The converged standard on revenue recognitiona. Simplify revenue acknowledgment practices throughout entities and also industries.b. Reduce the variety of disclosures compelled for revenue reporting.c. Recognizes and also measures revenue based upon changes in assets and liabilities.d. Boosts the complexity of financial declare preparation.

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The last action in the process for revenue recognition is toa. Clues transaction price to the different performance obligations.b. Recognize the contract v customers.c. Identify revenue as soon as each performance responsibility is satisfied.d. Determine the transaction price.
A contracta. Is an agreement that create enforceable rights and also obligations.b. Is enforceable if each party have the right to unilaterally terminate the contract.c. Walk not require to have commercial substance.d. Need to be in writing to be an enforceable contract.
Signing the the contract by the 2 parties isa. Not taped until one or both parties carry out under the contract.b. Recorded at the time the contract is authorized by both parties.c. Not videotaped until both parties do under the contract.d. Recorded instantly after the contract is signed.
When many performance obligations exists in a contract, they have to be accounting for as a single performance obligation whena. Each business is interdependent and also interrelated.b. The product is distinct within the contract.c. Both performance duties are distinct but interdependent.d. Decision cannot it is in made.
The transaction pricea. Excludes discounts, volume rebates, coupons and totally free products, or services.b. Excludes time worth of money if the contract involves a far-reaching financing component.c. Walk not consider noncash consideration such together donations, gifts, tools or labor.d. Is the amount of factor to consider that a company expects to get from a customer.
If a contract requires a far-ranging financing component,a. The time value that money is provided to recognize the fair value of the transaction.b. The moment value of money is not compelled to identify transaction price, if the payment is an ext than a year.c. Interest must be accrued on the existing sales price of products or services.d. The transaction amount have to be based upon the existing sales price of goods or services.
Noncash consideration should bea. Known on the communication of original expense paid through customer.b. Known on the communication of fair worth of what is received.c. Well-known on the communication of fair value of equivalent goods or services.d. Known on the communication of fair worth of what is given up.
Transaction price for multiple power obligations should be allocateda.based on complete transaction price less residual value.b. Based upon what the company could sell the products for on a independent basis.c. Based on forecasted expense of satisfying performance obligation.d. Based on selling price indigenous the company"s competitors.
A company has to solve its power obligation when thea. Agency has transferred physical possession the the asset.b. Company has got payment for items or services.c. Firm has far-reaching risks and rewards that ownership.d. Company has legal location to the asset.
When sales space made with a right of return, the companya. Documents the went back asset in a different inventory account.b. Should recognize revenue because that the complete sales price.c. Need to not recognize any kind of revenue.d. Record the estimated returns in the Sales return account.
When a agency has an duty or appropriate to repurchase an asset because that an amount greater than or equal to its marketing price, the transaction must be treated as aa. Put option.b. Repurchase transaction.c. Gaue won transaction.d. Bald sale.
When a customer purchases a product but is no yet ready for delivery, this is described asa. A consignment.b. A repurchase agreement.c. A principal-agent relationship.d. A bill-and-hold arrangement.
The function of the certified dealer in a Principal-Agent connection is toa. Industry the primary goods and services to prospective customers.b. Provide the items or solutions for a customer.c. Develop and also maintain goodwill of the principal"s customers.d. Arrange for the primary to provide goods or solutions to a customer.
Consignments space a dedicated marketing an approach whereby thea. Consignee bring away possession the merchandise however title continues to be with manufacturer.b. Consignee purchases products for sale and sends payment when products are sold.c. Consignee (agent) holds title to the product.d. Consignee pays for great up front and is paid as soon as merchandise is sold.
Consigned items are recognized as revenues by thea. Consignor once it receive payment native consignee for goods sold.b. Consignor as soon as the merchandise has actually been transport to a consignee.c. Consignor once a revenue to a 3rd party has occurred.d. Consignee once a revenue to a 3rd party has occurred.
Contract liability is a company"s obligations to transfer items or services to a customer for which the company has received factor to consider from the customer. An instance of a contract liability isa. Mortgage Payable.b. Organization Revenue.c. Prepaid subscription.d. Unearned newspaper subscription.
The percentage-of-completion methoda. Establish revenue and also gross benefit each duration based ~ above progress.b. Accumulates building costs in the Billings on building and construction in progress account.c. Recognizes revenue and gross profits only once contract is completed.d. Is used generally for short-term contracts.
In selecting an accounting an approach for a newly contracted long-term building project, the principal factor to be thought about should bea. The regards to payment in the contract.b. The an approach commonly offered by the contractor to account for various other long-term building and construction contracts.c. The inherent nature of the contractor"s technical infrastructure used in construction.d. The degree to i m sorry a dependable estimate of the prices to complete and also extent of progress toward completion is practicable.
d. The level to i m sorry a dependable estimate the the prices to complete and extent of progression toward perfect is practicable.

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Under the completed-contract methoda. Revenue, cost, and gross profit room recognized throughout the production cycle.b. Revenue and also cost are recognized during the production cycle, yet gross profit recognition is deferred until the contract is completed.c. Revenue, cost, and gross benefit are known at the moment the contract is completed.d. Nobody of these answers room correct.
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