Gia02 tb chapter 08ol - Intermediate Accounting 2E - Gordon - TB PDF

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella)Chapter 8OL Revenue Recognition (Previous Standard)8OL General Revenue Recognition Guidelines1) According to the FASB, revenue is defined as inflows that result from delivering or producing goods or providing services connected to a company's major ...

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella) Chapter 8OL Revenue Recognition (Previous Standard) 8OL.1 General Revenue Recognition Guidelines 1 )Ac c or di ngt ot heF ASB, r e ve nuei sde fineda si nflowst ha tr e s ul tf r om de l i ve r i ngorpr oduc i nggoodsor pr o vi di ngs e r vi c esc onne c t e dt oac ompany' sma j orbus i ne s soper a t i ons . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i v e :8 . 1 I FRS /GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

2 )Re ve nuer e c ogni t i onde al swi t ht hei s s ue soft i mi ngandme as ur e me nt . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i v e :8 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Ac c or di ngt ot heF ASB,r e ve nuei sr e c ogni z edwheni ti sr e al i z e dorr e a l i zabl eandhasbe enear ne d. Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

4 )Ac c or di ngt ot heF ASB,whe nas e l l erhasc ol l ec t e dc as h,t hee a r ni ngspr oc es si sc ompl e t e . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

5 )Ac c or di ngt ot heF ASB,whe nas e l l erhasc ol l ec t e dc as h,t hee a r ni ngspr oc es si svi r t ual l yc ompl e t e . Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

6 )I FRSdoesnotr e qui r epe r s uas i vee vi denc eofa na r r angeme nti nor de rf orr e venuet ober ec ogni z ed. Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:I FRS AACSB:Appl i c a t i onofknowl e dge

1 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

7 )Wha ti sama j ordi ffe r e nc ebe t wee nGAAPandI FRSwi t hr e gar dt or ec o gni t i onofr e ve nue ? A)UnderI FRS, t hes e l l erdoe sno tha vet ot r a ns f e rr i s ksa ndr e war dsofowne r s hi pt ot hebuyer . B)I FRSdoe sno tr equi r ede l i ver yofgoodsf orr e ve nuet ober ec ogni z e d. C)Unde rI FRS, t hepr i c eoft heg oodsdoe sno tha vet obefix e dorde t e r mi nabl e . D)Unde rI FRS,t hes e l l e rma yr e t a i nmana ge r i ali nvol ve me ntove rt heg oodsaf t e rs al e . Ans we r :B Di ff: 2 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:I FRS AACSB:Appl i c a t i onofknowl e dge

8 )Whi c hoft hef ol l owi ngi sno tama j orc ondi t i onf orr e ve nuer ec o gni t i onunderI FRS ? A)Pe r s uas i vee vi de nc eofanar r a nge ment . B)Ri s ksa ndr e wa r dsha vet r ans f er r e dt ot hebuyer . C)Re ve nue sandc os t sc anber e l i a bl yme a s ur e d. D)Pr obabl et ha te c onomi cbene fit swi l lflow t ot hes e l l e r . Ans we r :A Di ff: 2 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:I FRS AACSB:Appl i c a t i onofknowl e dge

9 )Li s tt hef ourc r i t e r i as pe c i fie dbyt heSe c ur i t i e sa ndEx c hangeCommi s s i onf orde t e r mi ni ngwhe t he r r e ve nues houl dber e por t e dont hei nc omes t a t e ment . Ans we r : 1 .Ther ei sper s ua s i vee vi de nc et ha tanar r a nge me nte xi s t s . 2 .De l i ve r yhasoc c ur r e dors e r vi c esha vebe enr e nder ed. 3 .Thes e l l e r ' spr i c et ot hebuyeri sfixe dorde t e r mi nabl e . 4 .Col l e c t abi l i t yi sr e as ona bl ya s s ur e d. Di ff: 2 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 0)Li s tt hefivec ondi t i onss pe c i fie dbyI FRSf orr e ve nuer e c ogni t i onf r om t hes a l eofgoods . Ans we r : 1 .Thes e l l e rha st r a ns f er r edt hes i gni fic a ntr i s ksandr e war dsofowne r s hi poft hegoodst ot hebuye r . 2 .Thes e l l e rr e t ai nsne i t he rc ont i nui ngma na ge r i ali nvol ve me ntnoreffe c t i vec ont r olove rt heg oodss ol d. 3 .Thes e l l e rc a nme as ur et hea mountoft her e venuer e l i abl y . 4 .I ti spr obabl et ha tt hee c onomi cbene fit sas s oc i a t e dwi t ht het r a ns ac t i onwi l lflow t ot hes e l l e r . 5 .Thes e l l e rc a nme as ur ec os t si nc ur r e dort obei nc ur r e di nr es pe c toft het r ans a c t i onr el i a bl y . Di ff: 2 Var :1 Obj e c t i v e :8 . 1 I FRS/GAAP:I FRS AACSB:Appl i c a t i onofknowl e dge

2 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

8OL.2 Revenue Recognition at Delivery 1 )Whenafir m de l i v er sme r c handi s et oabuyer ,i tha sme tbot hc r i t er i af orr e ve nuer e c ogni t i on. Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Re ve nuer e c ei ve di na dva nc ei sr e c or de dasa nas s e tont hepr ovi de r ' sbal a nc es hee t . Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )GAAPandI FRSbot hal l ow ac ompanyt or e por ts e r vi c er e ve nueus i ngt heper c e nt a geofc ompl e t i on me t hod. Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

4 )Abl es e l l sapi e c eofe qui pmentt oSmyt hef or$ 2, 300onAugus t1 .Theequi pmentc os t$1 , 3 00. The e qui pme nti spi c ke dupbySmyt heonAugus t1 0. How i st hi st r ans a c t i onac c ount e df orunde raper pet ual s ys t e m ofi nvent or y ? A) S al e s Ac c ount sRec e i va bl e Cos tofGoodsSol d I nve nt or y B) Ac c ount sRec e i va bl e S al es Cos tofGoodsSol d I nve nt or y C) S al e s Ac c ount sRec e i va bl e Cos tofGoodsSol d I nve nt or y D) Ac c ount sRec e i va bl e S al es

1, 30 0 1, 30 0 1, 30 0 1, 30 0

2, 30 0 2, 3 00 1 , 3 00 1 , 3 00

2, 30 0 2, 30 0 2, 30 0 2, 30 0

2, 30 0 2, 3 00

Ans we r :B Di ff: 2 Var :1 Obj e c t i v e :8 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

4 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

5 )Char l e s t onYac htCl ubs e l l sa nnualpas s e st oi t sf a c i l i t i e s .Anannualpas sc os t s$ 8, 000a ndi sgoodf or ye ar r oundus e . OnJ a nuar y1 ,t hec ompanys e l l s90pa s s e sa ndc ol l e c t st hec as h.Thee nt r yonMa r c h3 1 t or e c or dr e ve nuei s__ __ ___ _. ( Donotr oundi nt e r medi a r yc al c ul a t i ons ,andr oundyourfinala ns wert o t henear e s twhol edol l ar . ) A) Cas h $18 0, 00 0 Une a r ne dRe ve nue $18 0, 00 0 B) Cas h Re ve nue

$18 0, 00 0

C) Une ar ne dRe venue Re ve nue

$ 18 0, 000

D) Re ve nue Une a r ne dRe ve nue

$ 18 0, 000

$ 180 , 000

$ 180 , 000

$18 0, 00 0

Ans we r :C Di ff: 2 Var :1 Obj e c t i v e :8 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

8OL.3 Special Issues in Revenue Recognition 1 )Ther i ghtofr e t ur nr e pr e s e nt sas e pa r a t epe r f or ma nc eobl i gat i on. Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Ac ons i gnme nts al ei sa ne xa mpl eofapr i nc i pa l a gentar r ange ment . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Tr ans ac t i onswhe r eabuye ra c c e pt st i t l ea ndbi l l i ngsbutdel a ysr e c e i ptoft hegoodsi sabi l l a ndhol d a r r ange ment . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )As e l l e rr e c ogni ze st her i ghtt or et ur ns al esa sa( n)_ __ ___ __. A)l i abi l i t y B)as s e t C)r e venue D)e xpens e Ans we r :A 5 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

Di ff: 1 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )Whi c honeoft hef ol l owi ngi sno tani ndi c a t orofac ons i gnmentar r ange me nt ? A)Cons i gnorc ont r ol spr oduc tunt i las pe c i fice ve ntoc c ur s . B)Cons i gnorc a nr equi r et hegoodsber e t ur ne d. C)Cons i gneedoesnotha vea nunc ondi t i ona lobl i ga t i ont opa y . D)Cons i gnorc a nnotr e qui r egoodst ober et ur ne d. Ans we r :D Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

6 )Anot he rnamef orc hanne ls t uffingi s_ __ ___ __ . A)t r a des t uffing B)t r a del oadi ng C)c hanne ll oa di ng D)t r adedi s c l os ur e Ans we r :B Di ff: 1 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

7 )Loui s epa i nt ss e as c apesa ndl ands c ape s .I n20 17s hepl ac e dni neofhe rmos tpr i ze dpa i nt i ngswi t ht he Wai nwr i ghtS t udi oGal l er y .Thepai nt i ngse ac hc a r r i e dapr i c eof$1 , 0 00 ,andLoui s emadeadealwi t ht he Gal l e r yt opa yt he m a40 %c ommi s s i ononal lpai nt i ngss ol d.Att heendoft hey ea rt hr e epai nt i ngshad be e ns ol d. Ho w muc hr e ve nuewi l lLoui s er e c ogni zeont hec ons i gnments a l e s ? A)$3, 0 00 B)$1 , 8 00 C)$1, 2 00 D)$ 0 Ans we r :A Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

6 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

8 )ABCCompanyi shol di nggoodswi t has e l l i ngpr i c eof$25 0, 00 0whi c hc os tt hem $ 86 , 0 00.On De c e mbe r3,2 01 7,ABCs ol dt hegoodst oTi mmonsunde rabi l l andhol dar r angeme nt .Att hee ndof 2 01 7,ABCs t i l lhol dst hegoods .How muc hr e ve nues houl dABCr e c ogni z ef or20 17 ? A)$25 0, 00 0 B)$8 6, 00 0 C)$16 4, 00 0 D)$ 0 Ans we r :D Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

9 )F ar eJ e we l r yCompanyi shol di nggoodsonc ons i gnme ntf r om T omkowi t has e l l i ngpr i c eof$ 70 0, 000 . F ar ei spr omi s e dac ommi s s i onof25% f orgoodss ol d.Byt hee ndof2 017Fa r ehass ol d$5 30, 00 0ofgoods . Re f e rt oFar eJ e we l r y . How muc hr e ve nues houl dTomkor e c ogni z ef or20 17ont hi st r ans ac t i on? A)$0 B)$1 75, 0 00 C)$13 2, 50 0 D)$ 530 , 000 Ans we r :D Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

1 0)Fa r eJ e we l r yCompa nyi shol di nggoodsonc ons i gnmentf r om Tomkowi t has e l l i ngpr i c eof $ 1, 50 0, 000 .F ar ei spr omi s e dac ommi s s i onof2 5% f o rgoodss ol d.Byt hee ndof2 017Fa r ehass ol d $ 44 0, 000ofgoods .Ref e rt oFar eJ e we l r y .Ho w muc hr e venues houl dFa r er e c ogni zef o r201 7ont hi s t r ans ac t i on? A)$0 B)$1 10, 0 00 C)$37 5, 00 0 D)$ 440 , 000 Ans we r :B Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Ana l yt i c a lt hi nki ng

1 1)Wha ti sac ons i gnme nts al e ? Ans we r :Ac ons i gnme nts al ei sa nar r a nge me ntwhe r ea nowne rofgoods( c ons i gnor )de l i ve r st hos e goodst oat hi r dpa r t y( c ons i gne e) , whos e l l st hegoodst oac us t omer . Ac ons i gnme nts a l ei sane xampl eof apr i nc i pal a ge nta r r a ngeme nt .Thea ge ntr e c or dsonl yt her e ve nuet ha theors her e c e i ve si nc ommi s s i ons , whi l et hepr i nc i pa lr e c ogni zest hegr os sr e ve nuef r om t hes al ea ndr e c or dst hec ommi s s i onpai dt ot he c ons i gne easas el l i nge xpens e . Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 2)Wha ta r et het hr ees t epsi nt hepr oc es sf orde t e r mi ni ngt hea mountandt i mi ngofr e ve nuer e c ogni t i on f o rmul t i pl e e l e menta r r angement s ? Ans we r : 1 .De t e r mi newhe t he rt hea r r ange mentc anbedi vi de di nt os e par a t euni t sofac c ount i ng . 2 .Al l oc a t et heamountr e c e i v edf r om t hebuye rf ort hee nt i r ear r a nge me ntt ot hes e pa r a t euni t sof a c c ount i ng. 7 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

3 .Appl yge ne r a lr e ve nuer e c ogni t i onc r i t e r i a . Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 3)Expl ai nabi l l a ndhol dar r angeme nt . Ans we r :Abi l l andhol da r r ange menti sat r ans a c t i onwhe r eabuye ra c c e pt st i t l ea ndbi l l i ngsbutde l a ys t hephys i c a lr e c e i ptoft hegoods .Thebuye rma yr e que s tadel ayi nde l i ver yf oranumberofr e as ons . The s e l l e rma yr e c ogni zer e ve nuei fhehast r ans f e r r e dc ont r ol .Ther ear ef ourc r i t e r i at ha tmus tbeme tf or c ont r ol t obet r ans f e r r e dt ot hebuy er : 1 .Ther e as onf ort hebi l l andhol dar r angeme ntmus tbes ubs t ant i ve . 2 .Thepr oduc tmus tbes e par a t e l yi de nt i fiedasbel ongi ngt ot hec us t ome r . 3 .Thepr oduc tmus tber ea dyf orphys i c alt r ans f ert ot hec us t ome r . 4 .Thes e l l i nge nt i t yc annotha vet heabi l i t yt ous et hepr oduc ti nanywa y. Di ff: 2 Var :1 Obj e c t i v e :8 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8OL.4 Revenue Recognition before Delivery 1 )I ti ss omet i me sne c e s s ar yt or e c ogni zer e ve nuebe f or ede l i ve r yt omai nt a i nt hepr edi c t i veval ueof financ i ali nf or mat i on. Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Thet womet hodsf orr ec ogni z i ngr e venuef r om l ongt e r mc ont r ac t sa r et hepe r c e nt a ge of c ompl e t i on me t hodandt hepoi nt of s a l eme t hod. Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

3 )Theper c e nt a ge of c ompl et i onme t hodandc ompl et e dc ont r ac tme t hodar ei nt e r c hange a bl eal t e r na t i v es f o rr e ve nuer e c ogni t i on. Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )Thec ompl e t e dc ont r a c tme t hodr e c ogni z esgr os spr ofitove rt hel i f eoft hec ont r a c t . Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )Thet ot a lpr ofitr ec ogni ze donac ont r a c tus i ngt hec ompl e t e dc ont r ac tme t hodi sdi ffer entt hant het ot al pr o fitr e c ogni z edundert heper c e nt a ge of c ompl et i onme t hod. Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

6 )T wome t hodsus e dt oa c c ountf orr e ve nuer e c ogni t i onf orl ongt er mc ont r a c t sa r et hepe r c e nt a ge of c ompl et i onme t hoda ndt he___ ___ __ . A)i ns t a l l ments al esme t hod B)c os tr e c ove r yme t hod C)c ompl et edc ont r a c tme t hod D)s al e sme t hod Ans we r :C Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

7 )Theper c e nt a ge of c ompl et i onme t hodr e c ogni z esgr os spr ofit__ __ ___ _. A)overt hel i f eoft hec ont r ac t B)a tt heendoft hec ont r ac t C)a tt hebe gi nni ngoft hec ont r a c t D)oneye a raf t erc ompl et i onofc ont r ac t Ans we r :A Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

9 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

8 )Theme t hodofr e por t i nggr os spr ofitf orl ongt e r mc ont r ac t st ha tdoesabe t t e rj obofpr ovi di ngr e l e va nt i nf or ma t i onont hei nc omes t a t e menti st he__ __ ___ _ . A)c ompl e t edc ont r a c t met hod B)i ns t al l ments al e smet hod C)c os tr e c ove r yme t hod D)per c ent age of c ompl et i onme t hod Ans we r :D Di ff: 1 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

9 )Expl a i nt hes i mi l ar i t i esa nddi ffer enc e sbe t we ent het wome t hodsofa c c ount i ngf orl ong t e r mc ont r ac t s . Ans we r :Thet wome t hodsf orac c ount i ngf orl ongt e r mc ont r ac t sar et heper c e nt a ge of c ompl et i on me t hodandt hec ompl e t e dc ont r ac tme t hod.Bot hmet hodsofa c c ount i ngr e c or dc ons t r uc t i oni npr ogr e s s , r ec e i vabl e s ,bi l l i ngs , andc ol l ec t i onsi nt hes amemanne ront heba l anc es hee t . Howe ve r , t hepe r c e nt a ge of c ompl et i ona ppr oac hr e c or dsaper c ent ageofr e ve nueandpr ofitbas e dupont hepe r c e nt a geofc os t s i nc ur r e dt oe s t i ma t e dt ot a lc os t s . Byc ont r as t , t hec ompl e t e dc ont r a c tme t hod,r e c or dsnopr ofit sunt i lt he c ont r ac ti sc ompl et e d. Bot hme t hodsr ec or dl os s e sa ss oonast he yar ei nc ur r e d. Di ff: 2 Var :1 Obj e c t i v e :8 . 4 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8OL.5 Percentage-of-Completion Method 1 )Thec umul at i vepe r c e nt a geofc ompl e t i oni sf oundbydi vi di ngt het ot a lc os t si nc ur r e dt oda t ebyt he e s t i ma t e dt ot a lc os toft hepr oj e c t . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Theper c e nt a ge of c ompl et i onme t hodma yut i l i z eac os t t oc os ta ppr oac horanout putme as ur e a ppr oa c h. Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Theper c e nt a ge of c ompl et i onme t hodc onf or mst ot hema t c hi ngpr i nc i pl e . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

4 )Theper c e nt a ge of c ompl et i onme t hodvi ol a t e st hegene r alr ul ef orr e venuer e c ogni t i ont ha tt he e ar ni ngspr oc e s si sc ompl et e . Ans we r :TRUE Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )J our nale nt r i esf ort hepe r c e nt a ge of c ompl e t i onme t hodar eonl yma dea tt hec ompl e t i onoft hepr oj e c t . Ans we r :F ALSE Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

6 )TheCons t r uc t i oni nPr o gr es sac c ounti swha tt ypeofac c ount ? A)l i abi l i t y B)r e ve nue C)as s e t D)e xpens e Ans we r :C Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

7 )TheBi l l i ngsonCons t r uc t i oni nPr ogr es si sa ( n)__ ___ ___ . A)as s e t B)l i abi l i t y C)c ont r aa s s e t D)r e ve nue Ans we r :C Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8 )Cons t r uc t i onc os t sandpr ofit si ne x c e s sofbi l l i ngsa r ec a r r i e dont hebal a nc es hee tasa ( n)__ ___ __ _. A)as s e t B)l i abi l i t y C)e qui t y D)r e ve nue Ans we r :A Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 1 Copyr i ght©2 01 9Pe a r s onEduc a t i on,I nc .

9 )Bi l l i ngsi ne x c e s sofc os t sandpr ofit sar ec a r r i e dont hebal anc es he e tasa( n)___ ___ __ . A)as s e t B)l i abi l i t y C)e qui t y D)r e ve nue Ans we r :B Di ff: 1 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0)Whe nus i ngt hepe r c e nt a geof c ompl et i onme t hodt oa c c ountf oral ongt e r mc ont r ac t ,t heper c e nt a ge us e dt or ec ogni z egr os spr ofiti nt hefir s ty ea ri sdet e r mi nedbydi vi di ng___ ___ __ . A)c os t si nc ur r e di nt hefir s tye arb ye s t i ma t e dt ot alc os t soft hepr oj e c t B)c os t si nc ur r e di nt hefir s ty ea rb ye s t i mat e dr emai ni ngc os t soft hepr oj e c t C)c os t si nt hefir s tye a rbyc ont r ac tpr i c e D)e s t i ma t e dt ot a lpr o fitbyc ont r ac tpr i c e Ans we r :A Di ff: 2 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 1)Thepe r c e nt a geof c ompl et i onme t hodac c ount i ngs houl dno tbeus edi f_ __ ___ __ . A)c ompl e t i onr a t e sar edet e r mi nabl e B)c ompl et i ont i meonpr oj e c t se xc e e dsf ourye ar s C)pr ofit sar el ow D)i ti snotpos s i bl et oma kedependa bl ee s t i ma t e sofpr ogr e s s Ans we r :D Di ff: 2 Var :1 Obj e c t i v e :8 . 5 I FRS/GAAP:GAAP/...