1. Basic EPS is

a. a measurement of company growth

b. required on the financial statements under IFRS

c. used to determine share price, the lower the EPS the higher the share price

d. used by creditors to make lending decisions

2. Magic Mountain accounts for revenues using the contract-based approach. It operates a ski resort. Ski Season tickets are sold throughout the year, and entitle the holder to ski any day all season long. They are non-refundable. When should Magic Mountain recognize revenue for the season tickets?

a. at the time of sale

b. on the day the mountain first opens for skiing

c. throughout the ski season

d. at the end of the ski season

3. Carluccis decided to open a resort. In the first month of operation they collected cash and credit card receipts of $1,612.50. All rooms rent out at $75 a night and during the month they had 19 room rentals. In addition to the 19 rentals, they received non-refundable deposits of $37.50 each on another five nights of rentals. Two of those deposits related to the current month and the people failed to show up. The Carluccis did not refund the deposits for these two customers. The remaining three deposits are for future stays. The appropriate amount for them to recognize as revenue for their first month is

a. at the time of sale

b. on the day the mountain first opens for skiing

c. throughout the ski season

d. at the end of the ski season