Question

1. Revenue is considered to be earned when?: a company exchanges goods or services for cash...

1. Revenue is considered to be earned when?:

  1. a company exchanges goods or services for cash or claims to cash.
  2. when it is realized or realizable.
  3. a company has substantially completed what it must do in order to be entitled to the benefits represented by the revenues.
  4. assets received by the company in exchange for goods or services are readily convertible to known amounts of cash or claims to cash.

2. At which point in the revenue recognition process can revenue actually be recognized?

  1. When the contract is signed.
  2. When the price has been agreed to.
  3. When all performance obligations have been satisfied.
  4. At the earliest of the above three times

In the case where the price of a good or service is dependent on some future event, what amount would the seller recognize as revenue?
A. The expected value.
B. The most likely amount.
C. Either the expected value or the most likely amount, whichever is most easily determinable.
D. Only the amount that is known at the time performance is complete.

Which of the following indicate that a seller’s performance obligations have been satisfied?

a. The customer can direct the use of the good or service purchased without hindrance from the seller.

b. The customer can prevent others from receiving any benefit from the good or service purchased.

c. The customer has legal title to, and physical possession of, the asset purchased.

d. All of the above indicate satisfaction of a seller’s performance obligations.

Homework Answers

Answer #1

1) C)

  1. a company has substantially completed what it must do in order to be entitled to the benefits represented by the revenues.

2) C)

  1. When all performance obligations have been satisfied.

3) C)

C. Either the expected value or the most likely amount, whichever is most easily determinable.

4) C) c. The customer has legal title to, and physical possession of, the asset purchased

THANKS IN ADVANCE FOR GIVING ME POSITIVE RATINGS
MAY GOD BLESS YOU
STAY HOME STAY SAFE
HAVE A WONDERFUL DAY
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Revenue is recognized when: A. A seller collect cash from a customer B. It has been...
Revenue is recognized when: A. A seller collect cash from a customer B. It has been earned and is realized or realizable C. A company has satisfied its performance obligation to the customer D. A company bills the customer for the goods that have been delivered or the services performed
Which of the following is a liability created when a company receives cash for services to...
Which of the following is a liability created when a company receives cash for services to be provided in the future? Your Answer:    Unearned revenue    Accrued liability    Service revenue    Estimated warranty payable
True or False 1. A company makes a credit sale for $500. Future collection from the...
True or False 1. A company makes a credit sale for $500. Future collection from the customer is probable. The company will not record revenue from the transaction until it collects cash from the customer. 2. Credit sales involve benefits and costs. A benefit of selling on credit is that the seller makes it more convenient for customers to purchase goods and services. A cost of selling on credit is that there is a delay in collecting cash from customers....
On February 1, 2018, company A sold a package of goods to a customer that included...
On February 1, 2018, company A sold a package of goods to a customer that included Products A, B, and C. The total sales price was $100,000 which was paid by the customer and product A was delievered to the customer on that date. Product B was delievered to the cistomer on March 1, 2018 and product C was delivered on August 1, 2018. Company A regularly sells Product A and b on a stand-alone basis for $60,000 and $40,000,...
On February 1, 2018, company A sold a package of goods to a customer that included...
On February 1, 2018, company A sold a package of goods to a customer that included Products A, B, and C. The total sales price was $100,000 which was paid by the customer and product A was delievered to the customer on that date. Product B was delievered to the cistomer on March 1, 2018 and product C was delivered on August 1, 2018. Company A regularly sells Product A and b on a stand-alone basis for $60,000 and $40,000,...
On February 1, 2018, company A sold a package of goods to a customer that included...
On February 1, 2018, company A sold a package of goods to a customer that included Products A, B, and C. The total sales price was $100,000 which was paid by the customer and product A was delievered to the customer on that date. Product B was delievered to the cistomer on March 1, 2018 and product C was delivered on August 1, 2018. Company A regularly sells Product A and b on a stand-alone basis for $60,000 and $40,000,...
1. Oleander Company paid $22,000 for goods it had purchased last month on account. What is...
1. Oleander Company paid $22,000 for goods it had purchased last month on account. What is the effect of the payment? a) an increase in cost of good sold b) a decrease in accounts payable c) an increase in inventory d) a decrease in inventory 2. Information that has been determined based on the best information available using the correct process and with an adequate explanation provided is an example of which fundamental characteristic? a) Faithful representation b) neutral c)...
Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the...
Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $476 and the merchandise basket normally sells for $204. Together, the bundle was sold to Val Amy for cash at a selling price of $540 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $125. Aug. 3 Sold 5 identical items of...
1. This number tells you the amount of money the company spent to produce the goods...
1. This number tells you the amount of money the company spent to produce the goods it sold during the accounting period. Revenue or Sales Operating Expenses Cost of Sales Gross Profit 2. Only manufacturing or merchandising companies have cost of sales since they make or buy products to sell to others. True False 3. Sales or Revenue minus costs of sales is called “gross profit” or sometimes “gross margin. Operating Income Net Sales Net Income 4. These are expenses...
1. In the markets for goods and services , in the circular-flow diagram, Question 1 options:...
1. In the markets for goods and services , in the circular-flow diagram, Question 1 options: households and firms are both buyers. households and firms are both sellers households are buyers and firms are sellers. households are sellers and firms are buyers. Question 2 (2.5 points) 2. The law of demand states , other things equal: Question 2 options: When the price of a good or service decreases, the quantity demanded decreases. When the price of a good or service...