FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Income Measurement

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 111

Short Answer

Review LaterAdd Note

Review Later

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

Correct Answer

verified

Show Answer

Question 112

Essay

Review LaterAdd Note

Review Later

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

Correct Answer

verified

The objective of revenue recognition dis...

View Answer

Show Answer

Question 113

Multiple Choice

Review LaterAdd Note

In 2017,Lake would recognize realized gross profit of:

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.

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.

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

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.

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 31,2016,balance sheet,Rigsby would report:

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

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

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

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

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?

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

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.

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?

Minarski Electronics sells computers and provides hardware maintenance services.On April 1^st,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 30^th,assuming that revenue is accrued monthly?

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