16. The second step in the process for revenue recognition is to: a. Determine the transaction price. b. Identify the co

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16 The Second Step In The Process For Revenue Recognition Is To A Determine The Transaction Price B Identify The Co 1 (95.29 KiB) Viewed 9 times

16. The second step in the process for revenue recognition is to: a. Determine the transaction price. b. Identify the contract with customers. c. Allocate transaction price to the separate performance obligations. d. Identify the separate performance obligations in the contract. e. Performance obligation is satisfied 17. on January 1st 2016, ABC Co purchases equity investment of 150,000 ordinary shares in CBSD Co (out of 6,00,000 shares) for $10 per share with no purpose for quick capital gains. At the end of 2016, CBSD Co made $600,000 cash dividends and reported net loss of $1000,000. At the end of 2016, the fair value of CBSD shares was $13 per share. ABC Co reports the net amount of its investment in CBSD as of $.? a. $3,100,000 b. $1,100,000 c. $1,600,000 d. $1,500,000 e. All incorrect 18. Based on the revenue recognition standard, a contract a. must be in writing to be an enforceable contract. b. is an agreement that creates enforceable rights and obligations. c. is enforceable if each party can unilaterally terminate the contract. d. does not need to have commercial substance. e. All incorrect 19. The percentage-of-completion method a. recognizes revenue and gross profit each period based upon progress. b. is used primarily for short-term contracts. c. accumulates construction costs in the Billings on Construction in Prog account. d. recognizes revenue and gross profits only when contract is completed. e. All incorrect 20. Cooper Construction Company signed a contract starting Jan 2018 to cons $24,000,000 building that is expected to be completed in December 2020 estimated cost of $22,000,000. At the end of 2018, the costs incurred to da $13,200,000 and the estimated total costs to complete were $8,800,000. uses the percentage-of-completion method. For the year ended December 31, 2018, Cooper would recognize gross profit building of: a. $843,333 b. $920,000 c. $1,200,000 d. $2,000,000 e. All incorrect