ACC 311 WORKSHOP 4.2 CHAPTER QUESTIONS
Download 1) What are the two general criteria that must be satisfied before a company can recognize revenue? 2) Explain why, in most cases, a seller recognizes revenue when it delivers its product rather than when it produces the product: 4) Revenue recognition for most installment sales occurs at the point of delivery of the product or service. Under what circumstances would a seller delay revenue recognition for installment sales beyond the delivery date? 6) How does a company report deferred gross profit resulting form the use of the installment sales method in its balance sheet? 8) Describe a consignment sale. When does a consignor recognize revenue for a consignment sale? 10) Distinguish between the percentage-of-completion and completed contract methods of accounting for long-term contracts with respect to income recognition. Under what circumstances should a company use the completed contract method? 12) Periodic billings to the customer for a long-term construction contract are recorded as billing on construction contract. How is this account reported on the balance sheet? 15) Briefly describe how IFRS guidelines for recognizing revenue from multiple-deliverable arrangements differ from U.S. GAAP guidelines.