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 151

Multiple Choice

Review LaterAdd Note

Review Later

Assume that Steffi signed a $50,000 installment note when she signed the franchise agreement.RS has no experience estimating uncollectible accounts associated with these sorts of notes.RS can recognize:

A) $50,000 of revenue when Steffi signs the agreement.
B) $50,000 of revenue as soon as it has assisted Steffi in setting up the store.
C) Revenue under the installment sales method,starting when Steffi signs the agreement.
D) Revenue under the installment sales method,as soon as it has assisted Steffi in setting up the store.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 152

Essay

Review LaterAdd Note

Review Later

Use the following to answer questions Missoula Inc.reported the following selected financial statement data: -Required: Compute the asset turnover ratio for 2016.

Correct Answer

verified

$400,000 /...

View Answer

Show Answer

Question 153

Essay

Review LaterAdd Note

Other competing sellers in the same region charge an average of $250 for a set of goggles and $750 for the lessons,if sold separately.Beaumont Company usually sells at a 5% discount compared to other shops,since it is a bit farther away from the ocean.Required: What would be Beaumont's stand-alone selling price of the goggles and the lessons,based on adjusted market assessment approach?

Prepare Veras' March 31 journal entry to record the revenue earned from March 1 - March 31,as well as any appropriate adjustments to the revenue already presumed recorded as earned from January 1 - February 28.

Rothbart Manufacturing agrees to manufacture bumper cars for 12 Banners Amusement Parks.Under the terms of the contract,12 Banners will pay Rothbart a total of $60,000,and 12 Banners can cancel the contract if it so chooses but must pay Rothbart for work completed.Rothbart believes that,if 12 Banners cancelled the contract,Rothbart could sell the bumper cars to another amusement park and still make a profit.The manufacturing contract is expected to last six months,and as of December 31,2016,the job is 80% complete.How much revenue should Rothbart recognize in 2016 for this contract?

The cost recovery method of accounting for long-term construction contracts under IFRS is sometimes referred to as the:

The decomposition of return on assets illustrates why some companies with low profit margins can be very profitable if their asset turnover is high.

Hulkster's 2016 return on shareholders' equity is (rounded) :

When a contract includes variable consideration,the probability-weighted amount must be used when there are different probabilities of occurrence.

Recognition of franchise fee revenue is dependent on judgments of both substantial performance and expected collection of fees.

In 2016,Reliable would recognize gross profit of:

Are the following separate performance obligations: prepayments,quality-assurance warranty,extended warranty,right of return? For each,indicate yes or no,and explain.

Return on shareholders' equity is increased if a firm can maintain its return on assets but increase its leverage.

Assume Emmet estimates variable consideration as the expected value.How much revenue should Emmet recognize on this contract in 2016?

In its 2015 year-end balance sheet,Reliable would report installment receivables (net) of:

Gunk Goblin sells vacuums and just launched a policy where customers have the right to return a vacuum during a three-year period following purchase.Gunk management has no experience under this sort of policy and does not believe it can accurately estimate returns.What is the longest period of time that Gunk may have to wait before recognizing revenue associated with one of these sales?

Which of the following does not apply to a seller who is a principal?

Hulkster's 2016 average collection period is:

Companies recognize revenue only when

In which of the following is the option described not a performance obligation?