1.2.14: How do maintenance service contracts affect revenue recognition? a)Recognize full amount at inception b) Straight-line over service period c) Based on actual service calls d) When customer pays

1.2.14: How do maintenance service contracts affect revenue recognition? a)Recognize full amount at inception b) Straight-line over service period c) Based on actual service calls d) When customer pays

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 19MC: At what point does revenue recognition occur? A. When the purchase order is received B. When the...

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Right Answer
Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product to be shipped B. Cash to be transferred C. Service to be booked D. Performance obligation be fulfill
Question- The contact asset
A contract between one or more parties creates: a. the date that cash is paid by the customer b. enforceable rights and obligations for the parties c. revenue for recognition d. the fixed amount of payments for the good or service
Which answer is accurate?
What is Revenue Recognition Companies should recognize revenue in the accounting period in which a contract is finalized Companies should recognize revenue in the accounting period in which services are performed. O Companies should ecognize revenue when the customer pays its bill
Which of the following best describes the current revenue recognition principle? Recognize revenue in the accounting period when the performance obligation is satisfied. Recognize revenue in the accounting period when cash is received. Recognize revenue when it is earned. Identify separate performance obligations in the contract.
Revenue generally should be recognized Select one: when realized. when the performance obligation is satisfied. at the time of cash collection. at the end of production.
What does deferred revenue generally represent on the balance sheet? Amounts that have been invoiced to a customer but not yet recognized as revenue Unapplied customer payments Projected future revenues that have not been invoiced Refunds due to customers
According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the customerb. When the service is performed or the goods have been delivered to the customerc. When the goods or services have been priced and offered for saled. At the stated date in the contract
Use the list of concepts given to match the description of the concept to the concept.
Which condition triggers special revenue accounting