.How much should revenue should Tullis recognize at the end of Year 1 assuming the use of the zero-gross-profit approach?

Refer to LaGrow Developers.Assuming that LaGrow uses the installment sales method,the company would recognize gross profit in 2016 of ________.

The percentage of-completion method accounting should not be used if ________.

Refer to Tullis Corporation.How much should Tullis report as Accounts Receivable at the end of year 1 on the balance sheet assuming the use of the completed-contract method?

Refer to LaGrow Developers.Assuming that LaGrow uses the cost-recovery method,the company would recognize gross profit in 2017 of ________.

Another name for channel stuffing is ________.

Installment receivables may be reported on the balance sheet net of deferred gross profit.

The Billings on Construction in Progress is a/an ________.

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

Filters