Homework Answers
Ans C. the customer obtains control of the good or service.
The revenue recognition principle states that one should record revenue when it has been earned. It must not be recorded when the related cash is collected.
Eg. A parking lot has monthly fees of $50. It must recognise the revenue at the end of the month when the service is completed. It must not be recorded when the cash for the same is received.
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Under the revenue recognition principle, a good or service is considered transferred when A. all performance...
1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition?...
1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition? Multiple Choice The focus is on when the firm has earned the consideration to which it is entitled. Early adoption is not allowed. The new rules are more rules-based than principle-oriented. Under IFRS, both public and non-public firms must adopt by 2018 2.Assuming the requirements for recognizing revenue over time are met, the measure of completion is computed by dividing Multiple Choice profits earned...
In a service company, revenue is earned when the service is --------? The expense recognition principle...
In a service company, revenue is earned when the service is
--------?
The expense recognition principle attempts to match
------------with---------------?
The general principle of income recognition establishes that companies recognize income when Select one: a. Control...
The general principle of income recognition establishes that companies recognize income when Select one: a. Control of the goods or services is transferred to customers for the amount that the company expects to be entitled to receive in exchange for those goods or services. b. goods or services are transferred to the customer and payment is received. c. the goods or services are transferred to the customer in a transaction between related parties. d. the earnings process is nearly complete...
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in...
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in the period that income taxes are paid. O when cash is received. O when the performance obligation is satisfied. O at the end of the month.
The revenue recognition principle a. determines when revenue is credited to a revenue account b. is...
The revenue recognition principle a. determines when revenue is credited to a revenue account b. is not in conflict with the cash method of accounting c. controls all revenue reporting for the cash basis of accounting d. states that revenue is not recorded until the cash is received
The revenue recognition principle requires O A. time to be divided into annual periods to measure...
The revenue recognition principle requires O A. time to be divided into annual periods to measure revenue properly. O B. revenue to be recorded only after the cash is received. O C. revenue to be recorded only after the business has satisfied its performance obligation OD. expenses to be matched with revenue of the period. Click to select your answer
Identifying the Five Steps in the Revenue Recognition Process Match each step 1 through 5 with...
Identifying the Five Steps in the Revenue Recognition Process Match each step 1 through 5 with the sales process described in a through e. Step 1: identify contract(s) with customer. Step 2: identify performance obligation(s) in the contract. Step 3: determine transaction price. Step 4: allocate transaction price to performance obligation(s). Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer of control a. The total price for the computer and two years of services...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
According to the revenue recognition principle, revenues should be recognized when they are earned, which happens...
According to the revenue recognition principle, revenues should be recognized when they are earned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transaotions occurred in September Required For each of the transactions, if revenue is to be recognized in September, indicate the amount. Amount Activity a. Gillespie Enterprises Inc. issued $25 million in new common stock Cal State University...
In a service company, revenue is earned when the service is
--------?
The expense recognition principle attempts to match
------------with---------------?
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in the period that income taxes are paid. O when cash is received. O when the performance obligation is satisfied. O at the end of the month.
The revenue recognition principle a. determines when revenue is credited to a revenue account b. is not in conflict with the cash method of accounting c. controls all revenue reporting for the cash basis of accounting d. states that revenue is not recorded until the cash is received
The revenue recognition principle requires O A. time to be divided into annual periods to measure revenue properly. O B. revenue to be recorded only after the cash is received. O C. revenue to be recorded only after the business has satisfied its performance obligation OD. expenses to be matched with revenue of the period. Click to select your answer
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
According to the revenue recognition principle, revenues should be recognized when they are earned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transaotions occurred in September Required For each of the transactions, if revenue is to be recognized in September, indicate the amount. Amount Activity a. Gillespie Enterprises Inc. issued $25 million in new common stock Cal State University...
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