Intermediate Accounting ch 18, 15th edition

Which type of revenue or gain is generally recognized as time passes?

Revenue from interest, rents, and royalties

In a bill-and-hold arrangement, which of the following is not one of the criteria which must be met for the customer to have obtained control of the product?

The product must be physically located in the seller's warehouse

The new standard, Revenue from Contracts with Customers

adopts an asset-liability approach for revenue recognition

For an unprofitable contract, the entire expected loss is recognized in the current period when using

both the percentage-of-completion method and the completed contract method

One criteria that indicates the company should disregard revenue guidance to contracts is

each party can unilaterally terminate the contract without compensation

A contract should be treated as having multiple performance obligations if

each performance obligation is not highly dependent on other promises in the contract.

The seller of a good or service should recognize revenue when

each performance obligation is satisfied.

The Billings on Construction in Process account is reported:

in either the current asset or current liability section.

In a consignment sale, the consignee

only recognizes revenue associated with commissions

When using the percentage of completion method, the company

recognizes revenues and gross profit each period during the contract

Which method of measuring the fair value of a performance obligation is dependent on the standalone selling prices of other goods or services promised in the contract?

residual value.

The best measure of the fair value of a performance obligation is:

standalone selling price

An indication that the customer has not taken control of the good or service is

the customer has no significant risks or rewards of ownership.

An indication that the customer has taken control of the good or service is

the selling company has transferred legal title to the asset

In determining the transaction price, the company must consider

variable consideration, time value of money, non-cash consideration, and consideration payable