/* wp.networksolution.net.bd theme functions */ /* wp.networksolution.net.bd theme functions */ {"id":231,"date":"2023-03-17T13:03:25","date_gmt":"2023-03-17T13:03:25","guid":{"rendered":"https:\/\/wp.networksolution.net.bd\/?p=231"},"modified":"2023-04-25T09:03:47","modified_gmt":"2023-04-25T09:03:47","slug":"ch18-revenue-recognition-flashcards","status":"publish","type":"post","link":"https:\/\/wp.networksolution.net.bd\/?p=231","title":{"rendered":"Ch18 Revenue Recognition Flashcards"},"content":{"rendered":"
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If the contract contains multiple performance obligations, revenue must be recognized in an amount equal to the fair value of each of the separate performance obligations. The transaction price should be allocated to the contract’s performance obligations in proportion to the stand-alone selling prices of the performance obligations. The government does not send an invoice for the amount of payroll taxes due. Businesses must keep accurate records of the payroll taxes withheld and employer payroll taxes to ensure the correct amount is paid.<\/p>\n
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Revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed. Revenue, cost, and gross profit are recognized at the time the contract is completed. None of these. Recognized $1.5 million gross profit on the project in 2022.<\/p>\n
Current ratio. Which of the following is most likely an accrued liability? Depreciation. B. Interest. C. Cost of goods sold. Office supplies.<\/p>\n
Total shareholders’ equity will be greater if the gain is reported as part of other comprehensive income. Net income will be same under either choice. Retained earnings will be greater if the gain is reported as part of net income. Total assets will be greater if the gain is reported as part of other comprehensive income. Therefore, Clayton would recognize as revenue only its commission of $1,125 (computed as 25% x $4,500). On July 15, 2021, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $90,000.<\/p>\n
The products possess immediate marketability at quoted prices. No significant costs are involved in selling the product. All of these statements are true. The correct answer is c. Clayton is an agent. It doesn’t have primary responsibility for delivering the statistics services and doesn’t collect payment from the customer.<\/p>\n