5110 accounting - Study guides, Class notes & Summaries

five step revenue recognition process - ANS1. identify the contract with the customer 2. identify the performance obligations (single or multiple) 3. determine the transaction price 4. allocated the transaction price (all at once or a period in time) 5. recognize revenue when or as the entity satisfies the performance obligation performance obligation - ANSa promise by the seller to transfer goods or services to a customer; the seller recognizes revenue when it satisfies this contro...

capital markets - ANSprovide a mechanism to help our economy allocate resources efficiently; all investors and creditors net operating cash flow - ANSthe difference between cash receipts and cash disbursements from providing goods and services cash basis accounting - ANSproduces a measure called net operating cash flow net income - ANSthe difference between revenues and expenses; a better indicator of future operating cash flows than net operating cash flow accrual accounting - ...

Which of the following accounts is credited in the loss method of writing-down of inventory to its net realizable value? a. Allowance to Reduce Inventory to NRV b. Loss Due to Decline of Inventory to NRV c. Cost of Goods Sold d. Inventory - ANSd. Inventory When the cost-of-goods-sold method is used to record inventory at net realizable value a. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale....

Which of the following would not be included in a manufacturing company's balance sheet? Finished goods inventory Merchandise inventory Raw materials inventory Work in process inventory - ANSMerchandise inventory All of the following accounts are used under a perpetual inventory system except: Entry field with correct answer cost of goods sold. inventory. purchases. sales. - ANSpurchases. Which of the following statements is not consistent with a per...

BUS 5110 Managerial Accounting Written Assignment Unit 3

The acquisition cost adjusted for the amortization of discount or premium, if appropriate. - ANSAmortized cost. Securities not classified as held-to-maturity or trading securities. - ANSAvailable-for-sale Debt securities. The process of separating the host security from the embedded derivative in a hybrid security for accounting purposes. - ANSBifurcation A __ is a derivative that gives the holder the right, but not the obligation, to buy shares at a preset price. - ANSCall opt...

University of the people - BUS 5110 - Managerial Accounting Solutions

What does the "Time Value of Money" Indicate? - ANSA dollar received today is worth more than a dollar promised at some time in the future. What is the objective of using present value in an accounting measurement? - ANSTo capture, to the extent possible, the economic difference due to timing between sets of estimated future cash flows. What are some examples of items in accounting that need to be estimated for present value? - ANS-Long-term Liabilities -Investments -Business Co...

On December 1, 2018, Goetz Corporation leased office space for 10 years at a monthly rental of $80,000. On that date Goetz paid the landlord the following amounts: Rent deposit $ 80,000 First month's rent 80,000 Last month's rent 80,000 Installation of new walls and offices 640,000 Tota: $880,000 The entire amount of $880,000 was charged to rent expense in 2018. What amount should Goetz have charged to expense for the year ended December 31, 2018? a. $80,000 b. $85,333 c. $165,333 d....

Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services. - ANSTrue Revenue should be recognized over time for the construction of an annex to a building that the customer owns, even if the seller will not receive payment until the annex is completed. - ANSTrue Which of the following is one of the steps for recognizing revenue? -Identify the performance obligations...