Question 1

In 2017,Lake would recognize realized gross profit of:

Accepted Answer

A) $0. 
B) $450,000. 
C) $310,000. 
D) $700,000. 
A) $0. 
B) $450,000. 
C) $310,000. 
D) $700,000.

Question 2

Use the following to answer questions 
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000.The project was begun in 2015 and completed in 2016.Cost and other data are presented below:
  
-Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.
Required: Prepare all journal entries to record costs,billings,collections,and profit recognition.

Accepted Answer

The answer of Use the following to answer questions 
Beavis...

Question 3

Use the following to answer questions 
The following table presents a summary of ratio analysis for McDonald's and averages for their peer group:
  
-Based on this information,if you were going to advise McDonald's about how it could enhance return on shareholders' equity,what would you suggest? Be as specific as possible in the operational or financial changes you would recommend.

Accepted Answer

The company's profit margin is already h

Question 4

For 2016,what is the journal entry to record revenue?

Accepted Answer

The answer of For 2016,what is the journal entry to...

Question 5

In 2018,Lake would record a loss on repossession of:

Accepted Answer

A) $45,000. 
B) $200,000. 
C) $120,000. 
D) $80,000 
A) $45,000. 
B) $200,000. 
C) $120,000. 
D) $80,000

Question 6

In its December 31,2015,balance sheet,ADH would report:

Accepted Answer

A) The contract asset,cost and profits in excess of billings,of $500,000. 
B) The contract liability,billings in excess of cost,of $300,000. 
C) The contract asset,contract amount in excess of billings,of $1,500,000. 
D) The contract asset,deferred profit,of $400,000. 
A) The contract asset,cost and profits in excess of billings,of $500,000. 
B) The contract liability,billings in excess of cost,of $300,000. 
C) The contract asset,contract amount in excess of billings,of $1,500,000. 
D) The contract asset,deferred profit,of $400,000.

Question 7

Summerhill Construction builds luxury houses in remote areas.On June 1,2016,the company signed a contract to build a house in an undeveloped section of a mountainside,and received $2 million in advance for the job.To complete the project,the company must construct a pathway leading to the building lot,clear a large hillside,and construct a wooden house.Normally,the company would charge $400,000,$1,400,000,and $500,000,respectively,for each of these tasks if done separately.
Required: Given the information above,how many performance obligations are included in this contract?

Accepted Answer

Number of performance obligations in the

Question 8

Minarski Electronics sells computers and provides hardware maintenance services.On April 1st,Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000.If sold separately,the computer costs $840 and the one-year unlimited maintenance/repair service costs $360.How much revenue does Minarski Electronics recognize for the month ended April 30th,assuming that revenue is accrued monthly?

Accepted Answer

A) $1,000 
B) $870 
C) $725 
D) $30 
A) $1,000 
B) $870 
C) $725 
D) $30

Question 9

The amount of variable consideration that can be recognized is limited to the amount for which it is probable that there won't be a significant reversal of revenue recognized to date when uncertainty resolves in the future.

Accepted Answer

A) True 
 B)False

Question 10

What is the objective of disclosures about revenue recognition? Indicate at least two common types of important revenue recognition disclosures.

Accepted Answer

The objective of revenue recognition dis

Question 11

Goods and services are distinct if they are either capable of being distinct or are separately identifiable.

Accepted Answer

A) True 
 B)False

Question 12

"VSOE" is necessary to separately recognize revenue in multiple-element contracts for:

Accepted Answer

A) All service contracts. 
B) All product contracts. 
C) All contracts that involve at least one non-software element. 
D) Software contracts. 
A) All service contracts. 
B) All product contracts. 
C) All contracts that involve at least one non-software element. 
D) Software contracts.

Question 13

The following information is provided in the 2016 annual report to shareholders of The BizStore:

Required: Compute U-Z in the table above.

Accepted Answer

F1F1F1S1F1F1F10U:Profit margin = NI /

Question 14

Use the following to answer questions 
Excerpts from Dowling Company's December 31,2016 and 2015,financial statements and key ratios are presented below (all numbers are in millions):
  
-Dowling's 2016 profit margin is (rounded):

Accepted Answer

A) 17.4%. 
B) 18.5%. 
C) 18.0%. 
D) 16.5%. 
A) 17.4%. 
B) 18.5%. 
C) 18.0%. 
D) 16.5%.

Question 15

In its December 31,2015,balance sheet,ADH would report:

Accepted Answer

A) The contract asset,cost and profits in excess of billings,of $500,000. 
B) The contract liability,billings in excess of cost,of $300,000. 
C) The contract asset,contract amount in excess of billings,of $1,500,000. 
D) The contract asset,deferred profit,of $400,000. 
A) The contract asset,cost and profits in excess of billings,of $500,000. 
B) The contract liability,billings in excess of cost,of $300,000. 
C) The contract asset,contract amount in excess of billings,of $1,500,000. 
D) The contract asset,deferred profit,of $400,000.

Question 16

Which of the following is not something that revenue recognition disclosures typically should help investors to understand?

Accepted Answer

A) Timing of revenue and cash flows 
B) Outstanding performance obligations 
C) Significant judgments used to estimate transaction prices 
D) Significant fluctuations in long-term debt necessary to increase revenue in the future 
A) Timing of revenue and cash flows 
B) Outstanding performance obligations 
C) Significant judgments used to estimate transaction prices 
D) Significant fluctuations in long-term debt necessary to increase revenue in the future

Question 17

CompuValue Center sells a full assortment of computer parts,including motherboards,video cards,and cables,and also offers complementary computer assembly services.CompuValue estimates that it incurs $50 in labor and materials on average to complete one assembly order,with an average of 75% profit based on cost.Required: Assuming that computer parts and assembly service are separate performance obligations,estimate the stand-alone selling price of the assembly service based on the expected cost plus margin approach.

Accepted Answer

Under the expected cost plus margin appr

Question 18

Smith & Sons is a CPA firm that provides proprietary software to its clients.One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts.Another product sells for $3,000 and contains Smith & Sons' archive of accounting standards and articles,which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product.
Required: If a customer purchases both software packages on June 1,2016,how much revenue
should Smith & Sons recognize for the year?

Accepted Answer

The software license for tutorials is a

Question 19

Prepare Romano's April 30 journal entry to account for the revenue earned in April.

Accepted Answer

During the month of April,Romano earns t

Question 20

In its December 31,2016,balance sheet,Rigsby would report:

Accepted Answer

A) Realized gross profit of $100,000. 
B) Deferred gross profit of $100,000. 
C) Installment receivables (net)of $3,200,000. 
D) Installment receivables (net)of $4,000,000. 
A) Realized gross profit of $100,000. 
B) Deferred gross profit of $100,000. 
C) Installment receivables (net)of $3,200,000. 
D) Installment receivables (net)of $4,000,000.

In 2017,Lake would recognize realized gross profit of:

For 2016,what is the journal entry to record revenue?

In 2018,Lake would record a loss on repossession of:

In its December 31,2015,balance sheet,ADH would report:

The amount of variable consideration that can be recognized is limited to the amount for which it is probable that there won't be a significant reversal of revenue recognized to date when uncertainty resolves in the future.

What is the objective of disclosures about revenue recognition? Indicate at least two common types of important revenue recognition disclosures.

Goods and services are distinct if they are either capable of being distinct or are separately identifiable.

"VSOE" is necessary to separately recognize revenue in multiple-element contracts for:

The following information is provided in the 2016 annual report to shareholders of The BizStore: Required: Compute U-Z in the table above.

Use the following to answer questions Excerpts from Dowling Company's December 31,2016 and 2015,financial statements and key ratios are presented below (all numbers are in millions): -Dowling's 2016 profit margin is (rounded):

In its December 31,2015,balance sheet,ADH would report:

Which of the following is not something that revenue recognition disclosures typically should help investors to understand?

Prepare Romano's April 30 journal entry to account for the revenue earned in April.

In its December 31,2016,balance sheet,Rigsby would report:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 5: Income Measurement

In 2017,Lake would recognize realized gross profit of:

For 2016,what is the journal entry to record revenue?

In 2018,Lake would record a loss on repossession of:

In its December 31,2015,balance sheet,ADH would report:

The amount of variable consideration that can be recognized is limited to the amount for which it is probable that there won't be a significant reversal of revenue recognized to date when uncertainty resolves in the future.

What is the objective of disclosures about revenue recognition? Indicate at least two common types of important revenue recognition disclosures.

Goods and services are distinct if they are either capable of being distinct or are separately identifiable.

"VSOE" is necessary to separately recognize revenue in multiple-element contracts for:

The following information is provided in the 2016 annual report to shareholders of The BizStore: Required: Compute U-Z in the table above.

Use the following to answer questions Excerpts from Dowling Company's December 31,2016 and 2015,financial statements and key ratios are presented below (all numbers are in millions): -Dowling's 2016 profit margin is (rounded):

In its December 31,2015,balance sheet,ADH would report:

Which of the following is not something that revenue recognition disclosures typically should help investors to understand?

Prepare Romano's April 30 journal entry to account for the revenue earned in April.

In its December 31,2016,balance sheet,Rigsby would report:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters