REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Why  Question#7's answer is "false"? 

Provide your own answer?

 

REVENUE RECOGNITION QUIZ
1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most
companies
2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical
3. Choose all that apply: The industries most impacted by the standard are:
A. Pharmaceutical
B. Retail
C. Media and tele com
D. Consumer staples
E. Software
F. Aerospace and defense
4. True or false: The identification of customer contracts and related performance obligations are key to the
standard
5. True or false: Companies must restate the income statements for prior years to show application of the
new standard.
6. Choose all that apply: Transactions excluded from the standard include:
A. Lease contracts
B. Insurance contracts
C. Financial instruments
D. Guarantees (other than product warranties)
E. Certain nonmonetary exchanges
F. Contracts with parties other than customers (e.g., collaborations)
7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by
industry, for when and how to recognize revenues.
8. Choose all that apply: The following ratios may be impacted by adoption of the new standard:
A. Revenue growth
B. Net margin
C. Return on equity
D. Price to earnings multiples
E. Return on assets
F. Debt to equity
G. Current ratio
Transcribed Image Text:REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Avoiding and Correcting Credit Mistakes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education